Southport Acquisition (PORT) - 2023 Q2 - Quarterly Report

Financial Performance - For the three months ended June 30, 2023, the company reported a net income of $1,657,247, which included $2,864,209 in dividend income from marketable securities held in the Trust Account[133]. - For the six months ended June 30, 2023, the company had a net income of $2,841,712, consisting of $5,389,508 in dividend income, offset by various expenses including $1,110,969 in income tax[134]. Cash and Working Capital - As of June 30, 2023, the company had cash of $461,464 and a working capital deficit of $199,924,069[138]. - The company plans to seek loans from its management team or sponsor to address expected working capital deficiencies, with up to $1,500,000 of such loans potentially convertible into warrants[145]. Investment Activities - The company incurred net cash used in investing activities of $3,923,712 for the six months ended June 30, 2023, primarily for purchases of marketable securities[141]. - The net proceeds from the IPO and Private Placement are invested in U.S. government securities or money market funds, minimizing exposure to interest rate risk[164]. Business Operations - As of June 30, 2023, the company had not commenced any operations and had not generated any operating revenues[131]. - The company has extended the deadline to consummate its initial business combination from June 14, 2023, to September 14, 2023, with the possibility of further extensions[130]. Expenses and Liabilities - The company has incurred increased expenses due to being a public company, including legal and accounting compliance costs[132]. - The Company has no long-term debt, capital lease obligations, or long-term liabilities as of June 30, 2023[152]. Shareholder Activity - On May 25, 2023, the Sponsor converted 4,200,000 shares of Class B common stock into Class A common stock, resulting in a total of 27,200,000 shares of Class A common stock issued and outstanding[150]. - As of June 9, 2023, holders of 18,849,935 shares of Class A common stock redeemed their shares for $197,694,657 in cash, leaving 4,150,065 shares subject to possible redemption[150]. - The Company entered into Non-Redemption Agreements with third parties, resulting in the transfer of up to 1,499,996 shares of Class B common stock in exchange for not redeeming 4,000,000 shares of Class A common stock[159]. IPO and Fees - The underwriter of the IPO was entitled to a deferred fee of $8,050,000, which was waived on August 22, 2022, and recorded to accumulated deficit[158]. - The excess fair value of the 500,000 Class B shares transferred upon the consummation of the Extension was determined to be $386,961[160].