Digital World Acquisition Corp (DWAC.O), the Special Purpose Acquisition Company (SPAC) planning to merge with Truth Social, revealed in a recent securities filing that the social media platform, launched by former U.S. President Donald Trump, incurred a loss of $31.6 million from early 2022 to mid-2023.

Trump, who announced the creation of Truth Social in October 2021 as a counter to major tech platforms like Twitter and Facebook that had banned him, saw the platform initially report a profit of $50.5 million in 2022. However, its net sales were only $1.4 million. In the first half of the following year, Truth Social’s losses amounted to $23 million against net sales of $2.3 million.

The financial situation of Trump Media & Technology Group (TMTG), the parent company of Truth Social, has been flagged by its independent registered public accounting firm. The firm raised concerns about TMTG’s ability to continue operating, citing significant financial challenges.

TMTG expressed doubts about securing additional funding through traditional means unless there is significant progress in its merger with Digital World. As part of cost-cutting measures, TMTG also reduced its workforce in March, primarily affecting its streaming video on demand and infrastructure departments.