Reality Social, the social media platform former President Trump began after he was booted from Twitter, faces an uphill battle because it reportedly racks up debt whereas producing little income.

The social media platform owes greater than $1 million to RightForge, the service that hosts the app on the internet, Fox Enterprise reported earlier this week, citing three folks with direct data of the matter. In line with Fox Enterprise’ sources, Reality Social despatched solely three funds to RightForge — and hasn’t paid the corporate in any respect since March of this yr. The sources declare RightForge is contemplating authorized motion to get well the $1.6 million it’s owed, whereas sources inform The Washington Submit that the 2 firms have been speaking completely via attorneys in latest weeks.

However in the meanwhile, RightForge — which positions itself as supporting free speech and opposing “Massive Tech censorship” — remains to be publicly supporting Trump. “We absolutely stand behind the president and his endeavors,” RightForge’s chief government, Martin Avila, informed the Submit.

Reality Social could also be struggling partly as a result of visitors numbers are declining. The Submit reported views on the positioning have declined considerably from when the positioning launched — down 300,00zero views per day from the 1.5 million day by day views it noticed its first day. Along with technical failures and a spate of faux accounts, the corporate has additionally confronted setbacks in buying a trademark for “Reality Social.” The U.S. Patent Workplace famous that two different firms with related names would result in a “probability of confusion” if Trump have been to get the title trademarked, so it declined the appliance. Trump will seemingly enchantment the choice.

Digital World Acquisition Group, a clean test firm (SPAC) trying to amass Reality Social, has stated in public filings that the social platform has neither a assured income nor a powerful path towards progress. The corporate moreover stated this week that it might face harm if Trump “turns into much less standard or there are additional controversies that harm his credibility.”

The SPAC can be at present underneath investigation by the SEC. The fee is trying into whether or not Digital World and Reality Social entered negotiations forward of Digital World going public, which might be unlawful. In the meantime Digital World’s inventory value has plummeted nearly 75 % since March, and the corporate reported it has misplaced $6.5 million for the reason that begin of the yr.

In different filings, in accordance with the Submit, Digital World forged doubt on Reality Social’s potential success, writing that “plenty of firms that have been related to [Trump] have filed for chapter” and that “there may be no assurances that [Trump’s media company] won’t additionally turn out to be bankrupt.”