Trump Media said he had “material weakness” in internal controls

Trump Media & Technology Group Corp. He showed the “material weakness” in the internal controls on financial reports, increasing the risks of erroneous statements, demonstrated the latest quarterly result of the firm.

The company evaluated its publications and controls and found that the procedures were not effective, according to the report. He cited “not designing and maintaining formal accounting policies, processes and controls to analyze, and count complex transactions, as well as the need for additional accounting staff who have the necessary experience in the regulation of dry reports.”

The conclusions occur after the company recorded a net loss of $ 31.7 million for the first quarter, which ended with cash, cash equivalents and short -term investments of $ 759 million.

“The TMTG management determined that the weakness of the material was mainly related to its failure in designing and maintaining formal accounting policies, processes and controls to analyze, take into account and properly disseminate the revenue registration, as well as the need for additional accounting staff that has the necessary experience in the Secondary Regulation,” the company said in a statement.

The findings increase the risks of a “reasonable possibility that an incorrect declaration of the financial statements of an entity cannot be avoided or detected,” according to the statement.

The media group said that it implemented repair measures, including the hiring of additional accounting staff with the background and the required knowledge to solve the problems.

This story originally presented to Fortune.com

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