Financial Data and Key Metrics Changes - The company reported GAAP revenues of $18.7 million for the current quarter, with a year-to-date revenue of $3.3 million for fiscal 2026 [13] - Adjusted revenues were -$25.4 million for the current quarter and -$40.8 million year-to-date, indicating significant losses [14] - Operating expenses were approximately $15 million, a slight increase from $14 million in the prior year, but adjusted operating expenses declined by 6.5% year-over-year and 18% year-to-date [16][7] Business Line Data and Key Metrics Changes - Ben Liquidity recognized $8.2 million of interest income during the third quarter, a decrease of 3.6% sequentially, and year-to-date interest income was $25.5 million, down 25.2% compared to the prior year [17] - Ben Custody reported revenues of $2.9 million for the fiscal third quarter, down from $3.1 million in the previous quarter, with year-to-date revenues of $10.2 million, a decline of 36.9% compared to the prior year [20][21] Market Data and Key Metrics Changes - The company has a diversified alternative asset collateral portfolio supporting its loan portfolio, with approximately 150 private market funds and 430 investments across various asset classes and geographies [13] - The NAV of alternative assets held in custody decreased to $230.2 million as of December 31, 2025, from $338.2 million as of March 31, 2025 [19] Company Strategy and Development Direction - The company is focused on stabilizing and developing its liquidity platform, particularly targeting family offices and advisors for future growth [26] - Management aims to simplify and streamline approaches to providing liquidity solutions and broaden deal flow opportunities [11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the market opportunity and emphasized the importance of executing on transactions to validate the business model [39] - The company is preparing for the former CEO's criminal trial scheduled for April 2026 and is considering various options regarding the validity of approximately $120 million in debt related to the former CEO [27][28] Other Important Information - The company has regained full compliance with Nasdaq listing requirements, which was a significant achievement given the recent challenges [9] - A final court-approved settlement related to the GWG Holdings litigation has been reached, allowing the company to focus on growth [10] Q&A Session Summary Question: Update on the core liquidity platform and marketing strategies - Management indicated a focus on stabilizing the platform and targeting family offices and advisors for future marketing efforts [26] Question: Insights on the litigation and its impact on the balance sheet - Management refrained from detailed comments but noted the upcoming trial and the potential to challenge the validity of the debt related to the former CEO [27][28] Question: Clarification on operating loss in Ben Liquidity - The operating loss was attributed to asset sales and updated NAV values, indicating a mix of factors affecting performance [31] Question: Future operating expenses and cost-cutting potential - Management believes there is still room for further cost reductions in operating expenses within Ben Liquidity [34] Question: Pipeline for liquidity transactions - Management confirmed ongoing discussions and inquiries, indicating positive momentum for future transactions [36] Question: Overview of the balance sheet and debt composition - The total debt of $100.3 million primarily relates to an entity associated with the former CEO, with only a small portion being unrelated [37] Question: Near-term priorities for the company - Management highlighted the importance of executing on transactions to demonstrate the business model's validity and capitalize on market opportunities [39]