Core Insights - Brand Engagement Network Inc. (BEN) has appointed Janine Grasso as Interim Chief Executive Officer, succeeding Paul Chang, who will remain on the Board of Directors [1][4] - Grasso has over 20 years of experience in technology-driven organizations, including leadership roles at DocuSign, Verizon, and IBM, which positions her well to guide BEN's growth [2][3] - BEN has reduced its total liabilities by $4.25 million in the second quarter, reflecting a focus on operational discipline and long-term value creation [4] - The company is advancing its acquisition of Cataneo, expected to enhance its platform capabilities and international presence, with completion anticipated later this summer [5] Company Overview - BEN specializes in AI-powered customer engagement solutions, utilizing its proprietary Engagement Language Model (ELM™) and Retrieval-Augmented Generation (RAG) architecture for personalized interactions [7] - The company serves various industries, including life sciences, automotive, and retail, and is committed to compliance with GDPR, CCPA, HIPAA, and SOC 2 Type 1 standards [7] - BEN holds 21 patents and has 28 pending, showcasing its dedication to advancing AI-driven consumer engagement [7]

Financial Data and Key Metrics Changes - The company reduced general and administrative expenses by nearly 50% compared to Q1 of the previous year, reflecting stronger operational discipline [13] - A $3,500,000 line of credit was secured from Core Capital Partners, providing additional financial flexibility [14] Business Line Data and Key Metrics Changes - The iSky platform was officially launched, generating strong early traction across multiple industries, indicating a positive market response [7] - The partnership with Swiss Life Global Solutions aims to deliver secure generative AI solutions across its global network, highlighting the platform's versatility [9] Market Data and Key Metrics Changes - The automotive sector is seeing increased momentum, with strong relationships established with OEMs and dealership networks, suggesting potential for future production contracts [19][20] - The company is also expanding into healthcare and life sciences, with expectations for pilots to convert into production deployments [19] Company Strategy and Development Direction - The company is focused on executing its strategy of delivering practical, scalable AI solutions and expanding into new verticals [12] - The acquisition of Catanelle is expected to transform the ad tech industry, allowing brands to manage their entire customer journey [11][14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the traction being seen and the potential for continued growth, emphasizing the importance of partnerships and product capabilities [12] - The company is energized by the market validation and is looking forward to adding large household names to its customer list [12] Other Important Information - The company is preparing to integrate the planned acquisition of Catanelle, which is expected to enhance its product capabilities [15] Q&A Session Summary Question: What contributed to revenue in the quarter? - All pilots are paid, contributing to revenue, although not significantly yet [18] Question: Visibility into collaborations leading to production contracts? - Anticipation of conversions in healthcare and life sciences, with strong momentum in the automotive space [19] Question: Clarification on the automotive rollout status? - Finalizing rollout with high-value use cases tested and demoed to dealerships, with ongoing integration efforts [22]

Financial Data and Key Metrics Changes - The company reduced general and administrative expenses by nearly 50% compared to Q1 of the previous year, reflecting stronger operational discipline [13] - A $3,500,000 line of credit was secured from Core Capital Partners, providing additional financial flexibility [14] Business Line Data and Key Metrics Changes - The iSky platform was officially launched, generating strong early traction across multiple industries, indicating a positive market response [7] - The partnership with Swiss Life Global Solutions aims to deliver secure generative AI solutions across its global network, highlighting the platform's versatility [8] Market Data and Key Metrics Changes - The automotive sector is showing promise, with strong relationships established with OEMs and dealership networks, indicating potential for rapid pilot-to-production conversions [20][21] - The company is also expanding into healthcare and life sciences, with expectations for pilots to convert into production deployments [20] Company Strategy and Development Direction - The company is focused on executing its strategy of delivering practical, scalable AI solutions and expanding into new verticals [12] - The acquisition of Catanelle is expected to transform the ad tech industry, allowing brands to manage their entire customer journey [11][14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the traction being seen and the positioning of the company for continued growth [12] - The CEO emphasized excitement about upcoming opportunities and the company's progress in the market [28] Other Important Information - The company is preparing to integrate the planned acquisition of Catanelle, which is expected to enhance product capabilities and financial foundation [15] Q&A Session Summary Question: What contributed to revenue in the quarter? - All pilots are paid, contributing to revenue, although not significantly yet [18][19] Question: Visibility into collaborations leading to production contracts? - Anticipation of conversions to production deployments in healthcare and life sciences, with optimism in the automotive space [20] Question: Clarification on automotive rollout status? - Finalizing rollout with high-value use cases tested and demoed to dealerships, with pilot deployments in progress [23][24]

Loan Terms - The maximum principal amount of the Line of Credit is $3,500,000.00[5] - Interest on outstanding Advances is set at a rate of 10% per annum, payable on the Maturity Date[11] - A $10,000.00 Structuring Fee is also payable on the Maturity Date[11] - The Maturity Date is set for six months from the Effective Date, with the possibility of a six-month extension upon mutual consent[7][15] Borrower Obligations - All Advances are contingent upon unanimous approval by Borrower's Special Line of Credit Committee[12] - Borrower may prepay the Principal Indebtedness without prior written consent or payment of any premium or penalty[14] - Borrower must notify Lender of any events that may result in a Material Adverse Event[26] - Borrower is prohibited from liquidating, merging, or selling substantially all assets without Lender's prior written consent[28] - Borrower is responsible for all reasonable fees and costs incurred by Lender in the preparation and collection of this Agreement[37] Default and Enforcement - In the event of a Default, Lender may declare the outstanding Principal Indebtedness immediately due and payable[34] - The obligations under the Agreement are continuing and will not terminate until all amounts are fully paid[42] - In case of default, the defaulting party is responsible for all costs, including attorney fees, incurred by the non-defaulting party[51] Agreement Provisions - The Agreement includes provisions for waivers, stating that failure to enforce strict compliance does not waive any rights of either party[41] - Neither party may assign their rights or obligations without prior written consent from the other party[43] - Notices must be in writing and delivered through specified methods to be effective[44] - If any provision of the Agreement is deemed unenforceable, it does not affect the validity of other provisions[45] - The Agreement does not create a partnership or joint venture between the parties[46] - The Agreement is governed by the laws of the state of Delaware[48] - The Agreement may be executed in counterparts, each considered an original[50] - The Agreement allows for digital signatures to be legally binding[53]

Core Viewpoint - Brand Engagement Network Inc. (BEN) has secured a $3.5 million line of credit to enhance liquidity and support its growth strategy [1][2][3] Financial Agreement - The line of credit allows BEN to draw up to $3.5 million until December 5, 2025, with a fixed interest rate of 10.0% per annum [2] - No amounts have been drawn under the facility as of the announcement date [2] Strategic Implications - The CFO and COO of BEN, Walid Khiari, emphasized that this credit facility will strengthen liquidity and aid in scaling operations and executing long-term growth strategies [3] - The agreement includes standard terms and conditions, including events of default related to nonpayment and insolvency [3] Company Overview - Brand Engagement Network Inc. specializes in AI-driven customer engagement solutions, utilizing proprietary technologies like Engagement Language Model (ELM™) and Retrieval-Augmented Generation (RAG) architecture [4] - The company serves various industries, including life sciences, automotive, and retail, and is committed to compliance with regulations such as GDPR and HIPAA [4] - BEN holds 21 patents and has 28 pending, showcasing its dedication to advancing AI-driven consumer engagement [4]

Core Viewpoint - Brand Engagement Network Inc. (BEN) reported a strong start to 2025 with the launch of its iSKYE platform and strategic partnerships, highlighting the increasing demand for secure and scalable AI solutions [2][3]. Group 1: Business Highlights - The iSKYE platform was officially launched, providing businesses with a customizable and scalable AI solution that integrates seamlessly with existing processes, featuring customizable 3D avatars and enterprise-grade security [7]. - BEN formed a global AI insurance partnership with Swiss Life Global Solutions to enhance digital health and financial wellbeing services, aiming to streamline insurance sales and improve member services [7]. - The company expanded its partnership with Vybroo and Grupo Siete to deploy AI-powered brand ambassadors across Latin America and Southern Europe, unlocking new revenue opportunities in high-growth markets [7]. - BEN is advocating for responsible AI privacy standards, supporting proposed legislation to prevent the offshore storage of sensitive user data, reinforcing its commitment to secure AI systems [7]. Group 2: Financial Performance and Future Outlook - The company will host a conference call to discuss its financial performance and strategic outlook, led by CEO Paul Chang and CFO Walid Khiari [4].

Acquisition and Financing - The Company entered into a Share Purchase and Transfer Agreement to acquire Cataneo GmbH for an aggregate purchase price of $19.5 million, consisting of $9.0 million in cash and 4,200,000 shares of Common Stock valued at $2.50 per share[133]. - The transaction is expected to close in the first half of 2025, subject to various conditions including the making of a Cash Election and obtaining third-party approvals[135]. - The Company plans to finance the acquisition through third-party financing, which may include debt or equity[136]. - The cash purchase price for the acquisition of Cataneo is $9.0 million, with potential additional cash payments for equity consideration[194]. Financial Performance - For the three months ended March 31, 2025, the company reported revenues of $10,000, a decrease of $39,790 compared to $49,790 for the same period in 2024[163]. - General and administrative expenses for the three months ended March 31, 2025 were approximately $3.2 million, a decrease of approximately $3.3 million compared to the prior period, primarily due to transaction costs incurred in connection with the Business Combination[165]. - Research and development expenses for the three months ended March 31, 2025 were approximately $11,000, a decrease of approximately $0.2 million compared to the same period in 2024[167]. - The company had an accumulated deficit of approximately $50.6 million as of March 31, 2025, and expects losses and negative cash flows to continue for the foreseeable future[169]. - The net loss for Q1 2025 was approximately $3.6 million, compared to a net loss of approximately $6.9 million in Q1 2024[196][197]. Cash Flow and Liquidity - As of March 31, 2025, the company's principal source of liquidity was cash of approximately $0.2 million, indicating a need for additional capital to fund operations[169]. - Cash used in operating activities for Q1 2025 was approximately $2.6 million, a decrease from $4.5 million in Q1 2024[196][197]. - Cash provided by financing activities in Q1 2025 was approximately $2.8 million, down from $6.3 million in Q1 2024[199][200]. - The company reported a net cash increase of approximately $87,000 in Q1 2025, compared to $1.6 million in Q1 2024[195]. Debt and Defaults - The Company issued a non-convertible unsecured promissory note for approximately $1.7 million, which matured on March 11, 2025, and is currently in default with an outstanding balance of $416,667[141]. - The Company issued a convertible promissory note for $1.9 million, with an outstanding balance of $760,000 as of March 31, 2025, and is also in default on this note[142]. - The company is in default on the Cohen Convertible Note with an unpaid balance of $0.8 million as of March 31, 2025[171]. - The Company experienced a default on the Yorkville Promissory Note with an outstanding balance of $0.4 million as of March 31, 2025[180]. Intellectual Property and Development - The Company has significant intellectual property in the form of a patent portfolio targeting industries such as automotive, healthcare, and financial services[132]. - The Company is focused on developing AI assistants that enhance customer experiences and operational efficiency in the automotive and healthcare markets[131]. - The Company entered into a research and development sponsorship agreement with Korea University for a total consideration of approximately $0.4 million[192]. Share Issuance and Warrants - During the quarter ending March 31, 2025, Purchasers exercised 787,132 Committed Warrants for aggregate gross proceeds of $1.5 million[145]. - The Company issued 330,000 shares of Common Stock for gross proceeds of $750,000 during the quarter ending March 31, 2025[173]. - During the quarter ending March 31, 2025, the Company issued 1,500,000 shares of Common Stock to Yorkville under the SEPA[179]. - As of March 31, 2025, the Company has 1,901,281 May One-Year Warrants and 1,251,587 May Five-Year Warrants outstanding[173]. Operating Costs and Future Outlook - The company expects to incur significant operating costs that will impact future profitability, including research and development expenses and capital expenditures for expansion[152]. - The change in fair value of warrant liabilities for the three months ended March 31, 2025 was approximately $0.6 million, reflecting a non-cash charge for changes in the fair value of the warrant liabilities[168]. - There were no material changes to critical accounting policies from the previous year[202]. - The company has no off-balance sheet financing arrangements as of March 31, 2025[204]. - The company is classified as an "emerging growth company" under the JOBS Act, allowing it to delay adopting new accounting standards[205].

Core Insights - Mental health is a pressing issue for students in South Africa, particularly in underserved communities with limited access to care [1] - The University of KwaZulu-Natal (UKZN), Valio Technologies, and Brand Engagement Network Inc. (BEN) are collaborating to launch an AI-powered mental health program that provides private, 24/7 support [1][2] - The initiative aims to improve access to mental health support and will initially focus on UKZN students, with plans for broader regional expansion [2][5] Company Insights - Brand Engagement Network (BEN) utilizes AI technology to enhance customer engagement, offering personalized mental health support through its iSKYE platform [2][6] - BEN's AI platform is designed to provide ongoing emotional support and curated mental health resources, particularly for individuals lacking access to traditional therapy [2][3] - Valio Technologies specializes in disruptive technologies, including AI solutions tailored for developing markets, with a focus on sectors like healthcare [7] Industry Insights - The initiative reflects a growing trend of leveraging AI to address mental health challenges, particularly in remote or under-resourced communities [3][4] - The collaboration between educational institutions and technology companies signifies a shift towards innovative solutions for mental wellness at scale [4][5] - Insights gained from the program's rollout will inform future expansions, ensuring responsiveness to the needs of students and communities [5]

Core Insights - Brand Engagement Network Inc. (BEN) has entered the hospitality sector by partnering with Seven Visions Resort & Places, The Dvin, to deploy its AI-powered Concierge AI Agent, aiming to redefine luxury guest experiences [2][5][7] Company Overview - BEN is an innovator in AI-powered customer engagement, focusing on delivering secure, intelligent, and scalable solutions across various industries, including life sciences, automotive, and retail [11] - The company utilizes its proprietary Enterprise Language Model (ELM™) and Retrieval-Augmented Generation (RAG™) architecture to enable personalized interactions [11] Industry Impact - The collaboration with The Dvin marks BEN's strategic expansion into the hospitality industry, which is expected to set a new standard for AI-enhanced luxury experiences [2][5] - The initiative will begin with a two-phase pilot, starting with a 24/7 Concierge AI Agent, followed by a Reservation AI Agent, both powered by BEN's modular iSKYE platform [4] Strategic Significance - The Dvin owner, Artak Tovmasyan, emphasized the importance of trust and speed in adopting BEN's technology, highlighting the potential to redefine luxury service [7] - The partnership aims to demonstrate the versatility of BEN's AI platform in a high-service environment, showcasing its capability to enhance customer experience [7]

Core Insights - Brand Engagement Network Inc. (BEN) has launched its iSKYE platform, which allows businesses to deploy and scale customized AI solutions with enterprise-grade security and flexibility [1][2] - The iSKYE platform aims to enhance AI integration and scalability, providing businesses with personalized engagement solutions that are more relevant than generic responses from large language models (LLMs) [2][3] Company Overview - BEN is a global innovator in AI-driven customer engagement solutions, focusing on delivering safe, intelligent, and scalable solutions across various industries, including life sciences, automotive, and retail [5] - The company utilizes its proprietary Engagement Language Model (ELM™) and Retrieval-Augmented Generation (RAG) architecture to facilitate highly personalized interactions [5] iSKYE Platform Features - iSKYE combines industry-specific training and a robust full-stack platform to enable businesses to regain control over their AI projects [2][3] - The platform features a small footprint architecture for cost-effective deployment, allowing it to run on CPUs and reduce energy consumption while maintaining performance [6] - iSKYE supports seamless integration with existing workflows and legacy systems, automating routine tasks to improve operational efficiency [6] - Businesses can customize AI agents using a built-in graphics studio, tailoring features to align with brand goals [6] - The platform ensures enterprise-grade security and compliance with regulations such as HIPAA and SOC2 [6] Future Plans - BEN plans to expand the iSKYE platform with additional industry-specific solutions, white-label offerings, OEM partnerships, and plug-in modules to enhance its functionality [4]