Anzu Special Acquisition Corp I Reports $12.5 Million Net Income in Q1 2022

Anzu Special Acquisition Corp I reported a net income of $12.5 million for the first quarter of 2022, a significant turnaround from a net loss of $1.5 million in the same period of 2021. The company attributed this improvement primarily to a change in the fair value of its warrant liabilities, which contributed $14.4 million to income in the latest quarter, compared to a $512,000 loss from the same source a year earlier. Operating expenses for the quarter were $1.5 million, up from $966,000 in the prior year, reflecting increased costs associated with being a public company and due diligence efforts.

As of March 31, 2022, Anzu's total assets stood at approximately $426.3 million, slightly down from $426.9 million at the end of 2021. The company held $127,105 in cash and had $425 million in investments held in a trust account, which is earmarked for a future business combination. The company’s liabilities decreased to $25.6 million from $38.6 million at the end of 2021, largely due to a reduction in derivative warrant liabilities, which fell from $21 million to $6.7 million.

Anzu has not yet completed any business combinations since its initial public offering (IPO) in March 2021, where it raised $425 million. The company is actively seeking high-quality businesses with transformative technologies for industrial applications as potential targets. As of the latest report, Anzu has not generated any operating revenues and does not expect to do so until after a business combination is finalized. The company continues to evaluate various opportunities but has not yet determined a specific target.

In terms of operational metrics, Anzu reported a working capital deficit of $3.3 million as of March 31, 2022, compared to a surplus of $3.2 million a year earlier. The company has also issued a working capital loan of $750,000 to support its operations, which is part of a larger potential loan agreement of up to $1.5 million from its sponsor. The company’s management has indicated that additional funding may be necessary to meet operational needs and complete a business combination.

Looking ahead, Anzu Special Acquisition Corp I has until March 4, 2023, to complete its initial business combination, or it will face mandatory liquidation. The company is actively pursuing potential targets and remains optimistic about its ability to identify a suitable business to merge with, leveraging the funds held in its trust account for this purpose. However, the ongoing geopolitical and economic uncertainties, including the impact of the COVID-19 pandemic, may pose challenges to its plans.