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Southport Acquisition Corporation Class A (PORT0.00%) has submitted its 10-Q filing for the quarterly period ended September 30, 2024.
The filing reports a net loss of $1,495,898 for the three months ended September 30, 2024, primarily due to a loss on the change in fair value of warrant liability and various administrative expenses.
As of September 30, 2024, the company held $12,895,117 in marketable securities in its Trust Account, with $517,975 in cash available for working capital purposes.
The company has entered into an Agreement and Plan of Merger with Angel Studios, Inc., which includes conditions such as the conversion of Angel Studios' capital stock into Southport Common Stock and the renaming of Southport to Angel Studios, Inc. upon closing.
Southport has extended its deadline to consummate a business combination to September 30, 2025, following stockholder approval of the Third Extension Amendment Proposal and the Redemption Limitation Amendment Proposal.
The company has identified and is addressing material weaknesses in its internal control over financial reporting, specifically related to the presentation of its statement of cash flows and recognition of excise tax liability.
Southport's management has expressed substantial doubt about the company's ability to continue as a going concern due to a working capital deficit and the need for additional financing to complete a business combination.
During the nine months ended September 30, 2024, the company reported net cash used in operating activities of $1,860,000 and net cash provided by investing activities of $31,867,787.
The company has entered into non-redemption agreements, resulting in the transfer of shares of Class B common stock to third parties, which were accounted for as capital contributions by the Sponsor.
Southport's public warrants and private placement warrants are accounted for as liabilities and are subject to re-measurement at each balance sheet date, with the change in fair value recognized in the company's statement of operations.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Southport Acquisition Corporation Class A quarterly 10-Q report dated November 14, 2024. To report an error, please email earnings@qz.com.