Trump Media & Technology Group, the Truth Social mum or dad firm majority-owned by former president Donald Trump, filed a doc with the Securities and Exchange Commission this morning that helpfully particulars all the methods Trump himself poses a menace to the company and its shareholders.

While the corporate generated simply over $4 million in income in 2023, Trump Media’s valuation has fluctuated wildly since going public in March, at one level reaching greater than $7 billion. As of this morning, the corporate was valued at $3.7 billion. Trump Media has turn into a meme stock, the place the inventory value is ruled extra by vibes than conventional monetary efficiency.

The SEC document filed by Trump Media this morning, which introduced the general public inventory providing of 21.5 million shares, additionally detailed the corporate’s “risk factors.” These statements are customary for publicly traded corporations, and normally embody something from macroeconomic headwinds to worst-case situations like earthquakes or terrorist assaults. The submitting does embody a number of danger components that aren’t straight associated to Trump, together with competitors from different social media corporations, deficiencies in bookkeeping and accounting, and information privateness legal guidelines. And the corporate has faced multiple lawsuits from early workers of the corporate, who argue they deserve extra shares.

But a whole part is devoted to Trump-associated dangers, making Truth Social’s danger components distinctive as a result of they forged Trump’s function as chief promoter and majority shareholder as a menace to the corporate’s success.

“TMTG may be subject to greater risks than typical social media platforms because of the focus of its offerings and the involvement of President Donald J. Trump,” the corporate stated within the SEC submitting. “These risks include active discouragement of users, harassment of advertisers or content providers, increased risk of hacking of TMTG’s platform, lesser need for Truth Social if First Amendment speech is not suppressed, criticism of Truth Social for its moderation practices, and increased stockholder suits.”

Here’s how Trump Media says Trump himself may threaten the corporate:

Trump’s Legal Issues

Trump Media famous that if Trump “were to discontinue his relationship with TMTG due to death, disability, criminal conviction, incarceration, or any other reason, or limit his involvement with TMTG due to his ongoing candidacy for political office, TMTG would be significantly disadvantaged.”

Trump’s History of Bankruptcy

“Entities associated with President Donald J. Trump have filed for bankruptcy protection in the past,” the corporate stated within the submitting, which famous that the Trump Taj Mahal, Trump Plaza, the Trump Castle, the Plaza Hotel, and Trump Entertainment Resorts Inc. had all beforehand filed for chapter.

“While all of the foregoing were in different businesses than TMTG, there can be no guarantee that TMTG’s performance will exceed the performance of those entities,” the submitting stated.

Other Companies Refusing to Work With Truth Social

“To date, several potential third-party partners have expressed an unwillingness or reluctance to work on TMTG’s products or provide services for reasons including TMTG’s connection with President Donald J. Trump,” the submitting said.

Trump’s Use of Other Platforms

The firm warned that if Trump stopped utilizing Truth Social, its enterprise could be adversely affected.

Trump has an settlement to publish all content material he deems as “nonpolitical” to Truth Social first, and should wait six hours earlier than posting it on any web site. But Trump, as a politician, could possibly argue that something he posts is political content material, which means the corporate doesn’t have a lot energy if he needs to begin tweeting once more.

“Consequently, TMTG may lack any meaningful remedy if President Donald J. Trump minimizes his use of Truth Social,” the submitting states.

Politically Motivated Hackers

Trump’s involvement makes the corporate a first-rate goal for hackers, in keeping with the submitting.

“TMTG believes that it is a particularly attractive target for such breaches and attacks, including from nation states and highly sophisticated, state-sponsored, or otherwise well-funded actors,” the corporate stated within the submitting. “And TMTG may experience heightened risk from time to time as a result of geopolitical events.”

Trump’s Self-Interest

Trump, who owns 57.6 p.c of Trump Media, may steer the corporate to his profit in a manner that may not align with different Trump Media buyers.

“President Donald J. Trump will, as a controlling stockholder, be entitled to vote his shares in his own interests, which may not always be in the interests of TMTG’s stockholders generally,” the submitting says.