Southport Acquisition (PORT) - 2022 Q2 - Quarterly Report

Financial Performance - For the three months ended June 30, 2022, the company reported a net income of $3,371,189, primarily from a $3,427,000 gain on the change in fair value of warrant liabilities[113] - For the six months ended June 30, 2022, the company reported a net income of $13,741,030, with a $14,279,000 gain on the change in fair value of warrant liabilities[114] - The company has not generated any operating revenues to date and will not until after completing its initial business combination[112] IPO and Financing - The company generated gross proceeds of $230 million from its IPO, selling 23 million units at $10.00 per unit[106] - The company has deposited $234.6 million of net proceeds from its IPO and private placement into a trust account[107] - The company expects to incur approximately $300,000 for legal, accounting, and due diligence expenses related to any business combination[118] - The company may need to seek additional financing to complete its initial business combination if cash available is insufficient[121] - The underwriter is entitled to a deferred fee of $8,050,000, payable only upon completion of a business combination[125] Cash and Working Capital - As of June 30, 2022, the company had cash of $472,622 and working capital of $139,063[115] - The company has no long-term debt or capital lease obligations as of June 30, 2022[124] Stock and Equity - As of June 30, 2022, the company has 23,000,000 shares of Class A common stock subject to possible redemption, presented as temporary equity at a redemption value of $234,933,954[130][131] - For the three and six months ended June 30, 2022, the company recorded accretion of $22,304 and $333,264 to remeasure the value of Class A common stock subject to possible redemption[131] - The company allocates net income using an 80% ratio for Class A redeemable common stock and 20% for non-redeemable common stock for the three and six months ended June 30, 2022[135] Regulatory and Accounting Considerations - The company is currently assessing the impact of ASU 2020-03 and ASU 2020-06 on its financial position, results of operations, or cash flows[138] Investment Strategy - The company invests net proceeds from its IPO and Private Placement in U.S. government securities with a maturity of 185 days or less, minimizing exposure to interest rate risk[140]