Trump Media Group Discloses "Material Weaknesses" in Its Financial Reporting Controls

On May 10, according to a new document from the U.S. Securities and Exchange Commission, Trump Media & Technology Group (parent company of Truth Social) disclosed "material weaknesses" in its financial reporting controls and acknowledged that financial statements may contain errors.

The group announced 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 for complex transactions and has insufficient experienced personnel to meet SEC reporting requirements, leading to this issue.

Trump Media stated that it has hired more accounting staff, brought in third-party consultants, and standardized processes, but admitted that more work remains to be done.