(Reuters) -Shares of Trump Media & Technology Group fell more than 13% on Monday as the Truth Social platform parent raised going-concern doubts, struggling to meet its financial liabilities just days after going public through a blank-check merger.
The company posted a net loss of $58.2 million in the year ended December 2023 compared to a net profit of $50.5 million a year earlier. Revenue was $4.13 million last year, up from $1.47 million in 2022, it said in a filing.
“As of December 31, 2023 and 2022, management had 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,” the company said.
Trump Media said it expects to incur operating losses and negative cash flows from operations for the foreseeable future, as it works to expand its user base, attracting more platform partners and advertisers.
Its shares gained more than 16% on its first trading day on March 26, fueled by retail investors including supporters of former President Donald Trump.
But the stock has since then seen choppy trading, falling for the second straight session on Monday.
(Reporting by Yuvraj Malik in Bengaluru; Editing by Anil D’Silva and Arun Koyyur)
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