Slam Corp. Reports $1.8 Million Net Income for 2024, Faces Liquidity Concerns

Slam Corp., a Cayman Islands exempted company, reported net income of $1.8 million for the year ended December 31, 2024, compared to $4.6 million in the prior year. The 2024 net income included approximately $3.7 million in interest income from cash held in the trust account and $1.8 million in non-operating income from the change in fair value of derivative warrant liabilities, offset by $3.4 million in general and administrative expenses and a $284,000 loss on the issuance of a backstop agreement. The company had no operating revenues during either period. As of December 31, 2024, Slam had approximately $518 in its operating bank account and a working capital deficit of approximately $3.8 million.

Significant changes from the previous fiscal year include a decrease in net income, a reduction in interest income from the trust account (from $11.7 million to $3.7 million), and an increase in general and administrative expenses. The decrease in interest income resulted from the liquidation of investments held in the trust account on February 17, 2023, with subsequent funds held in a cash deposit account. The company's financial statements reflect the assumption that it will continue as a going concern, although management acknowledges substantial doubt about this ability due to liquidity concerns and a mandatory liquidation date of June 25, 2025, if a business combination is not completed.

During the reporting period, Slam underwent several key developments. The company entered into a Business Combination Agreement with Lynk Global, Inc. on February 4, 2024, with subsequent amendments extending the termination date to June 30, 2025. This agreement involves a series of mergers and conversions resulting in Lynk Global, Holdings Inc. becoming the publicly traded entity. The company also experienced significant redemptions of Class A ordinary shares by shareholders, reducing the balance in the trust account. As of April 10, 2025, 16,140,267 Class A ordinary shares and 165,000 Class B ordinary shares were issued and outstanding. The aggregate market value of the registrant’s voting ordinary shares held by non-affiliates as of June 30, 2024, was approximately $21,468,572.

Slam's business strategy focuses on acquiring companies in the sports, media, entertainment, health and wellness, and consumer technology sectors. The company leverages the extensive networks and experience of its management team, including Alex Rodriguez and Himanshu Gulati, to identify and evaluate potential acquisition targets. Key acquisition criteria include a large addressable market, defensible business models, and strong management teams. The company's financial position, as of December 31, 2024, included approximately $22,852,136 available to consummate an initial business combination after payment of IPO expenses. The company notes several risk factors, including the possibility of not completing a business combination by the termination date, resulting in liquidation and a return of approximately $10.00 per share to public shareholders. The company also highlights the potential for conflicts of interest among its management and sponsors.