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Trump Media & Technology Group Suffers Significant Losses
The company behind Truth Social, the social networking platform owned by former President Donald Trump, known as Trump Media & Technology Group, reported a loss exceeding $300 million in the last quarter, in its debut earnings report after becoming a publicly traded company.
Details of The Losses
In the quarter ending March 31, the firm registered a $327.6 million deficit. The company ascribes this loss primarily to the $311 million in non-cash expenses associated with its merger with Digital World Acquisition Corp, a special purpose acquisition company (SPAC) seeking a merger target. SPACs typically expedite and facilitate the process of taking young companies public.
Compared to the previous year, the increase in losses is substantial, with Trump Media recording a loss of $210,300 a year ago.
The initial quarter revenue for Trump Media totaled $770,500, credited mostly to its “nascent advertising initiative.” This is a drop from the $1.1 million registered the previous year. According to its earnings release, Trump Media claimed that it is more focused on long-term product development than quarterly revenue at this infancy stage of the company’s development.
Issues with Auditor
Trump Media recently severed ties with an auditor who had been charged with a “massive fraud” by federal regulators. BF Borgers, its independent public accounting firm, was dismissed on May 3 which deferred the submission of the quarterly earnings report, as detailed in security filings. This marks another in a series of auditors Trump Media has gone through. One resigned in July 2023, another was discontinued by the organization’s board in March, just as it was set to re-appoint BF Borgers.
Stock Performance
In after-market trading, stocks of Trump Media rose 36 cents to $48.74. In March, the company hit the Nasdaq exchange under the ticker symbol “DJT.” It reached its peak at nearly $80 in late March.
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