Company: DJTWW
Filing Date: 2025-08-01
Form Type: 10-Q
Source: 0001140361-25-028418
Chunk: 46

Company: Trump Media & Technology Group Corp.
Filing Date: 2025-08-01
Form: 10-Q
Item: Part I, Item 1
Chunk 46
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U 2024-04 is effective for reporting periods beginning
      after December 15, 2025, and interim periods within those annual reporting periods.  Early adoption is permitted for entities that have adopted ASU 2020-06.  We do not expect the adoption of ASU 2024-04 to have a material impact on our unaudited
      condensed consolidated financial statements.

NOTE 3 – RECAPITALIZATION

    As discussed in Note 1, following the Closing of the Business Combination, TMTG was deemed the accounting acquirer and the transaction was accounted for as a reverse recapitalization.

      11

Transaction Proceeds

    Upon the Closing, we received gross proceeds of $233,017.5. The following table reconciles the elements of the Business Combination to the consolidated statements of cash flows and the consolidated statements of changes in stockholders’ equity (deficit) for the year ended December 31, 2024:

            Cash-trust and cash, net of redemptions

           233,017.5 

            Add: other assets

           - 

            Less: accrued expenses

           (3,292.9 
          
            )

            Less: notes payable

           (10,103.0 
          
            )

            Reverse recapitalization, net

           219,621.6 

    In connection with the Merger, TMTG incurred $1,640.2 in one-time direct and incremental transaction costs, consisting of legal and other professional fees, recorded in general and administration expenses. TMTG also issued $6,130.0 of bonus payments to our employees and a director of Private TMTG that were triggered by the Merger.  We recorded $5,530.0 and $600.0 in general and administration expense and sales and marketing expense, respectively, for the year ended December 31, 2024. TMTG deems these to be non-recurring expenses that are not direct and incremental to the Merger.

    The number of shares of common stock issued immediately following the consummation of the Business Combination were:

            Digital World common stock, outstanding prior to the Business Combination

           39,636,904 

            Shares issued to Digital World convertible noteholders, converted immediately prior to Business Combination

           1,709,145 

            Predecessor TMTG Shares

           87,500,000 

            Shares issued to former TMTG convertible noteh