Beneficient Files 2024 Annual Report on Form 10-K

Ticker: BENFW · Form: 10-K · Filed: Jul 9, 2024 · CIK: 1775734

Sentiment: neutral

Topics: annual-report, sec-filing, company-information

Related Tickers: BENF, BENFW

TL;DR

BENF filed its 10-K for FY24, all good on reporting reqs.

AI Summary

Beneficient, a company incorporated in Nevada, filed its annual report for the fiscal year ended March 31, 2024. The company's Class A common stock trades under the symbol BENF and its warrants under BENFW on the Nasdaq Stock Market LLC. The filing indicates that Beneficient has met its reporting requirements for the past 12 months and the last 90 days.

Why It Matters

This filing provides investors with a comprehensive overview of Beneficient's financial performance and operational status for the fiscal year, crucial for investment decisions.

Risk Assessment

Risk Level: low — The filing is a standard annual report and does not contain immediate red flags or significant negative disclosures.

Key Players & Entities

FAQ

What is Beneficient's primary business activity?

The provided text does not specify Beneficient's primary business activity, only its corporate structure and stock information.

What were Beneficient's total revenues for the fiscal year ended March 31, 2024?

The provided text is an excerpt from the cover page of the 10-K and does not contain financial figures such as total revenues.

Did Beneficient experience any significant legal or regulatory issues during the fiscal year?

The provided text does not mention any specific legal or regulatory issues; it only confirms that Beneficient has met its filing requirements.

What is the par value of Beneficient's Class A common stock?

The par value of Beneficient's Class A common stock is $0.001 per share.

Are there any pending acquisitions or mergers mentioned in this filing excerpt?

This excerpt from the 10-K filing does not mention any pending acquisitions or mergers.

Filing Stats: 4,519 words · 18 min read · ~15 pages · Grade level 16.6 · Accepted 2024-07-09 17:23:11

Key Financial Figures

Filing Documents

Business

Business 1 Item 1A.

Risk Factors

Risk Factors 32 Item 1B. Unresolved Staff Comments 85 I tem 1C. C ybersecurity 85 Item 2.

Properties

Properties 86 Item 3.

Legal Proceedings

Legal Proceedings 87 Item 4. Mine Safety Disclosures 90 PART II. Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 91 Item 6. [Reserved] 92 Item 7.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 92 Item 7A.

Quantitative and Qualitative Disclosures about Market Risk

Quantitative and Qualitative Disclosures about Market Risk 134 Item 8. Consolidated Financial Statements and Supplementary Data F- 1 Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 138 Item 9A.

Controls and Procedures

Controls and Procedures 138 Item 9B. Other Information 139 Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 139 PART III. Item 10. Directors, Executive Officers, and Corporate Governance 140 Item 11.

Executive Compensation

Executive Compensation 148 Item 12.

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 167 Item 13. Certain Relationships and Related Transactions, and Director Independence 171 Item 14. Principal Accounting Fees and Services 193 PART IV. Item 15. Exhibits and Financial Statement Schedules 195 Item 16. Form 10-K Summary 202

SIGNATURES

SIGNATURES 203 i EXPLANATORY NOTE The number of outstanding units, weighted average number of outstanding units, loss per common unit, equity-based compensation and other financial amounts previously expressed on the basis of common units have been retroactively restated on the basis of Common Stock (as defined below) to reflect the conversion of the BCG (as defined below) common units to Common Stock. This "Explanatory Note" details the series of transactions necessitating the retroactive restatement. For further information, see Note 4, De-SPAC Merger Transaction, to the consolidated financial statements included in Item 8 of Part II of this Annual Report on Form 10-K for a discussion of the conversion of certain BCG equity instruments to Common Stock. On June 6, 2023, the registrant converted from a Delaware limited partnership called The Beneficient Company Group, L.P. ("BCG") to a Nevada corporation called "Beneficient" (the "Conversion") in connection with the closing of its merger with Avalon Acquisition Inc. (such transaction, the "Business Combination"), a special purpose acquisition vehicle and a Delaware corporation. References to "BCG," "Ben," "we," "us," "our," the "Company" and similar terms, prior to the effective time of the Conversion, refer to the registrant when it was a Delaware limited partnership and such references following the effective time of the Conversion, refer to the registrant in its current corporate form as a Nevada corporation called "Beneficient." On June 6, 2023, immediately prior to the Conversion, BCG was recapitalized (the "BCG Recapitalization") as follows: (i) the limited partnership agreement of BCG was amended to create one new subclass of BCG common units, the Class B Common Units (the "BCG Class B Common Units"), and the existing common units were renamed the Class A Common Units (the "BCG Class A Common Units"); and (ii) certain holders of the Preferred Series A Subclass 1 Unit Accounts of Beneficient Company Ho

— BUSINESS

ITEM 1 — BUSINESS Overview We are a technology-enabled financial services holding company that provides simple, rapid, and cost-effective liquidity solutions and related trustee, custody and trust administrative services to participants in the alternative asset industry. Through our business line operating subsidiaries (each a "Ben Business Unit" and collectively, the "Ben Business Units"), Ben Liquidity, Ben Custody, and Ben Markets, we seek to provide solutions in the alternative asset investment market for individual and institutional investors, general partners and sponsors ("GPs") and the alternative asset funds they manage ("Customers"). Following receipt of regulatory approval, our Ben Business Units are expected to include an additional business line, Ben Insurance Services. Through Ben Liquidity, we finance liquidity and primary capital transactions for our Customers through our subsidiary, Beneficient Fiduciary Financial, L.L.C. ("BFF"), a Kansas trust company regulated by the Office of the State Banking Commission ("OSBC") and operated as a Technology-Enabled Fiduciary Financial Institution ("TEFFI"), under the Kansas Technology-Enabled Fiduciary Financial Institutions Act (the "TEFFI Act") using a proprietary trust structure that we implement for our Customers (we refer to such trusts collectively as the "Customer ExAlt Trusts"). Through Ben Custody, we offer an extensive line of trustee and custody services, alternative asset trust administration, and data management services to the trustees of the Customer ExAlt Trusts and other Customers through BFF, and other of our subsidiaries. Through Ben Markets, we provide broker-dealer services through our subsidiary, AltAccess Securities Company, L.P. ("AltAccess Securities"), a Financial Industry Regulatory Authority ("FINRA") member and Securities and Exchange Commission ("SEC") registered broker-dealer, and transfer agent services through our subsidiary, Beneficient Transfer and Clearing Company, L.L.C.

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