Beneficient Reports $10.2 Million Net Loss for December 2024 Quarter, Down from $924.8 Million in 2023

Beneficient, a Nevada corporation and technology-enabled financial services holding company, reported a net loss of $10.2 million for the quarter ended December 31, 2024, compared to a net loss of $924.8 million for the same period in 2023. The company's total assets were $400.0 million as of December 31, 2024, a slight increase from $368.5 million on March 31, 2024. This increase is primarily attributable to a rise in investments held by Customer ExAlt Trusts, partially offset by an increase in liabilities.

Significant changes compared to the previous fiscal period include a decrease in investment income, net, from $7.4 million to $4.7 million, and a decrease in loss on financial instruments, net, from $18.0 million to $523,000. Operating expenses decreased from $905.7 million to $13.9 million, primarily due to lower employee compensation and benefits and other expenses. The decrease in operating expenses is partially offset by an increase in interest expense. The company also reported a non-cash goodwill impairment charge of $3.7 million for the nine months ended December 31, 2024, compared to $2.3 billion for the same period in 2023.

During the reporting period, Beneficient underwent a reverse stock split at a ratio of 80:1, effective April 18, 2024. The company also engaged in several financing activities, including issuing convertible debentures and warrants to Yorkville, and issuing shares of Class A common stock to settle liabilities and in connection with recent financings. The company also entered into a stock purchase agreement to acquire Mercantile Bank International Corp., subject to regulatory approvals.

Key operational developments included the continued operation of its Ben Liquidity and Ben Custody business segments, providing liquidity solutions and trust services, respectively. The company also launched Ben Markets, providing broker-dealer and transfer agency services. Beneficient noted that as of December 31, 2024, the Customer ExAlt Trusts held interests in 222 professionally managed alternative asset investment funds, comprising 749 underlying investments. The company also highlighted its ongoing legal proceedings and the receipt of a Nasdaq continued listing notice due to its stock price being below the minimum required for continued listing.

Beneficient's outlook remains uncertain, with the company stating that its current liquidity, profitability, and business raise substantial doubt regarding its ability to continue as a going concern. The company plans to seek additional funding through debt or equity issuances, including utilizing its Standby Equity Purchase Agreement with Yorkville. The company also noted several ongoing legal proceedings and the potential for future goodwill impairment.