Digital World Acquisition (US:DWAC)2025-05-09 21:21Revenue and Financial Performance - The company reported revenue of $821.2 thousand for the three months ended March 31, 2025, representing an increase of $50.7 thousand or 7% compared to $770.5 thousand for the same period in 2024[135]. - Interest income increased by $7,966.4 thousand, or 27,661%, to $7,995.2 thousand for the three months ended March 31, 2025, attributed to higher cash balances and interest earned on investments[142]. - The loss from the change in the fair value of derivative liabilities decreased by $225,916.0 million, or 100%, to $0.0 for the three months ended March 31, 2025, compared to $225,916.0 million for the same period in 2024[144]. Expenses - Cost of revenue increased by $243.3 thousand, or 260%, to $336.7 thousand for the three months ended March 31, 2025, primarily due to content license and data center lease costs for the Truth+ platform[137]. - Research and development expenses decreased by $20,593.7 thousand, or 62%, to $12,564.9 thousand for the three months ended March 31, 2025, driven by lower stock-based compensation expenses[138]. - Sales and marketing expenses decreased by $573.0 thousand, or 54%, to $497.4 thousand for the three months ended March 31, 2025, primarily due to a prior bonus payment in 2024[139]. - General and administration expenses decreased by $39,617.1 thousand, or 61%, to $25,178.0 thousand for the three months ended March 31, 2025, mainly due to lower stock-based compensation awards[140]. - Depreciation and amortization expenses increased by $1,773.6 thousand, or 31,671%, to $1,779.2 thousand for the three months ended March 31, 2025, due to the acquisition of software and hardware for the CDN[141]. - Interest expense decreased by $2,630.8 million, or 93%, to $186.8 million for the three months ended March 31, 2025, compared to $2,817.6 million for the same period in 2024[143]. Cash Flow and Investments - The company ended March 31, 2025, with $758,981.6 thousand in cash, cash equivalents, and short-term investments, alongside $9,803.5 thousand in debt[120]. - Net cash used in operating activities for the three months ended March 31, 2025, was $9,737.8 million, an increase of $421.8 million compared to $9,316.0 million for the same period in 2024[153]. - Net cash used in investing activities for the three months ended March 31, 2025, was $6,310.1 million, compared to $0.0 million for the same period in 2024[154]. - Net cash used in financing activities for the three months ended March 31, 2025, was $8,060.8 million, a decrease of $288,533.3 million compared to $280,472.5 million provided in the same period in 2024[155]. - The company anticipates that current cash and cash equivalents will be sufficient to fund operations for at least the next 12 months[148]. Future Plans and Strategies - TMTG plans to invest up to $250 million in financial technology, including customized separately managed accounts and ETFs[132]. - The company is actively pursuing mergers and acquisitions to diversify into new sectors and expand its product offerings[133]. - The Standby Equity Purchase Agreement allows the company to sell up to $2,500,000.0 million of common stock, subject to certain conditions[149]. - As of March 31, 2025, the company has sold a cumulative total of 20,330,365 shares of common stock for prices between $14.31 and $36.98 per share, generating proceeds of $449,874.6 million[151]. - The company plans to grow its initial product, Truth Social, and increase additional product offerings, including the development of its streaming technology platform, Truth+[147].