The company posted a net loss of $58.2 million in the year ended December 2023, compared to a net profit of $50.5 million a year earlier.
The actions of Trump Media & Technology Group fell almost 18% on Monday, as the parent company of the Truth Social platform raised doubts of insolvency due to its difficulties in meeting its financial obligations a few days after going public through a blank check merger.
The company registered a net loss of $58.2 million in the year ended December 2023, compared to a net profit of $50.5 million a year earlier. The Revenue was $4.13 million last yearup from 1.47 million in 2022, the company said in a statement.
“As of December 31, 2023 and 2022, management had dsubstantial doubts that TMTG will have sufficient funds to meet its liabilities as they become due, including liabilities related to notes previously issued by TMTG,” they added.
Trump Media said it expects to incur operating losses and negative cash flows from operations for the foreseeable future, while tworks to expand its user baseattracting more platform partners and advertisers.
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What happened when you started trading on the New York Stock Exchange
Its shares gained more than a 16% on its first day of trading, March 26, thanks to the rush of retail investors, including supporters of former President Donald Trump.
But since then, the The stock has been choppy and fell for the second consecutive session on Monday.
Separately, on Monday, a Delaware judge said he wanted the company and Trump Media co-founders Wesley Moss and Andrew Litinsky to set a hearing date this month to determine whether the couple should receive the 8.6% of stake in the company that they claim is owed to them.
Trump Media and the couple have sued each other in the courts of the states of Delaware and Florida.
The co-founders accused Trump Media of trying to dilute inappropriately their participation. The company said they had not earned their shares and intended to strip them of their ownership, along with having a judge declare that they did not have the right to appoint two members of the board of directors.
Source: Ambito
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