Wed, May 15, 9:24 PM (72 days ago)
Banzai International, Inc.'s 10-Q for the quarter ended March 31, 2024, reveals a challenging financial period. The company reported a net loss of $4.5 million, up from $3.8 million in the same quarter of 2023, driven by higher operating expenses and a slight decline in revenue. Revenue decreased 8.3% year-over-year to $1.08 million, primarily due to a decline in sales from the Reach product. Cost of revenue also decreased by 7.5%, resulting in a gross profit of $698,000, down 8.8% from the previous year. Operating expenses rose 35.9% to $4.3 million, mainly due to increased general and administrative costs. The company faces substantial doubt about its ability to continue as a going concern due to recurring losses, negative cash flows, and a significant working capital deficit. Management plans to seek additional financing but acknowledges the uncertainty of securing it on favorable terms. Adjusted EBITDA showed a larger loss of $1.5 million, reflecting increased interest expense and transaction-related costs.