Company: DAAQ
Filing Date: 2025-08-19
Form Type: 10-Q
Source: 0001213900-25-078074
Chunk: 34

Company: Digital Asset Acquisition Corp.
Filing Date: 2025-08-19
Form: 10-Q
Item: Item 8
Chunk 34
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 redemption of such Public Shares in connection with the Company’s liquidation, if there is a shareholder vote
or tender offer in connection with the Business Combination and in connection with certain amendments to the Company’s Amended
and Restated Memorandum and Articles of Association. In accordance with Accounting Standards Codification (“ASC”) Topic 480,
Distinguishing Liabilities from Equity (“ASC 480”), conditionally redeemable Class A ordinary shares (including Class A ordinary
shares that feature redemption rights that are either within the control of the holder or subject to redemption upon the occurrence of
uncertain events not solely within the Company’s control) are classified as temporary equity. Ordinary liquidation events, which
involve the redemption and liquidation of all of the entity’s equity instruments, are excluded from the provisions of ASC 480.
Although the Company did not specify a maximum redemption threshold, its charter provides that currently, the Company will only redeem
its Public Shares. However, the threshold in its Amended and Restated Memorandum and Articles of Association would not change the nature
of the underlying shares as redeemable and thus Public Shares are required to be disclosed outside of permanent equity. The Company recognizes
changes in redemption value immediately as they occur and adjusts the carrying value of redeemable ordinary shares to equal the redemption
value ($10.07 per share as of June 30, 2025) at the end of each reporting period. Such changes are reflected in additional paid-in capital,
or in the absence of additional paid-in capital, in accumulated deficit.

21

Recent
Accounting Standards

In
November 2023, the Financial Accounting Standards Board issued Accounting Standards Update (“ASU”) 2023-07, Segment Reporting
(Topic 280): Improvements to Reportable Segment Disclosures (“ASU 2023-07”). The amendments in this ASU require disclosures,
on an annual and interim basis, of significant segment expenses that are regularly provided to the chief operating decision maker (“CODM”),
as well as the aggregate amount of other segment items included in the reported measure of segment profit or loss.

The
ASU requires that a public entity disclose the title and position of the CODM and an explanation of how the CODM uses the reported measure(s)
of segment profit or loss in assessing segment performance and deciding how to allocate resources. Public entities will be required to
provide all annual disclosures currently required by ASC Topic 280, Segment Reporting (“ASC 280”) in interim periods,
and entities with a single report