Company: DAAQ
Filing Date: 2025-08-19
Form Type: 10-Q
Source: 0001213900-25-078074
Chunk: 53

Company: Digital Asset Acquisition Corp.
Filing Date: 2025-08-19
Form: 10-Q
Item: Item 2
Chunk 53
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 Ordinary Shares is excluded from income per ordinary share as the redemption value approximates fair value.

At
June 30, 2025, the Company did not have any dilutive securities or other contracts that could, potentially, be exercised or converted
into ordinary shares and then share in the earnings of the Company included in redeemable Class A ordinary shares. As a result, diluted
income per Class A ordinary share is the same as basic income per Class A ordinary share for the periods presented.

Class
B ordinary shares includes 750,000 shares that were subject to forfeiture if the over-allotment option was not exercised in full or in
part by the Underwriters (see Note 6). On April 30, 2025, the Underwriters’ over-allotment option was exercised in full simultaneously
with the Initial Public Offering, and the 750,000 Class B ordinary shares were no longer subject to forfeiture. 

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 ($10.07 per share as of June 30, 2025) at