CoinVoice has learned that, according to Forbes, a new document from the SEC shows that Trump Media & Technology Group (the parent company of Truth Social) has disclosed "significant weaknesses" in its financial reporting controls and acknowledged that its financial statements may be incorrect.
The group announced its quarterly earnings on Friday, 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 the complexity of transactions and insufficient experienced personnel to meet SEC reporting requirements, leading to this issue.
Trump Media said it has hired more accountants, brought in third-party consultants, and standardized processes, but admitted there is more work to be done.
