Trump Media & Technology Group, which owns Truth Social, posted an alarming loss on Monday and revenue of less than $1 million in its first quarter since going public.
Trump Media, which began trading in March under the ticker symbol DJT, credited its “born advertising effort” with revenue of $770,500, up from $1.1 million last year.
However, it posted a net loss of $327.6 million in the first three months of the year, compared with a loss of $210,300 a year ago.
In a press release, CEO Devin Nunes pointed to $311 million in non-cash expenses for “merger-related costs” associated with the merger with Digital World Acquisition Corp. earlier this year.
Trump Media, which pledged to have “sufficient working capital to fund operations for the foreseeable future,” reported $273.7 million in cash and cash equivalents at the end of the quarter.
It said it was still in the “early stages” of its development and focused on “long-term product development,” including a live streaming platform launched by Truth Social, “rather than quarterly revenue.”
Dunes said the company is “well capitalized and supported by a legion of retail partners who believe in our mission to provide a free speech beach against big tech censorship.”
The quarterly filing comes after the Securities and Exchange Commission accused former Trump Media auditor BF Borgers of “massive fraud” earlier this month. Trump Media rejected the accounting firm on May 3, and notified federal regulators last week that the shakeup would delay the filing of its quarterly earnings report.
During the closing hours on Monday, DJT was trading at $48.38 a share. In after-hours trading, it was up 36 cents at $48.74, still significantly down from its early peak of $80.
