Digital World Reports Mounting Losses in Amended Annual Report

Digital World Acquisition, the SPAC that has been trying for two years to merge with Trump Media and Technology Group, lost $15.6 million in the fiscal year ended Dec. 31, 2022, according to an amended annual report filed Friday. Losses were nearly $2 million for the year ended Dec. 31, 2021.

Separately, in a 10-Q filing, for the quarter ended Sept. 30, 2023 (page 2), the SPAC reported a net loss of about $12.2 million — more than three times greater than losses reported for the year-ago quarter.

Digital World has incurred and expects to incur significant cost in pursuit of its acquisition plans, the SPAC’s independent accounting firm noted in the report. “These factors raise a substantial doubt about its ability to continue as a going concern.”

The auditor for Donald Trump’s TMTG has raised similar doubts about the company’s prospects for survival.

The companies face a June 2024 deadline for completing the long-gestating deal, although extensions are available up to September of next year. Read more.

Related Posts