“We are excited by the progress we have made in our second quarter since the Company’s successful public listing. These positive efforts and results are a testament to our unique business model, innovative product offerings and execution by our team to deliver liquidity solutions to customers,” stated
Business Segments: Second Quarter Fiscal 2024
Ben Liquidity
- New liquidity transactions closed during the period totaled a net asset value of
$44.4 million , which represents 9.1% in growth compared to the net asset value existing as of the end of the prior quarter. - Revenues of
$13.0 million , up 19.5% from the prior year period, driven primarily by an increase in interest earned on new liquidity transactions originating during the period. - Operating loss for the period was $(272.1) million, compared to operating income of
$24 .2 million in the prior year period. The change was primarily due to non-cash goodwill impairment and negative credit loss adjustments, principally related to securities of our former parent company in the current period. - Adjusted operating loss(1) for the period was
$4.7 million , compared to a loss of$1.4 million in the prior year period. The change was primarily due to additional interest expense.
Ben Custody
- Total new assets held in custody during the period grew by
$44.4 million , which represents 9.1% in growth compared to the net asset value existing as of the end of the prior quarter. The growth was driven by the new liquidity transactions of Ben Liquidity. - Net asset value of alternative assets and other securities held in custody during the period was
$457.5 million , compared to$491.9 million as ofMarch 31, 2023 . The change was driven by unrealized losses on existing assets, principally related to interests in a wind down trust for a bankrupt entity related to our former parent company, and distributions offset by the new liquidity transactions during the period. - Revenues of
$6.5 million for the period, compared to$7.8 million in the prior year period. The change was as a result of lower net asset values held in custody. - Operating loss for the period was $(80.8) million, compared to operating income of
$6 .3 million in the prior year period. The change was primarily due to non-cash goodwill impairment in the current period. - Adjusted operating income(1) for the period was
$5.6 million , compared to$6.3 million in the prior year period. The change was primarily due to a change in revenue due to lower net asset values held in custody.
Capital and Liquidity
- At
September 30, 2023 , the Company had cash and cash equivalents of$2.4 million and total debt of$150.8 million . - Distributions received from alternative assets and other securities held in custody totaled
$26.3 million for the six months endedSeptember 30, 2023 , compared to$27.5 million for the six months endedSeptember 30, 2022 .
(1) Represents a non-GAAP financial measure. For reconciliations of our non-GAAP measures to the most directly comparable GAAP financial measures and for the reasons we believe the non-GAAP measures provide useful information, see Non-GAAP Reconciliations.
Consolidated Fiscal Second Quarter Results
Table 1 below presents a summary of selected unaudited consolidated operating financial information.
Consolidated Fiscal Second Quarter Results ($ in thousands, except share and per share amounts) | Fiscal 2Q24 Three Months Ended | Fiscal 2Q23 Three Months Ended | Change % | |||||
GAAP Revenues | $ | (42,761 | ) | $ | (37,945 | ) | (12.7)% | |
Adjusted GAAP Revenues (1) | (801 | ) | (10,186 | ) | 92.1% | |||
GAAP Operating Loss | (381,764 | ) | (73,000 | ) | NM | |||
Adjusted GAAP Operating Loss (1) | (21,170 | ) | (33,949 | ) | 37.6% | |||
Diluted Class A EPS | $ | (1.45 | ) | $ | (0.03 | ) | NM | |
Segment Revenues attributable to Ben's Equity Holders (2) | 18,629 | 14,196 | 31.2% | |||||
Adjusted Segment Revenues attributable to Ben's Equity Holders (1)(2) | 19,066 | 19,821 | (3.8)% | |||||
Segment Operating Income (Loss) attributable to Ben's Equity Holders | (378,172 | ) | 736 | NM | ||||
Adjusted Segment Operating Loss attributable to Ben's Equity Holders (1)(2) | $ | (11,960 | ) | $ | (7,951 | ) | (50.4)% |
NM - Not meaningful.
- Adjusted GAAP Revenues, Adjusted GAAP Operating Income (Loss), Adjusted Segment Revenues attributable to Ben's Equity Holders and Adjusted Segment Operating Income (Loss) attributable to Ben's Equity Holders are non-GAAP financial measures. For reconciliations of our non-GAAP measures to the most directly comparable GAAP financial measures and for the reasons we believe the non-GAAP measures provide useful information, see Non-GAAP Reconciliations.
- Segment financial information attributable to Ben’s equity holders is presented to provide users of our financial information an understanding and visual aide of the segment information (revenues, operating income (loss), adjusted operating income (loss)) that impacts Ben’s Equity Holders. Ben’s Equity Holders refers to the holders of Beneficient Class A and Class B common stock and Series B-1 Preferred Stock as well as holders of interests in BCH which represent noncontrolling interests. For a description of noncontrolling interests, see Item 2 of our Quarterly Report on Form 10-Q for the six months ended
September 30, 2023 , and Reconciliation of Business Segment Information Attributable to Ben’s Equity Holders to Net Income Attributable to Ben Common Holders. Such information is computed as the sum of the Ben Liquidity, Ben Custody and Corp/Other segments since it is the operating results of those segments that determines the net income (loss) attributable to Ben’s Equity Holders. See further information in table 5 and Non-GAAP Reconciliations.
Table 2 below presents a summary of selected unaudited consolidated balance sheet information.
Consolidated Fiscal Second Quarter Results ($ in thousands) | Fiscal 2Q24 As of | Fiscal 4Q23 As of | Change % | ||
Investments, at Fair Value | $ | 457,771 | $ | 497,221 | (7.9)% |
Other Assets | 31,197 | 42,448 | (26.5)% | ||
968,037 | 2,371,026 | (59.2)% | |||
Total Assets | $ | 1,457,005 | $ | 2,910,695 | (49.9)% |
Business Segment Information Attributable to Ben's Equity Holders(1)
Table 3 below presents unaudited segment revenues and segment operating income (loss) for business segments attributable to Ben's equity holders.
Segment Revenues Attributable to Ben's Equity Holders(1) ($ in thousands) | Fiscal 2Q24 Three Months Ended | Fiscal 2Q23 Three Months Ended | Change % | ||||
Ben Liquidity | $ | 13,022 | $ | 10,894 | 19.5% | ||
Ben Custody | 6,490 | 7,775 | (16.5)% | ||||
Corporate & Other | (883 | ) | (4,473 | ) | 80.3% | ||
Total Segment Revenues Attributable to Ben's Equity Holders(1) | $ | 18,629 | $ | 14,196 | 31.2% |
Segment Operating Income (Loss) Attributable to Ben's Equity Holders(1) ($ in thousands) | Fiscal 2Q24 Three Months Ended | Fiscal 2Q23 Three Months Ended | Change % | ||||
Ben Liquidity | $ | (272,091 | ) | $ | 24,211 | NM | |
Ben Custody | (80,847 | ) | 6,274 | NM | |||
Corporate & Other | (25,234 | ) | (29,749 | ) | 15.2% | ||
Total Segment Operating Income (Loss) Attributable to Ben's Equity Holders(1) | $ | (378,172 | ) | $ | 736 | NM |
NM - Not meaningful.
- Segment financial information attributable to Ben’s equity holders is presented to provide users of our financial information an understanding and visual aide of the segment information (revenues, operating income (loss), adjusted operating income (loss)) that impacts Ben’s Equity Holders. Ben’s Equity Holders refers to the holders of Beneficient Class A and Class B common stock and Series B-1 Preferred Stock as well as holders of interests in BCH which represent noncontrolling interests. For a description of noncontrolling interests, see Item 2 of our Quarterly Report on Form 10-Q for the six months ended
September 30, 2023 , and Reconciliation of Business Segment Information Attributable to Ben’s Equity Holders to Net Income Attributable to Ben Common Holders. Such information is computed as the sum of the Ben Liquidity, Ben Custody and Corp/Other segments since it is the operating results of those segments that determines the net income (loss) attributable to Ben’s Equity Holders. See further information in table 5 and Non-GAAP Reconciliations.
Adjusted Business Segment Information Attributable to Ben's Equity Holders(2)
Table 4 below presents unaudited adjusted segment revenue and adjusted segment operating income (loss) for business segments attributable to Ben's equity holders.
Adjusted Segment Revenues Attributable to Ben's Equity Holders(1)(2) ($ in thousands) | Fiscal 2Q24 Three Months Ended | Fiscal 2Q23 Three Months Ended | Change % | |||
Ben Liquidity | $ | 13,022 | $ | 10,894 | 19.5% | |
Ben Custody | 6,490 | 7,775 | (16.5)% | |||
Corporate & Other | (446 | ) | 1,152 | NM | ||
Total Adjusted Segment Revenues Attributable to Ben's Equity Holders(1)(2) | $ | 19,066 | $ | 19,821 | (3.8)% |
Adjusted Segment Operating Income (Loss) Attributable to Ben's Equity Holders(1)(2) ($ in thousands) | Fiscal 2Q24 Three Months Ended | Fiscal 2Q23 Three Months Ended | Change % | ||||
Ben Liquidity | $ | (4,738 | ) | $ | (1,393 | ) | NM |
Ben Custody | 5,625 | 6,274 | (10.3)% | ||||
Corporate & Other | (12,847 | ) | (12,832 | ) | (0.1)% | ||
Total Adjusted Segment Operating Income (Loss) Attributable to Ben's Equity Holders(1)(2) | $ | (11,960 | ) | $ | (7,951 | ) | (50.4)% |
NM - Not meaningful.
- Adjusted GAAP Revenues, Adjusted GAAP Operating Income (Loss), Adjusted Segment Revenues attributable to Ben's Equity Holders and Adjusted Segment Operating Income (Loss) attributable to Ben's Equity Holders are non-GAAP financial measures. For reconciliations of our non-GAAP measures to the most directly comparable GAAP financial measures and for the reasons we believe the non-GAAP measures provide useful information, see Non-GAAP Reconciliations.
- Segment financial information attributable to Ben’s equity holders is presented to provide users of our financial information an understanding and visual aide of the segment information (revenues, operating income (loss), adjusted operating income (loss)) that impacts Ben’s Equity Holders. Ben’s Equity Holders refers to the holders of Beneficient Class A and Class B common stock and Series B-1 Preferred Stock as well as holders of interests in BCH which represent noncontrolling interests. For a description of noncontrolling interests, see Item 2 of our Quarterly Report on Form 10-Q for the six months ended
September 30, 2023 , and Reconciliation of Business Segment Information Attributable to Ben’s Equity Holders to Net Income Attributable to Ben Common Holders. Such information is computed as the sum of the Ben Liquidity, Ben Custody and Corp/Other segments since it is the operating results of those segments that determines the net income (loss) attributable to Ben’s Equity Holders. See further information in table 5 and Non-GAAP Reconciliations.
Reconciliation of Business Segment Information Attributable to Ben's Equity Holders to Net Income Attributable to Ben Common Shareholders
Table 5 below presents reconciliation of operating income (loss) by business segment attributable to Ben's Equity Holders to net income (loss) attributable to Ben common shareholders.
Reconciliation of Business Segments to Net Income (Loss) to Ben Common Shareholders ($ in thousands) | Fiscal 2Q24 | Fiscal 2Q23 | ||||
Ben Liquidity | $ | (272,091 | ) | $ | 24,211 | |
Ben Custody | (80,847 | ) | 6,274 | |||
Corporate & Other | (25,234 | ) | (29,749 | ) | ||
Less: Income Tax Expense (Benefit) | 0 | 887 | ||||
Less: Net (income) loss attributable to noncontrolling interests - Ben | 10,604 | (192 | ) | |||
Less: Net income attributable to noncontrolling interests - CT | 0 | (893 | ) | |||
Less: Noncontrolling interest guaranteed payment | (4,167 | ) | (3,926 | ) | ||
Net loss attributable to Ben's common shareholders | $ | (371,735 | ) | $ | (5,162 | ) |
Earnings Webcast
Beneficient will host a webcast and conference call to review its second-quarter financial results today,
Replay
The webcast will be archived on the Company’s website in the investor relations section for replay.
About Beneficient
Beneficient (Nasdaq: BENF) – Ben, for short – is on a mission to democratize the global alternative asset investment market by providing traditionally underserved investors − mid-to-high net worth individuals, small-to-midsized institutions and
Its subsidiary,
For more information, visit www.trustben.com or follow us on LinkedIn.
Investors
investors@beneficient.com
Media
beneficient@longacresquare.com
Disclaimer and Cautionary Note Regarding Forward-Looking Statements
Some of the statements contained in this press release are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements are generally identified by the use of words such as “anticipate,” “believe,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “potential,” “predict,” “project,” “should,” “target,” “will,” “would” and, in each case, their negative or other various or comparable terminology. These forward-looking statements reflect our views with respect to future events as of the date of this document and are based on our management’s current expectations, estimates, forecasts, projections, assumptions, beliefs and information. Although management believes that the expectations reflected in these forward-looking statements are reasonable, it can give no assurance that these expectations will prove to have been correct. All such forward-looking statements are subject to risks and uncertainties, many of which are outside of our control, and could cause future events or results to be materially different from those stated or implied in this document. It is not possible to predict or identify all such risks. These risks include, but are not limited to, our ability to consummate liquidity transactions on terms desirable for the Company, or at all, and the risk factors that are described under the section titled “Risk Factors” in our Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, and other filings with the
Table 6: CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (UNAUDITED)
Three Months Ended | Six Months Ended | ||||||||||||||
(Dollars in thousands, except per share amounts) | 2023 | 2022 | 2023 | 2022 | |||||||||||
Revenues | |||||||||||||||
Investment income (loss), net | $ | (13 | ) | $ | (17,099 | ) | $ | 487 | $ | (42,216 | ) | ||||
Loss on financial instruments, net (related party of | (42,775 | ) | (21,037 | ) | (46,236 | ) | (33,058 | ) | |||||||
Interest and dividend income | 114 | 97 | 230 | 182 | |||||||||||
Trust services and administration revenues (related party of | (87 | ) | 8 | 15 | 15 | ||||||||||
Other income | — | 86 | — | 86 | |||||||||||
Total revenues | (42,761 | ) | (37,945 | ) | (45,504 | ) | (74,991 | ) | |||||||
Operating expenses | |||||||||||||||
Employee compensation and benefits | 15,398 | 10,517 | 51,221 | 22,082 | |||||||||||
Interest expense (related party of | 5,114 | 3,590 | 8,898 | 7,209 | |||||||||||
Professional services | 6,657 | 14,232 | 17,030 | 22,089 | |||||||||||
Provision (provision credit) for credit losses | — | (10 | ) | — | 18,781 | ||||||||||
Loss on impairment of goodwill | 306,684 | — | 1,402,989 | — | |||||||||||
Other expenses (related party of | 5,150 | 6,726 | 12,092 | 13,799 | |||||||||||
Total operating expenses | 339,003 | 35,055 | 1,492,230 | 83,960 | |||||||||||
Operating loss | (381,764 | ) | (73,000 | ) | (1,537,734 | ) | (158,951 | ) | |||||||
Income tax expense | — | 887 | — | 1,284 | |||||||||||
Net loss | (381,764 | ) | (73,887 | ) | (1,537,734 | ) | (160,235 | ) | |||||||
Less: Net (income) loss attributable to noncontrolling interests - Customer ExAlt Trusts | 3,592 | 72,843 | 17,458 | 101,554 | |||||||||||
Less: Net (income) loss attributable to noncontrolling interests - Ben | 10,604 | (192 | ) | 41,290 | 7,344 | ||||||||||
Less: Noncontrolling interest guaranteed payment | (4,167 | ) | (3,926 | ) | (8,272 | ) | (7,794 | ) | |||||||
Net loss attributable to Beneficient common shareholders | $ | (371,735 | ) | $ | (5,162 | ) | $ | (1,487,258 | ) | $ | (59,131 | ) | |||
Other comprehensive income (loss): | |||||||||||||||
Unrealized gain (loss) on investments in available-for-sale debt securities | (105 | ) | 9,505 | 4,185 | 7,707 | ||||||||||
Total comprehensive income (loss) | (371,840 | ) | 4,343 | (1,483,073 | ) | (51,424 | ) | ||||||||
Less: comprehensive gain (loss) attributable to noncontrolling interests | (105 | ) | 9,505 | 4,185 | 7,707 | ||||||||||
Total comprehensive loss attributable to Beneficient | $ | (371,735 | ) | $ | (5,162 | ) | $ | (1,487,258 | ) | $ | (59,131 | ) | |||
Net loss per common share - basic and diluted(1) | |||||||||||||||
Class A | $ | (1.45 | ) | $ | (0.03 | ) | $ | (6.51 | ) | $ | (0.30 | ) | |||
Class B | $ | (1.42 | ) | $ | (0.03 | ) | $ | (5.68 | ) | $ | (0.30 | ) | |||
Weighted average common shares outstanding - basic and diluted(1) | |||||||||||||||
Class A | 237,741,391 | 180,178,268 | 211,618,712 | 180,178,268 | |||||||||||
Class B | 19,140,451 | 19,140,451 | 19,140,451 | 19,140,451 |
(1) Retroactively adjusted the three months ended
Table 7: CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(Dollars and shares in thousands) | (unaudited) | ||||||
ASSETS | |||||||
Cash and cash equivalents | $ | 2,394 | $ | 8,726 | |||
Restricted cash | 20 | 819 | |||||
Investments, at fair value: | |||||||
Investments held by Customer ExAlt Trusts (related party of | 457,548 | 491,859 | |||||
Investments held by Ben (related party of | 223 | 5,362 | |||||
Other assets, net (related party of | 28,783 | 32,903 | |||||
Intangible assets | 3,100 | 3,100 | |||||
964,937 | 2,367,926 | ||||||
Total assets | $ | 1,457,005 | $ | 2,910,695 | |||
LIABILITIES, TEMPORARY EQUITY, AND EQUITY | |||||||
Accounts payable and accrued expenses (related party of | $ | 104,958 | $ | 65,724 | |||
Other liabilities (related party of nil and | 16,979 | 14,622 | |||||
Warrant liability | 956 | — | |||||
Customer ExAlt Trusts loan payable, net | 48,660 | 52,129 | |||||
Debt due to related party, net | 102,141 | 99,314 | |||||
Total liabilities | 273,694 | 231,789 | |||||
Redeemable noncontrolling interests | |||||||
Preferred Series A Subclass 0 Unit Accounts, nonunitized | 251,052 | 251,052 | |||||
Preferred Series A Subclass 1 Unit Accounts, nonunitized | — | 699,441 | |||||
Total temporary equity | 251,052 | 950,493 | |||||
Shareholder’s equity: | |||||||
Preferred stock, par value | |||||||
Series A Preferred stock, 0 and 0 shares issued and outstanding as of | — | — | |||||
Series B Preferred stock, 3,769 and 0 shares issued and outstanding as of | 4 | — | |||||
Class A common stock, par value | 243 | 180 | |||||
Class B convertible common stock, par value | 19 | 19 | |||||
Additional paid-in capital | 1,842,274 | 1,579,545 | |||||
Accumulated deficit | (1,450,826 | ) | — | ||||
Stock receivable | (20,038 | ) | — | ||||
(3,444 | ) | (3,444 | ) | ||||
Accumulated other comprehensive income | 391 | 9,900 | |||||
Noncontrolling interests | 563,636 | 142,213 | |||||
Total equity | 932,259 | 1,728,413 | |||||
Total liabilities, temporary equity, and equity | $ | 1,457,005 | $ | 2,910,695 |
(1) Retroactively adjusted
Table 8: Non-GAAP Reconciliation
(in thousands) | Three Months Ended | |||||||||||||||||
Ben Liquidity | Ben Custody | Customer ExAlt Trusts | Corporate/ Other | Consolidating Eliminations | Consolidated | |||||||||||||
Total revenues | $ | 13,022 | $ | 6,490 | $ | (41,886 | ) | $ | (883 | ) | $ | (19,504 | ) | $ | (42,761 | ) | ||
Mark to market adjustment on interests in the | — | — | 41,523 | 437 | — | 41,960 | ||||||||||||
Adjusted revenues | $ | 13,022 | $ | 6,490 | $ | (363 | ) | $ | (446 | ) | $ | (19,504 | ) | $ | (801 | ) | ||
Operating income (loss) | $ | (272,091 | ) | $ | (80,847 | ) | $ | (78,275 | ) | $ | (25,234 | ) | $ | 74,683 | $ | (381,764 | ) | |
Mark to market adjustment on interests in the | — | — | 41,523 | 437 | — | 41,960 | ||||||||||||
Intersegment reversal of provision for credit losses on collateral comprised of interests in the | 47,141 | — | — | — | (47,141 | ) | — | |||||||||||
Provision for credit losses related to formerly held available-for-sale debt securities of related party | — | — | — | — | — | — | ||||||||||||
Provision for credit losses related to receivables from related party | — | — | — | — | — | — | ||||||||||||
220,212 | 86,472 | — | — | — | 306,684 | |||||||||||||
Share-based compensation expense | — | — | — | 8,503 | — | 8,503 | ||||||||||||
Legal and professional fees(1) | — | — | — | 3,447 | — | 3,447 | ||||||||||||
Defunct product offering costs | — | — | — | — | — | — | ||||||||||||
Adjusted operating income (loss) | $ | (4,738 | ) | $ | 5,625 | $ | (36,752 | ) | $ | (12,847 | ) | $ | 27,542 | $ | (21,170 | ) |
(1) Includes legal and professional fees related to GWG Holdings bankruptcy, lawsuits, public relations, and employee matters.
(in thousands) | Three Months Ended | ||||||||||||||||
Ben Liquidity | Ben Custody | Customer ExAlt Trusts | Corporate/ Other | Consolidating Eliminations | Consolidated | ||||||||||||
Total revenues | $ | 10,894 | $ | 7,775 | $ | (33,480 | ) | $ | (4,473 | ) | $ | (18,661 | ) | $ | (37,945 | ) | |
Mark to market adjustment on equity security of related party | — | — | 22,134 | 5,625 | — | 27,759 | |||||||||||
Adjusted revenues | $ | 10,894 | $ | 7,775 | $ | (11,346 | ) | $ | 1,152 | $ | (18,661 | ) | $ | (10,186 | ) | ||
Operating income (loss) | $ | 24,211 | $ | 6,274 | $ | (70,059 | ) | $ | (29,749 | ) | $ | (3,677 | ) | $ | (73,000 | ) | |
Mark to market adjustment on equity security of related party | — | — | 22,134 | 5,625 | — | 27,759 | |||||||||||
Intersegment reversal of provision for loan losses on collateral comprised of related party equity securities | (25,604 | ) | — | — | — | 25,604 | — | ||||||||||
Provision for credit losses related to available-for-sale debt securities of related party | — | — | — | 13 | — | 13 | |||||||||||
Provision for credit losses related to receivables from related party | — | — | — | (23 | ) | — | (23 | ) | |||||||||
— | — | — | — | — | — | ||||||||||||
Share-based compensation expense | — | — | — | 2,737 | — | 2,737 | |||||||||||
Legal and professional fees(1) | — | — | — | 4,820 | — | 4,820 | |||||||||||
Defunct product offering costs | — | — | — | 3,745 | — | 3,745 | |||||||||||
Adjusted operating income (loss) | $ | (1,393 | ) | $ | 6,274 | $ | (47,925 | ) | $ | (12,832 | ) | $ | 21,927 | $ | (33,949 | ) |
(1) Includes legal and professional fees related to initial registration initiatives, GWG Holdings bankruptcy, lawsuits, public relations and employee matters.
Adjusted GAAP Revenues, Adjusted GAAP Operating Income (Loss), Adjusted Segment Revenues attributable to Ben's Equity Holders and Adjusted Segment Operating Income (Loss) attributable to Ben's Equity Holders are non-GAAP financial measures. We present these non-GAAP financial measures because we believe it helps investors understand underlying trends in our business and facilitates an understanding of our operating performance from period to period because it facilitates a comparison of our recurring core business operating results. These non-GAAP financial measures are intended as a supplemental measure of our performance that is neither required by, nor presented in accordance with,
We define adjusted GAAP revenues as GAAP revenues adjusted to exclude the effect of mark-to-market adjustments on certain related party equity securities and excludes the effect of interest income on related party available-for-sale debt securities, and income from the forfeiture of vested share-based compensation awards. Adjusted Segment Revenues attributable to Ben's Equity Holders is the same as "adjusted GAAP revenues" related to the aggregate of the Ben Liquidity, Ben Custody, and Corporate/Other Business Segments, which are the segments that impact the net income (loss) attributable to all equity holders of Beneficient, including equity holders of Beneficient's subsidiary,
Adjusted GAAP operating income (loss) represents GAAP operating income (loss), adjusted to exclude the effect of the adjustments to revenue as described above, credit losses on related party available-for-sale debt securities, and receivables from a related party that filed for bankruptcy, non-cash asset impairment, share-based compensation expense, audit fee normalization, and legal, professional services, and public relations costs related to the GWG Holdings bankruptcy, lawsuits, a defunct product offering, and certain employee matters, including fees incurred in arbitration with a former director. Adjusted Segment Operating Income (Loss) attributable to Ben's Equity Holders is the same as "adjusted GAAP operating income (loss)" related to the aggregate of the Ben Liquidity, Ben Custody, and Corporate/Other Business Segments, which are the segments that impact the net income (loss) attributable to all equity holders of Beneficient, including equity holders of Beneficient's subsidiary,
These non-GAAP financial measures are not a measure of performance or liquidity calculated in accordance with
Because of these limitations, Adjusted GAAP Revenues, Adjusted GAAP Operating Income (Loss), Adjusted Segment Revenues attributable to Ben's Equity Holders and Adjusted Segment Operating Income (Loss) attributable to Ben's Equity Holders should not be considered in isolation or as a substitute for performance measures calculated in accordance with
Source: Beneficient
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