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Banzai International, Inc. has submitted its 10-Q filing for the quarterly period ended September 30, 2024.
The filing reports a decrease in revenue to $3,228,000 for the nine months ended September 30, 2024, compared to $3,479,000 in the same period the previous year. This decline is attributed to lower sales of the Reach product and churn in the Demio product.
Cost of revenue decreased to $1,049,000 from $1,133,000, resulting in a gross profit of $2,179,000, down from $2,346,000 in the previous year.
Operating expenses increased to $11,725,000 from $8,943,000, primarily due to higher general and administrative expenses, including increased costs for audit, legal, and other professional services.
The company reported an operating loss of $9,546,000, compared to $6,597,000 in the previous year.
Net loss for the nine months was $23,659,000, up from $8,033,000 in the previous year. The increase is due to losses on conversion and settlement of promissory notes and increased operating expenses.
Cash used in operating activities was $5,363,000, while cash provided by financing activities was $7,533,000, resulting in a net increase in cash of $2,170,000.
Banzai had a working capital deficit of $25,000,000 as of September 30, 2024, and an accumulated deficit of $70,425,711.
The filing details various financing activities, including a securities purchase agreement for the issuance and sale of common stock and warrants, generating gross proceeds of approximately $7.5 million.
The company continues to face substantial doubt about its ability to continue as a going concern, with plans to seek additional funding through equity financings and other means.
Banzai's management is committed to addressing material weaknesses in its internal control over financial reporting, as identified in the filing.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Banzai International Inc. quarterly 10-Q report dated November 14, 2024. To report an error, please email earnings@qz.com.