Trump Media & Technology Group Faces Financial Challenges as Truth Social Struggles to Generate Revenue

We regret to inform you that Trump Media & Technology Group, the owner of Truth Social, is currently facing financial difficulties. Despite initial claims of being a conservative-friendly alternative to mainstream social media platforms, a regulatory filing reveals that Truth Social has only generated $2.3 million in sales during the first half of this year, resulting in significant losses. Consequently, Trump Media & Technology Group's accountants have expressed concerns about the company's ability to sustain its operations. The financial details were disclosed by Digital World Acquisition Corp. (DWAC), a special-purpose acquisition company (SPAC) formed to merge with Trump's business. This progress towards a potential merger is seen as a critical milestone by DWAC CEO Eric Swider. However, it should be noted that the "going concern" warning issued by Trump Media's accountants indicates potential insufficiency of cash flow and an increased risk of defaulting on debts within the next year. While this warning provides a snapshot of the company's financial situation, it is possible that the pending merger with DWAC could provide the necessary funding to support Trump Media's obligations and drive growth. Trump, as the chairman and stakeholder of Trump Media, has agreed to prioritize posting on Truth Social before any other competing social media service. The financial filing also reveals that Trump Media experienced mounting losses, with revenue of $2.3 million in the first half of 2023 compared to no revenue during the same period the previous year. Furthermore, the company's cash reserves decreased significantly, from $19 million to $2.4 million in just one year. Trump Media is currently engaged in negotiations with lenders regarding its debts, and management itself has expressed concerns about meeting liabilities and obligations to lenders. We will continue to monitor the situation and provide updates as they become available. Thank you for your attention. In: Trump Media & Technology Group, Truth Social