Beneficient Q4 FY2024 earnings call

• Ben was created to provide fiduciary products and services for alternative assets, aiming to complete transactions in as little as 15 days. - Has advantages like being a public company, regulatory oversight, and a custom-built technology platform. - Estimates unmet demand for liquidity in alternative assets is significant and growing. - Plans to grow through market awareness strategy using third-party data, etc. - Board approved ExchangeTrust product plan to complete up to $5 billion of fiduciary financings, aiming to reduce transaction times to 15 days. - Achieved listing on NASDAQ in fiscal 2024. - Update on legal proceedings: federal judge ruled against motion to dismiss defamation lawsuit, SEC terminated investigation and not recommending enforcement action.

The primary business segments are Ben Liquidity and Ben Custody. During the fourth quarter, Ben Liquidity recognized $10.6 million in base interest revenue, down 5.6% from the prior quarter, due to lower carrying value of loans receivable driven by higher allowances for credit losses. For the full year, revenue was $46.9 million, down 7.6% also due to lower carrying value of loans receivable because of higher allowances for credit losses. For Ben Custody, revenues applicable to Ben Custody were $5.6 million for the fourth fiscal quarter compared to $5.9 million for the quarter ended December 31, 2023, a decrease due to lower NAV of alternative assets and other securities held in custody. For the full year, revenues were $24.5 million, down 15.5% as compared to the prior year period, due to lower NAV of alternative assets and other securities held in custody.

• Plan to grow and scale capital commensurate with demand for liquidity and primary capital products, strengthening balance sheet over time. - Aim to capture opportunities in served markets through market awareness strategy.

• Higher allowances for credit losses affecting carrying value of loans receivable for Ben Liquidity. - Unrealized losses on existing assets in Ben Custody, including related to a wind down trust for a bankrupt entity. - Non-cash goodwill impairment and credit losses related to securities of former parent company impacting financial results.