Financial Performance - Beneficient reported revenues of $4.4 million for Q3 fiscal 2025, a significant increase from $(10.2) million in Q3 fiscal 2024, with total revenues for the nine months ended December 31, 2024, reaching $23.0 million compared to $(55.7) million in the prior year[7]. - GAAP revenues for Q3 2025 were $4,419,000, a decrease of 48.4% compared to Q3 2024's $(10,235,000)[20]. - Adjusted revenues for Q3 2025 were $4,427,000, down 49.3% from $8,456,000 in Q3 2024[20]. - Total revenues for the three months ended December 31, 2024, were $4,419,000, a decrease from $10,235,000 in the same period of 2023[45]. - For the nine months ended December 31, 2024, total revenues reached $23,026,000, with adjusted revenues of $23,572,000[50]. Operating Expenses and Income - Operating expenses decreased by 98% to $13.9 million in Q3 fiscal 2025, down from $905.7 million in Q3 fiscal 2024, which included a non-cash goodwill impairment of $883.2 million[7]. - GAAP operating loss for Q3 2025 was $(9,513,000), an improvement of 30.6% from $(915,951,000) in Q3 2024[20]. - Adjusted operating income for the nine months ended December 31, 2024, was $13.9 million, compared to $15.8 million in the prior year period, reflecting lower revenue due to decreased NAV of alternative assets[16]. - Operating income for the three months ended December 31, 2024, was a loss of $9,513,000, compared to a loss of $915,951,000 in the same period of 2023[45]. - Adjusted operating income for the three months ended December 31, 2024, was a loss of $7,301,000, reflecting ongoing operational challenges[47]. Net Income and Loss - For Fiscal Q3 2025, the net loss attributable to Ben's common shareholders was $8,639,000, compared to a net income of $12,914,000 in Q2 2025 and a net loss of $542,166,000 in Q3 2024[33]. - Year-to-date Fiscal 2025, the net loss attributable to Ben's common shareholders reached $1,781,521,000, compared to a loss of $2,029,424,000 in the same period of Fiscal 2024[33]. - Net income for the nine months ended December 31, 2024, was $43,831,000, compared to a net loss of $2,462,606,000 for the same period in 2023[45]. - The company reported a net loss attributable to common shareholders of $(8,639,000) for the three months ended December 31, 2024, compared to a net loss of $(542,166,000) in the same period of 2023[45]. Assets and Liabilities - Total assets as of December 31, 2024, were $400,012,000, an increase of 8.6% from $368,501,000 as of March 31, 2024[24]. - Cash and cash equivalents as of December 31, 2024, were $4.1 million, with total debt of $122.9 million[22]. - Total liabilities decreased to $295,226,000 as of December 31, 2024, from $309,567,000 as of March 31, 2024[46]. - The company’s accumulated deficit improved to $(2,007,272,000) as of December 31, 2024, from $(2,059,214,000) as of March 31, 2024[46]. Equity and Investments - Beneficient's permanent equity increased by $35 million through a re-designation of certain preferred equity, improving from a deficit of $148.3 million to a positive $14.3 million as of December 31, 2024[12]. - The company reported a total equity of $14,260,000 as of December 31, 2024, with a tangible book value of $91,772,000[53]. - The loan portfolio as of December 31, 2024, was supported by a diversified alternative asset collateral portfolio with a gross loan balance of $586 million and a net loan balance of $261 million after an allowance for credit losses of $325 million[12]. Proposed Transactions and Future Outlook - The proposed acquisition of Mercantile Bank for $1.5 million is expected to enhance Beneficient's digital asset market solutions and generate additional cash flow in calendar 2025[12]. - The company announced a proposed transaction to revise the liquidation priority of Beneficient Company Holdings, L.P., which is expected to provide $9.2 million of tangible book value to public company stockholders[12]. - Forward-looking statements indicate potential market growth and operational scaling, contingent on successful execution of the proposed transactions[43]. Regulatory and Compliance - The subsidiary, Beneficient Fiduciary Financial, received its charter under the Kansas TEFFI Act, indicating regulatory compliance and oversight[37]. - The company will file a preliminary proxy statement with the SEC regarding an amendment to increase authorized shares of Class B Common Stock[39]. Non-GAAP Financial Measures - The company emphasizes the importance of non-GAAP financial measures to provide a clearer understanding of its operating performance[54]. - Adjusted revenue excludes mark-to-market adjustments on related party equity securities, with adjusted segment revenues attributable to Ben's equity holders being the same as "adjusted revenues" related to Ben Liquidity, Ben Custody, and Corporate/Other Business Segments[55]. - Adjusted operating income (loss) excludes various adjustments including credit losses on related party debt securities and non-cash asset impairment, with adjusted segment operating income (loss) attributable to Ben's equity holders being consistent with these adjustments[56]. - Non-GAAP financial measures should not be considered as substitutes for GAAP revenues or operating income (loss), and cash flows not reflected in adjusted operating income (loss) can be significant[58].

Core Viewpoint - Beneficient (NASDAQ: BENF) is set to release its Third Quarter Fiscal 2025 financial results on February 13, 2025, and will host a webcast to present these results [1]. Company Overview - Beneficient aims to democratize the global alternative asset investment market by providing solutions to traditionally underserved investors, including mid-to-high net worth individuals and small-to-midsized institutions [3]. - The company offers a proprietary online platform, AltAccess, which allows customers to explore opportunities and receive proposals securely [3]. - Beneficient's AltQuote™ tool provides customers with a range of potential exit options within minutes [3]. Regulatory Information - Beneficient Fiduciary Financial, L.L.C., a subsidiary of Beneficient, has received its charter under the State of Kansas' Technology-Enabled Fiduciary Financial Institution (TEFFI) Act and is subject to regulatory oversight [4].

Core Viewpoint - Beneficient has successfully closed a $1.36 million primary capital commitment for 8F Fund, LP, marking its first GP Primary transaction since the announcement of its Public Stockholder Enhancement Transactions, which is expected to enhance shareholder value and support investment strategies in alternative assets [1][2]. Group 1: Financial Transactions - The financing of $1.36 million was exchanged for shares of Beneficient's Resettable Convertible Preferred Stock, which can be converted into Class A common stock [1]. - This transaction is anticipated to increase the collateral for the Company's ExAlt loan portfolio by approximately $1.36 million in alternative asset interests [1]. - Following the Public Stockholder Enhancement Transactions, the Company expects an addition of approximately $450,000 to its tangible book value, totaling around $10.23 million attributable to stockholders [2]. Group 2: Strategic Objectives - Beneficient's GP Primary Commitment Program aims to provide primary capital solutions and financing anchor commitments to general partners, addressing a potential demand of up to $330 billion for primary commitments [3]. - The management emphasizes the importance of innovative capital solutions for holders and managers of alternative assets, aiming to enhance the value of collateral backing the ExAlt loan portfolio [2]. Group 3: Company Overview - Beneficient is focused on democratizing the global alternative asset investment market, providing solutions for mid-to-high net worth individuals and small-to-midsized institutions [6]. - The Company operates its proprietary online platform, AltAccess, which offers various exit options and capital solutions for alternative asset holders [6].

Core Summary - Beneficient has entered into an agreement with entities controlled by its founder and CEO, Brad Heppner, to enhance shareholder value and drive long-term growth by allowing public company stockholders to share in the liquidation priority historically reserved for preferred equity holders [1] - The agreement is expected to increase the tangible book value attributable to public company stockholders from $0 to approximately $10 million as of September 30, 2024, and the company's market capitalization was $5,077,555 as of December 20, 2024 [2] - The company believes these changes will align the interests of preferred equity holders with public company stockholders, particularly in liquidity transactions, and expects to close additional ExchangeTrust transactions starting in Q1 2025 [2][3] Transaction Details - Public company stockholders will receive preferential treatment in the event of a liquidation, including 10% of the first $100 million distributed and 33.3333% of the net asset value of up to $5 billion of alternative assets added after December 22, 2024 [2] - The company will issue additional Class B common stock to current holders, maintaining their collective voting power at 42.67%, with restrictions on dividends and mandatory redemption at $0.001 per share under certain conditions [6] - The company's compensation policy will be amended to clarify allocations and issuances of Class S Ordinary Units to holders of FLP-1 and FLP-2 accounts, with certain restrictions on conversion rights [9] Financial Impact - The tangible book value attributable to public company stockholders is expected to increase to $9,932,000 pro forma, compared to $0 previously, based on the company's reconciliation of non-GAAP financial measures [15] - The company's market capitalization of Class A and Class B common stock was $5,078,000 as of December 20, 2024 [15] Customer Relations Initiative - Entities controlled by the company's founder and CEO, along with an affiliate, will forego up to $400 million of equity in Beneficient Holdings for the benefit of existing customers, with any unclaimed rights benefiting public company stockholders [4][5] Regulatory and Closing Conditions - The closing of the transactions is subject to approval by the company's stockholders, limited partners of Beneficient Holdings, and regulatory filings, with an expected completion in the first half of 2025 [11]

Core Viewpoint - The company has entered into an agreement to enhance shareholder value by allowing public company stockholders to participate in liquidation priorities historically reserved for preferred equity holders, which is expected to create tangible book value for public stockholders following the closing of the transactions [9][10][17]. Group 1: Public Stockholder Enhancement Transactions - The agreement includes provisions for public company stockholders to receive preferential treatment in the event of a liquidation of Beneficient Holdings, specifically 10% of the first $100 million distributed and 33.3333% of the net asset value of up to $5 billion of alternative assets added after December 22, 2024 [1][23]. - The tangible book value attributable to public company stockholders is projected to increase to approximately $10 million from $0 as of September 30, 2024, with a market capitalization of $5,077,555 based on the closing price of Class A common stock on December 20, 2024 [1][34]. - The company believes these changes will align the interests of preferred equity holders with public stockholders, particularly in liquidity transactions [10]. Group 2: Transaction Details - The existing limitations on the conversion of Preferred Series A Subclass 1 Unit Accounts held by Beneficient Holdings will be modified, allowing for a conversion of up to $10 million 60 days after closing and additional conversions once the net asset value exceeds $100 million [3]. - Upon closing, the company will amend its compensation policy to clarify the administration of allocations and issuances of Class S Ordinary Units related to certain accounts held by Beneficient Holdings [12]. - A Customer Relations Initiative will allow certain entities controlled by the CEO to forego up to $400 million of equity in Beneficient Holdings for the benefit of existing customers [18]. Group 3: Financial Measures - The tangible book value is defined as total stockholders' equity reduced by goodwill and intangible assets, plus temporary equity, with a reconciliation provided for non-GAAP financial measures [13][33]. - The tangible book value attributable to public company stockholders is expected to be $9,932 million on a pro forma basis, reflecting the anticipated impact of the transactions [14]. Group 4: Closing Conditions - The closing of the Public Stockholder Enhancement Transactions is subject to stockholder approval and regulatory filings, with an expected completion in the first half of 2025 [20].

DALLAS, Dec. 05, 2024 (GLOBE NEWSWIRE) -- Beneficient (NASDAQ: BENF) (“Ben” or the “Company”),  a technology-enabled platform providing exit opportunities and primary capital solutions and related trust and custody services to holders of alternative assets through its proprietary online platform AltAccess, announced it has entered into an agreement to acquire Mercantile Bank International Corp. (“Mercantile Bank”), a Puerto Rico-based International Financial Entity (“IFE”), in exchange for an aggregate purc ...

DALLAS, Dec. 03, 2024 (GLOBE NEWSWIRE) -- Beneficient (NASDAQ: BENF) (“Ben” or the “Company”),  a technology-enabled platform providing exit opportunities and primary capital solutions and related trust and custody services to holders of alternative assets through its proprietary online platform, AltAccess, is pleased to announce that it has been invited to present on the Emerging Growth Conference on Wednesday, December 4, 2024. The Company will host a webcast group presentation at 10:15 AM Eastern Time. I ...

DALLAS, Nov. 26, 2024 (GLOBE NEWSWIRE) -- Beneficient (the “Company”) (Nasdaq: BENF), a technology-enabled platform providing liquidity and related trust and custody services to holders of alternative assets, today announced that it has received notice from The Nasdaq Stock Market LLC ("Nasdaq") that it has regained compliance with the Stockholders’ Equity Requirement under Nasdaq Listing Rule 5550(b)(1) and the Audit Committee Requirement under Nasdaq Listing Rule 5605(c)(2). As a result, the Company’s sec ...

DALLAS, Nov. 22, 2024 (GLOBE NEWSWIRE) -- Beneficient (Nasdaq: BENF) (“Ben” or the “Company”), a technology-enabled financial services holding company announces that its subsidiary Beneficient Company Holdings, L.P. consummated a previously announced transaction pursuant to which approximately $35 million of its preferred equity was redesignated as non-redeemable, resulting in the addition of approximately $35 million of permanent equity on its balance sheet. As a result of the transaction, the Company beli ...

DALLAS, Nov. 22, 2024 (GLOBE NEWSWIRE) -- Beneficient (Nasdaq: BENF) (“Ben” or the “Company”), a technology-enabled financial services holding company, today announced the appointment of Karen J. Wendel as an independent member of the Company’s Board of Directors as of November 21, 2024. In addition to being an independent director, she was appointed to serve on the Audit, Products and Related Party Transactions and Enterprise Risk committees of the Board. Ms. Wendel is the President and CEO of TrustChains, ...