Business Context and Reporting Period
Digital Asset Acquisition Corp. (DAAQ) is a Cayman Islands-incorporated blank check company formed on December 9, 2024, for the purpose of effecting a business combination. This Form 10-Q covers the quarterly period ended June 30, 2025. The Company consummated its Initial Public Offering (IPO) on April 30, 2025, and has not yet commenced any operations other than organizational activities and the search for a target business.
Key Financial Metrics
| Metric | Value (as of/for period ended June 30, 2025) |
|---|---|
| Revenue | $0 (No operating revenue) |
| Net Income (Six Months) | $974,692 |
| Net Income (Three Months) | $1,029,308 |
| General & Administrative Expenses (Six Months) | $172,828 |
| Trust Account Balance | $173,664,886 |
| Working Capital Surplus | $1,193,936 |
| Total Liabilities | $7,053,229 (Includes $6.9M deferred underwriting fee) |
| Cash Flow from Operating Activities (Six Months) | $158,436 |
| Shares Outstanding | 17,250,000 Class A (Public); 5,750,000 Class B (Founder) |
Material Changes vs. Prior Period
- Initial Public Offering: The most significant change is the completion of the IPO on April 30, 2025. The Company sold 17,250,000 Units (including full exercise of the over-allotment option) at $10.00 per unit, generating gross proceeds of $172,500,000.
- Trust Account Funding: $172,500,000 was deposited into the Trust Account. As of June 30, 2025, the balance grew to $173,664,886 due to investment earnings of $1,147,520.
- Equity Structure: Class A ordinary shares subject to possible redemption increased from $0 at December 31, 2024, to $173,664,886 at June 30, 2025. The redemption value per share is $10.07.
- Liquidity Status: Prior to the IPO, the Company lacked sufficient liquidity to sustain operations for one year. Post-IPO, management determined that substantial doubt regarding going concern has been alleviated due to available working capital.
Outlook, Risks, and Management Commentary
- Business Combination Deadline: The Company must complete a business combination by October 30, 2026 (18 months from IPO closing), or January 30, 2027, if a definitive agreement is executed within the first 18 months. Failure to do so will result in mandatory liquidation.
- Deferred Underwriting Fee: A deferred fee of $6,900,000 ($0.40 per unit) is payable to underwriters solely upon the successful completion of a business combination.
- Redemption Rights: Public shareholders may redeem their shares for a pro rata portion of the Trust Account (approx. $10.07/share as of June 30) upon the completion of a business combination or in connection with certain amendments.
- Risks: The Company is an emerging growth company with no operating history. There is no assurance a business combination will be completed. If liquidation occurs, shareholders will receive funds from the Trust Account, subject to taxes and potential claims.
- Subsequent Event: On August 14, 2025, the Company received the outstanding balance due from the Sponsor ($1,221,540 net of expenses), settling the "Due from Sponsor" receivable.
Investor Verification Checklist
- Trust Account Yield: Verify the current interest rate environment and its impact on the Trust Account balance, which determines the redemption price for shareholders.
- Extension Provisions: Review the specific shareholder vote requirements and potential dilution if the Company seeks to extend the 18-month completion period.
- Deferred Fees: Confirm the $6.9 million deferred underwriting fee obligation and its impact on net proceeds available for a target acquisition.
- Related Party Transactions: Monitor the $20,000 monthly administrative fee paid to the Sponsor and any potential working capital loans.
- Target Selection: The Company has not identified a target; investors should monitor future filings for any definitive agreements or letters of intent.