Twitter’s cash flow remains negative due to a nearly 50% drop in advertising revenue and a heavy debt load. This was stated by billionaire Elon Musk, failing to live up to his March expectations that the social network could reach a positive cash flow by June, writes Reuters.

“Need to reach positive cash flow before we have the luxury of anything else,” he tweeted in response to the recapitalization proposals.

In another tweet, Elon Musk noted that Twitter did not see the increase in ad revenue expected in June. But he added that July is a little more promising. Twitter Spaces is also not generating revenue yet and is “completely expendable,” he said.

It’s another sign that the aggressive cost-cutting measures Elon Musk has been taking since buying Twitter in October aren’t enough to get the social network into positive cash flow. It also suggests that Twitter’s ad revenue may not have recovered as quickly as the billionaire suggested in an April interview with the BBC.

We will remind that Twitter started paying authors a share of the income received from ads that appear in replies to their posts. Users who subscribe to Twitter Blue and have more than 5 million tweet views per month in the last 3 months are eligible to join the program.