In its first public quarter, Trump Media and Technology Group, the company that owns former President Donald Trump’s social networking site Truth Social, announced a net loss of over $300 million. The three-month period that ended on March 31 revealed a loss of $327.6 million, including $311 million in non-cash expenses related to its merger with Digital World Acquisition Corp., a special purpose acquisition company (SPAC).
A year earlier, Trump Media had posted a loss of $210,300. Despite the high losses, the company reported revenue of $770,500 in the first quarter, mainly from its advertising initiative. However, this was a decrease from the previous year. Trump Media emphasized that its focus at this early stage of development is on long-term product development rather than immediate revenue generation.
Recently, Trump Media faced controversy when it fired an auditor due to allegations of massive fraud. The company dismissed its independent public accounting firm, BF Borgers, on May 3rd which caused a delay in the filing of the quarterly earnings report. Prior to this incident, Trump Media had already changed auditors multiple times which highlighted their challenges in maintaining stable financial oversight.
Despite these challenges and controversies surrounding the company’s handling of audit issues and changes in auditors multiple times , shares of Trump Media saw a slight increase in after-hours trading after announcing their financial results for Q1 2023 . Shares climbed by 36 cents to $48.74 . The stock began trading on Nasdaq under the ticker symbol “DJT” and reached a peak of nearly $80 in late March before declining again after news about massive fraud allegations were made public . As such , the company’s financial performance and handling of audit issues will continue to be closely watched as it navigates the public market moving forward .
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