Trump Media admits ‘material weakness’ in its financial controls
The post Trump Media admits ‘material weakness’ in its financial controls appeared on BitcoinEthereumNews.com. Trump Media & Technology Group said its financial control systems are broken, and it doesn’t have the people or policies in place to handle its own accounting. The company released this information on Thursday in a filing, confirming that it found a “material weakness” in how it handles financial reports. The issue increases the risk that serious mistakes in the company’s numbers might go unnoticed. The company said it failed to set up proper systems to track and report its financial activity. The team also doesn’t have enough qualified staff with real experience in SEC reporting, which the company admitted openly. It said there’s a clear risk of errors that wouldn’t be found on time. The internal review was part of a check on the firm’s reporting process for the first quarter of the year. Trump Media loses $31.7 million, hires new staff to fix issue The company reported a net loss of $31.7 million for the quarter ending March 31. Despite that, it said it closed the quarter with $759 million in cash, cash equivalents, and short-term investments. The company’s statement said the weak financial controls were mostly caused by missing accounting policies and a lack of staff with the right skills. In the company’s own words: “TMTG’s management determined that the material weakness primarily related to its failure to design and maintain formal accounting policies, processes, and controls to analyze, account for, and properly disclose income recordation as well as a need for additional accounting personnel who have the requisite experience in SEC reporting regulation.” Trump Media claimed it’s already started fixing the problem by bringing in new accountants who understand how to handle reporting rules. It didn’t say how many people were hired or how long the fixes might take. But the company said this was part…
The post Trump Media admits ‘material weakness’ in its financial controls appeared on BitcoinEthereumNews.com.
Trump Media & Technology Group said its financial control systems are broken, and it doesn’t have the people or policies in place to handle its own accounting. The company released this information on Thursday in a filing, confirming that it found a “material weakness” in how it handles financial reports. The issue increases the risk that serious mistakes in the company’s numbers might go unnoticed. The company said it failed to set up proper systems to track and report its financial activity. The team also doesn’t have enough qualified staff with real experience in SEC reporting, which the company admitted openly. It said there’s a clear risk of errors that wouldn’t be found on time. The internal review was part of a check on the firm’s reporting process for the first quarter of the year. Trump Media loses $31.7 million, hires new staff to fix issue The company reported a net loss of $31.7 million for the quarter ending March 31. Despite that, it said it closed the quarter with $759 million in cash, cash equivalents, and short-term investments. The company’s statement said the weak financial controls were mostly caused by missing accounting policies and a lack of staff with the right skills. In the company’s own words: “TMTG’s management determined that the material weakness primarily related to its failure to design and maintain formal accounting policies, processes, and controls to analyze, account for, and properly disclose income recordation as well as a need for additional accounting personnel who have the requisite experience in SEC reporting regulation.” Trump Media claimed it’s already started fixing the problem by bringing in new accountants who understand how to handle reporting rules. It didn’t say how many people were hired or how long the fixes might take. But the company said this was part…
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