WEBVTT

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- Trump Media and Technology
Group stock fell 4% Monday

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morning after revealing
another quarterly loss

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that continued to cast out on the firm's

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ability to turn a profit.

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The company behind former
President Donald Trump's social

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media platform, truth
Social, reported a net loss

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of $16.4 million.

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In the second quarter. On
Friday, about half of the loss,

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or $8.3 million stemmed from
legal costs tied to its merger.

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With Digital World Acquisition Core.

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A special purpose acquisition company

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or SPAC revenue fell

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to $836,900 from $1.19
million a year earlier,

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a 30% hit.

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Trump Media attributed the decrease

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to a change in the revenue share with one

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of our advertising partners

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and its testing of a nascent
advertising initiative.

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On Truth Social, it faced a
series of significant costs,

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including $602,000 for accounting fees

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that included the cost of re-audit,

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the company's fiscal year
2022 and 2023 results

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after the previous auditor
was permanently barred

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by the Securities and Exchange Commission.

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Trump Media shares traded at

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around $25 bringing the
company's market capitalization

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below $5 billion.

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Despite the high valuation,

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the company has consistently bled money.

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In May, it reported a loss

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before income taxes of $327.6
million for the first quarter,

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and just $770,500 in revenue.

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As of August 9th, the
former president holds 59.9%

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of the outstanding shares of
the company's common stock,

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making him a majority shareholder.

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Rather than pursuing a traditional
initial public offering,

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Trump media went public by
merging with DWAC in March.

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Following years of delays.

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Devin Nunes, the company's
Chief Executive Officer,

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touted the company's
accomplishments in a release Friday,

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including the launch of its
live TV streaming platform,

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truth Plus, which it began
rolling out earlier this month.

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The streaming platform will
initially include news,

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commentary, weather, lifestyle,
and entertainment channels.

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The company has said it will
have full control over its tech

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delivery stack for streaming
across a private network

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content delivery network.

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In addition to building out
Truth Plus newness said,

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the company is also exploring
numerous other possibilities

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for growth, including
mergers and acquisitions.

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Trump Media had $344 million in cash

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and cash equivalents with no debt.

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As of June 30th, the company
said in a regulatory filing,

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the company said, with
its strong balance sheet

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and zero debt load, the company
believes it has sufficient

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working capital to fund operations

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for the foreseeable future.

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I'm Rcio Fabro reporting for courts.

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Thanks for watching,
and stick with qz.com.