Southport Acquisition Corporation Reports $1.6 Million Net Loss for Q2 2025 Amid Merger Plans

Southport Acquisition Corporation (SAC) reported a net loss of $1.6 million for the three months ended June 30, 2025, compared to a loss of $505,000 for the same period in 2024. The company's total expenses for the quarter amounted to $342,238, which included significant legal and accounting costs of $170,705 and administrative expenses of $142,228. For the six months ending June 30, 2025, SAC's net loss was $1.7 million, reflecting a substantial increase in operational costs and a $1.2 million loss attributed to changes in the fair value of warrant liabilities. This contrasts with a net loss of $243,377 for the first half of 2024, indicating a deterioration in financial performance year-over-year.

The company's financial position has also changed significantly, with total assets decreasing to $850,300 as of June 30, 2025, down from $1,055,129 at the end of 2024. This decline is primarily due to a reduction in cash and cash equivalents, which fell to $328,610 from $494,974. The working capital deficit increased to $4.37 million, up from $3.86 million, highlighting ongoing liquidity challenges. The company has also recorded a warrant liability of $5.8 million, up from $4.6 million, reflecting the volatility in the market and the impact of the company's operational decisions.

Strategically, SAC is in the process of completing a merger with Angel Studios, Inc., as outlined in a merger agreement signed on September 11, 2024. This agreement is contingent upon various conditions, including stockholder approvals and regulatory clearances. The merger is expected to convert all outstanding capital stock of Angel Studios into shares of SAC, with a total valuation of approximately $1.5 billion. The company has also entered into several support agreements with its sponsor and key stockholders to facilitate the merger process and ensure alignment of interests.

Operationally, SAC has not yet commenced any business operations, as all activities to date have focused on its formation and the pursuit of a business combination. As of June 30, 2025, the company had 4,237,987 shares of Class A common stock issued and outstanding, including 37,987 shares subject to possible redemption. The company has faced significant redemptions in the past year, with stockholders redeeming shares for cash in connection with extension proposals, which has further impacted its liquidity and capital structure.

Looking ahead, SAC's management has expressed concerns about the company's ability to continue as a going concern, given its current financial position and the need for additional capital to fund operations and complete the merger. The company plans to address these challenges through potential capital contributions from its sponsor and other financing arrangements. However, there is no assurance that these efforts will be successful, and the company may need to consider alternative strategies if it cannot complete the merger or secure necessary funding.