Truth Social, former US President Donald Trump’s alternative social media platform, is showing signs of financial weakness, with sources claiming it has failed to pay major bills since launching earlier this year.
Truth Social owes about $1.6 million to tech company RightForge, Fox Business first reported last week. Billed as a right-wing web hosting service “without the censorship of Big Tech,” the company provides Truth Social’s internal infrastructure.
While the company has not made a public statement about the status of its payments, its top executive has continued to reaffirm his support for the former president.
“RightForge believes in the mission of President Trump’s platform and desire for free speech[es] to continue to support the president in his media efforts,” CEO Martin Avila said in a statement to the news outlet.
Truth Social and RightForge did not respond Luckhis request for comment.
The news comes after ongoing legal troubles have dogged the new social media platform since it was announced last fall, months after Twitter banned Trump from the platform for inciting violence during the Capitol Hill riots on January 6, 2021.
The social media venture was originally conceived as part of a merger between her holding company Trump Media & Technology Group (TMTG) and special purpose acquisition company (SPAC) Digital World Acquisition Corp (DWAC).
The merger would value the company at an initial $875 million, according to the press release accompanying the announcement.
“I created TRUTH Social and TMTG to resist the tyranny of Big Tech,” Trump said in the announcement.
Soon after, news broke of a US Securities and Exchange Commission (SEC) investigation into the merger. In a series of depositions over the next year, DWAC repeatedly highlighted the precarious situation of both Truth Social and TMTG.
More recently, he tried to delay the merger altogether, noting that any damage to Trump’s reputation in the near future could ultimately hurt the company.
“If President Trump becomes less popular or there are further controversies that damage his credibility or people’s desire to use a platform associated with him and from which he will derive financial benefits, the results of TMTG’s operations, as well as the outcome of the proposed business combination could be adversely affected,” the company wrote in an SEC filing released last week.
In May, DWAC noted that while Truth Social has the potential to generate significant revenue in the future, there is no evidence to support that hope at present.
“There is no operating history upon which to base any assumption as to the likelihood that TMTG will prove successful, and TMTG may never generate operating income or ever achieve profitable operations,” the company wrote in an SEC filing. “If TMTG fails to address these risks, its business will likely fail.”
In June, the SEC stepped up its investigation into the merger, issuing document requests and subpoenas to DWAC. A federal court in New York also subpoenaed members of the company’s board of directors.
DWAC has scheduled a shareholder meeting for early September. Ahead of that meeting, the company is asking investors to vote “yes” to delaying the merger for 12 months.
“Absent the Extension, the Board believes there is a substantial risk that we will not be able, despite our best efforts, to complete the Business Combination on or before the Closing Date,” the company wrote in last week’s SEC filing, adding that if he cannot meet the deadline, he would be forced to liquidate.
This story was originally featured on Fortune.com