As per a new securities filing, former President Donald Trump has incurred major financial losses with his social media venture, Truth Social.
The Hollywood Reporter published a review of financial disclosures from Trump Media & Technology Group (TMTG), the company behind Trump’s alternative to X (formerly Twitter).
Per the Hollywood Reporter, the company has lost millions:
“The numbers were revealed in a new financial disclosure from TMTG’s SPAC merger partner Digital World Acquisition Corp. The balance sheet provided is a complicated one, owing to a “change in fair value of derivative liabilities” unrelated to the day-to-day expenses of the company.
When putting aside the value of the derivative liability, the company has lost $60.5 million since it launched. If you include the value of the derivative liability, you would get a loss of $31.5 million.
The financial situation of TMTG is such that “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,” according to the filing.”
Also from the report: “The filing indicates that, if TMTG is unable to complete the merger with DWAC, and receive the pot of money on the line, it may not survive.”
The details of Truth Social’s revenue shortcomings follow reports on the platform’s drain on Trump’s net worth. Forbes recently noted that even though Trump has made Truth Social his social media platform of choice, its user base still pales in comparison to X.