Company: DAAQ
Filing Date: 2025-08-19
Form Type: 10-Q
Source: 0001213900-25-078074
Chunk: 15

Company: Digital Asset Acquisition Corp.
Filing Date: 2025-08-19
Form: 10-Q
Item: Item 8
Chunk 15
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General
and administrative expenses are reviewed and monitored by the CODM to manage and forecast cash to ensure enough capital is available
to complete a Business Combination or similar transaction within the Completion Period. The CODM also reviews general and administrative
expenses to manage, maintain and enforce all contractual agreements to ensure costs are aligned with all agreements and budget. General
and administrative expenses, as reported on the statement of operations, are the significant segment expenses provided to the CODM on
a regular basis.

All
other segment items included in net income or loss are reported on the statements of operations and described within their respective
disclosures.

NOTE
6. RELATED PARTY TRANSACTIONS

Founder
Shares

On
December 11, 2024, the Sponsor was issued 5,750,000 Class B ordinary shares (the “Founder Shares”) for an aggregate price
of $25,000 paid to cover certain expenses on behalf of the Company. The Founder Shares included an aggregate of up to 750,000 Class B
ordinary shares subject to forfeiture by the Sponsor to the extent that the Underwriters’ over-allotment option was not exercised
in full or in part, so that the Sponsor would own, on an as-converted basis, 25% of the Company’s issued and outstanding shares
after the Initial Public Offering (assuming the Sponsor does not purchase any Public Shares in the Initial Public Offering). On April
30, 2025, the Underwriters exercised their over-allotment option in full as part of the closing of the Initial Public Offering. As such,
the 750,000 Founder Shares are no longer subject to forfeiture.

In
January 2025, the Sponsor transferred 25,000 Founder Shares to three director nominees (for an aggregate of 75,000 Class B ordinary shares)
and 10,000 Founder Shares to four Company advisors (for an aggregate of 40,000 Class B ordinary shares) at the same price that the Sponsor
had purchased such shares or approximately $0.004 per share. The Class B ordinary shares will automatically convert into Class A ordinary
shares immediately prior to, concurrently with or immediately following the consummation of the initial Business Combination, or at any
time prior thereto at the option of the holder thereof, on a one-for-one basis.

The
transfer of the Founder Shares to the Company’s advisors and director nominees is in the scope of ASC 718. Under ASC 718, stock-based
compensation associated with equity-classified awards is measured