Financial Performance - For the three months ended March 31, 2024, the company generated revenues of $49,790, a significant increase from $0 in the same period of 2023[137]. - The company incurred a net loss of $6,884,409 for the three months ended March 31, 2024, compared to a net loss of $2,637,956 for the same period in 2023, reflecting an increase in losses of $4,246,453[136]. - The company incurred a net loss of approximately $6.9 million for the three months ended March 31, 2024, with cash used in operating activities amounting to approximately $4.5 million[151]. - The company expects to continue incurring losses and negative cash flows due to increased general and administrative expenses and ongoing product research and development[144]. Expenses - General and administrative expenses for the three months ended March 31, 2024, were approximately $6.5 million, an increase of approximately $3.9 million compared to the same period in 2023[138]. - Research and development expenses for the three months ended March 31, 2024, were approximately $0.3 million, an increase of approximately $0.2 million compared to the same period in 2023[140]. - The company expects to continue incurring significant operating costs, including research and development expenses, as it introduces new products and expands operations[123]. Capital and Financing - Cash provided by financing activities during the three months ended March 31, 2024 was approximately $6.3 million, primarily from the sale of Common Stock[154]. - The company anticipates substantial additional capital will be required to develop products and fund operations for the foreseeable future[123]. - The company anticipates needing to raise additional capital to fund operations and achieve sustainable revenues[144]. - The company entered into subscription agreements to purchase an aggregate of 25,000 shares of common stock at a price of $10.00 per share in connection with the business combination[120]. Business Developments - The business combination with DHC was completed on March 14, 2024, resulting in the issuance of 25,641,321 shares of common stock to Prior BEN stockholders[117]. - The company has significant intellectual property in the form of a patent portfolio, which is expected to be a cornerstone of its AI solutions targeting industries such as automotive and healthcare[116]. - The company has not yet sold any products beyond their pilot stage, indicating a focus on product development and market entry strategies[124]. Cash and Assets - As of March 31, 2024, the company had cash of approximately $3.3 million and an accumulated deficit of approximately $20.2 million[144]. - Cash used in investing activities during the three months ended March 31, 2024 was approximately $0.2 million, primarily for capitalized internal-use software costs[153]. - The company had four outstanding bank loans totaling approximately $0.9 million, with interest rates ranging from 4.667% to 6.69%[146]. - The company entered into a promissory note agreement for $0.6 million with a related party, maturing on June 25, 2025[147]. - The company received $5.5 million from AFG in March 2024, but did not receive net cash from the Merger due to transaction expenses[145]. Research and Development - The company has ongoing research and development sponsorship agreements with Korea University, with total payments expected to be approximately $0.4 million for 2024[148].
DHC Acquisition (DHCA) - 2024 Q1 - Quarterly Report