((This Nov. 13 story has been corrected to say that Truth Social reported a loss of $31.6 mln, not $73 million, since its launch to mid-2023 in the headline and in paragraph 1, and to say that the plat)
(Reuters) - (This Nov. 13 story has been corrected to say that Truth Social reported a loss of $31.6 mln, not $73 million, since its launch to mid-2023 in the headline and in paragraph 1, and to say that the platform posted a profit of $50.5 mln in 2022, not loss, in paragraph 3)
Former U.S. President Donald Trump's social media platform Truth Social lost $31.6 million from its launch in early 2022 to mid-2023, a securities filing by Digital World Acquisition Corp, the SPAC that plans to merge with the company, showed on Monday.
Trump had announced the launch of his social media app in Oct 2021, saying it would "stand up to Big Tech" companies such as Twitter and Facebook (NASDAQ:META) that previously barred him.
In 2022, Truth Social posted a profit of $50.5 million, with net sales of just $1.4 million. It lost $23 million in the first half of this year, with net sales of $2.3 million.
Trump Media & Technology Group's (TMTG) independent registered public accounting firm has indicated that the financial condition raises substantial doubt as to its ability to continue as a going concern, according to the filing.
"TMTG believes that it may be difficult to raise additional funds through traditional financing sources in the absence of material progress toward completing its merger with Digital World."
The company also eliminated several positions in March, the filing said, adding that the action followed a review of all departments, most significantly impacting TMTG's streaming video on demand and infrastructure teams.