December 11, 2023

Since launching in early 2022, former President Donald Trump‘s Truth Social took in $3.7 million in net sales, and lost $73 million.

The numbers are the first time that any internal financial details on the social platform have been shared publicly, and they suggest that while Trump has made Truth Social his primary social media platform, it has not been translating into meaningful revenue for the tech startup, which is owned by Trump Media & Technology Group (TMTG).

The numbers were revealed in a new financial disclosure from TMTG’s SPAC merger partner Digital World Acquisition Corp. The filing revealed that in 2022, Truth Social lost $50 million on just $1.4 million of net sales, and through the first 6 months of this year it brought in $2.3 million, but lost $23 million.

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The financial situation of TMTG is such that “TMTG’s independent registered public accounting firm has indicated that TMTG’s financial condition raises substantial doubt as to its ability to continue as a going concern,” according to the filing.

In a frank assessment of its business, the filing says that “as of June 30, 2023, and December 31, 2022, management has substantial doubt that TMTG will have sufficient funds to meet its liabilities as they fall due, including liabilities related to promissory notes previously issued by TMTG,” and that “TMTG believes that it may be difficult to raise additional funds through traditional financing sources in the absence of material progress toward completing its merger with Digital World.”

The filing indicates that, if TMTG is unable to complete the merger with DWAC, and receive the pot of money on the line, it may not survive.

While TMTG was valued at $875 million when the merger with DWAC was first announced, Trump revealed in his latest financial disclosure form that his controlling stake is valued at between $5-$25 million.

The amended S-4 filing also broke out a number of updates and risk factors related to the company, including the fact that the long-planned streaming video service appears to be off the table for now. The filing makes no mention of the service (which was teased with conservative comedy specials and “Trump-specific programming”) except in relation to layoffs.

“On March 1, 2023, TMTG eliminated several positions,” the filing said. “This action followed a review of all departments, most significantly impacted TMTG’s streaming video on demand (SVOD) and infrastructure teams.”

Trump announced his tech and media company in late 2021, framing it as a competitor to big tech platforms like Facebook and Twitter.

In May of 2022, Trump agreed to make Truth Social his primary social platform, agreeing not to post on other platforms until 6 hours after he sends a “Truth.” However, since initially signing the deal with TMTG, Elon Musk acquired Twitter and reinstated Trump’s account (he also rebranded it as “X.”)

According to Monday’s filing, Trump on Oct. 30 “verbally affirmed” that he will continue to honor that agreement at least until the merger is complete.

And the filing details a number of risks related to TMTG’s business and oprations… but also has an entire section titled “Risks Related to our Chairman President Donald J. Trump,” citing his ongoing legal challenges, the companies he owned that have filed for bankruptcy (like his Atlantic City casino), and the companies that licensed his name (like Trump Vodka and Trump Shuttle) which subsequently went out of business.

“There can be no assurances that TMTG will not also fail,” the company warns.