Banzai International, Inc. ( BNZI ) shares are trading higher on Wednesday after the company announced strategic business initiatives to improve net income.

The company plans to reduce annual operational expenses by up to $9.9 million by March 31, 2025, and other expenses by up to $3.6 million.

The initiative is expected to boost Banzai’s net income by about $13.5 million annually once fully implemented.

In particular, the company expects to cut staffing and contractor expenses by 27%, aiming to maintain agility and innovation.

Apart from this, Banzai has restructured its long-term debt with Columbia Pacific Advisors, extending its maturity to 2027 and shifting interest payments to Payable-in-Kind (PIK), reducing cash outflows. If fully converted to equity, the $1.9 million annual interest expense could be eliminated.

Additional cost-saving measures include curbing discretionary spending, reducing legal, accounting, and real estate expenses, and utilizing automation to boost operational efficiency.

Joe Davy, CEO of Banzai, said, “Alongside the $5m private placement transaction and debt restructuring transactions the company has executed in the last two weeks, we believe that implementing this strategic initiative, if fully achieved, will enable us to substantially extend our cash runway and invest in growth.”

“We are dedicated to managing costs efficiently while still advancing innovative products and maintaining the exceptional service our customers rely on, all without sacrificing growth. We will continue to invest in our software platform, sales and marketing and product development.”

Price Action: BNZI shares are up 80.4% at $4.98 at the last check Wednesday.

Read Next:

Majority Of Taiwanese Citizens Downplay Invasion Threat From China Within Next 5 Years: Here Is How TSMC, UMC And Others Would Be Impacted