Yeah, I can see where an auditor's note that your company is going to go bust if operating losses continue at the current rate could be cause for concern. Losing $58.2 million while generating revenue of just $4.1 million does not sound like the makings of a sound investment and the market reacted accordingly, with Trump Media losing over 20% of its value on Monday.
Source: NBC News
An auditor has raised doubts about the ability of Donald Trump's publicly traded company to stay in business, according to a new regulatory filing.
Trump Media and Technology Group, which operates the Truth Social platform, reported it lost $58.2 million in 2023 while generating total revenues of $4.1 million, according to the Monday filing with the Securities and Exchange Commission. Trump Media listed its largest expense for the year as interest payments totaling more than $39 million.
The filing includes a note from an independent accounting firm, Colorado-based BF Borgers CPA PC, warning that Trump Media's "operating losses raise substantial doubt about its ability to continue as a going concern." The firm has worked with Trump Media since 2022.
The note is dated March 25, the day before Trump's company started trading on the Nasdaq stock exchange under the symbol DJT, surging at first and earning comparisons to so-called meme stocks.
Twitter reacted accordingly, with all the derision this deserves.
