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Trump Media files reaudited financial statement
A smartphone displays the logo for Donald Trump’s Truth Social app on March 25, 2024.
Ana Barclay | Getty Images
Trump Media on Monday presented an updated inspection of the company’s finances by a newly hired public accounting firmafter your last auditor has been accused of fraud by the US Securities and Exchange Commission.
Trump Media shares ended the trading session down more than 5%.
The media company, majority owned by the former president donald trump and trades as DJT on Nasdaq, said its revised registration statement includes a new audit conducted by Semple, Marchal & Cooper, LLP, based in Phoenix, Arizona.
The company behind the social media platform Truth Social said in a Press release that its latest filing amends a mid-April registration statement and offers no new shares.
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“I want to thank SMC for serving as our independent auditor and allowing us to file an Amended Registration Statement, which we expect the SEC to review immediately,” Trump Media CEO Devin Nunes said in the press release.
Trump Media hired Semple, Marchal & Cooper, LLP in early May, replacing its previous auditor, BF Borgers CPA. Three days before Trump Media announced this change, the SEC charged BF Borgers with “massive fraud” that affected more than 1,500 records.
The federal regulatory agency accused the “mock audit factory” of failing to meet established auditing standards and falsely representing to clients that its work would meet those standards.
The SEC said BF Borgers and its owner, Benjamin Borgers, agreed to pay a total of $14 million in civil penalties and submit to permanent bans from auditing public companies.
Despite Monday’s stock drop, Trump Media boasts a market capitalization of nearly $7.5 billion, which critics say is wildly disproportionate to its small amount of revenue the company reported earnings.
The data shows that the company’s only product, Truth Social, appears to be struggling to maintain its user basewhich already generates only a small fraction of the traffic enjoyed by established social media giants like X and Facebook.