Banzai International Inc

NASDAQ:BNZIUnited States

Unaudited Condensed Consolidated Statements of Cash Flow For the Nine Months Ended September 30, --------------------------------------------- 2024 2023 ---------------------- ----------------- Cash flows from operating activities: Net loss $ (17,120,493) $ (8,033,477) Adjustments to reconcile net loss to net cash used in operating activities: Depreciation expense 3,726 5,596 Provision for credit losses on accounts receivable 54 3,879 Non-cash share issuance for marketing expenses -- -- Non-cash settlement of GEM commitment fee 200,000 -- Non-cash share issuance for Yorkville redemption premium -- -- Non-cash interest expense 379,354 914,944 Non-cash interest expense - related party 261,775 345,382 Amortization of debt discount and issuance costs 68,459 646,684 Amortization of debt discount and issuance costs - related party 873,728 1,268,703 Amortization of operating lease right-of-use assets 131,627 129,705 Stock based compensation expense 665,409 830,791 Gain on extinguishment of liability (550,262) -- Loss on debt issuance 171,000 -- Loss on debt issuance of term notes 381,000 -- Loss on debt issuance of convertible notes -- -- Change in fair value of warrant liability (562,000) -- Change in fair value of warrant liability - related party (345,000) -- Change in fair value of simple agreement for future equity -- (184,993) Change in fair value of simple agreement for future equity - related party -- (1,927,007) Change in fair value of bifurcated embedded derivative liabilities -- 36,500 Change in fair value of bifurcated embedded derivative liabilities - related party -- 72,359 Change in fair value of convertible promissory notes 501,000 -- Change in fair value of term notes 66,813 -- Change in fair value of convertible bridge notes -- -- Changes in operating assets and liabilities: Accounts receivable 67,609 (29,861) Deferred contract acquisition costs, current -- 48,191 Prepaid expenses and other current assets (12,591) 120,459 Deferred offering costs -- (766,409) Accounts payable 3,557,189 1,296,098 Deferred revenue 6,476 (39,428) Accrued expenses (432,073) (128,027) Operating lease liabilities (231,691) (211,204) Earnout liability (22,274) (206,985) ------------------ ---------------- Net cash used in operating activities (11,941,165) (5,808,100) ------------------ ---------------- Cash flows from financing activities: Payment of GEM commitment fee (1,200,000) -- Repayment of convertible notes (Yorkville) (750,000) -- Proceeds from related party advance 100,000 -- Proceeds from term notes, net of issuance costs 1,000,000 -- Repayment of notes payable, carried at fair value (412,421) -- Proceeds from Yorkville redemption premium 35,040 -- Proceeds from issuance of promissory notes - related party -- 1,150,000 Proceeds from issuance of convertible notes, net of issuance costs 2,502,000 1,485,000 Proceeds from issuance of convertible notes, net of issuance costs - related party -- 2,533,000 Proceeds received for exercise of Pre-Funded warrants 17 -- Proceeds from issuance of common stock and warrants 6,257,370 13,362 ------------------ ---------------- Net cash provided by financing activities 7,532,006 5,181,362 ------------------ ---------------- Net decrease in cash (4,409,159) (626,738) Cash at beginning of period 2,093,718 1,023,499 ------------------ ---------------- Cash at end of period $ (2,315,441) $ 396,761 ================== ================ Supplemental disclosure of cash flow information: Cash paid for interest 306,109 313,813 Cash paid for taxes 5,075 8,825 Non-cash investing and financing activities Shares issued to Roth for advisory fee 578,833 -- Shares issued to GEM 529,943 -- Shares issued for marketing expenses 334,772 -- Shares issued to MZHCI for investor relations services 94,800 -- Shares issued to J.V.B for payment of outstanding debt 115,000 -- Settlement of GEM commitment fee 200,000 -- Shares issued to Yorkville for commitment fee 500,000 -- Shares issued to Yorkville for redemption premium 115,800 Shares issued for exercise of Pre-Funded warrants 866 Issuance of convertible promissory note - GEM 1,000,000 -- Conversion of convertible notes - Yorkville 2,002,000 -- Conversion of convertible notes - related party 2,540,091 -- Bifurcated embedded derivative liabilities at issuance -- 623,065 Bifurcated embedded derivative liabilities at issuance--related party -- 1,062,776