The Trump Media & Technology Group Corp. showed “material weakness” on internal controls on financial reporting and increased the risk of false information, as the company’s latest quarterly result showed.
The company carried out an evaluation of its disclosures and controls and found that the procedures were not effective, the report says. It quoted: “The failure, formal accounting guidelines, processes and controls for the analysis and consideration of complex transactions as well as the need to design and maintain additional accounting personnel who have the necessary experience in the second reporting.”
The results come after the company has a net loss of $ 31.7 million for the first quarter, which ended with cash, cash equivalents and short -term investments of USD 759 million.
“The management of TMTG found that the material weakness mainly with the failure of failure, formal accounting guidelines, processes and controls for analysis, consideration and proper disclosure of income records as well as the need for additional accounting staff with regard to analysis, consideration of the necessary experience in the regulation of the SEC reporting.
The results increase the risks of a “reasonable possibility that a material wrong statement in the annual financial statements of a company will not be prevented or recognized in good time,” the explanation says.
The media group stated to carry out renovation measures, including the setting of additional accounting employees with the necessary background and knowledge to fix the problems.
This story was originally on Fortune.com
