Trump Media & Technology Group has shown “material weakness” in internal financial reporting, increasing the risk of incorrect conditions, showed the latest quarterly result of the firm.
The company made an assessment of its disclosure and control and found that the procedures were not effective, the report said. It provides “inability to develop and support official accounting policies, processes and control for analysis, as well as to consider complex operations, as well as the need for an additional accounting officer who has the necessary experience in regulating SEC reporting.”
The results came after the company offered a net loss of $ 31.7 million in the first quarter, ending with cash, cash equivalent and short -term investments in $ 759 million.
“TMTG management has determined that material weakness is primarily related to its inability to develop and maintain formal accounting, processes and control for analysis, accounting and properly disclosure, as well as the need for an additional accounting employee that has the necessary experience in regulating SEC reporting,” the company said.
According to the statement, the statement will not be prevented by “the risk of” a reasonable possibility that the material improper inclusion of the financial reporting of the subject of the legal entity will not be prevented and found, “the statement said.
The media group said it has implemented the recovery measures, including the hiring of additional accounting staff with the necessary background and knowledge to correct the problems.
Originally this story was presented on Fortune.com
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2025-05-10 14:16:00
Ruth Carson, Bloomberg
