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Bannix Acquisition Corp. (BNIX-1.63%) has submitted its 10-Q filing for the quarterly period ended September 30, 2024.
The filing includes financial statements for the quarter, showing a net loss of $154,697. Operating costs for the quarter were $248,848, with interest income on the trust account of $178,084 partially offsetting these costs.
As of September 30, 2024, Bannix had $271,833 in cash and a working capital deficit of $4,794,747. The company has been utilizing funds to pay existing accounts payable and for due diligence on prospective initial Business Combination candidates.
The company has entered into a proposed Business Combination Agreement with VisionWave Technologies, Inc. The Business Combination is expected to close in the first quarter of 2025, subject to customary closing conditions.
Bannix held a Special Meeting of Stockholders on September 6, 2024, where stockholders approved an amendment to extend the date to consummate a Business Combination to March 14, 2025. At the meeting, stockholders holding 1,232,999 shares exercised their right to redeem such shares for a pro rata portion of the funds in the Trust Account.
The company has identified a material weakness in its internal control over financial reporting related to the accounting for complex financial instruments and fair value measurements. Management is implementing changes to remediate this weakness.
The filing also discusses the potential impact of the 1% excise tax under the Inflation Reduction Act of 2022 on redemptions conducted after December 31, 2022. The excise tax could affect the cash available to complete a Business Combination.
Bannix is within 12 months of its mandatory liquidation date as of the date of the filing. If a Business Combination is not consummated by December 14, 2024, the company will liquidate and dissolve.
The company received a letter from Nasdaq (NDAQ-0.10%) stating that its securities are subject to delisting for not completing a Business Combination within 36 months of the IPO registration statement's effectiveness. Bannix has appealed this determination.
Management does not believe that any recently issued, but not yet effective, accounting pronouncements would have a material effect on the company’s financial statements.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Bannix Acquisition Corp. quarterly 10-Q report dated November 14, 2024. To report an error, please email earnings@qz.com.