Southport Acquisition (US:PORT)2025-11-13 21:31Financial Performance - Revenues for the three months ended September 30, 2025, reached $76,542,482, a 280% increase from $20,121,166 in the same period in 2024 [195]. - For the nine months ended September 30, 2025, total revenues were $211,624,538, a 223% increase from $65,485,798 in the prior year [204]. - Total revenue for the nine months ended September 30, 2025, was $211.6 million, a 223% increase from $65.5 million in 2024 [205]. - Angel Guild revenue surged to $59,225,827, up 556% from $9,028,572, driven by an increase in memberships from 0.3 million to 1.6 million [196]. - Angel Guild revenue surged by $119.5 million, growing from 0.3 million to 1.6 million paying members, representing a 562% increase [205]. - Theatrical revenue increased by $27.9 million due to more theatrical box office releases in 2025, totaling $45.8 million [205]. Expenses and Losses - Cost of revenues increased to $34,333,955, a 323% rise from $8,107,950, primarily due to higher membership-related costs and royalties [198]. - Selling and marketing expenses rose to $64,683,558, a 290% increase from $16,602,045, largely due to promotional efforts for the Angel Guild and theatrical releases [199]. - Operating loss for the three months ended September 30, 2025, was $(38,090,870), compared to $(15,144,331) in the same period in 2024, reflecting a 152% increase in losses [195]. - The net loss for the nine months ended September 30, 2025, was $(91,874,332), compared to $(51,269,476) in the same period in 2024, representing a 79% increase in losses [204]. - Total cost of revenues rose to $81.1 million, a 159% increase from $31.3 million in 2024, driven by higher Angel Guild memberships and associated transaction fees [206]. - Selling and marketing expenses reached $176.7 million, a 222% increase from $54.9 million in 2024, primarily due to increased promotional activities for Angel Guild [207]. Membership and User Engagement - As of September 30, 2025, Angel Studios has approximately 1.6 million paying members from over 160 countries through the Angel Guild [161]. - The Angel Guild membership grew to approximately 1.6 million by September 30, 2025, accounting for 66.5% of total revenue, up from 0.6 million members and 32.5% of total revenue in 2024 [221]. - The average revenue per Angel Guild member for the nine months ended September 30, 2025, was $13.70 per month [221]. - Total installs of the Angel Mobile and TV App reached 100,245,157 as of September 30, 2025, up from 59,877,979 installs as of December 31, 2024 [222]. Financing and Capital Structure - The company generated gross proceeds of approximately $20.0 million from the sale of 3,538,661 shares of Class A Common Stock at $5.66 per share in September 2024 [169]. - In September 2025, Angel Studios raised approximately $55.0 million by selling 6,688,077 shares of Class A Common Stock at $8.23 per share [171]. - A Loan and Security Agreement provides Angel Studios with up to $100.0 million in term loans, with the first tranche of $40.0 million already funded [180]. - The company plans to use proceeds from the sale of Class A common stock, generating approximately $47.5 million, for business management and working capital [185]. - The company raised approximately $102.8 million from the sale of common stock during the nine months ended September 30, 2025 [217]. - The company raised $55.0 million from a Regulation A offering and $47.5 million from the issuance of common stock during the nine months ended September 30, 2025 [220]. Cash Flow and Financial Position - Cash and cash equivalents increased by $56.1 million to $63.3 million as of September 30, 2025, primarily from financing activities [212]. - Cash flows used in operating activities were $58.7 million, compared to $39.6 million in 2024, reflecting an increase in net loss and changes in working capital [218]. - Cash flows used in investing activities for the nine months ended September 30, 2025, were $15.6 million, a decrease of $16.3 million compared to cash flows provided by $0.7 million in 2024 [219]. - Cash flows provided by financing activities for the nine months ended September 30, 2025, were $130.4 million, compared to $25.0 million in 2024, an increase of $105.3 million [220]. - The repayment of notes payable increased significantly to $63.5 million in 2025 from $18.4 million in 2024, a net change of $45.1 million [220]. - The company incurred a net loss of approximately $91.9 million for the nine months ended September 30, 2025, with an accumulated deficit of approximately $175.8 million [214]. Strategic Initiatives - The company entered into a joint venture through an Asset Purchase Agreement to acquire assets related to the animated feature film, DAVID [182]. - The company aims to support filmmakers through its bitcoin treasury strategy, which may include capital raising transactions collateralized by bitcoin holdings [168]. - The company plans to continue funding operations through debt issuance and common stock sales, while managing marketing expenses to support growth [217]. Market Risks - The company is exposed to market price risk of digital assets, which could materially impact its financial condition and results of operations due to fair value measurement changes effective January 1, 2025 [234]. - The company had no off-balance sheet arrangements as of September 30, 2025, that could materially affect its financial condition [231].