Southport Acquisition Corporation Reports $5.1 Million Net Loss for Fiscal Year 2024

Southport Acquisition Corporation (SAC) reported a net loss of $5.1 million for the fiscal year ending December 31, 2024, a significant decline from a net income of $2.7 million in the previous year. The loss was primarily attributed to operating expenses of $1.6 million, a $4.1 million loss on the change in the fair value of warrant liabilities, and a financing expense of $275,000. In contrast, the previous year’s income was bolstered by substantial dividend income of $6.7 million from marketable securities held in trust. The company has not generated any operating revenue to date, as its activities have been focused on identifying a target for its initial business combination.

SAC's financial position has deteriorated, with cash reserves decreasing to $495,000 as of December 31, 2024, down from $2.2 million the previous year. The company also reported a working capital deficit of $3.9 million, compared to a surplus of $2.8 million in 2023. The Trust Account, which holds proceeds from the company’s initial public offering (IPO), contained $429,151 at year-end, a sharp decline from $44.7 million in 2023, reflecting significant redemptions by shareholders. In total, shareholders redeemed approximately $197.7 million, $32.2 million, and $12.5 million in connection with three extension meetings held in 2023 and 2024.

Strategically, SAC is pursuing a merger with Angel Studios, having entered into a Merger Agreement on September 11, 2024. The agreement stipulates that upon closing, all outstanding capital stock of Angel Studios will be converted into shares of SAC common stock, with a total valuation of $1.5 billion plus any capital raised by Angel Studios prior to the closing. The merger is contingent upon various conditions, including stockholder approval and regulatory compliance. SAC has also secured a Sponsor Promissory Note for up to $1 million to cover expenses related to the business combination.

Operationally, SAC has faced challenges, including a material weakness in internal controls over financial reporting, which management is actively working to address. The company has also been impacted by external factors such as geopolitical tensions and market conditions, which could affect its ability to complete the merger. Looking ahead, SAC has until September 30, 2025, to finalize its initial business combination, with the possibility of extending this deadline further. The company’s future performance will largely depend on the successful execution of this merger and the subsequent operational integration of Angel Studios.