A new audit shows that Trump Media lost $58 million last year

Quartz

Trump Media & Technology Group, the company behind former President Donald Trump’s social media site Truth Social, filed a re-audited version of its finances Monday — and the results weighed on the shares.
The documents, filed with the Securities and Exchange Commission, amends the company’s registration statement filed on April 15 and includes a re-audit of the company’s financial statements spanning from Dec. 31, 2023, and Dec. 31, 2022.
The number of shares of common stock that TMTG seeks to register is unchanged, the company noted.
Trump Media said on April 15 that it is registering the resale of up to almost 21.5 million new shares of common stock issuable upon the exercise of warrants, up to about 146 million shares of common stock, and up to about 4 million warrants to purchase common stock.
Shares of Trump Media, which trade on the Nasdaq under the ticker DJT, fell more than 6% on Monday afternoon following the disclosure.
The audited finances confirmed that Trump Media suffered a net loss of $58.2 million during the 12 months ended Dec. 31.
The media company replaced its former audit firm BF Borgers with SMC last month after the Securities and Exchange Commission permanently barred the company from serving as accountants.
Gurbir Grewal, director of the SEC’s Division of Enforcement, called BF Borgers a “sham audit mill.”

NEGATIVE

The business that created Truth Social, a social media platform owned by former president Donald Trump, Trump Media and Technology Group, submitted a re-audited financial report on Monday, and the findings hurt the stock.

A re-audit of the company’s financial statements covering the period from December to April 15 is included in the documents, which were filed with the Securities and Exchange Commission. The documents also amend the company’s registration statement filed on April 15. 31, 2023, and Dec. March 31, 2022. Semple, Marchal & Cooper (SMC), Trump Media’s new accountant, conducted the audits.

The company stated that TMTG’s goal to register an equal number of shares of common stock remains the same. In a statement released on April 15, Trump Media stated that it is registering the resale of up to nearly 21.5% of newly issued common stock, up to approximately 146 million shares of common stock, and up to approximately 4 million warrants to purchase common stock. These numbers are contingent upon the exercise of warrants.

Devin Nunes, the CEO of Trump Media, released a statement saying, “I want to thank SMC for serving as our independent auditor and enabling us to file an Amended Registration Statement, which we hope the SEC will promptly review.”.

Following the disclosure, Trump Media’s shares, which are traded on the Nasdaq under the ticker DJT, dropped more than 6% on Monday afternoon. Confirmed by the audited financial records, Trump Media’s net loss for the year ended December was $58.2 million. 31….

After the Securities and Exchange Commission permanently barred the company from acting as accountants, the media company replaced its previous audit firm, BF Borgers, with SMC last month.

During audits and reviews of more than 1,500 SEC filings between January 2021 and June 2023, the SEC accused Borgers and its managing partner, Benjamin Borgers, of violating PCAOB standards. BF Borgers is a “sham audit mill,” according to Gurbir Grewal, director of the SEC’s Division of Enforcement. “.

scroll to top