Core Viewpoint - Beneficient is urging stockholders to vote on proxy proposals ahead of the Annual Meeting scheduled for April 30, 2025, emphasizing the importance of participation to meet quorum requirements [1][4]. Company Overview - Beneficient (NASDAQ: BENF) is a technology-enabled platform that provides exit opportunities, primary capital solutions, and related trust and custody services for holders of alternative assets through its online platform, AltAccess [1][5]. - The company aims to democratize the global alternative asset investment market, targeting mid-to-high net worth individuals, small-to-midsized institutions, and General Partners seeking exit options and value-added services [5]. Voting Information - Stockholders are encouraged to vote by April 29, 2025, through various methods including online, telephone, or by mailing a proxy card [2]. - The Annual Meeting will be held virtually, and stockholders who have already voted do not need to take further action unless they wish to change their vote [3][2]. Regulatory Compliance - Beneficient Fiduciary Financial, L.L.C., a subsidiary of the company, has received its charter under the State of Kansas' Technology-Enabled Fiduciary Financial Institution (TEFFI) Act and is subject to regulatory oversight [6]. Proxy Statement Information - The company has filed a definitive proxy statement with the U.S. Securities and Exchange Commission (SEC) regarding the solicitation of proxies for the Annual Meeting [7]. - Stockholders are encouraged to read all relevant documents filed with the SEC before making any voting decisions, as they contain important information [7].

Company Overview - Beneficient (NASDAQ:BENF) is a technology-enabled platform that provides exit opportunities and primary capital solutions, along with trust and custody services for holders of alternative assets through its online platform AltAccess [1][3] - The company aims to democratize the global alternative asset investment market, targeting mid-to-high net worth individuals, small-to-midsized institutions, and General Partners seeking exit options and value-added services [3] Upcoming Events - Beneficient will present a corporate update at the Emerging Growth Conference on April 17, 2025, with a webcast group presentation scheduled for 4:10 PM Eastern Time [1] - Investors can register for the conference in advance and access an archived webcast if they cannot attend live [2] Regulatory Information - Beneficient's subsidiary, Beneficient Fiduciary Financial, L.L.C., has received its charter under the State of Kansas' Technology-Enabled Fiduciary Financial Institution (TEFFI) Act and is regulated by the Office of the State Bank Commissioner [4]

Core Insights - Beneficient has successfully closed a $9.6 million primary capital commitment for Pulse Pioneer Fund, marking its first GP Primary transaction of the fiscal year [1][2] - The financing is expected to enhance the collateral for the Company's ExAlt loan portfolio by approximately $9.6 million in alternative assets [1] - The transaction is anticipated to add around $1.28 million to the tangible book value for the Company's stockholders, totaling approximately $10.46 million post-transaction [2] Company Strategy - Beneficient's GP Primary Commitment Program aims to provide primary capital solutions and 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 financing solutions to enhance shareholder value and support impactful investment strategies [2] Financial Metrics - As of December 31, 2024, the tangible book value attributable to the Company's stockholders is projected to increase from $9,177 thousand to $10,457 thousand post-transaction [5][6] - The total equity (deficit) stands at $14,260 thousand, with a tangible book value of $91,772 thousand before the transaction [5] Company Overview - Beneficient operates a technology-enabled platform that provides exit opportunities and primary capital solutions for holders of alternative assets through its online platform, AltAccess [1][7] - The Company aims to democratize the alternative asset investment market for mid-to-high net worth individuals and small to midsized institutions [7]

Company Overview - Beneficient (NASDAQ: BENF) is a technology-enabled platform that provides exit opportunities and primary capital solutions, along with trust and custody services for holders of alternative assets through its online platform, AltAccess [1][6] - The company aims to democratize the global alternative asset investment market, targeting mid-to-high net worth individuals, small-to-midsized institutions, and General Partners seeking exit options and value-added services [6] Annual Meeting Details - The Annual Meeting of Stockholders was adjourned due to insufficient shares present to constitute a quorum, allowing more time for stockholders to vote [2] - The meeting is rescheduled to reconvene on April 16, 2025, at 9:00 a.m. Central time, and will be held virtually [3] - During the adjournment, the company will continue to solicit proxies from stockholders regarding the proposals in the proxy statement [4] Voting Information - Stockholders are encouraged to vote before April 15, 2025, at 11:59 p.m. Central time, with options to vote via internet, telephone, or by returning a proxy card [5] - Proxies previously submitted will be voted at the reconvened meeting unless revoked, and stockholders who have already voted need not take further action unless they wish to change their vote [4] Regulatory Information - Beneficient Fiduciary Financial, L.L.C., a subsidiary of the company, received its charter under the State of Kansas' Technology-Enabled Fiduciary Financial Institution (TEFFI) Act and is subject to regulatory oversight [7] Proxy Statement - The company has filed a definitive proxy statement with the U.S. Securities and Exchange Commission (SEC) for the Annual Meeting, which includes important information for stockholders [8]

Core Viewpoint - Beneficient has entered into a binding agreement to settle all claims related to the GWG Holdings litigation, aiming to eliminate ongoing costs and distractions associated with the legal process while maintaining that the allegations are vigorously contested [1][2][4]. Group 1: Settlement Details - The proposed settlement is subject to court approval and will resolve all claims against Beneficient and its parties without any admission of fault or liability [3]. - The settlement amount will be paid entirely from funds available under applicable insurance policies [3]. Group 2: Company Position - The company disputes the allegations in the GWG Litigation but views the settlement as a significant step to refocus on its business plan and enhance shareholder value [4]. - Beneficient intends to support a vigorous defense against other outstanding GWG-related claims against parties other than itself [5]. Group 3: Company Overview - Beneficient operates a technology-enabled platform that provides exit opportunities and primary capital solutions for holders of alternative assets through its online platform, AltAccess [1][6]. - The company aims to democratize the global alternative asset investment market for mid-to-high net worth individuals and small-to-midsized institutions [6].

Financial Data and Key Metrics Changes - The company reported basic earnings per share of $10.30 and fully diluted earnings per share of $0.12 for the fiscal year-to-date as of December 31, 2024 [8] - Revenues for the third quarter were $4.4 million, compared to negative $10.2 million in the prior year [28] - Operating expenses declined 38% to $13.9 million in the third quarter of fiscal 2025 compared to $22.5 million in the same period for fiscal 2024 [29] - Permanent equity improved from a deficit of $148.3 million to a positive $14.3 million as of December 31, 2024 [30] Business Line Data and Key Metrics Changes - Ben Liquidity recognized $11.3 million of interest income in the third quarter, a decrease of 5.7% from the previous quarter [33] - Ben Custody's revenues were $5.4 million for the fiscal third quarter, stable compared to the previous quarter [36] - The NAV of alternative assets held in custody increased to $385.1 million as of December 31, 2024, driven by new assets and unrealized gains [35] Market Data and Key Metrics Changes - The company identified an unmet demand for liquidity of over $60 billion annually for smaller investors and institutions [11] - The average time for general partners to raise private equity funds has doubled to 18 months over the past three years [12] Company Strategy and Development Direction - The company aims to provide fiduciary products and services that deliver liquidity and primary capital for holders and managers of alternative assets [9] - The proposed acquisition of Mercantile Bank is expected to expand the range of custody, clearing, and control account services [19] - The company is focusing on high-net-worth individuals and small to midsized institutions, which have been underserved in terms of liquidity [10] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the potential for increased realization events and unrealized appreciation due to a positive outlook on the U.S. economy [54] - The company expects an uptick in liquidity transactions following the approval of the BCH transaction [59] Other Important Information - The company closed a $1.4 million primary capital commitment transaction during the fiscal third quarter [24] - The company has a cash and cash equivalents balance of $4.1 million and total debt of $122.9 million as of December 31, 2024 [39] Q&A Session Summary Question: Importance of public stockholder enhancement transactions - Management indicated that the enhancement transactions will facilitate reaccelerating ExchangeTrust activity and are expected to lead to additional transactions once completed [44][47] Question: Underlying moving parts in the loan portfolio - Management noted that the loan portfolio was flat, with unrealized gains around 6-7% and distributions for the quarter at approximately $4-5 million [51][52] Question: Timeline for liquidity transactions - Management expects an uptick in transactions following the approval of the BCH transaction, which is currently in the process of proxy votes [60][61] Question: Performance of the alternative asset collateral portfolio - Management reported unrealized appreciation of about 7% and similar distribution rates, with expectations for increased distributions in 2025 based on the U.S. economy outlook [63][65]

Core Insights - Beneficient announced a proposed transaction to increase tangible book value by $9 million for public company stockholders, with a permanent equity increase of $35 million [1][4] - The company completed its first primary capital transaction as part of ongoing business development activities [1][2] - Beneficient proposed the acquisition of Mercantile Bank International Corp to expand its capabilities in alternative and digital asset markets [3] Financial Performance - For the third quarter of fiscal 2025, Beneficient reported revenues of $4.4 million, a significant increase from $(10.2) million in the same quarter of fiscal 2024 [5][21] - Operating expenses decreased by 98% to $13.9 million in the third quarter of fiscal 2025, compared to $905.7 million in the same quarter of fiscal 2024, which included a non-cash goodwill impairment of $883.2 million [5][23] - The company improved its permanent equity from a deficit of $148.3 million as of June 30, 2024, to a positive $14.3 million as of December 31, 2024 [5][23] Business Segments - Beneficient's business segments include Ben Liquidity, which recognized $34.1 million of interest income for the nine months ended December 31, 2024, down 6.0% compared to the prior year period [15][30] - Ben Custody provided full-service trust and custody administration services, generating revenues of $5.4 million for the fiscal third quarter, consistent with the previous quarter [13][30] - The total investments at fair value were reported at $334.3 million as of December 31, 2024, supporting Ben Liquidity's loan portfolio [5][29] Strategic Initiatives - The proposed acquisition of Mercantile Bank is expected to enhance Beneficient's offerings in digital asset market solutions and custody services, potentially generating higher fee rates [3][11] - The company aims to drive new growth opportunities in calendar 2025, leveraging its expanded service offerings [3][4] - Beneficient's balance sheet strategy focuses on diversification across various asset classes and geographies, supported by a well-diversified alternative asset portfolio [8][9]

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].