Former President Donald Trump's Truth Social platform lost $23 million in the first half of 2023, according to a Securities and Exchange Commission (SEC) filing reported on by Reuters. The SEC documents were filed Monday by Digital World Acquisition Corp., the SPAC that plans to merge with Trump’s business. Reuters previously reported that the company had lost $73 million since its launch but later corrected its report.
“With its losses mounting, Trump Media is also burning through cash, ending June with $2.4 million in cash, down from $19 million a year earlier . . .” Aimee Picchi wrote for MoneyWatch. “The company reported an operating loss of $23.3 million in 2022, although it recorded a $50.5 million net profit after a change in value tied to its convertible notes.”
The disclosure also contained a warning from the company's accountants, who said they had “substantial doubt about the company's ability to continue as a going concern.” It’s possible that Trump Media's pending deal with DWAC could provide the funding the merged company needs to make good on its obligations and help drive growth, MoneyWatch noted. Trump Media is negotiating its debts with lenders, and the filing warned that management had concerns about its ability to pay for the company's liabilities and meet its obligations to lenders, according to the report.
CORRECTION: A previous version of this article erroneously stated that Truth Social had lost $73 million. The story has been updated.
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