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New SEC filings suggest Truth Social lost $23m in the first half of 2023 and that its parent company may struggle to continue if it does not complete a merger deal.
Truth Social, the social media app by former US president Donald Trump, has been on a downward financial spiral since it was founded, according to new filings.
Documents filed with the US Securities and Exchange Commission (SEC) yesterday (13 November) show that the app has lost nearly $23m in the first half of 2023. The filing suggests Truth Social has only had net sales of roughly $2.3m during the same period.
Trump launched Truth Social last year as a counter to social media platforms such as X, Facebook and YouTube, which banned or suspended his accounts in the aftermath of the January 2021 riots at the US Capitol.
The app made it onto the Google Play Store in October 2022, which allowed Truth Social to be accessed from devices across the US.
Despite this, the filing claims the Truth Social parent company – Trump Media & Technology Group (TMTG) – has “suffered negative cash flows and recurring losses from operations”. The SEC filing was made by Digital World Acquisition Corp, a company that is in the process of acquiring TMTG.
These filings list a number of risks with TMTG’s association with the former president. The documents note that a number of companies associated with Trump have filed for bankruptcy in the past and that there can be “no assurances” that TMTG will not also become bankrupt and fail.
Digital World also claimed that the success of TMTG “depends in part” on the reputation and popularity of Trump and that negative publicity could impact the company’s revenue. Trump is currently facing multiple criminal charges in the US, which include claims that he tried to overturn the 2020 election.
The documents also claim that TMTG’s independent registered public accounting firm said TMTG’s financial condition “raises substantial doubt as to its ability to continue”. TMTG believes it will have difficulties in raising funds to meet its liabilities if the merger with Digital World is not completed, according to the filing.
An SEC filing from Digital World in May 2022 claimed TMTG had a net loss of more than $48m during the first quarter of 2022.
Updated 21 November 2023, 8.11am: An earlier version of this article incorrectly stated Truth Social’s losses and has been amended for clarification. SiliconRepublic.com regrets this error.
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