Company: DJTWW
Filing Date: 2025-11-07
Form Type: 10-Q
Source: 0001140361-25-040977
Chunk: 367

Company: Trump Media & Technology Group Corp.
Filing Date: 2025-11-07
Form: 10-Q
Item: Part II, Item 1A
Chunk 367
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 TMTG.  For example, numerous publications mischaracterized a January 28, 2025 issuance
      of equity compensation to TMTG’s non-employee directors as a “gift”—despite a clear statement in the relevant filings that it was “consideration for services,” i.e., not a gift.  Thus, whatever factual information TMTG includes in its disclosures and
      other public statements may be twisted and distorted when conveyed to the public and the market.  Such fake news could harm TMTG’s business, reputation, stock price, and/or ability to transact with its third-party providers. Negative publicity also
      could have an adverse effect on the size, engagement, and loyalty of TMTG’s user base and result in decreased revenue, which could adversely affect TMTG’s business and financial results.

Our prediction‑market initiatives involve emerging technology and business models that are still in development and are subject to significant regulatory,
      operational, and market uncertainties.

      62

On October 28, 2025, we announced an exclusive arrangement with Crypto.com | Derivatives North America (CDNA), a CFTC-registered exchange and clearinghouse, to integrate prediction markets into Truth
      Social. Through this integration, Truth Social will become the first social media platform to offer embedded prediction market capabilities via CDNA. Users will be able to trade contracts tied to major events, including political elections, interest
      rate and inflation changes, commodity prices, and sports outcomes, using our new product technology, Truth Predict, which has not yet entered beta testing.

Prediction markets are a relatively new and evolving business area, and our platform, Truth Predict, is currently in a beta testing phase. There is significant uncertainty regarding user adoption,
      engagement, and platform integration through distribution partners such as CDNA, as well as the scalability of our business model. In addition, the regulatory and legal frameworks applicable to prediction markets are complex, evolving, and may
      involve overlapping federal and state oversight, including classification as derivatives, event contracts, or gambling under different jurisdictions. Any failure to successfully develop, integrate, or scale our platform, or to comply with applicable
      legal and regulatory requirements, could materially and adversely affect our business, results of operations, and financial condition.

      63

          Item 2.
          
            Unregistered Sales of Equity Securities and Use of Proceeds.

(a) None not previously disclosed in a current report on Form 8-K.

(b) Not applicable.

(c)