Company: DAAQ
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001213900-25-110841
Chunk: 84

Company: Digital Asset Acquisition Corp.
Filing Date: 2025-11-14
Form: 10-Q
Item: Item 8
Chunk 84
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 the 750,000 Class B ordinary shares were no longer subject to
forfeiture.

24

Class A Ordinary Shares Subject to Possible
Redemption

The Company’s Class A ordinary shares that
were sold as part of the Units in the Initial Public Offering contain a redemption feature which allows for the 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 ($10.17 per share as of September 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.

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 COD