Southport Acquisition Corporation Reports Q1 2025 Financial Results, Net Loss of $101,682

Southport Acquisition Corporation has reported its financial results for the first quarter of 2025, revealing a net loss of $101,682 compared to a net income of $261,607 in the same period of 2024. The company attributed this shift primarily to a significant decrease in revenue from marketable securities, which generated only $4,494 in dividend income this quarter, down from $559,907 a year earlier. Additionally, the company recorded a $58,900 gain from the change in fair value of its warrant liability, a notable decrease from the $447,950 gain reported in the previous year.

In terms of operational changes, Southport's total assets decreased to $1,027,658 as of March 31, 2025, down from $1,055,129 at the end of 2024. This decline was driven by a reduction in cash reserves, which fell to $354,346 from $494,974, and a slight increase in marketable securities held in the Trust Account, which rose to $433,645 from $429,151. The company's liabilities also increased, with total liabilities reaching $9,201,636, compared to $9,127,425 at the end of the previous fiscal year.

Strategically, Southport is in the process of finalizing a merger with Angel Studios, Inc., as outlined in a Merger Agreement signed on September 11, 2024. This merger is expected to convert all outstanding capital stock of Angel Studios into shares of Southport's common stock, with the transaction valued at approximately $1.5 billion. The merger is contingent upon various conditions, including stockholder approvals and regulatory clearances. The company has also entered into a Sponsor Support Agreement, ensuring that the Sponsor will not redeem its shares in connection with the merger.

As of March 31, 2025, Southport's operational metrics indicate a working capital deficit of $4,027,523, reflecting ongoing challenges in maintaining liquidity. The company has incurred significant expenses related to its public company status and the pursuit of its business combination, which raises concerns about its ability to continue as a going concern. Management has indicated plans to address these challenges through potential loans from the Sponsor and other financing strategies, although there is no guarantee of success.

Looking ahead, Southport's management remains focused on completing the merger with Angel Studios and is actively seeking to secure the necessary approvals to finalize the transaction. The company has expressed optimism about the potential benefits of the merger, which could enhance its market position and operational capabilities. However, the ongoing market conditions and the company's financial health will be critical factors influencing its future performance.