Business Context and Reporting Period
Digital Asset Acquisition Corp. (DAAQ) is a Cayman Islands exempted company and blank check entity formed for the purpose of effecting a business combination. The filing covers the quarterly period ended March 31, 2026. The Company consummated its Initial Public Offering (IPO) on April 30, 2025, raising $172.5 million. On January 13, 2026, the Company entered into a definitive agreement to merge with Old Glory Bank, a digital-first financial institution, with closing expected in Q2 2026.
Key Financial Metrics
| Metric | Q1 2026 | Q1 2025 |
|---|---|---|
| Net Income (Loss) | $1,038,689 | $(54,616) |
| Operating Expenses | $426,442 | $54,616 |
| Trust Account Balance | $178,582,550 | N/A (Pre-IPO) |
| Investment Income (Trust) | $1,457,920 | $0 |
| Cash & Equivalents (Operating) | $614,066 | $0 |
| Working Capital | $634,013 | N/A |
| Deferred Underwriting Fee | $6,900,000 | $6,900,000 |
Per Share Data: Basic and diluted net income per Class A and Class B ordinary share was $0.05 for Q1 2026.
Material Changes vs. Prior Period
- Revenue and Profitability: The Company transitioned from a net loss of $54,616 in Q1 2025 to a net income of $1,038,689 in Q1 2026. This shift is primarily driven by $1.46 million in investment earnings on marketable securities held in the Trust Account, which did not exist in the prior period.
- Operating Expenses: General and administrative expenses increased significantly to $426,442 from $54,616. This increase is attributed to post-IPO operational costs, including a $60,000 quarterly fee for administrative services from the Sponsor, accounting/audit fees, and due diligence costs for the Old Glory Bank transaction.
- Liquidity: Cash and cash equivalents in the operating account decreased from $1,060,921 at year-end 2025 to $614,066 at March 31, 2026, reflecting a net cash outflow of $446,855 from operating activities.
Outlook, Risks, and Management Commentary
- Business Combination: The Company is actively pursuing a merger with Old Glory Bank to form OGB Financial Company. The transaction is subject to shareholder and regulatory approval, with closing anticipated in Q2 2026.
- Going Concern: Management has concluded there is substantial doubt about the Company's ability to continue as a going concern for one year from the issuance date. This is due to the mandatory liquidation requirement if a business combination is not completed by January 30, 2027.
- Capital Resources: The Company holds $178.6 million in the Trust Account. It does not currently anticipate needing to raise additional funds for operations but may require financing if redemptions are significant or transaction costs exceed estimates.
- Risks: Key risks include the failure to complete the business combination by the deadline, resulting in liquidation, and the inability to secure necessary regulatory approvals for the Old Glory Bank merger.
Investor Verification Checklist
- Merger Status: Verify the progress of the Old Glory Bank merger and the likelihood of closing in Q2 2026.
- Redemption Rights: Confirm the redemption price per share ($10.35 as of March 31, 2026) and potential shareholder redemption rates prior to the merger vote.
- Deferred Fees: Note the $6.9 million deferred underwriting fee payable only upon successful completion of the business combination.
- Liquidity Runway: Assess the $614,066 operating cash balance against the timeline to the January 2027 liquidation deadline.
- Warrant Terms: Review the exercise price of $11.50 for Public Warrants and the 5-year expiration post-business combination.