Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2023 | |
Cover [Abstract] | |
Document Type | S-1 |
Amendment Flag | false |
Entity Registrant Name | Trump Media & Technology Group Corp. |
Entity Central Index Key | 0001849635 |
Entity Filer Category | Non-accelerated Filer |
Entity Small Business | true |
Entity Emerging Growth Company | true |
Entity Ex Transition Period | false |
BALANCE SHEETS (DWAC)
BALANCE SHEETS (DWAC) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Current assets | ||
Total Current Assets | $ 2,981,300 | $ 10,642,200 |
TOTAL ASSETS | 3,363,700 | 11,236,700 |
Current liabilities | ||
Total Current Liabilities | 65,872,100 | 19,447,300 |
TOTAL LIABILITIES | 70,125,500 | 19,809,300 |
Commitments and Contingencies | ||
Stockholders' Deficit | ||
Common Stock | ||
Accumulated deficit | (66,761,800) | (8,572,600) |
Total Stockholders' Deficit | (66,761,800) | (8,572,600) |
TOTAL LIABILITIES, REDEEMABLE COMMON STOCK AND STOCKHOLDERS' DEFICIT | 3,363,700 | 11,236,700 |
Digital World Acquisition Corp. [Member] | ||
Current assets | ||
Cash | 395,011 | 989 |
Prepaid assets | 0 | 168,350 |
Total Current Assets | 395,011 | 169,339 |
Cash Held in Trust Account | 310,623,083 | 300,330,651 |
TOTAL ASSETS | 311,018,094 | 300,499,990 |
Current liabilities | ||
Accrued expenses | 47,104,743 | 18,054,912 |
Convertible note payable Sponsor | 3,883,945 | 2,875,000 |
Convertible note payable | 500,000 | 0 |
Income taxes payable | 1,790,081 | 979,475 |
Franchise tax payable | 458,226 | 400,000 |
Convertible working capital loans | $ 2,398,700 | $ 625,700 |
Other Liability, Current, Related Party, Type [Extensible Enumeration] | Related Party [Member] | Related Party [Member] |
Advances - related party | $ 41,000 | $ 525,835 |
Total Current Liabilities | 56,176,695 | 23,460,922 |
Deferred underwriter fee payable | 10,062,500 | 10,062,500 |
TOTAL LIABILITIES | 66,239,195 | 33,523,422 |
Commitments and Contingencies | ||
Class A common stock subject to possible redemption, $0.0001 par value, 200,000,000 shares authorized; 28,715,597 and 28,744,342 shares outstanding, at redemption value ($10.75 and $10.40 per share), respectively | 308,645,005 | 298,951,176 |
Stockholders' Deficit | ||
Preferred stock, $0.0001 par value; 1,000,000 shares authorized; none issued and outstanding | ||
Additional paid-in capital | 0 | 0 |
Accumulated deficit | (63,866,949) | (31,975,454) |
Total Stockholders' Deficit | (63,866,106) | (31,974,608) |
TOTAL LIABILITIES, REDEEMABLE COMMON STOCK AND STOCKHOLDERS' DEFICIT | 311,018,094 | 300,499,990 |
Digital World Acquisition Corp. [Member] | Class A Common Stock Subject to Redemption [Member] | ||
Stockholders' Deficit | ||
Common Stock | 127 | 127 |
Digital World Acquisition Corp. [Member] | Class B Common Stock [Member] | ||
Stockholders' Deficit | ||
Common Stock | $ 716 | $ 719 |
BALANCE SHEETS (DWAC) (Parenthe
BALANCE SHEETS (DWAC) (Parenthetical) - $ / shares | Dec. 31, 2023 | Dec. 31, 2022 |
Common shares, par value (per share) | $ 0.000001 | $ 0.000001 |
Common shares, shares authorized | 120,000,000 | 120,000,000 |
Common shares, shares issued | 100,000,000 | 100,000,000 |
Common shares, shares outstanding | 100,000,000 | 100,000,000 |
Digital World Acquisition Corp. [Member] | ||
Preferred stock, par value (per share) | $ 0.0001 | $ 0.0001 |
Preferred stock, shares authorized | 1,000,000 | 1,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Digital World Acquisition Corp. [Member] | Class A Common Stock | ||
Temporary equity, shares issued | 28,715,597 | 28,750,000 |
Temporary equity, shares outstanding | 28,715,597 | 28,750,000 |
Temporary equity, redemption price per share | $ 10.75 | $ 10.4 |
Common shares, par value (per share) | $ 0.0001 | $ 0.0001 |
Common shares, shares authorized | 200,000,000 | 200,000,000 |
Digital World Acquisition Corp. [Member] | Class A Common Stock Not Subject to Redemption [Member] | ||
Common shares, shares issued | 1,277,234 | 1,277,234 |
Common shares, shares outstanding | 1,277,234 | 1,277,234 |
Digital World Acquisition Corp. [Member] | Class A Common Stock Subject to Redemption [Member] | ||
Temporary equity, par value (per share) | $ 0.0001 | $ 0.0001 |
Temporary equity, shares authorized | 200,000,000 | 200,000,000 |
Temporary equity, shares issued | 28,715,597 | 28,744,342 |
Temporary equity, shares outstanding | 28,715,597 | 28,744,342 |
Digital World Acquisition Corp. [Member] | Class B Common Stock | ||
Common shares, par value (per share) | $ 0.0001 | $ 0.0001 |
Common shares, shares authorized | 10,000,000 | 10,000,000 |
Common shares, shares issued | 7,158,025 | 7,187,500 |
Common shares, shares outstanding | 7,158,025 | 7,187,500 |
STATEMENTS OF OPERATIONS (DWAC)
STATEMENTS OF OPERATIONS (DWAC) - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | ||
Revenue | $ 4,131,100 | $ 1,470,500 | |
Cost of revenue | 164,900 | 54,500 | |
Gross profit | 3,966,200 | 1,416,000 | |
Research and development | 9,715,700 | 13,633,100 | |
Sales and marketing | 1,279,600 | 625,900 | |
General and administration | 8,878,700 | 10,345,600 | |
Depreciation and amortization | 59,600 | 58,700 | |
Loss from operation costs | (15,967,400) | (23,247,300) | |
Other income and expenses: | |||
Interest expense | (39,429,100) | (2,038,700) | |
Change in fair value of derivative liabilities | (2,791,600) | 75,809,900 | |
Loss before income taxes | (58,188,100) | 50,523,900 | |
Income tax expense | 1,100 | 200 | |
Net profit/(loss) | $ (58,189,200) | $ 50,523,700 | |
Weighted average shares outstanding, basic | 100,000,000 | 100,000,000 | |
Weighted average shares outstanding, diluted | 100,000,000 | 100,000,000 | |
Net income (loss) per common stock, basic | $ (0.58) | $ 0.51 | |
Net income (loss) per common stock, diluted | [1] | $ (0.58) | $ 0.51 |
Digital World Acquisition Corp. [Member] | |||
Formation and operating costs | $ 12,240,732 | $ 8,716,023 | |
Legal investigations expense | 20,752,819 | 10,004,519 | |
Franchise tax expense | 282,500 | 200,000 | |
Loss from operation costs | (33,276,051) | (18,920,542) | |
Other income and expenses: | |||
Insurance Recoveries | 1,081,238 | 0 | |
Interest earned on cash held in Trust Account | 13,852,774 | 4,257,469 | |
Total other income | 14,934,012 | 4,257,469 | |
Loss before income taxes | (18,342,039) | (14,663,073) | |
Income tax expense | 3,548,602 | 979,475 | |
Net profit/(loss) | $ (21,890,641) | $ (15,642,548) | |
Digital World Acquisition Corp. [Member] | Class A Common Stock | |||
Other income and expenses: | |||
Weighted average shares outstanding, basic | 30,018,099 | 30,026,614 | |
Weighted average shares outstanding, diluted | 30,018,099 | 30,026,614 | |
Net income (loss) per common stock, basic | $ (0.49) | $ (0.39) | |
Net income (loss) per common stock, diluted | $ (0.49) | $ (0.39) | |
Digital World Acquisition Corp. [Member] | Class B Common Stock | |||
Other income and expenses: | |||
Weighted average shares outstanding, basic | 7,187,258 | 7,187,500 | |
Weighted average shares outstanding, diluted | 7,187,258 | 7,187,500 | |
Net income (loss) per common stock, basic | $ (0.99) | $ (0.53) | |
Net income (loss) per common stock, diluted | $ (0.99) | $ (0.53) | |
[1]Loss per share attributable to common stockholders for diluted calculation is based on the Basic weighted shares as these are not dilutive. The Basic and diluted loss per share attributable to common stockholders are therefore the same. |
STATEMENTS OF CHANGES IN STOCKH
STATEMENTS OF CHANGES IN STOCKHOLDERS' DEFICIT (DWAC) - USD ($) | Total | Common Stock [Member] | Accumulated Deficit | Digital World Acquisition Corp. [Member] | Digital World Acquisition Corp. [Member] Additional Paid-in Capital [Member] | Digital World Acquisition Corp. [Member] Accumulated Deficit | Digital World Acquisition Corp. [Member] Class A Common Stock Not Subject to Redemption [Member] Common Stock [Member] | Digital World Acquisition Corp. [Member] Class B Common Stock [Member] Common Stock [Member] |
Beginning balance at Dec. 31, 2021 | $ (10,571,968) | $ 0 | $ (10,572,814) | $ 127 | $ 719 | |||
Balance at the beginning (in shares) at Dec. 31, 2021 | 1,277,234 | 7,187,500 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net loss | $ 50,523,700 | (15,642,548) | (15,642,548) | |||||
Remeasurement of Class A common stock to redemption value | (5,760,092) | (5,760,092) | ||||||
Ending balance at Dec. 31, 2022 | (8,572,600) | $ 0 | $ (8,572,600) | (31,974,608) | 0 | (31,975,454) | $ 127 | $ 719 |
Balance at the end (in shares) at Dec. 31, 2022 | 1,277,234 | 7,187,500 | ||||||
Beginning balance at Mar. 31, 2022 | (107,284,100) | 0 | (107,284,100) | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net loss | 77,147,300 | 0 | 77,147,300 | |||||
Ending balance at Jun. 30, 2022 | (30,136,800) | 0 | (30,136,800) | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net loss | 12,545,400 | 0 | 12,545,400 | |||||
Ending balance at Sep. 30, 2022 | (17,591,400) | 0 | (17,591,400) | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net loss | 9,018,800 | 0 | 9,018,800 | |||||
Ending balance at Dec. 31, 2022 | (8,572,600) | 0 | (8,572,600) | (31,974,608) | 0 | (31,975,454) | $ 127 | $ 719 |
Balance at the end (in shares) at Dec. 31, 2022 | 1,277,234 | 7,187,500 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net loss | (210,200) | 0 | (210,200) | |||||
Ending balance at Mar. 31, 2023 | (8,782,800) | 0 | (8,782,800) | |||||
Beginning balance at Dec. 31, 2022 | (8,572,600) | 0 | (8,572,600) | (31,974,608) | 0 | (31,975,454) | $ 127 | $ 719 |
Balance at the beginning (in shares) at Dec. 31, 2022 | 1,277,234 | 7,187,500 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net loss | (58,189,200) | (21,890,641) | (21,890,641) | |||||
Surrender of shares | 0 | 3 | $ (3) | |||||
Surrender of shares (in shares) | (29,475) | |||||||
Remeasurement of Class A common stock to redemption value | (10,000,857) | (10,000,857) | ||||||
Ending balance at Dec. 31, 2023 | (66,761,800) | 0 | (66,761,800) | (63,866,106) | 0 | (63,866,949) | $ 127 | $ 716 |
Balance at the end (in shares) at Dec. 31, 2023 | 1,277,234 | 7,158,025 | ||||||
Beginning balance at Mar. 31, 2023 | (8,782,800) | 0 | (8,782,800) | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net loss | (22,768,100) | 0 | (22,768,100) | |||||
Ending balance at Jun. 30, 2023 | (31,550,900) | 0 | (31,550,900) | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net loss | (26,033,100) | 0 | (26,033,100) | |||||
Ending balance at Sep. 30, 2023 | (57,584,000) | 0 | (57,584,000) | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net loss | (9,177,800) | 0 | (9,177,800) | |||||
Ending balance at Dec. 31, 2023 | $ (66,761,800) | $ 0 | $ (66,761,800) | $ (63,866,106) | $ 0 | $ (63,866,949) | $ 127 | $ 716 |
Balance at the end (in shares) at Dec. 31, 2023 | 1,277,234 | 7,158,025 |
STATEMENTS OF CASH FLOWS (DWAC)
STATEMENTS OF CASH FLOWS (DWAC) - USD ($) | 12 Months Ended | 35 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2023 | |
Changes in operating assets and liabilities: | |||
Net cash used in operating activities | $ (9,733,500) | $ (24,201,500) | $ 37,732,000 |
Cash flows from investing activities: | |||
Net cash provided by (used in) investing activities | (2,200) | (84,500) | |
Cash flows from financing activities: | |||
Net cash provided by financing activities | 2,500,000 | 15,360,000 | |
Cash, beginning of period | 9,808,400 | 18,734,400 | |
Cash, end of period | 2,572,700 | 9,808,400 | 2,572,700 |
Supplemental disclosures | |||
Income taxes paid | 0 | 0 | |
Interest paid | 0 | 0 | |
Digital World Acquisition Corp. [Member] | |||
Cash flows from operating activities: | |||
Net loss | (21,890,641) | (15,642,548) | |
Adjustments to reconcile net income to net cash used in operating activities: | |||
Interest earned on cash and marketable securities held in Trust Account | (13,831,960) | (4,257,469) | |
Changes in operating assets and liabilities: | |||
Accrued expenses | 29,549,831 | 17,026,986 | |
Income taxes payable | 810,606 | 979,475 | |
Prepaid insurance | 168,350 | 237,673 | |
Franchise tax payable | 58,226 | 200,000 | |
Net cash used in operating activities | (5,135,588) | (1,455,883) | |
Cash flows from investing activities: | |||
Investment of cash in Trust Accounts | 0 | (2,875,000) | |
Cash withdrawn from Trust Account for taxes | 3,232,500 | ||
Cash withdrawn from Trust Account for redemptions | 307,028 | 58,916 | |
Net cash provided by (used in) investing activities | 3,539,528 | (2,816,084) | |
Cash flows from financing activities: | |||
Proceeds from convertible Sponsor note | 1,008,945 | 2,875,000 | |
Proceeds from working capital loan | 1,773,000 | 503,441 | |
(Repayment of) Proceeds from advances - related party | (484,835) | 625,700 | |
Redemption of shares | (307,028) | (58,916) | |
Net cash provided by financing activities | 1,990,082 | 3,945,225 | |
Net change in cash | 394,022 | (326,742) | |
Cash, beginning of period | 989 | 327,731 | |
Cash, end of period | 395,011 | 989 | $ 395,011 |
Supplemental disclosures | |||
Income taxes paid | 2,737,997 | 0 | |
Interest paid | 0 | 0 | |
Non-cash investing and financing activities: | |||
Class B common stock redemption | 3 | 0 | |
Remeasurement of Class A common stock | 10,000,857 | 5,760,092 | |
Issuance of Convertible note for legal services | $ 500,000 | $ 0 |
Consolidated Balance Sheet
Consolidated Balance Sheet - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Current assets: | ||
Cash | $ 2,572,700 | $ 9,808,400 |
Prepaid expenses and other current assets | 327,600 | 326,000 |
Accounts receivable | 81,000 | 507,800 |
Total Current Assets | 2,981,300 | 10,642,200 |
Property, plant and equipment | 29,200 | 87,400 |
Right-of-Use Assets | 353,200 | 507,100 |
TOTAL ASSETS | 3,363,700 | 11,236,700 |
Current liabilities: | ||
Accounts payable and accrued expenses | 1,600,700 | 268,700 |
Convertible promissory notes | 42,415,500 | 4,123,900 |
Derivative liability | 17,282,500 | 14,905,300 |
Unearned Revenue | 4,413,100 | 0 |
Current portion of Operating lease liability | 160,300 | 149,400 |
Total Current Liabilities | 65,872,100 | 19,447,300 |
Long-Term Operating lease liability | 201,600 | 362,000 |
Convertible promissory notes | 2,931,500 | 0 |
Derivative Liability | 1,120,300 | 0 |
TOTAL LIABILITIES | 70,125,500 | 19,809,300 |
Commitments and contingencies (Note 11) | ||
Stockholders' equity: | ||
Common Stock $ 0.000001 par value - 120,000,000 shares authorized, 100,000,000 shares issued and outstanding | ||
Accumulated Deficit | (66,761,800) | (8,572,600) |
Total Stockholders' Deficit | (66,761,800) | (8,572,600) |
TOTAL LIABILITIES, REDEEMABLE COMMON STOCK AND STOCKHOLDERS' DEFICIT | $ 3,363,700 | $ 11,236,700 |
Consolidated Balance Sheet (Par
Consolidated Balance Sheet (Parenthetical) - $ / shares | Dec. 31, 2023 | Feb. 16, 2023 | Dec. 31, 2022 | Jan. 31, 2022 | Oct. 31, 2021 | Feb. 08, 2021 |
Stockholders' equity: | ||||||
Common stock, par value (in dollars per share) | $ 0.000001 | $ 0.000001 | $ 0.000001 | $ 0.000001 | $ 0.000001 | |
Common stock, shares authorized (in shares) | 120,000,000 | 1,000,000,000 | 120,000,000 | 120,000,000 | 110,000,000 | |
Common shares, shares issued (in shares) | 100,000,000 | 100,000,000 | 100,000,000 | 100,000,000 | 10,000 | |
Common stock, shares outstanding (in shares) | 100,000,000 | 100,000,000 | 100,000,000 | 100,000,000 | 10,000 |
Consolidated Statement of Opera
Consolidated Statement of Operations - USD ($) | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2023 | Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | ||
Income Statement [Abstract] | ||||||||||
Revenue | $ 4,131,100 | $ 1,470,500 | ||||||||
Cost of revenue | 164,900 | 54,500 | ||||||||
Gross profit | 3,966,200 | 1,416,000 | ||||||||
Research and development | 9,715,700 | 13,633,100 | ||||||||
Sales and marketing | 1,279,600 | 625,900 | ||||||||
General and administration | 8,878,700 | 10,345,600 | ||||||||
Depreciation and amortization | 59,600 | 58,700 | ||||||||
Loss from operation costs | (15,967,400) | (23,247,300) | ||||||||
Interest expense | (39,429,100) | (2,038,700) | ||||||||
Change in fair value of derivative liabilities | (2,791,600) | 75,809,900 | ||||||||
Loss before income taxes | (58,188,100) | 50,523,900 | ||||||||
Income tax expense/(benefit) | 1,100 | 200 | ||||||||
Net profit/(loss) | $ (9,177,800) | $ (26,033,100) | $ (22,768,100) | $ (210,200) | $ 9,018,800 | $ 12,545,400 | $ 77,147,300 | $ (58,189,200) | $ 50,523,700 | |
Profit/(loss) per Share attributable to common stockholders: | ||||||||||
Basic (in dollars per share) | $ (0.58) | $ 0.51 | ||||||||
Diluted (in dollars per share) | [1] | $ (0.58) | $ 0.51 | |||||||
Weighted Average Shares used to compute net profit/ loss per share attributable to common stockholders: | ||||||||||
Basic (in shares) | 100,000,000 | 100,000,000 | ||||||||
Diluted (in shares) | 100,000,000 | 100,000,000 | ||||||||
[1]Loss per share attributable to common stockholders for diluted calculation is based on the Basic weighted shares as these are not dilutive. The Basic and diluted loss per share attributable to common stockholders are therefore the same. |
Consolidated Statement of Stock
Consolidated Statement of Stockholders' Deficit - USD ($) | Paid-in Capital [Member] | Accumulated Deficit [Member] | Total |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Net Profit/(Loss) | $ 50,523,700 | ||
Ending balance at Dec. 31, 2022 | $ 0 | $ (8,572,600) | (8,572,600) |
Beginning balance at Mar. 31, 2022 | 0 | (107,284,100) | (107,284,100) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Net Profit/(Loss) | 0 | 77,147,300 | 77,147,300 |
Ending balance at Jun. 30, 2022 | 0 | (30,136,800) | (30,136,800) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Net Profit/(Loss) | 0 | 12,545,400 | 12,545,400 |
Ending balance at Sep. 30, 2022 | 0 | (17,591,400) | (17,591,400) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Net Profit/(Loss) | 0 | 9,018,800 | 9,018,800 |
Ending balance at Dec. 31, 2022 | 0 | (8,572,600) | (8,572,600) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Net Profit/(Loss) | 0 | (210,200) | (210,200) |
Ending balance at Mar. 31, 2023 | 0 | (8,782,800) | (8,782,800) |
Beginning balance at Dec. 31, 2022 | 0 | (8,572,600) | (8,572,600) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Net Profit/(Loss) | (58,189,200) | ||
Ending balance at Dec. 31, 2023 | 0 | (66,761,800) | (66,761,800) |
Beginning balance at Mar. 31, 2023 | 0 | (8,782,800) | (8,782,800) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Net Profit/(Loss) | 0 | (22,768,100) | (22,768,100) |
Ending balance at Jun. 30, 2023 | 0 | (31,550,900) | (31,550,900) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Net Profit/(Loss) | 0 | (26,033,100) | (26,033,100) |
Ending balance at Sep. 30, 2023 | 0 | (57,584,000) | (57,584,000) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Net Profit/(Loss) | 0 | (9,177,800) | (9,177,800) |
Ending balance at Dec. 31, 2023 | $ 0 | $ (66,761,800) | $ (66,761,800) |
Consolidated Statement of Sto_2
Consolidated Statement of Stockholders' Deficit (Parenthetical) $ in Thousands | 12 Months Ended |
Dec. 31, 2023 USD ($) $ / shares shares | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |
Common stock, shares outstanding (in shares) | 100,000,000 |
Common stock, par value (in dollars per share) | $ / shares | $ 0.000001 |
Paid-in Capital [Member] | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |
Common stock, shares outstanding (in shares) | 10,000 |
Common stock, par value (in dollars per share) | $ / shares | $ 0.000001 |
Stock issued upon conversion of common stock (in shares) | 100,000,000 |
Value of paid in capital upon conversion of common stock | $ | $ 100 |
Consolidated Statement of Cash
Consolidated Statement of Cash Flows - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Cash flows from operating activities | ||
Net income/(loss) | $ (58,189,200) | $ 50,523,700 |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Non-cash interest expense on debt | 39,429,100 | 2,038,700 |
Change in fair value of derivative liability | 2,791,600 | (75,809,900) |
Depreciation | 60,400 | 59,100 |
Non-cash charge for operating lease | 4,300 | 4,300 |
Prepaid expenses and other current assets | (1,600) | 105,200 |
Related party receivable/payable | 0 | (72,100) |
Accounts Receivable | 426,900 | (507,800) |
Unearned Revenue | 4,413,100 | 0 |
Accounts payable | 1,332,000 | (542,700) |
Net cash used in operating activities | (9,733,500) | (24,201,500) |
Cash flows used in investing activities | ||
Purchases of property, plant and equipment | (2,200) | (84,500) |
Net cash provided by (used in) investing activities | (2,200) | (84,500) |
Cash flows provided by financing activities | ||
Proceeds from convertible promissory notes | 3,500,000 | 15,360,000 |
Settlement of convertible promissory notes | (1,000,000) | 0 |
Net cash provided by financing activities | 2,500,000 | 15,360,000 |
Net change in cash | (7,235,700) | (8,926,000) |
Cash, beginning of period | 9,808,400 | 18,734,400 |
Cash, end of period | 2,572,700 | 9,808,400 |
Supplemental disclosure of cash flow information | ||
Cash paid for interest | 0 | 0 |
Cash paid for taxes | 0 | 0 |
Non cash investing and financing activities | ||
Costs associated with convertible notes | $ 0 | $ 0 |
DESCRIPTION OF ORGANIZATION AND
DESCRIPTION OF ORGANIZATION AND BUSINESS OPERATIONS AND GOING CONCERN (DWAC) | 12 Months Ended |
Dec. 31, 2023 | |
Digital World Acquisition Corp. [Member] | |
Legal Entity [Line Items] | |
DESCRIPTION OF ORGANIZATION AND BUSINESS OPERATIONS AND GOING CONCERN | NOTE 1. DESCRIPTION OF ORGANIZATION AND BUSINESS OPERATIONS AND GOING CONCERN Digital World Acquisition Corp. (the “Company”) is a blank check company incorporated in the State of Delaware on December 11, 2020. The Company was formed for the purpose of effecting a merger, capital stock exchange, asset acquisition, stock purchase, reorganization or other similar business combination with one or more businesses or entities (“Business Combination”). Although the Company is not limited to a particular industry or geographic region for purposes of consummating a Business Combination, the Company intends to focus on middle-market emerging growth technology-focused companies in the Americas, in the SaaS and Technology or Fintech and Financial Services sector. As of December 31, 2023, the Company had not yet commenced operations. All activity through December 31, 2023 relates to the Company’s formation, the initial public offering (“Initial Public Offering”), which is described below and the search for targets for its initial Business Combination. The Company will not generate any operating revenues until after the completion of its initial Business Combination, at the earliest. The Company generates non-operating income in the form of interest income on cash and cash equivalents from the proceeds derived from the Initial Public Offering and the concurrent Private Placement (as defined below). The Company has selected December 31 as its fiscal year end. The Company is an early stage and emerging growth company and, as such, the Company is subject to all of the risks associated with early stage and emerging growth companies. The registration statement for the Company’s Initial Public Offering was declared effective on September 2, 2021 (the “Registration Statement”). On September 8, 2021, the Company consummated the Initial Public Offering of 28,750,000 units (the “Units” and, with respect to the shares of Class A common stock included in the Units sold, the “Public Shares”), at $10.00 per Unit, generating gross proceeds of $287,500,000, and incurred offering costs of $23,566,497, consisting of deferred underwriting commissions of $10,062,500 (see Note 4), fair value of the representative shares (as defined in Note 8) of $1,437,500, fair value of shares issued to the anchor investors of the Company’s Initial Public Offering of $7,677,450, fair value of shares transferred to officers and directors of $221,018, and other offering costs of $4,168,029. The Units sold in the Initial Public Offering included Units that were subject to a 45-day option granted to the underwriter to purchase up to an additional 3,750,000 Units at the Initial Public Offering price to cover over-allotment, which was exercised in full in connection with the consummation of the Initial Public Offering. Simultaneously with the closing of the Initial Public Offering, the Company consummated the sale of 1,133,484 units (the “Placement Units”) at a price of $10.00 per Placement Unit in a private placement (“Private Placement”) to the Company’s sponsor, ARC Global Investments II LLC (the “Sponsor”), generating gross proceeds of $11,334,840, which is described in Note 5. Following the closing of the Initial Public Offering on September 8, 2021, an amount of $293,250,000 ($10.20 per Unit) from the net proceeds of the sale of the Units in the Initial Public Offering and the sale of the Placement Units was placed in a trust account (the “Trust Account”) located in the United States and invested only in U.S. government securities, within the meaning set forth in Section 2(a)(16) of the Investment Company Act of 1940, as amended (the “Investment Company Act”), with a maturity of 185 days or less or in money market funds meeting the conditions of paragraph (d) of Rule 2a-7 of the Investment Company Act, as determined by the Company, until the earliest of: (i) the completion of a Business Combination, (ii) the redemption of any Public Shares properly submitted in connection with a stockholder vote to amend the Company’s Amended and Restated Certificate of Incorporation (“Amended and Restated Certificate of Incorporation”) (A) to modify the substance or timing of the Company’s obligation to allow redemption in connection with its initial Business Combination or certain amendments to its Amended and Restated Certificate of Incorporation prior thereto or to redeem 100% of the Public Shares if the Company does not complete its initial Business Combination within the Combination Period (as defined below) or (B) with respect to any other provision relating to stockholders’ rights or pre-Business Combination activity and (iii) the redemption of 100% of the Public Shares if the Company is unable to complete an initial Business Combination within the Combination Period (subject to the requirements of applicable law). The Company will provide its stockholders with the opportunity to redeem all or a portion of their Public Shares upon the completion of a Business Combination either (i) in connection with a stockholder meeting called to approve the Business Combination or (ii) by means of a tender offer. In connection with a proposed Business Combination, the Company may seek stockholder approval of a Business Combination at a meeting called for such purpose at which stockholders may seek to redeem their shares, regardless of whether they vote for or against a Business Combination. The Company will proceed with a Business Combination only if the Company has net tangible assets of at least $5,000,001 upon such consummation of a Business Combination and, if the Company seeks stockholder approval, a majority of the outstanding shares voted are voted in favor of the Business Combination, unless otherwise required by applicable law, regulation or stock exchange rules. If the Company seeks stockholder approval of a Business Combination and it does not conduct redemptions pursuant to the tender offer rules, the Company’s Amended and Restated Certificate of Incorporation provides that a public stockholder, together with any affiliate of such stockholder or any other person with whom such stockholder is acting in concert or as a “group” (as defined under Section 13 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)), will be restricted from seeking redemption rights with respect to 15% or more of the Public Shares without the Company’s prior written consent. The stockholders will be entitled to redeem their Public Shares for a pro rata portion of the amount then in the Trust Account (initially $10.20 per share, plus any pro rata interest earned on the funds held in the Trust Account and not previously released to the Company to pay its tax obligations). The per-share amount to be distributed to stockholders who redeem their Public Shares will not be reduced by the deferred underwriting commissions the Company will pay to the underwriter. There will be no redemption rights upon the completion of a Business Combination with respect to the Company’s warrants. All of the Public Shares contain a redemption feature which allows for the redemption of such Public Shares in connection with the Company’s liquidation, if there is a stockholder vote or tender offer in connection with the Company’s Business Combination and in connection with certain amendments to the Company’s Amended and Restated Certificate of Incorporation. In accordance with the rules of the U.S. Securities and Exchange Commission (the “SEC”) and its guidance on redeemable equity instruments, which has been codified in ASC 480-10-S99, redemption provisions not solely within the control of a company require common stock subject to redemption to be classified outside of permanent equity. Because of the redemption feature noted above, the shares of Class A common stock are subject to ASC 480-10-S99. If it is probable that the equity instrument will become redeemable, the Company has the option to either (i) accrete changes in the redemption value over the period from the date of issuance (or from the date that it becomes probable that the instrument will become redeemable, if later) to the earliest redemption date of the instrument or (ii) recognize changes in the redemption value immediately as they occur and adjust the carrying amount of the instrument to equal the redemption value at the end of each reporting period. The Company has elected to recognize the changes immediately. The accretion or remeasurement is treated as a deemed dividend (i.e., a reduction to retained earnings, or in absence of retained earnings, additional paid-in capital). While redemptions cannot cause the Company’s net tangible assets to fall below $5,000,001, the Public Shares are redeemable and will be classified as such on the balance sheet until such date that a redemption event takes place. If a stockholder vote is not required and the Company does not decide to hold a stockholder vote for business or other legal reasons, the Company will, pursuant to its Amended and Restated Certificate of Incorporation, offer such redemption pursuant to the tender offer rules of the SEC, and file tender offer documents containing substantially the same information as would be included in a proxy statement with the SEC prior to completing a Business Combination. The Sponsor and the Company’s officers and directors have agreed (a) to vote any shares of Class B common stock of the Company (the “Founder Shares”), the shares of Class A common stock included within the Placement Units (the “Private Shares”) and any Public Shares purchased during or after the Initial Public Offering in favor of a Business Combination, (b) waive their redemption rights with respect to any Founder Shares, Private Shares held by them and any Public Shares purchased during or after the Initial Public Offering in connection with the completion of the Business Combination, (c) not to waive their redemption rights with respect to any Founder Shares, Private Shares held by them and any Public Shares purchased during or after the Initial Public Offering in connection with a stockholder vote to approve an amendment to the Amended and Restated Certificate of Incorporation (A) to modify the substance or timing of the Company’s obligation to allow redemption in connection with its initial Business Combination or certain amendments to its Amended and Restated Certificate of Incorporation prior thereto or to redeem 100% of the Public Shares if the Company does not complete an initial Business Combination within the Combination Period or (B) with respect to any other provision relating to stockholders’ rights or pre-initial Business Combination activity and (iii) waive their rights to liquidating distributions from the Trust Account with respect to any Founder Shares and Private Shares held by them if the Company fails to complete its initial Business Combination within the Combination Period, although they will be entitled to liquidating distributions from the Trust Account with respect to any Public Shares they hold if the Company fails to complete its initial Business Combination within the Combination Period. The Company’s anchor investors have agreed to (1) vote any Founder Shares held by them in favor of the initial Business Combination, (2) waive their redemption rights with respect to any Founder Shares held by them in connection with the completion of the Company’s initial Business Combination, and (3) waive their rights to liquidating distributions from the Trust Account with respect to any Founder Shares held by them if the Company fails to complete its initial Business Combination within the Combination Period. On November 22, 2022, the Company held a special meeting of stockholders. At the meeting, the Company’s stockholders approved an amendment to the Company’s Amended and Restated Certificate of Incorporation with the Secretary of State of the State of Delaware extending, upon the request of the Sponsor and approval by the Board, the period of time for the Company to consummate an initial business combination up to four times, each by an additional three months, for an aggregate of 12 additional months (which is from September 8, 2022 up to September 8, 2023). In connection with the special meeting of stockholders, stockholders holding 5,658 shares of the Company’s Class A common stock exercised their right to redeem such shares for a pro rata portion of the funds in the Company’s trust account. As a result, $58,916 (approximately $10.41 per share) was removed from the Company’s trust account to pay such holders. On September 8, 2022, the Company issued a promissory note in the aggregate principal amount of $2,875,000 to the Sponsor, in connection with the extension of the termination date for the Company’s initial Business Combination from September 8, 2022 to December 8, 2022. On December 19, 2022, the Company announced the second extension of the termination date for the Company’s initial Business Combination from December 8, 2022 to March 8, 2023. On February 28, 2023, the Company announced the third extension of the termination date for the Company’s initial Business Combination from March 8, 2023 to June 8, 2023. On August 9, 2023, the Company and TMTG entered into the Second Amendment to the Merger Agreement (the “Second Amendment”). Among other changes to governance and financial terms, the Second Amendment extends the Merger Agreement’s “Outside Date” to December 31, 2023, and provides for mutual supplemental due diligence ahead of the Company’s anticipated filing of an updated registration statement on Form S-4 with the SEC. For further information on the Second Amendment, please see the Company’s current report on Form 8-K filed with the SEC on August 9, 2023 or the Company’s Amendment Number 1 to the Form S-4 Registration Statement filed with the SEC on November 13, 2023. On September 5, 2023, the Company held a special meeting of stockholders (the “Meeting”). At the Meeting, the Company’s stockholders approved the Extension Amendment extending, upon the approval by the Corporation’s board of directors, the date by which the Company has to consummate an initial business combination up to four times, each by an additional three months, for an aggregate of 12 additional months (i.e. from September 8, 2023 up to September 8, 2024) or such earlier date as determined by the Board (the “Extension Amendment Proposal”). In connection with the Meeting, stockholders holding 28,745 shares of the Company’s Class A common stock exercised their right to redeem such shares for a pro rata portion of the funds in the Company’s Trust Account. As a result, $307,028 (approximately $10.68 per share) was removed from the Company’s Trust Account to pay such holders. On September 29, 2023, the Company and TMTG entered into the Third Amendment to the Merger Agreement (the “Third Amendment”). The Third Amendment extends the period of time for the parties to complete mutual supplemental due diligence ahead of the Company’s anticipated filing of an updated registration statement on Form S-4 with the SEC. The Company has until September 8, 2024, to consummate a Business Combination (the “Combination Period”). If the Company is unable to complete a Business Combination within the Combination Period, the Company will (i) cease all operations except for the purpose of winding up, (ii) as promptly as reasonably possible but no more than five The Sponsor has agreed that it will be liable to the Company, if and to the extent any claims by a vendor for services rendered or products sold to the Company, or a prospective target business with which the Company has discussed entering into a transaction agreement, reduce the amounts in the Trust Account to below $10.20 per share (whether or not the underwriters’ over-allotment option is exercised in full), except as to any claims by a third party who executed a waiver of any and all rights to seek access to the Trust Account and except as to any claims under the Company’s indemnity of the underwriters of the Initial Public Offering against certain liabilities, including liabilities under the Securities Act. In the event that an executed waiver is deemed to be unenforceable against a third party, the Sponsor will not be responsible to the extent of any liability for such third-party claims. The Company will seek to reduce the possibility that the Sponsor will have to indemnify the Trust Account due to claims of creditors by endeavoring to have all vendors, service providers (except for the company’s independent registered accounting firm), prospective target businesses or other entities with which the Company does business, execute agreements with the Company waiving any right, title, interest or claim of any kind in or to monies held in the Trust Account. Going Concern Consideration In connection with the Company’s assessment of going concern considerations in accordance with Financial Accounting Standard Board’s Account Standards Update (“ASU”) 2014-15, “Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern” as stated above, the Company has until September 8, 2024 to consummate a Business Combination. It is uncertain that the Company will be able to consummate a Business Combination by this time. If a Business Combination is not consummated by this date, there will be a mandatory liquidation and subsequent dissolution of the Company. Additionally, the Company has incurred and expects to incur significant costs in pursuit of its acquisition plans. The Company lacks the financial resources it needs to sustain operations for a reasonable period of time, which is considered to be one year from the date of the issuance of the financial statements. As a result, these factors raise substantial doubt about the Company’s ability to continue as a going concern. The financial statements do not include any adjustments that might result from the outcome of these uncertainties. Proposed Business Combination The Company entered into an Agreement and Plan of Merger, dated as of October 20, 2021, as amended on May 11, 2022, on August 9, 2023, and on September 29, 2023, and as it may be further amended or supplemented from time to time, the “Merger Agreement”) with DWAC Merger Sub Inc., a Delaware corporation and a wholly-owned subsidiary of the Company (“Merger Sub”), Trump Media & Technology Group Corp., a Delaware corporation (“TMTG”), the Sponsor, in the capacity as the representative for certain stockholders of the Company, and Private TMTG’s General Counsel, in the capacity as the representative for stockholders of TMTG. Pursuant to the Merger Agreement, subject to the terms and conditions set forth therein, (i) upon the consummation of the transactions contemplated by the Merger Agreement (the “Closing”), Merger Sub will merge with and into TMTG (the “Merger” and, together with the other transactions contemplated by the Merger Agreement, the “Transactions”), with TMTG continuing as the surviving corporation in the Merger and a wholly-owned subsidiary of the Company. In the Merger, (i) all shares of TMTG common stock (together, “TMTG Common Stock”) issued and outstanding immediately prior to the effective time of the Merger (the “Effective Time”) (other than those properly exercising any applicable dissenters rights under Delaware law) will be converted into the right to receive the Merger Consideration (as defined below); (ii) each outstanding option to acquire shares of TMTG Common Stock (whether vested or unvested) will be assumed by the Company and automatically converted into an option to acquire shares of the Company common stock, with its price and number of shares equitably adjusted based on the conversion ratio of the shares of TMTG Common Stock into the Merger Consideration and (iii) each outstanding restricted stock unit of TMTG shall be converted into a restricted stock unit relating to shares of the Company’s common stock. At the Closing, the Company will change its name to “Trump Media & Technology Group Corp.” The aggregate merger consideration to be paid pursuant to the Merger Agreement to holders of TMTG Common Stock as of immediately prior to the Effective Time (“TMTG Stockholders” and, together with the holders of TMTG options and restricted stock units immediately prior to the Effective Time, the “TMTG Security Holders”) will be an amount equal to $875,000,000, subject to adjustments for TMTG’s closing debt, net of cash and unpaid transaction expenses (the “Merger Consideration”), plus the additional contingent right to receive certain earnout shares after the Closing, provided that it shall exclude any additional shares issuable upon conversion of certain TMTG convertible notes. The Merger Consideration to be paid to TMTG Stockholders will be paid solely by the delivery of new shares of the Company’s common stock, with each valued at the price per share at which each share of the Company’s common stock is redeemed or converted pursuant to the redemption by the Company of its public stockholders in connection with the Company’s initial Business Combination, as required by the Company’s Amended and Restated Certificate of Incorporation, by-laws and the Company’s Initial Public Offering prospectus. The Merger Consideration will be subject to a post-Closing true up 90 days after the Closing. As part of the Merger Consideration, the Company will create a new class of common stock (the “High Vote Common Stock”) to be issued to former President Donald J. Trump (“Company Principal”) that will have the same voting, dividend, liquidation and other rights as one share of the Company’s Class A common stock, except that each share of High Vote Common Stock will entitle its holder to a number of votes equal to the greater of (i) one vote and (ii) the number of votes that would cause the aggregate number of shares issued to the Company Principal as consideration in the Merger (excluding any Earnout Shares) to represent 55% of the voting power (to the maximum extent permitted by the rules and regulations of Nasdaq and applicable law, following the reasonable best efforts of the Company to obtain any necessary approvals) of (A) all shares of the Company’s common stock entitled to vote on the election of directors as of immediately following the Closing plus (B) the maximum number of shares of the Company’s common stock issuable upon the conversion of all convertible preferred stock or other convertible securities of the Company (if any) outstanding or with respect to which purchase agreements are in effect at Closing. The shares of High Vote Common Stock will vote together with all other shares of the Company’s common stock on all matters put to a vote of the Company’s stockholders, entitled to vote on the election of directors as of immediately following closing of the merger and all other matters put to a vote of the Company’s stockholders. Each TMTG convertible note that is issued and outstanding immediately prior to the Effective Time will convert immediately prior to the Effective Time into a number of shares of TMTG Common Stock in accordance with the terms of each note. In addition to the Merger Consideration set forth above, the TMTG Stockholders will also have a contingent right to receive up to an additional 40,000,000 shares of the Company’s common stock (the “Earnout Shares”) after the Closing based on the price performance of the Company’s common stock during the three (3) year period following the Closing (the “Earnout Period”). The Earnout Shares shall be earned and payable during the Earnout Period as follows: • if the dollar volume-weighted average price (“VWAP”) of the Company’s common stock equals or exceeds $12.50 per share for any 20 trading days within any 30 trading day period, the Company shall issue to the TMTG Stockholders an aggregate of 15,000,000 Earnout Shares; • if the VWAP of the Company’s common stock equals or exceeds $15.00 per share for any 20 trading days within any 30 trading day period, the Company shall issue to the TMTG Stockholders an aggregate of 15,000,000 Earnout Shares; and • if the VWAP of the Company’s common stock equals or exceeds $17.50 per share for any 20 trading days within any 30 trading day period, the Company shall issue to the TMTG Stockholders an aggregate of 10,000,000 Earnout Shares. If there is a final determination that the TMTG Stockholders are entitled to receive Earnout Shares, then such Earnout Shares will be allocated pro rata amongst the TMTG Stockholders. The number of shares of the Company’s common stock constituting any earnout payment shall be equitably adjusted for stock splits, stock dividends, combinations, recapitalizations and the like after the Closing. On December 4, 2021, in support of the Transactions, the Company entered into securities purchase agreements (the “SPAs”) with certain institutional accredited investors (the “PIPE Investors”), pursuant to which the investors agreed to purchase an aggregate of 1,000,000 shares of the Company’s Series A Convertible Preferred Stock (the “Preferred Stock”), at a purchase price of $1,000 per share of Preferred Stock, for an aggregate commitment of $1,000,000,000 in a private placement (the “PIPE”) that was originally intended to be consummated concurrently with the Transactions. The closing of the PIPE was conditioned on the concurrent closing of the Transactions and other closing conditions as set forth in the SPAs. Pursuant to the SPAs, each of the PIPE Investors had the right to terminate its respective SPA, among other things, if the closing of the PIPE had not occurred on or prior to September 20, 2022. The PIPE Investment was terminated in full as of January 10, 2024. See Note 9 — Subsequent Events. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (DWAC) | 12 Months Ended |
Dec. 31, 2023 | |
Digital World Acquisition Corp. [Member] | |
Legal Entity [Line Items] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The accompanying financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and in accordance with rules and regulations of the Securities and Exchange Commission (the “SEC”). Emerging Growth Company The Company is an “emerging growth company,” as defined in Section 2(a) of the Securities Act, as modified by the Jumpstart Our Business Startups Act of 2012 (the “JOBS Act”), and it may take advantage of certain exemptions from various reporting requirements that are applicable to other public companies that are not emerging growth companies including, but not limited to, not being required to comply with the auditor attestation requirements of Section 404 of the Sarbanes-Oxley Act, reduced disclosure obligations regarding executive compensation in its periodic reports and proxy statements, and exemptions from the requirements of holding a nonbinding advisory vote on executive compensation and stockholder approval of any golden parachute payments not previously approved. Further, Section 102(b)(1) of the JOBS Act exempts emerging growth companies from being required to comply with new or revised financial accounting standards until private companies (that is, those that have not had a Securities Act registration statement declared effective or do not have a class of securities registered under the Exchange Act) are required to comply with the new or revised financial accounting standards. The JOBS Act provides that a company can elect to opt out of the extended transition period and comply with the requirements that apply to non-emerging growth companies but any such election to opt out is irrevocable. The Company has elected not to opt out of such extended transition period which means that when a standard is issued or revised and it has different application dates for public or private companies, the Company, as an emerging growth company, can adopt the new or revised standard at the time private companies adopt the new or revised standard. This may make comparison of the Company’s financial statements with another public company which is neither an emerging growth company nor an emerging growth company which has opted out of using the extended transition period difficult or impossible because of the potential differences in accounting standards used. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Making estimates requires management to exercise significant judgment. It is at least reasonably possible that the estimate of the effect of a condition, situation or set of circumstances that existed at the date of the financial statements, which management considered in formulating its estimate, could change in the near term due to one or more future confirming events. Accordingly, the actual results could differ significantly from those estimates. Offering Costs Associated with the Initial Public Offering Offering costs consist of underwriting, legal, accounting and other expenses incurred through the balance sheet date that are directly related to the Initial Public Offering. These costs were charged to stockholders’ equity upon the completion of the Initial Public Offering. On September 8, 2021, offering costs in the aggregate of $23,566,497 were charged to stockholders’ equity (consisting of deferred underwriting commission of $10,062,500, fair value of the representative shares of $1,437,500, fair value of shares issued to the anchor investors of the Company’s Initial Public Offering of $7,677,450, fair value of shares transferred to officers and directors of $221,018, and other cash offering costs of $4,168,029). Class A Common Stock Subject to Possible Redemption As discussed in Note 4, all of the 28,750,000 shares of Class A common stock sold as part of the Units in the Initial Public Offering contain a redemption feature which allows for the redemption of such Public Shares in connection with the Company’s liquidation, if there is a stockholder vote or tender offer in connection with the Business Combination and in connection with certain amendments to the Company’s Amended and Restated Certificate of Incorporation. Income Taxes The Company complies with the accounting and reporting requirements of ASC Topic 740, “Income Taxes,” which requires an asset and liability approach to financial accounting and reporting for income taxes. Deferred income tax assets and liabilities are computed for differences between the financial statement and tax bases of assets and liabilities that will result in future taxable or deductible amounts, based on enacted tax laws and rates applicable to the periods in which the differences are expected to affect taxable income. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount expected to be realized. ASC Topic 740 prescribes a recognition threshold and a measurement attribute for the financial statement recognition and measurement of tax positions taken or expected to be taken in a tax return. For those benefits to be recognized, a tax position must be more-likely-than-not to be sustained upon examination by taxing authorities. The Company’s management determined United States is the Company’s only major tax jurisdiction. The Company recognizes accrued interest and penalties related to unrecognized tax benefits, if any, as income tax expense. There were no unrecognized tax benefits as of December 31, 2023 or December 31, 2022 and no amounts accrued for interest and penalties. The Company is currently not aware of any issues under review that could result in significant payments, accruals or material deviation from its position. For the year ended December 31, 2023, the Company recorded $109,217 of penalties and interest expense related to income taxes, which is included in income tax expense. No amount was recorded for the year ended December 31, 2022. Net Loss Per Share Net income (loss) per share is computed by dividing net income (loss) by the weighted average number of shares of common stock outstanding during the period. The Company applies the two-class method in calculating earnings per share. Earnings and losses are shared pro rata between the two classes of shares. The calculation of diluted loss per share of common stock does not consider the effect of the warrants issued in connection with the (i) Initial Public Offering and (ii) sale of the Private Placement Units, because the warrants are contingently exercisable, and the contingencies have not yet been met. As a result, diluted earnings per share is the same as basic earnings per share for the periods presented. The following table reflects the calculation of basic and diluted net income (loss) per share (in dollars, except per share amounts): Year Ended December 31, 2023 Year Ended December 31, 2022 Redeemable Non Redeemable Redeemable Non Redeemable Basic and diluted net income (loss) per share of common stock Numerator: Allocation of net income (loss), as adjusted $(14,776,927) $(7,113,714) (11,799,077) $(3,843,471) Denominator: Basic and diluted weighted average shares outstanding 30,018,099 7,187,258 30,026,614 7,187,500 Basic and diluted net income (loss) per share of common stock $ (0.49) $ (0.99) (0.39) $ (0.53) Concentration of Credit Risk Financial instruments that potentially subject the Company to concentration of credit risk consist of a cash account in a financial institution which, at times may exceed the Federal depository insurance coverage of $250,000. At December 31, 2023, the Company had not experienced losses on this account and management believes the Company is not exposed to significant risks on such account. Fair Value of Financial Instruments The fair value of the Company’s assets and liabilities, which qualify as financial instruments under ASC Topic 820, “Fair Value Measurements and Disclosures,” approximates the carrying amounts represented in the accompanying balance sheet, primarily due to their short-term nature. Derivative Financial Instruments The Company evaluates its financial instruments to determine if such instruments are derivatives or contain features that qualify as embedded derivatives in accordance with ASC Topic 815, “Derivatives and Hedging”. Derivative instruments are initially recorded at fair value on the grant date and re-valued at each reporting date, with changes in the fair value reported in the statements of operations. Derivative assets and liabilities are classified in the balance sheet as current or non-current based on whether or not net-cash settlement or conversion of the instrument could be required within 12 months of the balance sheet date. The Company accounts for the warrants in accordance with the guidance contained in ASC 815-40. The Company has determined that the warrants qualify for equity treatment in the Company’s financial statements. Recently Issued Accounting Standards Management does not believe that any recently issued, but not yet effective, accounting pronouncements, if currently adopted, would have a material effect on the Company’s financial statements. Risks and Uncertainties Management is currently evaluating the impact of the COVID-19 pandemic and has concluded that while it is reasonably possible that the virus could have a negative effect on the Company’s financial position, results of its operations, and/or search for a target company, the specific impact is not readily determinable as of the date of these financial statements. The financial statements do not include any adjustments that might result from the outcome of this uncertainty. Inflation Reduction Act of 2022 On August 16, 2022, the Inflation Reduction Act of 2022 (the “IR Act”) was signed into federal law. The IR Act provides for, among other things, a new U.S. federal 1% excise tax on certain repurchases (including redemptions) of stock by publicly traded domestic (i.e., U.S.) corporations and certain domestic subsidiaries of publicly traded foreign corporations. The excise tax is imposed on the repurchasing corporation itself, not its shareholders from which shares are repurchased. The amount of the excise tax is generally 1% of the fair market value of the shares repurchased at the time of the repurchase. However, for purposes of calculating the excise tax, repurchasing corporations are permitted to net the fair market value of certain new stock issuances against the fair market value of stock repurchases during the same taxable year. In addition, certain exceptions apply to the excise tax. The U.S. Department of the Treasury (the “Treasury Department”) has been given authority to provide regulations and other guidance to carry out and prevent the abuse or avoidance of the excise tax. The IR Act applies only to repurchases that occur after December 31, 2022. Any redemption or other repurchase that occurs after December 31, 2022, in connection with a Business Combination, extension vote or otherwise, may be subject to the excise tax. Whether and to what extent the Company would be subject to the excise tax in connection with a Business Combination, extension vote or otherwise would depend on a number of factors, including (i) the fair market value of the redemptions and repurchases in connection with the Business Combination, extension or otherwise, (ii) the structure of a Business Combination, (iii) the nature and amount of any “PIPE” or other equity issuances in connection with a Business Combination (or otherwise issued not in connection with a Business Combination but issued within the same taxable year of a Business Combination) and (iv) the content of regulations and other guidance from the Treasury. In addition, because the excise tax would be payable by the Company and not by the redeeming shareholder, the mechanics of any required payment of the excise tax have not been determined. The foregoing could cause a reduction in the cash available on hand to complete a Business Combination and in the Company’s ability to complete a Business Combination. |
INITIAL PUBLIC OFFERING (DWAC)
INITIAL PUBLIC OFFERING (DWAC) | 12 Months Ended |
Dec. 31, 2023 | |
Digital World Acquisition Corp. [Member] | |
Legal Entity [Line Items] | |
INITIAL PUBLIC OFFERING | NOTE 3. INITIAL PUBLIC OFFERING On September 8, 2021, the Company consummated its Initial Public Offering of 28,750,000 Units, at $10.00 per Unit, generating gross proceeds of $287,500,000. Each Unit consists of one share of Class A common stock and one-half of one redeemable warrant (“Public Warrant”). Each whole Public Warrant will entitle the holder to purchase one share of Class A common stock at an exercise price of $11.50 per share (see Note 8). As of September 8, 2021, the Company incurred offering costs of $23,566,497, consisting of deferred underwriting commissions of $10,062,500, fair value of the representative shares (as defined in Note 8) of $1,437,500, fair value of shares issued to the anchor investors of the Company’s Initial Public Offering of $7,677,450, fair value of shares transferred to officers and directors of $221,018, and other offering costs of $4,168,029. |
PRIVATE PLACEMENT (DWAC)
PRIVATE PLACEMENT (DWAC) | 12 Months Ended |
Dec. 31, 2023 | |
Digital World Acquisition Corp. [Member] | |
Legal Entity [Line Items] | |
PRIVATE PLACEMENT | NOTE 4. PRIVATE PLACEMENT Simultaneously with the closing of the Initial Public Offering, the Sponsor purchased an aggregate of 1,133,484 Placement Units at a price of $10.00 per Placement Unit (or $11,334,840 in the aggregate). The Sponsor initially transferred $13,203,590 to the Trust Account on September 8, 2021. The excess proceeds ($1,869,110) over the proceeds of the Private Placement were subsequently transferred back to the Company’s operating account and returned to the Sponsor. The proceeds from the sale of the Placement Units were added to the net proceeds from the Initial Public Offering held in the Trust Account. The Placement Units are identical to the Units sold in the Initial Public Offering, except that the Placement Units and their component securities will not be transferable, assignable or salable until 30 days after the consummation of the initial business combination except to permitted transferees and are entitled to registration rights. If the Company does not complete a business combination within the Combination Period, the proceeds from the sale of the Placement Units will be used to fund the redemption of the Public Shares (subject to the requirements of applicable law) and the warrants included in the Placement Units (the “Placement Warrants”) will expire worthless. |
RELATED PARTY TRANSACTIONS (DWA
RELATED PARTY TRANSACTIONS (DWAC) | 12 Months Ended |
Dec. 31, 2023 | |
Legal Entity [Line Items] | |
RELATED PARTY TRANSACTIONS | NOTE 7 - OTHER INCOME – RELATED PARTY, RELATED PARTY RECEIVABLE AND PAYABLE There was no other income – related party sales for the period. The other income – related party in 2021 amounted to $2,123,296 related to a licensing agreement with one of the Stockholders. At the end of fourth quarter 2021, $23,296 was still outstanding. TMTG was assigned net revenue from a series of public appearances by President Trump in accordance with a licensing arrangement. The income was valued on a dollar-for-dollar basis with the underlying sales. TMTG did not incur any costs in connection with such assigned sales. In terms of the agreement, these sales were made in the fourth quarter of 2021 and final payment was made to TMTG, in accordance with the license agreement, in February of 2022. Related party payable is operational funding of $95,518 received from two of the Stockholders during the first quarter of 2021, which was repaid in May of 2022. The operational funding carried no specific repayment terms or interest charges. |
Digital World Acquisition Corp. [Member] | |
Legal Entity [Line Items] | |
RELATED PARTY TRANSACTIONS | NOTE 5. RELATED PARTY TRANSACTIONS Class B common stock During the year ended December 31, 2021, the Company issued an aggregate of 8,625,000 shares of Class B common stock or Founder Shares to the Sponsor for an aggregate purchase price of $25,000 in cash. On July 2, 2021, the Sponsor transferred 10,000 Founder Shares to its Chief Financial Officer and 7,500 Founder Shares to each of its independent directors. The Company estimated the fair value of these transferred shares to be $221,000. On September 2, 2021, the Sponsor surrendered to the Company an aggregate of 1,437,500 shares of Class B common stock for cancellation for no consideration, resulting in an aggregate of 7,187,500 shares of Class B common stock issued and outstanding. The number of Founder Shares issued represented 20% of the Company’s issued and outstanding shares after the Initial Public Offering (assuming the initial stockholders do not purchase any Public Shares in the Initial Public Offering and excluding the Placement Units and underlying securities). All shares and associated amounts have been retroactively restated to reflect the surrender of these shares. With certain limited exceptions, the shares of Class B common stock are not transferable, assignable by the Sponsor until the earlier to occur of: (A) six months after the completion of the Company’s initial Business Combination and (B) subsequent to the Company’s initial Business Combination, (x) if the reported last sale price of the Company’s Class A common stock equals or exceeds $12.00 per share (as adjusted for stock splits, stock dividends, reorganizations, recapitalizations and the like) for any 20 trading days within any 30-trading day period commencing at least 150 days after the Company’s initial Business Combination, or (y) the date on which the Company completes a liquidation, merger, capital stock exchange or other similar transaction that results in all of the Company stockholders having the right to exchange their shares of common stock for cash, securities or other property. With certain limited exceptions, the Placement Units, Placement Shares, Placement Warrants and the Class A common stock underlying the Placement Warrants, will not be transferable, assignable or saleable by the Sponsor or its permitted transferees until 30 days after the completion of the initial Business Combination. Administrative Services Arrangement An affiliate of the Sponsor has agreed, commencing from the date when the Company’s Registration Statement was declared effective through the earlier of the Company’s consummation of a Business Combination and its liquidation, to make available to the Company certain general and administrative services, including office space, utilities and administrative services, as the Company may require from time to time. The Company has agreed to pay the affiliate of the Sponsor $15,000 per month for these services. The agreement with the Sponsor was terminated on April 5, 2023. $45,000 and $180,000 of expense was recorded for the year ended December 31, 2023 and 2022, respectively. $221,000 and $176,000 was unpaid as of December 31, 2023 and December 31, 2022, respectively. On April 5, 2023, Company entered into an Administrative Support Agreement with Renatus LLC (“Renatus”), an advisory group owned by Eric Swider, the Chief Executive Officer and director of the Company, pursuant to which, the Company agrees to pay Renatus a monthly fee of $15,000 for office space, utilities and secretarial and administrative support commencing from April 5, 2023 until the earlier of the consummation by the Company of an initial business combination or the Company’s liquidation. $105,000 and $0 of expense was recorded for the year ended December 31, 2023 and 2022, respectively. There was no unpaid balance as of December 31, 2023. Related Party Loans In order to finance transaction costs in connection with an initial business combination, the Sponsor or an affiliate of the Sponsor, or the Company’s officers and directors may, but are not obligated to, loan the Company funds as may be required using Digital World Convertible Notes. • “Digital World Convertible Notes” means up to $40,000,000 in non-interest bearing convertible promissory notes payable upon the stockholders’ approval of the Business Combination and, if applicable, the PIPE Investors’ approval, in either (i) Working Capital Units or (ii) cash or Working Capital Units, at the election of the holder. Up to $30,000,000 of such convertible promissory notes may be issued to the Sponsor or its affiliates or the Company’s officers or directors in connection with any loans made by them to the Company prior to Closing. Up to $10,000,000 of such convertible promissory notes may be issued to either third parties providing services or making loans to the Company or to the Sponsor or its affiliates or the Company’s officers or directors in connection with any loans made by them to the Company prior to Closing. • “Working Capital Units” means any units issuable pursuant to the Digital World Convertible Notes. Each unit consists of one share of Digital World Class A common stock and one-half In the event that an initial business combination does not close, the Company may use a portion of proceeds held outside the Trust Account to repay the Digital World Convertible Notes, but no proceeds held in the Trust Account would be used to repay the Digital World Convertible Notes. In November 2021, the Sponsor committed to provide loans of up to an aggregate of $1,000,000 to the Company through September 8, 2023, in the form of Digital World Convertible Notes. On May 12, 2022, the Company entered into an amendment (the “Amendment to the Insider Letter”) to that certain letter agreement, dated September 2, 2021 (“Insider Letter”), with the Sponsor and the Company’s directors, officers or other initial shareholders named therein (the “Insiders”). Pursuant to the Insider Letter, among other matters, the Sponsor and the Insiders agreed in Section 9 thereof, that the Sponsor, an affiliate of the Sponsor or certain of the Company’s officers and directors may make up to $30,000,000 loans against Digital World Convertible Notes with a conversion price of $10 per Working Capital Units. On September 8, 2022, the Company issued a Digital World Convertible Note with a conversion price of $10 per Working Capital Units with an aggregate principal amount of $2,875,000 to the Sponsor, in connection with the extension of the termination date for the Company’s initial business combination from September 8, 2022 to December 8, 2022. As of December 31, 2023 and December 31, 2022, there was $2,875,000 outstanding under this note. On April 21, 2023, the Company issued two Digital World Convertible Notes (one for $625,700 and the other for $500,000) in the aggregate principal amount of $1,125,700 to the Sponsor to pay costs and expenses in connection with completing an initial business combination. As of December 31, 2023, there were $1,125,700 outstanding in Digital World Convertible Notes with a conversion price of $10 per Working Capital Units (which exceeds the aggregate amount the Sponsor committed to provide). On June 2, 2023, the Company issued a Digital World Convertible Note with a conversion price of $10 per Working Capital Units, with an aggregate principal amount of $2,000,000 to Renatus, of which Eric Swider, Chief Executive Officer and Director of the Company, is a founder and partner and another Digital World Convertible Notes in the aggregate principal amount of $10,000,000 (the “$10 Million Note,” together with the $2 Million Note, the “Renatus Notes”) to Renatus. As of December 31, 2023, $1,232,000 was outstanding in Digital World Convertible Note to Renatus. The issuances of the Notes were made pursuant to the exemption from registration contained in Section 4(a)(2) of the Securities Act of 1933, as amended. Advances — related parties During 2022 and the year ended December 31, 2023, the Sponsor paid, on behalf of the Company, $470,835 to a vendor for costs incurred by the Company and $41,000 directly to the Company. As of December 31, 2023 and December 31, 2022, the Company’s obligation to the Sponsor for such payments was outstanding in the amount of $41,000 and $425,835, respectively. During 2022, a Board member paid, on behalf of the Company, $100,000 to a vendor for costs incurred by the Company. As of December 31, 2023 and December 31, 2022, the Company’s obligation to the Board Member for such payment was $0 and $100,000, respectively. Note payable During 2023, the Company agreed to pay a law firm a fixed amount of $500,000 for services rendered through December 31, 2023. As of December 31, 2023, the $500,000 was earned and payable and included in Note payable on the balance sheet. On November 20, 2023, the law firm was issued $500,000 in a Digital World Convertible Note with a conversion price of $10 per Working Capital Units. During the fourth quarter of 2023, the Company issued Digital World Convertible Notes with a conversion price of $10 per Working Capital Units to certain investors, for working capital purposes. As of December 31, 2023, $1,049,945 was outstanding in Digital World Convertible Notes to certain investors. |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (DWAC) | 12 Months Ended |
Dec. 31, 2023 | |
Legal Entity [Line Items] | |
COMMITMENTS AND CONTINGENCIES | NOTE 11 - COMMITMENTS AND CONTINGENCIES In August 2022, TMTG irrevocably terminated all agreements with one of its vendors due to a material breach by the vendor, and TMTG reserved numerous affirmative claims against the vendor. TMTG determined during the third quarter of 2022 that payment of existing invoices, future invoices, or litigation expenses is “not probable.” Therefore, TMTG has not accrued for a related loss contingency. The total amount of liability of $1.7 million was reversed during the third quarter of 2022. TMTG further reversed $0.5 million of additional liabilities during the third quarter of 2022 related to vendors who relied on erroneous interpretation of supply contracts. Based on current known facts and circumstances, the Company currently believes that any liabilities ultimately resulting from ordinary course claims and proceedings will not individually or in aggregate, have a material adverse effect on the Company's financial position, results of operations or cash flows. |
Digital World Acquisition Corp. [Member] | |
Legal Entity [Line Items] | |
COMMITMENTS AND CONTINGENCIES | NOTE 6. COMMITMENTS AND CONTINGENCIES Registration Rights The holders of the Founder Shares, the holders of representative shares as well as the holders of the Placement Units (and underlying securities) and any securities issued in payment of Working Capital Loans made to the Company, are entitled to registration rights pursuant to an agreement signed on the effective date of the Initial Public Offering. The holders of a majority of these securities are entitled to make up to three demands that the Company register such securities. In addition, the holders have certain “piggy-back” registration rights with respect to registration statements filed subsequent to the consummation of a Business Combination. Notwithstanding anything to the contrary, the underwriters (and/or their designees) may participate in a “piggy- back” registration only during the seven year period beginning on the effective date of the Initial Public Offering. The Company will bear the expenses incurred in connection with the filing of any such registration statements. Notwithstanding anything to the contrary, under FINRA Rule 5110, the underwriters and/or their designees may only make a demand registration (i) on one occasion and (ii) during the five-year period beginning on the effective date of the registration statement relating to the Initial Public Offering, and the underwriters and/or their designees may participate in a “piggy-back” registration only during the seven-year period beginning on the effective date of the registration statement relating to the Initial Public Offering. Underwriting Agreement The underwriters purchased the 3,750,000 additional Units to cover over-allotments at the Initial Public Offering price, less the underwriting discounts and commissions. The underwriters are entitled to a cash underwriting discount of: (i) one point twenty-five percent (1.25%) of the gross proceeds of the Initial Public Offering, or $3,593,750, with the underwriters’ over-allotment having been exercised in full; (ii) zero point five percent (0.50%) of the total number of shares of Class A common stock issued in the Initial Public Offering, or 143,750 shares of Class A common stock. In addition, the underwriters are entitled to a deferred underwriting commissions of three point five percent (3.50%) of the gross proceeds of the Initial Public Offering, or $10,062,500 upon closing of the Business Combination. The deferred underwriting commissions will be paid in cash upon the closing of a Business Combination from the amounts held in the Trust Account, subject to the terms of the underwriting agreement. Right of First Refusal Subject to certain conditions, the Company granted the underwriter, for a period of 24 months after the date of the consummation of the Business Combination, a right of first refusal to act as sole book runner, and/or sole placement agent, at the representative’s sole discretion, for each and every future public and private equity and debt offering, including all equity linked financings for the Company or any of its successors or subsidiaries. In accordance with FINRA Rule 5110(g)(6)(A), such right of first refusal shall not have a duration of more than three years from the effective date of the Registration Statement. Agreement with law firm During 2023, the Company agreed to pay a law firm the greater of $8 million or 130% of the actual fees incurred if the Company completes the Business Combination. Such fees are subject to a downward adjustment in the event the Business Combination is not consummated. Fees and expenses incurred for the year ended December 31, 2023 related to the law firm were $5.1 million. No fees and expenses were incurred for the year ended December 31, 2022. Legal Matters Except as indicated below, to the knowledge of the Company’s management team, there is no litigation currently pending or contemplated against the Company, or against any of its property. The Company is cooperating with a FINRA inquiry concerning events (specifically, a review of trading) that preceded the public announcement of the Merger Agreement. According to FINRA’s request, the inquiry should not be construed as an indication that FINRA has determined that any violations of Nasdaq rules or federal securities laws have occurred, nor as a reflection upon the merits of the securities involved or upon any person who effected transactions in such securities. Settlement in Principle As previously disclosed in the Company’s Form 8-K filed with the SEC on July 3, 2023, the Company was the subject of an investigation (the “Investigation”) by the SEC with respect to certain statements, agreements and the timing thereof included in the Company’s registration statements on Form S-1 (the “Form S-1”) in connection with its IPO and Form S-4 relating to the business combination between the Company and TMTG. On July 3, 2023, the Company reached an agreement in principle (the “Settlement in Principle”) in connection with the Investigation. The Settlement in Principle was subject to approval by the SEC. On July 20, 2023, the SEC approved the Settlement in Principle, announcing settled charges against Digital World and entered a cease-and-desist order (the “Order”) finding that Digital World violated certain antifraud provisions of the Securities Act and the Exchange Act, in connection with Digital World’s IPO filings on Form S-1 and the Form S-4 concerning certain statements, agreements and omissions relating to the timing and discussions Digital World had with TMTG regarding the proposed business combination. In the Order, Digital World agreed (i) that any amended Form S-4 filed by Digital World will be materially complete and accurate with respect to certain statements, agreements and omissions relating to the timing and discussions that Digital World had with TMTG regarding the proposed business combination and (ii) to pay a civil money penalty in an amount of $18 million to the SEC promptly after the closing of any merger or a comparable business combination or transaction, whether with TMTG or any other entity. The Company recorded an expense related to this matter of $18 million for the year ended December 31, 2023. Directors’ and Officers’ Insurance Policy The coverage under the D&O policy is $2.5 million in excess of a $5.0 million retention. The Company has submitted a notice of loss related to the above noted DOJ and SEC actions to the insurance company and has begun submitting information to the insurance company. Based on actual payments made to third parties under the D&O policy, the Company has reduced its liabilities at December 31, 2023 by $1.1 million. The Company is subject to litigation, disputes and claims in the normal course of its business. Except as noted above, the Company is not aware of any matters which could be material to the financial statements. Notice of delisting On May 23, 2023, the Company received a notice from the Listing Qualifications Department of The Nasdaq Stock Market LLC (“Nasdaq”) stating that the Company was not in compliance with Nasdaq Listing Rule 5250(c)(1) (the “Rule”) because it had not yet filed its Quarterly Report on Form 10-Q for the quarter ended March 31, 2023 (the “Q1 Form 10-Q”) with the SEC. The Rule requires listed companies to timely file all required periodic financial reports with the SEC. Pursuant to Nasdaq rules, on July 24, 2023, the Company submitted to Nasdaq a plan to regain compliance with the Rule. On August 7, 2023, the Company received a notice from Nasdaq stating that Nasdaq had determined to grant an exception to enable the Company to regain compliance with the Rule and required the Company to file its amended Annual Report on Form 10-K for the year ended December 31, 2022 and its Q1 Form 10-Q, as required by the Rule, on or before November 20, 2023. On October 30, 2023, the Company filed its amended Annual Report on Form 10-K. On November 13, 2023, the Company filed its Q1 Form 10-Q. On August 24, 2023, the Company announced that it received an expected letter from Nasdaq stating that the Company was not in compliance with the Rule because it had not yet filed its Quarterly Report on Form 10-Q for the period ended June 30, 2023 (the “Second Quarter Form 10-Q”) with the SEC. The Company submitted to Nasdaq an updated compliance plan which required the Company to file its Second Quarter Form 10-Q by November 20, 2023. On November 13, 2023, the Company filed its Second Quarter Form 10-Q. |
STOCKHOLDERS' DEFICIT (DWAC)
STOCKHOLDERS' DEFICIT (DWAC) | 12 Months Ended |
Dec. 31, 2023 | |
Legal Entity [Line Items] | |
STOCKHOLDERS' DEFICIT | NOTE 10 - STOCKHOLDERS’ EQUITY At inception, the total number of shares of all classes of capital stock that the Company was authorized to issue was 11,000 shares of Company Stock, each having a par value of $0.000001, of which 10,000 shares were issued and outstanding, and an additional 1,000 shares were authorized for issuance in connection with the Company’s Equity Incentive Plan. In October 2021, the total number of shares of Common Stock authorized was increased to 110,000,000, each having a par value of $0.000001. Each share of the Company’s Common Stock, automatically and without any action on the part of the Company or any respective holders thereof, was reclassified into ten thousand (10,000) shares of the Company’s Common Stock, $0.000001 par value per share, resulting in 110,000,000 shares authorized, of which 100,000,000 shares were issued and outstanding, and an additional 7,500,000 shares were authorized for issuance in connection with the Company’s Equity Incentive Plan. In January 2022, the total number of shares of the Company’s Common Stock authorized was increased to 120,000,000, each having a par value of $0.000001, of which 100,000,000 shares were issued and outstanding, and an additional 7,500,000 shares were authorized for issuance in connection with the Company’s Equity Incentive Plan. |
Digital World Acquisition Corp. [Member] | |
Legal Entity [Line Items] | |
STOCKHOLDERS' DEFICIT | NOTE 7. STOCKHOLDERS’ DEFICIT Preferred Stock — The Company is authorized to issue 1,000,000 shares of preferred stock with a par value of $0.0001 per share with such designation, rights and preferences as may be determined from time to time by the Company’s Board of Directors. At December 31, 2023 and December 31, 2022, there were no shares of preferred stock issued or outstanding. Class A Common Stock — The Company is authorized to issue 200,000,000 shares of Class A common stock with a par value of $0.0001 per share. Holders of the Company’s Class A common stock are entitled to one vote for each share. On September 8, 2021, the Company issued 143,750 shares of Class A common stock (“representative shares”) to the underwriter. The Company accounts for the representative shares as an expense of the Initial Public Offering resulting in a charge directly to stockholders’ equity, at an estimated fair value of $1,437,500. At December 31, 2023 and December 31, 2022, there were 28,715,597 and 28,750,000 shares of Class A common stock issued and outstanding that are subject to possible redemption, and accordingly, such shares have been classified outside of permanent equity. At December 31, 2023 and December 31, 2022, there were 1,277,234 shares of Class A common stock included in stockholders’ deficit. Class B Common Stock — The Company is authorized to issue 10,000,000 shares of Class B common stock with a par value of $0.0001 per share. Holders of the Company’s Class B common stock are entitled to one vote for each share. On September 2, 2021, the Sponsor surrendered an aggregate of 1,437,500 shares of Class B common stock for cancellation for no consideration. At December 31, 2023 and December 31, 2022, there were 7,158,025 and 7,187,500 shares of Class B common stock issued and outstanding, of which 1,650,000 shares were transferred to qualified institutional buyers. The shares of Class B Common Stock held by the Sponsor, officers and directors of the Company and institutional buyers represent 20% of the issued and outstanding shares after the Initial Public Offering (assuming those initial stockholders do not purchase any Public Shares in the Initial Public Offering and excluding the Placement Shares). Shares of Class B common stock will automatically convert into shares of Class A common stock at the time of the initial Business Combination on a one-for-one basis, subject to certain adjustments. Warrants — The warrants will become exercisable 30 days after the consummation of a Business Combination. The warrants will expire five years from the consummation of a Business Combination or earlier upon redemption or liquidation. The Company will not be obligated to deliver any Class A common stock pursuant to the exercise of a warrant and will have no obligation to settle such warrant exercise unless a registration statement under the Securities Act covering the issuance of Class A common stock issuable upon exercise of the warrants is then effective and a prospectus relating thereto is current, subject to the Company satisfying its obligations with respect to registration. No warrant will be exercisable and the Company will not be obligated to issue shares of Class A common stock upon exercise of a warrant unless Class A common stock issuable upon such warrant exercise has been registered, qualified or deemed to be exempt under the securities laws of the state of residence of the registered holder of the warrants. Once the warrants become exercisable, the Company may redeem the warrants: • in whole and not in part; • at a price of $0.01 per warrant; • at any time after the warrants become exercisable; • upon not less than 30 days’ prior written notice of redemption to each warrant holder; • if, and only if, the reported last sale price of the Class A common stock equals or exceeds $18.00 per share (as adjusted for stock splits, stock dividends, reorganizations, and recapitalizations) for any 20 trading days within a 30-trading day period commencing at any time after the warrants become exercisable and ending on the third business day prior to the notice of redemption to warrant holders; and • if, and only if, there is a current registration statement in effect with respect to the shares of Class A common stock underlying such warrants. If the Company calls the warrants for redemption, management will have the option to require all holders that wish to exercise the warrants to do so on a “cashless basis,” as described in the warrant agreement. The exercise price and number of shares of Class A common stock issuable upon exercise of the warrants may be adjusted in certain circumstances including in the event of a stock dividend, or recapitalization, reorganization, merger or consolidation. However, except as described below, the warrants will not be adjusted for issuance of Class A common stock at a price below its exercise price. Additionally, in no event will the Company be required to net cash settle the warrants. If the Company is unable to complete a Business Combination within the Combination Period and the Company liquidates the funds held in the Trust Account, holders of warrants will not receive any of such funds with respect to their warrants, nor will they receive any distribution from the Company’s assets held outside of the Trust Account with the respect to such warrants. Accordingly, the warrants may expire worthless. In addition, if (x) the Company issues additional shares of Class A common stock or equity-linked securities, for capital raising purposes in connection with the closing of a Business Combination at an issue price or effective issue price of less than $9.20 per share of Class A common stock (with such issue price or effective issue price to be determined in good faith by the Company’s board of directors, and, in the case of any such issuance to the Sponsor or its affiliates, without taking into account any Founder Shares held by the sponsor or its affiliates, as applicable, prior to such issuance) (the “Newly Issued Price”), (y) the aggregate gross proceeds from such issuances represent more than 60% of the total equity proceeds, and interest thereon, available for the funding of a Business Combination on the date of the completion of a Business Combination (net of redemptions), and (z) the volume weighted average trading price of the Company’s Class A common stock during the 20 trading day period starting on the trading day after the day on which the Company completes a Business Combination (such price, the “Market Value”) is below $9.20 per share, the exercise price of the warrants will be adjusted (to the nearest cent) to be equal to 115% of the greater of the Market Value and the Newly Issued Price, and the $18.00 per share redemption trigger price will be adjusted (to the nearest cent) to be equal to 180% of the greater of the Market Value and the Newly Issued Price. The Private Warrants, as well as any warrants underlying additional units the Company issues to the Sponsor, officers, directors, initial stockholders or their affiliates in payment of Working Capital Loans made to the Company, will be identical to the Public Warrants and may not, subject to certain limited exceptions, be transferred, assigned or sold by the holders until 30 days after the completion of the Company’s initial Business Combination and will be entitled to registration rights. |
TAXES (DWAC)
TAXES (DWAC) | 12 Months Ended |
Dec. 31, 2023 | |
Legal Entity [Line Items] | |
TAXES | NOTE 6 - INCOME TAXES The following reconciles the total income tax benefit, based on the U.S. Federal statutory income tax rate of 21% for the twelve month period ended December 31, 2023, with TMTG’s recognized income tax expense: Twelve Month Period Ended (in thousands) December 31, 2023 December 31, 2022 U.S. Statutory federal income tax expense/(benefit) (12,219.7) 10,610.0 Permanent items State income taxes, net of federal effect 1.1 2,633.1 Non-deductible expenses 334.6 3.0 Change in valuation allowance 11,885.1 (13,245.9) Income tax expense 1.1 0.2 The tax effects of temporary differences that give rise to deferred tax assets and deferred tax liabilities as of December 31, 2023 are as follows: (in thousands) December 31, 2023 December 31, 2022 Deferred tax assets Software and other claimed assets 360.6 $ 1,810.5 Net operating loss (NOL) 9,474.7 4,478.1 Convertible promissory notes and derivative liability 3,853.2 — Total deferred tax assets 13,688.5 6,288.6 Deferred tax liabilities Property, plant & equipment (6.2) (18.2) Convertible promissory notes and derivative liability — (4,473.2) Total deferred tax liabilities (6.2) (4,491.4) Net deferred tax assets 13,682.3 1,797.2 Valuation allowance (13,682.3) (1,797.2) Net deferred tax, net of valuation allowance — — As of December 31, 2023, TMTG had US Federal net operating loss carryforwards (“NOLs”) with a tax benefit of $9,474,744 (December 31, 2022: $4,478,110). |
Digital World Acquisition Corp. [Member] | |
Legal Entity [Line Items] | |
TAXES | NOTE 8. TAXES The Company’s net deferred tax assets are as follows: December 31, 2023 December 31, 2022 Deferred tax assets: Net operating losses $ — $ — Legal settlement 4,562,100 — Start-up costs 8,716,458 5,190,046 Total deferred tax assets 13,278,558 5,190,046 Valuation Allowance (13,278,558) (5,190,046) Deferred tax asset, net of allowance $ — $ — Below is breakdown of the income tax provision. For the Year Ended December 31, 2023 For the Year Ended December 31, 2022 Federal Current $(3,742,611) $(3,078,967) Deferred — — State and local Current (796,963) (637,053) Deferred — — Change in valuation allowance 8,088,176 4,695,494 Income tax provision $ 3,548,602 $ 979,475 As of December 31, 2023 and 2022, the Company had $0 of U.S. federal and state operating loss carryovers. In assessing the realization of the deferred tax assets, management considers whether it is more likely than not that some portion of all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which temporary differences representing net future deductible amounts become deductible. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income and tax planning strategies in making this assessment. After consideration of all of the information available, management believes that significant uncertainty exists with respect to future realization of the deferred tax assets and has therefore established a full valuation allowance. For the year ended December 31, 2023 and 2022, the change in the valuation allowance was $8,088,176 and $4,695,494, respectively. A reconciliation of the federal income tax rate to the Company’s effective tax rate is as follows: For the Year Ended December 31, 2023 For the Year Ended December 31, 2022 Federal income taxes at 21.00% 21.00% 21.00% State tax, net of Federal benefit 4.35% 4.35% Change in valuation allowance (44.10)% (32.03)% Other (0.60)% —% Provision for income tax (19.35)% (6.68)% The effective tax rate differs from the statutory tax rate of 21% for the year ended December 31, 2023 and 2022, due to the change in the valuation allowance. The Company files income tax returns in the U.S. federal jurisdiction and is subject to examination by the various taxing authorities. The Company’s tax returns since inception remain open to examination by the taxing authorities. The Company considers Florida to be a significant state tax jurisdiction. |
SUBSEQUENT EVENTS (DWAC)
SUBSEQUENT EVENTS (DWAC) | 12 Months Ended |
Dec. 31, 2023 | |
Legal Entity [Line Items] | |
SUBSEQUENT EVENTS | NOTE 12 - SUBSEQUENT EVENTS In accordance with ASC Topic 855, “Subsequent Events”, which establishes general standards of accounting for and disclosure of events that occur after the balance sheet date but before financial statements are issued, the Company has evaluated all events or transactions that occurred after December 31, 2023, up to the date the Company issued the financial statements. On January 7, 2024, TMTG’s majority shareholder approved an amended certificate of incorporation that, when filed on January 26, 2024, increased TMTG’s authorized shares to 1,000,000,000. On January 18, 2024, DWAC received a letter from a TMTG minority shareholder that contained certain assertions regarding: (i) board appointments with respect to TMTG; (ii) consent rights with respect to TMTG’s issuance of additional shares and classes of securities; and (iii) certain expenses. On January 22, 2024, in furtherance of TMTG and DWAC’s proposed merger, DWAC filed with the SEC a third amendment to its registration statement on form S-4, which included disclosures regarding the January 18 letter. TMTG and a new lender executed a promissory note (with a face value of $1,000,000) dated January 22, 2024. On January 22, 2024, TMTG received a books and records inspection request from another TMTG minority shareholder, purportedly pursuant to Section 220 of the Delaware General Corporation Law, to which TMTG responded via counsel on January 29, 2024. TMTG received several subsequent communications from the same minority shareholder. Effective February 2, 2024, TMTG entered into a Second Amended & Restated License Agreement with President Trump. Effective February 2, 2024, TMTG entered into three amended and restated convertible promissory notes with one of its noteholders; the amendments clarified certain conversion mechanics and confirmed the application of an MFN clause to one of the notes. On February 9, 2024, TMTG and DWAC received letters from the TMTG minority shareholder that had previously sent a letter to DWAC on January 18. Effective February 12, 2024, TMTG and DWAC entered into a Retention Bonus Agreement pertaining to post-merger payments to employees and other personnel affiliated with TMTG. On February 12, 2024, in furtherance of TMTG and DWAC’s proposed merger, DWAC filed with the SEC a fourth amendment to its registration statement on form S-4, which included disclosures regarding the aforementioned communications from TMTG minority shareholders. On February 14, 2024, in furtherance of TMTG and DWAC’s proposed merger, DWAC filed with the SEC fifth and sixth amendments to its registration statement on form S-4, after which DWAC received from SEC a notice indicating that the S-4 was effective as of 5:30pm on that same date. On February 16, 2024, DWAC filed with the SEC a proxy statement/prospectus scheduling a shareholder meeting (to vote on approving DWAC’s proposed merger with TMTG, among other matters) for March 22, 2024. On February 16, 2024 and March 20, 2024, TMTG received a letter from the minority shareholder that had previously sent a letter to TMTG on February 9, and to DWAC on January 18 and February 9, purporting to appoint two individuals to TMTG’s board. Effective February 21, 2024, TMTG entered into an amended and restated convertible promissory note with one of its noteholders; the amendment revised certain economic terms of the noteholder’s loans, extended the maturity date thereof, and increased by the cumulative principal by $1,205,000. On February 27, 2024, TMTG and DWAC sued DWAC’s sponsor and the sponsor’s principal (who is also DWAC’s former CEO) in Florida state court. On February 28, 2024, the TMTG minority shareholder that had previously sent letters to TMTG on February 9 and February 16 sued TMTG in Delaware state court, seeking declaratory and injunctive relief relating to the authorization, issuance and ownership of TMTG stock, and contemporaneously filed a motion to expedite proceedings. On or about March 4, the minority shareholder amended its complaint to add each of TMTG’s board members as defendants. On March 9, during a hearing on the motion to expedite proceedings, the parties and the judge agreed that TMTG would place into escrow any additional TMTG shares, other than shares issuable to TMTG’s convertible noteholders, issued by TMTG prior to the closing of TMTG’s proposed merger with DWAC. The court issued a written order consistent with the foregoing on March 15, 2024, and scheduled a status conference for April 1, 2024. TMTG management believes that this litigation is not likely to result in the award of financial damages to the minority shareholder, and will not have a direct financial impact on TMTG other than potential ongoing legal fees for the duration of this matter. On or about February 28, 2024, DWAC’s sponsor sued DWAC in Delaware state court. On March 5, the judge denied in part the sponsor’s motion to expedite proceedings and stated that the court will not hold a merits or injunction hearing before the March 22 DWAC shareholder vote. With respect to the conversion of 7,158,025 shares of DWAC class B common stock into DWAC class A common stock in connection with the closing of the merger, DWAC has agreed to place into escrow a number of shares representing the difference between the conversion ratio determined by the DWAC board (1.348) and 2.00, i.e., 4,667,033 shares. TMTG management believes that this matter will not have a financial impact on TMTG other than potential legal fees following the closing of TMTG’s proposed merger with DWAC. Effective March 3 and 5, 2024, and in anticipation of the scheduled closing of TMTG’s merger with DWAC, several noteholders agreed with TMTG to amend their respective convertible notes by revising certain economic terms and extending the maturity date thereof. Effective March 7, 12, and 13, 2024, TMTG entered into multiple convertible promissory notes, including with several of its officers in accordance with the disclosures contained in DWAC’s registration and proxy statements. On March 22, 2024, DWAC shareholders approved DWAC’s merger with TMTG (and related proposals), and NASDAQ approved the listing of the post-merger entity. |
Digital World Acquisition Corp. [Member] | |
Legal Entity [Line Items] | |
SUBSEQUENT EVENTS | NOTE 9. SUBSEQUENT EVENTS In accordance with ASC Topic 855, “Subsequent Events”, which establishes general standards of accounting for and disclosure of events that occur after the balance sheet date but before financial statements are issued, the Company has evaluated all events or transactions that occurred after December 31, 2023. Based upon this review the Company did not identify any subsequent events that would have required adjustment or disclosure in the financial statements, except as noted below. PIPE terminations As of February 8, 2024, all PIPE commitments had been terminated. Institutional investors convertible notes and warrants February 6, 2024 The Company issued six promissory notes to certain accredited investors for a total aggregate principal amount of up to $770,000. The proceeds of the Notes will be used to pay costs and expenses in connection with completing the Business Combination Each of the notes bears no interest and is repayable in full upon the earlier of (i) the date on which the Company consummates its Business Combination and (ii) the date that the winding up of the Company is effective. At the election of the holder and upon the approval of the Company’s stockholders, up to the full amounts payable under the notes may be converted into units of the Company at any time on or prior to the applicable maturity date of the notes. The total conversion units so issued shall be equal to: (x) the portion of the principal amount of the respective note being converted divided by (y) the conversion price, rounded up to the nearest whole number of conversion units. February 8, 2024 Pursuant to a note purchase agreement entered into by and between Digital World and certain institutional investors on February 8, 2024 (the “Note Purchase Agreement”), Digital World agreed to issue up to $50,000,000 in convertible promissory notes (the “Convertible Notes”). The Convertible Notes: (a) accrue interest at an annual rate of 8.00% and are payable on the earlier of (i) the date that is 12 months after the date on which the Company consummates the Business Combination, which interest is not payable to the extent the holder exercises the conversion right and (ii) the date that the winding up of the Company is effective (such date, the “Maturity Date”); (b) are convertible (i) at any time following the consummation of the Business Combination, but prior to the Maturity Date, redemption or otherwise the repayment in full of the Convertible Notes, at each holder’s option, in whole or in part, and subject to the terms and conditions of the Convertible Notes, including any required shareholders’ approval upon the consummation of the Business Combination and (ii) into that number of Digital World Class A common stock and warrants included in the units, each unit consisting of one share of Class A common stock of the Company and one-half (c) may be redeemed by Digital World, in whole or in part, commencing on the date on which all Digital World Class A common stock issuable to the holders has been registered with the Securities and Exchange Commission (the “SEC”), by providing a 10-day notice of such redemption (the “Redemption Right”), which Redemption Right is contingent upon the trading price of the Digital World Class A common stock exceeding 130% of the applicable conversion price on at least 3 trading days, whether consecutive or not, within the 15 consecutive trading days ending on the day immediately preceding the day on which a redemption notice is issued by Digital World; (d) are initially drawable for 20% of the applicable investor’s commitment amount and a final drawdown for the remaining 80% to occur upon the closing of the Business Combination, with the proceeds of such final drawdown to be deposited into a control account as indicated by the Company (the “Control Account”). The proceeds from such final drawdown deposited into the Control Account shall remain therein and may not be withdrawn by the Company until such time as (i) the Company exercises the Redemption Rights using the proceeds in the Control Account, (ii) any portion of the applicable Convertible Note has been converted, at which time such portion shall be released from the Control Account or (iii) if prior to the conversion, a resale registration statement of the Company covering all common stock issued pursuant to the Convertible Note has been declared effective by the Commission; (e) are subject to specified events of default; and (f) have registration rights pursuant to the registration rights agreement entered into by the Company and the parties thereto as of September 2, 2021. In addition, pursuant to warrant subscription agreements (each a “Warrant Subscription Agreement”) entered into by and between Digital World and certain institutional investors on February 7, 2024, Digital World has agreed to issue an aggregate of 3,050,000 warrants (“Post-IPO Warrants”), each warrant entitling the holder thereof to purchase one share of Digital World Class A common stock for $11.50 per share. The Post-IPO Warrants are expected to be issued concurrently with the closing of the Business Combination, and when and if issued, shall have substantially the same terms as the public warrants issued by Digital World in connection with its initial public offering, except that such Post-IPO Warrants may only be transferred to the applicable holder’s affiliates. Board of Directors and officers convertible notes On January 22, 2024 the Company issued 9,651,250 of convertible notes to the Board of Directors and officers as compensation for services through the closing of the business combination. Principal, Interest and Maturity Date Each Promissory Note has an interest rate of 0%. Each Promissory Note will be payable by the Company on the date on which the Company consummates its initial business combination, subject to the holder’s continued service with the Company through the closing of the initial business combination. Repayment of the principal amount of the Promissory Note (as well as any delivery of shares of our Class A common stock if the holder elects to covert the Promissory Note) will also be subject to any withholding taxes and deductions required by applicable laws, as determined by the Company. Conversion and Payment At the holder’s option, and subject to the terms and conditions set forth herein, at any time prior to the Maturity Date, the holder may elect to convert all or a portion of the unpaid principal balance into shares of Class A common stock of the Company (the “Conversion Shares”), with such conversion effective as of the closing of the Business Combination. The Conversion rate is $10/share. The entire portion of the principal amount of the Promissory Note not converted to Conversion Shares will be paid in cash to the holder at the closing of the Business Combination, subject to any applicable tax withholdings. The Conversion Shares will not be issued upon conversion of a Promissory Note unless such issuance and such conversion comply with all applicable provisions of law, including, but not limited to, the Securities Act and the applicable rules and regulations of The Nasdaq Stock Market and to the extent required by the Securities Act and the rules thereunder, delivery of the Conversion Shares will not occur until we have an effective registration statement on file with the Securities and Exchange Commission that covers the issuance of the Conversion Shares. Legal Matters Section 16 Claim On October 20, 2023, Plaintiff Robert Lowinger filed a complaint against Rocket One Capital, LLC (“Rocket One”), Michael Shvartsman, Bruce Garelick, and Digital World in the U.S. District Court for the Southern District of New York. According to the complaint, Digital World has been named as a party in the lawsuit because the Plaintiff is seeking relief for the benefit of Digital World. In the complaint, the Mr. Lowinger contends that, in 2021, Mr. Garelick and Rocket One were directors of Digital World and that they purchased securities of Digital World. Mr. Lowinger further alleges that within a six-month period from the date of their purchases, both Mr. Garelick and Rocket One sold securities in Digital World and realized profits from those sales. Additionally, Mr. Lowinger alleges that Mr. Shvartsman had a financial interest in the profits resulting from Rocket One’s purchases and sales of Digital World’s securities. According to Mr. Lowinger, under Section 16(b) of the Exchange Act (15 U.S.C. §78p(b)), Rocket One, Mr. Shvartsman, and Mr. Garelick are each required to disgorge certain trading profits to Digital World. On March 1, 2024, Digital World filed a motion to dismiss the claims against Digital World. On March 15, 2024, Mr. Lowinger filed an opposition to Digital World’s motion to dismiss. On March 22, 2024, Digital World filed a reply in support of its motion to dismiss. At this time, we express no opinion as to the likely outcome of this matter. TMTG Related Potential Dispute On July 30, 2021, an attorney for the Trump Organization, on behalf of President Trump, declared void ab initio a services agreement that had granted TMTG, among other things, extensive intellectual property and digital media rights related to President Trump for purposes of commercializing the various TMTG initiatives. Neither TMTG nor Digital World was a party to such agreement. On January 18, 2024, Digital World received a letter on behalf of a party to the services agreement. The letter contained certain assertions regarding: (i) board appointments with respect to TMTG; (ii) consent rights with respect to TMTG’s issuance of additional shares and classes of securities; and (iii) certain expenses. As support of such assertions, the letter enclosed a copy of the services agreement that had been declared void nearly two and a half years previously. Digital World will share the letter with the appropriate parties for further evaluation, and, as applicable following such evaluation, update the disclosures. United Atlantic Ventures On each of January 18, 2024 and February 9, 2024, Digital World received letters from counsel to UAV, a party to a services agreement (the “Services i.e. void ab initio On February 6, 2024, a representative of UAV sent a text message to a representative of a noteholder of TMTG suggesting that UAV might seek to enjoin the Business Combination. On February 9, 2024, TMTG received from counsel to UAV a letter similar to those received by Digital World, which also threatened TMTG with legal action regarding UAV’s alleged rights in TMTG, including, if necessary, an action to enjoin consummation of the Business Combination. TMTG has informed Digital World that it strongly disagrees with UAV’s assertion to any rights with respect to TMTG under the Services Agreement and that it believes TMTG has valid defenses to the potential claims by UAV. Related Party Loans On March 18, 2024, the Company drew down $625,000 under the Renatus Notes. TMTG has further informed Digital World that the capitalization of TMTG is based on TMTG’s corporate documents, including a resolution dated October 13, 2021 (the “TMTG Issuance Resolution”) and not the Services Agreement. On February 28, 2024, United Atlantic Ventures, LLC (“UAV”) filed a verified complaint against TMTG in the Court of Chancery of the State of Delaware (the “Court”) seeking declaratory and injunctive relief relating to the authorization, issuance and ownership of stock in TMTG, which was amended on March 4, 2024 to add TMTG’s directors as defendants. In addition to its complaint filed on February 28, 2024, UAV also filed a motion to expedite proceedings with the Court. On March 6, 2024, TMTG filed an opposition to UAV’s motion to expedite, and UAV filed its response on March 8, 2024. On March 9, 2024, the Court held a hearing to decide UAV’s motion to expedite proceedings. During the oral argument by the parties, TMTG advised the Court that it would agree that any additional shares of TMTG issued by TMTG prior to or upon the consummation of the Business Combination (other than any shares issued to satisfy obligations pursuant to TMTG convertible notes) would be placed in escrow pending a resolution of the dispute between the parties. Vice Chancellor Sam Glasscock acknowledged that if any claims remained after the stockholder vote scheduled to take place on March 22, 2024, on the proposed Business Combination (the “Stockholder Vote”), the Court would address those issues expeditiously. However, the Court advised that it would not be blocking the Stockholder Vote, which will proceed as currently scheduled. The Court further noted that the parties would contact the Court following the Stockholder Vote. Vice Chancellor Glasscock directed TMTG and UAV to submit a proposed stipulated escrow order by close of business on Wednesday, March 13, 2024. Bradford Cohen On January 22, 2024, TMTG received a letter from a counsel to Mr. Cohen, who purportedly represented President Donald J. Trump in connection with the Services Agreement, but was not a party thereto. The letter sought to inspect TMTG’s books and records pursuant to Delaware and Florida law and requested that TMTG preserve records for the last three years. TMTG responded via counsel on January 29, 2024. Since January 22, 2024, Mr. Cohen has reached out to TMTG on several occasions. Mr. Cohen asserts that the Services Agreement, declared void by Mr. Cohen’s ostensible client on July 30, 2021, confers certain rights upon Mr. Cohen with respect to the capitalization of TMTG. As the potential claims described above were recently asserted, and the potential disputes arising therefrom are in their early stages, neither TMTG nor Digital Word is able to assess the impact of such claims on their respective businesses and stockholders, or those of the Public TMTG. As a general matter, the defense of such potential claims may be costly and time consuming and could have a material adverse effect on the Company’s reputation and its existing stockholders. Patrick Orlando On February 27, 2024, Digital World and TMTG filed a lawsuit, captioned Digital World Acquisition Corp. v. ARC Global Investments II, LLC dollar penalty to Digital World and significant reputational harm and (b) Mr. Orlando’s continuous obstruction of Digital World’s merger with TMTG to extort various concessions that only benefit him and harm Digital World and its shareholders; and (v) damages for wrongfully asserted dominion over Digital World’s assets inconsistent with Digital World’s possessory rights over those assets. The complaint alleges impending violation of the Digital World Charter for failure to commit to issue the number of conversion shares to the Sponsor that the Sponsor claims it is owed upon the consummation of the Business Combination. The complaint claims a new conversion ratio of 1.78:1. Digital World believes the difference between Digital World’s calculation of the previously disclosed conversion ratio of 1.34:1 and the Sponsor’s now claimed ratio of 1.78:1 results from the Sponsor improperly taking into account in its calculation currently outstanding derivative securities of Digital World neither issued in connection with the closing of the Business Combination nor in a financing transaction in connection with the Business Combination, as well as securities issuable to TMTG in the Business Combination, in each case, contrary to the terms of the Digital World Charter with respect to issuances requiring an adjustment to the conversion ratio applicable to the Class B common stock (collectively, the “Excluded Securities”). The lawsuit filed by the Sponsor seeks: (i) specific performance and damages for alleged breach of the Digital World Charter, (ii) a declaratory judgment that the Excluded Securities should be included in the calculation of the conversion ratio, (iii) a finding that the directors of Digital World breached their fiduciary duties, and (iv) a preliminary injunction to enjoin the Business Combination until Digital World “corrects” the conversion ratio. Digital World does not believe the Sponsor’s 1.78:1 conversion ratio and related claims are supported by the terms of the Digital World Charter. As a result, Digital World intends to vigorously defend its claims. In the event Digital World is unable to resolve the ongoing disputes with Mr. Orlando and the Sponsor, the resultant delay could introduce material risk to the Business Combination and could result in additional expenses, management diversion, and other related costs that could have a material adverse effect on the trading price of Digital World’s common stock. On February 29, 2024, ARC Global Investments II, LLC (“ARC”), Digital World’s sponsor, which is controlled by Mr. Patrick Orlando, Digital World’s former chairman of the board of directors (the “Board”) and chief executive officer and a current member of the Board, filed a lawsuit, captioned ARC Global Investments II, LLC v. Digital World Acquisition Corp., Eric Swider, Frank J. Andrews, Edward J. Preble and Jeffery A. Smith ) In addition to its complaint filed on February 29, 2024, ARC also filed a motion with the Chancery Court requesting that the case schedule be expedited to enable the Chancery Court to conduct an injunction hearing prior to the March 22, 2024 shareholder vote. On March 3, 2024, Digital World filed an opposition to ARC’s motion to expedite, and ARC filed a reply on March 4, 2024. On March 5, 2024, the Chancery Court held a hearing to decide ARC’s motion to expedite the case schedule, which was argued on Digital World’s behalf by Paul Hastings LLP partner, Brad Bondi. Following oral argument by the parties, the Vice Chancellor ruled that ARC’s motion was denied “insofar as the court will not hold a merits or injunction hearing before March 22, 2024.” The Chancery Court ruled that Digital World’s proposal to place disputed shares into an escrow account upon the closing of the Business Combination was sufficient to preclude a possibility of irreparable harm related to the conversion of ARC’s shares. Additionally, the Chancery Court ruled that Digital World’s public disclosures regarding the nature of ARC’s claims and possible conversion scenarios at the closing of the Business Combination further precluded a possibility of irreparable harm related to inadequate disclosure for purposes of the March 22, 2024 vote. In issuing its ruling, the Chancery Court ruled that by March 8, 2024, ARC and Digital World must confer and propose a schedule by which the Chancery Court may resolve the action within 150 days following the Business Combination. The Chancery Court also further ordered the parties to provide the court with a stipulation by March 8, 2024 regarding ARC’s ability to maintain standing over its claim following its vote in favor of the Business Combination. Additionally, the Chancery Court requested that the parties stipulate to the establishment of an escrow account for the placement of disputed shares following the Business Combination, to be held pending conclusion of the action. Finally, the Chancery Court requested that counsel for Digital World submit a letter to the Chancery Court by March 8, 2024 “addressing how this litigation will proceed alongside the Florida litigation” filed by Digital World on February 27, 2024 in the Circuit Court of Sarasota County, Florida. On March 5, 2024, in connection with the lawsuit captioned ARC Global Investments II, LLC v. Digital World Acquisition Corp., Eric Swider, Frank J. Andrews, Edward J. Preble and Jeffery A. Smith In connection with the Delaware Lawsuit, the Company informs its shareholders that it intends to apply a conversion ratio to all shares of Class B common stock such that ARC and the other Class B shareholders (the “Non-ARC Class B Shareholders”) would receive the same number of shares of common stock in the post- Business Combination company per Class B share. As such, upon the closing of the Business Combination and pending the Chancery Court’s ruling in, or a resolution by the parties of, the Delaware Lawsuit, the Company intends to issue into a separate escrow account shares of common stock in the post-Business Combination company to satisfy an increase in the conversion ratio with respect to the shares of Class B common stock previously held by the Non-ARC Class B Shareholders. As such, the shares to be deposited in escrow for the benefit of the Non-ARC Class B Shareholders will reflect the difference between the actual conversion ratio, determined by the Company’s board of directors upon closing of the Business Combination, and a conversion ratio of 2.00. On March 19, 2024, Digital World filed a lawsuit against ARC in New York state court alleging breach of contract and seeking injunctive relief. Digital World’s claims relate to an agreement between Digital World and ARC entered into in September 2021 (the “Letter Agreement”), whereby ARC promised to vote in favor of any merger agreement presented to Digital World’s shareholders for a vote. Digital World alleges that it has presented a merger agreement to its shareholders, but ARC has withheld its vote in favor of the merger, with the shareholder vote scheduled for March 22, 2024. Digital World’s suit seeks declaring ARC’s obligation to vote its shares in favor of the merger, per the Letter Agreement, and an order compelling ARC to specifically perform its obligations under the Letter Agreement. Digital World also seeks an award of consequential damages for breach of contract. No responsive pleadings have been filed. At this early juncture, we express no opinion as to the likely outcome of this matter. As previously disclosed, Digital World Acquisition Corp., a Delaware corporation (“Digital World”), DWAC Merger Sub Inc., a Delaware corporation (“Merger Sub”), Trump Media & Technology Group Corp., a Delaware corporation (“TMTG”), ARC Global Investments II, LLC, a Delaware limited liability company (“ARC”), in the capacity as the representative of the stockholders of Digital World (which has been replaced and succeeded by RejuveTotal LLC, a New Mexico limited liability company effective as of March 14, 2024), and TMTG’s General Counsel in his capacity as the representative of the stockholders of TMTG, entered into an Agreement and Plan of Merger, dated as of October 20, 2021 (as amended by the First Amendment to Agreement and Plan of Merger, dated May 11, 2022, the Second Amendment to Agreement and Plan of Merger, dated August 9, 2023, and the Third Amendment to Agreement and Plan of Merger, dated September 29, 2023, the “Merger Agreement”), pursuant to which, among other transactions, on March 25, 2024 (the “Closing Date”), Merger Sub merged with and into TMTG, with TMTG continuing as the surviving corporation and as a wholly owned subsidiary of Digital World (the “Business Combination”). In connection with the closing of the Business Combination, Digital World changed its name to “Trump Media & Technology Group Corp.” (sometimes referred to herein as “Public TMTG”) and TMTG changed its name to TMTG Sub Inc. On March 22, 2024, Digital World held a special meeting of its stockholders (the “Special Meeting”) in connection with the Business Combination. At the Special Meeting, Digital World stockholders voted to approve the Business Combination with TMTG and related proposals. Prior to the Special Meeting, holders of a total of 4,939 shares of Digital World Class A common stock, par value $0.0001, had validly elected to redeem their Digital World Class A common stock for cash at a price of approximately $10.92 per share in connection with the Special Meeting. Unless the context otherwise requires, “we,” “us,” “our” and the “Company” refer to Digital World and its consolidated subsidiaries prior to the Closing Date and Public TMTG and its consolidated subsidiaries following the Closing Date. All references herein to the “Board” refer to the board of directors of Digital World or Public TMTG, as applicable. Terms used but not defined herein, or for which definitions are not otherwise incorporated by reference herein, shall have the meaning given to such terms in the definitive final prospectus and definitive proxy statement, dated February 16, 2024 and as amended and supplemented pursuant to Rule 425 under the Securities Act (the “Proxy Statement/Prospectus”) and such definitions are incorporated herein by reference. As a result of, and in connection with, the Closing, among other things, (i) the second amendment and restatement to the amended and restated certificate of incorporation of Digital World (the “Amended Charter”) redesignated the outstanding shares of Class A common stock, par value $0.0001 per share, of Digital World (“Digital World Class A Common Stock”), as common stock, par value $0.0001 per share, of Trump Media & Technology Group Corp. (the “Public TMTG Common Stock”); (ii) Public TMTG redesignated the warrants underlying the Public Units as Trump Media & Technology Group Corp. Redeemable Warrants, each whole warrant exercisable for one share of Public TMTG Common Stock at an exercise price of $11.50 (“Public TMTG Warrants”); (iii) Public TMTG separated each unit of Digital World outstanding prior to the Closing into one share of Public TMTG Common Stock and one-half one-half ARC Global Investments II, LLC v. Digital World Acquisition Corp., Eric Swider, Frank J. Andrews, Edward J. Preble and Jeffery A. Smith Furthermore, as a result of, and in connection with the Closing, (i) immediately prior to the Effective Time the TMTG Convertible Notes were converted into TMTG Common Stock and all of the outstanding TMTG Common Stock that was issued upon such conversion was automatically cancelled and ceased to exist; (ii) Digital World issued an aggregate of 3,424,510 Public TMTG private warrants and 1,709,145 shares of Public TMTG Common Stock to holders to Digital World Convertible Notes; (iii) Public TMTG issued an aggregate of 95,354,534 shares of Public TMTG Common Stock to TMTG securityholders as of immediately prior to the Effective Time (which amount includes (x) 7,854,534 shares of Public TMTG Common Stock to the former holders of the TMTG Convertible Notes and (y) 614,640 shares of Public TMTG Common Stock deposited into escrow pursuant to indemnification provisions under the Merger Agreement); and (iv) 4,667,033 shares of Public TMTG Common Stock were issued to Odyssey Transfer and Trust Company, a Minnesota corporation, as escrow agent (the “Escrow Agent”) pursuant to the Disputed Shares Escrow Agreements (as defined below). Immediately after giving effect to the Business Combination, there were 136,700,583 issued and outstanding shares of Public TMTG Common Stock, which includes common stock held by Digital World stockholders, ARC, former TMTG stockholders, shares issued upon conversion of TMTG Convertible Notes and shares issued upon conversion of Digital World Convertible Notes, but does not include the underlying shares of Public TMTG Common Stock that may be issued upon conversion of the Digital World Alternative Financing Notes, Post-IPO Warrants or the Public Warrants, shares held pursuant to the Disputed Shares Escrow Agreements or any awards that may be issued under the Equity Incentive Plan. Additionally, Digital World instructed Odyssey Transfer and Trust Company, a Minnesota corporation, acting in its capacity as transfer agent (the “Transfer Agent”) to reserve up to (i) 46,250,000 shares of Public TMTG Common Stock in connection with future issuances resulting from the underlying shares of Public TMTG Common Stock that may be issued upon conversion of the Digital World Alternative Financing Notes, and (ii) 3,125,000 private warrants issuable in connection with the Digital World Alternative Financing Notes. Finally, also on March 25, 2024, immediately following the consummation of the Business Combination, as disclosed by Digital World on February 8, 2024, the final drawdown for $40,000,000 (the “Final Drawdown”) in convertible promissory notes (the “Convertible Notes”) was issued to those certain institutional investors (“Accredited Investors”), pursuant to the note purchase agreement entered into by and between Digital World and the Accredited Investors on February 8, 2024 (the “Note Purchase Agreement”). The Final Drawdown was deposited into a control account and may only be released to Public TMTG pursuant to the terms of the Note Purchase Agreement and the Convertible Notes. As of the Closing Date, (i) President Donald J. Trump beneficially held approximately 57.3% of the outstanding shares of Public TMTG Common Stock and (ii) the public stockholders of Public TMTG held approximately 21.9% of the outstanding shares of Public TMTG Common Stock. On March 26, 2024, the Company closed the merger with TMTG. |
DESCRIPTION OF BUSINESS
DESCRIPTION OF BUSINESS | 12 Months Ended |
Dec. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
DESCRIPTION OF BUSINESS | NOTE 1 - DESCRIPTION OF BUSINESS The accompanying financial statements include the historical accounts of Trump Media & Technology Group Corp. (“TMTG”), which changed its name from Trump Media Group Corp. in October 2021. The mission of TMTG is to end Big Tech's assault on free speech by opening up the Internet and giving people their voices back. TMTG operates Truth Social, a social media platform established as a safe harbor for free expression amid increasingly harsh censorship by Big Tech corporations. |
SIGNIFICANT ACCOUNTING POLICIES
SIGNIFICANT ACCOUNTING POLICIES AND PRACTICES | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
SIGNIFICANT ACCOUNTING POLICIES AND PRACTICES | NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES AND PRACTICES Basis of Presentation The accompanying financial statements are presented in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). Liquidity and going concern TMTG commenced operations on February 8, 2021 and began the initial launch of its social media platform in the first quarter of 2022. The business used cash from operations of $37,732,000 from February 8, 2021 (inception) through December 31, 2023 funded by $40,460,000 of proceeds from the issuance of convertible promissory notes (net of repayments). The term of these notes range between 18 and 36 months; however, each has an accelerated retirement feature in the event of default by the Company. Interest will be accrued between 5% and 10% annually based on the simple interest method (365 days per year). In October of 2021, TMTG entered into a definitive merger agreement with a special purpose acquisition corporation (SPAC), Digital World Acquisition Corp. (DWAC, or Digital World), a Delaware corporation. The companies expect to consummate the merger in the coming quarters, combining TMTG’s operations with DWAC’s balance sheet (i.e. cash in trust net of redemptions and fees). The parties to the agreement intend to effect the merger of DWAC and its subsidiaries with and into TMTG, with TMTG continuing as the surviving entity. As a result of which, all of the issued and outstanding capital stock of TMTG shall no longer be outstanding and shall automatically be cancelled and shall cease to exist, in exchange for the right for each of TMTG’s stockholders to receive its pro rata share of the stockholder merger consideration subject to the conditions set forth in the merger agreement and in accordance with the applicable provisions of the Delaware General Corporation Law. The agreement was amended on May 11, 2022; August 9, 2023; and September 29, 2023. On May 16, 2022, in furtherance of TMTG and DWAC’s proposed merger, DWAC filed with the SEC a registration statement on form S-4. As publicly disclosed by DWAC in an 8-K filing, “on June 27, 2022, TMTG received a subpoena from the SEC seeking documents relating to, among other things, Digital World and other potential counterparties for a business transaction involving TMTG. Digital World has also been informed that on December 30, 2022, TMTG was served with a subpoena, issued by a federal grand jury sitting in the Southern District of New York, seeking a subset of the same or similar documents demanded in subpoenas to Digital World and its directors. Certain current and former TMTG personnel have also received individual grand jury subpoenas.” As publicly disclosed by TMTG in a press release, “TMTG has cooperated fully with inquiries into our planned merger and … complied with subpoenas we've received, none of which were directed at the company's Chairman or CEO.” As detailed below, on information and belief, TMTG is not the target of any SEC or Department of Justice (DOJ) enforcement action. On September 22, 2022, Mr. W. Moss resigned as director of the Company. Based on information subsequently provided to the Company, the Company understands that Mr. Moss’s resignation did not result from any disagreement with the Company concerning any matter relating to the Company’s operations, policies or practices. As noted below, Mr. Moss was replaced by Mr. D. Scavino during February 2023. Mr D. Scavino continues to consult to the Company. This arrangement is similar to the consulting agreement with Mr. K. Patel, also a current board member. As of December 31, 2022, Donald J. Trump (“DJT”) had the unilateral right to terminate the License Agreement, as amended, between and among DJT, TMTG, and DTTM Operations, LLC, pursuant to which TMTG obtained certain rights related to the name, image, and likeness of DJT. On October 30, 2023, DJT verbally affirmed that, notwithstanding his contractual right to do so, he would not terminate the License Agreement prior to the later of (a) December 31, 2023, and (b) any other date to which TMTG and DWAC mutually agree to extend the time to consummate their proposed merger. On February 14, 2023, a trademark for “Truth Social” in classes 21 and 25 was registered with the U.S. Patent and Trademark Office (“USPTO”) by T Media Tech LLC, a wholly-owned subsidiary of TMTG. Trademark applications for “Truth Social” in classes 9 and 42; for “RETRUTH” in classes 9, 35, 38, 41, 42, and 45; “TRUTHSOCIAL” in classes 9, 35, 38, 41, 42, and 45; and “TRUTHPLUS” in classes 9, 35, 38, 41, and 42 are the subject of suspension notices received from USPTO on October 24, 2022; January 13, 2023; February 14, 2023; and February 17, 2023, respectively. Several additional trademark applications remain pending, but have not been the subject of adverse action by USPTO. On February 16, 2023, TMTG’s Board of Directors held a special meeting. At the meeting, the board appointed D. Scavino to fill the board vacancy created by the resignation of W. Moss and ratified certain past corporate actions pursuant to Delaware law. The board also authorized an increase in TMTG’s share count to 1,000,000,000 shares. On March 1, 2023, TMTG eliminated several positions. This action followed a review of all departments, most significantly impacted TMTG’s streaming video on demand (“SVOD”) and infrastructure teams, and was primarily attributable to unprecedented obstruction of TMTG’s planned merger with DWAC by the SEC—and concomitant delay in TMTG’s access to capital that TMTG would receive upon the successful completion of such merger. All former employees whose positions were eliminated in March 2023 signed separation agreements. Separately, a former employee whose employment was terminated in June 2022 (and who had declined at that time to sign a separation agreement), filed a wage claim with the New Hampshire Department of Labor on or about June 1, 2023. The former employee agreed to dismiss the claim pursuant to a settlement agreement executed on June 29, 2023, pursuant to which TMTG paid the former employee $25,000. On April 3, 2023, TMTG CEO Devin Nunes — in his personal capacity — sued several defendants, including a former TMTG employee, in Florida state court. On December 15, 2023, Nunes voluntarily dismissed the lawsuit, without prejudice. TMTG was not a party to that proceeding. The first of TMTG’s convertible promissory notes reached maturity in May 2023 As of the date hereof, there are no outstanding demands for repayment of any of TMTG’s convertible promissory notes that have reached their respective maturity dates. Events related to TMTG’s promissory notes include the following: • A broker’s note (which has a face value of $140,000, and is associated with a note with a face value of $2,000,000) reached its maturity date on May 7, 2023. Such note was amended and restated to clarify certain terms on October 26, 2023. • A note (with a face value of $2,000,000) reached maturity on May 19, 2023. TMTG and the lender subsequently agreed to extend the maturity date of such note until May 19, 2024, and executed an amended and restated note effective June 6, 2023. A related broker’s note (with a face value of $67,000) reached its maturity date on May 26, 2023. • On June 26, 2023, TMTG received a “demand for payment” from a lender whose promissory note with a face value of $2,000,000 reached its maturity date on June 23, 2023. On July 7, 2023, the lender withdrew its demand and agreed to extend the term of its promissory note and an additional loan in the principal amount of $6,000,000, for an additional twelve months until June 23, 2024 and August 18, 2024, respectively. TMTG and the lender subsequently executed a letter, dated August 10, 2023, to document such extension. • A lender whose note (with a face value of $4,200,000) reaches its maturity date on December 24, 2024, asserted a “Most Favored Nation” covenant (“MFN”) in the note has the effect of accelerating the maturity date of such note—and, pursuant to such assertion, issued a demand for payment on June 30, 2023. On July 7, 2023, the lender further asserted that TMTG had defaulted on its obligations under the note that reaches its maturity date on December 24, 2024, and under a second note (with a face value of $2,000,000) that reaches its maturity date on August 3, 2023. Also on July 7, 2023, counsel for TMTG sent a letter for the lender denying each of the foregoing assertions. On July 21, 2023, counsel for TMTG reaffirmed that no default had occurred. The second note (with a face value of $2,000,000) reached its maturity date on August 3, 2023. On December 21, 2023, TMTG agreed to repay $1,000,000 of principal on the second note within five • A note (with a face value of $500,000) reached its maturity date on July 24, 2023. On December 29, 2023, TMTG and the lender mutually agreed to increase the principal (by an additional $500,000, for a total of $1,000,000) and extend the term of such note until June 29, 2025. • On August 23, 2023, TMTG and a new lender executed a promissory note (with a face value of $2,500,000). • On November 24, 2023, TMTG and a lender executed a promissory note (with a face value of $500,000). • Eight of TMTG’s other notes, with an aggregate face value of $14,293,000, reached their respective maturity dates between June 30, 2023, and November 23, 2023. On May 20, 2023, TMTG filed suit in Florida state court against the Washington Post Washington Post Washington Post Washington Post On or about June 23, 2023 and December 20, 2023 were potential expiry dates of an exclusivity provision of the License Agreement which generally requires that DJT channel his personal social media communications to TMTG’s Truth Social platform six hours before posting the same communications on a non-TMTG social media platform. Because neither TMTG nor DJT terminated this provision, the exclusivity provisions has twice automatically renewed for an additional 180 days. On June 29, 2023, three individuals — including a former DWAC director — were arrested and criminally charged by DOJ in connection with alleged insider trading of DWAC securities. On July 20, 2023, all three defendants pleaded not guilty. These individuals have no affiliation with TMTG and — on information and belief — TMTG is not the target of any DOJ enforcement action. On July 3, 2023, DWAC publicly disclosed an agreement in principle with SEC staff to resolve an ongoing SEC enforcement inquiry into DWAC. On July 20, 2023, SEC approved the settlement. TMTG is not a party to such agreement or — on information and belief — the target of any SEC enforcement action. Effective July 14, 2023, TMTG’s head of engineering resigned to pursue other opportunities. On August 9, 2023, TMTG and DWAC executed a second amendment to their Merger Agreement. On the same date, the terms of such amendment were publicly disclosed by DWAC in an SEC filing. On September 5, 2023, DWAC held a special meeting of its stockholders, at which DWAC’s stockholders approved an amendment extending, upon the approval by DWAC’s board of directors, the date by which the DWAC has to consummate an initial business combination (including its planned merger with TMTG) for an aggregate of 12 additional months (i.e. from September 8, 2023 up to September 8, 2024) or such earlier date as determined by the DWAC board. On September 29, 2023, TMTG and DWAC finalized a third amendment to their Merger Agreement. On October 2, 2023, the terms of such amendment were publicly disclosed by DWAC in an SEC filing. On October 30, 2023, TMTG and Rumble executed a minimum guarantee advertising publisher agreement (the “Minimum Guarantee Rumble Agreement”), which replaced a previous agreement with Rumble. Under the Minimum Guarantee Rumble Agreement, 70% of the total aggregate gross revenues from the sale of Ad Units are allocated to TMTG, and the Ad Units shall comprise at least 85% of the aggregate number of paid advertisements directly into Truth Social feeds by TMTG each month. On November 13, 2023, in furtherance of TMTG and DWAC’s proposed merger, DWAC filed with the SEC an amended registration statement on form S-4. On November 20, 2023, in connection with reporting about TMTG’s financial results, TMTG filed a lawsuit for defamation and injurious falsehood in Florida state court against 20 media defendants. TMTG and one defendant — Nexstar Media, Inc., which owns the Hill — subsequently agreed to resolve their dispute outside of court, to both parties’ mutual satisfaction. In connection with such resolution, the Hill retracted a November 13, 2023 article, and TMTG’s lawsuit was dismissed as to Nexstar on December 4, 2023. All other terms of TMTG’s settlement with Nexstar remain confidential, and TMTG’s lawsuit is proceeding against all other defendants. On December 22, 2023, in furtherance of TMTG and DWAC’s proposed merger, DWAC filed with the SEC a second amendment to its registration statement on form S-4. During the 12 months following the signing of these financial statements, management has substantial doubt that the Company will have sufficient funds to meet its liabilities as they fall due, including liabilities related to promissory notes previously issued by the Company. Sufficient funds during this period are directly conditional on completion of the merger by the September 8, 2024 dissolution date. Bridge funding during the period leading up to the merger ranging between $5 million and $60 million is required depending on convertible note maturity dates, and if note holders decide to extend or call their respective outstanding notes. Management is currently in discussions with certain existing note holders regarding options for extension of maturity dates. The Company believes that it may be difficult to raise additional funds through traditional financing sources in the absence of continued material progress toward completing its merger with DWAC. Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Significant estimates and assumptions reflected in the financial statements relate to and include, but are not limited to, the valuation of convertible promissory notes and derivative liabilities. Principles of Consolidation The consolidated financial statements include the financial statements of the Company and its majority owned subsidiaries and have been prepared in accordance with Accounting Principles Generally Accepted in the United States (“GAAP”). All intercompany transactions have been eliminated. Cash Cash represents bank accounts and demand deposits held at financial institutions. Cash is held at major financial institutions and are subject to credit risk to the extent those balances exceed applicable Federal Deposit Insurance Corporation (FDIC) limitations. No losses were incurred for those balances exceeding the limitations. Prepaid expenses and other current assets Other receivables consist of prepaid rent, insurance and prepaid data costs. Property, Plant and Equipment Property, plant and equipment are recorded at cost less accumulated depreciation. Depreciation is calculated on the straight-line basis over the estimated useful lives of the assets. Useful lives for property, plant and equipment are as follows: Asset Type Range Furniture and computer equipment 2 - 5 years Expenditures which substantially increase value or extend useful lives are capitalized. Expenditures for maintenance and repairs are charged to operations as incurred. Gains and losses are recorded on the disposition or retirement of property, plant and equipment based on the net book value and any proceeds received. Long-lived fixed assets held and used are reviewed for impairment when events or changes in business circumstances indicate that the carrying amount of the assets may not be fully recoverable. Circumstances such as the discontinuation of a line of service, a sudden or consistent decline in the sales forecast for a product, changes in technology or in the way an asset is being used, a history of operating or cash flow losses or an adverse change in legal factors or in TMTG climate, among others, may trigger an impairment review. If such indicators are present, TMTG performs undiscounted cash flow analyses to determine if impairment exists. The asset value would be deemed impaired if the undiscounted cash flows generated did not exceed the carrying value of the asset. If impairment is determined to exist, any related impairment loss is calculated based on fair value. There were no triggering events identified that necessitated an impairment test over property, plant and equipment. Assets to be disposed of are reported at the lower of the carrying amount or fair value less costs to sell. See Note 4 - Property, plant and equipment for further detail. Capitalized software costs The Company capitalizes costs related to its major service products and certain projects for internal use incurred during the application development stage. Costs related to preliminary project activities and post implementation activities are expensed as incurred. Internal-use software is amortized on a straight-line basis over its estimated useful life, which is generally five Revenue Recognition The Company records revenue in accordance with ASC 606. The Company determines the amount of revenue to be recognized through application of the following steps- Identification of the contract, or contracts with a customer; - Identification of the performance obligations in the contract; - Determination of the transaction price; - Allocation of the transaction price to the performance obligations in the contract; and - Recognition of revenue when or as the Company satisfies the performance obligations. The Company entered into advertising contractual arrangements with advertising manager service companies. The advertising manager service companies provide advertising services through their Ad Manager Service Platform on the Truth Social website to customers. The Company determines the number of Ad Units available on its Truth Social website. The advertising manager service companies have sole discretion over the terms of the auction and all payments and actions associated therewith. Prices for the Ad Units are set by an auction operated and managed by these companies. The Company has the right to block specific advertisers at its sole reasonable discretion, consistent with applicable laws, rules, regulations, statutes, and ordinances. The Company is an agent in these arrangements, and recognizes revenue for its share in exchange for arranging for the specified advertising to be provided by the advertising manager service companies. The advertising revenues are recognized in the period when the advertising services are provided. Cost of revenue Cost of revenue primarily encompasses expenses associated with generating advertising revenue. These costs are determined by allocating staff direct and indirect costs proportionately, including depreciation, based on the time spent managing the agency relationships with external vendors. These costs are confined to activities related to coordinating with these third-party vendors as the third-party vendors are responsible to control and facilitate the delivery of advertising services. Research and development Research and development expenses consist primarily of personnel-related costs, including salaries, benefits and stock-based compensation, for our engineers and other employees engaged in the research and development of our products and services. In addition, research and development expenses include amortization of acquired intangible assets, allocated facilities costs, and other supporting overhead costs. Marketing and sales Sales and marketing expenses consist primarily of personnel-related costs, including salaries, commissions, benefits and stock-based compensation for our employees engaged in sales, sales support, business development and media, marketing, and customer service functions. In addition, marketing and sales-related expenses also include advertising costs, market research, trade shows, branding, marketing, public relations costs, amortization of acquired intangible assets, allocated facilities costs, and other supporting overhead costs. Selling, general and administrative expenses General and administrative expenses consist primarily of personnel-related costs, including salaries, benefits, and stock-based compensation for our executive, finance, legal, information technology, corporate communications, human resources, and other administrative employees. In addition, general and administrative expenses include fees and costs for professional services (including third-party consulting, legal, and accounting services), facilities costs, and other supporting overhead costs that are not allocated to other departments. Income taxes Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. The Company recognizes the effect of income tax positions only if those positions are more likely than not of being sustained. Income tax amounts are therefore recognized for all situations where the likelihood of realization is greater than 50%. Changes in recognition or measurement are reflected in income tax expense in the period in which the change in judgment occurs. Accrued interest expense and penalties related to uncertain tax positions are recorded in Income Tax Expense. See Note 6 - Income Taxes. Commitments and contingencies Liabilities for loss contingencies arising from claims, assessments, litigation, fines, and penalties and other sources are recorded when it is probable that a liability has been incurred and the amount can be reasonably estimated. The Company has no liabilities for loss contingencies. Recently issued accounting standards In December 2019, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2019-12, Simplifying the Accounting for Income Taxes (Topic 740). ASU 2019-12 removes certain exceptions for performing intraperiod tax allocations, recognizing deferred taxes for investments, and calculating income taxes in interim periods. The guidance also simplifies the accounting for franchise taxes, transactions that result in a step-up in the tax basis of goodwill, and the effect of enacted changes in tax laws or rates in interim periods. The Company adopted ASU 2019-12 in the first quarter of 2021 and the adoption had no material impact to the Company’s consolidated financial statements. In February 2016, the FASB issued Accounting Standards Update No. 2016-02, “Leases (Topic 842)” (“ASU 2016-02”), which requires lessees to record most leases on their balance sheets but recognize the expenses on their statements of operations in a manner similar to current accounting rules. ASU 2016-02 states that a lessee would recognize a lease liability for the obligation to make lease payments and a right-to-use asset for the right to use the underlying asset for the lease term. The new standard is effective for interim and annual periods beginning after December 15, 2021 (i.e. calendar periods beginning on January 1, 2022) on a modified retrospective basis. All leases are operating leases. See Note 5, “Leases.” All leases other than those disclosed as Right-to-Use leases are short term in nature with a term less than 12 months. |
ACQUISITION
ACQUISITION | 12 Months Ended |
Dec. 31, 2023 | |
ACQUISITION [Abstract] | |
ACQUISITION | NOTE 3 - ACQUISITION In October 2021, the Company acquired 100% of the ownership in T Media Tech LLC for a nominal value. The results of T Media Tech LLC since October 13, 2021 are included in the Company’s Consolidated Statement of Operations. Pro forma results have not been presented as the acquisition is not considered individually significant to the consolidated results of the Company. |
PROPERTY, PLANT AND EQUIPMENT
PROPERTY, PLANT AND EQUIPMENT | 12 Months Ended |
Dec. 31, 2023 | |
PROPERTY, PLANT AND EQUIPMENT [Abstract] | |
PROPERTY, PLANT AND EQUIPMENT | NOTE 4 - PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment consist of the following: (in thousands) December 31, 2023 December 31, 2022 Property, plant and equipment Furniture and equipment $ 34.5 $ 34.5 Computer equipment 120.8 118.6 Accumulated depreciation (126.1) (65.7) Property, plant and equipment, net $ 29.2 $ 87.4 |
LEASES
LEASES | 12 Months Ended |
Dec. 31, 2023 | |
LEASES [Abstract] | |
LEASES | NOTE 5 - LEASES As of December 31, 2023, minimum commitments under the Company leases, were as follows: (in thousands) December 31, 2023 December 31, 2022 Next year $193.5 $201.3 Year 2-5 217.1 397.5 $410.6 $598.8 |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | NOTE 6 - INCOME TAXES The following reconciles the total income tax benefit, based on the U.S. Federal statutory income tax rate of 21% for the twelve month period ended December 31, 2023, with TMTG’s recognized income tax expense: Twelve Month Period Ended (in thousands) December 31, 2023 December 31, 2022 U.S. Statutory federal income tax expense/(benefit) (12,219.7) 10,610.0 Permanent items State income taxes, net of federal effect 1.1 2,633.1 Non-deductible expenses 334.6 3.0 Change in valuation allowance 11,885.1 (13,245.9) Income tax expense 1.1 0.2 The tax effects of temporary differences that give rise to deferred tax assets and deferred tax liabilities as of December 31, 2023 are as follows: (in thousands) December 31, 2023 December 31, 2022 Deferred tax assets Software and other claimed assets 360.6 $ 1,810.5 Net operating loss (NOL) 9,474.7 4,478.1 Convertible promissory notes and derivative liability 3,853.2 — Total deferred tax assets 13,688.5 6,288.6 Deferred tax liabilities Property, plant & equipment (6.2) (18.2) Convertible promissory notes and derivative liability — (4,473.2) Total deferred tax liabilities (6.2) (4,491.4) Net deferred tax assets 13,682.3 1,797.2 Valuation allowance (13,682.3) (1,797.2) Net deferred tax, net of valuation allowance — — As of December 31, 2023, TMTG had US Federal net operating loss carryforwards (“NOLs”) with a tax benefit of $9,474,744 (December 31, 2022: $4,478,110). |
OTHER INCOME - RELATED PARTY, R
OTHER INCOME - RELATED PARTY, RELATED PARTY RECEIVABLE AND PAYABLE | 12 Months Ended |
Dec. 31, 2023 | |
Related Party Transactions [Abstract] | |
OTHER INCOME - RELATED PARTY, RELATED PARTY RECEIVABLE AND PAYABLE | NOTE 7 - OTHER INCOME – RELATED PARTY, RELATED PARTY RECEIVABLE AND PAYABLE There was no other income – related party sales for the period. The other income – related party in 2021 amounted to $2,123,296 related to a licensing agreement with one of the Stockholders. At the end of fourth quarter 2021, $23,296 was still outstanding. TMTG was assigned net revenue from a series of public appearances by President Trump in accordance with a licensing arrangement. The income was valued on a dollar-for-dollar basis with the underlying sales. TMTG did not incur any costs in connection with such assigned sales. In terms of the agreement, these sales were made in the fourth quarter of 2021 and final payment was made to TMTG, in accordance with the license agreement, in February of 2022. Related party payable is operational funding of $95,518 received from two of the Stockholders during the first quarter of 2021, which was repaid in May of 2022. The operational funding carried no specific repayment terms or interest charges. |
CONVERTIBLE PROMISSORY NOTES
CONVERTIBLE PROMISSORY NOTES | 12 Months Ended |
Dec. 31, 2023 | |
CONVERTIBLE PROMISSORY NOTES [Abstract] | |
CONVERTIBLE PROMISSORY NOTES | NOTE 8 - CONVERTIBLE PROMISSORY NOTES Notes 1 to 7 are Convertible Promissory Notes issued from May 2021 through October 2021 with a cumulative face value of $5,340,000, maturity of 24 months from each respective issuance date and interest will be accrued at 5% based on the simple interest method (365 days year) for each note. Each of Notes 1-7 contemplates multiple plausible outcomes that include conversion upon a Qualified SPAC Business Combination (“SPAC”) and at least one of the following conversion triggers: Qualified Initial Public Offering (“IPO”), private equity transaction and/or change of control. All outstanding principal of these Notes, together with all accrued but unpaid interest on such principal, will convert to equity. The number of shares of Company stock to be issued to the Lender upon conversion of the Notes in the event of a completed SPAC transaction will be the number of shares of the Company Stock (rounded to the nearest whole share) equal to the quotient of: (a) the principal plus accrued interest on the Notes then outstanding, divided by $4.00. In other, non-SPAC conversion scenarios, the number of shares of Company stock to be issued to the Lender upon conversion of the Notes is variable based on the application of an automatic discounted share-settlement feature. For Notes 1 and 2, the number of shares of Company stock to be issued to the Lender upon a non-SPAC conversion event will be the number of shares of Company stock (rounded to the nearest whole share) equal to the quotient of: (a) the principal plus accrued interest on the Notes then outstanding (b) divided by 40% of the initial public offering price per share of a qualified initial public offering. For Notes 3-7, the number of shares of Company stock to be issued to the Lender upon a non-SPAC conversion event will be the number of shares of Company stock (rounded to the nearest whole share) equal to the quotient of: (a) the principal plus accrued interest on the Notes then outstanding (b) divided by 40% of (i) the initial public offering price per share of a qualified initial public offering, (ii) the price per share as determined by the valuation of the Company in connection with a qualified private equity raise, or (iii) in the case of a change of control, the price per share determined in accordance with the Company’s then current fair value determined by an independent valuation firm. Notes 8 to 12 are Convertible Promissory Notes issued from November 2021 through December 2021 with a cumulative face value of $17,500,000, maturity of between 18 months and 36 months and interest will be accrued at a range between 5% and 10% based on the simple interest method (365 days year) for each note. Notes 8 to 12 are convertible simultaneously with the completion of a Qualified SPAC Business Combination (“SPAC”) merger agreement or Qualified Initial Public Offering (“IPO”). All outstanding principle of these Notes, together with all accrued but unpaid interest on such principal, shall convert to equity. The number of shares of Company stock to be issued to the Lender upon conversion of the Notes shall be the number of shares of the Company Stock (rounded to the nearest whole share) equal to the quotient of: (a) the principal plus accrued interest on the Notes then outstanding (b) divided by either US$25, US$21 or US$20 subject to the respective conditions of the individual Notes; provided, however, in the event that the stock price quoted for the Company on NASDAQ or The New York Stock Exchange (as applicable) at the time of the closing of the Qualified SPAC Business Combination (the “TMTG Stock Price”) is less than either $50 per share, $42 per share, $40 per share subject to the respective conditions of the individual Notes, then the Conversion Price shall be reset to 50% of the then current TMTG Stock Price subject to a floor of $10 per share. Notes 13 to 19 are Convertible Promissory Notes issued from January 2022 through August 23, 2023 with a cumulative face value of $17,860,000, maturity of 18 months and interest will be accrued at a range between 5% and 10% based on the simple interest method (365 days year) for each note. Notes 13 to 19 are convertible simultaneously with the completion of a Qualified SPAC Business Combination (“SPAC”) merger agreement or Qualified Initial Public Offering (“IPO”). All outstanding principle of these Notes, together with all accrued but unpaid interest on such principal, shall convert to equity. The number of shares of Company stock to be issued to the Lender upon conversion of the Notes shall be the number of shares of the Company Stock (rounded to the nearest whole share) equal to the quotient of: (a) the principal plus accrued interest on the Notes then outstanding (b) divided by either US$25 or US$21 subject to the respective conditions of the individual. Note 20 is a Convertible Promissory Note issued from November 2023 through May 24, 2025 with a cumulative face value of $500,000.00, maturity of 18 months and interest will be accrued at 10% based on the simple interest method (365 days year) for each note. Note 20 is convertible with the completion of a Qualified SPAC Business Combination (“SPAC”) merger agreement or Qualified Initial Public Offering (“IPO”). The outstanding principle of the Note, accrued but unpaid interest on such principal, shall convert to equity. The number of shares of Company stock to be issued to the Lender upon conversion of the Notes shall be the number of shares of the Company Stock (rounded to the nearest whole share) equal to the quotient of: (a) the principal plus accrued interest on the Note then outstanding (b) divided by either US$25 or US$21 subject to the respective conditions of the individual Notes; provided, however, in the event that the stock price quoted for the Company on NASDAQ or The New York Stock Exchange (as applicable) at the time of the closing of the Qualified SPAC Business Combination (the “TMTG Stock Price”) is less than either $50 per share or $42 per share subject to the respective conditions of the individual Notes, then the Conversion Price shall be reset to 50% of the then current TMTG Stock Price subject to a floor of $10 per share. The Company determined the automatic discounted share-settlement feature upon certain events (e.g., SPAC, IPO, change in control, etc.) is an embedded derivative requiring bifurcation accounting as (1) the feature is not clearly and closely related to the debt host and (2) the feature meets the definition of a derivative under ASC 815 (Derivative and Hedging). Subsequent changes to the fair value of the embedded derivative flows through the income statement. The Debt (net of initial debt discount and any related debt issuance costs recorded) is accreted using the effective interest rate method under ASC 835 (Interest) until maturity. The Convertible Promissory Notes (debt host) are not subject to Subtopic 480-10. (in thousands) December 31, 2023 December 31, 2022 Convertible Promissory Notes Notes 1 to 7 $ 5,340.0 $ 5,340.0 Notes 8 to 12 17,500.0 17,500.0 Notes 13 to 19 17,860.0 15,360.0 40,700.0 38,200.0 Debt Issuance costs (240.0) (240.0) Nominal value of Convertible Promissory Notes 40,460.0 37,960.0 Derivative liability Component 37,234.8 (36,528.7) Liability component at date of issue 3,225.2 1,431.3 Interest charged 42,121.7 2,692.6 Interest paid — — Total Liability component $ 45,347.0 $ 4,123.9 Less: Short-term liability component (42,415.5) (4,123.9) Liability component at December 31, 2023 and December 31, 2022 $ 2,931.5 $ — Embedded feature Component Derivative liability Component $ 37,234.8 $ 36,528.7 Change in fair value of Embedded derivative (18,831.9) (21,623.4) Total Derivative Liability Component 18,402.9 14,905.3 Less: Short-term Derivative Liability Component (17,282.5) (14,905.3) Derivative Liability Component $ 1,120.3 $ — The interest charged for the period is calculated by applying the effective interest rate range of between 16.3% to 100%+ to the liability component for the period since the respective notes were issued. |
FAIR VALUE MEASUREMENT
FAIR VALUE MEASUREMENT | 12 Months Ended |
Dec. 31, 2023 | |
FAIR VALUE MEASUREMENT [Abstract] | |
FAIR VALUE MEASUREMENT | NOTE 9 - FAIR VALUE MEASUREMENT The Company uses 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. All of the Company’s cash is classified within Level 2 because the Company’s cash is valued using pricing sources and models utilizing observable market inputs. The Convertible promissory notes are classified as Level 3 due to significant unobservable inputs. As of December 31, 2023 (in thousands) Quoted prices in active markets for identical assets (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) Cash Cash 2,572.7 Current Liabilities Convertible promissory notes 42,415.5 Derivative liability 17,282.5 Liabilities Convertible promissory notes 2,931.5 Derivative liability 1,120.3 As of December 31, 2022 (in thousands) Quoted prices in active markets for identical assets (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) Cash Cash 9,808.4 Liabilities Convertible promissory notes 4,123.9 Derivative liability 14,905.3 The estimated fair value of the conversion feature of the Derivative liability is based on traditional valuation methods including Black-Scholes option pricing models and Monte Carlo simulations. |
STOCKHOLDERS' EQUITY
STOCKHOLDERS' EQUITY | 12 Months Ended |
Dec. 31, 2023 | |
STOCKHOLDERS' DEFICIT | |
STOCKHOLDERS' EQUITY | NOTE 10 - STOCKHOLDERS’ EQUITY At inception, the total number of shares of all classes of capital stock that the Company was authorized to issue was 11,000 shares of Company Stock, each having a par value of $0.000001, of which 10,000 shares were issued and outstanding, and an additional 1,000 shares were authorized for issuance in connection with the Company’s Equity Incentive Plan. In October 2021, the total number of shares of Common Stock authorized was increased to 110,000,000, each having a par value of $0.000001. Each share of the Company’s Common Stock, automatically and without any action on the part of the Company or any respective holders thereof, was reclassified into ten thousand (10,000) shares of the Company’s Common Stock, $0.000001 par value per share, resulting in 110,000,000 shares authorized, of which 100,000,000 shares were issued and outstanding, and an additional 7,500,000 shares were authorized for issuance in connection with the Company’s Equity Incentive Plan. In January 2022, the total number of shares of the Company’s Common Stock authorized was increased to 120,000,000, each having a par value of $0.000001, of which 100,000,000 shares were issued and outstanding, and an additional 7,500,000 shares were authorized for issuance in connection with the Company’s Equity Incentive Plan. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | NOTE 11 - COMMITMENTS AND CONTINGENCIES In August 2022, TMTG irrevocably terminated all agreements with one of its vendors due to a material breach by the vendor, and TMTG reserved numerous affirmative claims against the vendor. TMTG determined during the third quarter of 2022 that payment of existing invoices, future invoices, or litigation expenses is “not probable.” Therefore, TMTG has not accrued for a related loss contingency. The total amount of liability of $1.7 million was reversed during the third quarter of 2022. TMTG further reversed $0.5 million of additional liabilities during the third quarter of 2022 related to vendors who relied on erroneous interpretation of supply contracts. Based on current known facts and circumstances, the Company currently believes that any liabilities ultimately resulting from ordinary course claims and proceedings will not individually or in aggregate, have a material adverse effect on the Company's financial position, results of operations or cash flows. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2023 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | NOTE 12 - SUBSEQUENT EVENTS In accordance with ASC Topic 855, “Subsequent Events”, which establishes general standards of accounting for and disclosure of events that occur after the balance sheet date but before financial statements are issued, the Company has evaluated all events or transactions that occurred after December 31, 2023, up to the date the Company issued the financial statements. On January 7, 2024, TMTG’s majority shareholder approved an amended certificate of incorporation that, when filed on January 26, 2024, increased TMTG’s authorized shares to 1,000,000,000. On January 18, 2024, DWAC received a letter from a TMTG minority shareholder that contained certain assertions regarding: (i) board appointments with respect to TMTG; (ii) consent rights with respect to TMTG’s issuance of additional shares and classes of securities; and (iii) certain expenses. On January 22, 2024, in furtherance of TMTG and DWAC’s proposed merger, DWAC filed with the SEC a third amendment to its registration statement on form S-4, which included disclosures regarding the January 18 letter. TMTG and a new lender executed a promissory note (with a face value of $1,000,000) dated January 22, 2024. On January 22, 2024, TMTG received a books and records inspection request from another TMTG minority shareholder, purportedly pursuant to Section 220 of the Delaware General Corporation Law, to which TMTG responded via counsel on January 29, 2024. TMTG received several subsequent communications from the same minority shareholder. Effective February 2, 2024, TMTG entered into a Second Amended & Restated License Agreement with President Trump. Effective February 2, 2024, TMTG entered into three amended and restated convertible promissory notes with one of its noteholders; the amendments clarified certain conversion mechanics and confirmed the application of an MFN clause to one of the notes. On February 9, 2024, TMTG and DWAC received letters from the TMTG minority shareholder that had previously sent a letter to DWAC on January 18. Effective February 12, 2024, TMTG and DWAC entered into a Retention Bonus Agreement pertaining to post-merger payments to employees and other personnel affiliated with TMTG. On February 12, 2024, in furtherance of TMTG and DWAC’s proposed merger, DWAC filed with the SEC a fourth amendment to its registration statement on form S-4, which included disclosures regarding the aforementioned communications from TMTG minority shareholders. On February 14, 2024, in furtherance of TMTG and DWAC’s proposed merger, DWAC filed with the SEC fifth and sixth amendments to its registration statement on form S-4, after which DWAC received from SEC a notice indicating that the S-4 was effective as of 5:30pm on that same date. On February 16, 2024, DWAC filed with the SEC a proxy statement/prospectus scheduling a shareholder meeting (to vote on approving DWAC’s proposed merger with TMTG, among other matters) for March 22, 2024. On February 16, 2024 and March 20, 2024, TMTG received a letter from the minority shareholder that had previously sent a letter to TMTG on February 9, and to DWAC on January 18 and February 9, purporting to appoint two individuals to TMTG’s board. Effective February 21, 2024, TMTG entered into an amended and restated convertible promissory note with one of its noteholders; the amendment revised certain economic terms of the noteholder’s loans, extended the maturity date thereof, and increased by the cumulative principal by $1,205,000. On February 27, 2024, TMTG and DWAC sued DWAC’s sponsor and the sponsor’s principal (who is also DWAC’s former CEO) in Florida state court. On February 28, 2024, the TMTG minority shareholder that had previously sent letters to TMTG on February 9 and February 16 sued TMTG in Delaware state court, seeking declaratory and injunctive relief relating to the authorization, issuance and ownership of TMTG stock, and contemporaneously filed a motion to expedite proceedings. On or about March 4, the minority shareholder amended its complaint to add each of TMTG’s board members as defendants. On March 9, during a hearing on the motion to expedite proceedings, the parties and the judge agreed that TMTG would place into escrow any additional TMTG shares, other than shares issuable to TMTG’s convertible noteholders, issued by TMTG prior to the closing of TMTG’s proposed merger with DWAC. The court issued a written order consistent with the foregoing on March 15, 2024, and scheduled a status conference for April 1, 2024. TMTG management believes that this litigation is not likely to result in the award of financial damages to the minority shareholder, and will not have a direct financial impact on TMTG other than potential ongoing legal fees for the duration of this matter. On or about February 28, 2024, DWAC’s sponsor sued DWAC in Delaware state court. On March 5, the judge denied in part the sponsor’s motion to expedite proceedings and stated that the court will not hold a merits or injunction hearing before the March 22 DWAC shareholder vote. With respect to the conversion of 7,158,025 shares of DWAC class B common stock into DWAC class A common stock in connection with the closing of the merger, DWAC has agreed to place into escrow a number of shares representing the difference between the conversion ratio determined by the DWAC board (1.348) and 2.00, i.e., 4,667,033 shares. TMTG management believes that this matter will not have a financial impact on TMTG other than potential legal fees following the closing of TMTG’s proposed merger with DWAC. Effective March 3 and 5, 2024, and in anticipation of the scheduled closing of TMTG’s merger with DWAC, several noteholders agreed with TMTG to amend their respective convertible notes by revising certain economic terms and extending the maturity date thereof. Effective March 7, 12, and 13, 2024, TMTG entered into multiple convertible promissory notes, including with several of its officers in accordance with the disclosures contained in DWAC’s registration and proxy statements. On March 22, 2024, DWAC shareholders approved DWAC’s merger with TMTG (and related proposals), and NASDAQ approved the listing of the post-merger entity. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (DWAC) (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
Legal Entity [Line Items] | |
Basis of Presentation | Basis of Presentation The accompanying financial statements are presented in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Significant estimates and assumptions reflected in the financial statements relate to and include, but are not limited to, the valuation of convertible promissory notes and derivative liabilities. |
Income Taxes | Income taxes Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. The Company recognizes the effect of income tax positions only if those positions are more likely than not of being sustained. Income tax amounts are therefore recognized for all situations where the likelihood of realization is greater than 50%. Changes in recognition or measurement are reflected in income tax expense in the period in which the change in judgment occurs. Accrued interest expense and penalties related to uncertain tax positions are recorded in Income Tax Expense. See Note 6 - Income Taxes. |
Recently Issued Accounting Standards | Recently issued accounting standards In December 2019, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2019-12, Simplifying the Accounting for Income Taxes (Topic 740). ASU 2019-12 removes certain exceptions for performing intraperiod tax allocations, recognizing deferred taxes for investments, and calculating income taxes in interim periods. The guidance also simplifies the accounting for franchise taxes, transactions that result in a step-up in the tax basis of goodwill, and the effect of enacted changes in tax laws or rates in interim periods. The Company adopted ASU 2019-12 in the first quarter of 2021 and the adoption had no material impact to the Company’s consolidated financial statements. In February 2016, the FASB issued Accounting Standards Update No. 2016-02, “Leases (Topic 842)” (“ASU 2016-02”), which requires lessees to record most leases on their balance sheets but recognize the expenses on their statements of operations in a manner similar to current accounting rules. ASU 2016-02 states that a lessee would recognize a lease liability for the obligation to make lease payments and a right-to-use asset for the right to use the underlying asset for the lease term. The new standard is effective for interim and annual periods beginning after December 15, 2021 (i.e. calendar periods beginning on January 1, 2022) on a modified retrospective basis. All leases are operating leases. See Note 5, “Leases.” All leases other than those disclosed as Right-to-Use leases are short term in nature with a term less than 12 months. |
Digital World Acquisition Corp. [Member] | |
Legal Entity [Line Items] | |
Basis of Presentation | Basis of Presentation The accompanying financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and in accordance with rules and regulations of the Securities and Exchange Commission (the “SEC”). |
Emerging Growth Company | Emerging Growth Company The Company is an “emerging growth company,” as defined in Section 2(a) of the Securities Act, as modified by the Jumpstart Our Business Startups Act of 2012 (the “JOBS Act”), and it may take advantage of certain exemptions from various reporting requirements that are applicable to other public companies that are not emerging growth companies including, but not limited to, not being required to comply with the auditor attestation requirements of Section 404 of the Sarbanes-Oxley Act, reduced disclosure obligations regarding executive compensation in its periodic reports and proxy statements, and exemptions from the requirements of holding a nonbinding advisory vote on executive compensation and stockholder approval of any golden parachute payments not previously approved. Further, Section 102(b)(1) of the JOBS Act exempts emerging growth companies from being required to comply with new or revised financial accounting standards until private companies (that is, those that have not had a Securities Act registration statement declared effective or do not have a class of securities registered under the Exchange Act) are required to comply with the new or revised financial accounting standards. The JOBS Act provides that a company can elect to opt out of the extended transition period and comply with the requirements that apply to non-emerging growth companies but any such election to opt out is irrevocable. The Company has elected not to opt out of such extended transition period which means that when a standard is issued or revised and it has different application dates for public or private companies, the Company, as an emerging growth company, can adopt the new or revised standard at the time private companies adopt the new or revised standard. This may make comparison of the Company’s financial statements with another public company which is neither an emerging growth company nor an emerging growth company which has opted out of using the extended transition period difficult or impossible because of the potential differences in accounting standards used. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Making estimates requires management to exercise significant judgment. It is at least reasonably possible that the estimate of the effect of a condition, situation or set of circumstances that existed at the date of the financial statements, which management considered in formulating its estimate, could change in the near term due to one or more future confirming events. Accordingly, the actual results could differ significantly from those estimates. |
Offering Costs Associated with the Initial Public Offering | Offering Costs Associated with the Initial Public Offering Offering costs consist of underwriting, legal, accounting and other expenses incurred through the balance sheet date that are directly related to the Initial Public Offering. These costs were charged to stockholders’ equity upon the completion of the Initial Public Offering. On September 8, 2021, offering costs in the aggregate of $23,566,497 were charged to stockholders’ equity (consisting of deferred underwriting commission of $10,062,500, fair value of the representative shares of $1,437,500, fair value of shares issued to the anchor investors of the Company’s Initial Public Offering of $7,677,450, fair value of shares transferred to officers and directors of $221,018, and other cash offering costs of $4,168,029). |
Class A Common Stock Subject to Possible Redemption | Class A Common Stock Subject to Possible Redemption As discussed in Note 4, all of the 28,750,000 shares of Class A common stock sold as part of the Units in the Initial Public Offering contain a redemption feature which allows for the redemption of such Public Shares in connection with the Company’s liquidation, if there is a stockholder vote or tender offer in connection with the Business Combination and in connection with certain amendments to the Company’s Amended and Restated Certificate of Incorporation. |
Income Taxes | Income Taxes The Company complies with the accounting and reporting requirements of ASC Topic 740, “Income Taxes,” which requires an asset and liability approach to financial accounting and reporting for income taxes. Deferred income tax assets and liabilities are computed for differences between the financial statement and tax bases of assets and liabilities that will result in future taxable or deductible amounts, based on enacted tax laws and rates applicable to the periods in which the differences are expected to affect taxable income. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount expected to be realized. ASC Topic 740 prescribes a recognition threshold and a measurement attribute for the financial statement recognition and measurement of tax positions taken or expected to be taken in a tax return. For those benefits to be recognized, a tax position must be more-likely-than-not to be sustained upon examination by taxing authorities. The Company’s management determined United States is the Company’s only major tax jurisdiction. The Company recognizes accrued interest and penalties related to unrecognized tax benefits, if any, as income tax expense. There were no unrecognized tax benefits as of December 31, 2023 or December 31, 2022 and no amounts accrued for interest and penalties. The Company is currently not aware of any issues under review that could result in significant payments, accruals or material deviation from its position. For the year ended December 31, 2023, the Company recorded $109,217 of penalties and interest expense related to income taxes, which is included in income tax expense. No amount was recorded for the year ended December 31, 2022. |
Net Loss Per Share | Net Loss Per Share Net income (loss) per share is computed by dividing net income (loss) by the weighted average number of shares of common stock outstanding during the period. The Company applies the two-class method in calculating earnings per share. Earnings and losses are shared pro rata between the two classes of shares. The calculation of diluted loss per share of common stock does not consider the effect of the warrants issued in connection with the (i) Initial Public Offering and (ii) sale of the Private Placement Units, because the warrants are contingently exercisable, and the contingencies have not yet been met. As a result, diluted earnings per share is the same as basic earnings per share for the periods presented. The following table reflects the calculation of basic and diluted net income (loss) per share (in dollars, except per share amounts): Year Ended December 31, 2023 Year Ended December 31, 2022 Redeemable Non Redeemable Redeemable Non Redeemable Basic and diluted net income (loss) per share of common stock Numerator: Allocation of net income (loss), as adjusted $(14,776,927) $(7,113,714) (11,799,077) $(3,843,471) Denominator: Basic and diluted weighted average shares outstanding 30,018,099 7,187,258 30,026,614 7,187,500 Basic and diluted net income (loss) per share of common stock $ (0.49) $ (0.99) (0.39) $ (0.53) |
Concentration of Credit Risk | Concentration of Credit Risk Financial instruments that potentially subject the Company to concentration of credit risk consist of a cash account in a financial institution which, at times may exceed the Federal depository insurance coverage of $250,000. At December 31, 2023, the Company had not experienced losses on this account and management believes the Company is not exposed to significant risks on such account. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The fair value of the Company’s assets and liabilities, which qualify as financial instruments under ASC Topic 820, “Fair Value Measurements and Disclosures,” approximates the carrying amounts represented in the accompanying balance sheet, primarily due to their short-term nature. |
Derivative Financial Instruments | Derivative Financial Instruments The Company evaluates its financial instruments to determine if such instruments are derivatives or contain features that qualify as embedded derivatives in accordance with ASC Topic 815, “Derivatives and Hedging”. Derivative instruments are initially recorded at fair value on the grant date and re-valued at each reporting date, with changes in the fair value reported in the statements of operations. Derivative assets and liabilities are classified in the balance sheet as current or non-current based on whether or not net-cash settlement or conversion of the instrument could be required within 12 months of the balance sheet date. The Company accounts for the warrants in accordance with the guidance contained in ASC 815-40. The Company has determined that the warrants qualify for equity treatment in the Company’s financial statements. |
Recently Issued Accounting Standards | Recently Issued Accounting Standards Management does not believe that any recently issued, but not yet effective, accounting pronouncements, if currently adopted, would have a material effect on the Company’s financial statements. |
Risks and Uncertainties | Risks and Uncertainties Management is currently evaluating the impact of the COVID-19 pandemic and has concluded that while it is reasonably possible that the virus could have a negative effect on the Company’s financial position, results of its operations, and/or search for a target company, the specific impact is not readily determinable as of the date of these financial statements. The financial statements do not include any adjustments that might result from the outcome of this uncertainty. |
Inflation Reduction Act of 2022 | Inflation Reduction Act of 2022 On August 16, 2022, the Inflation Reduction Act of 2022 (the “IR Act”) was signed into federal law. The IR Act provides for, among other things, a new U.S. federal 1% excise tax on certain repurchases (including redemptions) of stock by publicly traded domestic (i.e., U.S.) corporations and certain domestic subsidiaries of publicly traded foreign corporations. The excise tax is imposed on the repurchasing corporation itself, not its shareholders from which shares are repurchased. The amount of the excise tax is generally 1% of the fair market value of the shares repurchased at the time of the repurchase. However, for purposes of calculating the excise tax, repurchasing corporations are permitted to net the fair market value of certain new stock issuances against the fair market value of stock repurchases during the same taxable year. In addition, certain exceptions apply to the excise tax. The U.S. Department of the Treasury (the “Treasury Department”) has been given authority to provide regulations and other guidance to carry out and prevent the abuse or avoidance of the excise tax. The IR Act applies only to repurchases that occur after December 31, 2022. Any redemption or other repurchase that occurs after December 31, 2022, in connection with a Business Combination, extension vote or otherwise, may be subject to the excise tax. Whether and to what extent the Company would be subject to the excise tax in connection with a Business Combination, extension vote or otherwise would depend on a number of factors, including (i) the fair market value of the redemptions and repurchases in connection with the Business Combination, extension or otherwise, (ii) the structure of a Business Combination, (iii) the nature and amount of any “PIPE” or other equity issuances in connection with a Business Combination (or otherwise issued not in connection with a Business Combination but issued within the same taxable year of a Business Combination) and (iv) the content of regulations and other guidance from the Treasury. In addition, because the excise tax would be payable by the Company and not by the redeeming shareholder, the mechanics of any required payment of the excise tax have not been determined. The foregoing could cause a reduction in the cash available on hand to complete a Business Combination and in the Company’s ability to complete a Business Combination. |
SIGNIFICANT ACCOUNTING POLICI_2
SIGNIFICANT ACCOUNTING POLICIES AND PRACTICES (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying financial statements are presented in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). |
Liquidity and going concern | Liquidity and going concern TMTG commenced operations on February 8, 2021 and began the initial launch of its social media platform in the first quarter of 2022. The business used cash from operations of $37,732,000 from February 8, 2021 (inception) through December 31, 2023 funded by $40,460,000 of proceeds from the issuance of convertible promissory notes (net of repayments). The term of these notes range between 18 and 36 months; however, each has an accelerated retirement feature in the event of default by the Company. Interest will be accrued between 5% and 10% annually based on the simple interest method (365 days per year). In October of 2021, TMTG entered into a definitive merger agreement with a special purpose acquisition corporation (SPAC), Digital World Acquisition Corp. (DWAC, or Digital World), a Delaware corporation. The companies expect to consummate the merger in the coming quarters, combining TMTG’s operations with DWAC’s balance sheet (i.e. cash in trust net of redemptions and fees). The parties to the agreement intend to effect the merger of DWAC and its subsidiaries with and into TMTG, with TMTG continuing as the surviving entity. As a result of which, all of the issued and outstanding capital stock of TMTG shall no longer be outstanding and shall automatically be cancelled and shall cease to exist, in exchange for the right for each of TMTG’s stockholders to receive its pro rata share of the stockholder merger consideration subject to the conditions set forth in the merger agreement and in accordance with the applicable provisions of the Delaware General Corporation Law. The agreement was amended on May 11, 2022; August 9, 2023; and September 29, 2023. On May 16, 2022, in furtherance of TMTG and DWAC’s proposed merger, DWAC filed with the SEC a registration statement on form S-4. As publicly disclosed by DWAC in an 8-K filing, “on June 27, 2022, TMTG received a subpoena from the SEC seeking documents relating to, among other things, Digital World and other potential counterparties for a business transaction involving TMTG. Digital World has also been informed that on December 30, 2022, TMTG was served with a subpoena, issued by a federal grand jury sitting in the Southern District of New York, seeking a subset of the same or similar documents demanded in subpoenas to Digital World and its directors. Certain current and former TMTG personnel have also received individual grand jury subpoenas.” As publicly disclosed by TMTG in a press release, “TMTG has cooperated fully with inquiries into our planned merger and … complied with subpoenas we've received, none of which were directed at the company's Chairman or CEO.” As detailed below, on information and belief, TMTG is not the target of any SEC or Department of Justice (DOJ) enforcement action. On September 22, 2022, Mr. W. Moss resigned as director of the Company. Based on information subsequently provided to the Company, the Company understands that Mr. Moss’s resignation did not result from any disagreement with the Company concerning any matter relating to the Company’s operations, policies or practices. As noted below, Mr. Moss was replaced by Mr. D. Scavino during February 2023. Mr D. Scavino continues to consult to the Company. This arrangement is similar to the consulting agreement with Mr. K. Patel, also a current board member. As of December 31, 2022, Donald J. Trump (“DJT”) had the unilateral right to terminate the License Agreement, as amended, between and among DJT, TMTG, and DTTM Operations, LLC, pursuant to which TMTG obtained certain rights related to the name, image, and likeness of DJT. On October 30, 2023, DJT verbally affirmed that, notwithstanding his contractual right to do so, he would not terminate the License Agreement prior to the later of (a) December 31, 2023, and (b) any other date to which TMTG and DWAC mutually agree to extend the time to consummate their proposed merger. On February 14, 2023, a trademark for “Truth Social” in classes 21 and 25 was registered with the U.S. Patent and Trademark Office (“USPTO”) by T Media Tech LLC, a wholly-owned subsidiary of TMTG. Trademark applications for “Truth Social” in classes 9 and 42; for “RETRUTH” in classes 9, 35, 38, 41, 42, and 45; “TRUTHSOCIAL” in classes 9, 35, 38, 41, 42, and 45; and “TRUTHPLUS” in classes 9, 35, 38, 41, and 42 are the subject of suspension notices received from USPTO on October 24, 2022; January 13, 2023; February 14, 2023; and February 17, 2023, respectively. Several additional trademark applications remain pending, but have not been the subject of adverse action by USPTO. On February 16, 2023, TMTG’s Board of Directors held a special meeting. At the meeting, the board appointed D. Scavino to fill the board vacancy created by the resignation of W. Moss and ratified certain past corporate actions pursuant to Delaware law. The board also authorized an increase in TMTG’s share count to 1,000,000,000 shares. On March 1, 2023, TMTG eliminated several positions. This action followed a review of all departments, most significantly impacted TMTG’s streaming video on demand (“SVOD”) and infrastructure teams, and was primarily attributable to unprecedented obstruction of TMTG’s planned merger with DWAC by the SEC—and concomitant delay in TMTG’s access to capital that TMTG would receive upon the successful completion of such merger. All former employees whose positions were eliminated in March 2023 signed separation agreements. Separately, a former employee whose employment was terminated in June 2022 (and who had declined at that time to sign a separation agreement), filed a wage claim with the New Hampshire Department of Labor on or about June 1, 2023. The former employee agreed to dismiss the claim pursuant to a settlement agreement executed on June 29, 2023, pursuant to which TMTG paid the former employee $25,000. On April 3, 2023, TMTG CEO Devin Nunes — in his personal capacity — sued several defendants, including a former TMTG employee, in Florida state court. On December 15, 2023, Nunes voluntarily dismissed the lawsuit, without prejudice. TMTG was not a party to that proceeding. The first of TMTG’s convertible promissory notes reached maturity in May 2023 As of the date hereof, there are no outstanding demands for repayment of any of TMTG’s convertible promissory notes that have reached their respective maturity dates. Events related to TMTG’s promissory notes include the following: • A broker’s note (which has a face value of $140,000, and is associated with a note with a face value of $2,000,000) reached its maturity date on May 7, 2023. Such note was amended and restated to clarify certain terms on October 26, 2023. • A note (with a face value of $2,000,000) reached maturity on May 19, 2023. TMTG and the lender subsequently agreed to extend the maturity date of such note until May 19, 2024, and executed an amended and restated note effective June 6, 2023. A related broker’s note (with a face value of $67,000) reached its maturity date on May 26, 2023. • On June 26, 2023, TMTG received a “demand for payment” from a lender whose promissory note with a face value of $2,000,000 reached its maturity date on June 23, 2023. On July 7, 2023, the lender withdrew its demand and agreed to extend the term of its promissory note and an additional loan in the principal amount of $6,000,000, for an additional twelve months until June 23, 2024 and August 18, 2024, respectively. TMTG and the lender subsequently executed a letter, dated August 10, 2023, to document such extension. • A lender whose note (with a face value of $4,200,000) reaches its maturity date on December 24, 2024, asserted a “Most Favored Nation” covenant (“MFN”) in the note has the effect of accelerating the maturity date of such note—and, pursuant to such assertion, issued a demand for payment on June 30, 2023. On July 7, 2023, the lender further asserted that TMTG had defaulted on its obligations under the note that reaches its maturity date on December 24, 2024, and under a second note (with a face value of $2,000,000) that reaches its maturity date on August 3, 2023. Also on July 7, 2023, counsel for TMTG sent a letter for the lender denying each of the foregoing assertions. On July 21, 2023, counsel for TMTG reaffirmed that no default had occurred. The second note (with a face value of $2,000,000) reached its maturity date on August 3, 2023. On December 21, 2023, TMTG agreed to repay $1,000,000 of principal on the second note within five • A note (with a face value of $500,000) reached its maturity date on July 24, 2023. On December 29, 2023, TMTG and the lender mutually agreed to increase the principal (by an additional $500,000, for a total of $1,000,000) and extend the term of such note until June 29, 2025. • On August 23, 2023, TMTG and a new lender executed a promissory note (with a face value of $2,500,000). • On November 24, 2023, TMTG and a lender executed a promissory note (with a face value of $500,000). • Eight of TMTG’s other notes, with an aggregate face value of $14,293,000, reached their respective maturity dates between June 30, 2023, and November 23, 2023. On May 20, 2023, TMTG filed suit in Florida state court against the Washington Post Washington Post Washington Post Washington Post On or about June 23, 2023 and December 20, 2023 were potential expiry dates of an exclusivity provision of the License Agreement which generally requires that DJT channel his personal social media communications to TMTG’s Truth Social platform six hours before posting the same communications on a non-TMTG social media platform. Because neither TMTG nor DJT terminated this provision, the exclusivity provisions has twice automatically renewed for an additional 180 days. On June 29, 2023, three individuals — including a former DWAC director — were arrested and criminally charged by DOJ in connection with alleged insider trading of DWAC securities. On July 20, 2023, all three defendants pleaded not guilty. These individuals have no affiliation with TMTG and — on information and belief — TMTG is not the target of any DOJ enforcement action. On July 3, 2023, DWAC publicly disclosed an agreement in principle with SEC staff to resolve an ongoing SEC enforcement inquiry into DWAC. On July 20, 2023, SEC approved the settlement. TMTG is not a party to such agreement or — on information and belief — the target of any SEC enforcement action. Effective July 14, 2023, TMTG’s head of engineering resigned to pursue other opportunities. On August 9, 2023, TMTG and DWAC executed a second amendment to their Merger Agreement. On the same date, the terms of such amendment were publicly disclosed by DWAC in an SEC filing. On September 5, 2023, DWAC held a special meeting of its stockholders, at which DWAC’s stockholders approved an amendment extending, upon the approval by DWAC’s board of directors, the date by which the DWAC has to consummate an initial business combination (including its planned merger with TMTG) for an aggregate of 12 additional months (i.e. from September 8, 2023 up to September 8, 2024) or such earlier date as determined by the DWAC board. On September 29, 2023, TMTG and DWAC finalized a third amendment to their Merger Agreement. On October 2, 2023, the terms of such amendment were publicly disclosed by DWAC in an SEC filing. On October 30, 2023, TMTG and Rumble executed a minimum guarantee advertising publisher agreement (the “Minimum Guarantee Rumble Agreement”), which replaced a previous agreement with Rumble. Under the Minimum Guarantee Rumble Agreement, 70% of the total aggregate gross revenues from the sale of Ad Units are allocated to TMTG, and the Ad Units shall comprise at least 85% of the aggregate number of paid advertisements directly into Truth Social feeds by TMTG each month. On November 13, 2023, in furtherance of TMTG and DWAC’s proposed merger, DWAC filed with the SEC an amended registration statement on form S-4. On November 20, 2023, in connection with reporting about TMTG’s financial results, TMTG filed a lawsuit for defamation and injurious falsehood in Florida state court against 20 media defendants. TMTG and one defendant — Nexstar Media, Inc., which owns the Hill — subsequently agreed to resolve their dispute outside of court, to both parties’ mutual satisfaction. In connection with such resolution, the Hill retracted a November 13, 2023 article, and TMTG’s lawsuit was dismissed as to Nexstar on December 4, 2023. All other terms of TMTG’s settlement with Nexstar remain confidential, and TMTG’s lawsuit is proceeding against all other defendants. On December 22, 2023, in furtherance of TMTG and DWAC’s proposed merger, DWAC filed with the SEC a second amendment to its registration statement on form S-4. During the 12 months following the signing of these financial statements, management has substantial doubt that the Company will have sufficient funds to meet its liabilities as they fall due, including liabilities related to promissory notes previously issued by the Company. Sufficient funds during this period are directly conditional on completion of the merger by the September 8, 2024 dissolution date. Bridge funding during the period leading up to the merger ranging between $5 million and $60 million is required depending on convertible note maturity dates, and if note holders decide to extend or call their respective outstanding notes. Management is currently in discussions with certain existing note holders regarding options for extension of maturity dates. The Company believes that it may be difficult to raise additional funds through traditional financing sources in the absence of continued material progress toward completing its merger with DWAC. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Significant estimates and assumptions reflected in the financial statements relate to and include, but are not limited to, the valuation of convertible promissory notes and derivative liabilities. |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements include the financial statements of the Company and its majority owned subsidiaries and have been prepared in accordance with Accounting Principles Generally Accepted in the United States (“GAAP”). All intercompany transactions have been eliminated. |
Cash | Cash Cash represents bank accounts and demand deposits held at financial institutions. Cash is held at major financial institutions and are subject to credit risk to the extent those balances exceed applicable Federal Deposit Insurance Corporation (FDIC) limitations. No losses were incurred for those balances exceeding the limitations. |
Prepaid expenses and other current assets | Prepaid expenses and other current assets Other receivables consist of prepaid rent, insurance and prepaid data costs. |
Property, Plant and Equipment | Property, Plant and Equipment Property, plant and equipment are recorded at cost less accumulated depreciation. Depreciation is calculated on the straight-line basis over the estimated useful lives of the assets. Useful lives for property, plant and equipment are as follows: Asset Type Range Furniture and computer equipment 2 - 5 years Expenditures which substantially increase value or extend useful lives are capitalized. Expenditures for maintenance and repairs are charged to operations as incurred. Gains and losses are recorded on the disposition or retirement of property, plant and equipment based on the net book value and any proceeds received. Long-lived fixed assets held and used are reviewed for impairment when events or changes in business circumstances indicate that the carrying amount of the assets may not be fully recoverable. Circumstances such as the discontinuation of a line of service, a sudden or consistent decline in the sales forecast for a product, changes in technology or in the way an asset is being used, a history of operating or cash flow losses or an adverse change in legal factors or in TMTG climate, among others, may trigger an impairment review. If such indicators are present, TMTG performs undiscounted cash flow analyses to determine if impairment exists. The asset value would be deemed impaired if the undiscounted cash flows generated did not exceed the carrying value of the asset. If impairment is determined to exist, any related impairment loss is calculated based on fair value. There were no triggering events identified that necessitated an impairment test over property, plant and equipment. Assets to be disposed of are reported at the lower of the carrying amount or fair value less costs to sell. See Note 4 - Property, plant and equipment for further detail. |
Capitalized software costs | Capitalized software costs The Company capitalizes costs related to its major service products and certain projects for internal use incurred during the application development stage. Costs related to preliminary project activities and post implementation activities are expensed as incurred. Internal-use software is amortized on a straight-line basis over its estimated useful life, which is generally five |
Revenue Recognition | Revenue Recognition The Company records revenue in accordance with ASC 606. The Company determines the amount of revenue to be recognized through application of the following steps- Identification of the contract, or contracts with a customer; - Identification of the performance obligations in the contract; - Determination of the transaction price; - Allocation of the transaction price to the performance obligations in the contract; and - Recognition of revenue when or as the Company satisfies the performance obligations. The Company entered into advertising contractual arrangements with advertising manager service companies. The advertising manager service companies provide advertising services through their Ad Manager Service Platform on the Truth Social website to customers. The Company determines the number of Ad Units available on its Truth Social website. The advertising manager service companies have sole discretion over the terms of the auction and all payments and actions associated therewith. Prices for the Ad Units are set by an auction operated and managed by these companies. The Company has the right to block specific advertisers at its sole reasonable discretion, consistent with applicable laws, rules, regulations, statutes, and ordinances. The Company is an agent in these arrangements, and recognizes revenue for its share in exchange for arranging for the specified advertising to be provided by the advertising manager service companies. The advertising revenues are recognized in the period when the advertising services are provided. |
Cost of revenue | Cost of revenue Cost of revenue primarily encompasses expenses associated with generating advertising revenue. These costs are determined by allocating staff direct and indirect costs proportionately, including depreciation, based on the time spent managing the agency relationships with external vendors. These costs are confined to activities related to coordinating with these third-party vendors as the third-party vendors are responsible to control and facilitate the delivery of advertising services. |
Research and development | Research and development Research and development expenses consist primarily of personnel-related costs, including salaries, benefits and stock-based compensation, for our engineers and other employees engaged in the research and development of our products and services. In addition, research and development expenses include amortization of acquired intangible assets, allocated facilities costs, and other supporting overhead costs. |
Marketing and sales | Marketing and sales Sales and marketing expenses consist primarily of personnel-related costs, including salaries, commissions, benefits and stock-based compensation for our employees engaged in sales, sales support, business development and media, marketing, and customer service functions. In addition, marketing and sales-related expenses also include advertising costs, market research, trade shows, branding, marketing, public relations costs, amortization of acquired intangible assets, allocated facilities costs, and other supporting overhead costs. |
Selling, general and administrative expenses | Selling, general and administrative expenses General and administrative expenses consist primarily of personnel-related costs, including salaries, benefits, and stock-based compensation for our executive, finance, legal, information technology, corporate communications, human resources, and other administrative employees. In addition, general and administrative expenses include fees and costs for professional services (including third-party consulting, legal, and accounting services), facilities costs, and other supporting overhead costs that are not allocated to other departments. |
Income taxes | Income taxes Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. The Company recognizes the effect of income tax positions only if those positions are more likely than not of being sustained. Income tax amounts are therefore recognized for all situations where the likelihood of realization is greater than 50%. Changes in recognition or measurement are reflected in income tax expense in the period in which the change in judgment occurs. Accrued interest expense and penalties related to uncertain tax positions are recorded in Income Tax Expense. See Note 6 - Income Taxes. |
Commitments and contingencies | Commitments and contingencies Liabilities for loss contingencies arising from claims, assessments, litigation, fines, and penalties and other sources are recorded when it is probable that a liability has been incurred and the amount can be reasonably estimated. The Company has no liabilities for loss contingencies. |
Recently issued accounting standards | Recently issued accounting standards In December 2019, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2019-12, Simplifying the Accounting for Income Taxes (Topic 740). ASU 2019-12 removes certain exceptions for performing intraperiod tax allocations, recognizing deferred taxes for investments, and calculating income taxes in interim periods. The guidance also simplifies the accounting for franchise taxes, transactions that result in a step-up in the tax basis of goodwill, and the effect of enacted changes in tax laws or rates in interim periods. The Company adopted ASU 2019-12 in the first quarter of 2021 and the adoption had no material impact to the Company’s consolidated financial statements. In February 2016, the FASB issued Accounting Standards Update No. 2016-02, “Leases (Topic 842)” (“ASU 2016-02”), which requires lessees to record most leases on their balance sheets but recognize the expenses on their statements of operations in a manner similar to current accounting rules. ASU 2016-02 states that a lessee would recognize a lease liability for the obligation to make lease payments and a right-to-use asset for the right to use the underlying asset for the lease term. The new standard is effective for interim and annual periods beginning after December 15, 2021 (i.e. calendar periods beginning on January 1, 2022) on a modified retrospective basis. All leases are operating leases. See Note 5, “Leases.” All leases other than those disclosed as Right-to-Use leases are short term in nature with a term less than 12 months. |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (DWAC) (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Digital World Acquisition Corp. [Member] | |
Legal Entity [Line Items] | |
Basic and Diluted Net Income (Loss) per Share | The following table reflects the calculation of basic and diluted net income (loss) per share (in dollars, except per share amounts): Year Ended December 31, 2023 Year Ended December 31, 2022 Redeemable Non Redeemable Redeemable Non Redeemable Basic and diluted net income (loss) per share of common stock Numerator: Allocation of net income (loss), as adjusted $(14,776,927) $(7,113,714) (11,799,077) $(3,843,471) Denominator: Basic and diluted weighted average shares outstanding 30,018,099 7,187,258 30,026,614 7,187,500 Basic and diluted net income (loss) per share of common stock $ (0.49) $ (0.99) (0.39) $ (0.53) |
TAXES (DWAC) (Tables)
TAXES (DWAC) (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Legal Entity [Line Items] | |
Summary of Company's Net Deferred Tax Assets | The tax effects of temporary differences that give rise to deferred tax assets and deferred tax liabilities as of December 31, 2023 are as follows: (in thousands) December 31, 2023 December 31, 2022 Deferred tax assets Software and other claimed assets 360.6 $ 1,810.5 Net operating loss (NOL) 9,474.7 4,478.1 Convertible promissory notes and derivative liability 3,853.2 — Total deferred tax assets 13,688.5 6,288.6 Deferred tax liabilities Property, plant & equipment (6.2) (18.2) Convertible promissory notes and derivative liability — (4,473.2) Total deferred tax liabilities (6.2) (4,491.4) Net deferred tax assets 13,682.3 1,797.2 Valuation allowance (13,682.3) (1,797.2) Net deferred tax, net of valuation allowance — — |
Summary of Reconciliation of Federal Income Tax Rate | The following reconciles the total income tax benefit, based on the U.S. Federal statutory income tax rate of 21% for the twelve month period ended December 31, 2023, with TMTG’s recognized income tax expense: Twelve Month Period Ended (in thousands) December 31, 2023 December 31, 2022 U.S. Statutory federal income tax expense/(benefit) (12,219.7) 10,610.0 Permanent items State income taxes, net of federal effect 1.1 2,633.1 Non-deductible expenses 334.6 3.0 Change in valuation allowance 11,885.1 (13,245.9) Income tax expense 1.1 0.2 |
Digital World Acquisition Corp. [Member] | |
Legal Entity [Line Items] | |
Summary of Company's Net Deferred Tax Assets | The Company’s net deferred tax assets are as follows: December 31, 2023 December 31, 2022 Deferred tax assets: Net operating losses $ — $ — Legal settlement 4,562,100 — Start-up costs 8,716,458 5,190,046 Total deferred tax assets 13,278,558 5,190,046 Valuation Allowance (13,278,558) (5,190,046) Deferred tax asset, net of allowance $ — $ — |
Summary of Income Tax Provision | Below is breakdown of the income tax provision. For the Year Ended December 31, 2023 For the Year Ended December 31, 2022 Federal Current $(3,742,611) $(3,078,967) Deferred — — State and local Current (796,963) (637,053) Deferred — — Change in valuation allowance 8,088,176 4,695,494 Income tax provision $ 3,548,602 $ 979,475 |
Summary of Reconciliation of Federal Income Tax Rate | A reconciliation of the federal income tax rate to the Company’s effective tax rate is as follows: For the Year Ended December 31, 2023 For the Year Ended December 31, 2022 Federal income taxes at 21.00% 21.00% 21.00% State tax, net of Federal benefit 4.35% 4.35% Change in valuation allowance (44.10)% (32.03)% Other (0.60)% —% Provision for income tax (19.35)% (6.68)% |
SIGNIFICANT ACCOUNTING POLICI_3
SIGNIFICANT ACCOUNTING POLICIES AND PRACTICES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Useful Lives for Property, Plant and Equipment | Property, plant and equipment are recorded at cost less accumulated depreciation. Depreciation is calculated on the straight-line basis over the estimated useful lives of the assets. Useful lives for property, plant and equipment are as follows: Asset Type Range Furniture and computer equipment 2 - 5 years |
PROPERTY, PLANT AND EQUIPMENT (
PROPERTY, PLANT AND EQUIPMENT (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
PROPERTY, PLANT AND EQUIPMENT [Abstract] | |
Property, Plant and Equipment | Property, plant and equipment consist of the following: (in thousands) December 31, 2023 December 31, 2022 Property, plant and equipment Furniture and equipment $ 34.5 $ 34.5 Computer equipment 120.8 118.6 Accumulated depreciation (126.1) (65.7) Property, plant and equipment, net $ 29.2 $ 87.4 |
LEASES (Tables)
LEASES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
LEASES [Abstract] | |
Minimum Commitments Under the Company Leases | As of December 31, 2023, minimum commitments under the Company leases, were as follows: (in thousands) December 31, 2023 December 31, 2022 Next year $193.5 $201.3 Year 2-5 217.1 397.5 $410.6 $598.8 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Tax Expense | The following reconciles the total income tax benefit, based on the U.S. Federal statutory income tax rate of 21% for the twelve month period ended December 31, 2023, with TMTG’s recognized income tax expense: Twelve Month Period Ended (in thousands) December 31, 2023 December 31, 2022 U.S. Statutory federal income tax expense/(benefit) (12,219.7) 10,610.0 Permanent items State income taxes, net of federal effect 1.1 2,633.1 Non-deductible expenses 334.6 3.0 Change in valuation allowance 11,885.1 (13,245.9) Income tax expense 1.1 0.2 |
Deferred Tax Assets and Liabilities | The tax effects of temporary differences that give rise to deferred tax assets and deferred tax liabilities as of December 31, 2023 are as follows: (in thousands) December 31, 2023 December 31, 2022 Deferred tax assets Software and other claimed assets 360.6 $ 1,810.5 Net operating loss (NOL) 9,474.7 4,478.1 Convertible promissory notes and derivative liability 3,853.2 — Total deferred tax assets 13,688.5 6,288.6 Deferred tax liabilities Property, plant & equipment (6.2) (18.2) Convertible promissory notes and derivative liability — (4,473.2) Total deferred tax liabilities (6.2) (4,491.4) Net deferred tax assets 13,682.3 1,797.2 Valuation allowance (13,682.3) (1,797.2) Net deferred tax, net of valuation allowance — — |
CONVERTIBLE PROMISSORY NOTES (T
CONVERTIBLE PROMISSORY NOTES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
CONVERTIBLE PROMISSORY NOTES [Abstract] | |
Convertible Promissory Notes | The Convertible Promissory Notes (debt host) are not subject to Subtopic 480-10. (in thousands) December 31, 2023 December 31, 2022 Convertible Promissory Notes Notes 1 to 7 $ 5,340.0 $ 5,340.0 Notes 8 to 12 17,500.0 17,500.0 Notes 13 to 19 17,860.0 15,360.0 40,700.0 38,200.0 Debt Issuance costs (240.0) (240.0) Nominal value of Convertible Promissory Notes 40,460.0 37,960.0 Derivative liability Component 37,234.8 (36,528.7) Liability component at date of issue 3,225.2 1,431.3 Interest charged 42,121.7 2,692.6 Interest paid — — Total Liability component $ 45,347.0 $ 4,123.9 Less: Short-term liability component (42,415.5) (4,123.9) Liability component at December 31, 2023 and December 31, 2022 $ 2,931.5 $ — Embedded feature Component Derivative liability Component $ 37,234.8 $ 36,528.7 Change in fair value of Embedded derivative (18,831.9) (21,623.4) Total Derivative Liability Component 18,402.9 14,905.3 Less: Short-term Derivative Liability Component (17,282.5) (14,905.3) Derivative Liability Component $ 1,120.3 $ — |
FAIR VALUE MEASUREMENT (Tables)
FAIR VALUE MEASUREMENT (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
FAIR VALUE MEASUREMENT [Abstract] | |
Fair Value Measurement | All of the Company’s cash is classified within Level 2 because the Company’s cash is valued using pricing sources and models utilizing observable market inputs. The Convertible promissory notes are classified as Level 3 due to significant unobservable inputs. As of December 31, 2023 (in thousands) Quoted prices in active markets for identical assets (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) Cash Cash 2,572.7 Current Liabilities Convertible promissory notes 42,415.5 Derivative liability 17,282.5 Liabilities Convertible promissory notes 2,931.5 Derivative liability 1,120.3 As of December 31, 2022 (in thousands) Quoted prices in active markets for identical assets (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) Cash Cash 9,808.4 Liabilities Convertible promissory notes 4,123.9 Derivative liability 14,905.3 |
DESCRIPTION OF ORGANIZATION A_2
DESCRIPTION OF ORGANIZATION AND BUSINESS OPERATIONS AND GOING CONCERN - Additional Information (DWAC) (Details) | 12 Months Ended | ||||||||||||
Dec. 04, 2021 USD ($) $ / shares shares | Oct. 20, 2021 USD ($) $ / shares shares | Sep. 08, 2021 USD ($) $ / shares shares | Dec. 31, 2023 USD ($) Business $ / shares shares | Dec. 31, 2022 USD ($) $ / shares shares | Sep. 05, 2023 USD ($) $ / shares shares | Jun. 02, 2023 USD ($) | Apr. 21, 2023 USD ($) | Nov. 22, 2022 USD ($) $ / shares shares | Sep. 08, 2022 USD ($) | Jan. 31, 2022 shares | Oct. 31, 2021 shares | Feb. 08, 2021 shares | |
Subsidiary, Sale of Stock [Line Items] | |||||||||||||
Common Stock Shares Issued | shares | 100,000,000 | 100,000,000 | 100,000,000 | 100,000,000 | 10,000 | ||||||||
Digital World Acquisition Corp. [Member] | |||||||||||||
Subsidiary, Sale of Stock [Line Items] | |||||||||||||
Condition for future business combination number of businesses minimum | Business | 1 | ||||||||||||
Payments for investment of cash in Trust Account | $ 0 | $ 2,875,000 | |||||||||||
Obligation to redeem Public Shares if entity does not complete a business combination within the combination period (as a percent) | 100% | ||||||||||||
Minimum net tangible assets upon consummation of the business combination | $ 5,000,001 | ||||||||||||
Redemption limit percentage without prior consent | 0.15 | ||||||||||||
Minimum net tangible assets required to be maintained upon redemption of public shares | $ 5,000,001 | ||||||||||||
Redemption period upon closure | 5 days | ||||||||||||
Maximum allowed dissolution expenses | $ 100,000 | ||||||||||||
Digital World Acquisition Corp. [Member] | Common Class A [Member] | |||||||||||||
Subsidiary, Sale of Stock [Line Items] | |||||||||||||
Stock issued during period, Value, Issued for services | $ 1,437,500 | ||||||||||||
Temporary equity stock shares subject to redemption | shares | 28,745 | 5,658 | |||||||||||
Temporary equity redemption value | $ 307,028 | $ 58,916 | |||||||||||
Temporary equity, redemption price per share | $ / shares | $ 10.75 | $ 10.4 | $ 10.68 | $ 10.41 | |||||||||
Digital World Acquisition Corp. [Member] | Earnout Shares [Member] | |||||||||||||
Subsidiary, Sale of Stock [Line Items] | |||||||||||||
Number of shares issued | shares | 40,000,000 | ||||||||||||
Number of Earnout Period | 3 years | ||||||||||||
Digital World Acquisition Corp. [Member] | DWAC Common Stock [Member] | Minimum [Member] | |||||||||||||
Subsidiary, Sale of Stock [Line Items] | |||||||||||||
Number of trading days used to determine VWAP | 20 days | ||||||||||||
Common Stock Shares Issued | shares | 10,000,000 | ||||||||||||
Digital World Acquisition Corp. [Member] | DWAC Common Stock [Member] | Maximum [Member] | |||||||||||||
Subsidiary, Sale of Stock [Line Items] | |||||||||||||
Number of trading days used to determine VWAP | 30 days | ||||||||||||
Common Stock Shares Issued | shares | 15,000,000 | ||||||||||||
Digital World Acquisition Corp. [Member] | DWAC Common Stock [Member] | Price Per Share of Class Common Stock Equals or Exceeds Twelve Point Five [Member] | |||||||||||||
Subsidiary, Sale of Stock [Line Items] | |||||||||||||
Share Price | $ / shares | $ 12.5 | ||||||||||||
Digital World Acquisition Corp. [Member] | DWAC Common Stock [Member] | Price Per Share of Class Common Stock Equals or Exceeds Fifteen [Member] | |||||||||||||
Subsidiary, Sale of Stock [Line Items] | |||||||||||||
Share Price | $ / shares | 15 | ||||||||||||
Digital World Acquisition Corp. [Member] | DWAC Common Stock [Member] | Price Per Share of Class Common Stock Equals or Exceeds Seventeen Point Five [Member] | |||||||||||||
Subsidiary, Sale of Stock [Line Items] | |||||||||||||
Share Price | $ / shares | $ 17.5 | ||||||||||||
Digital World Acquisition Corp. [Member] | Note [Member] | |||||||||||||
Subsidiary, Sale of Stock [Line Items] | |||||||||||||
Debt instrument face amount | $ 2,000,000 | ||||||||||||
Digital World Acquisition Corp. [Member] | Initial Public Offering | |||||||||||||
Subsidiary, Sale of Stock [Line Items] | |||||||||||||
Number of units sold | shares | 28,750,000 | ||||||||||||
Purchase price, per unit | $ / shares | $ 10 | ||||||||||||
Proceeds from Issuance Initial Public Offering | $ 287,500,000 | ||||||||||||
Offering costs | 23,566,497 | ||||||||||||
Deferred underwriting commissions | 10,062,500 | ||||||||||||
Fair value of the representative shares | 1,437,500 | ||||||||||||
Other offering costs | 4,168,029 | ||||||||||||
Payments for investment of cash in Trust Account | $ 293,250,000 | ||||||||||||
Payments for investment of cash in Trust Account, per unit | $ / shares | $ 10.2 | ||||||||||||
Stock issued during period, Value, Issued for services | $ 7,677,450 | ||||||||||||
Share transfer between related parties, Value | $ 221,018 | ||||||||||||
Assets Remaining for Distribution, Value per Share | $ / shares | $ 10.45 | ||||||||||||
Digital World Acquisition Corp. [Member] | Over-Allotment Option [Member] | |||||||||||||
Subsidiary, Sale of Stock [Line Items] | |||||||||||||
Number of units sold | shares | 3,750,000 | ||||||||||||
Underwriting option period | 45 days | ||||||||||||
Digital World Acquisition Corp. [Member] | Merger agreement with TMTG [Member] | |||||||||||||
Subsidiary, Sale of Stock [Line Items] | |||||||||||||
Agreed consideration | $ 875,000,000 | ||||||||||||
True up period after the closing | 90 days | ||||||||||||
Digital World Acquisition Corp. [Member] | DWAC Merger Sub Inc [Member] | Earnout Shares [Member] | |||||||||||||
Subsidiary, Sale of Stock [Line Items] | |||||||||||||
Business Acquisition, Percentage of Voting Interests Acquired | 55% | ||||||||||||
Digital World Acquisition Corp. [Member] | Sponsor [Member] | Note [Member] | |||||||||||||
Subsidiary, Sale of Stock [Line Items] | |||||||||||||
Debt instrument face amount | $ 1,125,700 | $ 2,875,000 | |||||||||||
Digital World Acquisition Corp. [Member] | Sponsor [Member] | Initial Public Offering | |||||||||||||
Subsidiary, Sale of Stock [Line Items] | |||||||||||||
Number of units sold | shares | 1,133,484 | ||||||||||||
Digital World Acquisition Corp. [Member] | Sponsor [Member] | Private Placement | |||||||||||||
Subsidiary, Sale of Stock [Line Items] | |||||||||||||
Number of units sold | shares | 1,133,484 | ||||||||||||
Purchase price, per unit | $ / shares | $ 10 | ||||||||||||
Gross proceeds from sale of units | $ 11,334,840 | ||||||||||||
Digital World Acquisition Corp. [Member] | PIPE Investors [Member] | Private Placement | Series A Convertible Preferred Stock [Member] | |||||||||||||
Subsidiary, Sale of Stock [Line Items] | |||||||||||||
Purchase price, per unit | $ / shares | $ 1,000 | ||||||||||||
Number of shares issued | shares | 1,000,000 | ||||||||||||
Stock issued during period, value, new issues | $ 1,000,000,000 |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Additional Information (DWAC) (Details) - Digital World Acquisition Corp. [Member] - USD ($) | 12 Months Ended | |||
Sep. 08, 2021 | Dec. 31, 2023 | Dec. 31, 2022 | Aug. 16, 2022 | |
Unrecognized Tax Benefits | $ 0 | $ 0 | ||
Unrecognized tax benefits accrued for interest and penalties | 0 | |||
Penalties and interest expense related to income taxes | 109,217 | $ 0 | ||
Federal depository insurance coverage | $ 250,000 | |||
Percentage Of Excise Tax | 1% | |||
Percentage Of Excise Tax Fair Market Value Of Shares Repurchased | 1% | |||
Initial Public Offering | ||||
Offering costs | $ 23,566,497 | |||
Deferred underwriting commissions | 10,062,500 | |||
Fair value of the representative shares | 1,437,500 | |||
Other offering costs | 4,168,029 | |||
Stock issued during period, Value, Issued for services | 7,677,450 | |||
Share transfer between related parties, Value | 221,018 | |||
Initial Public Offering | Anchor Investor [Member] | ||||
Stock issued during period, Value, Issued for services | 7,677,450 | |||
Initial Public Offering | Officers and Directors [Member] | ||||
Share transfer between related parties, Value | $ 221,018 | |||
Class A Common Stock Subject to Redemption [Member] | Initial Public Offering | ||||
Number of shares issued | 28,750,000 |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Basic and Diluted Net Income (Loss) per Share (DWAC) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | ||
Denominator [Abstract] | |||
Basic weighted average shares outstanding | 100,000,000 | 100,000,000 | |
Diluted weighted average shares outstanding | 100,000,000 | 100,000,000 | |
Basic net income (loss) per share of common stock | $ (0.58) | $ 0.51 | |
Diluted net income (loss) per share of common stock | [1] | $ (0.58) | $ 0.51 |
Digital World Acquisition Corp. [Member] | Redeemable [Member] | |||
Numerator [Abstract] | |||
Allocation of net income (loss), as adjusted | $ (14,776,927) | $ (11,799,077) | |
Denominator [Abstract] | |||
Basic weighted average shares outstanding | 30,018,099 | 30,026,614 | |
Diluted weighted average shares outstanding | 30,018,099 | 30,026,614 | |
Basic net income (loss) per share of common stock | $ (0.49) | $ (0.39) | |
Diluted net income (loss) per share of common stock | $ (0.49) | $ (0.39) | |
Digital World Acquisition Corp. [Member] | Non Redeemable [Member] | |||
Numerator [Abstract] | |||
Allocation of net income (loss), as adjusted | $ (7,113,714) | $ (3,843,471) | |
Denominator [Abstract] | |||
Basic weighted average shares outstanding | 7,187,258 | 7,187,500 | |
Diluted weighted average shares outstanding | 7,187,258 | 7,187,500 | |
Basic net income (loss) per share of common stock | $ (0.99) | $ (0.53) | |
Diluted net income (loss) per share of common stock | $ (0.99) | $ (0.53) | |
[1]Loss per share attributable to common stockholders for diluted calculation is based on the Basic weighted shares as these are not dilutive. The Basic and diluted loss per share attributable to common stockholders are therefore the same. |
INITIAL PUBLIC OFFERING - Addit
INITIAL PUBLIC OFFERING - Additional Information (DWAC) (Details) - Digital World Acquisition Corp. [Member] | Sep. 08, 2021 USD ($) $ / shares shares |
Subsidiary, Sale of Stock [Line Items] | |
Number of warrants in a unit | shares | 1 |
Initial Public Offering | |
Subsidiary, Sale of Stock [Line Items] | |
Number of units sold | shares | 28,750,000 |
Purchase price, per unit | $ / shares | $ 10 |
Proceeds from Issuance Initial Public Offering | $ 287,500,000 |
Offering costs | 23,566,497 |
Deferred underwriting commissions | 10,062,500 |
Fair value of the representative shares | 1,437,500 |
Other offering costs | 4,168,029 |
Initial Public Offering | Anchor Investors [Member] | |
Subsidiary, Sale of Stock [Line Items] | |
Fair value of the representative shares | 7,677,450 |
Initial Public Offering | Officers and Directors [Member] | |
Subsidiary, Sale of Stock [Line Items] | |
Fair value of the representative shares | $ 221,018 |
Initial Public Offering | Class A Common Stock | |
Subsidiary, Sale of Stock [Line Items] | |
Number of shares in a unit | shares | 1 |
Initial Public Offering | Class A Common Stock | Public Warrants [Member] | |
Subsidiary, Sale of Stock [Line Items] | |
Number of shares issuable per warrant | shares | 1 |
Exercise price of warrants | $ / shares | $ 11.5 |
PRIVATE PLACEMENT - Additional
PRIVATE PLACEMENT - Additional Information (DWAC) (Details) - Digital World Acquisition Corp. [Member] - USD ($) | 12 Months Ended | |
Sep. 08, 2021 | Dec. 31, 2023 | |
Subsidiary, Sale of Stock [Line Items] | ||
Restrictions on transfer period of time after business combination completion | 30 days | |
Private Placement [Member] | ||
Subsidiary, Sale of Stock [Line Items] | ||
Restrictions on transfer period of time after business combination completion | 30 days | |
Private Placement [Member] | Sponsor [Member] | ||
Subsidiary, Sale of Stock [Line Items] | ||
Number of units sold | 1,133,484 | |
Purchase price, per unit | $ 10 | |
Gross proceeds from sale of units | $ 11,334,840 | |
Cash deposited into Trust Account by related party | 13,203,590 | |
Exceeds proceeds allocated over the proceeds of the Private Placement | $ 1,869,110 | |
IPO [Member] | ||
Subsidiary, Sale of Stock [Line Items] | ||
Number of units sold | 28,750,000 | |
Purchase price, per unit | $ 10 | |
IPO [Member] | Sponsor [Member] | ||
Subsidiary, Sale of Stock [Line Items] | ||
Number of units sold | 1,133,484 |
RELATED PARTY TRANSACTIONS - Fo
RELATED PARTY TRANSACTIONS - Founder Shares (DWAC) (Details) | 12 Months Ended | |||||||
Sep. 02, 2021 shares | Jul. 02, 2021 USD ($) shares | Dec. 31, 2023 d $ / shares shares | Dec. 31, 2021 USD ($) shares | Dec. 31, 2022 shares | Jan. 31, 2022 shares | Oct. 31, 2021 shares | Feb. 08, 2021 shares | |
Related Party Transaction [Line Items] | ||||||||
Common shares, shares issued (in shares) | 100,000,000 | 100,000,000 | 100,000,000 | 100,000,000 | 10,000 | |||
Common shares, shares outstanding | 100,000,000 | 100,000,000 | 100,000,000 | 100,000,000 | 10,000 | |||
Digital World Acquisition Corp. [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Restrictions on transfer period of time after business combination completion | 30 days | |||||||
Digital World Acquisition Corp. [Member] | Class B Common Stock [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Numbers of shares surrendered for no consideration | 1,437,500 | |||||||
Common shares, shares issued (in shares) | 7,187,500 | 7,158,025 | 7,187,500 | |||||
Common shares, shares outstanding | 7,187,500 | 7,158,025 | 7,187,500 | |||||
Digital World Acquisition Corp. [Member] | Founder Shares [Member] | Sponsor [Member] | Class B Common Stock [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Number of shares issued | 8,625,000 | |||||||
Aggregate purchase price | $ | $ 25,000 | |||||||
Share transfer between related parties, Value | $ | $ 221,000 | |||||||
Numbers of shares surrendered for no consideration | 1,437,500 | |||||||
Percentage of issued and outstanding shares after the Initial Public Offering collectively held by initial stockholders | 20% | |||||||
Restrictions on transfer period of time after business combination completion | 6 months | |||||||
Stock price trigger to transfer, assign or sell any shares or warrants of the company, after the completion of the initial business combination (in dollars per share) | $ / shares | $ 12 | |||||||
Threshold trading days for transfer, assign or sale of shares or warrants, after the completion of the initial business combination | d | 20 | |||||||
Threshold consecutive trading days for transfer, assign or sale of shares or warrants, after the completion of the initial business combination | d | 30 | |||||||
Threshold period after the business combination in which the 20 trading days within any 30 trading day period commences | 150 days | |||||||
Digital World Acquisition Corp. [Member] | Founder Shares [Member] | Sponsor [Member] | Class B Common Stock [Member] | Chief Financial Officer [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Number of shares transferred by sponsor | 10,000 | |||||||
Digital World Acquisition Corp. [Member] | Founder Shares [Member] | Sponsor [Member] | Class B Common Stock [Member] | Director [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Number of shares transferred by sponsor | 7,500 |
RELATED PARTY TRANSACTIONS - Ad
RELATED PARTY TRANSACTIONS - Additional Information (DWAC) (Details) | 12 Months Ended | |||||||||
Dec. 31, 2023 USD ($) $ / shares shares | Dec. 31, 2022 USD ($) shares | Nov. 20, 2023 USD ($) $ / shares | Jun. 02, 2023 USD ($) $ / shares | Apr. 21, 2023 USD ($) Note | Sep. 08, 2022 USD ($) $ / shares | May 12, 2022 USD ($) $ / shares | Jan. 31, 2022 shares | Oct. 31, 2021 shares | Feb. 08, 2021 shares | |
Related Party Transaction [Line Items] | ||||||||||
Common shares, shares outstanding | shares | 100,000,000 | 100,000,000 | 100,000,000 | 100,000,000 | 10,000 | |||||
Digital World Acquisition Corp. [Member] | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Expenses recorded | $ 12,240,732 | $ 8,716,023 | ||||||||
Outstanding | 3,883,945 | 2,875,000 | ||||||||
Advances - related parties | 41,000 | 525,835 | ||||||||
Litigation settlement amount awarded to other party | 500,000 | |||||||||
Digital World Acquisition Corp. [Member] | Digital World Convertible Notes [Member] | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Non-interest bearing convertible promissory notes payable | $ 40,000,000 | |||||||||
Warrants outstanding | shares | 0.5 | |||||||||
Price per unit | $ / shares | $ 8 | |||||||||
Outstanding | $ 1,049,945 | $ 500,000 | ||||||||
Debt instrument conversion price | $ / shares | $ 10 | $ 10 | ||||||||
Number of convertible notes | Note | 2 | |||||||||
Digital World Acquisition Corp. [Member] | Digital World Convertible Notes [Member] | Digital World Class A Common Stock [Member] | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Common shares, shares outstanding | shares | 1 | |||||||||
Digital World Acquisition Corp. [Member] | Administrative Support Agreement [Member] | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Expenses per month | $ 15,000 | |||||||||
Expenses recorded | 45,000 | 180,000 | ||||||||
Digital World Acquisition Corp. [Member] | Founder Shares [Member] | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Debt instrument face amount | $ 10,000,000 | |||||||||
Digital World Acquisition Corp. [Member] | Founder Shares [Member] | Two Million Dollars Note [Member] | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Debt instrument face amount | 2,000,000 | |||||||||
Digital World Acquisition Corp. [Member] | Founder Shares [Member] | Ten Million Dollars Note [Member] | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Debt instrument face amount | 10,000,000 | |||||||||
Digital World Acquisition Corp. [Member] | Note [Member] | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Debt instrument face amount | $ 2,000,000 | |||||||||
Digital World Acquisition Corp. [Member] | Note [Member] | Digital World Convertible Notes [Member] | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Debt instrument conversion price | $ / shares | $ 10 | |||||||||
Digital World Acquisition Corp. [Member] | Administrative Support Agreement with Renatus LLC [Member] | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Expenses recorded | 105,000 | 0 | ||||||||
Digital World Acquisition Corp. [Member] | Agreement with Law Firm [Member] | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Note payable | 500,000 | |||||||||
Digital World Acquisition Corp. [Member] | Sponsor [Member] | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Working Capital Loan Warrant | 1,000,000 | |||||||||
Amount paid behalf of the company | 470,835 | |||||||||
Amount paid directly to the company | 41,000 | |||||||||
Proceeds From Related Party Advances | 41,000 | 425,835 | ||||||||
Digital World Acquisition Corp. [Member] | Sponsor [Member] | Digital World Convertible Notes [Member] | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Outstanding | $ 1,125,700 | $ 30,000,000 | ||||||||
Debt instrument conversion price | $ / shares | $ 10 | $ 10 | $ 10 | |||||||
Debt instrument face amount | $ 2,875,000 | |||||||||
Long-Term Debt, Gross | $ 2,875,000 | 2,875,000 | ||||||||
Digital World Acquisition Corp. [Member] | Sponsor [Member] | Note [Member] | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Debt instrument face amount | $ 1,125,700 | $ 2,875,000 | ||||||||
Digital World Acquisition Corp. [Member] | Sponsor [Member] | Note [Member] | Tranche One [Member] | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Debt instrument face amount | 625,700 | |||||||||
Digital World Acquisition Corp. [Member] | Sponsor [Member] | Note [Member] | Tranche Two [Member] | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Debt instrument face amount | $ 500,000 | |||||||||
Digital World Acquisition Corp. [Member] | Director [Member] | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Proceeds From Related Party Advances | 0 | 100,000 | ||||||||
Advances - related parties | 100,000 | |||||||||
Digital World Acquisition Corp. [Member] | Related Party [Member] | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Accounts payable, related parties | 0 | |||||||||
Digital World Acquisition Corp. [Member] | Related Party [Member] | Administrative Support Agreement [Member] | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Accounts payable, related parties | 221,000 | $ 176,000 | ||||||||
Digital World Acquisition Corp. [Member] | Related Party [Member] | Note [Member] | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Outstanding | 1,232,000 | |||||||||
Digital World Acquisition Corp. [Member] | Sponsor or its affiliates or the Company's officers or directors [Member] | Digital World Convertible Notes [Member] | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Non-interest bearing convertible promissory notes payable | 30,000,000 | |||||||||
Digital World Acquisition Corp. [Member] | To either third parties providing services or making loans to the company or to the sponsor or its affiliates or the company's officers or directors [Member] | Digital World Convertible Notes [Member] | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Non-interest bearing convertible promissory notes payable | $ 10,000,000 |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - Additional Information (DWAC) (Details) | 12 Months Ended | |||
Jul. 20, 2023 USD ($) | Sep. 08, 2021 shares | Dec. 31, 2023 USD ($) Securities shares | Dec. 31, 2022 USD ($) | |
Subsidiary, Sale of Stock [Line Items] | ||||
Loss contingency accrual provision | $ 0 | |||
Digital World Acquisition Corp. [Member] | ||||
Subsidiary, Sale of Stock [Line Items] | ||||
Maximum number of demands for registration of securities | Securities | 3 | |||
Percentage of cash underwriting discount based on gross proceeds from IPO | (1.25%) | |||
Aggregate cash underwriting discount if over-allotment is exercised in full | $ 3,593,750 | |||
Percentage of deferred underwriting commission based on gross proceeds from IPO | (3.50%) | |||
Deferred underwriting commission | $ 10,062,500 | |||
Period of right of first refusal from the closing of business combination | 24 months | |||
Litigation settlement expense greater than actual fees | $ 8,000,000 | |||
Percentage of litigation settlement expense greater than actual fees | 130% | |||
Settlement In principle amount | $ 18,000,000 | $ 5,100,000 | $ 0 | |
Digital World Acquisition Corp. [Member] | Cease and Desist Order [Member] | ||||
Subsidiary, Sale of Stock [Line Items] | ||||
Loss contingency accrual provision | 18,000,000 | |||
Digital World Acquisition Corp. [Member] | Directors and Officers Liability Insurance [Member] | ||||
Subsidiary, Sale of Stock [Line Items] | ||||
Malpractice insurance annual coverage limit | 2,500,000 | |||
Malpractice insurance excess retention amount | 5,000,000 | |||
Increase decrease In liability | $ 1,100,000 | |||
Digital World Acquisition Corp. [Member] | Common Class A [Member] | ||||
Subsidiary, Sale of Stock [Line Items] | ||||
Percentage of shares issuable based on stock issued in IPO | (0.50%) | |||
Number of shares issuable | shares | 143,750 | |||
Digital World Acquisition Corp. [Member] | Over-Allotment Option [Member] | ||||
Subsidiary, Sale of Stock [Line Items] | ||||
Number of units sold | shares | 3,750,000 |
STOCKHOLDERS' DEFICIT - Preferr
STOCKHOLDERS' DEFICIT - Preferred Stock Shares (DWAC) (Details) - Digital World Acquisition Corp. [Member] - $ / shares | Dec. 31, 2023 | Dec. 31, 2022 |
Legal Entity [Line Items] | ||
Preferred shares, shares authorized | 1,000,000 | 1,000,000 |
Preferred stock, par value, (per share) | $ 0.0001 | $ 0.0001 |
Preferred shares, shares issued | 0 | 0 |
Preferred shares, shares outstanding | 0 | 0 |
STOCKHOLDERS' DEFICIT - Common
STOCKHOLDERS' DEFICIT - Common Stock Shares (DWAC) (Details) | 12 Months Ended | |||||||
Sep. 02, 2021 shares | Dec. 31, 2023 USD ($) Vote $ / shares shares | Dec. 31, 2022 $ / shares shares | Feb. 16, 2023 shares | Jan. 31, 2022 $ / shares shares | Oct. 31, 2021 $ / shares shares | Sep. 08, 2021 shares | Feb. 08, 2021 $ / shares shares | |
Class of Stock [Line Items] | ||||||||
Common shares, shares authorized (in shares) | 120,000,000 | 120,000,000 | 1,000,000,000 | 120,000,000 | 110,000,000 | |||
Common shares, par value (in dollars per share) | $ / shares | $ 0.000001 | $ 0.000001 | $ 0.000001 | $ 0.000001 | $ 0.000001 | |||
Common shares, shares issued (in shares) | 100,000,000 | 100,000,000 | 100,000,000 | 100,000,000 | 10,000 | |||
Common shares, shares outstanding (in shares) | 100,000,000 | 100,000,000 | 100,000,000 | 100,000,000 | 10,000 | |||
Digital World Acquisition Corp. [Member] | Class A Common Stock Not Subject to Redemption [Member] | ||||||||
Class of Stock [Line Items] | ||||||||
Common shares, shares issued (in shares) | 1,277,234 | 1,277,234 | ||||||
Common shares, shares outstanding (in shares) | 1,277,234 | 1,277,234 | ||||||
Digital World Acquisition Corp. [Member] | Class A Common Stock Subject to Redemption [Member] | ||||||||
Class of Stock [Line Items] | ||||||||
Class A common stock subject to possible redemption, issued (in shares) | 28,715,597 | 28,744,342 | ||||||
Class A common stock subject to possible redemption, outstanding (in shares) | 28,715,597 | 28,744,342 | ||||||
Digital World Acquisition Corp. [Member] | Class A Common Stock | ||||||||
Class of Stock [Line Items] | ||||||||
Common shares, shares authorized (in shares) | 200,000,000 | 200,000,000 | ||||||
Common shares, par value (in dollars per share) | $ / shares | $ 0.0001 | $ 0.0001 | ||||||
Common shares, votes per share | Vote | 1 | |||||||
Class A common stock subject to possible redemption, issued (in shares) | 28,715,597 | 28,750,000 | 143,750 | |||||
Class A common stock subject to possible redemption, outstanding (in shares) | 28,715,597 | 28,750,000 | ||||||
Issuance of Class A common stock to representative | $ | $ 1,437,500 | |||||||
Issuance of Class A common stock to representative (in shares) | 1,277,234 | 1,277,234 | ||||||
Digital World Acquisition Corp. [Member] | Class B Common Stock | ||||||||
Class of Stock [Line Items] | ||||||||
Common shares, shares authorized (in shares) | 10,000,000 | 10,000,000 | ||||||
Common shares, par value (in dollars per share) | $ / shares | $ 0.0001 | $ 0.0001 | ||||||
Common shares, votes per share | Vote | 1 | |||||||
Common shares, shares issued (in shares) | 7,187,500 | 7,158,025 | 7,187,500 | |||||
Common shares, shares outstanding (in shares) | 7,187,500 | 7,158,025 | 7,187,500 | |||||
Transferred shares to qualified institutional buyers | 1,650,000 | |||||||
Ratio to be applied to the stock in the conversion | 0.20 | |||||||
Numbers of shares surrendered for no consideration | 1,437,500 | |||||||
Stock conversion basis at time of business combination | 1 |
STOCKHOLDERS' DEFICIT - Warrant
STOCKHOLDERS' DEFICIT - Warrants (DWAC) (Details) - Digital World Acquisition Corp. [Member] | 12 Months Ended |
Dec. 31, 2023 $ / shares | |
Class of Warrant or Right [Line Items] | |
Adjustment one of redemption price of stock based on market value and newly issued price (as a percent) | 115% |
Trading day period to calculate volume weighted average trading price following notice of redemption | 30 days |
Redemption of Warrants When the Price per Class A Ordinary Share Equals or Exceeds $18.00 [Member] | |
Class of Warrant or Right [Line Items] | |
Redemption trigger price will be adjusted (per share) | $ 18 |
Adjustment one of redemption price of stock based on market value and newly issued price (as a percent) | 180% |
Public Warrants [Member] | |
Class of Warrant or Right [Line Items] | |
Warrant exercise period condition one | 30 days |
Public Warrants expiration term | 5 years |
Threshold trading days for redemption of public warrants | 20 days |
Share Price | $ 9.2 |
Percentage of gross new proceeds to total equity proceeds used to measure dilution of warrant | 0.60 |
Public Warrants [Member] | Redemption of Warrants When the Price per Class A Ordinary Share Equals or Exceeds $18.00 [Member] | |
Class of Warrant or Right [Line Items] | |
Redemption price per public warrant (in dollars per share) | $ 0.01 |
Redemption period | 30 days |
Warrant redemption condition minimum share price | $ 18 |
TAXES - Summary of Company's Ne
TAXES - Summary of Company's Net Deferred Tax Assets (DWAC) (Details) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Deferred Tax Assets, Net [Abstract] | ||
Net operating losses | $ 9,474,744 | $ 4,478,110 |
Total deferred tax assets | 13,688,500 | 6,288,600 |
Valuation Allowance | (13,682,300) | (1,797,200) |
Deferred tax asset, net of allowance | 0 | 0 |
Digital World Acquisition Corp. [Member] | ||
Deferred Tax Assets, Net [Abstract] | ||
Net operating losses | 0 | 0 |
Legal settlement | 4,562,100 | 0 |
Start-up costs | 8,716,458 | 5,190,046 |
Total deferred tax assets | 13,278,558 | 5,190,046 |
Valuation Allowance | (13,278,558) | (5,190,046) |
Deferred tax asset, net of allowance | $ 0 | $ 0 |
TAXES - Summary of Income Tax P
TAXES - Summary of Income Tax Provision (DWAC) (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Federal | ||
Income tax provision | $ 1,100 | $ 200 |
Digital World Acquisition Corp. [Member] | ||
Federal | ||
Current | (3,742,611) | (3,078,967) |
Deferred | 0 | 0 |
State and local Current | (796,963) | (637,053) |
Deferred | 0 | 0 |
Change in valuation allowance | 8,088,176 | 4,695,494 |
Income tax provision | $ 3,548,602 | $ 979,475 |
TAXES - Summary of Reconciliati
TAXES - Summary of Reconciliation of Federal Income Tax Rate (DWAC) (Details) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Legal Entity [Line Items] | ||
Federal income taxes | 21% | |
Digital World Acquisition Corp. [Member] | ||
Legal Entity [Line Items] | ||
Federal income taxes | 21% | 21% |
State tax, net of Federal benefit | 4.35% | 4.35% |
Change in valuation allowance | (44.10%) | (32.03%) |
Other | (0.60%) | 0% |
Provision for income tax | (19.35%) | (6.68%) |
TAXES - Summary of Reconcilia_2
TAXES - Summary of Reconciliation of Federal Income Tax Rate (Parenthetical) (DWAC) (Details) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Legal Entity [Line Items] | ||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21% | |
Digital World Acquisition Corp. [Member] | ||
Legal Entity [Line Items] | ||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21% | 21% |
TAXES - Additional Information
TAXES - Additional Information (DWAC) (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Federal statutory income tax rate | 21% | |
Digital World Acquisition Corp. [Member] | ||
Change in valuation allowance | $ 8,088,176 | $ 4,695,494 |
Federal statutory income tax rate | 21% | 21% |
Digital World Acquisition Corp. [Member] | Domestic And State Authority [Member] | ||
Operating loss carry forwards | $ 0 | $ 0 |
SUBSEQUENT EVENTS (DWAC) (Detai
SUBSEQUENT EVENTS (DWAC) (Details) | 12 Months Ended | ||||||||||||||||||||||||||||
Mar. 22, 2024 $ / shares shares | Mar. 18, 2024 USD ($) | Mar. 08, 2024 | Mar. 05, 2024 | Feb. 27, 2024 USD ($) | Feb. 08, 2024 USD ($) $ / shares shares | Feb. 07, 2024 $ / shares shares | Feb. 06, 2024 USD ($) PromissoryNote | Jan. 22, 2024 USD ($) $ / shares shares | Oct. 20, 2023 | Sep. 08, 2021 $ / shares shares | Dec. 31, 2023 USD ($) $ / shares shares | Dec. 31, 2022 USD ($) $ / shares shares | Mar. 26, 2024 | Feb. 21, 2024 USD ($) | Jan. 18, 2024 USD ($) | Dec. 29, 2023 USD ($) | Dec. 28, 2023 USD ($) | Nov. 24, 2023 USD ($) | Nov. 20, 2023 $ / shares | Sep. 05, 2023 $ / shares shares | Aug. 23, 2023 USD ($) | Jul. 07, 2023 USD ($) | Jun. 26, 2023 USD ($) | Jun. 06, 2023 USD ($) | Nov. 22, 2022 $ / shares shares | Jan. 31, 2022 shares | Oct. 31, 2021 shares | Feb. 08, 2021 shares | |
Subsequent Events [Abstract] | |||||||||||||||||||||||||||||
Common shares, shares issued | 100,000,000 | 100,000,000 | 100,000,000 | 100,000,000 | 10,000 | ||||||||||||||||||||||||
Common shares, shares outstanding | 100,000,000 | 100,000,000 | 100,000,000 | 100,000,000 | 10,000 | ||||||||||||||||||||||||
Convertible Promissory Notes [Member] | |||||||||||||||||||||||||||||
Subsequent Events [Abstract] | |||||||||||||||||||||||||||||
Aggregate principal amount | $ | $ 40,700,000 | $ 38,200,000 | $ 1,000,000 | $ 500,000 | $ 500,000 | $ 2,500,000 | $ 6,000,000 | $ 2,000,000 | $ 2,000,000 | ||||||||||||||||||||
Subsequent Event [Member] | Convertible Promissory Notes [Member] | |||||||||||||||||||||||||||||
Subsequent Events [Abstract] | |||||||||||||||||||||||||||||
Aggregate principal amount | $ | $ 1,000,000 | $ 1,205,000 | |||||||||||||||||||||||||||
Digital World Acquisition Corp. [Member] | |||||||||||||||||||||||||||||
Subsequent Events [Abstract] | |||||||||||||||||||||||||||||
Number of warrants in a unit | 1 | ||||||||||||||||||||||||||||
Term of plaintiff allegation | 6 months | ||||||||||||||||||||||||||||
Amount drawn | $ | $ 1,773,000 | $ 503,441 | |||||||||||||||||||||||||||
Digital World Acquisition Corp. [Member] | Public Stockholders [Member] | |||||||||||||||||||||||||||||
Subsequent Events [Abstract] | |||||||||||||||||||||||||||||
Ownership percentage | 21.90% | ||||||||||||||||||||||||||||
Digital World Acquisition Corp. [Member] | Convertible Notes [Member] | |||||||||||||||||||||||||||||
Subsequent Events [Abstract] | |||||||||||||||||||||||||||||
Debt instrument conversion price | $ / shares | $ 10 | $ 10 | |||||||||||||||||||||||||||
Digital World Acquisition Corp. [Member] | Common Class A [Member] | |||||||||||||||||||||||||||||
Subsequent Events [Abstract] | |||||||||||||||||||||||||||||
Temporary equity stock shares subject to redemption | 28,745 | 5,658 | |||||||||||||||||||||||||||
Temporary equity, redemption price per share | $ / shares | $ 10.75 | $ 10.4 | $ 10.68 | $ 10.41 | |||||||||||||||||||||||||
Digital World Acquisition Corp. [Member] | Digital World Class A Common Stock [Member] | Convertible Notes [Member] | |||||||||||||||||||||||||||||
Subsequent Events [Abstract] | |||||||||||||||||||||||||||||
Common shares, shares outstanding | 1 | ||||||||||||||||||||||||||||
Digital World Acquisition Corp. [Member] | IPO [Member] | Common Class A [Member] | |||||||||||||||||||||||||||||
Subsequent Events [Abstract] | |||||||||||||||||||||||||||||
Number of shares in a unit | 1 | ||||||||||||||||||||||||||||
Digital World Acquisition Corp. [Member] | IPO [Member] | Common Class A [Member] | Public Warrants [Member] | |||||||||||||||||||||||||||||
Subsequent Events [Abstract] | |||||||||||||||||||||||||||||
Number of shares issuable per warrant | 1 | ||||||||||||||||||||||||||||
Exercise price of warrant (in dollars per share) | $ / shares | $ 11.5 | ||||||||||||||||||||||||||||
Digital World Acquisition Corp. [Member] | Subsequent Event [Member] | |||||||||||||||||||||||||||||
Subsequent Events [Abstract] | |||||||||||||||||||||||||||||
Number of promissory notes | PromissoryNote | 6 | ||||||||||||||||||||||||||||
Debt instrument interest rate | 0% | ||||||||||||||||||||||||||||
Temporary equity stock shares subject to redemption | 4,939 | ||||||||||||||||||||||||||||
Temporary equity, par value (per share) | $ / shares | $ 0.0001 | ||||||||||||||||||||||||||||
Temporary equity, redemption price per share | $ / shares | $ 10.92 | ||||||||||||||||||||||||||||
Common shares, shares issued | 136,700,583 | ||||||||||||||||||||||||||||
Common shares, shares outstanding | 136,700,583 | ||||||||||||||||||||||||||||
Digital World Acquisition Corp. [Member] | Subsequent Event [Member] | President [Member] | |||||||||||||||||||||||||||||
Subsequent Events [Abstract] | |||||||||||||||||||||||||||||
Ownership percentage | 57.30% | ||||||||||||||||||||||||||||
Digital World Acquisition Corp. [Member] | Subsequent Event [Member] | Convertible Notes [Member] | |||||||||||||||||||||||||||||
Subsequent Events [Abstract] | |||||||||||||||||||||||||||||
Amount drawn | $ | $ 40,000,000 | ||||||||||||||||||||||||||||
Digital World Acquisition Corp. [Member] | Subsequent Event [Member] | Public Warrants [Member] | |||||||||||||||||||||||||||||
Subsequent Events [Abstract] | |||||||||||||||||||||||||||||
Common stock in connection with future issuance | 46,250,000 | ||||||||||||||||||||||||||||
Digital World Acquisition Corp. [Member] | Subsequent Event [Member] | Private Warrants [Member] | |||||||||||||||||||||||||||||
Subsequent Events [Abstract] | |||||||||||||||||||||||||||||
Warrants issuable in connection with digital world alternative financing notes | 3,125,000 | ||||||||||||||||||||||||||||
Digital World Acquisition Corp. [Member] | Subsequent Event [Member] | Patrick Orlando [Member] | |||||||||||||||||||||||||||||
Subsequent Events [Abstract] | |||||||||||||||||||||||||||||
Conversion rate | 2 | 1.34 | |||||||||||||||||||||||||||
Penalty amount | $ | $ 18,000,000 | ||||||||||||||||||||||||||||
Claimed conversion rate | 1.78 | ||||||||||||||||||||||||||||
Period for court to resolve action | 150 days | ||||||||||||||||||||||||||||
Digital World Acquisition Corp. [Member] | Subsequent Event [Member] | Convertible Promissory Notes [Member] | |||||||||||||||||||||||||||||
Subsequent Events [Abstract] | |||||||||||||||||||||||||||||
Debt instrument interest rate | 8% | ||||||||||||||||||||||||||||
Number of warrants in a unit | 0.5 | ||||||||||||||||||||||||||||
Debt instrument conversion price | $ / shares | $ 8 | ||||||||||||||||||||||||||||
Number of redemption right notice days | 10 days | ||||||||||||||||||||||||||||
Percentage of redemption price | 130% | ||||||||||||||||||||||||||||
Number of trading days | 3 days | ||||||||||||||||||||||||||||
Number of Consecutive Trading Days | 15 days | ||||||||||||||||||||||||||||
Percentage of investors commitment | 20% | ||||||||||||||||||||||||||||
Percentage of final drawdown of investors commitment | 80% | ||||||||||||||||||||||||||||
Digital World Acquisition Corp. [Member] | Subsequent Event [Member] | Common Stock [Member] | |||||||||||||||||||||||||||||
Subsequent Events [Abstract] | |||||||||||||||||||||||||||||
Number of shares issued indemnification provisions under merger agreement | 614,640 | ||||||||||||||||||||||||||||
Number of shares issued pursuant to disputed shares escrow agreement | 4,667,033 | ||||||||||||||||||||||||||||
Digital World Acquisition Corp. [Member] | Subsequent Event [Member] | Common Class A [Member] | Convertible Promissory Notes [Member] | |||||||||||||||||||||||||||||
Subsequent Events [Abstract] | |||||||||||||||||||||||||||||
Number of shares in a unit | 1 | ||||||||||||||||||||||||||||
Digital World Acquisition Corp. [Member] | Subsequent Event [Member] | Digital World Class A Common Stock [Member] | |||||||||||||||||||||||||||||
Subsequent Events [Abstract] | |||||||||||||||||||||||||||||
Number of shares in a unit | 1 | ||||||||||||||||||||||||||||
Number of warrants in a unit | 0.5 | ||||||||||||||||||||||||||||
Temporary equity, par value (per share) | $ / shares | $ 0.0001 | ||||||||||||||||||||||||||||
Temporary equity, redemption price per share | $ / shares | $ 11.5 | ||||||||||||||||||||||||||||
Digital World Acquisition Corp. [Member] | Subsequent Event [Member] | Digital World Class B Common Stock [Member] | |||||||||||||||||||||||||||||
Subsequent Events [Abstract] | |||||||||||||||||||||||||||||
Convertible notes issued (in shares) | 1.348 | ||||||||||||||||||||||||||||
Digital World Acquisition Corp. [Member] | Subsequent Event [Member] | Maximum [Member] | |||||||||||||||||||||||||||||
Subsequent Events [Abstract] | |||||||||||||||||||||||||||||
Aggregate principal amount | $ | $ 770,000 | ||||||||||||||||||||||||||||
Digital World Acquisition Corp. [Member] | Subsequent Event [Member] | Maximum [Member] | Convertible Promissory Notes [Member] | |||||||||||||||||||||||||||||
Subsequent Events [Abstract] | |||||||||||||||||||||||||||||
Aggregate principal amount | $ | $ 50,000,000 | ||||||||||||||||||||||||||||
Digital World Acquisition Corp. [Member] | Subsequent Event [Member] | Board of Directors and Officers [Member] | |||||||||||||||||||||||||||||
Subsequent Events [Abstract] | |||||||||||||||||||||||||||||
Debt instrument interest rate | 0% | ||||||||||||||||||||||||||||
Debt instrument conversion price | $ / shares | $ 10 | ||||||||||||||||||||||||||||
Convertible notes issued (in shares) | 9,651,250 | ||||||||||||||||||||||||||||
Digital World Acquisition Corp. [Member] | Subsequent Event [Member] | Renatus LLC [Member] | |||||||||||||||||||||||||||||
Subsequent Events [Abstract] | |||||||||||||||||||||||||||||
Amount drawn | $ | $ 625,000 | ||||||||||||||||||||||||||||
Digital World Acquisition Corp. [Member] | Subsequent Event [Member] | Warrant Subscription Agreement [Member] | IPO [Member] | |||||||||||||||||||||||||||||
Subsequent Events [Abstract] | |||||||||||||||||||||||||||||
Warrants issued (in shares) | 3,050,000 | ||||||||||||||||||||||||||||
Digital World Acquisition Corp. [Member] | Subsequent Event [Member] | Warrant Subscription Agreement [Member] | IPO [Member] | Common Class A [Member] | |||||||||||||||||||||||||||||
Subsequent Events [Abstract] | |||||||||||||||||||||||||||||
Number of shares issuable per warrant | 1 | ||||||||||||||||||||||||||||
Exercise price of warrant (in dollars per share) | $ / shares | $ 11.5 | ||||||||||||||||||||||||||||
Digital World Acquisition Corp. [Member] | Subsequent Event [Member] | Services Agreement [Member] | |||||||||||||||||||||||||||||
Subsequent Events [Abstract] | |||||||||||||||||||||||||||||
Expense reimbursement claim | $ | $ 1,000,000 | ||||||||||||||||||||||||||||
Digital World Acquisition Corp. [Member] | Subsequent Event [Member] | Trump Media Technology Group Securityholders [Member] | Common Stock [Member] | |||||||||||||||||||||||||||||
Subsequent Events [Abstract] | |||||||||||||||||||||||||||||
Number of shares issued | 95,354,534 | ||||||||||||||||||||||||||||
Digital World Acquisition Corp. [Member] | Subsequent Event [Member] | Trump Media Technology Group Convertible Notes Holder [Member] | |||||||||||||||||||||||||||||
Subsequent Events [Abstract] | |||||||||||||||||||||||||||||
Number of shares issued | 7,854,534 | ||||||||||||||||||||||||||||
Digital World Acquisition Corp. [Member] | Subsequent Event [Member] | Digital World Convertible Notes Holder [Member] | Private Warrants [Member] | |||||||||||||||||||||||||||||
Subsequent Events [Abstract] | |||||||||||||||||||||||||||||
Number of shares issued | 3,424,510 | ||||||||||||||||||||||||||||
Digital World Acquisition Corp. [Member] | Subsequent Event [Member] | Digital World Convertible Notes Holder [Member] | Common Stock [Member] | |||||||||||||||||||||||||||||
Subsequent Events [Abstract] | |||||||||||||||||||||||||||||
Number of shares issued | 1,709,145 |
SIGNIFICANT ACCOUNTING POLICI_4
SIGNIFICANT ACCOUNTING POLICIES AND PRACTICES, Liquidity and Going Concern (Details) | 12 Months Ended | 35 Months Ended | ||||||||||||||||||
Dec. 29, 2023 USD ($) | Dec. 28, 2023 USD ($) | Dec. 22, 2023 USD ($) | Dec. 21, 2023 USD ($) | Nov. 24, 2023 USD ($) | Nov. 20, 2023 Defendant | Oct. 30, 2023 | Sep. 05, 2023 | Jul. 20, 2023 Defendant | Jul. 07, 2023 USD ($) | Jun. 29, 2023 USD ($) Individual | Jun. 26, 2023 USD ($) | Dec. 31, 2023 USD ($) Note shares | Dec. 31, 2022 USD ($) shares | Dec. 31, 2023 USD ($) shares | Aug. 23, 2023 USD ($) | Jun. 06, 2023 USD ($) | Feb. 16, 2023 shares | Jan. 31, 2022 shares | Oct. 31, 2021 shares | |
Liquidity and Going Concern [Abstract] | ||||||||||||||||||||
Cash from operations | $ (9,733,500) | $ (24,201,500) | $ 37,732,000 | |||||||||||||||||
Proceeds from issuance of convertible promissory notes | $ 3,500,000 | $ 15,360,000 | $ 40,460,000 | |||||||||||||||||
Common stock, shares authorized (in shares) | shares | 120,000,000 | 120,000,000 | 120,000,000 | 1,000,000,000 | 120,000,000 | 110,000,000 | ||||||||||||||
Outstanding demands for repayment | $ 1,000,000 | $ 0 | ||||||||||||||||||
Number of renewed additional days | 180 days | |||||||||||||||||||
Number of individuals | Individual | 3 | |||||||||||||||||||
Number of defendants | Defendant | 20 | 3 | ||||||||||||||||||
Initial business combination aggregate term | 12 months | |||||||||||||||||||
Number of defendant agreed to resolve dispute | Defendant | 1 | |||||||||||||||||||
Convertible Promissory Note [Member] | ||||||||||||||||||||
Liquidity and Going Concern [Abstract] | ||||||||||||||||||||
Maturity date | Jun. 29, 2025 | Jul. 24, 2023 | Jun. 23, 2023 | May 19, 2023 | ||||||||||||||||
Outstanding demands for repayment | $ 0 | |||||||||||||||||||
Face amount | $ 1,000,000 | $ 500,000 | $ 500,000 | $ 6,000,000 | $ 2,000,000 | $ 40,700,000 | $ 38,200,000 | $ 40,700,000 | $ 2,500,000 | $ 2,000,000 | ||||||||||
Extended maturity date | Aug. 18, 2024 | Jun. 23, 2024 | May 19, 2024 | |||||||||||||||||
Additional face amount | $ 500,000 | |||||||||||||||||||
First Convertible Promissory Notes [Member] | ||||||||||||||||||||
Liquidity and Going Concern [Abstract] | ||||||||||||||||||||
Maturity date | Dec. 24, 2024 | May 31, 2023 | ||||||||||||||||||
Face amount | $ 4,200,000 | |||||||||||||||||||
Second Convertible Promissory Notes [Member] | ||||||||||||||||||||
Liquidity and Going Concern [Abstract] | ||||||||||||||||||||
Maturity date | Aug. 03, 2023 | |||||||||||||||||||
Face amount | $ 2,000,000 | |||||||||||||||||||
Repayments of debt | $ 1,000,000 | |||||||||||||||||||
Number of business days | 5 days | |||||||||||||||||||
Other Convertible Promissory Notes [Member] | ||||||||||||||||||||
Liquidity and Going Concern [Abstract] | ||||||||||||||||||||
Face amount | $ 14,293,000 | 14,293,000 | ||||||||||||||||||
Number of Other Promissory Notes | Note | 8 | |||||||||||||||||||
Broker's Note One [Member] | ||||||||||||||||||||
Liquidity and Going Concern [Abstract] | ||||||||||||||||||||
Maturity date | May 07, 2023 | |||||||||||||||||||
Face amount | $ 140,000 | 140,000 | ||||||||||||||||||
Broker's Note Two [Member] | ||||||||||||||||||||
Liquidity and Going Concern [Abstract] | ||||||||||||||||||||
Maturity date | May 26, 2023 | |||||||||||||||||||
Face amount | $ 67,000 | $ 67,000 | ||||||||||||||||||
Minimum [Member] | ||||||||||||||||||||
Liquidity and Going Concern [Abstract] | ||||||||||||||||||||
Debt term | 18 months | |||||||||||||||||||
Accrued interest rate | 5% | 5% | ||||||||||||||||||
Bridge funding leading for merger | $ 5,000,000 | |||||||||||||||||||
Minimum [Member] | Other Convertible Promissory Notes [Member] | ||||||||||||||||||||
Liquidity and Going Concern [Abstract] | ||||||||||||||||||||
Maturity date | Jun. 30, 2023 | |||||||||||||||||||
Maximum [Member] | ||||||||||||||||||||
Liquidity and Going Concern [Abstract] | ||||||||||||||||||||
Debt term | 36 months | |||||||||||||||||||
Accrued interest rate | 10% | 10% | ||||||||||||||||||
Bridge funding leading for merger | $ 60,000,000 | |||||||||||||||||||
Maximum [Member] | Other Convertible Promissory Notes [Member] | ||||||||||||||||||||
Liquidity and Going Concern [Abstract] | ||||||||||||||||||||
Maturity date | Nov. 23, 2023 | |||||||||||||||||||
Settlement Agreement [Member] | ||||||||||||||||||||
Liquidity and Going Concern [Abstract] | ||||||||||||||||||||
Paid to former employee | $ 25,000 | |||||||||||||||||||
Guarantee Rumble Agreement [Member] | ||||||||||||||||||||
Liquidity and Going Concern [Abstract] | ||||||||||||||||||||
Percentage of gross revenue from sale | 70% | |||||||||||||||||||
Guarantee Rumble Agreement [Member] | Minimum [Member] | ||||||||||||||||||||
Liquidity and Going Concern [Abstract] | ||||||||||||||||||||
Percentage of aggregate number of paid advertisements | 0.85 |
SIGNIFICANT ACCOUNTING POLICI_5
SIGNIFICANT ACCOUNTING POLICIES AND PRACTICES, Useful Lives for Property, Plant and Equipment (Details) - Furniture and Computer Equipment [Member] | Dec. 31, 2023 |
Minimum [Member] | |
Property, Plant and Equipment [Abstract] | |
Estimated useful lives | 2 years |
Maximum [Member] | |
Property, Plant and Equipment [Abstract] | |
Estimated useful lives | 5 years |
SIGNIFICANT ACCOUNTING POLICI_6
SIGNIFICANT ACCOUNTING POLICIES AND PRACTICES, Capitalized Software Costs (Details) | Dec. 31, 2023 USD ($) |
Capitalized Software Costs [Abstract] | |
Capitalized software costs | $ 0 |
Minimum [Member] | |
Capitalized Software Costs [Abstract] | |
Estimated useful life | 5 years |
Maximum [Member] | |
Capitalized Software Costs [Abstract] | |
Estimated useful life | 10 years |
SIGNIFICANT ACCOUNTING POLICI_7
SIGNIFICANT ACCOUNTING POLICIES AND PRACTICES, Commitments and Contingencies (Details) $ in Thousands | Dec. 31, 2023 USD ($) |
Accounting Policies [Abstract] | |
Loss contingencies | $ 0 |
ACQUISITION (Details)
ACQUISITION (Details) | Oct. 31, 2021 |
T Media Tech LLC [Member] | |
Business Combination, Description [Abstract] | |
Ownership percentage | 100% |
PROPERTY, PLANT AND EQUIPMENT_2
PROPERTY, PLANT AND EQUIPMENT (Details) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Property, Plant and Equipment, Net [Abstract] | ||
Accumulated depreciation | $ (126,100) | $ (65,700) |
Property, plant and equipment, net | 29,200 | 87,400 |
Furniture and Fixtures [Member] | ||
Property, Plant and Equipment, Net [Abstract] | ||
Property, plant and equipment, gross | 34,500 | 34,500 |
Computer Equipment [Member] | ||
Property, Plant and Equipment, Net [Abstract] | ||
Property, plant and equipment, gross | $ 120,800 | $ 118,600 |
LEASES (Details)
LEASES (Details) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Minimum Commitment Under Company leases [Abstract] | ||
Next year | $ 193,500 | $ 201,300 |
Year 2-5 | 217,100 | 397,500 |
Total | $ 410,600 | $ 598,800 |
INCOME TAXES, Income Tax Benefi
INCOME TAXES, Income Tax Benefit (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | ||
U.S. Federal statutory income tax rate | 21% | |
Income Tax Expense [Abstract] | ||
U.S. Statutory federal income tax expense/(benefit) | $ (12,219,700) | $ 10,610,000 |
Permanent Items [Abstract] | ||
State income taxes, net of federal effect | 1,100 | 2,633,100 |
Non-deductible expenses | 334,600 | 3,000 |
Change in valuation allowance | 11,885,100 | (13,245,900) |
Income tax provision | $ 1,100 | $ 200 |
INCOME TAXES, Deferred Tax Asse
INCOME TAXES, Deferred Tax Assets and Deferred Tax Liabilities (Details) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Deferred tax assets [Abstract] | ||
Software and other claimed assets | $ 360,600 | $ 1,810,500 |
Net operating loss (NOL) | 9,474,744 | 4,478,110 |
Convertible promissory notes and derivative liability | 3,853,200 | 0 |
Total deferred tax assets | 13,688,500 | 6,288,600 |
Deferred tax liabilities [Abstract] | ||
Property, plant & equipment | (6,200) | (18,200) |
Convertible promissory notes and derivative liability | 0 | (4,473,200) |
Total deferred tax liabilities | (6,200) | (4,491,400) |
Net deferred tax assets | 13,682,300 | 1,797,200 |
Valuation allowance | (13,682,300) | (1,797,200) |
Net deferred tax, net of valuation allowance | $ 0 | $ 0 |
OTHER INCOME - RELATED PARTY,_2
OTHER INCOME - RELATED PARTY, RELATED PARTY RECEIVABLE AND PAYABLE (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||
May 31, 2022 | Mar. 31, 2021 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Other Income, Related Party Receivable and Payable [Abstract] | |||||
Interest charges | $ 39,429,100 | $ 2,038,700 | |||
Licensing Agreement [Member] | |||||
Other Income, Related Party Receivable and Payable [Abstract] | |||||
Proceeds from related party | $ 95,518,000 | ||||
Repayment from related party | $ 95,518,000 | ||||
Related Party [Member] | Licensing Agreement [Member] | |||||
Other Income, Related Party Receivable and Payable [Abstract] | |||||
Other income | 0 | $ 0 | $ 2,123,296,000 | ||
Other receivable | 23,296,000 | ||||
Related party sale cost | $ 0 | ||||
Interest charges | $ 0 |
CONVERTIBLE PROMISSORY NOTES, S
CONVERTIBLE PROMISSORY NOTES, Summary of Convertible Promissory Notes (Details) - USD ($) | 12 Months Ended | 35 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | |
Minimum [Member] | |||
Debt, Long-Term and Short-Term, Combined Amount [Abstract] | |||
Debt maturity term | 18 months | ||
Maximum [Member] | |||
Debt, Long-Term and Short-Term, Combined Amount [Abstract] | |||
Debt maturity term | 36 months | ||
Convertible Promissory Notes 1-7 [Member] | |||
Debt, Long-Term and Short-Term, Combined Amount [Abstract] | |||
Debt instrument face amount | $ 5,340,000 | $ 5,340,000 | $ 5,340,000 |
Debt maturity term | 24 months | ||
Debt instrument interest rate | 5% | 5% | |
Debt instrument, convertible, conversion price | $ 4 | $ 4 | |
Convertible Promissory Notes 1-2 [Member] | |||
Debt, Long-Term and Short-Term, Combined Amount [Abstract] | |||
Debt instrument convertible conversion price percentage of initial public offering stock price | 40% | 40% | |
Convertible Promissory Notes 3-7 [Member] | |||
Debt, Long-Term and Short-Term, Combined Amount [Abstract] | |||
Debt instrument convertible conversion price percentage of initial public offering stock price | 40% | 40% | |
Convertible Promissory Notes 8-12 [Member] | |||
Debt, Long-Term and Short-Term, Combined Amount [Abstract] | |||
Debt instrument face amount | $ 17,500,000 | $ 17,500,000 | 17,500,000 |
Convertible Promissory Notes 8-12 [Member] | Merger agreement with TMTG [Member] | |||
Debt, Long-Term and Short-Term, Combined Amount [Abstract] | |||
Debt instrument convertible price minimum percentage of stock price applied | 50% | 50% | |
Convertible Promissory Notes 8-12 [Member] | Debt Instrument Conversion Price One [Member] | |||
Debt, Long-Term and Short-Term, Combined Amount [Abstract] | |||
Debt instrument, convertible, conversion price | $ 25 | $ 25 | |
Convertible Promissory Notes 8-12 [Member] | Debt Instrument Conversion Price Two [Member] | |||
Debt, Long-Term and Short-Term, Combined Amount [Abstract] | |||
Debt instrument, convertible, conversion price | 21 | 21 | |
Convertible Promissory Notes 8-12 [Member] | Debt Instrument Conversion Price Three [Member] | |||
Debt, Long-Term and Short-Term, Combined Amount [Abstract] | |||
Debt instrument, convertible, conversion price | 20 | $ 20 | |
Convertible Promissory Notes 8-12 [Member] | Debt Instrument Conversion Threshold Stock Price Trigger One [Member] | Merger agreement with TMTG [Member] | |||
Debt, Long-Term and Short-Term, Combined Amount [Abstract] | |||
Debt instrument convertible stock price trigger | 50 | ||
Convertible Promissory Notes 8-12 [Member] | Debt Instrument Conversion Threshold Stock Price Trigger Two [Member] | Merger agreement with TMTG [Member] | |||
Debt, Long-Term and Short-Term, Combined Amount [Abstract] | |||
Debt instrument convertible stock price trigger | 42 | ||
Convertible Promissory Notes 8-12 [Member] | Debt Instrument Conversion Threshold Stock Price Trigger Three [Member] | Merger agreement with TMTG [Member] | |||
Debt, Long-Term and Short-Term, Combined Amount [Abstract] | |||
Debt instrument convertible stock price trigger | $ 40 | ||
Convertible Promissory Notes 8-12 [Member] | Minimum [Member] | |||
Debt, Long-Term and Short-Term, Combined Amount [Abstract] | |||
Debt maturity term | 18 months | ||
Debt instrument interest rate | 5% | 5% | |
Convertible Promissory Notes 8-12 [Member] | Minimum [Member] | Merger agreement with TMTG [Member] | |||
Debt, Long-Term and Short-Term, Combined Amount [Abstract] | |||
Debt instrument, convertible, conversion price | $ 10 | $ 10 | |
Convertible Promissory Notes 8-12 [Member] | Maximum [Member] | |||
Debt, Long-Term and Short-Term, Combined Amount [Abstract] | |||
Debt maturity term | 36 months | ||
Debt instrument interest rate | 10% | 10% | |
Convertible Promissory Notes 13-19 [Member] | |||
Debt, Long-Term and Short-Term, Combined Amount [Abstract] | |||
Debt instrument face amount | $ 17,860,000 | $ 17,860,000 | $ 15,360,000 |
Debt maturity term | 18 months | ||
Convertible Promissory Notes 13-19 [Member] | Debt Instrument Conversion Price One [Member] | |||
Debt, Long-Term and Short-Term, Combined Amount [Abstract] | |||
Debt instrument, convertible, conversion price | $ 25 | $ 25 | |
Convertible Promissory Notes 13-19 [Member] | Debt Instrument Conversion Price Two [Member] | |||
Debt, Long-Term and Short-Term, Combined Amount [Abstract] | |||
Debt instrument, convertible, conversion price | $ 21 | $ 21 | |
Convertible Promissory Notes 13-19 [Member] | Minimum [Member] | |||
Debt, Long-Term and Short-Term, Combined Amount [Abstract] | |||
Debt instrument interest rate | 5% | 5% | |
Convertible Promissory Notes 13-19 [Member] | Maximum [Member] | |||
Debt, Long-Term and Short-Term, Combined Amount [Abstract] | |||
Debt instrument interest rate | 10% | 10% | |
Convertible Promissory Notes 20 [Member] | |||
Debt, Long-Term and Short-Term, Combined Amount [Abstract] | |||
Debt instrument face amount | $ 500,000 | $ 500,000 | |
Debt maturity term | 18 months | ||
Debt instrument interest rate | 10% | 10% | |
Debt instrument convertible price minimum percentage of stock price applied | 50% | 50% | |
Convertible Promissory Notes 20 [Member] | Debt Instrument Conversion Price One [Member] | |||
Debt, Long-Term and Short-Term, Combined Amount [Abstract] | |||
Debt instrument, convertible, conversion price | $ 25 | $ 25 | |
Convertible Promissory Notes 20 [Member] | Debt Instrument Conversion Price Two [Member] | |||
Debt, Long-Term and Short-Term, Combined Amount [Abstract] | |||
Debt instrument, convertible, conversion price | 21 | 21 | |
Convertible Promissory Notes 20 [Member] | Debt Instrument Conversion Threshold Stock Price Trigger One [Member] | |||
Debt, Long-Term and Short-Term, Combined Amount [Abstract] | |||
Debt instrument convertible stock price trigger | 50 | ||
Convertible Promissory Notes 20 [Member] | Debt Instrument Conversion Threshold Stock Price Trigger Two [Member] | |||
Debt, Long-Term and Short-Term, Combined Amount [Abstract] | |||
Debt instrument convertible stock price trigger | 42 | ||
Convertible Promissory Notes 20 [Member] | Minimum [Member] | |||
Debt, Long-Term and Short-Term, Combined Amount [Abstract] | |||
Debt instrument, convertible, conversion price | $ 10 | $ 10 | |
Convertible Promissory Notes Liability Component [Member] | Minimum [Member] | |||
Debt, Long-Term and Short-Term, Combined Amount [Abstract] | |||
Debt instrument effective rate percentage | 16.30% | 16.30% | |
Convertible Promissory Notes Liability Component [Member] | Maximum [Member] | |||
Debt, Long-Term and Short-Term, Combined Amount [Abstract] | |||
Debt instrument effective rate percentage | 100% | 100% |
CONVERTIBLE PROMISSORY NOTES, C
CONVERTIBLE PROMISSORY NOTES, Convertible promissory notes (Details) - USD ($) | Dec. 31, 2023 | Dec. 29, 2023 | Dec. 28, 2023 | Nov. 24, 2023 | Aug. 23, 2023 | Jul. 07, 2023 | Jun. 26, 2023 | Jun. 06, 2023 | Dec. 31, 2022 |
Debt, Long-Term and Short-Term, Combined Amount [Abstract] | |||||||||
Derivative Liability, Statement of Financial Position [Extensible Enumeration] | Less: Short-term Derivative Liability Component, Derivative Liability Component | Less: Short-term Derivative Liability Component, Derivative Liability Component | |||||||
Less: Short-term liability component | $ (42,415,500) | $ (4,123,900) | |||||||
Liability component | 2,931,500 | 0 | |||||||
Embedded feature Component [Abstract] | |||||||||
Less: Short-term Derivative Liability Component | (17,282,500) | (14,905,300) | |||||||
Derivative Liability Component | 1,120,300 | 0 | |||||||
Convertible Promissory Notes 1-7 [Member] | |||||||||
Debt, Long-Term and Short-Term, Combined Amount [Abstract] | |||||||||
Debt instrument face amount | 5,340,000 | 5,340,000 | |||||||
Convertible Promissory Notes 8 -12 [Member] | |||||||||
Debt, Long-Term and Short-Term, Combined Amount [Abstract] | |||||||||
Debt instrument face amount | 17,500,000 | 17,500,000 | |||||||
Convertible Promissory Notes 13 -19 [Member] | |||||||||
Debt, Long-Term and Short-Term, Combined Amount [Abstract] | |||||||||
Debt instrument face amount | 17,860,000 | 15,360,000 | |||||||
Convertible Promissory Note [Member] | |||||||||
Debt, Long-Term and Short-Term, Combined Amount [Abstract] | |||||||||
Debt instrument face amount | 40,700,000 | $ 1,000,000 | $ 500,000 | $ 500,000 | $ 2,500,000 | $ 6,000,000 | $ 2,000,000 | $ 2,000,000 | 38,200,000 |
Debt Issuance costs | (240,000) | (240,000) | |||||||
Nominal value of Convertible Promissory Notes | 40,460,000 | 37,960,000 | |||||||
Derivative liability Component | 37,234,800 | 36,528,700 | |||||||
Liability component at date of issue | 3,225,200 | 1,431,300 | |||||||
Interest charged | 42,121,700 | 2,692,600 | |||||||
Interest paid | 0 | 0 | |||||||
Total Liability component | 45,347,000 | 4,123,900 | |||||||
Less: Short-term liability component | (42,415,500) | (4,123,900) | |||||||
Liability component | 2,931,500 | 0 | |||||||
Embedded feature Component [Abstract] | |||||||||
Derivative liability Component | 37,234,800 | 36,528,700 | |||||||
Change in fair value of Embedded derivative | (18,831,900) | (21,623,400) | |||||||
Total Derivative Liability Component | 18,402,900 | 14,905,300 | |||||||
Less: Short-term Derivative Liability Component | (17,282,500) | (14,905,300) | |||||||
Derivative Liability Component | $ 1,120,300 | $ 0 |
FAIR VALUE MEASUREMENT (Details
FAIR VALUE MEASUREMENT (Details) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Current Liabilites [Abstract] | ||
Derivative liability | $ 17,282,500 | $ 14,905,300 |
Liabilities [Abstract] | ||
Derivative Liability | 1,120,300 | 0 |
Level 2 [Member] | ||
Cash [Abstract] | ||
Cash | 2,572,700 | 9,808,400 |
Level 3 [Member] | ||
Current Liabilites [Abstract] | ||
Convertible prommisory notes | 42,415,500 | |
Derivative liability | 17,282,500 | |
Liabilities [Abstract] | ||
Convertible prommisory notes | 2,931,500 | 4,123,900 |
Derivative Liability | $ 1,120,300 | $ 14,905,300 |
STOCKHOLDERS' EQUITY (Details)
STOCKHOLDERS' EQUITY (Details) - $ / shares | Dec. 31, 2023 | Feb. 16, 2023 | Dec. 31, 2022 | Jan. 31, 2022 | Oct. 31, 2021 | Feb. 08, 2021 |
Common Stock [Abstract] | ||||||
Capital stock authorized (in shares) | 11,000 | |||||
Common shares, shares authorized (in shares) | 120,000,000 | 1,000,000,000 | 120,000,000 | 120,000,000 | 110,000,000 | |
Common shares, par value (in dollars per share) | $ 0.000001 | $ 0.000001 | $ 0.000001 | $ 0.000001 | $ 0.000001 | |
Common shares, shares issued (in shares) | 100,000,000 | 100,000,000 | 100,000,000 | 100,000,000 | 10,000 | |
Common shares, shares outstanding (in shares) | 100,000,000 | 100,000,000 | 100,000,000 | 100,000,000 | 10,000 | |
Common stock, shares reclassified (in shares) | 10,000 | |||||
Equity Incentive Plan [Member] | ||||||
Common Stock [Abstract] | ||||||
Common shares, shares authorized (in shares) | 7,500,000 | 7,500,000 | 1,000 |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Sep. 30, 2022 | Dec. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | ||
Accrued related loss contingency | $ 0 | |
Reversal of liability | $ 1.7 | |
Reversal of additional liabilities | $ 0.5 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) | 1 Months Ended | ||||||||||||||||
Feb. 28, 2024 shares | Feb. 09, 2024 Individual | Feb. 21, 2024 USD ($) | Jan. 22, 2024 USD ($) | Jan. 07, 2024 shares | Dec. 31, 2023 USD ($) shares | Dec. 29, 2023 USD ($) | Dec. 28, 2023 USD ($) | Nov. 24, 2023 USD ($) | Aug. 23, 2023 USD ($) | Jul. 07, 2023 USD ($) | Jun. 26, 2023 USD ($) | Jun. 06, 2023 USD ($) | Feb. 16, 2023 shares | Dec. 31, 2022 USD ($) shares | Jan. 31, 2022 shares | Oct. 31, 2021 shares | |
Subsequent Event [Line Items] | |||||||||||||||||
Common shares, shares authorized (in shares) | 120,000,000 | 1,000,000,000 | 120,000,000 | 120,000,000 | 110,000,000 | ||||||||||||
Convertible Promissory Notes [Member] | |||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||
Face amount | $ | $ 40,700,000 | $ 1,000,000 | $ 500,000 | $ 500,000 | $ 2,500,000 | $ 6,000,000 | $ 2,000,000 | $ 2,000,000 | $ 38,200,000 | ||||||||
Subsequent Event [Member] | |||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||
Common shares, shares authorized (in shares) | 1,000,000,000 | ||||||||||||||||
Number of board member appointed | Individual | 2 | ||||||||||||||||
Subsequent Event [Member] | Common Class A [Member] | |||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||
Conversion shares (in shares) | 4,667,033 | ||||||||||||||||
Conversion ratio | 2 | ||||||||||||||||
Subsequent Event [Member] | Class B Common Stock [Member] | Digital World Acquisition Corp. [Member] | |||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||
Conversion shares (in shares) | 7,158,025 | ||||||||||||||||
Conversion ratio | 1.348 | ||||||||||||||||
Subsequent Event [Member] | Convertible Promissory Notes [Member] | |||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||
Face amount | $ | $ 1,205,000 | $ 1,000,000 |