Financial Performance - The Company had a net loss of $504,983 for the three months ended June 30, 2024, with $163,615 in dividend income and a $331,450 loss on the change in fair value of warrant liability[112]. - For the six months ended June 30, 2024, the Company reported a net loss of $243,377, which included $723,522 in dividend income and a $116,500 gain on the change in fair value of warrant liability[113]. - The Company incurred $1,833,885 in net cash used in operating activities for the six months ended June 30, 2024[116]. - The company raised substantial doubt about its ability to continue as a going concern for a period within 12 months from June 30, 2024[120]. Cash and Securities - As of June 30, 2024, the Company had cash of $490,693 and marketable securities held in the Trust Account amounting to $12,729,617[117]. - The Company generated gross proceeds of $230,000,000 from its IPO, with an additional $11,700,000 raised through a Private Placement[104]. Working Capital and Liabilities - The Company had a working capital deficit of $3,116,689 as of June 30, 2024, compared to a deficit of $2,808,465 as of December 31, 2023[116]. - The company has no long-term liabilities as of June 30, 2024[125]. - As of June 30, 2024, the company had no long-term debt or off-balance sheet arrangements[124][125]. Business Operations and Extensions - As of June 30, 2024, the Company had not commenced any operations and all activities related to its formation and IPO[111]. - The Company’s stockholders approved an extension for the initial business combination deadline from June 14, 2023, to September 14, 2023, with the possibility of further extensions up to March 14, 2024[107]. - The company has extended the deadline to complete the business combination six times, with the latest extension to March 14, 2024[129]. Financing and Agreements - The company may need to obtain additional financing to complete its initial Business Combination or due to significant public share redemptions[120]. - The Sponsor provided $333,228 in cash through capital contributions for the six months ended June 30, 2023[119]. - The underwriter waived its entitlement to a deferred fee of $8,050,000, which was recorded to accumulated deficit[128]. - The company entered into Non-Redemption Agreements, resulting in the transfer of up to 1,499,996 shares of Class B common stock to third parties[129]. - The excess fair value of the transferred Class B shares was determined to be $1,209,879, recognized as a non-redemption agreement expense[130]. Shareholder Transactions - A total of 18,849,935 shares of Class A common stock were redeemed for $197,694,657 in cash[122]. - The company is required to pay its Sponsor $15,000 per month for office space and administrative services[126].
Southport Acquisition (PORT) - 2024 Q2 - Quarterly Report