Q4 2024 Brand Engagement Network Inc Earnings Call
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Operator: Thank you for standing by and welcome to Brand Engagement Network's fourth quarter 2024 earnings conference call. At this time, all participants are in a listen only mode. After the speaker presentation, there will be a question and answer session.
Speaker Change: Thank you for standing by and welcome to brand engagement networks fourth quarter 2024 earnings Conference call. At this time, all participants are in a listen only mode.
Speaker Change: After the speaker presentation, there will be a question and answer session to ask a question. During the session you will need to press star one on your telephone to remove yourself from the queue. You May press star one again.
Operator: To ask a question during the session, you will need to press star 11 on your telephone. To remove yourself from the queue, you may press star 11 again.
Susan Xu: I would now like to hand the call over to Susan Xu in best relations. Please go ahead. Thank you, Lateef, and good afternoon, everyone.
Speaker Change: I would now like to hand, the call over to Susan Xu Investor Relations. Please go ahead.
Susan Xu: Thank you Latif and good afternoon, everyone welcome and thank you for joining <unk> Q4, and full year 2024 earnings conference call joining.
Susan Xu: Welcome and thank you for joining Benz Q4 and full year 2024 earnings conference call. Joining me on the call today are CEO Paul Chang, and CFO and COO Waleed Kiari. The company's Q4 financial results are disseminated prior to this call and are available on the Investor Relations website at www.investor.beninc.ai. During this call, we'll make forward-looking statements, including statements about our business outlook, strategies, and long-term goals. These comments are based on management's plans, predictions, and expectations as of today, which may change over time. The company's actual results could differ materially due to a number of risks and uncertainties.
Latif: Joining me on the call today are CEO, Paul Cheng and CFO and CLO Ali the.
Latif: <unk> Q4 financial results or does terminated prior to this call and are available on the Investor Relations website at Www Dot Investor Dot Bank, Inc. Dot AI.
Latif: During this call we will make forward looking statements, including statements about our business outlook strategies and long term goals. These comments are based on management's plans predictions and expectations as of today, which may change over time.
Latif: Company's actual results could differ materially due to a number of risks and uncertainties.
Susan Xu: For more information about the risks and uncertainties involving forward-looking statements and factors that could cause actual results to differ materially from those projected or implied by forward-looking statements, please see the risk factors set forth in BEM's most recent annual report on Form 10-K, as supplemented by the risk factors in its most recent quarterly report on Form 10-Q. Forward-looking statements represent management's current estimates, and the company assumes no obligation to update any forward-looking statements in the future.
Latif: For more information about the risks and uncertainties involving forward looking statements and factors that could cause actual results to differ materially from those projected or implied by forward looking statements. Please see the risk factors set forth in <unk>. Most recent annual report on Form 10-K as supplemented by the risk factors in its most recent.
Latif: Quarterly report on Form 10-Q.
Latif: Forward looking statements represent management's current estimates and the company assumes no obligation to update any forward looking statements in the future.
Susan Xu: As a reminder, this call is being webcast from our Investor Relations website, and audio replay will be available on the website in a few hours.
Latif: As a reminder, this call is being webcast from our Investor Relations website, an audio replay will be available on the website in a few hours.
Paul Chang: With that, I'll turn it over to Paul to share a Q4 update. Over to you, Paul.
Latif: With that I'll turn it over to Paul to share our Q4 update over to you Paul.
Paul Chang: Thank you, Susan. Good afternoon, and thank you all for joining us today. Before we delve into our quarterly updates, I want to address the broader AI landscape and the recent turbulence sparked by deep The rapid rise has raised awareness on AI training and run costs, scalability, and market dominance, triggering both excitement and volatility in the market. While DeepSeek's open source model is making headlines, it merely reinforces what Ben has long championed since the beginning. AI doesn't have to rely on massive, expensive, GPU heavy infrastructure to be effective. Last July, we demonstrated how small language models Retrieval Augmented Generation.
Paul: Thank you Susan good afternoon, and thank you all for joining us today.
Speaker Change: Before we delve into our quarterly updates I want to address the broader AI landscape and the recent turbulence sparked by deep seek.
Speaker Change: The rapid rise has raised awareness on AI training and run cost scalability and market dominance triggering both excitement and volatility in the market.
Speaker Change: While deep six open source model is making headlines it merely reinforces what Ben has long championed since the beginning.
Speaker Change: It doesn't have to rely on massive expenses GPU had the infrastructure to be effective.
Speaker Change: Last July we demonstrated how small language models.
Speaker Change: Retrieval augmented generation and industry specific training can create a scalable and secure AI platform at a fraction of the cost.
Paul Chang: and industry specific training can create a scalable and secure AI platform at a fraction of the cost. Unlike many large-scale AI systems that rely on costly, difficult-to-procure, energy-intensive GPUs, Ben's platform can run efficiently on CPU. The smaller computational footprint makes our AI more accessible, affordable, and scalable, enabling businesses of all sizes to leverage it without expensive infrastructure. Ben's approach and architecture also gives businesses the full control of customers AI experience, while integration with legacy applications enables the automated processes that truly drive efficiency and enhanced customer engagement.
Speaker Change: Unlike many large scale AI systems that rely on costly difficult to procure energy intensive Gpus bends.
Ben: Ben's platform can run efficiently on Cpus.
Ben: The smaller computational footprint makes our AI more accessible affordable and scalable, enabling businesses of all sizes to leverage it without expensive infrastructure.
Ben: Ben's approach and architecture also gives businesses the full control of customers' AI experience.
Ben: <unk> integration with legacy applications enables the automated processes that truly drive efficiency and enhanced customer engagement.
Paul Chang: This brings me to another critical issue shaping the AI industry. Data Privacy and Security. The concerns surrounding DeepSeek are not just about AI dominance, but also about where and how user data is stored and Lawmakers and consumer advocates have raised alarms about foreign access to personal information. And the US government is now considering banning DeepSeek AI on government devices due to national security risks. that then we prioritize data security from day one. Our AI platform operates within a closed loop system, ensuring user data remains protected and never enters public training sets. This security-first approach has led us to provide key insights to California Assembly Member Carl DeMaio on his proposed bill AB364 to strengthen consumer data protection.
Speaker Change: This brings me to another critical issues shaping our industry.
Ben: Data privacy and security.
Ben: The concerns surrounding deep sea are not just about AI dominance, but also about where and how user data is stored and used.
Ben: Lawmakers and consumer advocates have raised alarms about foreign access to personal information and the U S. Government is now considering banning deep seek AI on government devices due to national security risks.
Ben: Then we prioritize data security from day one.
Ben: Our AI platform operates within a closed loop system, ensuring user data remains protected and never enters public training sets.
Ben: This security first approach has led us to provide key insights to California Assembly member Carl Dimaio on his proposed bill.
Ben: <unk> 364.
Ben: To strengthen consumer data protections.
Paul Chang: The bill would require AI and social media platforms to disclose where user data is stored, mandate explicit user consent, and prohibit foreign controlled entities from handling sensitive health care, financial, and geolocation data. This commitment to security and efficiency has guided our work at BAN. and we continue to see strong traction across keyboard.
Ben: The bill would require AI and social media platforms to disclose where user data is stored.
Ben: Mandate explicit user consent and prohibit foreign controlled entities from handling sensitive healthcare financial and Geo location data.
Ben: This commitment to security and efficiency.
Ben: As guided our work it then.
Ben: And we continue to see strong traction across key verticals.
Paul Chang: In Q4, we reached two major milestones that position Ben for further growth in the automotive sector.
Ben: In Q4, we reached two major milestones that position <unk> for further growth in the automotive sector.
Paul Chang: First, we signed an agreement with Michiana, Chrysler, Dodge, Jeep, and Ram, making them our first pilot dealer in the automotive sector. Since they already use dealer.com software, which is fully integrated with our AI platform, this partnership allows us to seamlessly deploy our AI power agents, enhancing customer engagement, and streamlining dealership operations. This integration allows dealerships using dealer.com to leverage Ben's human-like AI agents across their websites, apps, web browsers, and life-size kiosks.
Ben: First we signed an agreement with Michigan.
Ben: Fuller Dodge Jeep and Ram <unk>.
Ben: Making them, our first pilot dealer in the automotive sector.
Ben: Since they already use dealer dot com software, which is fully integrated with our AI platform.
Ben: This partnership allows us to seamlessly deploy our AI powered agents.
Ben: Enhancing customer engagement and streamlining dealership operations.
Speaker Change: This integration allows dealerships using dealer dot com.
Speaker Change: To leverage Ben's human like AI agents across their websites.
Speaker Change: <unk> web browsers and Lifesize kiosks.
Paul Chang: We anticipate the AI agents will go live in Q2, marking a significant step forward in our expansion into the automotive sector and demonstrating value of our scalable AI power solutions in high volume, customer facing environments.
Speaker Change: We anticipate the AI agents will go live in Q2, marking a significant step forward in our expansion into the automotive sector and demonstrating value of our scalable AI power solutions in high volume customer facing environments.
Paul Chang: Beyond our progress in automotive, we continue to execute on our broader, broader strategic vision.
Beyond our progress in automotive, we continue to execute on our broader broader strategic vision.
Paul Chang: Last October, we announced our agreement to acquire Catenail, a leading media technology company based in Germany. This acquisition is a key part of our strategy to expand Ben's AI capabilities into global media and advertising. integrating our secure, scalable AI with Catenail's Midas platform to enhance customer engagement and streamline ad sales and inventory management.
Speaker Change: Last October we announced our agreement to acquire cats nail a leading media technology company based in Germany.
Speaker Change: This acquisition is a key part of our strategy to expand.
Speaker Change: Ben's AI capabilities into global media and advertising.
Speaker Change: Integrating our secure scalable AI with cat toenails, Midas platform to enhance customer engagement and streamline AD sales and inventory management.
Paul Chang: We've made steady progress and Waleed will provide further details on the current staff.
Speaker Change: We've made steady progress and while lead we will provide further details on the current status.
Paul Chang: looking ahead to 2025. We believe Ben is well-positioned for growth, continued growth in our target healthcare, life sciences industry, as well as new markets where and. Our potential national chain clients appear interested to deploy Benz AI agents for mission-critical tasks such as educating the public on the benefits and safety of vaccines as part of an outreach campaign. The key advantages are that the consumers will only be provided information from trusted, validated sources, and a campaign can scale effortlessly, reaching consumers at every corner of the country. Such campaign is designed to increase our customers' revenues while significantly reducing the cost to run and manage the campaign.
Speaker Change: Looking ahead to 2025.
Speaker Change: We believe <unk> is well positioned for growth continued growth in our target healthcare life sciences industry as well as new markets. We're entering.
Speaker Change: Our potential national chain clients appear interested deploy Ben's AI agents for mission critical tasks, such as educating the public on the benefits and safety of vaccines as part of an outreach campaign.
Speaker Change: The key advantages are that the consumers will only be provided information from trusted validated sources and a campaign can scale effortlessly, reaching consumers at every corner of the country.
Speaker Change: Such campaign is designed to increase our customers' revenues, while significantly reducing the cost to run and manage the campaign.
Paul Chang: We'd like to thank our shareholders and partners for their ongoing support, and we look forward to keeping you updated on our progress this year.
Speaker Change: We'd like to thank our shareholders and partners for their ongoing support and.
Speaker Change: And we look forward to keeping you updated on our progress this year.
Waleed Kiari: Now let's turn it over to our CFO and COO, Walei Kiari, who will walk us through our financial results from fourth quarter. Thank you, Paul.
Speaker Change: Now, let's turn it over to our CFO and COO.
While lead Chiari, who will walk us through our financial results from fourth quarter.
Thank you Paul I appreciate this opportunity to introduce myself to our audience and shareholders provide a brief financial update and share my perspectives on our M&A strategy and the announced acquisition of <unk> now.
Waleed Kiari: I appreciate this opportunity to introduce myself to our audience and shareholders, provide a brief financial update and share my perspectives on our M&A strategy and the announced acquisition of Catenail. I joined the company in November after a 20-year career in financial markets, including more than 15 years as a technology investment banker, working with software companies in Silicon Valley and across the world. What drew me to Ben is its highly specialized IP portfolio, focused on conversational AI. 20-plus patents issued, with another 20 or so pending, all focused on advancing AI human interaction. This includes innovations in user identification, personalization, image and video processing, human-like interaction, and gesture generation.
Speaker Change: I joined the company in November after a 20 year career in financial markets, including more than 15 years, such accounting investment banker working with software companies in Silicon Valley and across the world.
Speaker Change: What drew me to Ben is it's highly specialized IP portfolio focused on conversational AI.
Speaker Change: 20, plus patents issued with another 20 or so pending all focused on advancing AI human interaction.
Speaker Change: This includes innovations and user identification personalization image and video processing human interaction and gesture generation.
Waleed Kiari: From this IP portfolio, the BAN team has built B2B2C solutions in the form of AI agents that can interact with their audiences in a human-like fashion. These AI agents can help transform consumer engagement and elevate customer experience. Each AI agent is uniquely designed for its specific business environment and use case, ensuring that elements such as voice, tone, cadence and language, and even visual appearance and multimodal applications align seamlessly with a business's identity and goals. Ultimately, our AI agents serve as digital extensions of the brands they represent, aiming to provide businesses with the adaptability and scale to enhance engagement with their audience.
Speaker Change: From this IP portfolio debenture team has built b to B to C solutions in the form of AI agents that can interact with their audiences in a human like fashion.
Speaker Change: <unk> agents can help transform consumer engagement and elevate customer experience. Each AI agent is uniquely designed for specific business environment and use case, ensuring that elements such as voice tone cadence in language and even the visual appearance and multimodal or applications Alliance.
Speaker Change: Seamlessly with the businesses identity Ingalls Ulta.
Speaker Change: Ultimately our AI agents serve digital extensions of the brands they represent aiming to provide businesses with the adaptability and scale to enhance engagement with their audiences.
Waleed Kiari: For Ben, 2024 was about investing in product development and refining our go to market strategy. Q4 saw the company continue to streamline its operations and rationalize its investments. We've continued to invest in our team in Seoul, Korea, which we see as a competitive advantage for Ben. Indeed, Ben has historical roots in Korea, since our AI IP originally came from Korea University, which gives us access to strong local AI talent.
Speaker Change: For 2024, it was about investing in product development and refining our go to market strategy Q.
Speaker Change: Q4 saw the company continue to streamline its operations and rationalize its investments we've continued to invest in our team in Seoul, Korea, which we see as a competitive advantage for Ben.
Speaker Change: It's been a historical roots in Korea since our AIP originally came from Korea University, which gives us.
Speaker Change: Access to strong local AI talent.
Waleed Kiari: A significant financial update at year end was the write off of $13.475 million dollars related to our exclusive reseller agreement in the automotive space pursuant to our termination of that agreement. Let me explain. Ben previously issued shares of common stock to an automotive reseller pursuing to that agreement. The fair value of those shares at the date of issuance was $13.475 million dollars and was deferred on the balance sheet as a customer acquisition cost. That asset was to be accounted for as a reduction in transaction price as the company transfers services to the reseller over the term of the agreement.
Speaker Change: A significant financial update at year end was the write off of $13 $475 million.
Speaker Change: Related to our exclusive reseller agreements in the automotive space pursuant to our termination of that agreement let me explain.
Speaker Change: Ben previously issued shares of common stock to an automotive reseller pursuant to that agreement the share value of those shares at the date of issuance was 13 $4 $75 million.
Speaker Change: And was deferred on the balance sheet as a customer acquisition costs.
Speaker Change: That asset was to be accounted for as a reduction in transaction price as the company transfer services to the reseller over the term of the agreement.
Waleed Kiari: In anticipation of terminating the reseller agreement, we performed an impairment analysis and concluded that the entire asset was impaired, given that there would be no future revenue associated with the reseller agreement upon termination.
Speaker Change: Anticipation of terminating the reseller agreements, we performed an impairment analysis and concluded that the entire assets was impaired given that it would be no future revenue associated with the reseller agreement upon termination.
Waleed Kiari: that's for a major update for Q4.
Speaker Change: That's four.
Speaker Change: A major update for Q4 as it relates to 2025.
Waleed Kiari: As it relates to 2025, it is and will continue to be all about execution.
Speaker Change: It is and will continue to be all about execution.
Waleed Kiari: As it relates to our M&A strategy, we are in the process of acquiring Catenao, a transaction that was announced at the end of Q3. can take time to do things well. To that end, we agreed to an extension with the shareholders of Catenao at the end of January, and I've already made two installment payments, which go against the consideration for the transaction.
Speaker Change: As it relates to our M&A strategy, we are in the process of acquiring <unk> a transaction that was announced at the end of Q3.
Speaker Change: It can take time to do things well to that end, we agreed to an extension with the shareholders of <unk> at the end of January and have already made two installment payments, which go against the consideration for the transaction. We aim to close the acquisition in Q2.
Waleed Kiari: We aim to close the acquisition in Q2.
Waleed Kiari: I would like to take this opportunity to share some perspectives on our M&A strategy and explain how catenail fits into it. Starting with what BEN is. BEN, B-E-N, is an acronym. It stands for Brand Engagement Network. The most important letter of that acronym is. for engagement. Our goal is to become the engagement AI platform, helping companies truly engage with audiences and go beyond simply advertising. and Capnail is a core building block of this strategy. Based in Munich, Germany, with a global footprint, the company's flagship product, Midas, is a software platform which provides a single plate of glass for advertisers, as well as advertising agencies, to schedule, operationalize, and voice ads, as well as manage ad information.
Speaker Change: I would like to take this opportunity to share some perspectives on our M&A strategy and explain how <unk> fits into it.
Speaker Change: Starting with what Ben is been the yen is an acronym stands for brand engagement network.
Speaker Change: Most important letter that acronym.
Speaker Change: For engagement.
Speaker Change: Our goal is to become the engagement AI platform, helping companies truly engage with audiences and go beyond simply advertising to them.
Catherine: Hey, Catherine core building block of this strategy.
Catherine: Based in Munich, Germany, with a global footprint. The Companys flagship product Midas is a software platform, which provides a single pane of glass for advertisers as well as advertising agencies to schedule operationalize and voice.
Catherine: As well as manage AD inventory.
Waleed Kiari: Simply put, we at BEND view Catenail as the ERP software of the ad industry. We believe that Catanau's 20-year-plus tenure and reputation in the advertising industry, matched with Band's dedicated engagement AI capabilities, can become a strong combination for advertisers and ad agencies worldwide to create an engaged connection with their audience.
We have been viewed <unk> as the ERP software of the AD industry.
Catherine: We believe that Kathryn it was a 20 year plus tenure and reputation in the advertising industry match with bench dedicated engagement capabilities can become a strong combination for advertisers and AD agencies worldwide to create and engage connection with their audiences with this first combination been aimed to later.
Waleed Kiari: With this first combination, Ben aims to lay the first digital brick of the new AI advertising tech stack, a stack which we intend to continue building on through both organic product development work, as well as thoughtful acquisition.
Catherine: First digital bridge of the new AI advertising Tech stack stack, which we intend to continue building on through both organic product development work as well as thoughtful acquisitions.
Waleed Kiari: In the field, we've expanded our partnership with Fibro, a Mexican technology firm specialized in audio messaging strategy, and Grupo Siete, a large Mexican media company, to extend our AI-powered engagement solutions to LATAM, Latin America, and Europe. These initiatives highlight AI's transformative role in media and advertising, which align with our long-term vision.
Catherine: In the field, we've expanded our partnership with five ROE and Mexican technology firm specialized in audio messaging strategy and Grupo shifted a large Mexican media company to extend our AI powered engagement solutions to Latam Latin America and Europe.
Catherine: <unk> highlights as transformative role in media and advertising, which aligns with our long term vision.
Waleed Kiari: We look forward to expanding our efforts globally, forging new partnerships and continuing to innovate at the intersection of AI and advertising, and we'll share more updates on our progress during our Q1 call. Thank you.
Catherine: We look forward to expanding our efforts globally forging new partnerships and continuing to innovate at the intersection of AI in advertising and we'll share more updates on our progress during our Q1 call.
Operator: Now I'd like to turn it back over to the operator for Q&A. Thank you. As a reminder, to ask a question, you will need to press star 11 on your telephone. To remove yourself from the queue, you may press star 11 again. Please stand by while we compile the Q&A roster.
Catherine: Thank you now I'd like to turn it back over to the operator for Q&A.
Catherine: Thank you as a reminder to ask a question you will need to press star one one on your telephone to remove yourself from the queue. You May press Star one again, please standby, while we compile the Q&A roster.
Jack van der Aarde: Our first question comes from Jack van der Aarde of Maxson Group. Please go ahead, Jack. Great. Hey, thanks for the update, guys.
Speaker Change: Our first question comes from Jack Vander Rd of Maxim Group. Please go ahead Jack.
Catherine: Alright.
Speaker Change: Thanks for the update guys.
Jack van der Aarde: And welcome to WALL-E. Paul, can you maybe help us understand, just quickly, review some of the, you've had so many pilot programs you guys have announced during the entire course of 2024 and into 2025. Can you touch on some of the prior pilot programs? How many of them are still actively ongoing, or any moving forward towards a formal contract? Maybe, for example, some of the pharmaceutical companies you're working with? Yeah, I guess I'll start there, and I'll ask a few follow-ups.
Catherine: And welcome to all.
Catherine: Paul can you maybe help us understand just quickly.
Catherine: Review some of the <unk>.
<unk> had so many pilot programs you guys have announced during the entire course of 2024.
Catherine: And into 2025 can you touch on some of the.
Catherine: Prior pilot programs.
Catherine: Many of them are still actively ongoing.
Catherine: Or any moving forward towards a formal contract maybe for example, some of the pharmaceutical companies Youre working with.
Catherine: Yes, I guess I'll start there and I'll ask a few follow ups. Thanks.
Paul Chang: Thanks for the question, Jack. And good to hear from you again. Yeah, so I would say majority of the pilot programs, they were indeed contracts, right? They were paid engagements for customers to utilize our AI technology to ensure that it is going to deliver the sort of the promise of Gen AI. And they've been testing it both internally and externally. What's extended essentially the, let's say, the pilot period has been due to, let's say, less than ideal performance of some of the other large language models that companies have been using. As you know, they're, you know, prone to hallucination, providing irrelevant responses.
Speaker Change: Thanks for the question Jack and good to hear from you again, yeah. So I would say majority of the pilot programs.
Speaker Change: They were indeed contracts right they were paid engagements.
Speaker Change: For customers to utilize our AI technology.
Speaker Change: To ensure that it is going to deliver the sort of the promise of Gen AI.
Speaker Change: And they've been testing it both internally and externally.
Speaker Change: Whats extended essentially the let's say the pilot period.
Speaker Change: <unk> has been due to let's say less than ideal performance of some of the other.
Speaker Change: Large language models.
Speaker Change: Companies have been using.
Speaker Change: As you know there.
Speaker Change: <unk> two hallucination.
Speaker Change: Providing.
Speaker Change: Irrelevant responses.
Jack van der Aarde: And I think, frankly, that has made these businesses much more cautious about fully adopting and deploying it into production. However, we are definitely seeing signs that many of those pilot customers are now ready to move forward. So we look forward to supporting them in their initiatives to deploy AI to not just their internal use cases, but to their own external customers. Okay, got it. That's, that's helpful.
Speaker Change: And I think frankly that has.
Speaker Change: May did these businesses much more cautious about.
Speaker Change: Fully adopting and deploying it into production.
Speaker Change: However.
Speaker Change: We are definitely seeing signs that many of those pilot customers are now ready to move forward.
Speaker Change: So we look forward to supporting them.
Speaker Change: There are initiatives to deploy AI too not just.
Speaker Change: There are internal use cases.
Speaker Change: But to their own external customers.
Speaker Change: Okay got it.
Speaker Change: That's helpful.
Jack van der Aarde: And, you know, I guess, just to touch on AFG quickly here. I know that they're there as part of the agreement there. Originally, they were also an investor, with a, I believe, like a six and a half million investment every every first quarter for the, for about four years or so.
Speaker Change: And I guess just to touch on AFG quickly here.
Speaker Change: No.
Speaker Change: As part of the agreement there originally they were also an investor.
Speaker Change: I believe like a $6 5 million investment every every first quarter for the for about four years or so can you talk to us about just kind of what does that mean that we don't have that investor.
Waleed Kiari: Can you talk to us about just kind of, you know, what does that mean that we don't have that investor, or investment? What have you been doing? Or how do you how do you approach the capital structure, I guess, and maybe it's just for wallet as well? In in, I guess, to replace that capital? Or what does this do for your overall, I guess, financing needs and growth investments as well?
Speaker Change: Our investment what have you been doing or how do you. How do you approach to capital structure, I guess and maybe its just for wallet as well.
Speaker Change: I guess to replace that capital or what does this do for your overall I guess financing needs.
Speaker Change: Our growth investments as well thanks.
Waleed Kiari: Sure, and I'll defer to Waleed on that question. Very well. Thank you, Jack.
Speaker Change: Sure and ill defer to a lead on that question.
Very well thank you Jack.
Waleed Kiari: Hi. Very simply, as it relates to the FG lawsuits, I'd rather not comment, given the situation. However, I can tell you that as it relates to funding, we have an S1 on file with the SEC, which is currently going through the typical review process. And so we believe that with our current funding capabilities, plus that S-1, that that would address our funding. Okay, gotcha. I appreciate that.
Speaker Change: Very simply.
Speaker Change: As it relates to DFT balance sheets, I'd, rather not comment.
Speaker Change: Given.
Speaker Change: The situation. However, I can tell you that as it relates to funding we have an S. One on file with the SEC, which is currently going through the typical review process.
Speaker Change: And so we believe that with our current funding capabilities plus status one.
Speaker Change: That would address our financing need.
Speaker Change: Okay got you I appreciate that and then.
Jack van der Aarde: And then, as far as just, I suppose, I don't see any financial statements. When will the 10k and financial statements be available? Unless I'm completely missing that right now. No, no worries. The 10k, Jack, will be available. It has to be published by Monday. And we expected there to be ready either tomorrow or Monday. Okay, great.
Speaker Change: As far as just.
Speaker Change: I suppose I don't see any financial statements had what will the 10-K in financial statements be available unless I'm completely missing that right now no nor is the 10-K Jack will be available. It has to be published by Monday, and we expect it to be there to be ready either tomorrow or Monday at the latest.
Speaker Change: Okay great.
Jack van der Aarde: And then I guess, from from sort of like a general business model, unit economics perspective, Can we revisit kind of the general recurring revenue model of the business or that was in place in terms of like a I think you had three sort of offerings with various you know, startup costs associated with it. And then like on a per user basis is going to be you know, it seems like it was a high margin SAS business model. in their three sort of categories of it. Is that still the case?
Speaker Change: And then I guess.
Speaker Change: From sort of like a <unk>.
Speaker Change: General business model unit economics perspective.
Speaker Change: Can we revisit kind of the general recurring revenue model of the business or that was in place in terms of like a I think you had three sort of offerings with.
Speaker Change: With various startup costs associated with it.
Speaker Change: And then kind of per user basis.
Speaker Change: It's going to be it seems like it was a high margin SaaS business model.
Speaker Change: And there is three sort of categories of it is that still the case or just kind of where are we at with sort of how youre going to market and how youre strategizing and selling.
Jack van der Aarde: Or just kind of where are we at with sort of how you're going to market and how you're strategizing and selling your assistance outside of the Cox motive, but just in general? That'd be helpful. Thanks.
Speaker Change: Your assistance outside of <unk>, but just in general.
Speaker Change: That'd be helpful. Thanks.
Paul Chang: Yeah, I can take that and thanks, Jack. Yeah, so our deployment options, all three are still in play. And I can say that most customers, especially for, you know, POCs or internal pilots, they're going with essentially a SaaS deployment, where we have the entire software stack hosted on our cloud environment. And we provide it to the users in a secure manner. For external pilots, many of our customers are looking at, you know, private cloud environment, right, especially when it comes to managing, you know, consumer data, especially anything healthcare related. They're quite strict guidelines within their organizations to ensure the highest security and privacy.
Speaker Change: I can take that and thanks Jack.
Speaker Change: Yes, so our deployment options all three.
Speaker Change: Still in play and I can say that most customers, especially for <unk>.
Speaker Change: <unk> or internal pilots they are going with essentially a SaaS deployment.
Speaker Change: We had the entire software stack.
Speaker Change: Hosted on our cloud environment, and we've provided to the users in a in a secure manner.
Speaker Change: Four.
Speaker Change: External pilots many of our customers are looking at.
Speaker Change: Private.
Speaker Change: Cloud environment.
Speaker Change: Especially when it comes to <unk>.
Speaker Change: Managing.
Speaker Change: Consumer data, especially anything health care related.
Speaker Change: They are quite strict guidelines within their organizations to ensure the highest security and privacy. So they are looking at private cloud deployment.
Paul Chang: So they are looking at, you know, private cloud deployments.
Paul Chang: However, we've actually seen quite a bit of interest for on-prem deployment from many of our potential customers. There are several reasons for that, right? One is obviously security and privacy, right? Having it in their own four walls. I think that's the most secure deployment model you have. The second is their ability to essentially control the experience to their customers. Having it deployed locally, they could manage sort of the scaling of that. And then obviously the third is the cost aspect. So because of our small footprint of our platform, they recognize that they're able to service a large number of customer engagements with relatively small server boxes.
Speaker Change: However, we've actually seen quite a bit of interest.
Speaker Change: For on Prem deployment from.
Speaker Change: Many of our potential customers there.
Speaker Change: Several reasons for that right one is obviously.
Speaker Change: Security and privacy right, having it in their own.
Speaker Change: Four walls.
Speaker Change: I think Thats us most.
Speaker Change: Most secure.
Speaker Change: Deployment model you had the second is the ability to essentially.
Speaker Change: Control of the experience to their customers.
Speaker Change: Having it.
Speaker Change: Deployed locally.
Speaker Change: Good.
Speaker Change: Manage sort of the scaling of that.
Speaker Change: And then obviously the third is the cost aspect.
Speaker Change: So because of our small footprint of our platform.
Speaker Change: They recognize that they are able to.
Speaker Change: Service large number of.
Speaker Change: Customer engagements.
Speaker Change: With relatively small.
Speaker Change: Server boxes, and I think that's where they see a big advantage being able to deploy things on prem.
Paul Chang: And I think that's where they see a big advantage of being able to deploy things online.
Jack van der Aarde: Okay, great. And then maybe, Paul, just in general, I don't know if you have the exact numbers in front of you, but maybe just help us understand where are we at with like total head count currently? And so just the size of the organization and the opportunities you're going after. How many people are in your sales force? Are you going through a direct sales channel, indirect channel as well? Just give us an update. It's been a little bit, I think, with all the, there's been a lot of moving parts here. So I'd just like to get a sense there.
Speaker Change: Okay, Great and then maybe Paul just in General I don't know if you have the exact numbers in front of you but.
Speaker Change: So maybe just help us understand where are we at with like total head count currently.
Speaker Change: And so just the size of the organization and the opportunities you're going after after.
Speaker Change: How many people are in your sales force or they're going through a direct sales channel indirect channel as well.
Speaker Change: Just give us an update it's been a little bit I think with all the.
Speaker Change: A lot of moving parts here, so I'd, just like to get a sense there.
Paul Chang: Sure. So I would say, you know, we have a relatively focused in-house sales team with deep expertise and connections in certain industries. So we depend on them. However, Jack, as you know, our go-to-market strategy has always been to work with partners who could help us scale. And it's the partners that are doing the heavy lifting in terms of, you know, doing the outreach to their customers, getting engaged with them, educating them. And obviously our sales team gets plugged in once the opportunity progresses to a certain level, but we found that strategy really starting to pay off.
Speaker Change: Sure. So I would say we have a relatively focused.
Speaker Change: In house.
Speaker Change: <unk> team.
Speaker Change: With deep expertise in connections in certain industries. So we depend on them. However, Jack as you know our go to market strategy has always been.
Speaker Change: To work with partners.
Speaker Change: Who could help us scale.
Speaker Change: And it's the partners that are doing the heavy lifting in terms of doing the outreach to their customers getting engaged with them educating them.
Speaker Change: And obviously our sales team is gets plugged in once the opportunity to progresses to certain level, but we found that strategy.
Speaker Change: Really starting to pay off and I think in 2025 that is what youre going to see is the results of the maturing partnership between us and several partners we have.
Jack van der Aarde: And I think in 2025, that is what you're going to see is the results of the maturing partnership between us and several partners we have, and our ability to leverage their size and resources to scale our business. and we hope that in our upcoming earnings calls that we'll be able to highlight some of those specific. Okay, great.
Speaker Change: And our ability to leverage there.
Speaker Change: And resources to scale our business.
Speaker Change: We hope that.
Speaker Change: In our upcoming earnings calls that we'll be able to highlight some of those specific examples.
Speaker Change: Okay, Great and then maybe just maybe just one more question.
Jack van der Aarde: And then maybe just maybe just one more question. Of the verticals you're going after, you've outlined quite a few here that still remain in play, it sounds like. So with automotive, health care, financial services, and I know there's some other opportunities outside of that.
Speaker Change: All of the verticals you are going after you've outlined quite a few here.
Speaker Change: Still remain in play it sounds like so with automotive health care financial services, and then I know there are some other opportunities outside of that.
Paul Chang: What do you see as the biggest near-term opportunities for Ben AI from a revenue ramp perspective in the near term and then longer term? Yeah, I'm happy to take this question, Jack. I would say in addition to the verticals you highlighted in your question, the media and advertising space is one where we really see very, very interesting prospects for us. And as I mentioned, in the field, we've had some good traction from a commercial standpoint. I would say that that's organic, but in addition, I know we're not supposed to talk about acquisitions that haven't closed, but the strength of Capno is really among many things, its products, its people, the talent, the modularity of the software, and ultimately, the quality and size of its customers, all of whom are, most of them, I should say, are in the media space and are very large companies in that space.
Speaker Change: What do you see as the biggest near term opportunities for NII from like a revenue ramp perspective in the near term and then longer term.
Speaker Change: Happy to take discretion, John I would say in addition to the verticals you highlighted in.
Speaker Change: In your question.
Speaker Change: Media and advertising space.
Speaker Change: Is one.
Speaker Change: Where we really see.
Speaker Change: Very very interesting prospects for us and as I mentioned in the field.
Speaker Change: We've had some good traction.
Speaker Change: From a commercial standpoint, I would say that that's organic but in addition.
Speaker Change: I know, we're not supposed to talk about acquisitions that haven't closed, but the strengths of <unk> is really a.
Speaker Change: Among many things its products people talents the modularity of the software and ultimately.
Speaker Change: Quality and size of its customers all of whom are most of them I should say our.
Speaker Change: Media space and are very large companies in that space and so it creates for us the ability to accelerate our growth.
Jack van der Aarde: And so it creates for us the ability to accelerate our growth in the media and advertising space. So I would add that. Not sure we can think of it as a vertical, but we might, and I would add that. Okay, great.
Speaker Change: In the media and advertising space, So I would add that.
Speaker Change: Not sure we can think of it as a vertical but we might and I would add that too.
Speaker Change: Okay, Great and then I said that was my last question, maybe just one more.
Jack van der Aarde: And then, you know, I said that was my last question, maybe just one more.
Waleed Kiari: Well, as you get more acquainted into the business, and you have a little more soaked time, wondering if you're going to be thinking about what are some of the metrics maybe you're looking at or thinking about putting together that you think would be worthwhile tracking and updating as we go here? Yeah, it's a great question. And allow me to adopt an organic perspective and a dynamic perspective in that as the business evolves, these metrics will evolve. And I can't commit to those just yet, it's still a bit early. But as it relates to my philosophy as a CFO, I don't think in terms of spend, I think in terms of investment.
Speaker Change: As you get more <unk>.
Speaker Change: <unk>.
Speaker Change: Into the business.
Speaker Change: Can you.
Speaker Change: Hello, more soak time wondering if youre going to be thinking about what are some of the metrics, maybe youre looking at or thinking about putting together that you think would be worth while tracking and updating as we go here its a.
Speaker Change: Great question.
Speaker Change: Yeah, It's a great question.
Speaker Change: Now me to to adopt an organic perspective, and a dynamic perspective in that as the business evolves. These metrics will evolve.
Speaker Change: And I can't commit to those just yet it's still a bit early.
But.
Speaker Change: It relates to my philosophy as a CFO I don't think in terms of spend I think in terms of investment. So return on investment internally is something that I really care about Eddie every dollar that we spend in euro and the Korean won and as I mentioned Korean won.
Waleed Kiari: So return on investment internally is something that I really care about. Every dollar that we spend in Euro and Korean Won, I mentioned Korean Won, as a way to salute our 30 people in our Korea office who do great work developing our products. All that amount, all these amounts have to be accounted for with an ROI perspective. So I would say, that's for internal purposes, as it relates to outside metrics, you know, to the point that Paul made earlier, some of our sales based on what our customers want, will be on premise. So that'd be kind of traditional software license sales.
Speaker Change: And as a way to distribute our 30 people in our Korea office to do great work developing our products.
Speaker Change: All of that amounts all these amounts have to be accounted for.
Speaker Change: And our ROI perspective, so I would say that.
Speaker Change: For internal purposes, as it relates to outside the metrics.
Speaker Change: To the point that Paul made earlier some ourselves based on what our customers want we will be on premise. So that'd be kind of a traditional software license sales others will want very much of a subscription model. So older metrics typically associated with SaaS.
Waleed Kiari: Others will want very much of a subscription model. So all the metrics typically associated with SaaS, we'll think through items such as retention rates over time, and a whole slew of SaaS metrics that I think are relevant for a software company to highlight. And as I mentioned earlier, dynamic is the name of the game, we'll come up with those KPIs. We have a few that we internally, as the company matures, and we engage with more investors, we integrate companies, and we develop our verticals, we will develop a whole panoply of parameters and metrics and KPIs to manage and to communicate.
Speaker Change: We will seek through items, such as retention rates overtime.
Speaker Change: And a whole slew of SaaS metrics that I think are relevant for software company to highlight and as I mentioned earlier dynamic is the name of the game we will.
Speaker Change: Come up with those Kpis, we have a few that we track internally as the company matures and we engage with more investors.
Speaker Change: We integrate companies and we develop our verticals we will develop.
Speaker Change: We'll panoply of parameters and metrics and kpis to manage and to communicate upon.
Jack van der Aarde: Okay, I appreciate the color there and look forward to watching us execute and learning more I think in May with Q1. Thanks. We can't wait. Thank you very much. Thank you.
Speaker Change: Okay.
Speaker Change: I appreciate the color there.
Speaker Change: Look forward to watching us execute and learning more I think in May with Q1, we.
Speaker Change: We can't wait.
Speaker Change: Thank you very much sir.
Speaker Change: Thank you I would now like to turn the conference back to Paul Cheng for closing remarks, Sir.
Paul Chang: I would now like to turn the conference back to Paul Chang for closing remarks, sir. Yep, thank you. I appreciate everyone for joining our call today.
Paul Cheng: I appreciate everyone for joining our call today.
Paul Chang: As you can hear, we are very excited about 2025 and look forward to sharing our progress in the near future. Thank you.
Speaker Change: As you can hear we are very excited about 2025 and look forward to sharing our progress in the near future. Thank you.
Operator: This concludes today's conference call. Thank you for participating. You may now disconnect.
Speaker Change: This concludes today's conference call. Thank you for participating you may now disconnect.
Speaker Change: Okay.
Speaker Change: [music].
Speaker Change: Okay.