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]
Ben(BENF) - 2025 Q1 - Earnings Call Transcript