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, ...

DALLAS, Nov. 21, 2024 (GLOBE NEWSWIRE) -- Beneficient (NASDAQ: BENF) (“Ben” or the “Company”), whose subsidiary Beneficient Fiduciary Financial, L.L.C., is a Technology-Enabled Fiduciary Financial Institution (TEFFI) today provided an update to the State of Kansas Joint Committee on Fiduciary Financial Institutions Oversight about its business operations, the digital innovation occurring in the alternative asset industry and related economic development activity for the benefit of Kansas communities under t ...

Financial Performance - Beneficient reported a net income of $12.914 million for the period, with a decrease in accumulated deficit to $(1,450.826) million[143]. - Total revenues for the three months ended September 30, 2024, were $8,561,000, compared to a loss of $42,761,000 in the same period of 2023[166]. - The net income attributable to Beneficient common shareholders was $12,914,000, a recovery from a loss of $371,735,000 in the prior year[166]. - The company reported an operating loss of $13,715,000, an improvement from a loss of $381,764,000 in the same quarter last year[166]. - The net income per common share for Class A was $2.98, recovering from a loss of $115.95 in the previous year[166]. - The net income attributable to common shareholders for the six months ended September 30, 2024, was $60.6 million, a substantial improvement from a loss of $1.5 billion in the prior year[198]. - The company generated net income of $54.1 million for the six months ended September 30, 2024, but has an accumulated deficit of $2.0 billion[211]. Assets and Liabilities - The total equity as of September 30, 2023, was $932.259 million, reflecting a significant change from the previous period[144]. - Total assets as of September 30, 2024, amounted to $368.79 million, a slight increase from $368.50 million on March 31, 2024[165]. - Total liabilities decreased to $256.45 million from $309.57 million[165]. - Accumulated deficit improved to $(1.99) billion from $(2.06) billion[165]. - The company reported a balance of $1,842,534 in total assets as of September 30, 2023, with a significant liability of $(1,450,826)[175]. Cash Flow and Liquidity - Cash and cash equivalents decreased to $4.48 million from $7.91 million[165]. - Cash flows from operating activities showed a net cash used of $19.3 million for the three months ended September 30, 2024, compared to $27.4 million in the same period last year[205]. - The company reported a net cash provided by investing activities of $11.2 million for the three months ended September 30, 2024, down from $25.7 million in the same period last year[205]. - The total cash, cash equivalents, and restricted cash at the end of the period was $4.8 million, an increase from $2.4 million at the end of the same period last year[205]. - As of September 30, 2024, Beneficient reported unrestricted cash and cash equivalents of $4.5 million, down from approximately $3.5 million as of October 31, 2024[211]. Share Issuance and Stockholder Impact - Beneficient's Class A common stock issuance included 211 shares to settle liabilities and 363 shares issued, totaling $673 thousand[143]. - The company may issue additional shares of common or preferred stock without stockholder approval, potentially diluting existing stockholder interests[135]. - The company issued 1,076,462 shares of Class A common stock in connection with the conversion of BCG common units[161]. - Following the de-SPAC merger with Avalon, the company issued 99,649 shares of Class A common stock and 34,961 shares of Series A preferred stock[259]. - The Company executed a reverse stock split at a ratio of 1-for-80 effective April 18, 2024, with proportional adjustments made to equity awards and warrants[217]. Operational Changes and Cost Management - The company implemented an operating cost reduction plan, resulting in the furlough of approximately 30 employees, representing about 20% of its workforce as of July 11, 2023[187]. - An additional layoff of 15 employees, representing approximately 10% of the workforce, was approved effective November 3, 2023[187]. - The company has plans to further reduce spending with third-party vendors as part of its cost reduction strategy[187]. - Employee compensation and benefits amounted to $7,135,000, down from $15,398,000 year-over-year[166]. Regulatory and Compliance Risks - Beneficient's operations are subject to comprehensive governmental regulation, which may lead to fines or penalties for violations[135]. - There is substantial doubt about the company's ability to continue as a going concern, although financial statements are prepared on a going concern basis[157]. - The company faces repayment risks related to its liquidity transactions, which could impact financial stability[135]. - Beneficient's future performance may be adversely affected by changes in economic and market conditions[135]. Investment and Growth Strategies - The company plans to invest in new product initiatives and growth strategies, including potential acquisitions[156]. - The company plans to expand its product offerings through Ben Insurance Services and Ben Markets, focusing on customized insurance products and broker-dealer services[181]. - The company generated interest and fee income from ExAlt Loans, which are collateralized by cash flows from exchanged alternative assets[181]. Impairment and Fair Value Adjustments - The balance of goodwill and intangible assets may require future write-downs due to impairment risks[135]. - The company recognized a loss on impairment of goodwill amounting to $3.7 million for the three months ended September 30, 2024, compared to a loss of $1.4 billion in the same period last year[205]. - The company performed an interim impairment assessment due to a significant decline in Class A common stock price, leading to a goodwill impairment charge of $3.7 million for the six months ended September 30, 2024, compared to $1.4 billion for the same period in 2023[308]. Financial Instruments and Valuation - The company recognized a net loss of $224,000 in the change in fair value of financial instruments for the three months ended September 30, 2024[251]. - The fair value of equity interests in the GWG Wind Down Trust was nominal at $0.6 million as of September 30, 2024, following the reorganization plan effective August 1, 2023[244]. - The fair value of the contingent interest feature derivative liability resulted in a net gain of $0.2 million and $1.6 million for the three and six months ended September 30, 2023, respectively[286]. - The fair value of the Convertible Debenture was $1.9 million, with an aggregate loss of $1.7 million recognized during the three and six months ended September 30, 2024[288].

Reports Second Quarter of Positive GAAP Net Income Maintains Cost Efficient Operating Profile DALLAS, Nov. 14, 2024 (GLOBE NEWSWIRE) -- Beneficient (NASDAQ: BENF) (“Ben” or the “Company”), a technology-enabled financial services holding company that provides liquidity and related trust and custody services to holders of alternative assets, today reported its financial results for the fiscal 2025 second quarter, which ended September 30, 2024. Commenting on the fiscal 2025 second quarter results, Beneficient ...

Core Viewpoint - Beneficient (NASDAQ: BENF) is set to release its Second Quarter Fiscal 2025 financial results on November 14, 2024, followed by a webcast presentation on November 15, 2024, at 8:00 a.m. Eastern Standard Time [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 exit 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 regulated by the Office of the State Bank Commissioner [4].

DALLAS, Oct. 04, 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 $126 million of its preferred equity was redesignated as non-redeemable. As a result of the transaction, which was approved by the Company's founders holding the majority of the preferred equity, Beneficient expects a ...

DALLAS, Oct. 04, 2024 (GLOBE NEWSWIRE) -- Beneficient (NASDAQ: BENF) ("Ben" or the "Company"), a technology-enabled financial services holding company, today announced the appointment of Patrick J. Donegan as an independent member of the Company's Board of Directors as of September 30, 2024. In addition to being an independent director, he was appointed to serve on the Audit, Products and Related Party Transactions, Credit and Enterprise Risk committees of the Board. Mr. Donegan brings almost thirty years o ...

Financial Data and Key Metrics Changes - The company reported investments with a fair value of $331.4 million, up from $329.1 million at the end of the previous fiscal year [21] - Revenues for Q1 2025 were $10.0 million, compared to a negative $2.7 million in Q1 2024, largely due to a release of a recognized loss contingency accrual of $55.0 million [21][22] - Operating expenses decreased by 70% to $17.3 million in Q1 2025 from $56.9 million in Q1 2024 [21] Business Line Data and Key Metrics Changes - **Ben Liquidity**: Recognized $10.8 million in base interest revenue, up 1.9% from the prior quarter, with an operating loss of $0.5 million compared to an operating loss of $29.4 million in the previous quarter [22] - **Ben Custody**: NAV of alternative assets was $380.7 million, slightly down from $381.2 million, with revenues of $5.4 million, down from $5.6 million in the prior quarter [23] Market Data and Key Metrics Changes - The unmet demand for liquidity in the U.S. alternative asset market is estimated at over $61 billion annually, projected to grow to more than $100 billion within the next five years [14] - The market for general partners seeking liquidity for restructurings exceeds $100 billion annually, indicating a significant opportunity for the company [14] Company Strategy and Development Direction - The company aims to address the $400 billion market demand for liquidity restructuring solutions and primary capital commitments through its fintech platform, Ben AltAccess, and the newly launched Machine Automated Pricing System (MAPS) [10][15] - The company is focused on scaling its capital in line with the demand for liquidity and primary capital products, enhancing its balance sheet over time [17] Management's Comments on Operating Environment and Future Outlook - Management highlighted a positive legal update, including the vacating of a $55.3 million arbitration award, which is expected to improve the company's financial position [18] - The SEC has terminated its investigation into the company, which is seen as a positive development for future operations [19] Other Important Information - The company has been listed on NASDAQ for a year, increasing market visibility and confidence among target audiences [11] - The custody business returned to profitability in the quarter ending June 30 [12] Q&A Session Summary - The call concluded without a formal Q&A session, as the operator indicated that participants could disconnect after the financial update [25]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Title of each class Trading Symbol(s) Name of each exchange on which registered Class A common stock, par value $0.001 per share BENF Nasdaq Stock Market LLC Warrants, each whole warrant exercisable for one share of Class A common stock, par value $0.001 per share, and one share of Series A convertible preferred stock, par value $0.001 per share BENFW Nasdaq Stock Market LLC FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) O ...

Financial Performance - Beneficient reported revenues of $10.0 million for Q1 fiscal 2025, a significant improvement from $(2.7) million in the same quarter of fiscal 2024[1]. - Total revenues for the three months ended June 30, 2024, were $10,046 thousand, compared to a loss of $2,743 thousand in the same period of 2023, indicating a significant recovery[25]. - Net income attributable to Beneficient common shareholders for the same period was $47,667 thousand, a substantial improvement from a net loss of $1,115,523 thousand in the prior year[25]. - Operating income before income taxes was $44,338 thousand, a notable increase from a loss of $1,155,970 thousand in the previous year[25]. - Total segment revenues attributable to Ben's equity holders for Fiscal Q1 2025 were $16,235,000, a decrease of 0.2% compared to $16,273,000 in the prior quarter[14]. - Total adjusted segment revenues attributable to Ben's equity holders were $16,242,000, down 0.4% from $16,306,000 in the previous quarter[18]. - Net income attributable to Ben's common shareholders was $47,667,000, compared to a loss of $66,217,000 in the prior quarter[20]. - Total segment operating income attributable to Ben's equity holders was $44,864,000, a significant improvement from a loss of $195,051,000 in the prior quarter, reflecting a change of 98.3%[15]. Assets and Liabilities - Total assets as of June 30, 2024, were $361,304 thousand, a decrease from $368,501 thousand as of March 31, 2024[26]. - Total liabilities decreased to $258,542 thousand from $309,567 thousand in the previous quarter, reflecting improved financial health[26]. - As of June 30, 2024, Beneficient had cash and cash equivalents of $4.4 million and total debt of $120.6 million[9]. - Cash and cash equivalents decreased to $4,399 thousand from $7,913 thousand in the previous quarter, indicating a need for liquidity management[26]. Operating Expenses - The company achieved its first profitable quarter as a public company, with operating expenses of $(34.3) million, influenced by a $55.0 million release of a loss contingency accrual[1]. - The company reported a goodwill impairment of $3,394 thousand during the quarter, compared to $1,096,305 thousand in the same period last year[25]. - Operating expenses, excluding goodwill impairment and arbitration award adjustments, were $17,287 million for the three months ended June 30, 2024[31]. - The release of loss contingency related to arbitration awards contributed $54,973 million to operating expenses[31]. Investment and Portfolio - Investments at fair value increased to $331.4 million as of June 30, 2024, up from $329.1 million at the end of the previous fiscal year[12]. - The loan portfolio was supported by a diversified alternative asset collateral portfolio, with a total gross loan balance of $566 million and a net loan balance of $256 million after an allowance for credit losses of $311 million[4]. - NAV of alternative assets held in custody was $380.7 million, slightly down from $381.2 million as of March 31, 2024[7]. - The GP Preferred Liquidity Provider Program expanded to 20 funds with $1.5 billion in committed capital, compared to 7 funds with $300 million in committed capital at the end of 2022[1]. Revenue Segments - Ben Liquidity recognized $10.8 million of interest income for Q1 fiscal 2025, a 1.9% increase from the previous quarter[5]. - Ben Liquidity segment revenue increased by 1.9% to $10,849,000 from $10,644,000 in the previous quarter[14]. - Ben Custody segment revenue decreased by 3.4% to $5,382,000 compared to $5,573,000 in the prior quarter[14]. - Adjusted segment operating income for Ben Liquidity improved to a loss of $509,000 from a loss of $29,408,000 in the previous quarter, marking a 98.3% improvement[18]. - Corporate & Other segment reported an operating income of $44,091,000, a significant recovery from a loss of $115,637,000 in the previous quarter[20]. Legal and Regulatory Matters - The company announced a court ruling vacating a previously disclosed arbitration award of approximately $55.3 million against it[8]. - The company is actively involved in addressing legal and professional fees related to GWG Holdings bankruptcy, which may affect future financial results[30]. - Future outlook includes a focus on managing credit losses related to receivables from related parties and ongoing legal matters[32]. Innovation and Services - The company is focused on innovating the alternative asset investment market and expanding its Preferred Liquidity Provider Program[24]. - Beneficient's AltQuote™ tool provides customers with potential exit options within minutes, enhancing service efficiency[23].