Brand Engagement Network Inc.

Good afternoon, and welcome to the Brand Engagement Network, Inc.' 's 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 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. Tyler, please go ahead.

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 TANQ 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. And I can tell you that the entrepreneurial spirit at Bend 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, Korea. 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 them 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. 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. 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. 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, a longstanding challenge in the industry. The integrations we've completed today position us well for initiatives we're planning in the coming quarters. And finally, with AI top of mind for many enterprises, it's important to note that brands and regulated sectors approach new technologies with caution to avoid risks from inaccurate engagements. So 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. And looking ahead, we've already scheduled our next earnings call on November 4, 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 growth. And with that, let me turn the call over to our CFO and CEO, Waleed Kiari, who will walk you through our financial performance.

Thank you, Tyler, and good afternoon, everyone. Our Q2 results demonstrate significant progress in stabilizing operations as well as strengthening our financial positions. 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 conversation 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. 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 warrants. Net income, about $900,000 in Q2 of this year compared to a net loss of $3 million in Q2 of 2024. And our stockholders' equity increased 126% to $5.9 million from $2.6 million at the year-end of 2024, which reflects improved financial health. A detailed summary of Ben's recorded financial results is included in the company's form thank you for the quarter, which ended June 30th, 2025, which we filed with the SEC. And with that, I'll hand it back to the operator to begin our Q&A session.