Beneficient [BENFW] Filings

10-Q 1 ben-20240930.htm 10-Q ben-20240930

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2024

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from _____ to _____

Commission File Number: 001-41715

Beneficient

(Exact name of registrant as specified in its charter)


Nevada						72-1573705
(State or other jurisdiction of incorporation or organization)						(I.R.S. Employer Identification No.)

325 North St. Paul Street, Suite 4850

Dallas, TX 75201

(Address of principal executive offices, including zip code)

(214) 445-4700

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol(s)

Name of each exchange

on which registered

Class A common stock, par value $0.001 per share

BENF

Nasdaq Stock Market LLC

Warrants, each whole warrant exercisable for one share of Class A common stock, par value $0.001 per share, and one share of Series A convertible preferred stock, par value $0.001 per share

BENFW

Nasdaq Stock Market LLC

Securities registered pursuant to section 12(g) of the Act: None.

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. ☒ Yes ☐ No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). ☒ Yes ☐ No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer

☐

Accelerated filer

☐

Non-accelerated filer

☒

Smaller reporting company

☒

Emerging growth company

☒

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). ☐ Yes ☒ No

As of November 8, 2024, Beneficient had 4,841,350 shares of Class A common stock outstanding and 239,256 shares of Class B common stock outstanding.

EXPLANATORY NOTE

The number of outstanding units, weighted average number of outstanding units, loss per common unit, equity-based compensation and other financial amounts previously expressed on the basis of common units have been retroactively restated on the basis of Common Stock (as defined below) to reflect the conversion of the BCG (as defined below) common units to Common Stock. This “Explanatory Note” details the series of transactions necessitating the retroactive restatement. For further information, see Note 4, De-SPAC Merger Transaction, to the consolidated financial statements included in Item 1 of Part I of this Quarterly Report on Form 10-Q for a discussion of the conversion of certain BCG equity instruments to Common Stock.

On June 6, 2023, the registrant converted from a Delaware limited partnership called The Beneficient Company Group, L.P. (“BCG”) to a Nevada corporation called “Beneficient” (the “Conversion”) in connection with the closing of its merger with Avalon Acquisition Inc. (such transaction, the “Business Combination”), a special purpose acquisition vehicle and a Delaware corporation. References to “BCG,” “Ben,” “we,” “us,” “our,” the “Company” and similar terms, prior to the effective time of the Conversion, refer to the registrant when it was a Delaware limited partnership and such references following the effective time of the Conversion, refer to the registrant in its current corporate form as a Nevada corporation called “Beneficient.”

On June 6, 2023, immediately prior to the Conversion, BCG was recapitalized (the “BCG Recapitalization”) as follows: (i) the limited partnership agreement of BCG was amended to create one new subclass of BCG common units, the Class B Common Units (the “BCG Class B Common Units”), and the existing common units were renamed the Class A Common Units (the “BCG Class A Common Units”); and (ii) certain holders of the Preferred Series A Subclass 1 Unit Accounts of Beneficient Company Holdings, L.P. (“BCH” and such units, the “BCH Preferred A.1 Unit Accounts”) entered into conversion and exchange agreements (the “BCG Conversion and Exchange Agreements”) with BCG and BCH, pursuant to which they converted certain BCH Preferred A.1 Unit Accounts to Class S Ordinary Units of BCH (“BCH Class S Ordinary Units”), which were then contributed to BCG in exchange for BCG Class A Common Units.

Prior to the Conversion, the Company’s outstanding equity interests consisted of common units, one series of preferred units, and noncontrolling interests. Pursuant to the Conversion, each BCG Class A Common Unit converted into 1.25 shares of Class A common stock, par value $0.001 per share (“Class A common stock”), each BCG Class B Common Unit converted into 1.25 shares of Class B common stock, par value $0.001 per share (“Class B common stock” and together with the Class A common stock, the “Common Stock”), and the capital account balance of the Preferred Series B Subclass 2 Unit Accounts of BCG (“BCG Preferred B.2 Unit Accounts”) converted into shares of Class A common stock at a rate based on a 20% discount to the $800.00 valuation of the Class A common stock (or $640.00). As a result, in the Conversion, we issued 1,076,462 shares of Class A common stock with respect to the BCG Class A Common Units, 239,256 shares of Class B common stock with respect to the BCG Class B Common Units and 1,175,632 shares of Class A common stock with respect to the BCG Preferred B.2 Unit Accounts.

In order to maintain its listing on The Nasdaq Stock Market, LLC (“Nasdaq”), the Company effected a reverse stock split of its Common Stock at a ratio of eighty (80) to one (1) and a simultaneous proportionate reduction in the authorized shares of each class of Common Stock as required by Nevada Revised Statues (“NRS”) Section 78.207 (the “Reverse Stock Split”). The Company’s Class A common stock commenced trading on a post-reverse stock split basis at market open on April 18, 2024. Proportional adjustments were made to the number of shares of Common Stock issuable upon exercise or conversion of the Company’s equity award, warrants, and other equity instruments convertible into common stock, as well as the applicable exercise price. All share and per share amounts of our Common Stock presented in this Quarterly Report on Form 10-Q have been retroactively adjusted to reflect the Reverse Stock Split.

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

This Quarterly Report on Form 10-Q includes forward-looking statements as defined under U.S. federal securities laws. Forward-looking statements include all statements that are not historical statements of fact and statements regarding, but not limited to, our expectations, hopes, beliefs, intentions, or strategies regarding the future. In addition, any statements that refer to projections, forecasts, or other characterizations of future events or circumstances, including any underlying assumptions, are forward-looking statements. The words “anticipate,” “believe,” “could,” “estimate,” “expect,” “intend,” “may,” “might,” “plan,” “possible,” “potential,” “predict,” “will,” “would,” and similar expressions may identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking. Forward-looking statements are predictions, projections and other statements about future events that are based on current expectations and assumptions and, as a result, are subject to significant risks and uncertainties. Forward-looking statements speak only as of the date they are made. Readers are cautioned not to put undue reliance on forward-looking statements, and we assume no obligation and do not intend to update or revise these forward-looking statements, whether as a result of new information, future events, or otherwise.

Summary of Risk Factors

The following is a summary of the principal risks that could adversely affect our business, financial condition, and results of operations:

•we do not have a significant operating history or an established customer base;

•our fair value estimates of illiquid assets may not accurately estimate prices obtained at the time we enter into any liquidity transaction, and we cannot provide assurance that the values of the alternative assets underlying the liquidity transactions that we report from time to time will be realized;

•our failure to meet the continued listing requirements of Nasdaq could result in our Class A common stock being delisted from Nasdaq;

•the resulting market price of our Class A common stock following the Reverse Stock Split may not attract new investors, and it is not certain that the Reverse Stock Split will result in a sustained proportionate increase in the market price of our Class A common stock;

•the transfer of GWG Holdings Inc.’s (“GWG Holdings” or “GWG”) assets to the GWG Wind Down Trust and the Litigation Trust (each as defined herein) pursuant to the Second Amended Plan (as defined herein) could create significant uncertainties and risks for our continued operations and materially and adversely impact our financial operating results;

•future resales of Class A common stock may cause the market price of Class A common stock to drop significantly;

•the market price for Class A common stock may be subject to substantial fluctuations, which may make it difficult for stockholders to sell shares at the volumes, prices, and times desired;

•the GWG Wind Down Trust historically owned a substantial percentage of the Company and held voting power with respect to those matters on which our stockholders have the right to vote (as last reported on Schedule 13D filed by the GWG Wind Down Trust on October 8, 2024, the GWG Wind Down Trust owns less than 8% of our Class A common stock);

•we may be adversely affected by negative publicity;

•we have been involved in a now-terminated SEC investigation and may be subject to other regulatory investigations and proceedings;

•a determination that we are an unregistered investment company would have serious adverse consequences;

•the Company is currently involved in legal proceedings and government investigations and may be a party to additional claims and litigation in the future;

•our liquidity, profitability and business may be adversely affected by concentrations of assets, which are collateralized by a portion of the cash flows from the exchanged alternative assets (the “Collateral”);

•we engage in related party transactions, which may result in conflicts of interest involving our senior management;

•Brad K. Heppner, our founder and CEO, may have financial interests that conflict with the interests of Beneficient and its stockholders;

•usage of our Class A common stock or securities convertible into Class A common stock as consideration for the Customer ExAlt Trusts’ (as defined herein) investments in alternative assets may create significant volatility in our investment income and the price of our Class A common stock;

•our current inability to raise sufficient capital, recurring losses from operations, negative cash flows from operations, and delays in executing our business plans raises substantial doubt regarding our ability to continue as a going concern. If we are unable to obtain sufficient additional funding, or do not have access to capital, we may be required to terminate or significantly curtail our operations;

•our liquidity, profitability and business may be adversely affected by an inability to access, or ability to access only on unfavorable terms, the capital markets, and we may never obtain the maximum anticipated proceeds contemplated under the current capital raising agreements such as the SEPA (as defined herein);

•the due diligence process that we undertake in connection with any liquidity transaction may or may not reveal all facts that may be relevant in connection with such liquidity transaction;

•poor performance of our Collateral would cause a decline in our revenue, income and cash flow and could adversely affect our ability to raise capital for future liquidity transactions;

•we historically had a substantial amount of goodwill and intangible assets, which we have been, and may in the future be, required to write down the value of our intangible assets and goodwill due to impairment;

•we are subject to repayment risk in connection with our liquidity transactions;

•transfer restrictions applicable to alternative assets may prevent us from being able to attract a sufficient number of Customers (as defined herein) to achieve our business goals;

•our operations, products and services may be negatively impacted by changes in economic and market conditions;

•shares of Class A common stock and Series A and Series B preferred stock issued by Beneficient are structurally subordinated to interests in BCH, a subsidiary of Beneficient;

•allocations of write downs in the value of our intangible assets and goodwill due to impairment will result in a decrease in the capital account balance of the Class A Units of BCH (the “BCH Class A Units”) indirectly held by the Company;

•we are or will become subject to comprehensive governmental regulation and supervision;

•we may incur fines, penalties and other negative consequences from regulatory violations;

•we may be impacted adversely by claims or litigation, including claims or litigation relating to our fiduciary responsibilities;

•if we are unable to protect our intellectual property rights, our business could be negatively affected;

•Beneficient’s board of directors (the “Board”) and management have significant control over Beneficient’s business;

•we may issue additional shares of authorized Common Stock or preferred stock without stockholder approval subject to the applicable rules of Nasdaq and Nevada law, which would dilute existing stockholder interests;

•the holders of Class B common stock have the right to elect a majority of the Board and the ability to vote with Class A common stock in director elections for the remaining directors, with each share of Class B common stock having 10 votes per share;

•the Company may engage in transactions that represent a conflict of interest, with the review of such transactions subject to the Nevada statutory business judgment rule; and

•other risks, uncertainties and factors set forth in the “Risk Factors” section in the Company’s Annual Report on Form 10-K filed with the U.S. Securities and Exchange Commission (“SEC”) on July 9, 2024 (“Annual Report”) and in the “Management’s Discussion and Analysis” and “Risk Factors” sections of this Quarterly Report on Form 10-Q, as well as those described from time to time in our future reports filed with the SEC.

The foregoing factors should not be construed as exhaustive and should be read together with the other cautionary statements included in the Annual Report or in this Quarterly Report on Form 10-Q. If one or more events related to these or other risks or uncertainties materialize, or if our underlying assumptions prove to be incorrect, actual results may differ materially from what we anticipate. Many of the important factors that will determine these results are beyond our ability to control or predict. Accordingly, you should not place undue reliance on any such forward-looking statements. Any forward-looking statement speaks only as of the date on which it is made, and, except as otherwise required by law, we do not undertake any obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise. New factors emerge from time to time, and it is not possible for us to predict which will arise. In addition, we cannot assess the impact of each factor on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements.

iii

BENEFICIENT

Form 10-Q

For the Quarter Ended September 30, 2024

Table of Contents


		Page No.
PART I. FINANCIAL INFORMATION
Item 1.	Financial Statements
	Consolidated Statements of Financial Condition	1
	Consolidated Statements of Comprehensive Income (Loss)	2
	Consolidated Statements of Changes in Equity (Deficit)	3
	Consolidated Statements of Cash Flows	7
	Notes to Consolidated Financial Statements	8
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	65
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	111
Item 4.	Controls and Procedures	111

PART II. OTHER INFORMATION
Item 1.	Legal Proceedings	112
Item 1A.	Risk Factors	112
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	117
Item 3.	Defaults Upon Senior Securities	118
Item 4.	Mine Safety Disclosures	118
Item 5.	Other Information	118
Item 6.	Exhibits	120

Signatures		122

Table of Contents

PART I. FINANCIAL INFORMATION

Item 1 — Financial Statements

BENEFICIENT

CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION


	September 30, 2024		March 31, 2024
(Dollars and shares in thousands)	(unaudited)
ASSETS
Cash and cash equivalents	$	4,482	$	7,913
Restricted cash	314		64
Investments, at fair value:
Investments held by Customer ExAlt Trusts (related party of $20 and $552)	334,987		329,113
Investments held by Ben (related party of nil and $6)	—		6
Other assets, net	15,991		14,699
Intangible assets	3,100		3,100
Goodwill	9,914		13,606
Total assets	$	368,788	$	368,501
LIABILITIES, TEMPORARY EQUITY, AND EQUITY (DEFICIT)
Accounts payable and accrued expenses (related party of $13,921 and $14,143)	$	112,494	$	157,157
Other liabilities (related party of $14,306 and $9,740)	19,123		31,727
Warrants liability	784		178

Convertible debt	1,936		—
Debt due to related parties	122,117		120,505
Total liabilities	256,454		309,567

Redeemable noncontrolling interests
Preferred Series A Subclass 0 Redeemable Unit Accounts, nonunitized	125,526		251,052

Total temporary equity	125,526		251,052
Shareholder’s equity (deficit):
Preferred stock, par value $0.001 per share, 250,000 shares authorized
Series A preferred stock, 0 and 0 shares issued and outstanding as of September 30, 2024 and March 31, 2024	—		—
Series B preferred stock, 227 and 227 shares issued and outstanding as of September 30, 2024 and March 31, 2024	—		—
Class A common stock, par value $0.001 per share, 18,750 shares authorized, 4,580 and 3,348 shares issued as of September 30, 2024 and March 31, 2024, respectively, and 4,573 and 3,339 shares outstanding as of September 30, 2024 and March 31, 2024, respectively	5		3
Class B convertible common stock, par value $0.001 per share, 250 shares authorized, 239 and 239 shares issued and outstanding as of September 30, 2024 and March 31, 2024	—		—
Additional paid-in capital	1,836,492		1,848,068
Accumulated deficit	(1,998,633)		(2,059,214)
Stock receivable	—		(20,038)
Treasury stock, at cost (9 shares as of September 30, 2024 and March 31, 2024)	(3,444)		(3,444)
Accumulated other comprehensive income	281		276
Noncontrolling interests	152,107		42,231
Total equity (deficit)	(13,192)		(192,118)
Total liabilities, temporary equity, and equity (deficit)	$	368,788	$	368,501

See accompanying notes to consolidated financial statements.

Table of Contents

BENEFICIENT

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(UNAUDITED)


	Three Months Ended September 30,				Six Months Ended September 30,
(Dollars in thousands, except per share amounts)	2024		2023		2024		2023
Revenues
Investment income (loss), net	$	8,541	$	(13)	$	19,569	$	487
Loss on financial instruments, net (related party of $(173), $(41,960), $(538) and $(45,526), respectively)	(179)		(42,775)		(1,362)		(46,236)
Interest and dividend income	12		114		24		230
Trust services and administration revenues (related party of $8, $8, $15 and $15, respectively)	187		(87)		376		15

Total revenues	8,561		(42,761)		18,607		(45,504)

Operating expenses
Employee compensation and benefits	7,135		15,398		10,985		51,221
Interest expense (related party of $3,135, $2,093, $6,189 and $2,825, respectively)	4,320		5,114		8,608		8,898
Professional services	7,257		6,657		12,801		17,030
Provision for credit losses	476		—		1,000		—
Loss on impairment of goodwill	298		306,684		3,692		1,402,989
Release of loss contingency related to arbitration award	—		—		(54,973)		—
Other expenses (related party of $694, $2,105, $1,388 and $4,221, respectively)	2,790		5,150		5,871		12,092
Total operating expenses	22,276		339,003		(12,016)		1,492,230
Operating income (loss)	(13,715)		(381,764)		30,623		(1,537,734)
(Gain) loss on liability resolution	(23,462)		—		(23,462)		—

Net income (loss) before income taxes	9,747		(381,764)		54,085		(1,537,734)
Income tax expense	—		—		28		—
Net income (loss)	9,747		(381,764)		54,057		(1,537,734)
Plus: Net loss attributable to noncontrolling interests - Customer ExAlt Trusts	4,523		3,592		5,049		17,458
Plus: Net loss attributable to noncontrolling interests - Ben	3,067		10,604		10,254		41,290
Less: Noncontrolling interest guaranteed payment	(4,423)		(4,167)		(8,779)		(8,272)
Net income (loss) attributable to Beneficient common shareholders	$	12,914	$	(371,735)	$	60,581	$	(1,487,258)
Other comprehensive income (loss):
Unrealized (loss) gain on investments in available-for-sale debt securities	26		(105)		5		4,185
Total comprehensive income (loss)	12,940		(371,840)		60,586		(1,483,073)
Less: comprehensive (loss) gain attributable to noncontrolling interests	26		(105)		5		4,185
Total comprehensive income (loss) attributable to Beneficient	$	12,914	$	(371,735)	$	60,581	$	(1,487,258)

Net income (loss) per common share
Class A - basic	$	2.98	$	(115.95)	$	14.58	$	(521.17)
Class B - basic	$	2.69	$	(113.50)	$	14.80	$	(454.08)

Net income (loss) per common share
Class A - diluted	$	0.03	$	(115.95)	$	0.18	$	(521.17)
Class B - diluted	$	0.03	$	(113.50)	$	0.18	$	(454.08)

See accompanying notes to consolidated financial statements.

Table of Contents

BENEFICIENT

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (DEFICIT)

(UNAUDITED)

For the three months ended September 30, 2024 and 2023:


	Series A preferred stock			Series B preferred stock			Class A common stock			Class B common stock			APIC		Accumulated Deficit		Stock Receivable		Treasury Stock		Accumulated Other Comprehensive Income (Loss)		Noncontrolling interests (Note 10)		Total equity		Redeemable noncontrolling interests
(Dollars and units in thousands)	Shares	Amount		Shares	Amount		Shares	Amount		Shares	Amount
Balance, June 30, 2024	—	$	—	227	$	—	4,006	$	4	239	$	—	$	1,852,187	$	(2,011,547)	$	(20,038)	$	(3,444)	$	255	$	34,293	$	(148,290)	$	251,052
Net income (loss)	—	—		—	—		—	—		—	—		—		12,914		—		—		—		(7,590)		5,324		4,423
Noncontrolling interest reclass	—	—		—	—		—	—		—	—		—		—		—		—		—		(122)		(122)		—
Recognition of share-based compensation cost	—	—		—	—		—	—		—	—		3,364		—		—		—		—		—		3,364		—










Unrealized gain on available-for-sale debt securities	—	—		—	—		—	—		—	—		—		—		—		—		26		—		26		—


Preferred A.0 Unit Accounts guaranteed payment accrual	—	—		—	—		—	—		—	—		—		—		—		—		—		—		—		(4,423)


Issuance of Class A common stock to settle liabilities	—	—		—	—		211	—		—	—		307		—		—		—		—		—		307		—
Issuance of Class A common stock	—	—		—	—		363	1		—	—		672		—		—		—		—		—		673		—

Termination of prepaid forward purchase agreement	—	—		—	—		—	—		—	—		(20,038)		—		20,038		—		—		—		—		—

Reclass of BCH Preferred A.0 from temporary to permanent equity	—	—		—	—		—	—		—	—		—		—		—		—		—		125,526		125,526		(125,526)





Balance, September 30, 2024	—	$	—	227	$	—	4,580	$	5	239	$	—	$	1,836,492	$	(1,998,633)	$	—	$	(3,444)	$	281	$	152,107	$	(13,192)	$	125,526

See accompanying notes to consolidated financial statements.

Table of Contents

BENEFICIENT

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (DEFICIT) (cont’d)

(UNAUDITED)


	Series A preferred stock			Series B preferred stock			Class A common stock			Class B common stock			APIC		Accumulated Deficit		Stock Receivable		Treasury Stock		Accumulated Other Comprehensive Income (Loss)		Noncontrolling interests (Note 10)		Total equity		Redeemable noncontrolling interests
(Dollars and units in thousands)	Shares	Amount		Shares	Amount		Shares	Amount		Shares	Amount
Balance, June 30, 2023	—	$	—	—	$	—	2,376	$	2	239	$	—	$	1,583,248	$	(1,079,091)	$	(20,038)	$	(3,444)	$	14,190	$	786,080	$	1,280,947	$	251,052
Net income (loss)	—	—		—	—		—	—		—	—		—		(371,735)		—		—		—		(14,196)		(385,931)		4,167
Recognition of share-based compensation cost	—	—		—	—		—	—		—	—		8,503		—		—		—		—		—		8,503		—
Payment of employee payroll taxes on restricted equity units	—	—		—	—		—	—		—	—		(32)		—		—		—		—		—		(32)		—



Issuance of shares in connection with recent financings	—	—		—	—		36	—		—	—		6,603		—		—		—		—		(3,193)		3,410		—
Reclass of distributions payable to noncontrolling interest holder	—	—		—	—		—	—		—	—		—		—		—		—		—		(238)		(238)		—
Conversion of Preferred Series C to Class A common stock	—	—		—	—		550	—		—	—		205,759		—		—		—		—		(205,759)		—		—
Reclassification of realized gain upon transfer from available-for-sale debt security to equity interest	—	—		—	—		—	—		—	—		—		—		—		—		(13,694)		—		(13,694)		—
Settlement of restricted stock units	—	—		—	—		68	—		—	—		—		—		—		—		—		—		—		—
Issuance of Series B-1 preferred stock in connection with recent financings	—	—		3,769	4		—	—		—	—		36,703		—		—		—		—		942		37,649		—
Adjustment to liability assumed at de-SPAC	—	—		—	—		—	—		—	—		500		—		—		—		—		—		500		—
Issuance of shares to settle liability assumed at de-SPAC	—	—		—	—		6	—		—	—		1,250		—		—		—		—		—		1,250		—



Unrealized gain on available-for-sale debt securities	—	—		—	—		—	—		—	—		—		—		—		—		(105)		—		(105)		—

Preferred Series A.0 Unit Accounts guaranteed payment accrual	—	—		—	—		—	—		—	—		—		—		—		—		—		—		—		(4,167)



Balance, September 30, 2023	—	$	—	3,769	$	4	3,036	$	2	239	$	—	$	1,842,534	$	(1,450,826)	$	(20,038)	$	(3,444)	$	391	$	563,636	$	932,259	$	251,052

See accompanying notes to consolidated financial statements.

Table of Contents

BENEFICIENT

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (DEFICIT) (cont’d)

(UNAUDITED)

For the six months ended September 30, 2024 and 2023:


	Series A preferred stock			Series B-1 preferred stock			Class A common stock			Class B common stock			APIC		Accumulated Deficit		Stock Receivable		Treasury Stock		Accumulated Other Comprehensive Income (Loss)		Noncontrolling interests (Note 10)		Total equity		Redeemable noncontrolling interests
(Dollars and units in thousands)	Shares	Amount		Shares	Amount		Shares	Amount		Shares	Amount
Balance, March 31, 2024	—	$	—	227	$	—	3,348	$	3	239	$	—	$	1,848,068	$	(2,059,214)	$	(20,038)	$	(3,444)	$	276	$	42,231	$	(192,118)	$	251,052
Net income (loss)	—	—		—	—		—	—		—	—		—		60,581		—		—		—		(15,303)		45,278		8,779
Noncontrolling interest reclass	—	—		—	—		—	—		—	—		—		—		—		—		—		(347)		(347)		—
Recognition of share-based compensation cost	—	—		—	—		—	—		—	—		4,358		—		—		—		—		—		4,358		—



Issuance of shares in connection with equity purchase agreement	—	—		—	—		449	1		—	—		2,554		—		—		—		—		—		2,555		—





Unrealized gain on available-for-sale debt securities	—	—		—	—		—	—		—	—		—		—		—		—		5		—		5		—


Preferred A.0 guaranteed payment accrual	—	—		—	—		—	—		—	—		—		—		—		—		—		—		—		(8,779)


Issuance of common shares to settle liability	—	—		—	—		340	—		—	—		1,221		—		—		—		—		—		1,221		—

Issuance of Class A common stock	—	—		—	—		363	1		—	—		672		—		—		—		—		—		673		—
Rounding adjustment in connection with reverse stock split	—	—		—	—		80	—		—	—		—		—		—		—		—		—		—		—
Equity issuance costs reclassed to APIC	—	—		—	—		—	—		—	—		(343)		—		—		—		—		—		(343)		—
Termination of prepaid forward purchase agreement	—	—		—	—		—	—		—	—		(20,038)		—		20,038		—		—		—		—		—
Reclass of BCH Preferred A.0 from temporary to permanent equity	—	—		—	—		—	—		—	—		—		—		—		—		—		125,526		125,526		(125,526)



Balance, September 30, 2024	—	$	—	227	$	—	4,580	$	5	239	$	—	$	1,836,492	$	(1,998,633)	$	—	$	(3,444)	$	281	$	152,107	$	(13,192)	$	125,526

See accompanying notes to consolidated financial statements.

Table of Contents

Beneficient [BENFW] Filings
Beneficient [BENF] Filings
10-Q	[2024-11-14]
S-1	[2024-10-22]
10-Q	[2024-08-14]
10-K	[2024-07-09]
10-Q	[2024-02-14]
10-Q	[2023-11-14]
S-1	[2023-10-26]
10-Q	[2023-08-14]
S-1	[2023-07-19]
S-1	[2023-07-19]
S-1	[2023-07-19]
10-K	[2023-07-13]

Beneficient [BENFW] Filings

Beneficient [BENF] Filings