Banzai International(BNZI) - 2022 Q2 - Quarterly Report

Financial Performance - As of June 30, 2022, the company reported a net income of approximately $2.8 million for the three months ended June 30, 2022, primarily from changes in fair value of derivative warrant liabilities[126] - For the six months ended June 30, 2022, the company had a net income of approximately $9.5 million, driven by approximately $9.9 million in income from changes in fair value of derivative warrant liabilities[129] - The company reported a net loss of approximately $4.3 million for the three months ended June 30, 2021, primarily due to losses from changes in fair value of derivative warrant liabilities[128] 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[117] - The underwriters received a cash underwriting discount of 2.0% of the gross proceeds from the IPO, totaling approximately $4.6 million[132] - The company has placed $230.0 million in a Trust Account, invested in U.S. government securities, until the completion of a Business Combination or distribution to stockholders[119] Business Viability and Concerns - The company had a working capital deficit of approximately $944,000 as of June 30, 2022, raising substantial doubt about its ability to continue as a going concern[122] - If a Business Combination is not completed by December 28, 2022, the company will cease operations and redeem Public Shares at a price equal to the amount in the Trust Account[121] Economic and Market Risks - The company's operations may be adversely affected by economic uncertainty and volatility in financial markets, including downturns and inflation[143] - Factors such as increases in oil prices and interest rates could negatively impact the company's business[143] - Supply chain disruptions and declines in consumer confidence and spending are potential risks to the company's performance[143] - The ongoing effects of the COVID-19 pandemic, including new variants, remain a concern for the company's operations[143] - Geopolitical instability, such as the military conflict in Ukraine, could also affect the company's ability to complete an initial Business Combination[143] Regulatory Classification - The company is classified as an emerging growth company under the JOBS Act, allowing it to delay the adoption of new or revised accounting standards[140] - The company is classified as a smaller reporting company and is not required to provide extensive market risk disclosures[144]