1. BNAI reduced liabilities by $2.5 million in Q4 2025. 2. Debt-to-equity conversions were central to this reduction. 3. The company believes changes strengthen capital structure. 4. Strategic flexibility is enhanced by lower liabilities. 5. Long-term investors converted $1.25 million of debt to equity.
FAQ
Why Bullish?
Debt reduction through equity conversion typically reflects financial health improvements, enhancing investor confidence. Historical cases show that companies that reduce liabilities often see positive stock movement as it indicates improved solvency.
How important is it?
The reduction of liabilities significantly impacts BNAI's financial health, likely attracting investor interest. This shift strengthens investor trust and can motivate buy-side activity in the stock.
Why Short Term?
Liabilities reduction can positively impact stock price quickly as market reacts to financial improvements. Similar past instances reveal market responses within weeks to months following debt restructuring announcements.
WILMINGTON, Del., Dec. 22, 2025 /PRNewswire/ -- Brand Engagement Network, Inc. (NASDAQ:BNAI) ("BEN" or the "Company"), a developer of secure and governed multimodal artificial intelligence solutions for regulated industries, today announced that it reduced outstanding liabilities by approximately $2.5 million during the fourth quarter of 2025 through a series of debt-to-equity conversions, negotiated settlements, and payments.
On December 20, 2025, several long-term investors entered into conversion agreements with the Company, converting an aggregate of $1,250,004 of debt and other liabilities into equity at a conversion price of $2.10 per share. The conversions included $899,934 in loans and $350,070 in short-term liabilities.
As previously announced on December 18, 2025, the Company completed the conversion of $504,684 of affiliate debt into equity at a conversion price of $2.10 per share.
In addition to these debt-to-equity conversions, the Company executed other liability-reduction initiatives during the quarter, including a $250,010 reduction in accounts payable and the satisfaction of vendor-related obligations totaling approximately $487,306.
Collectively, these actions reduced the Company's outstanding liabilities by approximately $2,492,004 during the fourth quarter of 2025. The Company believes these actions further strengthen its capital structure and support long-term operational and strategic flexibility.
Additional information regarding these transactions is included in a Current Report on Form 8-K filed with the U.S. Securities and Exchange Commission.
About Brand Engagement Network, Inc.
Brand Engagement Network, Inc. (BEN) (NASDAQ:BNAI) develops secure, governed multimodal artificial intelligence solutions designed for regulated industries. The Company's technology enables intelligent, compliant engagement across conversational AI, voice, avatar, and digital interfaces, supporting enterprise requirements for trust, governance, and scalability. Visit www.brandengagementnetwork.com.
Forward-Looking Statements
Certain statements in this communication constitute "forward-looking statements" within the meaning of the federal securities laws, including statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements reflect management's current expectations, assumptions, and beliefs regarding future events and are subject to risks, uncertainties, and changes in circumstances that could cause actual results to differ materially from those expressed or implied. Such risks and uncertainties include, but are not limited to, those described in Part I, Item 1A (Risk Factors) of the Company's Annual Report on Form 10-K for the year ended December 31, 2024, and in other filings made by the Company with the Securities and Exchange Commission. Forward-looking statements speak only as of the date made, and the Company undertakes no obligation to update them except as required by law.
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SOURCE Brand Engagement Network, Inc. (BEN)