Company: DJTWW
Filing Date: 2025-11-07
Form Type: 10-Q
Source: 0001140361-25-040977
Chunk: 188

Company: Trump Media & Technology Group Corp.
Filing Date: 2025-11-07
Form: 10-Q
Item: Part I, Item 8
Chunk 188
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 goods or services, we determined that the Earnout Shares were not within the scope of ASC 718.

    Next, we determined that the Earnout Shares represent a freestanding equity-linked financial instrument to be evaluated under ASC 480 and ASC 815-40. Based upon the analysis, we concluded that the
      Earnout Shares should not be classified as a liability under ASC 480.

    We next considered the equity classification conditions in ASC 815-40-25 and concluded that all of the conditions were met. Therefore, the Earnout Share arrangement was appropriately classified in
      equity.

    As the merger has been accounted for as a reverse recapitalization, the fair value of the Earnout Shares arrangement has been accounted for as an equity transaction as of the closing date of the merger.

      12

On April 26, 2024, the Earnout Shares had been earned and such shares were issued.

NOTE 4 - FAIR VALUE MEASUREMENT

    Fair value is defined as an exit price, representing the amount that would be received to sell an asset, or paid to transfer a liability, in an orderly transaction between market participants. We use a
      three-tier fair value hierarchy, which prioritizes the inputs used in the valuation methodologies in measuring fair value:

    Level 1. Quoted prices (unadjusted) in active markets for identical assets or liabilities.

    Level 2. Significant other inputs that are directly or indirectly observable in the marketplace.

    Level 3. Significant unobservable inputs which are supported by little or no market activity.

            As of September 30, 2025

            Quoted 
            prices
            in active
            markets for
            identical 
            assets
            (Level 1)

            Significant
            other
            observable
            inputs
            (Level 2)

            Significant unobservable
            inputs
            (Level 3)

            Assets

            Money market funds(1)

            $
          
           138,334.7 

            $
          
           - 

            $
          
           - 

            Repurchase agreements

           550,421.7 

           - 

           - 

            Exchange traded funds(2)

           584,865.1 

           - 

           - 

            Call option asset(2)

           2,640.0 

           - 

           - 

            Digital assets

           1,466,689.0 

           - 

           - 

            Total assets measured at fair value