Digital World Acquisition (US:DWAC)2025-11-07 14:40Financial Position - As of September 30, 2025, the company reported cash and cash equivalents totaling $3,106,527.3 thousand and debt of $950,769.1 thousand[152]. - As of September 30, 2025, the company had $3,106,527.3 in cash and cash equivalents, with $950,769.1 in debt excluding lease liabilities[205]. - As of September 30, 2025, the company held trading securities valued at $584,865.1, a significant increase from $0.0 at December 31, 2024[230]. - The company reported a maximum exposure to loss from unconsolidated VIEs limited to $0 as of September 30, 2025, and December 31, 2024[227]. - The company has not provided any guarantees related to Yorkville America, and no creditors of Yorkville America have recourse to the general credit of the company[225]. - The company does not hold any investments classified as available-for-sale as of September 30, 2025[231]. - The company has determined that it has a variable interest in four VIEs for which it is not the primary beneficiary[226]. - As of September 30, 2025, the company had $309,000.0 of cash restricted covering unexpired put options[233]. Revenue and Expenses - Revenue for the three months ended September 30, 2025 decreased by $38.0 thousand, or 4%, to $972.9 thousand compared to $1,010.9 thousand for the same period in 2024, primarily due to advertising economics and early-stage advertising initiatives[180]. - Revenue for the nine months ended September 30, 2025 increased by $59.1 thousand, or 2%, to $2,677.4 thousand compared to $2,618.3 thousand for the same period in 2024, driven by paid subscriptions to the Truth+ streaming service[192]. - Cost of revenue increased by $323.5 thousand, or 262%, to $446.8 thousand for the three months ended September 30, 2025, driven by content license and data center lease costs for the Truth+ platform[181]. - Cost of revenue for the nine months ended September 30, 2025 rose by $873.5 thousand, or 345%, to $1,126.4 thousand, mainly due to content license and data center lease costs[193]. - The change in fair value of digital assets resulted in an expense of $16,204.6 thousand for the nine months ended September 30, 2025, compared to $0.0 for the same period in 2024[197]. - Depreciation and amortization expense increased by $4,745.3, or 615%, to $5,516.8 for the nine months ended September 30, 2025, compared to $771.5 for the same period in 2024[198]. Operating Activities - Net cash provided by operating activities was $2,638.8 for the nine months ended September 30, 2025, an improvement of $55,278.8 from the $52,640.0 used in the same period in 2024[217]. - Net cash used in investing activities was $1,973,108.2 for the nine months ended September 30, 2025, compared to $312,773.7 in the prior year, mainly due to digital asset purchases[218]. - Net cash provided by financing activities was $2,302,144.8 for the nine months ended September 30, 2025, compared to $734,976.7 in 2024, driven by proceeds from convertible notes and PIPE financing[219]. Interest Income and Expense - Interest income surged by $8,731.4 thousand, or 188%, to $13,384.4 thousand for the three months ended September 30, 2025, due to higher cash and investment balances[187]. - Interest income rose by $31,401.6, or 461%, to $38,216.1 for the nine months ended September 30, 2025, due to higher cash and investment balances[199]. - Interest expense skyrocketed by $11,227.7 thousand, or 4,551%, to $11,474.4 thousand for the three months ended September 30, 2025, primarily from accreted interest on loans related to acquisitions[188]. - Interest expense increased by $12,859.8, or 442%, to $15,766.3 for the nine months ended September 30, 2025, attributed to accreted interest on loans from the WCT acquisition and convertible notes[200]. Strategic Initiatives - The company launched the Truth Social platform in the first quarter of 2022, with significant updates including direct messaging and a "Groups" feature introduced in 2022 and 2023 respectively[154][155]. - In September 2025, a major update to the Truth Social app introduced premium features for subscribers, enhancing user experience with editing and scheduling capabilities[156]. - The Truth+ streaming service was launched in phases, with full availability on various platforms by October 2024, and global streaming announced on July 7, 2025[163]. - The company announced a financial technology strategy on January 29, 2025, including the launch of separately managed accounts and a series of ETFs focused on cryptocurrencies[166]. - A private placement offering closed on May 30, 2025, raising approximately $2.44 billion through the sale of common stock and convertible senior secured notes[169]. - The company entered into a purchase agreement on August 25, 2025, transferring shares for 684,427,004 Cronos, the native cryptocurrency of the Cronos blockchain[170]. - A business combination was announced on August 26, 2025, to establish a digital asset treasury company focused on acquiring Cronos, with expected funding of $1 billion in Cronos and additional cash resources[172][173]. - The digital asset treasury strategy aims to enhance capital efficiency by focusing on yield-generating assets and establishing a validator node for the Cronos ecosystem[174]. - The company has implemented a bitcoin and digital asset treasury strategy to protect against financial discrimination and ensure financial freedom[167]. - TMTG is focusing on mergers and acquisitions to diversify into new sectors and aims to evolve into a larger holding company for various products and services[177]. Stock and Securities - The company authorized a share repurchase program of up to $400,000.0, having repurchased 355,208 shares at an average price of $18.02 per share[215]. - The Standby Equity Purchase Agreement allows the company to sell up to $2,500,000.0 of common stock, with no shares sold under this agreement during the nine months ended September 30, 2025[208]. - The company has consolidated Yorkville America in its financial statements, reflecting its balance sheets, results of operations, and cash flows due to its primary beneficiary status[224]. - The company’s digital assets, including bitcoin, are recorded at cost and subsequently remeasured at fair value, with changes recognized in the consolidated statements of operations[235]. - Bitcoin has traded between $66,000 and $126,000 in the past 12 months, indicating high volatility that could materially affect the company's earnings[238]. - The company’s trading securities primarily consist of equity exchange-traded funds that invest in digital assets[230].