According to ChainCatcher, a new document from the U.S. Securities and Exchange Commission shows that Trump Media & Technology Group disclosed 'significant weaknesses' in its financial reporting controls and acknowledged that the financial statements may be incorrect.
The group announced quarterly earnings, with net sales of $821,000, a net loss of $31.7 million, cash and short-term investments of $758.9 million, and debt of $9.8 million. The document pointed out that the company lacks formal accounting processes due to complex transactions and insufficient experienced personnel to meet SEC reporting requirements, leading to the issues.
Trump Media stated that it has hired more accounting personnel, brought in third-party consultants, and standardized processes, but admitted that there is still more work to be done.