Trump Media & Technology Group Corp. (DJT)

Digital World Acquisition Corp., a special purpose acquisition company (SPAC), reported a net loss of $15,642,548 for the year ended December 31, 2022, compared to a net loss of $1,951,280 for 2021 (restated). The increased loss was driven primarily by a rise in formation and operating costs to $8,716,023 (from $969,195) and a significant increase in legal investigations costs to $10,004,519 (from $789,183), alongside a flat franchise tax expense of $200,000. These expenses resulted in a loss from operations of $18,920,542 in 2022, versus $1,958,378 in 2021.

Partially offsetting this loss was interest earned on cash held in the Trust Account, which rose sharply to $4,257,469 in 2022 from just $7,098 in 2021, reflecting higher interest rates and/or trust balances. The company also recorded income tax expense of $979,475 in 2022, with no such expense in 2021. Basic and diluted net loss per share for both Class A and Class B common stock was $(0.42) in 2022, compared to $(0.12) in 2021.

As of December 31, 2022, the company had a total stockholders’ deficit of $31,974,608, compared to $10,571,968 at the end of 2021, driven by the net loss and a $5,760,092 remeasurement of Class A common stock to redemption value. Additional equity activity in 2021 included the issuance of Class B common stock to the sponsor, a three-for-one stock split, the surrender of 1,437,500 Class B shares by the sponsor, and the issuance of Class A shares to an investor and a representative, generating $11,334,840 in net proceeds. Overall, the financial statements reflect a pre-merger SPAC structure with rising costs tied to legal and regulatory scrutiny, alongside typical SPAC equity mechanics such as share redemption remeasurement and trust account interest income.