Company: DJTWW
Filing Date: 2025-08-01
Form Type: 10-Q
Source: 0001140361-25-028418
Chunk: 44

Company: Trump Media & Technology Group Corp.
Filing Date: 2025-08-01
Form: 10-Q
Item: Part I, Item 1
Chunk 44
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 we buy the security at the strike price using the cash collateral, and the premium received reduces the effective cost basis, allowing us to acquire the
      securities at a discount compared to direct market purchases.  If a call option is exercised, we sell the security at the strike price using our existing holdings of the security, and the premium received reduces any loss or increases any gain we may
      incur.

    The writer of an option bears the market risk of an unfavorable change in the price of the security underlying the written option. The aggregate fair value of unexpired options written are included in accounts payable and accrued expenses in the condensed consolidated balance sheets. Cash held as collateral for written options is classified as restricted cash on the condensed consolidated balance sheet. Securities held as collateral for outstanding call options are presented within trading securities on the condensed consolidated balance sheet.  As of June 30, 2025, we did not have any outstanding put options restricting use of our cash balance.

    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 91% and 93% of our total revenue for the six months ended June 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.

      10

Recently issued accounting standards

    In December 2023, the FASB issued Accounting Standards Update, or ASU, 2023-08, Intangibles-Goodwill and Other-Crypto Assets (Subtopic 350-60): Accounting for
      and Disclosure of Crypto Assets (“ASU 2023-08”).  ASU 2023-08 requires digital assets to be measured at fair value as of the end of each reporting period in the balance sheet, with gains and losses