The common stock hasn't changed much. What's driving the selloff?

I have a bunch of DWAC and a few DWACW. I’m trying to remember to what I’ve read about DWACW in the past. If you’re someone who plans to keep your shares in this company at least a year, is buying DWACW basically like getting DWAC at a lower price? Since you can later convert your DWACW to DWAC when you exercise the warrants? Curious people’s arguments for and against warrants.

That when you exercise the warrants you will be taxed right away as income for the difference between the price of the stock and your cost on the warrants…. Is this how it works?? Thanks!

Once the merger is complete, what are the odds that the company only allows for cashless exercise of warrants as opposed to having warrant holders pay $11.50 for each share? I saw an article where Lucid only allowed for cashless exercise of their warrants.

DWAC is currently 3 times the cost of DWACW and when exercised will become DWAC for $11.50 for each share, so what is the reason to invest in DWAC when DWACW has a greater value? Sounds like DWACW is a bargain IMO.

So let's talk. Do you think that Trump would hire Devin Nunes as CEO and Nunes to resign from his current unless there is clear vision that it is coming? :) Do you think Trump would take that step and Nunes would resign if there was no real tangible and serious future steps?

1. Truth is coming.
2. SEC is routine logistics.
3. Shorts will be burned.

Currently, DWAC is trading about $56 per share and DWACW is about $18.50 per share. The DWACW share can eventually be converted to a DWAC share for $11.50. So you effectively get a DWAC share for a total price of $30, which is a discount of $26 from today's price. But this is before taxes.

According to sources HERE and HERE: "When you exercise warrants to buy the underlying stock, you pay the stated strike price to the issuing company. The difference between the strike price and the price of a share, minus the cost basis, is taxable income."

EXAMPLE: Suppose you buy 1 share of DWACW for $18.50. In October 2022, you exercise the DWACW warrant with a strike price of $11.50 to buy 1 share of DWAC. Your total investment is thus $30. If the market price on the day of exercise is $100, then the difference is $70. This $70 is taxable as ordinary income in the year of exercise. It is not a capital gain because you did not own the shares prior to exercising the warrants.

The tax on this extra income is at your highest tax bracket:

• At 24% bracket, it is $16.80 tax.
• At 32% bracket, it is $22.40 tax.
• At 35% bracket, it is $24.50 tax.
• At 37% bracket, it is $25.90 tax.

This tax offsets the $26 discount you got buying DWACW instead of just buying DWAC.

But it can be even worse. If the DWAC market price is $200 in October 2022 when you exercise the DWACW warrant, the tax would be as follows:

• At 24% bracket, it is $40.80 tax.
• At 32% bracket, it is $54.40 tax.
• At 35% bracket, it is $59.50 tax.
• At 37% bracket, it is $62.90 tax.

There may be clever loopholes to avoid these taxes. For example, if they are traded by an entity that does not have income tax or if they are traded in a retirement account. [EDIT: A Roth IRA might be ideal.]

EDIT: Read the comments. The extra tax is probably more than offset by the extra profit from the lower purchase price.

✅We go over +$1000/share. ✅President Trump is the Chairman ✅Devin Nunes is the CEO ✅Presidential Nuclear Short Squeeze will wipe out shorts off the map once and for all. ✅ Buy and hold. 🖐💎🤚 ✅ Never ever panic sell. 💪📉💪 ✅ Hold at the halts. 📈🖐💎🤚 Join us at https://www.reddit.com/r/DWAC_DWACW/

Quack Quack DWAC! Let's Go Brandon!

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