Company: DJTWW
Filing Date: 2025-11-07
Form Type: 10-Q
Source: 0001140361-25-040977
Chunk: 59

Company: Trump Media & Technology Group Corp.
Filing Date: 2025-11-07
Form: 10-Q
Item: Part I, Item 1
Chunk 59
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 as collateral for written options is classified as restricted cash on the condensed consolidated balance sheet. Securities held as collateral for outstanding written call options are presented within trading securities on the condensed consolidated balance sheet. As of September 30, 2025, we had $309,000.0 of restricted cash covering our unexpired put options. We did not have unexpired covered call options as of September 30, 2025.

    We record these derivative instruments on our condensed consolidated balance sheets at fair value and typically do not offset derivative assets and liabilities. Cash flows from derivative financial
      instruments and the related gains and losses are classified as cash flows from operating activities on the condensed consolidated statements of cash flows.  The changes in the fair values of these option contracts are immediately recognized as
      investment income in our condensed consolidated statements of operations.

    Digital Assets

    Our digital assets consist of our investments in bitcoin and Cronos. We retain ownership of and control over our digital assets and use third-party custodial services to secure them. The cost basis of
      our digital assets is calculated using the weighted-average method.

      9

Digital assets purchased are initially recorded at cost, including capitalized transaction costs or fees, and subsequently, remeasured at fair value based on the exchange quoted price throughout the
      reporting period, with changes in fair value recognized on the condensed consolidated statement of operations.

    Concentrations of risks

    Our financial instruments are exposed to concentrations of credit risk consisting primarily of cash and cash equivalents and short-term investments.  Although we deposit cash and cash equivalents with
      multiple banks, these deposits may exceed the amount of insurance provided on such deposits.  These deposits may generally be redeemed upon demand and in our opinion bear minimal risk.

    One advertising platform accounted for 85% and 94% of our total revenue for the nine months ended September 30, 2025 and 2024, respectively.

    In order to reduce the risk of downtime of the media offerings we provide, we have established data centers in various geographic regions.  We have internal procedures to restore products in the event
      of a service disruption or disaster at any of our data center facilities.  We serve our customers and users from data center facilities operated either by us or third parties.  Even with these procedures for disaster recovery in place, the
      availability of our products could be significantly interrupted during the implementation of restoration procedures.

    Recently issued accounting standards

    In December 2023, the FASB issued Accounting Standards Update