- Oops!Something went wrong.Please try again later.
A new filing about the former president’s right-wing social media platform raised serious doubts about its viability, The Hollywood Reporter reported on Monday.
Truth Social has used cash from operations of $35 million since its inception in February 2021, prompting a grave forecast from independent accountants for Truth Social’s owner, Trump Media & Technology Group, according to an SEC filing. The concerns were revealed in a financial disclosure filed by the company’s SPAC merger partner, Digital World Acquisition Corp.
“TMTG’s independent registered public accounting firm has indicated that TMTG’s financial condition raises substantial doubt as to its ability to continue as a going concern,” the filing reads, per The Hollywood Reporter.
Debts were piling up fast as of June 30, 2023, according to the financial disclosure. “Management has substantial doubt that TMTG will have sufficient funds to meet its liabilities as they fall due, including liabilities related to promissory notes previously issued by TMTG,” the filing adds.
The parent company of Trump’s Twitter knockoff is hoping to go public via the merger.
“TMTG believes that it may be difficult to raise additional funds through traditional financing sources in the absence of material progress toward completing its merger with Digital World,” the filing reads.
Trump, the Republican presidential front-runner who’s on trial for business fraud in a civil case, has directed several ventures ― from hotels to steaks to Trump University ― that went bankrupt or simply ceased operations.
One commenter reacting to the Truth Social report called his business acumen “the Minus Touch.”
CORRECTION: A previous version of this story said Truth Social lost $73 million since February 2022, citing The Hollywood Reporter. It has been updated to more accurately reflect Truth Social’s financial losses as reflected in the SEC filing.