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Brand Engagement Network Reports Substantial Financial and Operational Progress for 2025

Brand Engagement Network, Inc. (NASDAQ: BNAI), commonly referred to as BEN, recently released its Annual Report on Form 10-K covering the fiscal year ending December 31, 2025. This report highlights a year marked by significant financial enhancements and the establishment of strategic partnerships aimed at bolstering the company's operational footprint.

Financial and Operational Highlights

During 2025, BEN made notable strides in its financial performance, reducing its net loss by approximately $25.1 million, decreasing from $33.7 million in 2024 to a more manageable $8.6 million. This marked improvement can be attributed to disciplined cost management and a reduction in operating expenses, which fell significantly from $36.6 million in the previous year to just $12.9 million.

The operational loss also saw a sharp decrease, improving from $36.5 million to $12.6 million, bolstering the financial health of the company. Notably, the drop in general and administrative expenses by around $10.3 million further contributed to this positive trend. Furthermore, BEN successfully avoided incurring the previous year's $13.5 million impairment related to AFG customer acquisition costs, showcasing its improved financial oversight.

Total liabilities likewise saw a reduction, decreasing from $15.5 million in 2024 to $11.8 million in 2025, an improvement of roughly $3.6 million. This reduction reflects the company’s focus on maintaining a healthy balance sheet to better propel future growth.

Equity financings played a crucial role in strengthening BEN's financial position, with approximately $7.05 million raised through equity in 2025, which included around $5.0 million in the fourth quarter alone. These funds are pivotal for supporting operations and advancing key initiatives, particularly in expanding the company’s activities in Latin America.

Strategic Partnerships and Expansion Initiatives

For 2025 and moving into 2026, BEN advanced several strategic partnerships and initiatives aimed at scaling its operations across various sectors, including healthcare, hospitality, insurance, media, and other international markets. Highlights of these partnerships include:

• - Latin America: An exclusive licensing agreement with Skye Inteligencia LATAM, S.A.P.I. de C.V. to commercialize AI technology.
• - Healthcare in Mexico: Formation of Skye Salud through collaboration with KNOBLOCH Information Group and Skye LATAM.
• - Africa: Partnering with Valio Technologies, focusing on collaboration with Nelson Mandela University.
• - Hospitality and Insurance sectors: Collaborations with Seven Visions Resort Places and a strategic partnership with Swiss Life Global Solutions.
• - Media and Advertising: Engaging reseller activities with Vybroo and Grupo Siete.

These initiatives signify BEN's strategic approach to expanding its reach through well-structured partnerships, particularly in high-growth and regulated markets, positioning the company to capitalize on emerging opportunities. Additionally, BEN has identified the LATAM market as a region ripe for expansion, intending to enhance its market presence and facilitate technology commercialization.

Future Outlook

In the forthcoming year, BEN's operational focus will pivot towards executing these strategic partnerships, fostering enterprise adoption, and driving scalable growth. Tyler Luck, the Chief Executive Officer of BEN, emphasized that the company remains committed to maintaining a robust financial foundation while advancing initiatives that broaden the reach of its technology.

"We improved our balance sheet, reduced liabilities, and advanced initiatives across key markets. We have been disciplined in how we structure these partnerships to support long-term value creation," said Luck. This statement showcases an optimistic outlook as BEN prepares to cultivate its existing partnerships, enhance operational efficiencies, and strive for profitability as it enters 2026.

About Brand Engagement Network, Inc.

Founded with a vision to create secure, enterprise-grade artificial intelligence for the engagement layer of AI, Brand Engagement Network aims to connect organizational data and workflows through conversational AI interactions that support real-world outcomes. Trusted by organizations in complex and regulated environments, BEN is at the forefront of driving AI into practical operational settings. To learn more, visit Brand Engagement Network.