Former President Donald Trump’s company, Trump Media & Technology Group, had reportedly lost $73 million since Truth Social launched in 2022.
Operations for the company started on February 2021, but the app with launched in the first quarter of 2022.
Trump founded the company after he was banned from the major social platforms after the January 6 insurrection in 2021 that included Facebook, Instagram, and then-Twitter.
His accounts have been re-instated after a two-year ban from Meta Platforms and Elon Musk’s purchase of then-Twitter, now known as X.
According to an SEC filing by Digital World Acquisition Corp that planned to merge with the company, TMTG has lost around $50 million in 2022 and $23 million in the first half of 2023.
TGMT CEO Devin Nunes, who is the former Congressman from California, was earning a salary of $750,000.
“As of June 30, 2023, and December 31, 2022, management has substantial doubt that TMTG will have sufficient funds to meet its liabilities as they fall due, including liabilities related to promissory notes previously issued by TMTG,” said in the SEC filing.
The company reported a net sale of $1.4 million in the first year. TMTG report net sale of $2.3 million in the first and second quarters of 2023.
The filing raised concerns about Truth Social’s financial conditions and ability to continue to stream operation.
It is not clear how much capital is left for the company to move forward with operations.
The company had pledged that the merger with Digital World would create a net worth of $875 million at the start and potentially up to $1.7 billion.
In a campaign filing to the FEC, its current value stake is between $5 million to $25 million. Trump owns 90% of the company.
TMTG believes it may be difficult to raise funds through traditional financial resources. It is believed that it will affect the merger with Digital World.
The SPAC merger between TMTG and Digital World was announced in 2021.
The deal had mired in legal trouble and the completion was extended to September of 2024
In the filing state, the potential risk was outlined by TMTG that included Trump.
The company’s success is currently tied to Trump’s “reputation and popularity”, but TMTG would suffer if the former president’s popularity suffered.
With Trump legal woes that includes his four indictment and the civil trial, the SEC filing noted that an “adverse outcome in one or more proceedings” may negatively impact Truth Social and TMTG.
“The death, incarceration or incapacity of President Trump,” the filing stated, could also make an negative impact on his company.
Digital World announced that the $191 million fell through. The company lost $467 million out of $1 billion in prior committed investments.
