Digital World Acquisition Corp Indicates Two Years Of Annual Statements Can’t Be Relied Upon
Digital World Acquisition Corp (NASDAQ: DWAC), the special purpose acquisition vehicle that is looking to acquire Donald Trump’s Truth Social, filed a report with the Securities and Exchange Commission this afternoon indicating that its financial reports for the last two years cannot be relied upon.
The company indicated that the audit committee concluded that the audited financial statements for the year ended December 31, 2021, cannot be relied upon. The issue is said to relate to errors associated with the accounting of certain expenses, as outlined in a filing made on May 18, 2023.
That filing simply identified that “an error related to the accounting for certain expenses in the previously issued financial statements as of and for the year ended December 31, 2022” exists.
As a result of the issue, Digital World Acquisition Corp intends to amend the 2021 10-K to correct the misstatements, which will be included in the restate 2022 10-K that is to be filed with the SEC, however a timeline was not provided.
The announcement follows the company last week identifying that issues were discovered related to the company’s 2022 audited financial statements, also related to weak internal controls that lead to the misstatement of expenses.
The changes are not expected to have an impact on the cash position of the company, or cash held in its trust account.
At the same time, the company disclosed that certain institutional investors, referred to as its PIPE investors, as of October 11 had terminated an additional $191.5 million invested in the company, bringing the total lost investment to $467.0 million.
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