Southport Acquisition (US:PORT)2022-11-14 21:40IPO and Financing - The company completed its IPO on December 14, 2021, raising gross proceeds of $230 million from the sale of 23 million units at $10.00 per unit[108]. - The underwriter of the IPO was entitled to a deferred fee of $8,050,000, payable only if a business combination is completed[127]. - The underwriter waived a deferred underwriting fee of $8,050,000, which was recorded to accumulated deficit[131]. - The company expects to incur approximately $300,000 for legal, accounting, due diligence, travel, and other expenses related to any business combination over the next 12 months[120]. - The company may need to seek additional financing to complete its initial business combination if cash available from the Trust Account is insufficient[123]. Financial Performance - As of September 30, 2022, the company reported a net income of $1,306,458 for the three months ended, driven by a $593,000 gain on the change in fair value of warrant liabilities and $657,605 unrealized gain on marketable securities[115]. - For the nine months ended September 30, 2022, the company achieved a net income of $15,047,487, primarily from a $14,872,000 gain on the change in fair value of warrant liabilities[116]. - The company has not generated any operating revenues to date and will not do so until after the completion of its initial business combination[114]. Assets and Liabilities - The company had cash of $173,387 and a working capital deficit of $213,445 as of September 30, 2022[117]. - The company has no long-term debt or capital lease obligations as of September 30, 2022[126]. - As of September 30, 2022, 23,000,000 shares of Class A common stock subject to possible redemption were presented as temporary equity at a redemption value of $235,999,921[133][136]. - For the three and nine months ended September 30, 2022, the company recorded accretion of $1,065,967 and $1,399,231 to remeasure the value of Class A common stock subject to possible redemption[136]. Operational Agreements - The company has entered into an agreement to pay its sponsor $15,000 per month for office space and administrative services until the completion of its initial business combination[128]. Accounting and Reporting - The company uses the two-class method for calculating net income per share, allocating 80% to Class A redeemable common stock and 20% to non-redeemable common stock for the same periods[138]. - The company is currently assessing the impact of ASU 2020-06 on its financial position, results of operations, or cash flows[140]. 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[142].