Ben(US:BENF)2025-11-18 14:02Financial Data and Key Metrics Changes - The company reported investments with a fair value of $244 million, serving as collateral for a net loan portfolio of $223 million [15] - Revenues were a negative $2.8 million for the second quarter and $15.4 million year-to-date, compared to positive revenues of $8.6 million and $18.6 million in the prior year [15] - Operating expenses decreased to $15.1 million in the second quarter of fiscal 2026 from $22.3 million in the same period for fiscal 2025 [16] - Reported GAAP net loss attributable to common shareholders was $3.6 million for the current quarter and $68.7 million year-to-date [17] Business Line Data and Key Metrics Changes - Ben Liquidity recognized $8.5 million of interest income, a decrease of 3.8% from the previous quarter, and $17.3 million for the six months ended September 30, 2025, down 24.1% compared to the prior year [18][19] - Ben Custody's net asset balance of alternative assets was $271.4 million as of September 30, 2025, down from $338.2 million as of March 31, 2025 [20] - Revenues for Ben Custody were $3.1 million for the fiscal second quarter, down from $4.2 million in the previous quarter [21] Market Data and Key Metrics Changes - The market for early liquidity services is large and growing, with global transaction volumes reaching $103 billion, a 51% increase from the previous year [28] Company Strategy and Development Direction - The company is focused on stabilizing operations and executing its mission to provide liquidity and capital to customers in the alternative asset market [5][10] - Plans include cutting costs, reducing third-party debt from $27 million in January to under $4 million, and exploring adjacent markets [10][27] - The company aims to simplify its operating model to enhance transparency and reduce internal costs [43] Management's Comments on Operating Environment and Future Outlook - Management believes the foundations of the business and market opportunities remain strong despite recent challenges [5] - The focus is on optimizing the business model and stabilizing operations before moving forward with growth initiatives [36] - Management is committed to maintaining relationships with Kansas and fulfilling obligations to its communities [10][27] Other Important Information - The company has regained compliance with NASDAQ listing rules and plans to hold a special meeting to seek shareholder approval for a reverse stock split [8][9] - A settlement related to lawsuits against the company has been approved, requiring no out-of-pocket payments [7] Q&A Session Summary Question: How might the strategic vision differ going forward, particularly regarding origination volumes? - Management will focus on high net worth transactions in the $5 million-$25 million range, moving away from larger foundational transactions [32] Question: Are prospective customers taking a pause in allocation decisions due to market volatility? - The need for liquidity remains, and the market wants to see stabilization before moving forward [34] Question: What is the breakdown of the $104 million debt on the balance sheet? - About $8 million is related to the Hicks credit facility, while the rest is primarily from loans associated with Brad Heppner-related entities [41][42] Question: What does exploring adjacent markets mean for the company? - Simplifying the operating model aims to reduce costs and improve transparency, while also externalizing technology developed for internal purposes [43][44] Question: Is the pipeline still focused on the PCP channel? - The deal flow is currently leaning towards the PCP channel, but the company is reopening the process as it stabilizes [47]