Company: DJTWW
Filing Date: 2025-05-09
Form Type: 10-Q
Source: 0001140361-25-018209
Chunk: 20

Company: Trump Media & Technology Group Corp.
Filing Date: 2025-05-09
Form: 10-Q
Item: Part II, Item 8
Chunk 20
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 equity interests in the TMTG business, plus up to an additional 7,854,534
              shares of New Digital World common stock to be issued upon conversion of outstanding TMTG Convertible Notes immediately prior to the Closing.

Notwithstanding the legal form of the Business Combination pursuant to the Merger Agreement, the Business Combination was
              accounted for as a reverse recapitalization in accordance with U.S. GAAP because TMTG was the operating company and was determined to be the accounting acquirer under Financial Accounting Standards Board’s Accounting Standards Codification
              Topic 805, Business Combinations (“ASC 805”), while Digital World was a blank check company. The determination was primarily based on the evaluation of the following facts and circumstances:

                      •

                      The pre-combination equity holders of Private TMTG hold the majority of voting rights in TMTG;

                      •

                      The pre-combination equity holders of Private TMTG had the right to appoint the majority of the directors on TMTG’s Board;

                      •

                      Private TMTG senior management (executives) are the senior management (executives) of TMTG; and

                      •

                      Operations of Private TMTG comprise the ongoing operations of TMTG.

 Under the reverse
                recapitalization model, the Business Combination was treated as TMTG issuing equity for the net assets of Digital World, with no goodwill or intangible assets recorded.

While Digital World was the legal acquirer in the Business Combination, because
              Predecessor TMTG was deemed the accounting acquirer, the historical financial statements of Predecessor TMTG became the historical financial statements of the combined company upon the consummation of the Business Combination. As a result,
              the financial statements reflect (i) the historical operating results of Predecessor TMTG prior to the Business Combination; (ii) the combined results of Digital World and Predecessor TMTG following the closing of the Business Combination;
              (iii) the assets and liabilities of Predecessor TMTG at their historical cost; and (iv) the Company’s equity structure for all periods presented.  In connection with the consummation of the Business Combination, Digital World was renamed
              “Trump Media & Technology Group Corp.” and TMTG was renamed “TMTG Sub Inc.”

In accordance with the applicable guidance, the equity structure was retroactively restated in
              all comparative periods up to the Closing Date,