This photo illustration shows an image of former President Donald Trump reflected on a mobile phone screen showing the Truth Social app on February 21, 2022 in Washington, DC.
Stephanie Reynolds | AFP | Getty Images
Trump Media Technology Group, the parent company of Donald Trump’s truth social platform, filed a financial report with the U.S. Securities and Exchange Commission on Monday showing a net loss of $327.6 million in the first quarter of this year and total revenue of $770,000.
The report is one of the first measures of the company’s true financial health since it debuted on the Nasdaq stock exchange in March after completing a merger with shell company Digital World Acquisition Corp.
DJT shares were relatively muted in after-hours trading following the earnings report, which was not widely publicized. The stock closed down 5% at $48.
Since going public, DJT stock has fluctuated on what experts call a meme stock trajectory, sometimes rising or falling sharply without any major news to explain the moves.
TMTG CEO Devin Nunes said in a statement on Monday that the company is exploring “a broad range of initiatives and innovations to build the Truth Social platform, including potential M&A activity.”
Nunes added: “We are particularly excited to advance live TV streaming by developing our own content delivery network, which we believe will be a significant enhancement to the platform.”
In April this year, the company announced that Truth Social would launch its TV streaming platform in three phases, with the first phase available for Android, iOS, and the Web. The second will launch as a standalone app for phones, tablets and other devices. The final phase will be rolled out for home TVs.
In its first-quarter report, TMTG said it had signed a contract with its first data center partner, which will host the TV platform, and a hardware vendor to provide the equipment.
The company told the U.S. Securities and Exchange Commission last week that it would delay filing its quarterly report after the agency accused its former auditor BF Borgers CPA of committing “massive fraud” against hundreds of companies, raising questions about the financials it provided. The accuracy of the information raised red flags.
