Brand Engagement Network Inc. (formerly Blockchain Exchange Network Inc.) reported significant financial developments in its latest 10-Q filing for the period ending September 30, 2024. The company, which focuses on AI-driven solutions, completed a business combination with DHC Acquisition Corp. on March 14, 2024, and has since been navigating a challenging financial landscape.

For the three months ended September 30, 2024, Brand Engagement Network generated revenues of $50,000, a notable increase from $0 in the same period of 2023. However, total operating expenses surged to $5.3 million, up from $2.6 million year-over-year, leading to a loss from operations of $5.3 million compared to a loss of $2.6 million in the prior year. The net loss for the quarter was $5.8 million, reflecting an increase of $3.2 million from the previous year’s loss of $2.6 million.

For the nine months ended September 30, 2024, revenues totaled $99,790, compared to no revenues for the same period in 2023. Operating expenses for this period reached $18.5 million, a significant rise from $8.3 million in 2023, resulting in a loss from operations of $18.4 million, compared to $8.3 million in the prior year. The net loss for the nine months was $15.8 million, an increase of $7.4 million from the $8.3 million loss reported in 2023.

The company’s total assets increased to $31.9 million as of September 30, 2024, up from $22.0 million at the end of 2023. However, current liabilities rose sharply to $13.0 million from $3.1 million, contributing to a total liabilities increase to $14.2 million from $4.3 million. The accumulated deficit also widened to $29.1 million from $13.3 million at the end of 2023.

Strategically, the company has been active in raising capital, securing $10.3 million from financing activities in the nine months ended September 30, 2024, compared to $4.7 million in the same period of 2023. This included proceeds from the issuance of common stock and warrants. The company has also entered into a Standby Equity Purchase Agreement (SEPA) with Yorkville, allowing it to sell up to $50 million of its common stock over the next 36 months.

In terms of personnel changes, Paul Chang was appointed as the new CEO on August 16, 2024, following the resignation of Michael Zacharski. The company is also facing challenges related to its internal controls and has acknowledged material weaknesses in its financial reporting processes.

Looking ahead, Brand Engagement Network anticipates continued operating losses and negative cash flows, necessitating further capital raises to support its operations and product development initiatives.