Q2 2025 Brand Engagement Network Inc Earnings Call
Okay.
Operator: Good afternoon and welcome to the Brand Engagement Network Inc. second quarter 2025 earnings conference call. Today's call is being recorded. At this time, all participants are in a listen-only mode. After management's prepared remarks, we will open the call for a question and answer session. Before we begin, please note that during this call, our speakers may make forward-looking statements regarding future results and performance. Please refer to the cautionary language included in BEN's filings with the Securities and Exchange Commission, included in their Form 10-K and 10-Q, for additional information concerning factors that could cause actual results to differ materially from those forward-looking statements. I would now like to turn the call over to Tyler Luck, Acting CEO and Co-Founder of Brand Engagement Network Inc. Tyler, please go ahead.
Good afternoon, and welcome to the brand engagement Network, Inc. Second quarter 2025 earnings Conference call.
<unk> call is being recorded.
At this time all participants are in a listen only mode.
After managements prepared remarks, we will open the call for question and answer session.
Before we begin please note that during this call our speakers may make forward looking statements regarding future results and performance.
Please refer to the cautionary language included in <unk> filings with the Securities and Exchange Commission included in their Form 10-K, and 10-Q for additional information concerning factors that could cause actual results to differ materially from those forward looking statements.
I would now like to turn the call over to Tyler luck acting CEO and cofounder of brand engagement network Tyler. Please go ahead.
Tyler Luck: Thank you, operator, and thank you all for joining us today. I'd like to begin by addressing the timing of this report. While our Q2 10-Q filing was delayed, I want to be clear that this was not the result of negative financial performance. Instead, the delay reflected deliberate decisions to strengthen the company's foundation. First, we focused on reducing ongoing expenses by negotiating with prior and existing vendors to ensure we operate with greater financial discipline. Second, we made positive management changes, including re-engagement with our trusted outside accounting firm that supported us from 2021 to 2024, while continuing with our independent audit firm. These steps required time but were taken to build confidence in our financial processes. I've been with this company since day one. I know our technology, our customers, and our mission. I can tell you that the entrepreneurial spirit at Brand Engagement Network Inc.
Thank you operator, and thank you all for joining us today.
Like to begin by addressing the timing of this report.
While our Q2 10-Q filing was delayed.
Want to be clear that this was not the result of <unk>.
Negative financial performance instead, the delay reflected deliberate decisions to strengthen the company's foundation.
First we focused on reducing ongoing expenses by negotiating with Pryor and existing vendors to ensure we operate with greater financial discipline.
Second we made positive management changes, including re engagement with our trusted outside accounting Sam that supported us from 2021 to 2024, while continuing with an independent audit Sean.
These steps required time that we're taking to build confidence in our financial processes.
I've been with this company since day, one I know technology.
<unk> and our mission.
And I can tell you that the entrepreneurial spirit is alive and strong.
Tyler Luck: is alive and strong. Capital has always been a precious commodity, and we are treating it with the discipline and creativity that investors expect. I'd also like to highlight that our team in Seoul, today, our Korean Innovation Lab is home to more than 30 employees, and I'm incredibly proud of the work that they are doing to drive product innovation and client success. This team embodies the energy, expertise, and commitment that defines Brand Engagement Network Inc. globally. In addition to these foundational efforts, I'm pleased to share some key milestones that underscore our progress in building partnerships and expanding our AI solutions. For instance, we entered a global partnership with Swiss Life, a process that began before our merger in March 2024.
Capital has always been a precious commodity and we're trading at with the discipline and creativity that investors expect.
I'd also like to highlight that our team in South Korea today, How Korean innovation lab is home to more than 30 employees.
And I'm incredibly proud of the work that they are doing to drive product innovation and client success.
This team embodies the energy expertise and commitment that defined then Gregory.
In addition to these foundational assets I'm pleased to share some key milestones that underscore our progress in building partnerships and expanding our AI solutions.
For instance, we entered a global partnership with Swiss life, a process that began before our merger in March 2024. The announcement in April 2025 marked an important milestone and as I can see.
Tyler Luck: The announcement in April 2025 marked an important milestone, and as Acting CEO, I had the opportunity to attend their global conference in London a few weeks ago. It was encouraging to see firsthand the positive feedback from attendees around the world, and we are focused on supporting their partners globally to benefit from the efficiencies of our conversational AI. We've also made strategic inroads in emerging markets, such as our entry into Mexico with a partner just over a year ago, and this decision aligns well with markets that prioritize data sovereignty, allowing us to test and refine our products while positioning us for potential expansion and execution on our current pipeline. In the pharmacy sector, our launch at a conference in Boston a year ago provided valuable market feedback on our AI solutions.
I had the opportunity the opportunity to attend our global conference in London, a few weeks ago.
It was encouraging to see firsthand the positive feedback from attendees around the world and we are focused on supporting their partners globally to benefit from the efficiencies of our conversational AI.
We've also made strategic generated in emerging markets such as entry into Mexico with a partner just over a year ago.
This decision aligns well with markets that prioritize data sovereignty, allowing us to test and refine our products, while positioning us for potential expansion and execution on our current pipeline.
In the pharmacy sector.
Launched at a conference in Boston, a year ago provided valuable market feedback on our AI solutions.
Tyler Luck: We are pleased with the results so far, though, as with any innovation in regulated industries, reviews take time as corporations are rightfully cautious of this new era. These steps are setting a solid foundation for future developments. Looking at verticals like automotive, we see opportunities where AI can help build trusted consumer engagement, a longstanding challenge in the industry. The integrations we've completed to date position us well for initiatives we're planning in the coming quarters. With AI top of mind for many enterprises, it's important to note that brands in regulated sectors approach new technologies with caution to avoid risks from inaccurate engagements. This is where BEN's emphasis on trusted data shines. By focusing on brand-specific data sovereignty rather than broad web data, we enable authentic and reliable consumer interactions. These efforts reflect our commitment to delivering solutions that meet enterprise needs.
We are pleased with the results so far.
Any innovation in regulated industries reviews take time as corporations are rightfully cautious of this new era.
But these steps are setting a solid foundation for future developments.
Looking at verticals like automotive, we see opportunities, where AI can help build trusted consumer engagement, our long standing challenge in the industry.
The integrations were completed today position us well for initiatives, we're planning in the coming quarters.
And finally with AI and top of mind for many enterprises, it's important to note that brands and regulated sectors approach new technologies, the caution to avoid risks from inaccurate engagements.
So this is where bands emphasis on trusted data shines by focusing on brand specific data sovereignty, rather than broad web data, we enable authentic and reliable consumer interactions. These efforts reflect our commitment to delivering solutions that meet enterprise needs.
Tyler Luck: Looking ahead, we've already scheduled our next earnings call on November 4th, 2025, and our annual shareholder meeting on November 26th, 2025. We see this as the start of a new chapter for BEN, one that's built on transparency, accountability, and growth. With that, let me turn the call over to our CFO and COO, Walid Khiari, who will walk you through our financial performance.
And looking ahead, we have already scheduled our next earnings call on November four 2025, and our annual shareholder meeting on November 26 2025.
We see this as the start of a new chapter for Ben one that's built on transparency accountability and glass.
And with that let me turn the call over to our CFO.
While the Chiara, who will walk you through our financial performance.
Walid Khiari: Thank you, Tyler, and good afternoon, everyone. Our Q2 results demonstrate significant progress in stabilizing operations as well as strengthening our financial position. By reducing expenses by over 55%, we've gained greater flexibility to execute our strategy and accelerate growth initiatives in regulated industries. Looking ahead, we're shifting our focus towards driving revenue growth, supported by a stronger foundation and the operational capacity to launch new customers more rapidly across our target verticals. As for financial highlights, I'll mention a few. Revenue, we did $5,000 of revenue in Q2 compared to none in Q2 of last year, 2024, which reflects early traction in some of our conversational AI solutions. As far as operating expenses go, they've decreased, as I mentioned, by 55.6% to $2.8 million for the quarter, down from $6.3 million in the same quarter of 2024, which was driven by streamlined operations and strategic cost optimization.
Thank you Tyler and good afternoon, everyone. Our Q2 results demonstrate significant progress in stabilizing operations as well as strengthening our financial position by.
By reducing expenses by over 55%, we have gained greater flexibility to execute our strategy and accelerate growth initiatives in regulated industries. Looking ahead, we're shifting our focus towards driving revenue growth supported by a stronger foundation and the operational capacity to launch new customers more rapidly across our.
Target verticals.
For financial highlights I'll mention a few revenue.
It's $5000 of revenue in Q2 compared to none in Q2 of last year 2024, which reflects early traction in some of our conversation AI solutions.
As far as operating expenses go deep decrease as I mentioned by 55, 6% to $2 8 million for the quarter down from $6 3 million in the same quarter of 2024, which was driven by streamline operations and strategic cost optimization as for other income plus $3 7 million primarily from.
Walid Khiari: As for other income, plus $3.7 million, primarily from a gain on debt extinguishment of $4 million, which was partially offset by changes in the fair value of warrants. Net income, about $900,000 in Q2 of this year compared to a net loss of $3 million in Q2 of 2024. Our stockholders' equity increased 126% to $5.9 million from $2.6 million at the year-end 2024, which reflects improved financial health. A detailed summary of BEN's recorded financial results is included in the company's Form 10-Q for the quarter which ended June 30, 2025, which we filed with the SEC. With that, I'll hand it back to the operator to begin our Q&A session.
A gain on debt extinguishment of $40 million, which was partially offset by changes in the fair value of warrants.
Net income.
$900000 in Q2, this year compared to a net loss of $3 million in Q2 of 2024 and our stockholders.
<unk> equity increased to 126% to $549 million from $2 6 million at the year end 2024, which reflects improved financial health the <unk>.
Detailed summary of <unk> recorded financial results is included in the company's Form 10-Q for the quarter, which ended June 32025 of which were filed with the SEC and with that I'll hand, it back to the operator to begin our Q&A session.
Operator: Thank you, Walid. We will now begin the question and answer session. At this time, if you would like to ask a question, press star, then the number one on your telephone keypad. To withdraw your question, simply press star one again. We will pause for just a moment to compile the Q&A roster. Your first question comes from the line of Jack Benderog with Maximum Group. Please go ahead.
Thank you Walid we will now begin the question and answer session.
At this time, if you would like to ask a question Press Star then the number one on your telephone keypad.
To withdraw your question simply press Star one again.
We will pause for just a moment to compile the Q&A roster.
Your first question comes from the line of Jack Vander <unk> with Maxim Group. Please go ahead.
[Analyst]: Hey, guys. Good afternoon. Thanks for taking my questions. Tyler, welcome to the CEO role. I don't believe we've spoken last quarter. We'd love to get your thoughts on what you're planning to focus on and if there's any changes on the horizon. Just talk about your management style and what you're focused on. Thanks.
Hey, guys. Good afternoon, thanks for taking my questions.
And Tyler welcome welcome to the CEO role I don't believe we've spoken.
Last quarter, So would love to get your just kind of thoughts on.
Whats Youre planning to focus on and if theres any changes on the horizon.
Talk about your management style and whats Youre focused on thanks.
Tyler Luck: Hi, Jack. Nice to meet you. Yeah, we haven't met before. I think it's an exciting time to be leading Brand Engagement Network Inc. I would say my focus is really on three core priorities, the first being execution and discipline, making sure we're delivering against the commitments we've made to our customers and partners and certainly our shareholders. I believe we have built a strong foundation, and now it's about consistent, reliable delivery. Secondly, I'd say the commercial acceleration, kind of translating the momentum we're seeing into scalable revenue, that's super important. That means really tightening our go-to-market motion, deepening customer relationships, and I'd say expanding our footprint in the verticals that we're already winning. Third, being also the Chief Product Officer, I think it's super important for our focus on product leadership.
Hi, John.
Nice to meet you, yes, we had a net four.
So I think.
It's an exciting time to be leading.
And I would say my guess is.
Really on three core priorities, the first being execution and discipline, making sure we're delivering against commitments, we've made to our customers and partners.
And certainly our shareholders.
I believe we have built a strong foundation and now it's.
Consistent reliable delivery.
And secondly.
I would say the commercial acceleration kind of translating the momentum we're seeing into scalable revenue that's super important.
That means really tightening our go to market motion deepening.
Customer relationships.
I would say expanding our footprint and the verticals that we're already winning.
And.
Third.
Dean the also the chief product officer.
I think it's super important.
For our focus on product leadership, so we're continuing to push the boundaries of responsible reliable AI engagement.
Tyler Luck: Continuing to push the boundaries of responsible, reliable AI engagement is key. Brand Engagement Network Inc.'s technology has the potential to redefine how people really interact with brands. You know we intend to lead that shift. In short, it's about clarity, focus, and forward motion, just really ensuring that Brand Engagement Network Inc. not only grows but grows with a purpose.
And then technology.
Has the potential to redefine how people really interact with brands and.
Yeah.
We intend to lead that shift so in short.
It's about.
Clarity focus and forward motion, just really ensuring that been not only grows by <unk> with the purpose.
[Analyst]: Okay, great. I appreciate that. Maybe just to follow up, something that was kind of a major ongoing development was the pending acquisition of Cataneo GmbH. Obviously, I know that that was terminated. Could you just touch on what happened there, or are you still working with them on other opportunities, maybe not M&A related, but just other business verticals and opportunities? Also, can you just touch on the media space maybe in general and how that fits into your focus going forward in terms of verticals? Thanks.
Okay, Great I appreciate that.
And maybe just a follow up something that was kind of a major ongoing development was the pending acquisition of cat now obviously.
I know that that was terminated and just maybe can you just touch on what happened there or are you still working with them on other opportunities maybe not M&A related but just other business.
Verticals and opportunities and then also is the media just Keith can you just touch on the media space, maybe in general and how that fits into your.
Your focus going forward in terms of verticals. Thanks.
Walid Khiari: Hi, Jack. This is Wade. Good to hear from you. To answer your question, yes, we're continuing to work with the team at Cataneo GmbH. We still think that, you know, our partnership is strong. In effect, we've been working in the field together for quite some time now, and there's been good momentum among our customers as well as potential customers. We see that continuing. I had mentioned in past calls that the advertising side of the business, which is related to media, is a very important pillar of this business going forward alongside automotive, healthcare, and financials. We see that continuing. The media space evolves probably the fastest. I think Tyler alluded to earlier the fact that some of the regulated industries, by definition, and rightfully so, as Tyler mentioned, move much slower. This is one that moves very, very fast.
Hi, Jack this is really good to hear from you.
To your question, Yes, we're continuing to work with the team with Jeff now.
We still face that our partnership is strong and.
In fact, we've been working in the field together for quite some time now and that's just the good momentum.
Our customers as well as potential customers. So we see that continuing I had mentioned in past calls.
The advertising side of the business, which is related to media is a very important pillar of this business going forward alongside automotive healthcare financials, and we see that continuing.
The media space evolves, probably the fastest I think Tyler alluded to earlier, the fact that some of the regulated industries by definition and rightfully. So as Tyler mentioned move much slower. This is one that moves very very fast and so being nimble through a combination of.
Walid Khiari: Being nimble through a combination of buy-build-partner approach, I think, is going to be critical. There will be M&A, but there will always be both partnership opportunities in that space on an ad hoc basis, as well as aligning with our general strategy to kind of keep rejuvenating the stack, dedicated the technical stack, dedicated to the advertising space around AI. Of course, under Tyler's leadership, continuing on the build side of the strategy by continuing to build our product, which have a common foundation but find different use cases across industry verticals.
By build partner approach I think is going to be critical there will be M&A, but they will always be.
Both partnership opportunities in that space on the on an AD hoc basis as well as aligning with our general strategy too.
Keith.
Rejuvenating the stock dedicated technical stack.
Dedicated to the advertising space around AI.
And of course under Tom's leadership, continuing on the build side of the strategy by continuing to build a product.
Which.
A common foundation, but sharing.
Different use cases across <unk>.
Industry verticals.
[Analyst]: Excellent. Okay. I appreciate that, Walid. Maybe a follow-up too for you. The $5,000 revenue that came in the quarter, I'm not sure if this is not that I'm trying to parse that necessarily, but I would be curious to know, was this a pilot program, and was it a series of customers? Just maybe walk me through that. What do you expect going forward in terms of are there more revenue pickups like this one, or is this a one-time development? Thanks.
Excellent Okay I appreciate that.
Maybe a follow up too for you.
The $5000 revenue.
That came in the quarter I'm not sure. If this is not that I'm trying to parse that necessarily but I would be curious to know is this was this a pilot program and it was at a series of customers.
Maybe walk me through that and then what do you expect to kind of going forward in terms of.
Are there more more revenue pickups.
This one or is this a one time.
Development. Thanks.
Walid Khiari: Tyler, do you want to take that one?
Tyler do you want to take down.
Tyler Luck: Yeah. The $5,000 relates to a pilot program for a client we are working with in Armenia relating to hospitality, customer service in the hotel sector. We expect this to be recurring.
Yes, so the 5000.
Rates to a pilot program.
Yeah.
For a client we are working with and Armenia relating to.
Yes.
Hospitality customer service and the hotel.
Sector.
<unk>.
We expect this to be.
Recurring Sir.
[Analyst]: Excellent. Okay. Great. I appreciate that. Maybe just a follow-up too. All of the pilot programs you guys did, you guys have had in the past over the last few years, a lot of them sound pretty promising, and they've been ongoing for a while. Maybe just to get a quick update on anything in the pharmaceutical healthcare space. Are these past pilot programs and collaborations still ongoing, or when do you determine if you're moving forward and what to focus on? There are quite a number of these, and I'm not sure how you're tackling it anymore. Just an update on any of the prior pilots, just so we have a sense of where we're headed.
Excellent Okay, great and I appreciate that and then just maybe a follow up to just all of the pilot programs. You guys did you guys have had in the past over the last few years.
A lot of them sound pretty promising and had been ongoing for a while maybe just get a quick update on.
Anything in the pharmaceutical health care space are these.
Fast.
Pilot programs and collaborations are they still ongoing or is.
I guess when do you determine if youre moving forward and what to focus on because there is quite there was quite a number of these I'm not sure how how you're tackling it anymore. So just an update on any of the prior pilots.
So we have a sense of where we're headed.
Yes.
Tyler Luck: I would say all of our pilots are moving forward. I think initially, when we started to take them on, we were really more perhaps in the generative AI space. Naturally, as any business comes to ask, what is the ROI on this? That's when we've started to move more into the agentic AI, or at least a combination. Every AI pilot that we are building and deploying needs to have measurable impact. The next phase, which most, if not all, that are progressing, is really about converting these pilots into scalable recurring relationships. We're moving in that direction with momentum. I'd say we expect to share more detailed results of those programs formalized into commercial agreements in the near future, ideally.
I'd say all of our pilots are moving forward I.
I think initially when we started to take them on we were really more perhaps in the generators AI space and.
Naturally as any business.
Okay.
To ask what is the ROI on this and so that's why we have started to move more into the <unk> AI or at least a combination.
Sorry.
AI pilot that we are building and deploying needs to have.
Measurable impact and so really the next phase.
<unk>.
Most if not all that are progressing is really about converting these pilots into.
Scalable recurring relationships and we're.
We're moving in that direction with momentum.
<unk>.
I'd say, we expect to share more detailed results as those programs formalizing two commercial agreements in the near future ideally.
[Analyst]: Okay. Fantastic. I appreciate the color, guys. I'll hop back in the queue. Thank you.
Okay Fantastic well I appreciate the color guys I'll hop back in the queue. Thank you.
Tyler Luck: Thanks, Jack.
Thanks Scott.
Operator: That concludes the Q&A session. I will now turn the call back over to Tyler Luck for closing remarks.
That concludes the Q&A session I will now turn the call back over to Tyler luck for closing remarks.
Okay.
Tyler Luck: Thanks, operator. To close, I want to emphasize once again that BEN is really regaining its entrepreneurial momentum. We are disciplined, focused, and committed to creating value for our shareholders through strategic partnerships, market expansions, and innovative AI solutions. We look forward to updating you again on our upcoming November 4, 2025, earnings call for Q3 results. We invite you to join us at our annual shareholders' meeting scheduled for November 26, 2025. Thank you, everyone, for your time and continued support.
Thanks, operator, it's close I want to emphasize once again that Dennis really regaining its entrepreneurial momentum we are disciplined focused and committed to creating value for our shareholders.
Strategic partnerships market expansions and innovative AI solutions.
We look forward to updating you again on our upcoming November 4th earnings call for Q3 results.
And we invite you to join US at our annual shareholders meeting scheduled for November 26 2025.
Thank you everyone for your time and continued support.
Thank you that wraps up today's call transcripts of this call will be posted on <unk> Investor Relations website. We appreciate your interest in the brand engagement.
Operator: Thank you. That wraps up today's call. Transcripts of this call will be posted on BEN's investor relations website. We appreciate your interest in Brand Engagement Network Inc.
Network, Inc.
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