Digital World Acquisition Corp., which plans to merge with the parent company of Donald Trump’s Truth Social platform, reported it made accounting errors in its last financial report, adding to financial reporting issues that have threatened to delist the company from Nasdaq, on top of two investigations that have delayed the deal with Trump.
In a May 18 filing, Digital World Acquisition, a special purpose acquisition company (SPAC) that signed a deal in 2021 to merge with Trump’s media company to take Truth Social public, reported to the Securities and Exchange Commission it had made accounting errors in its annual financial report for 2022.
The year-end report can “no longer be relied upon,” Digital World told regulators, and the company is now developing a remediation plan to address the “material weakness” in its “internal control over financial reporting,” per the filing.
Digital World Acquisition also has not filed an earnings report for the first quarter of 2023, which is required for all companies listed on Nasdaq.
The company has until July 24 to submit a plan or be delisted from the stock exchange—the SEC can then accept or deny the company’s plan, and if it rejects it, Digital World can appeal.
In a public statement on Thursday addressing the SEC’s filing, Digital World said the delisting warning was “expected” and it was working “diligently” to file its earnings before July 24.