In a recent confrontation on Fox News, Truth Social CEO Devin Nunes was pressed on the company's financial troubles after former President Donald Trump's media venture suffered a significant decline in market value. As revealed in a regulatory filing with the SEC, Truth Social had incurred a loss of $15.96 million in its last operating year, with revenues totaling just over $4.1 million but costs amounting to $58.2 million.

The repercussions of this financial setback reverberated through the market, as shares of Trump Media & Technology Group (TMTG), which holds a majority stake in Truth Social, plummeted by 21%. This decline resulted in billions of dollars being wiped off the company's valuation. Initially, TMTG shares surged to $78 per share, but they closed at $48.66 on Monday, marking a sharp decline in just a week.

During the conversation with Nunes, Fox News host Maria Bartiromo questioned when Truth Social would turn profitable. Nunes defended the company's financial position, stating that the reported losses were influenced by excessive regulatory burdens during the company's initial public offering (IPO). Despite the challenges, Nunes pointed out that Truth Social had no debt and $200 million in cash, allowing the company to focus on strengthening its platform and potentially expanding through technological acquisitions or developments.

However, the auditor for Truth Social, BF Borgers of Colorado, raised concerns about the company's ability to continue as a "going concern." This sentiment was echoed by experts who emphasized the need for Truth Social to attract a larger user base in order to achieve profitability. Todd Landman, a professor of political science at the University of Nottingham, explained that the success of Truth Social and its associated stock, DJT, hinged on providing appealing content, functionality, and services while significantly expanding their user base.

Trump, who holds a nearly 60% stake in Truth Social, defended the company's position, emphasizing its cash reserves and absence of debt. He highlighted the role of Truth Social in disseminating his message to millions of people, claiming that people around the world wanted to hear what he had to say. However, it remains to be seen if Trump's endorsement and the company's financial backing will be sufficient to sustain Truth Social's growth and profitability.

As Truth Social faces challenges in its early stages, the company will need to address its financial losses, attract more users, and develop a robust ecosystem independent of established tech giants. The road to profitability may require significant strategic planning and execution, with the company's ability to adapt, innovate, and offer unique content being key factors in its long-term success.

Newsweek has reached out to Trump's spokesperson for comment on the recent financial disclosures, yet awaits a response.