DAAQ

Business Context and Reporting Period

Digital Asset Acquisition Corp. (DAAQ) is a Cayman Islands exempted company and a "blank check" SPAC formed to effectuate a business combination. This Form 10-Q covers the quarterly period ended June 30, 2026. The Company completed its Initial Public Offering (IPO) on April 30, 2025, and has not yet commenced operations other than organizational activities and identifying a target. On January 13, 2026, the Company entered into a definitive agreement to merge with Old Glory Bank, a digital-first financial institution, to form OGB Financial Company.

Key Financial Metrics

Note: The Company generated no operating revenue. Net income is derived primarily from interest earnings on marketable securities held in the Trust Account ($2,972,423 for the six months ended June 30, 2026).

Material Changes vs. Prior Period

• Trust Account Growth: The Trust Account balance increased from $177,124,457 at December 31, 2025, to $180,097,053 at June 30, 2026, driven by interest earnings on U.S. government treasury obligations.
• Expense Increase: General and administrative expenses for the six months ended June 30, 2026 ($600,500) were significantly higher than the same period in 2025 ($172,828). This increase is attributed to post-IPO operational costs, including a monthly administrative fee paid to the Sponsor ($120,000 for the six months) and due diligence expenses related to the Old Glory Bank transaction.
• Cash Flow: Net cash used in operating activities was $605,570 for the six months ended June 30, 2026, compared to net cash provided by operating activities of $158,436 in the prior year period. The current period usage reflects the payment of operating expenses not offset by the non-cash interest income.

Outlook, Risks, and Contingencies

• Business Combination Status: The Company is actively pursuing the merger with Old Glory Bank. A shareholder vote is scheduled for August 14, 2026. The transaction is subject to shareholder approval, regulatory approvals, and Nasdaq listing approval.
• Non-Redemption Agreements: To support the transaction, the Company intends to enter into agreements with unaffiliated third-party holders (NRA Investors) to waive redemption rights. In exchange, these investors will receive 3.25 warrants for each non-redeemed share, exercisable at $12.00 per share. No such agreements were executed as of June 30, 2026.
• Liquidity and 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 filing date. This is due to the mandatory liquidation date of January 30, 2027, if a business combination is not consummated by then. No adjustments have been made to asset or liability values for potential liquidation.
• Redemption Rights: Public shareholders may redeem their shares for a pro rata portion of the Trust Account (approx. $10.44 per share as of June 30, 2026) in connection with the business combination vote.

Investor Verification Checklist

• Verify the outcome of the shareholder vote scheduled for August 14, 2026, regarding the Old Glory Bank merger.
• Monitor the volume of share redemptions, which will directly impact the cash available for the post-merger entity and the deferred underwriting fee payable.
• Confirm the execution of Non-Redemption Agreements with NRA Investors and the issuance of the associated warrants.
• Track regulatory approvals required for the merger, specifically bank regulatory approvals for Old Glory Bank.
• Review the final redemption price per share at the time of the vote, which may fluctuate based on interest earned in the Trust Account.