Anzu Special Acquisition Corp I Reports $5.57 Million Net Income in Latest 10-Q Filing

Anzu Special Acquisition Corp I reported significant financial developments in its latest 10-Q filing for the quarter ending September 30, 2021. The company, which operates as a blank check firm, recorded a net income of $5.57 million for the third quarter and $4.47 million for the nine-month period, primarily driven by changes in the fair value of its warrant liabilities. Operating expenses for the quarter totaled $2.99 million, while the nine-month total reached $4.24 million. The company’s total assets surged to approximately $426.95 million, a substantial increase from $119,992 at the end of the previous fiscal year, largely due to the proceeds from its initial public offering (IPO).

The company completed its IPO on March 4, 2021, raising $425 million by selling 42 million units at $10 each. An additional 500,000 units were issued following the underwriters' partial exercise of their over-allotment option. The IPO proceeds were placed in a trust account, which now holds $425 million, while the company also generated $12.5 million from the sale of private placement warrants. As of September 30, 2021, Anzu had $1.03 million in cash and cash equivalents, a significant increase from $25,000 at the end of 2020.

In terms of operational metrics, Anzu has not yet engaged in any business combinations or generated operating revenues, as its activities have been limited to organizational efforts and evaluating potential acquisition targets. The company has reviewed several opportunities but has not finalized any transactions. As of the reporting date, Anzu had 42.5 million shares of Class A common stock outstanding, all of which are subject to possible redemption, and 10.63 million shares of Class B common stock.

The company’s management has indicated that it intends to focus on identifying high-quality businesses with transformative technologies for industrial applications. Anzu has until March 4, 2023, to complete a business combination, or it will be required to liquidate and redeem public shares. The company has also noted that it may need to raise additional funds to meet operational expenses or to finance a business combination, which could involve issuing new securities or incurring debt.

Looking ahead, Anzu's management remains optimistic about its ability to identify and execute a successful business combination. However, they acknowledge the inherent risks and uncertainties associated with the current market conditions and the ongoing impact of the COVID-19 pandemic on potential acquisition targets. The company continues to evaluate its liquidity needs and may seek additional financing to support its operations and strategic objectives.