Ben(US:BENF)2025-11-14 22:18Financial Performance - Net income loss for the three months ended September 30, 2025, was $17,907 thousand, compared to a net income of $9,747 thousand for the same period in 2024[20]. - Total revenues for the six months ended September 30, 2025, were $(15,386) thousand, a significant decrease from $18,607 thousand in the same period of 2024[20]. - The company reported a net loss attributable to common shareholders of $(3,629) thousand for the three months ended September 30, 2025, compared to a net income of $12,914 thousand in the same period of 2024[20]. - For the three months ended September 30, 2025, the net income (loss) was $(15,970) thousand, compared to a net income of $12,914 thousand for the same period in 2024, indicating a significant decline[22]. - The company reported a total comprehensive loss of $(3,537) thousand for the three months ended September 30, 2025, compared to a comprehensive income of $12,940 thousand in the same period of 2024[20]. - For the six months ended September 30, 2025, the net loss was $113.914 million, compared to a net loss of $68.705 million for the same period in 2024[24]. - The net loss attributable to common shareholders for Q3 2025 was $3.6 million, compared to a net income of $12.9 million in Q3 2024[82]. - For the six months ended September 30, 2025, the net loss attributable to common shareholders was $68.7 million, a significant decline from a net income of $60.6 million in the same period of 2024[82]. Assets and Liabilities - Total assets decreased from $354,875 thousand as of March 31, 2025, to $316,233 thousand as of September 30, 2025, representing a decline of approximately 10.8%[19]. - Total liabilities increased from $299,274 thousand to $368,534 thousand, marking an increase of about 23.2%[19]. - The total equity as of September 30, 2025, was $90,526 thousand, a decrease from $251,052 thousand reported on June 30, 2024[22]. - The accumulated deficit increased from $(2,008,052) thousand to $(2,076,757) thousand, reflecting a rise of about 3.4%[19]. - The accumulated deficit increased to $(2,076,757) thousand as of September 30, 2025, compared to $(1,998,633) thousand as of September 30, 2024[22]. - The total equity deficit increased from $2.008 billion as of March 31, 2025, to $2.077 billion by September 30, 2025[24]. Cash Flow and Investments - Cash and cash equivalents increased from $1,346 thousand as of March 31, 2025, to $4,902 thousand as of September 30, 2025, indicating a growth of approximately 263%[19]. - Cash flows from operating activities resulted in a net cash used of $(25,364) thousand for the six months ended September 30, 2024, compared to $(19,259) thousand for the same period in 2023[29]. - The company reported net cash provided by investing activities of $42,825 thousand for the six months ended September 30, 2024, compared to $11,164 thousand for the same period in 2023, showing an increase in investment activity[29]. - The cash and cash equivalents at the end of the period were $4,902 thousand as of September 30, 2024, compared to $4,796 thousand at the end of the same period in 2023[29]. Shareholder Equity and Stock - Class A basic net income (loss) per share was $(0.37) for the three months ended September 30, 2025, compared to $2.98 for the same period in 2024[20]. - The company issued Class A common stock to settle liabilities amounting to $26 thousand during the three months ended September 30, 2025[22]. - The total shares of Class A common stock decreased from 4,006 thousand on June 30, 2024, to 4,580 thousand on September 30, 2024[22]. - The company issued 1,179,946 shares of Series B Resettable Convertible Preferred Stock during the six months ended September 30, 2025[198]. - The maximum number of Class A common shares that can be issued upon conversion of the Series B preferred stock is 51,531,744 shares[205]. Debt and Financing - The company has substantial doubt about its ability to continue as a going concern, with financial statements prepared on a going concern basis[55]. - The company entered into a three-year $25 million term loan with HH-BDH LLC, which was fully drawn upon closing to fund product development and working capital[51]. - The Company has been in default on certain financial covenants, including delayed interest and principal payments, but is actively negotiating waivers with the lender[164]. - The Company has accrued interest of $24.0 million as of September 30, 2025, and $18.6 million as of March 31, 2025, included in other liabilities[144]. - Events of default were declared on April 14, 2025, due to the Company's failure to pay outstanding obligations, resulting in immediate repayment of all amounts due[148][150]. Regulatory and Strategic Developments - The company completed a de-SPAC merger transaction with Avalon Acquisition, Inc. on June 7, 2023, and began trading on the Nasdaq Global Market on June 8, 2023[34]. - The company has received regulatory approval for its subsidiary to operate as a registered transfer agent and intends to provide various services for customers[43]. - The company plans to expand its product offerings through Ben Insurance Services and Ben Markets, including customized insurance products and broker-dealer services[42]. - The company intends to resubmit its application for an insurance charter in the future after previously withdrawing it[42]. Accounting and Reporting - The consolidated financial statements include the accounts of the company and its subsidiaries, prepared in accordance with U.S. GAAP[65]. - The company is assessing the impact of new accounting standards, including ASU 2024-03 and ASU 2023-09, on its financial statements and disclosures[72][73]. - The company has made significant estimates related to fair value determinations and credit loss allowances that could impact reported results[70]. Investment Performance - As of September 30, 2025, the total investments at fair value held by the Customer ExAlt Trusts amounted to $243.978 million, a decrease of $47.8 million from $291.371 million as of March 31, 2025[102]. - The fair value of public equity securities was $4.376 million as of September 30, 2025, compared to $4.065 million as of March 31, 2025[107]. - The investments in alternative assets decreased from $259.113 million to $211.324 million, primarily due to the disposition of certain limited partnership interests and downward adjustments of NAV[102]. - The company recognized nil credit-related losses on its investment in debt securities available-for-sale during the three months ended September 30, 2025[111].