Shares of Trump Media & Technology Group (DJT.O) plummeted nearly 18% on Monday as the parent of the Truth Social platform raised going-concern doubts due to struggles to meet its financial liabilities just days after going public through a blank-check merger.
The company reported a net loss of $58.2 million in the year ended December 2023, compared with a net profit of $50.5 million a year earlier. Revenue was $4.13 million last year, up from $1.47 million in 2022, it said in a filing.
“As of December 31, 2023, and 2022, management had 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,” the company said.
Trump Media stated it anticipates incurring operating losses and negative cash flows from operations for the foreseeable future, as it endeavors to expand its user base, attracting more platform partners and advertisers.
Its shares surged more than 16% on its first trading day on March 26, as retail investors including supporters of former President Donald Trump piled into the stock.
But the stock has since then experienced volatile trading, declining for the second consecutive session on Monday.
Separately on Monday, a Delaware judge expressed interest in the company and Trump Media co-founders Wesley Moss and Andrew Litinsky setting a date this month for a hearing to determine if the pair should receive the 8.6% stake in the company they claim they are owed.
Trump Media and the pair have initiated lawsuits against each other in Delaware and Florida state courts. The co-founders accused Trump Media of attempting to improperly dilute their stake.
The company countered, alleging they had failed to earn their shares and that it was seeking to strip them of their ownership and wanted a judge to declare they had no right to appoint two board members.
Shares of Trump Media & Technology Group (DJT.O) plummeted nearly 18% on Monday as the parent of the Truth Social platform raised going-concern doubts due to struggles to meet its financial liabilities just days after going public through a blank-check merger.
The company reported a net loss of $58.2 million in the year ended December 2023, compared with a net profit of $50.5 million a year earlier. Revenue was $4.13 million last year, up from $1.47 million in 2022, it said in a filing.
“As of December 31, 2023, and 2022, management had 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,” the company said.
Trump Media stated it anticipates incurring operating losses and negative cash flows from operations for the foreseeable future, as it endeavors to expand its user base, attracting more platform partners and advertisers.
Its shares surged more than 16% on its first trading day on March 26, as retail investors including supporters of former President Donald Trump piled into the stock.
But the stock has since then experienced volatile trading, declining for the second consecutive session on Monday.
Separately on Monday, a Delaware judge expressed interest in the company and Trump Media co-founders Wesley Moss and Andrew Litinsky setting a date this month for a hearing to determine if the pair should receive the 8.6% stake in the company they claim they are owed.
Trump Media and the pair have initiated lawsuits against each other in Delaware and Florida state courts. The co-founders accused Trump Media of attempting to improperly dilute their stake.
The company countered, alleging they had failed to earn their shares and that it was seeking to strip them of their ownership and wanted a judge to declare they had no right to appoint two board members.
