Banzai International(BNZI) - 2022 Q1 - Quarterly Report

Financial Performance - The company had a net income of approximately $6.7 million for the three months ended March 31, 2022, compared to a net income of approximately $11.0 million for the same period in 2021[119][120]. - The company incurred approximately $340,000 in general and administrative expenses and approximately $49,000 in franchise tax expense for the three months ended March 31, 2022[119]. Initial Public Offering (IPO) - The initial public offering (IPO) generated gross proceeds of $230.0 million from the sale of 23,000,000 units at $10.00 per unit, with offering costs of approximately $13.2 million[110]. - The underwriters of the IPO are entitled to a cash underwriting discount of 2.0% of the gross proceeds, totaling approximately $4.6 million, and a deferred fee of approximately $8.1 million[122]. Cash and Working Capital - As of March 31, 2022, the company had approximately $0.5 million in cash and a working capital deficit of approximately $710,000[115]. - The company placed $230.0 million of net proceeds from the IPO and certain proceeds from the private placement into a trust account, invested in U.S. government securities[112]. Business Continuity - If the company fails to complete a business combination by December 28, 2022, it will cease operations and redeem public shares at a price equal to the amount in the trust account[114]. Equity and Liabilities - The company has 23,000,000 shares of Class A common stock subject to possible redemption, classified as temporary equity[126]. - The company recognizes derivative warrant liabilities at fair value, with changes in fair value recorded in the statements of operations[124]. COVID-19 Impact - The company continues to evaluate the impact of the COVID-19 pandemic, which remains uncertain as of the date of the financial statements[117]. Regulatory Classification - The company is classified as a smaller reporting company under Rule 12b-2 of the Securities Exchange Act of 1934, and is not required to provide the information typically mandated under this item[135].