In reply to: I'd have to see the nature of the losses, as often companies posted by krudler
I know next to nothing about Truth Social and its potential long-term viability, but have to imagine after he either dies or is out of public life its profitability will be significantly impacted.
no idea of the financials beyond the loss, the number of users and the meager revenue but would seem if this was a reasonable path to profitability they would not have issued that. Then again with Trump's record they night simply be protecting themselves.
I’m looking at the 10-K now. You guys will like these parts:
Risks Related to President Donald J. Trump
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TMTG’s success depends in part on the popularity of its brand and the reputation and popularity of President Trump. Adverse reactions to publicity relating to President Trump, or the loss of his services, could adversely affect TMTG’s revenues and results of operations.
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President Trump is the subject of numerous legal proceedings. An adverse outcome in one or more of the ongoing legal could negatively impact TMTG.
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The terms of a license agreement with President Trump is not terminable by TMTG when it may be desirable to TMTG. The license agreement does not require President Trump to use Truth Social in certain circumstances, including in connection with posts that President Trump deems, in his sole discretion, to be politically related.
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Because President Trump is a candidate for president, he may divest his interest in Truth Social and may cease any involvement in its management.
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TMTG depends on numerous third-parties to operate successfully, and many of these third parties may not want to engage with TMTG to provide any services.
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Here is the going concern comment. It’s moot now that the companies have merged.
Substantial Doubt about the Company’s Ability to Continue as a Going Concern
The accompanying financial statements have been prepared assuming that the Company will continue as a going concern. As discussed in Note 1 to the financial statements, it is uncertain that the Company will consummate a business merger in the allotted time. If a business merger is not consummate but the specified date, there will be a mandatory liquidation and subsequent dissolution of the Company. Additionally, the Company has incurred and expects to incur significant cost in pursuit of its acquisition plans. These factors raise a substantial doubt about its ability to continue as a going concern. The financial statements do not include any adjustments that might result from the outcome of this uncertainty.
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On the P&L, $20M of their $33M in expenses went to legal. The rest was spent on setting up the company.
I think that’s is a turd company. I also think that this filing is meaningless, given the merger. I’d like to see a combined statement, just for fun.
Given his change on tik tok and the signifiicant investor then voting yes this still seems like an entity designed for grift to me based upon the valuations and the actual numbers but time will tell.
The subsequent events section should cover material changes that occurred between the date of the financials and the date of the report.
If you’re not an accountant, non of this would be common knowledge.
If he wins, he would pretty much have to divest under any normal ethical standards. If he does, it probably becomes worthless. If he loses, he becomes irrelevant (and the company becomes worthless).
Of course, he may just ignore ethical standards, win and not divest and use the presidency to drive business to his platform.
I guess that he could place his shares in a blind trust, and continue to use the platform while he is in office.
A competent money manager would bleed out the shares during his time in office, just to diversify and book some profits.