10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2024

or

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from _____ to _____

Commission File Number: 001-41715

Beneficient

(Exact name of registrant as specified in its charter)

Nevada	72-1573705
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

325 North St. Paul Street, Suite 4850

Dallas, TX 75201

(Address of principal executive offices, including zip code)

(214) 445-4700

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Class A common stock, par value $0.001 per share	BENF	Nasdaq Stock Market LLC
Warrants, each whole warrant exercisable for one share of Class A common stock, par value $0.001 per share, and one share of Series A convertible preferred stock, par value $0.001 per share	BENFW	Nasdaq Stock Market LLC

Securities registered pursuant to section 12(g) of the Act: None.

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. ☒ Yes ☐ No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). ☒ Yes ☐ No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☐	Accelerated filer	☐
Non-accelerated filer	☒	Smaller reporting company	☒
		Emerging growth company	☒

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). ☐ Yes ☒ No

As of November 8, 2024, Beneficient had 4,841,350 shares of Class A common stock outstanding and 239,256 shares of Class B common stock outstanding.

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 1 of Part I of this Quarterly Report on Form 10-Q 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 Holdings, L.P. (“BCH” and such units, the “BCH Preferred A.1 Unit Accounts”) entered into conversion and exchange agreements (the “BCG Conversion and Exchange Agreements”) with BCG and BCH, pursuant to which they converted certain BCH Preferred A.1 Unit Accounts to Class S Ordinary Units of BCH (“BCH Class S Ordinary Units”), which were then contributed to BCG in exchange for BCG Class A Common Units.

Prior to the Conversion, the Company’s outstanding equity interests consisted of common units, one series of preferred units, and noncontrolling interests. Pursuant to the Conversion, each BCG Class A Common Unit converted into 1.25 shares of Class A common stock, par value $0.001 per share (“Class A common stock”), each BCG Class B Common Unit converted into 1.25 shares of Class B common stock, par value $0.001 per share (“Class B common stock” and together with the Class A common stock, the “Common Stock”), and the capital account balance of the Preferred Series B Subclass 2 Unit Accounts of BCG (“BCG Preferred B.2 Unit Accounts”) converted into shares of Class A common stock at a rate based on a 20% discount to the $800.00 valuation of the Class A common stock (or $640.00). As a result, in the Conversion, we issued 1,076,462 shares of Class A common stock with respect to the BCG Class A Common Units, 239,256 shares of Class B common stock with respect to the BCG Class B Common Units and 1,175,632 shares of Class A common stock with respect to the BCG Preferred B.2 Unit Accounts.

In order to maintain its listing on The Nasdaq Stock Market, LLC (“Nasdaq”), the Company effected a reverse stock split of its Common Stock at a ratio of eighty (80) to one (1) and a simultaneous proportionate reduction in the authorized shares of each class of Common Stock as required by Nevada Revised Statues (“NRS”) Section 78.207 (the “Reverse Stock Split”). The Company’s Class A common stock commenced trading on a post-reverse stock split basis at market open on April 18, 2024. Proportional adjustments were made to the number of shares of Common Stock issuable upon exercise or conversion of the Company’s equity award, warrants, and other equity instruments convertible into common stock, as well as the applicable exercise price. All share and per share amounts of our Common Stock presented in this Quarterly Report on Form 10-Q have been retroactively adjusted to reflect the Reverse Stock Split.

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

This Quarterly Report on Form 10-Q includes forward-looking statements as defined under U.S. federal securities laws. Forward-looking statements include all statements that are not historical statements of fact and statements regarding, but not limited to, our expectations, hopes, beliefs, intentions, or strategies regarding the future. In addition, any statements that refer to projections, forecasts, or other characterizations of future events or circumstances, including any underlying assumptions, are forward-looking statements. The words “anticipate,” “believe,” “could,” “estimate,” “expect,” “intend,” “may,” “might,” “plan,” “possible,” “potential,” “predict,” “will,” “would,” and similar expressions may identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking. Forward-looking statements are predictions, projections and other statements about future events that are based on current expectations and assumptions and, as a result, are subject to significant risks and uncertainties. Forward-looking statements speak only as of the date they are made. Readers are cautioned not to put undue reliance on forward-looking statements, and we assume no obligation and do not intend to update or revise these forward-looking statements, whether as a result of new information, future events, or otherwise.

i

Summary of Risk Factors

The following is a summary of the principal risks that could adversely affect our business, financial condition, and results of operations:

•we do not have a significant operating history or an established customer base;

•our fair value estimates of illiquid assets may not accurately estimate prices obtained at the time we enter into any liquidity transaction, and we cannot provide assurance that the values of the alternative assets underlying the liquidity transactions that we report from time to time will be realized;

•our failure to meet the continued listing requirements of Nasdaq could result in our Class A common stock being delisted from Nasdaq;

•the resulting market price of our Class A common stock following the Reverse Stock Split may not attract new investors, and it is not certain that the Reverse Stock Split will result in a sustained proportionate increase in the market price of our Class A common stock;

•the transfer of GWG Holdings Inc.’s (“GWG Holdings” or “GWG”) assets to the GWG Wind Down Trust and the Litigation Trust (each as defined herein) pursuant to the Second Amended Plan (as defined herein) could create significant uncertainties and risks for our continued operations and materially and adversely impact our financial operating results;

•future resales of Class A common stock may cause the market price of Class A common stock to drop significantly;

•the market price for Class A common stock may be subject to substantial fluctuations, which may make it difficult for stockholders to sell shares at the volumes, prices, and times desired;

•the GWG Wind Down Trust historically owned a substantial percentage of the Company and held voting power with respect to those matters on which our stockholders have the right to vote (as last reported on Schedule 13D filed by the GWG Wind Down Trust on October 8, 2024, the GWG Wind Down Trust owns less than 8% of our Class A common stock);

•we may be adversely affected by negative publicity;

•we have been involved in a now-terminated SEC investigation and may be subject to other regulatory investigations and proceedings;

•a determination that we are an unregistered investment company would have serious adverse consequences;

•the Company is currently involved in legal proceedings and government investigations and may be a party to additional claims and litigation in the future;

•our liquidity, profitability and business may be adversely affected by concentrations of assets, which are collateralized by a portion of the cash flows from the exchanged alternative assets (the “Collateral”);

•we engage in related party transactions, which may result in conflicts of interest involving our senior management;

•Brad K. Heppner, our founder and CEO, may have financial interests that conflict with the interests of Beneficient and its stockholders;

•usage of our Class A common stock or securities convertible into Class A common stock as consideration for the Customer ExAlt Trusts’ (as defined herein) investments in alternative assets may create significant volatility in our investment income and the price of our Class A common stock;

•our current inability to raise sufficient capital, recurring losses from operations, negative cash flows from operations, and delays in executing our business plans raises substantial doubt regarding our ability to continue as a going concern. If we are unable to obtain sufficient additional funding, or do not have access to capital, we may be required to terminate or significantly curtail our operations;

•our liquidity, profitability and business may be adversely affected by an inability to access, or ability to access only on unfavorable terms, the capital markets, and we may never obtain the maximum anticipated proceeds contemplated under the current capital raising agreements such as the SEPA (as defined herein);

•the due diligence process that we undertake in connection with any liquidity transaction may or may not reveal all facts that may be relevant in connection with such liquidity transaction;

•poor performance of our Collateral would cause a decline in our revenue, income and cash flow and could adversely affect our ability to raise capital for future liquidity transactions;

ii

•we historically had a substantial amount of goodwill and intangible assets, which we have been, and may in the future be, required to write down the value of our intangible assets and goodwill due to impairment;

•we are subject to repayment risk in connection with our liquidity transactions;

•transfer restrictions applicable to alternative assets may prevent us from being able to attract a sufficient number of Customers (as defined herein) to achieve our business goals;

•our operations, products and services may be negatively impacted by changes in economic and market conditions;

•shares of Class A common stock and Series A and Series B preferred stock issued by Beneficient are structurally subordinated to interests in BCH, a subsidiary of Beneficient;

•allocations of write downs in the value of our intangible assets and goodwill due to impairment will result in a decrease in the capital account balance of the Class A Units of BCH (the “BCH Class A Units”) indirectly held by the Company;

•we are or will become subject to comprehensive governmental regulation and supervision;

•we may incur fines, penalties and other negative consequences from regulatory violations;

•we may be impacted adversely by claims or litigation, including claims or litigation relating to our fiduciary responsibilities;

•if we are unable to protect our intellectual property rights, our business could be negatively affected;

•Beneficient’s board of directors (the “Board”) and management have significant control over Beneficient’s business;

•we may issue additional shares of authorized Common Stock or preferred stock without stockholder approval subject to the applicable rules of Nasdaq and Nevada law, which would dilute existing stockholder interests;

•the holders of Class B common stock have the right to elect a majority of the Board and the ability to vote with Class A common stock in director elections for the remaining directors, with each share of Class B common stock having 10 votes per share;

•the Company may engage in transactions that represent a conflict of interest, with the review of such transactions subject to the Nevada statutory business judgment rule; and

•other risks, uncertainties and factors set forth in the “Risk Factors” section in the Company’s Annual Report on Form 10-K filed with the U.S. Securities and Exchange Commission (“SEC”) on July 9, 2024 (“Annual Report”) and in the “Management’s Discussion and Analysis” and “Risk Factors” sections of this Quarterly Report on Form 10-Q, as well as those described from time to time in our future reports filed with the SEC.

The foregoing factors should not be construed as exhaustive and should be read together with the other cautionary statements included in the Annual Report or in this Quarterly Report on Form 10-Q. If one or more events related to these or other risks or uncertainties materialize, or if our underlying assumptions prove to be incorrect, actual results may differ materially from what we anticipate. Many of the important factors that will determine these results are beyond our ability to control or predict. Accordingly, you should not place undue reliance on any such forward-looking statements. Any forward-looking statement speaks only as of the date on which it is made, and, except as otherwise required by law, we do not undertake any obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise. New factors emerge from time to time, and it is not possible for us to predict which will arise. In addition, we cannot assess the impact of each factor on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements.

iii

BENEFICIENT

Form 10-Q

For the Quarter Ended September 30, 2024

Table of Contents

		Page No.
PART I. FINANCIAL INFORMATION
Item 1.	Financial Statements
	Consolidated Statements of Financial Condition	1
	Consolidated Statements of Comprehensive Income (Loss)	2
	Consolidated Statements of Changes in Equity (Deficit)	3
	Consolidated Statements of Cash Flows	7
	Notes to Consolidated Financial Statements	8
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	65
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	111
Item 4.	Controls and Procedures	111
PART II. OTHER INFORMATION
Item 1.	Legal Proceedings	112
Item 1A.	Risk Factors	112
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	117
Item 3.	Defaults Upon Senior Securities	118
Item 4.	Mine Safety Disclosures	118
Item 5.	Other Information	118
Item 6.	Exhibits	120
Signatures		122

iv

PART I. FINANCIAL INFORMATION

Item 1 — Financial Statements

BENEFICIENT

CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

	September 30, 2024		March 31, 2024
(Dollars and shares in thousands)	(unaudited)
ASSETS
Cash and cash equivalents	$	4,482	$	7,913
Restricted cash	314		64
Investments, at fair value:
Investments held by Customer ExAlt Trusts (related party of $20 and $552)	334,987		329,113
Investments held by Ben (related party of nil and $6)	—		6
Other assets, net	15,991		14,699
Intangible assets	3,100		3,100
Goodwill	9,914		13,606
Total assets	$	368,788	$	368,501
LIABILITIES, TEMPORARY EQUITY, AND EQUITY (DEFICIT)
Accounts payable and accrued expenses (related party of $13,921 and $14,143)	$	112,494	$	157,157
Other liabilities (related party of $14,306 and $9,740)	19,123		31,727
Warrants liability	784		178
Convertible debt	1,936		—
Debt due to related parties	122,117		120,505
Total liabilities	256,454		309,567
Redeemable noncontrolling interests
Preferred Series A Subclass 0 Redeemable Unit Accounts, nonunitized	125,526		251,052
Total temporary equity	125,526		251,052
Shareholder’s equity (deficit):
Preferred stock, par value $0.001 per share, 250,000 shares authorized
Series A preferred stock, 0 and 0 shares issued and outstanding as of September 30, 2024 and March 31, 2024	—		—
Series B preferred stock, 227 and 227 shares issued and outstanding as of September 30, 2024 and March 31, 2024	—		—
Class A common stock, par value $0.001 per share, 18,750 shares authorized, 4,580 and 3,348 shares issued as of September 30, 2024 and March 31, 2024, respectively, and 4,573 and 3,339 shares outstanding as of September 30, 2024 and March 31, 2024, respectively	5		3
Class B convertible common stock, par value $0.001 per share, 250 shares authorized, 239 and 239 shares issued and outstanding as of September 30, 2024 and March 31, 2024	—		—
Additional paid-in capital	1,836,492		1,848,068
Accumulated deficit	(1,998,633)		(2,059,214)
Stock receivable	—		(20,038)
Treasury stock, at cost (9 shares as of September 30, 2024 and March 31, 2024)	(3,444)		(3,444)
Accumulated other comprehensive income	281		276
Noncontrolling interests	152,107		42,231
Total equity (deficit)	(13,192)		(192,118)
Total liabilities, temporary equity, and equity (deficit)	$	368,788	$	368,501

See accompanying notes to consolidated financial statements.

1

BENEFICIENT

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(UNAUDITED)

	Three Months Ended September 30,				Six Months Ended September 30,
(Dollars in thousands, except per share amounts)	2024		2023		2024		2023
Revenues
Investment income (loss), net	$	8,541	$	(13)	$	19,569	$	487
Loss on financial instruments, net (related party of $(173), $(41,960), $(538) and $(45,526), respectively)	(179)		(42,775)		(1,362)		(46,236)
Interest and dividend income	12		114		24		230
Trust services and administration revenues (related party of $8, $8, $15 and $15, respectively)	187		(87)		376		15
Total revenues	8,561		(42,761)		18,607		(45,504)
Operating expenses
Employee compensation and benefits	7,135		15,398		10,985		51,221
Interest expense (related party of $3,135, $2,093, $6,189 and $2,825, respectively)	4,320		5,114		8,608		8,898
Professional services	7,257		6,657		12,801		17,030
Provision for credit losses	476		—		1,000		—
Loss on impairment of goodwill	298		306,684		3,692		1,402,989
Release of loss contingency related to arbitration award	—		—		(54,973)		—
Other expenses (related party of $694, $2,105, $1,388 and $4,221, respectively)	2,790		5,150		5,871		12,092
Total operating expenses	22,276		339,003		(12,016)		1,492,230
Operating income (loss)	(13,715)		(381,764)		30,623		(1,537,734)
(Gain) loss on liability resolution	(23,462)		—		(23,462)		—
Net income (loss) before income taxes	9,747		(381,764)		54,085		(1,537,734)
Income tax expense	—		—		28		—
Net income (loss)	9,747		(381,764)		54,057		(1,537,734)
Plus: Net loss attributable to noncontrolling interests - Customer ExAlt Trusts	4,523		3,592		5,049		17,458
Plus: Net loss attributable to noncontrolling interests - Ben	3,067		10,604		10,254		41,290
Less: Noncontrolling interest guaranteed payment	(4,423)		(4,167)		(8,779)		(8,272)
Net income (loss) attributable to Beneficient common shareholders	$	12,914	$	(371,735)	$	60,581	$	(1,487,258)
Other comprehensive income (loss):
Unrealized (loss) gain on investments in available-for-sale debt securities	26		(105)		5		4,185
Total comprehensive income (loss)	12,940		(371,840)		60,586		(1,483,073)
Less: comprehensive (loss) gain attributable to noncontrolling interests	26		(105)		5		4,185
Total comprehensive income (loss) attributable to Beneficient	$	12,914	$	(371,735)	$	60,581	$	(1,487,258)
Net income (loss) per common share
Class A - basic	$	2.98	$	(115.95)	$	14.58	$	(521.17)
Class B - basic	$	2.69	$	(113.50)	$	14.80	$	(454.08)
Net income (loss) per common share
Class A - diluted	$	0.03	$	(115.95)	$	0.18	$	(521.17)
Class B - diluted	$	0.03	$	(113.50)	$	0.18	$	(454.08)

See accompanying notes to consolidated financial statements.

2

BENEFICIENT

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (DEFICIT)

(UNAUDITED)

For the three months ended September 30, 2024 and 2023:

	Series A preferred stock			Series B preferred stock			Class A common stock			Class B common stock			APIC		Accumulated Deficit		Stock Receivable		Treasury Stock		Accumulated Other Comprehensive Income (Loss)		Noncontrolling interests (Note 10)		Total equity		Redeemable noncontrolling interests
(Dollars and units in thousands)	Shares	Amount		Shares	Amount		Shares	Amount		Shares	Amount
Balance, June 30, 2024	—	$	—	227	$	—	4,006	$	4	239	$	—	$	1,852,187	$	(2,011,547)	$	(20,038)	$	(3,444)	$	255	$	34,293	$	(148,290)	$	251,052
Net income (loss)	—	—		—	—		—	—		—	—		—		12,914		—		—		—		(7,590)		5,324		4,423
Noncontrolling interest reclass	—	—		—	—		—	—		—	—		—		—		—		—		—		(122)		(122)		—
Recognition of share-based compensation cost	—	—		—	—		—	—		—	—		3,364		—		—		—		—		—		3,364		—
Unrealized gain on available-for-sale debt securities	—	—		—	—		—	—		—	—		—		—		—		—		26		—		26		—
Preferred A.0 Unit Accounts guaranteed payment accrual	—	—		—	—		—	—		—	—		—		—		—		—		—		—		—		(4,423)
Issuance of Class A common stock to settle liabilities	—	—		—	—		211	—		—	—		307		—		—		—		—		—		307		—
Issuance of Class A common stock	—	—		—	—		363	1		—	—		672		—		—		—		—		—		673		—
Termination of prepaid forward purchase agreement	—	—		—	—		—	—		—	—		(20,038)		—		20,038		—		—		—		—		—
Reclass of BCH Preferred A.0 from temporary to permanent equity	—	—		—	—		—	—		—	—		—		—		—		—		—		125,526		125,526		(125,526)
Balance, September 30, 2024	—	$	—	227	$	—	4,580	$	5	239	$	—	$	1,836,492	$	(1,998,633)	$	—	$	(3,444)	$	281	$	152,107	$	(13,192)	$	125,526

See accompanying notes to consolidated financial statements.

3

BENEFICIENT

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (DEFICIT) (cont’d)

(UNAUDITED)

	Series A preferred stock			Series B preferred stock			Class A common stock			Class B common stock			APIC		Accumulated Deficit		Stock Receivable		Treasury Stock		Accumulated Other Comprehensive Income (Loss)		Noncontrolling interests (Note 10)		Total equity		Redeemable noncontrolling interests
(Dollars and units in thousands)	Shares	Amount		Shares	Amount		Shares	Amount		Shares	Amount
Balance, June 30, 2023	—	$	—	—	$	—	2,376	$	2	239	$	—	$	1,583,248	$	(1,079,091)	$	(20,038)	$	(3,444)	$	14,190	$	786,080	$	1,280,947	$	251,052
Net income (loss)	—	—		—	—		—	—		—	—		—		(371,735)		—		—		—		(14,196)		(385,931)		4,167
Recognition of share-based compensation cost	—	—		—	—		—	—		—	—		8,503		—		—		—		—		—		8,503		—
Payment of employee payroll taxes on restricted equity units	—	—		—	—		—	—		—	—		(32)		—		—		—		—		—		(32)		—
Issuance of shares in connection with recent financings	—	—		—	—		36	—		—	—		6,603		—		—		—		—		(3,193)		3,410		—
Reclass of distributions payable to noncontrolling interest holder	—	—		—	—		—	—		—	—		—		—		—		—		—		(238)		(238)		—
Conversion of Preferred Series C to Class A common stock	—	—		—	—		550	—		—	—		205,759		—		—		—		—		(205,759)		—		—
Reclassification of realized gain upon transfer from available-for-sale debt security to equity interest	—	—		—	—		—	—		—	—		—		—		—		—		(13,694)		—		(13,694)		—
Settlement of restricted stock units	—	—		—	—		68	—		—	—		—		—		—		—		—		—		—		—
Issuance of Series B-1 preferred stock in connection with recent financings	—	—		3,769	4		—	—		—	—		36,703		—		—		—		—		942		37,649		—
Adjustment to liability assumed at de-SPAC	—	—		—	—		—	—		—	—		500		—		—		—		—		—		500		—
Issuance of shares to settle liability assumed at de-SPAC	—	—		—	—		6	—		—	—		1,250		—		—		—		—		—		1,250		—
Unrealized gain on available-for-sale debt securities	—	—		—	—		—	—		—	—		—		—		—		—		(105)		—		(105)		—
Preferred Series A.0 Unit Accounts guaranteed payment accrual	—	—		—	—		—	—		—	—		—		—		—		—		—		—		—		(4,167)
Balance, September 30, 2023	—	$	—	3,769	$	4	3,036	$	2	239	$	—	$	1,842,534	$	(1,450,826)	$	(20,038)	$	(3,444)	$	391	$	563,636	$	932,259	$	251,052

See accompanying notes to consolidated financial statements.

4

BENEFICIENT

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (DEFICIT) (cont’d)

(UNAUDITED)

For the six months ended September 30, 2024 and 2023:

	Series A preferred stock			Series B-1 preferred stock			Class A common stock			Class B common stock			APIC		Accumulated Deficit		Stock Receivable		Treasury Stock		Accumulated Other Comprehensive Income (Loss)		Noncontrolling interests (Note 10)		Total equity		Redeemable noncontrolling interests
(Dollars and units in thousands)	Shares	Amount		Shares	Amount		Shares	Amount		Shares	Amount
Balance, March 31, 2024	—	$	—	227	$	—	3,348	$	3	239	$	—	$	1,848,068	$	(2,059,214)	$	(20,038)	$	(3,444)	$	276	$	42,231	$	(192,118)	$	251,052
Net income (loss)	—	—		—	—		—	—		—	—		—		60,581		—		—		—		(15,303)		45,278		8,779
Noncontrolling interest reclass	—	—		—	—		—	—		—	—		—		—		—		—		—		(347)		(347)		—
Recognition of share-based compensation cost	—	—		—	—		—	—		—	—		4,358		—		—		—		—		—		4,358		—
Issuance of shares in connection with equity purchase agreement	—	—		—	—		449	1		—	—		2,554		—		—		—		—		—		2,555		—
Unrealized gain on available-for-sale debt securities	—	—		—	—		—	—		—	—		—		—		—		—		5		—		5		—
Preferred A.0 guaranteed payment accrual	—	—		—	—		—	—		—	—		—		—		—		—		—		—		—		(8,779)
Issuance of common shares to settle liability	—	—		—	—		340	—		—	—		1,221		—		—		—		—		—		1,221		—
Issuance of Class A common stock	—	—		—	—		363	1		—	—		672		—		—		—		—		—		673		—
Rounding adjustment in connection with reverse stock split	—	—		—	—		80	—		—	—		—		—		—		—		—		—		—		—
Equity issuance costs reclassed to APIC	—	—		—	—		—	—		—	—		(343)		—		—		—		—		—		(343)		—
Termination of prepaid forward purchase agreement	—	—		—	—		—	—		—	—		(20,038)		—		20,038		—		—		—		—		—
Reclass of BCH Preferred A.0 from temporary to permanent equity	—	—		—	—		—	—		—	—		—		—		—		—		—		125,526		125,526		(125,526)
Balance, September 30, 2024	—	$	—	227	$	—	4,580	$	5	239	$	—	$	1,836,492	$	(1,998,633)	$	—	$	(3,444)	$	281	$	152,107	$	(13,192)	$	125,526

See accompanying notes to consolidated financial statements.

5

BENEFICIENT

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (DEFICIT) (cont’d)

(UNAUDITED)

	Series A preferred stock			Series B preferred stock			Class A common stock			Class B common stock			APIC		Accumulated Deficit		Stock Receivable		Treasury Stock		Accumulated Other Comprehensive Income		Noncontrolling interests (Note 10)		Total equity		Redeemable noncontrolling interests
(Dollars and units in thousands)	Shares	Amount		Shares	Amount		Shares	Amount		Shares	Amount
Balance, March 31, 2023	—	$	—	—	$	—	2,252	$	2	239	$	—	$	1,579,742	$	—	$	—	$	(3,444)	$	9,900	$	142,213	$	1,728,413	$	950,493
Net income (loss)	—	—		—	—		—	—		—	—		(36,432)		(1,450,826)		—		—		—		(58,748)		(1,546,006)		8,272
Recognition of share-based compensation cost	—	—		—	—		—	—		—	—		35,504		—		—		—		—		—		35,504		—
Payment of employee payroll taxes on restricted equity units	—	—		—	—		—	—		—	—		(116)		—		—		—		—		—		(116)		—
Issuance of common and preferred shares upon closing of de-SPAC transaction, net of issuance costs	2,749	3		—	—		100	—		—	—		(4,293)		—		—		—		—		—		(4,290)		—
Conversion of Series A preferred to Class A common	(2,749)	(3)		—	—		9	—		—	—		3		—		—		—		—		—		—		—
Issuance of shares in connection with recent financings	—	—		—	—		43	—		—	—		11,756		—		—		—		—		(3,060)		8,696		—
Reclass of distributions payable to noncontrolling interest holder	—	—		—	—		—	—		—	—		—		—		—		—		—		(567)		(567)		—
Conversion of Class S Ordinary to Class A common	—	—		—	—		5	—		—	—		3,884		—		—		—		—		(3,884)		—		—
Non-cash dividend to related party	—	—		—	—		—	—		—	—		(110)		—		—		—		—		—		(110)		—
Share-based awards to related party employees	—	—		—	—		—	—		—	—		110		—		—		—		—		—		110		—
Conversion of Preferred Series C to Class A common stock	—	—		—	—		550	—		—	—		205,759		—		—		—		—		(205,759)		—		—
Unrealized gain on available-for-sale debt securities	—	—		—	—		—	—		—	—		—		—		—		—		4,185		—		4,185		—
Deemed dividend for BCG Preferred B.2 Unit Accounts preferred return	—	—		—	—		—	—		—	—		6,942		—		—		—		—		(6,942)		—		—
Reclassification of realized gain upon transfer from available-for-sale debt security to equity interest	—	—		—	—		—	—		—	—		—		—		—		—		(13,694)		—		(13,694)		—
Settlement of restricted stock units	—	—		—	—		68	—		—	—		—		—		—		—		—		—		—		—
Issuance of Series B-1 preferred stock in connection with recent financings	—	—		3,769	4		—	—		—	—		36,703		—		—		—		—		942		37,649		—
Redemption of BCG Preferred B.2 Unit Accounts	—	—		—	—		—	—		—	—		(1,413)		—		—		—		—		—		(1,413)		—
Preferred Series A.0 Unit Accounts guaranteed payment accrual	—	—		—	—		—	—		—	—		—		—		—		—		—		—		—		(8,272)
Issuance of shares to settle liability assumed at de-SPAC	—	—		—	—		9	—		—	—		3,995		—		—		—		—		—		3,995		—
Adjustment to liability assumed at de-SPAC	—	—		—	—		—	—		—	—		500		—		—		—		—		—		500		—
Stock receivable on prepaid forward purchase	—	—		—	—		—	—		—	—		—		—		(20,038)		—		—		—		(20,038)		—
Reclass of BCH Preferred A.1 from temporary to permanent equity	—	—		—	—		—	—		—	—		—		—		—		—		—		699,441		699,441		(699,441)
Balance, September 30, 2023	—	$	—	3,769	$	4	3,036	$	2	239	$	—	$	1,842,534	$	(1,450,826)	$	(20,038)	$	(3,444)	$	391	$	563,636	$	932,259	$	251,052

See accompanying notes to consolidated financial statements.

6

BENEFICIENT

CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED)

	Six Months Ended September 30,
(Dollars in thousands)	2024		2023
Cash flows from operating activities:
Net income (loss)	$	54,057	$	(1,537,734)
Adjustments to reconcile net income (loss) to net cash used in operating activities:
Depreciation and amortization	805		1,922
Net amortization of debt premium and discount (related party of $99 and $(1,835))	99		(1,355)
Loss on impairment of goodwill	3,692		1,402,989
Loss on financial instruments, net (related party of $(538) and $(45,526))	1,362		46,236
Investment income, net	(19,569)		(487)
Non cash interest expense (related party of $4,622 and $4,763)	6,584		10,272
Non cash interest income	—		(220)
Non cash share-based compensation	4,358		35,504
Provision for credit losses	1,000		—
Release of loss contingency related to arbitration award	(54,973)		—
(Gain) loss on liability resolution	(23,462)		—
Changes in assets and liabilities:
Changes in other assets	168		(987)
Changes in accounts payable and accrued expenses	6,710		16,591
Changes in other liabilities and deferred revenue	(90)		(87)
Net cash used in operating activities	(19,259)		(27,356)
Cash flows from investing activities:
Return of investments in alternative assets held by Customer ExAlt Trusts	12,547		26,256
Purchase of investments in alternative assets held by Customer ExAlt Trusts	(450)		(529)
Purchase of premises and equipment	(933)		(955)
Proceeds from sale of put options by Ben	—		968
Net cash provided by investing activities	11,164		25,740
Cash flows from financing activities:
Proceeds from related party debt financings	1,675		—
Payments on related party debt financings	(200)		—
Proceeds from issuance of convertible debt	1,775		—
Payments on Customer ExAlt Trust loan payable	—		(5,556)
Redemption of Preferred Series B Subclass 2 Unit Accounts	—		(1,413)
Proceeds received from issuance of Class A common shares under equity purchase agreement	2,555		—
Payment of deferred financing costs for equity	(1,564)		(3,153)
Proceeds from sale of Class A common shares	673		—
Payment of employee income taxes on restricted equity units	—		(116)
Proceeds from de-SPAC merger	—		24,761
Payment for prepaid forward purchase agreement	—		(20,038)
Net cash provided by (used in) financing activities	4,914		(5,515)
Net decrease in cash, cash equivalents, and restricted cash	(3,181)		(7,131)
Cash, cash equivalents, and restricted cash at beginning of period	7,977		9,545
Cash, cash equivalents, and restricted cash at end of period	$	4,796	$	2,414

Refer to Note 18 for supplemental cash flow disclosures, including reconciliation of cash, cash equivalents, and restricted cash used in the consolidated statement of cash flows.

See accompanying notes to consolidated financial statements.

7

BENEFICIENT

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

1.    Overview of the Business

Legal Structure

Beneficient, a Nevada corporation, is a technology-enabled financial services holding company (including its subsidiaries, but excluding its noncontrolling interest holders, collectively, “Ben,” “our,” “the Company,” or “we”) that provides simple, rapid, cost-effective liquidity solutions and trust products and services to participants in the alternative assets industry through its end-to-end online platform, Ben AltAccess (as defined below). Prior to the conversion described below, Beneficient Management, L.L.C. (“Ben Management”), a Delaware limited liability company, was Ben’s general partner and Ben was controlled by, and the exclusive and complete authority to manage the operations and affairs of Ben was granted to, Ben Management’s Board of Directors.

On June 6, 2023, the Company converted from a Delaware limited partnership to a Nevada corporation and changed its corporate name from “The Beneficient Company Group, L.P.” (“BCG”) to “Beneficient” (the “Conversion”). BCG, formerly known as Highland Consolidated Business Holdings, L.P., was formed on September 16, 2003. On June 6, 2023, following the BCG Recapitalization (as defined in Note 2) and the Conversion, the Company, as the sole member of Beneficient Company Group, L.L.C. (“Ben LLC”), adopted the First Amended and Restated Limited Liability Company Agreement of Ben LLC (the “Ben LLC A&R LLCA”). The Ben LLC A&R LLCA establishes managing member interests and non-managing members interests, referred to as the Class A Units of Ben LLC. Beneficient is designated as the sole managing member. In addition, certain additional amendments were made that principally focused on the management of Ben LLC by the managing member. After the adoption of the Ben LLC A&R LLCA, Beneficient contributed to Ben LLC all of the limited partnership interests and general partnership interests of Beneficient Company Holdings, L.P. (“BCH”) held by Beneficient (the “Contribution”), and Ben LLC became the general partner of BCH and the holder of 100% of the outstanding Class A Units of BCH.

On June 7, 2023, in accordance with the Business Combination Agreement, dated September 21, 2022 and amended April 18, 2023, with Avalon Acquisition, Inc. (“Avalon”), (the “Business Combination Agreement,” and the transactions contemplated thereby, collectively, the “Business Combination”), the Company completed its previously announced de-SPAC merger transaction (the “Transaction”) with Avalon. On June 8, 2023, Beneficient began trading on the Nasdaq Global Market. See Note 4 for additional disclosures related to the Conversion and Transaction.

BCH is a Delaware limited partnership formed on July 1, 2010. BCH is primarily a holding company that directly or indirectly receives all active and passive income of the Company and allocates that income among the partnership interests issued by BCH. As of September 30, 2024, BCH has issued and outstanding general partnership Subclass 1 Class A Units (“BCH Class A Units”), Class S Ordinary Units of BCH (the “BCH Class S Ordinary Units”), Class S Preferred Units of BCH (the “BCH Class S Preferred Units”), FLP Unit Accounts (Subclass 1, Subclass 2, and Subclass 3), Preferred Series A Subclass 0 Unit Accounts (“BCH Preferred A.0”), and Preferred Series A Subclass 1 Unit Accounts (“BCH Preferred A.1”).

Business Overview

Ben markets an array of liquidity solutions and related trustee, custody and trust administration services to participants in the alternative asset industry, with a focus on mid-to-high net worth (“MHNW”) individual investors (generally those with a net worth of $5.0 million to $30.0 million), small-to-midsize institutional (“STMI”) investors, family offices (“FAMOs”) and fund general partners and sponsors (“GPs” and together with MHNW individuals, STMI investors and FAMOs, “Customers”). Ben provides Customers seeking an early exit from their alternative asset investments a suite of bespoke liquidity solutions for their otherwise illiquid alternative asset investments through a proprietary financing and trust structure, which we implement for our customers (we refer to such trusts collectively as the “Customer ExAlt Trusts”). We plan to offer comprehensive alternative asset trust and custody services, and novel insurance products covering risks attendant to owning, managing and transferring alternative assets, and additional broker-dealer services in connection with our liquidity products and services.

Ben’s primary operations, which commenced on September 1, 2017, relate to its liquidity and trust administration products and services. Ben offers or plans to offer its products and services through its operating subsidiaries, which include: (i) Ben AltAccess, L.L.C., a Delaware limited liability company (“Ben AltAccess”), which offers an online platform designed to provide a digital experience for Customers seeking liquidity, custody, trust and data services for their alternative assets, (ii) Ben Liquidity, L.L.C., a Delaware limited liability company, and its subsidiaries (collectively, “Ben Liquidity”), which offers liquidity products, (iii) Ben Custody, L.L.C., a Delaware limited liability company, and its subsidiaries (collectively, “Ben Custody”), which provides services for private fund, trustee, and trust administration, (iv) Ben Data, L.L.C., a Delaware

8

limited liability company (“Ben Data”), which provides data analytics and evaluation services, (v) Ben Markets L.L.C., including its subsidiaries (“Ben Markets”), was recently launched and intends to provide broker-dealer services and transfer agency services in connection with offering Ben’s products and services, and (vi) Ben Insurance, L.L.C., including its subsidiaries (“Ben Insurance Services”), which intends to offer insurance products and services covering risks attendant to owning, managing and transferring alternative assets. Ben serves as trustee of certain of the Customer ExAlt Trusts, which operate for the benefit of the Charities (defined below) and Economic Growth Zones (defined below).

Ben Liquidity offers simple, rapid and cost-effective liquidity products to its Customers through the use of the Customer ExAlt Trusts, which facilitate the exchange of a Customer’s alternative assets for consideration using a proprietary financing and trust structure (such structure and related process, the “ExAlt PlanTM”). In ExAlt PlanTM financings, a subsidiary of Ben Liquidity, Beneficient Fiduciary Financial, L.L.C. (“BFF”), a Kansas based trust company that provides fiduciary financing to fidfin trusts, makes fiduciary loans (each, an “ExAlt Loan”) to certain of the Customer ExAlt Trusts, which in turn employ a portion of the loan proceeds to acquire and deliver agreed upon consideration to the Customer, in exchange for their alternative assets. BFF is registered as a chartered Kansas Technology Enabled Fiduciary Financial Institution (“TEFFI”) under the Technology-Enabled Fiduciary Financial Institution Act (the “TEFFI Act”) and regulated by the Kansas Office of the State Bank Commissioner (“OSBC”). Only BFF, our subsidiary, is regulated by the OSBC. The OSBC does not regulate the entirety of Ben. Ben Liquidity generates interest and fee income earned in connection with the ExAlt Loans, which are collateralized by a portion of the cash flows from the exchanged alternative assets, then owned by Customer ExAlt Trusts (the “Collateral”). The ExAlt Loans are eliminated upon consolidation of the Customer ExAlt Trusts solely for financial reporting purposes.

Under the applicable trust and other agreements, certain Texas and Kansas charities are the ultimate beneficiaries of the Customer ExAlt Trusts (which we refer to as “Charities” or “Economic Growth Zones” respectively, and collectively, the “Charitable Beneficiaries”), and their interests are reported as noncontrolling interests in our consolidated financial statements. The TEFFI Act requires that two and a half percent (2.5%) of the cash distributions from alternative assets serving as collateral to Ben Liquidity loans be charitably contributed by certain of the Customer ExAlt Trusts to a designated Kansas Economic Growth Zone. Accordingly, for ExAlt Loans originated on or after December 7, 2021, Economic Growth Zones are paid $0.025 for every $1.00 received by an ExAlt Trust from the corresponding alternative assets. For ExAlt Loans originated prior to December 7, 2021, in accordance with the terms of the applicable trust and other agreements, the Charitable Beneficiaries of the Customer ExAlt Trusts formed prior to such date, are paid $0.05 for every $0.95 paid to the applicable ExAlt Loan lender.

Ben Custody currently provides full-service trust and custody administration services to the trustees (including BFF) of certain of the Customer ExAlt Trusts, which own the exchanged alternative assets following liquidity transactions in exchange for fees payable quarterly.

The Customer ExAlt Trusts’ earnings on its alternative assets supports the repayment of the ExAlt Loans plus any related interest and fees. Since Ben consolidates the Customer ExAlt Trusts, Ben Liquidity’s ExAlt Loans and related interest and fee income and provision for credit losses and Ben Custody’s fee income are eliminated in the presentation of our consolidated financial statements solely for financial reporting purposes; however, such amounts directly impact the allocation of income (loss) to Ben’s or BCH’s equity holders. Likewise, the amounts expensed by the Customer ExAlt Trusts for interest and fees owed to Ben’s operating subsidiaries are eliminated in the presentation of our consolidated financial statements, but are recognized for purposes of the allocation of income (loss) to the beneficial owners of the Customer ExAlt Trusts. Refer to Note 3 for additional information.

Ben’s existing and planned products and services are designed to be delivered digitally and provide liquidity, trust and custody solutions, data analytics and news, support the tax and estate planning objectives of its Customers, facilitate asset diversification and provide administrative management and reporting solutions tailored to the goals of investors of alternative investments. While Ben’s financial products and services are presently offered through Ben Liquidity and Ben Custody, Ben plans to expand its capabilities under Ben Custody and provide additional products and services through Ben Insurance Services and Ben Markets in the future. Ben Insurance Services, through two subsidiaries, PEN Indemnity Insurance Company, Ltd. (“PEN”), which has been chartered as a Bermuda based insurance company, and Beneficient Insurance Company, L.L.C. (“BIC”), an entity through which the Company has applied to become a Kansas captive property and casualty insurer, plans to offer to affiliated Customer ExAlt Trusts certain customized insurance products and services covering risks relating to owning, managing and transferring alternative assets. Ben Markets, through one of its subsidiaries, Ben Markets Management Holdings, L.P., received regulatory approval to acquire, and subsequently acquired, a captive registered broker-dealer, Beneficient Securities Company, L.P., an entity that will conduct its activities attendant to offering a suite of products and services from the Ben family of companies. Ben Markets, through another of its subsidiaries, Beneficient Transfer & Clearing Company, L.L.C., also received regulatory approval from the SEC on June 24, 2022 to operate as a registered transfer agent with respect to its securities, and intends to provide various services for customers transacting with Ben, including the Customer ExAlt Trusts.

9

As discussed further in Note 3, certain of our operating subsidiary products and services involve or are offered to certain of the Customer ExAlt Trusts, which are consolidated subsidiaries of Ben solely for financial reporting purposes, and therefore transactions between our operating subsidiaries and the Customer ExAlt Trusts are eliminated in the presentation of our consolidated financial statements.

Liquidity and Going Concern

As of September 30, 2024, we had unrestricted cash and cash equivalents of $4.5 million. Besides the unrestricted cash and cash equivalents, the Company’s principal sources of liquidity available to meet its contractual obligations are proceeds on ExAlt Loan payments and fee income derived from distributions on investments held by the Customer ExAlt Trusts and potential access to capital under the Standby Equity Purchase Agreement (the “SEPA”) with YA II PN, Ltd. (“Yorkville”), however, our ability to access the cash distributions from the Customer ExAlt Trusts’ alternative asset portfolio is limited by the terms of the ExAlt Loans from Ben Liquidity to the Customer ExAlt Trusts and our ability to access proceeds from SEPA is subject to market conditions, such as trading volume, price of our Class A Common Stock and other factors beyond our control. While we generated net income of $54.1 million for the six months ended September 30, 2024, we have historically generated net losses and, in aggregate, these net losses have resulted in an accumulated deficit of $2.0 billion as of September 30, 2024. As of October 31, 2024, we had unrestricted cash and cash equivalents of approximately $3.5 million. All of these conditions raised substantial doubt about the Company’s ability to continue as a going concern within one year after the date of issuance.

We expect the Company will require additional capital to satisfy our obligations and fund our operations for the next twelve months, which will likely be achieved through the issuance of additional debt or equity, including through the SEPA. Also, we intend to potentially refinance some or all of our existing borrowings, including approximately $23.5 million of certain outstanding borrowing that will be maturing in the remainder of fiscal year 2025, with either our current lenders or other lenders, and continue to seek opportunities to reduce corporate overhead; however, we cannot conclude these are probable of being implemented or, if probable of being implemented, being in sufficient enough amounts to satisfy our contractual amounts as they presently exist that are coming due over the next 12 months as of the date of the filing of these financial statements with the SEC.

On June 27, 2023, we entered into the SEPA, whereby we have the right, but not the obligation, to sell to Yorkville up to $250.0 million of shares of the Company’s common stock. On June 20, 2024, the Company obtained stockholder approval pursuant to Nasdaq Listing Rule 5635(d) for the issuance of shares of Class A common stock to Yorkville in excess of the Exchange Cap. As a result, the Company may issue up to an aggregate of approximately $246.1 million worth of shares of Class A common stock following registration with the SEC. However, the decision regarding future sale of shares, including those under the SEPA, is subject to market conditions, such as trading volume, price of our Class A common stock and other factors beyond our control.

As more fully described in Note 8, on October 19, 2023, we entered into a three-year $25.0 million term loan with HH-BDH LLC, which was fully drawn upon closing and, the proceeds of which were used or are intended to be used to repay certain outstanding obligations, fund development of our products, and provide additional working capital. On August 16, 2024, we entered into an amendment to the term loan with HH-BDH to add an additional term loan of $1.7 million, which was used to provide working capital. The HH-BDH Credit Agreement contains certain financial maintenance covenants, including a debt service coverage ratio. On August 6, 2024, the Company entered into a securities purchase agreement with Yorkville, pursuant to which the Company agreed to issue and sell convertible debentures in an aggregate principal amount of up to $4.0 million and warrants to purchase up to 1,325,382 shares of the Company’s Class A common stock at an exercise price of $2.63. As of September 30, 2024, the Company has issued $2.0 million to Yorkville in aggregate principal amount of the convertible debentures and warrants to purchase up to 662,691 shares of Common Stock. The Company will issue the additional convertible debentures and warrants on or before the first business day after the date the registration statement registering the resale of the common stock underlying the convertible debentures and warrants is declared effective by the SEC. The Yorkville securities purchase agreement contains certain covenants. If any of these limitations of the HH-BDH Credit Agreement or the Purchase Agreement were to materially impede the flow of cash to us, our ability to service and repay our debt would be materially and adversely affected.

Ben may not be able to refinance our indebtedness or obtain additional financing on terms favorable to the Company, or at all. To the extent that Ben or its subsidiaries raise additional capital through the future sale of equity or debt, the ownership interest of our existing equity holders may be diluted. The terms of these future equity or debt securities may include liquidation or other preferences that adversely affect the rights of our existing equity unitholders or involve negative covenants that restrict Ben’s ability to take specific actions, such as incurring additional debt or making additional investments in growing the operations of the Company. If Ben defaults on these borrowings, then the Company will be required to either (i) sell participation or other interests in our loans or other of our assets, or (ii) to raise additional capital through the sale of equity and the ownership interest of our equity holders may be diluted.

10

We will utilize our cash flows toward our contractual obligations, to invest in our business, including new product initiatives and growth strategies, including any potential acquisitions, and, if determined by our Board, to pay dividends to our equity holders, including guaranteed payments on certain of BCH’s preferred equity securities, and to fund tax distributions for certain noncontrolling interest holders. Our ability to fund these capital needs will depend on our ongoing ability to generate cash from operations and via the capital markets.

While we have concluded that there is substantial doubt about our ability to continue as a going concern, our financial statements have been prepared on a going concern basis, which contemplates the realization of assets and satisfaction of liabilities in the normal course of business. The accompanying consolidated financial statements do not include any adjustments related to the recoverability and classification of recorded asset amounts or the amounts and classification of liabilities that might result from the outcome of this uncertainty related to the Company’s ability to continue as a going concern.

Reverse Stock Split

In April 2024, the Company's stockholders approved a reverse stock split of its Common Stock at a range of ratios between 1-for-10 to 1-for-100, and the Company's board of directors approved the implementation of the reverse stock split at a ratio of 1-for-80 (the “Reverse Stock Split”). The Reverse Stock Split was effective as of April 18, 2024, and the Company regained compliance with the minimum bid price requirement in May 2024.

As of the effective time of the Reverse Stock Split, every 80 issued and outstanding shares of the Company’s Common Stock was automatically reclassified into one issued and outstanding share of the Company’s Common Stock, with no change in the par value per share. No fractional shares of Common Stock were issued in connection with the Reverse Stock Split and all fractional shares were rounded up to the nearest whole share with respect to outstanding shares of common stock. All share and per share amounts of the Company's Class A and Class B common stock presented in this Quarterly Report on Form 10-Q have been retroactively adjusted to reflect the 1-for-80 Reverse Stock Split, including reclassifying an amount equal to the reduction in par value of Common Stock to additional paid-in capital.

Amendments to Organizational Documents

In connection with the Reverse Stock Split, on April 11, 2024, the Company, in its capacity as the sole managing member and the sole non-managing member of Beneficient Company Group, L.L.C. (“Ben LLC”), entered into and adopted the Second Amended and Restated Limited Liability Company Agreement of Beneficient Company Group, L.L.C. (the “Ben LLC A&R LLCA”), which became effective on April 18, 2024, simultaneously with the effectiveness of the Reverse Stock Split. The Ben LLC A&R LLCA provides that, among other things, in the event that the Company at any time (i) subdivides (by any stock split, dividend, recapitalization or otherwise), the outstanding shares of the Class A common stock (and Class B common stock, as applicable) of the Company into a greater number of shares, Ben LLC shall (A) cause the issuance of additional Class A Units of Ben LLC (the “Ben LLC Class A Units”) and (B) cause Beneficient Company Holdings, L.P. (“BCH”) to issue additional Class A Units of BCH (the “BCH Class A Units”) (and such other limited partner interests, if any, as determined by Ben LLC in its capacity as general partner of BCH to be appropriate), in both cases to reflect the increase in the number of shares of Common Stock of the Company outstanding, and (ii) combines (by combination, reverse split or otherwise) the outstanding shares of Class A common stock (and Class B common stock, as applicable) of the Company into a smaller number of shares, Ben LLC shall (A) cause a reduction in the number of Ben LLC Class A Units outstanding and (B) cause BCH to reduce the number of BCH Class A Units (and such other limited partner interests, if any, as determined by Ben LLC in its capacity as the general partner of BCH to be appropriate), in both cases to reflect the decrease in the number of shares of Common Stock of the Company outstanding.

Also in connection with the Reverse Stock Split, on April 11, 2024, Ben LLC, in its capacity as the sole general partner of BCH, entered into and adopted the Ninth Amended and Restated Limited Partnership Agreement of BCH (the “Ninth A&R BCH LPA”), which became effective on April 18, 2024, simultaneously with the effectiveness of the Reverse Stock Split. The Ninth A&R BCH LPA provides for, among other things, (i) the combination of certain units of BCH in connection with the Reverse Stock Split and the corresponding reverse unit split of the Ben LLC Class A Units as well as amendments to the definition of the Preferred Series A Subclass 0 Unit Conversion Price and Preferred Series A Subclass 1 Unit Conversion Price (each as defined in the Ninth A&R BCH LPA) and (ii) remove references to the previously authorized Preferred Series C Subclass 1 Unit Accounts (as defined in the Ninth A&R BCH LPA), which are no longer outstanding.

On September 30, 2024, Amendment No. 1 to the Ninth A&R BCH LPA was adopted to re-designate fifty percent (50%)% of the aggregate capital account balances in the BCH Preferred A.0 as non-redeemable Preferred A.0 Unit Accounts (such redesignated portion, the “BCH Preferred A.0 Non-Redeemable”) with the remaining fifty percent (50%)% of the capital account balances in the BCH Preferred A.0 Accounts remaining redeemable (such remaining Preferred A.0 being the “BCH Preferred A.0 Redeemable”).

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The BCH Preferred A.0 Non-Redeemable is identical to the BCH Preferred A.0 Redeemable except that it does not have any cash redemption rights.

Operating Cost Reduction Plan

On July 11, 2023, Beneficient’s board of directors (the “Board”) approved certain measures to reduce the operating expenses of the Company with a view toward focusing resources on areas of current business needs. As part of this plan, we commenced the furlough of approximately 30 employees, representing approximately 20% of our workforce as of July 11, 2023. We also implemented a reduction in spending with third-party vendors in certain parts of our business as part of the plan to reduce operating expenses.

Effective November 3, 2023, the Board approved additional measures to reduce the operating expenses of the Company, including the termination of the previously furloughed employees and the layoff of an additional 15 employees, representing approximately an additional 10% of our workforce as of November 3, 2023. We continue to focus efforts on reducing spending with third-party vendors in certain parts of our business as part of the plan to further reduce operating expenses.

2.    Summary of Significant Accounting Policies

Basis of Presentation and Principles of Consolidation

The consolidated financial statements of Ben are prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”) on a going concern basis, and include the accounts of Ben, its wholly-owned and majority-owned subsidiaries and, certain variable interest entities (“VIEs”), in which the Company is the primary beneficiary. An enterprise is determined to be the primary beneficiary of a VIE if it holds a controlling financial interest consistent with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 810, Consolidation (“ASC 810”), as amended.

The Customer ExAlt Trusts are considered VIEs for which Ben has a variable interest and is considered the primary beneficiary. Thus, Ben is required to consolidate all of the Customer ExAlt Trusts. The entities in which the Customer ExAlt Trusts hold an ownership interest are investment companies (i.e., funds) under ASC 946, Financial Services — Investment Companies (“ASC 946”). Thus, the investments in non-investment companies made by these funds are accounted for in accordance with ASC 946 and are not subject to consolidation or the disclosure requirements of ASC 810. Moreover, further consolidation provisions of ASC 946 are not applicable to Ben since these investment companies do not have an investment in an operating entity that provides services to the investment company or to Ben.

All intercompany accounts and transactions have been eliminated in consolidation, and the portion of income allocated to owners other than the Company is included in “net income (loss) attributable to noncontrolling interests” in the consolidated statements of comprehensive income (loss). With the consolidation of the Customer ExAlt Trusts, interest and fee income and any related receivable charged by Ben Liquidity and Ben Custody to the Customer ExAlt Trusts are eliminated in the presentation of our consolidated financial statements. While these amounts are eliminated solely for financial reporting purposes, such amounts are earned by Ben Liquidity and/or Ben Custody from the Customer ExAlt Trusts and directly impact the income (loss) allocable to Ben’s and BCH’s equity holders as further discussed in Note 3.

The accompanying unaudited interim consolidated financial statements of the Company do not contain the detail or footnote disclosure concerning accounting policies and other matters that would be included in full fiscal year consolidated financial statements; therefore, they should be read in conjunction with the Company’s audited consolidated financial statements and notes thereto included in the Company’s Annual Report. In the opinion of management, all material adjustments, consisting of normal and recurring adjustments, have been made that were considered necessary to present fairly the financial condition, results of operations and cash flows at the interim date and for the interim periods presented. Operating results for the interim periods disclosed herein are not necessarily indicative of results that may be expected for a full year.

Reverse Stock Split

Following stockholder approval on April 18, 2024, the Company effected a reverse stock split of our Common Stock at a ratio of 1-for-80 and a simultaneous proportionate reduction in the authorized shares of each class of Common Stock as required by Nevada Revised Statues Section 78.207. The Reverse Stock Split was effective as of April 18, 2024. Proportional adjustments were made to the number of shares of common stock issuable upon exercise or conversion of the Company’s equity award, warrants, and other equity instruments convertible into common stock, as well as the applicable exercise price. All share and per share amounts of our Class A and Class B common stock presented have been retroactively adjusted to reflect the Reverse Stock Split, including reclassifying an amount equal to the reduction in par value of common stock to additional paid in capital.

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Initial Recapitalization and Common Unit Conversion

On June 6, 2023, immediately prior to the Conversion, BCG was recapitalized, as further described in Note 4. For the periods prior to the closing, 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 adjusted on the basis of Common Stock reflecting the common unit conversion ratio, as described above.

Use of Estimates

The preparation of the Company’s consolidated financial statements in conformity with U.S. GAAP requires management to make certain estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. These estimates and assumptions are based on information available as of the date of the consolidated financial statements and could differ from actual results. Material estimates that are particularly susceptible to change in the near term relate to the fair value determination of investments in alternative assets held by the Customer ExAlt Trusts, determination of the allowance for credit losses as an input to the allocation of income (loss) to Ben’s or BCH’s equity holders, the allocation of income (loss) to Ben’s and BCH’s equity holders, evaluation of potential loss contingencies principally related to ongoing legal matters, and evaluation of potential impairment of goodwill and other intangibles.

Significant accounting policies are detailed in Note 2 to the consolidated financial statements included in the Company’s Annual Report. Other than described below, there are no new or revised significant accounting policies as of September 30, 2024.

Warrant Liability

The Company determines the accounting classification of warrants it issues as either liability or equity classified by first assessing whether the warrants meet liability classification in accordance with ASC 480, Distinguishing Liabilities from Equity ("ASC 480"), then in accordance with ASC 815 ("ASC 815"), Derivatives and Hedging. Under ASC 480, warrants are considered liability classified if the warrants are mandatorily redeemable, obligate the Company to settle the warrants or the underlying shares by paying cash or other assets, or warrants that must or may require settlement by issuing variable number of shares. If warrants do not meet liability classification under ASC 480, the Company assesses the requirements under ASC 815, which states that contracts that require or may require the issuer to settle the contract for cash are liabilities recorded at fair value, irrespective of the likelihood of the transaction occurring that triggers the net cash settlement feature. If the warrants do not require liability classification under ASC 815, and in order to conclude equity classification, the Company also assesses whether the warrants are indexed to its Common Stock and whether the warrants are classified as equity under ASC 815 or other applicable GAAP. After all relevant assessments, the Company concludes whether the warrants are classified as liability or equity. Liability classified warrants require fair value accounting at issuance and subsequent to initial issuance with all changes in fair value after the issuance date recorded in the statements of operations. Equity classified warrants only require fair value accounting at issuance with no changes recognized subsequent to the issuance date.

The Company accounts for its outstanding warrants, which are principally comprised of those assumed in the Transaction (as described in Note 4) and the warrants issued to Yorkville (as described in Note 7), in accordance with the guidance contained in ASC 815, Derivatives and Hedging, whereby under those accounting requirements, our outstanding warrants do not meet the criteria for equity treatment and must be recorded as a liability. Accordingly, the Company classifies our warrant instruments as a liability recorded at fair value and adjusts the instruments to fair value at each reporting period using quoted market prices, where available, or other appropriate valuation techniques, such as an option pricing model. The warrant liability is re-measured at each balance sheet date until the warrants are exercised or expire, and any change in fair value will be recognized in the Company’s consolidated statements of comprehensive income (loss). Such warrant classification is also subject to re-evaluation at each reporting period.

Convertible Debt

The Company has elected the fair value option to account for the convertible debentures with Yorkville (as described in Note 7). The Company recorded the convertible debentures at fair value upon issuance. The Company records changes in fair value in the consolidated statements of comprehensive income (loss), with the exception of changes in fair value due to instrument-specific credit risk which, if present, will be recorded as a component of other comprehensive income (loss). Interest expense related to the convertible debentures is included in the changes in fair value. As a result of applying the fair value option, direct costs and fees related to the convertible debentures were expensed as incurred.

Income Taxes

On June 6, 2023, The Beneficient Company Group, L.P. changed both its regulatory and tax status from a Delaware Limited Partnership to a Nevada Corporation and changed its name from The Beneficient Company Group, L.P. to Beneficient. Beneficient made a tax election to be treated as a corporation for US tax purposes effective as of this date.

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As a result of this tax election, Beneficient records current tax liabilities or assets through charges or credits to the current tax provision for the estimated taxes payable or refundable for the current year. Deferred tax assets and liabilities are recorded for future tax consequences attributable to differences between the financial statement carrying amounts of assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. A deferred tax valuation allowance is established if it is more likely than not that all or a portion of the deferred tax assets will not be realized. A tax position that fails to meet a more-likely-than-not recognition threshold will result in either reduction of current or deferred tax assets, and/or recording of current or deferred tax liabilities. Interest and penalties related to income taxes are recorded in the other expense line item of the consolidated statements of comprehensive income (loss).

Prior to the restructuring that resulted in Beneficient becoming a corporation, Beneficient was taxed as a Delaware Limited Partnership. In the event the subsequent entity, Beneficient a corporation, is audited by the taxing authority and assessed additional amounts due to the underpayment of tax in previous tax years, management intends to make the push-out election allowed by the U.S. Treasury Department. That election allows Beneficient to notify its partners of their share of imputed underpayment amounts for inclusion in their current tax returns.

Accounting Standards Not Yet Adopted

ASU 2023-07, Segment Reporting, (Topic 280) was issued in November 2023 and expands public entities’ segment disclosures by requiring disclosure of significant segment expenses that are regularly provided to the chief operating decision maker (“CODM”) and included within each reported measure of segment profit or loss, an amount and description of its composition for other segment items, and interim disclosures of a reportable segment’s profit or loss and assets. All disclosure requirements under ASU 2023-07 are also required for public entities with a single reportable segment. Additionally, the amendments require disclosure of the title and position of the CODM and an explanation of how the CODM uses the reported measure(s) of segment profit or loss in assessing segment performance and deciding how to allocate resources. ASU 2023-07 is effective for fiscal years beginning after December 15, 2023 and interim periods within fiscal years beginning after December 15, 2024, which will be our fiscal year beginning April 1, 2024 and interim periods beginning April 1, 2025. Early adoption is permitted. ASU 2023-07 will have no impact on the Company’s financial condition or results of operations. The Company is evaluating the impact to the related segment reporting disclosures.

ASU 2023-09, Income Taxes, (Topic 740) was issued in December 2023, which expands income tax disclosure requirements to include additional information related to the rate reconciliation of our effective tax rates to statutory rates as well as additional disaggregation of taxes paid. The amendments in ASU 2023-09 also remove disclosures related to certain unrecognized tax benefits and deferred taxes. ASU 2023-09 is effective for fiscal years beginning after December 15, 2024, or our fiscal year beginning April 1, 2025. The amendments may be applied prospectively or retrospectively, and early adoption is permitted. We are currently assessing the impact of the requirements on our consolidated financial statements and disclosures.

ASU 2020-04, Reference Rate Reform, (Topic 848) was issued in March 2020. The amendments in Topic 848 provide optional expedients and exceptions for applying U.S. GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. Topic 848 can be applied by all entities as of the beginning of the interim period that includes March 12, 2020, or any date thereafter, and entities may elect to apply the amendments prospectively through December 31, 2022. On December 31, 2022, ASU 2022-06, Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848 was issued, which extends the period of time entities can utilize the reference rate reform relief guidance under ASU 2020-04 from December 31, 2022 to December 31, 2024. We have not utilized the optional expedients and exceptions provided by this standard, and are currently evaluating the impact of this standard on our consolidated financial statements and disclosures.

3.    Understanding our Financial Statements and the Impact to the Common Shareholder

Ben’s current products and services, which are offered by the Ben Liquidity and Ben Custody business segments, involve or are principally offered to certain of the Customer ExAlt Trusts, which are consolidated VIEs solely for financial reporting purposes, and are not owned directly or indirectly by Ben or BCH equity holders. Transactions involving products and services between Ben’s operating subsidiaries and the Customer ExAlt Trusts are eliminated in the presentation of our consolidated financial statements. Thus, the consolidated financial statements reflect the (i) assets, liabilities, revenues, expenses, investment income and cash flows of Ben, including the Customer ExAlt Trusts, which hold the collateral for the ExAlt Loans, on a gross basis, and (ii) a portion of the economic interests of certain of the Customer ExAlt Trusts held by the residual beneficiaries that are attributed to noncontrolling interests in the accompanying consolidated financial statements.

As a result, Ben’s primary tangible assets reflected on its consolidated statements of financial condition are investments, mainly comprised of alternative assets held by the Customer ExAlt Trusts and the primary sources of revenue reflected on our consolidated statements of comprehensive income (loss) are investment income (loss), net, which represents changes in

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the net asset value (“NAV”) of these investments held by the Customer ExAlt Trusts, and gain (loss) on financial instruments, net, which represents changes in fair value of equity securities, debt securities, a derivative liability, and put options, primarily held by the Customer ExAlt Trusts. Such investment income (loss), net, and gain (loss) on financial instruments that are held by the Customer ExAlt Trusts is included in the net income (loss) allocated to noncontrolling interests – Customer ExAlt Trusts in the consolidated statement of comprehensive income (loss). The revenues and expenses recognized in these line items for the activities of the Customer ExAlt Trusts do not directly impact net income (loss) attributable to Ben’s or BCH’s equity holders.

Instead, the interest and fee income earned by Ben Liquidity and Ben Custody from the Customer ExAlt Trusts, which are eliminated in the presentation of our consolidated financial statements, directly impact the net income (loss) attributable to Ben’s and BCH’s equity holders. Our Ben Liquidity and Ben Custody business segments, which relate to our current operating subsidiaries, are owned by the Company’s equity holders (including those of BCH), and recognize revenue through (i) interest income on ExAlt Loans made to the Customer ExAlt Trusts in connection with our liquidity transactions for Customers with interest rates between 5.0% and 14.0% per annum charged against the outstanding principal balance of the ExAlt Loan, (ii) fee income billed at closing, but recognized as revenue ratably over the expected life of the alternative asset, for each liquidity transaction with Customers for services including access to and use of the AltAccess platform, transfer of the alternative assets, and delivery of the consideration to the client, with fee rates between 1.0% and 7.0% of the sum of the NAV and remaining unfunded commitment of the transacted alternative asset, and (iii) recurring fee income recognized each period for providing services including trustee, custody, and trust administration of the Customer ExAlt Trusts while they hold investments, with fee rates generally at 2.8% per annum of the sum of the NAV and remaining unfunded commitment of the alternative assets held. Ben Liquidity and Ben Custody revenue recognized for the three and six months ended September 30, 2024 and 2023 is as follows:

a.Ben Liquidity recognized $12.0 million and $13.0 million in interest income during the three months ended September 30, 2024 and 2023, respectively. For the six months ended September 30, 2024 and 2023, Ben Liquidity recognized interest income of $22.8 million and $25.0 million, respectively.

b.Ben Custody recognized $5.4 million and $6.5 million in trust services and administration revenues during the three months ended September 30, 2024 and 2023, respectively, comprised of both the fee income billed at the closing of the transactions that is being amortized into revenue and the recurring fee income billed during the periods. For the six months ended September 30, 2024 and 2023, Ben Custody recognized trust services and administration revenues of $10.8 million and $13.1 million, respectively.

In addition, the Corporate/Other segment, which also relates to Ben or subsidiaries owned by the holders of equity in the Company (including BCH), may include fee revenue recognized through services provided to Customers or the Customer ExAlt Trusts through business lines not included within Ben Liquidity and Ben Custody.

Additionally, Ben Liquidity’s provision for credit losses is eliminated in the presentation of our consolidated financial statements but directly impacts the net income (loss) attributable to the various equity securities of Ben and BCH. Likewise, the amounts expensed by the Customer ExAlt Trusts for interest and fees owed to Ben’s operating subsidiaries are eliminated in the presentation of our consolidated financial statements but are recognized for purposes of the allocation of net income (loss) attributable to the beneficial owners of the Customer ExAlt Trusts.

The following table presents a reconciliation of operating income (loss) of our reportable segments, excluding the Customer ExAlt Trusts, to net income (loss) attributable to Beneficient’s common shareholders. This reconciliation serves to provide users of our financial statements an understanding and visual aide of the reportable segments that impact net income (loss) attributable to the common shareholder and reiterates that the consolidation of the Customer ExAlt Trusts has no impact on the net income (loss) attributable to Beneficient’s common shareholders.

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(in thousands)	Three Months Ended September 30,				Six Months Ended September 30,
	2024		2023		2024		2023
Operating income (loss)
Ben Liquidity	$	2,905	$	(272,091)	$	2,391	$	(1,175,119)
Ben Custody	4,329		(80,847)		5,616		(270,844)
Corporate & Other	(16,426)		(25,234)		27,665		(74,313)
Plus: Gain on liability resolution	23,462		—		23,462		—
Less: Income tax expense (allocable to Ben and BCH equity holders)	—		—		(28)		—
Plus: Net loss attributable to noncontrolling interests - Ben	3,067		10,604		10,254		41,290
Less: Noncontrolling interest guaranteed payment	(4,423)		(4,167)		(8,779)		(8,272)
Net income (loss) attributable to common shareholders	$	12,914	$	(371,735)	$	60,581	$	(1,487,258)

Significant Accounting Policies - Impacting Allocation of Net Income (Loss) to Beneficient’s Equity Holders

As described above, certain income and expenses involving transactions between Ben and the Customer ExAlt Trusts are eliminated for financial reporting purposes; however, the income or expenses are important to determine the net income (loss) allocable to Ben’s and BCH’s equity holders. Significant accounting policies related to the significant income and expense items eliminated in our consolidated financial statements, but impacting the allocation of net income (loss) to Beneficient’s equity holders, are detailed in Note 3 to the consolidated financial statements included in the Company’s Annual Report. There are no new or revised significant accounting policies related to the significant income and expense items eliminated in our consolidated financial statements as of September 30, 2024 impacting allocation of net income (loss) to Ben’s and BCH’s equity holders.

4.    De-SPAC Merger Transaction

Forward Purchase Agreement

On June 5, 2023, BCG entered into a Prepaid Forward Purchase Agreement, by and between BCG and RiverNorth SPAC Arbitrage Fund, L.P. (the “Purchaser”), pursuant to which the Purchaser agreed to, among other things, effect certain purchases of shares of Avalon Class A common stock (“Avalon Class A Common Stock”) that would have been redeemed in connection with the special meeting of Avalon’s stockholders (the “Special Meeting”) to approve the transactions contemplated by the Business Combination Agreement (as amended through June 25, 2023, the “Forward Purchase Agreement”).

Pursuant to the Forward Purchase Agreement, Purchaser agreed to purchase shares of Avalon Class A Common Stock (the “AVAC FPA Shares”) at a purchase price per share of $847.04 (for aggregate consideration of $25.0 million from unaffiliated third-parties). The AVAC FPA Shares were redeemed in connection with the Special Meeting and converted into shares of Class A common stock and Series A Convertible Preferred Stock, par value $0.001 per share, of Beneficient (“Series A preferred stock”) upon consummation of the Business Combination. The Series A preferred stock converted in accordance with its terms to shares of Class A common stock, and Purchaser held an aggregate of 36,956 shares of Class A common stock following such conversion in respect of the AVAC FPA Shares (such shares of Class A common stock, the “FPA Shares”).

The $25.0 million in proceeds (the “Disbursed Amount”) in respect of the FPA Shares was disbursed from the Avalon trust account following the consummation of the Business Combination. Specifically, $5.0 million of the Disbursed Amount was disbursed to Beneficient, with the remaining $20.0 million (the “Reserve Amount”) disbursed to Purchaser to be held by Purchaser until the Maturity Date (as defined below) or until its earlier release per the terms of the Forward Purchase Agreement. Such Reserve Amount is reflected as a Stock Receivable classified in equity on the consolidated statements of financial condition.

The Forward Purchase Agreement provides for two categories of FPA Shares: (i) 13,305 FPA Shares categorized as “Purchased Shares” (the “Purchased Shares”) and (ii) the remaining 23,651 FPA Shares categorized as “Prepaid Forward Shares” (the “Prepaid Forward Shares”).

If by the 10th anniversary of the close of the Business Combination, Purchaser has received less than $5.0 million, in gross proceeds from, and Purchaser has used good faith efforts to sell, the Purchased Shares, Beneficient has agreed to cause BCH to issue Purchaser an amount of BCH Preferred A.0 (or such other senior most preferred security of Beneficient) as consideration for any shortfall amounts less than $5.0 million from the sale of the Purchased Shares. Purchaser has agreed for

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the first six months following the Business Combination not to sell any Purchased Shares below $400.00 per share or to sell more than 10% of the daily trading volume of the Class A common stock if the volume weighted average price of the Class A common stock is between $400.00 and $640.00 for any such trading day.

Upon the sales of the Prepaid Forward Shares, the Purchaser will remit $847.04 per share, or such lesser price per share designated by the Company (“Designated Price”) by written notice setting forth the Designated Price and the number Prepaid Forward Shares that may be sold at such price (“Designated Price Notice”) delivered to Purchaser prior to any such sales, to the Company. On June 8, 2025 (“Maturity Date”), any Prepaid Forward Shares not sold by the Purchaser will be returned to the Company and any remaining amounts in respect of the Prepaid Forward Shares will be retained by the Purchaser, less any amounts still owed to the Company from sales effected prior to the Maturity Date. The Forward Purchase Agreement permits the Company, in its sole discretion, to lower the Designated Price to a per share amount lower than $847.04 in order to permit the Purchaser to effect additional sales of its Prepaid Forward Shares at a price lower than the prevailing trading price of the Company’s Class A common stock in exchange for the remitting of a portion of the proceeds of any such sales to the Company. The Prepaid Forward Shares include an embedded put option, which is accounted for separately and classified as a liability in the other liabilities line item of the consolidated statements of financial condition. The Prepaid Forward Shares are measured at fair value each reporting period with the change in fair value recognized in the gain (loss) on financial instruments, net line item of the consolidated statements of comprehensive income (loss).

The Purchaser has received at least $5.0 million in gross proceeds from the sale of some or all of the Purchased Shares and thus, there will be no requirement to issue the Purchaser any amount of BCH Preferred A.0 as consideration for any shortfall. To the Company’s knowledge, all shares purchased by the Purchaser in connection with the Forward Purchase Agreement were from unaffiliated third-parties.

No sales of any of the Prepaid Forward Shares occurred through September 30, 2024. On September 30, 2024, the Company and the Purchaser entered into an agreement to terminate the Forward Purchase Agreement. In connection with the termination of the Forward Purchase Agreement, the Purchaser agreed to return the 23,651 Prepaid Forward Shares to the Company.

To the Company’s knowledge, all shares purchased by the Purchaser in connection with the Forward Purchase Agreement were from unaffiliated third-parties.

Recapitalization of BCG

On June 6, 2023, immediately prior to the Conversion, the 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 BCH Preferred A.1 entered into conversion and exchange agreements (the “BCG Conversion and Exchange Agreements”) with BCG and BCH, pursuant to which they converted certain BCH Preferred A.1 to BCH Class S Ordinary Units, which were then contributed to BCG in exchange for BCG Class A Common Units.

Prior to the Conversion on June 6, 2023, when the Company was a Delaware limited partnership, the Company’s equity interests consisted of common units, one series of preferred units, and noncontrolling interests. Pursuant to the Conversion, each BCG Class A Common Unit converted into 1.25 shares of Class A common stock par value $0.001 per share (“Class A common stock”), each BCG Class B Common Unit converted into 1.25 shares of Class B common stock, par value $0.001 per share (“Class B common stock” and together with the Class A common stock, the “Common Stock”), and the capital account balance of the Preferred Series B Subclass 2 Unit Accounts of BCG (“BCG Preferred B.2 Unit Accounts”) converted into shares of Class A common stock at a rate based on a 20% discount to the $800.00 valuation of the Class A common stock (or $640.00). As a result, in the Conversion, we issued 1,076,462 shares of Class A common stock with respect to the BCG Class A Common Units, 239,256 shares of Class B common stock with respect to the BCG Class B Units and 1,175,632 shares of Class A common stock with respect to the BCG Preferred B.2 Unit Accounts.

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The following table provides additional information on the securities contributed and exchanged as part of the BCG Recapitalization by each of BHI, Bruce W. Schnitzer and Hicks Holdings Operating, LLC (dollars and units in thousands):

Name	Converted Capital Account Balance of BCH Preferred A.1		BCH Class S Ordinary Units Received	BCG Class B Units Received
BHI	$	177,195	178	178
Bruce W. Schnitzer	988		1	1
Hicks Holdings Operating, LLC	13,222		14	14
Total	$	191,405	193	193

The following table provides additional information on the securities contributed and exchanged as part of the BCG Recapitalization by each of Bruce W. Schnitzer and Richard W. Fisher (dollars and units in thousands):

Name	Converted Capital Account Balance of BCH Preferred A.1		BCH Class S Ordinary Units Received	BCG Class A Units Received
Bruce W. Schnitzer	$	734	9	9
Richard W. Fisher	1,722		10	10
Total	$	2,456	19	19

As part of the conversion to BCG Class A Common Units, additional value of approximately $15.0 million was provided to certain holders who were members of our Board at the time of conversion. The additional value was accounted for as compensation, which resulted in stock-based compensation expense of $15.0 million during the quarter ended June 30, 2023.

Closing of the Transaction

On June 7, 2023, the Company completed its previously announced de-SPAC merger transaction with Avalon. Each share of Avalon common stock issued and outstanding immediately prior to that date automatically converted into one share of Class A common stock and one share of Series A preferred stock of Beneficient. Additionally, each Avalon Warrant (defined below) automatically converted into a Warrant (defined below).

Accordingly, the Company issued (i) an aggregate of 99,649 shares of Class A common stock to the former holders of Avalon Class A Common Stock, and Class B Common Stock of Avalon, par value $0.0001 per share (“Avalon Class B Common Stock”), outstanding immediately prior to June 7, 2023, and (ii) an aggregate of 34,961 shares of Beneficient Series A preferred stock to non-redeeming Avalon Class A stockholders, and the Avalon Warrants converted into an aggregate of 295,313 redeemable Warrants. At closing, $27.9 million of cash remained in the trust account of Avalon. There were $26.1 million in transaction expenses, $20.0 million of which represented the Reserve Amount under the Forward Purchase Agreement, that were either paid by Avalon prior to closing or offset against proceeds received by the Company at closing, resulting in $1.8 million in net proceeds to the Company. Proceeds from the Transaction were used to pay expenses related to the Transaction.

Immediately after the Business Combination, 2,358,429 shares of Class A common stock were issued and outstanding, 239,256 shares of Class B common stock were issued and outstanding, 34,962 shares of Beneficient Series A preferred stock were issued and outstanding and 296,969 Warrants were issued and outstanding. Because the Series A preferred stock is not expected to be publicly listed, the Beneficient Series A preferred stock terms provide that upon its issuance, each share of Series A preferred stock will automatically convert into one-quarter of a share of Class A common stock of Beneficient, or an aggregate of 8,595 additional shares of Class A common stock. Following such conversion, there are 2,367,244 shares of Class A common stock of Beneficient outstanding following the Business Combination.

The Transaction was accounted for as a capital transaction in substance and not a business combination under ASC 805, Business Combinations (“ASC 805”). As a result, Beneficient was treated as the accounting acquirer and Avalon was treated as the acquired company for financial reporting purposes per ASC 805. Accordingly, for accounting purposes, the Transaction was treated similar to an equity contribution in exchange for the issuance of shares of Common Stock. The financial statements of the combined entity represented a continuation of the financial statements of Beneficient, and the net assets of Avalon were stated at historical cost, with no goodwill or other intangible assets recorded. The equity and net loss per unit attributable to common equity holders of the Company, prior to the closing, have been retroactively restated as shares reflecting the common unit conversion ratio discussed above.

The Company and Avalon incurred $21.7 million and $26.1 million, respectively, of expenses related to the Transaction. These expenses consisted of underwriting fees, professional services (legal, accounting, advisory, etc.) and other direct

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expenses associated with the Transaction. As a result of the transaction, the transaction costs incurred by the Company related to the issuance of shares were recognized in additional paid-in capital as a reduction of proceeds. The expenses incurred by Avalon were either paid by Avalon prior to closing or netted against proceeds received by the Company at closing.

Common Stock Warrants

The Company assumed 15,525,000 publicly-traded Avalon Warrants (“Avalon Public Warrants”), which are exercisable for 194,063 shares of Class A common stock, as adjusted for stock splits, and 8,100,000 private placement Avalon Warrants, which are exercisable for 101,250 shares of Class A common stock, as adjusted for stock splits, (“Avalon Private Warrants” and together with the Avalon Public Warrants, the “Avalon Warrants”), which were originally issued by Avalon in connection with its initial public offering and, as a result of the assumption by the Company, became Warrants. The Avalon Public Warrants assumed by Ben are referred to as the “Public Warrants” and the Avalon Private Warrants assumed by Ben are referred to as the “Private Warrants,” and collectively, the “Warrants.” The Warrants are included in derivative warrant liabilities on the Company’s consolidated statements of financial condition. The Warrants entitle the holder to exercise each whole warrant for one share of Class A common stock and one share of Series A preferred stock at an exercise price of $920.00 (each a “Warrant” and collectively, the “Warrants”).

The Public Warrants may only be exercised for a whole number of shares, and will expire on June 7, 2028 (i.e., five years following the closing), or earlier upon redemption or liquidations. Ben may redeem the outstanding Public Warrants (i) in whole and not in part; (ii) at a price of $0.80 per warrant; (iii) upon not less than 30 days’ prior written notice of redemption to each warrant holder; and (iv) if, and only if, the reported last sale price of the Class A common stock for any 20 trading days within a 30-trading day period ending three business days before Ben sends the notice of redemption to the warrant holders (the “Reference Value”) equals or exceeds $1,440.00 per share. In addition, we have the ability to redeem the outstanding Warrants at any time after they become exercisable and prior to their expiration, at a price of $8.00 per Public Warrant if, among other things, the Reference Value equals or exceeds $800.00 per share. If and when the Public Warrants become redeemable by Ben, Ben may exercise its redemption right even if Ben is unable to register or qualify the underlying securities for sale under all applicable state securities laws.

During any period when Ben fails to maintain an effective registration statement registering the Class A common stock issuable upon the exercise of the Warrants, Ben is required to permit holders of Warrants to exercise their Warrants on a “cashless basis” in accordance with Section 3(a)(9) of the Securities Act of 1933, as amended, or another exemption.

The Private Warrants, which became transferable, assignable and salable on July 7, 2023 (i.e., 30 days after the closing), are currently held by Avalon Acquisition Holdings, L.L.C (“the Avalon Sponsor”), and are generally identical to the Public Warrants, except they cannot be redeemed by Ben so long as they are held by the Avalon Sponsor or its permitted transferees. An Avalon Sponsor, or its permitted transferees, has the option to exercise the Private Warrants on a cashless basis and have certain registration rights. If the Private Warrants are held by holders other than the Avalon Sponsor or its permitted transferees, the Private Warrants will become redeemable by Ben in all redemption scenarios and exercisable by the holders on the same basis as the Public Warrants.

As of September 30, 2024, there were 24,699,725 Warrants outstanding with a fair value of $0.2 million, as reflected in the warrant liability line item on the consolidated statements of financial condition. During the three months ended September 30, 2024 and 2023, gains of nominal and $0.2 million, respectively, were recognized in gain (loss) on financial instruments, net in the consolidated statements of comprehensive income (loss). During the six months ended September 30, 2024 and 2023, gains of nominal and $1.7 million, respectively, were recognized in gain (loss) on financial instruments, net in the consolidated statements of comprehensive income (loss). Refer to Note 6 for a reconciliation of the gain (loss) on financial instruments, net for each of the periods presented herein.

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5.    Investments, at Fair Value

Investments held by Ben or held by the Customer ExAlt Trusts are comprised of investments in alternative assets, public debt and equity securities, other equity securities and interests (including those of a related party), and put options. The composition of investments recorded at fair value by holder is included in the table below (in thousands):

	September 30, 2024				March 31, 2024
	Ben		Customer ExAlt Trusts		Ben		Customer ExAlt Trusts
Alternative assets	$	—	$	301,388	$	—	$	293,916
Public equity securities and option	—		4,885		—		4,897
Debt securities available-for-sale	—		1,969		—		2,962
Other equity securities and interests	—		26,745		6		27,338
Total investments, at fair value	$	—	$	334,987	$	6	$	329,113

Investments in Alternative Assets held by the Customer ExAlt Trusts

The investments in alternative assets are held, either through direct ownership or through beneficial interests, by certain of the Customer ExAlt Trusts and consist primarily of limited partnership interests in various alternative investments, including private equity funds. These alternative investments are valued using NAV as a practical expedient. Changes in the NAV of these investments are recorded in investment income (loss), net in our consolidated statements of comprehensive income (loss). The investments in alternative assets provide the economic value that ultimately collateralizes the ExAlt Loans that Ben Liquidity originates with the Customer ExAlt Trusts in liquidity transactions and any associated fees due from the Customer ExAlt Trusts. The increase in investments in alternative assets since March 31, 2024, was primarily driven by net upward adjustments of NAV as reported by the investment managers or general partners offset by $12.5 million in distributions.

The NAV calculation reflects the most current report of NAV and other data received from firm/fund sponsors. If no such report has been received, Ben estimates NAV based upon the last NAV calculation reported by the investment manager and adjusts it for capital calls and distributions made in the intervening time frame. Ben also considers whether adjustments to the NAV are necessary, in certain circumstances, in which management is aware of specific material events, changes in market conditions, and other relevant factors that have affected the value of an investment during the period between the date of the most recent NAV calculation reported by the investment manager or sponsor and the measurement date. Public equity securities known to be owned within an alternative investment fund, based on the most recent information reported by the general partners, are marked to market using quoted market prices on the balance sheet reporting date.

The underlying interests in alternative assets are primarily limited partnership interests. The transfer of the investments in private equity funds generally requires the consent of the corresponding private equity fund manager, and the transfer of certain fund investments is subject to rights of first refusal or other preemptive rights, potentially further limiting the ExAlt PlanTM from transferring an investment in a private equity fund. The investments are not subject to redemption with the funds. Distributions from funds are received as the underlying investments are liquidated. Timing of liquidation is currently unknown.

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Portfolio Information

Our portfolio of alternative asset investments, held by certain of the Customer ExAlt Trusts by asset class of each fund as of September 30, 2024 and March 31, 2024, is summarized below (in thousands):

	Alternative Investments Portfolio Summary
	September 30, 2024				March 31, 2024
Asset Class	Carrying Value		Unfunded Commitments		Carrying Value		Unfunded Commitments
Private Equity	$	138,089	$	37,989	$	116,462	$	38,401
Venture Capital	128,033		2,344		139,495		2,548
Natural Resources	16,815		3,318		17,553		3,340
Private Real Estate	8,580		2,884		8,760		2,907
Hedge Funds	3,539		245		6,095		245
Other(1)	6,332		383		5,551		382
Total	$	301,388	$	47,163	$	293,916	$	47,823

(1) “Other” includes earnouts, escrow, net other assets, and private debt strategies.

As of September 30, 2024, the Customer ExAlt Trusts collectively had exposure to 237 professionally managed alternative asset investment funds, comprised of 797 underlying investments, 92 percent of which are investments in private companies.

Public Equity Securities

Investment in public equity securities primarily represents ownership by both Ben and certain of the Customer ExAlt Trusts in public companies. These investments are carried at fair value, which is determined using quoted market prices. Any realized gains and losses are recorded on a trade-date basis. Realized and unrealized gains and losses are recognized in gain (loss) on financial instruments, net in the consolidated statements of comprehensive income (loss). As of September 30, 2024 and March 31, 2024, the fair value of investments in public equity securities was $4.9 million and $4.9 million, respectively. On August 1, 2023, GWG Holdings’ plan of reorganization was declared effective, and the Company’s investment was transferred to equity interests in the GWG Wind Down Trust (as defined herein). The interests in the GWG Wind Down Trust are reflected as an investment in other equity securities. Refer to Note 6 for a reconciliation of the gain (loss) on financial instruments, net for each of the periods presented herein.

Put Options

On April 1, 2022, Ben, through CT Risk Management, L.L.C., (“CT”) made aggregate payments of $5.0 million to purchase put options in the S&P 500 Index with an aggregate notional amount of $141.3 million. Half of the notional expires in April 2024, while the other half expires in April 2025. On April 27, 2022, CT sold an equity interest for $2.4 million to the third-party involved in a participation loan transaction described in Note 7 and utilized the proceeds to purchase additional put options similar to the put options purchased on April 1, 2022. These put options were sold in September 2023 for $1.0 million, resulting in a recognized loss of $0.7 million.

The put options were designed to protect the NAV of the interests in alternative assets, which generate the collateral to certain of the ExAlt Loans in Ben Liquidity’s loan portfolio or the loans related to the participation loan transaction and provide for distributions to the Customer ExAlt Trusts’ ultimate beneficiary, against market risk. The options were carried at fair value, which is determined using quoted market prices. Any realized gains and losses are recorded on a trade-date basis. Realized and unrealized gains and losses were recognized in gain (loss) on financial instruments, net in the consolidated statements of comprehensive income (loss).

No put options were held as of September 30, 2024 and March 31, 2024. For the three months ended September 30, 2023, Ben recognized losses of $0.7 million on the put options, of which approximately $0.3 million is attributable to Ben or Ben’s loan portfolio, with the remainder attributable principally to the loan involved in the participation loan transaction. For the six months ended September 30, 2023, Ben has recognized losses of $3.0 million on the put options, of which approximately $2.0 million is attributable to Ben or Ben’s loan portfolio, with the remainder attributable principally to the loan involved in the participation loan transaction. Refer to Note 6 for a reconciliation of the gain (loss) on financial instruments, net for each of the periods presented herein.

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Debt Securities Available-for-Sale

As of September 30, 2024 and March 31, 2024, investments in debt securities represent ownership in privately held debt securities. Investments in debt securities are classified and accounted for as available-for-sale, with unrealized gains and losses presented as a separate component of equity under the accumulated other comprehensive income (loss) line item.

Prior to August 1, 2023, investments in debt securities also included ownership in corporate debt securities, specifically, L Bonds of GWG Holdings (“L Bonds”) held by certain of the Customer ExAlt Trusts. The L Bonds had a maturity date of August 8, 2023. However, upon the effectiveness of GWG Holdings’ plan of reorganization on August 1, 2023, the investments in L Bonds converted to equity interests in the GWG Wind Down Trust, which are reflected in “other equity securities and interests,” as of September 30, 2024 and March 31, 2024.

The amortized cost, estimated fair value, and unrealized gains and losses on investments in debt securities classified as available-for-sale as of September 30, 2024 and March 31, 2024 are summarized as follows:

	September 30, 2024
(Dollars in thousands)	Amortized Cost Basis		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Other debt securities	$	2,685	$	344	$	(1,060)	$	1,969
Total available-for-sale debt securities	$	2,685	$	344	$	(1,060)	$	1,969
	March 31, 2024
(Dollars in thousands)	Amortized Cost Basis		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Other debt securities	$	2,685	$	1,337	$	(1,060)	$	2,962
Total available-for-sale debt securities	$	2,685	$	1,337	$	(1,060)	$	2,962

The table below indicates the length of time individual debt securities have been in a continuous loss position as of September 30, 2024 and March 31, 2024:

	September 30, 2024				March 31, 2024
(Dollars in thousands)	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
Other debt securities:
Less than twelve months	$	—	$	—	$	—	$	—
Twelve months or longer	1,969		1,060		1,964		1,060
Total available-for-sale debt securities with unrealized losses	$	1,969	$	1,060	$	1,964	$	1,060

The noncredit-related portion of the net unrealized gains was nominal for the three and six months ended September 30, 2024, and recognized as a component of accumulated other comprehensive income (loss). The noncredit-related portion of the net unrealized losses of $0.1 million and gains of $4.2 million for the three and six months ended September 30, 2023, respectively, was recognized as a component of accumulated other comprehensive income (loss). Unrealized net gains of $13.7 million related to the Company’s previously classified available-for-sale debt securities were reclassified from accumulated other comprehensive income and recognized within the gain (loss) on financial instruments, net line item of the consolidated statements of comprehensive income(loss) during the three and six months ended September 30, 2023, respectively.

During the three and six months ended September 30, 2024, the Company determined there was $0.5 million and $1.0 million, respectively, credit-related loss on its investment in debt securities available-for-sale. During the three and six months ended September 30, 2023, the Company determined there was no credit-related loss on its investment in debt securities available-for-sale.

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The following table is a rollforward of credit-related losses recognized in earnings for the periods presented below:

(Dollars in thousands)	Three Months Ended September 30,				Six Months Ended September 30,
	2024		2023		2024		2023
Balance, beginning of period	$	31,812	$	31,290	$	31,290	$	31,290
Credit related losses not previously recognized	—		—		522		—
Increase in amounts previously recognized	476		—		476		—
Balance, end of period	$	32,288	$	31,290	$	32,288	$	31,290

The contractual maturities of available-for-sale debt securities as of September 30, 2024 and March 31, 2024 are as follows:

	September 30, 2024				March 31, 2024
(Dollars in thousands)	Amortized Cost Basis		Fair Value		Amortized Cost Basis		Fair Value
Due in one year or less	$	1,687	$	1,969	$	1,687	$	1,964
No fixed maturity	998		—		998		998
	$	2,685	$	1,969	$	2,685	$	2,962

Other Equity Securities and Interests

Ben and certain of the Customer ExAlt Trusts hold investments in equity securities of private companies measured based on quoted prices for similar assets in active markets, including those of the GWG Wind Down Trust. On August 1, 2023, GWG Holdings’ plan of reorganization was declared effective and our investments in its common stock and L Bonds (previously accounted for as public equity securities and available-for-sale debt securities, respectively) were then transferred to an investment in the GWG Holdings Wind Down Trust. The fair value of these equity interests was nominal and $0.6 million as of September 30, 2024 and March 31, 2024, respectively. Refer to Note 6 for a reconciliation of the gain (loss) on financial instruments, net for each of the periods presented herein.

Additionally, certain of the Customer ExAlt Trusts hold investments in equity securities that do not have a readily determinable fair value. These equity securities are measured, using the measurement alternative for equity investments that do not have readily determinable fair values, at cost, less impairment, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer. The value of these equity securities was $26.7 million and $26.8 million as of September 30, 2024 and March 31, 2024, respectively. Refer to Note 6 for a reconciliation of the gain (loss) on financial instruments, net for each of the periods presented herein, which reflects any upward or downward adjustments to these equity securities for the periods presented herein. There were no impairments to these equity securities during the three and six months ended September 30, 2024 and 2023.

6.    Fair Value Measurements

Fair value is estimated based on a hierarchy that maximizes the use of observable inputs and minimizes the use of unobservable inputs. Observable inputs are inputs that reflect the assumptions that market participants would use in pricing the asset or liability developed based on market data obtained from sources independent of the reporting entity. Unobservable inputs are inputs that reflect the reporting entity’s own assumptions about the assumptions market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. The fair value hierarchy prioritizes the inputs to valuation techniques into three broad levels whereby the highest priority is given to Level 1 inputs and the lowest to Level 3 inputs.

•Level 1 - Quoted prices for identical instruments in active markets that the reporting entity has the ability to access as of the measurement date.

•Level 2 - Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations whose inputs are observable or whose significant value drivers are observable market data.

•Level 3 - Valuations for instruments with inputs that are significant and unobservable, are derived from other valuation methodologies, including option pricing models, discounted cash flow models and similar techniques, and are not based on market exchange, dealer, or broker traded transactions. Level 3 valuations incorporate certain assumptions and projections in determining the fair value assigned to such instruments.

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This hierarchy requires the use of observable market data when available. A financial instrument’s categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. Investments that are valued using NAV as a practical expedient are excluded from this hierarchy.

As of September 30, 2024 and March 31, 2024, the fair value of these investments using the NAV per share practical expedient was $301.4 million and $293.9 million, respectively. During the three months ended September 30, 2024 and 2023, a gain of $8.5 million and a nominal loss, respectively, were recognized from changes in NAV, which are recorded within the investment income (loss), net, line item of our consolidated statements of comprehensive income (loss). During the six months ended September 30, 2024 and 2023, a $19.6 million gain and $0.5 million gain, respectively, was recognized from changes in NAV, which is recorded within the investment income (loss), net, line item of our consolidated statements of comprehensive income (loss).

Financial instruments on a recurring basis

The Company’s financial assets and liabilities carried at fair value on a recurring basis, including the level in the fair value hierarchy, on September 30, 2024 and March 31, 2024 are presented below.

	As of September 30, 2024
(Dollars in thousands)	Level 1		Level 2		Level 3		Total
Assets:
Public equity securities	$	4,885	$	—	$	—	$	4,885
Other equity interests	—		20		—		20
Debt securities available-for-sale, other	—		—		1,969		1,969
Liabilities:
Convertible debt	—		—		1,936		1,936
Warrants liability	213		571		—		784
	As of March 31, 2024
(Dollars in thousands)	Level 1		Level 2		Level 3		Total
Assets:
Public equity securities	$	4,897	$	—	$	—	$	4,897
Other equity interests	—		558		—		558
Debt securities available-for-sale, other	—		998		1,964		2,962
Liabilities:
Warrant liability	178		—		—		178
Prepaid forward liability	14		—		—		14

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A reconciliation of gain (loss) on financial instruments, net for each of the periods presented herein is included in the tables below (in thousands):

	Three Months Ended September 30,				Six Months Ended September 30,
	2024		2023		2024		2023
Public equity securities:
Related party equity securities	$	—	$	(136)	$	—	$	(3,702)
Other public equity securities	745		(516)		(12)		(736)
Put options	—		(695)		—		(3,023)
Loss on initial issuance of convertible debt and warrant issuance to Yorkville	(1,700)		—		(1,700)		—
Convertible debt	225		—		225		—
Warrants liability	710		214		708		1,699
Prepaid forward liability	14		19		14		(73)
Derivative liability	—		163		—		1,581
Other equity securities and interests
Related party, fair value using quoted market prices of similar assets in active market (1)	(173)		(41,824)		(538)		(41,824)
Other, without a readily determinable fair value	—		—		(59)		(158)
Gain (loss) on financial instruments, net	$	(179)	$	(42,775)	$	(1,362)	$	(46,236)

(1) Includes realized net gains of $13.7 million related to the Company’s previously classified available-for-sale debt securities upon reclassification from accumulated other comprehensive income during the three and six months ended September 30, 2023.

The following is a description of the valuation methodologies used for financial instruments measured at fair value on a recurring basis:

Investment in other equity securities and interests

As of September 30, 2024 and March 31, 2024, the fair value of these equity interests is calculated using quoted prices for similar instruments observed in the equity capital markets and is classified as a Level 2 investment in the fair value hierarchy.

Investment in debt securities available-for-sale

Other debt securities. The fair value of these debt securities is calculated using the market approach adjusted for the recoverability of the security. The following table provides quantitative information about the significant unobservable inputs used in the fair value measure of the Level 3 other debt securities (dollars in thousands):

	Fair Value		Valuation Methodology	Unobservable Inputs	Range	Weighted Average
September 30, 2024	$	1,969	Market Approach	Enterprise value-to-revenue multiple	0.2x - 18.9x	1.80x
March 31, 2024	$	1,964	Market Approach	Enterprise value-to-revenue multiple	0.2x - 18.9x	1.77x

The following table reconciles the beginning and ending fair value of our Level 3 other debt securities:

(Dollars in thousands)	Three Months Ended September 30,				Six Months Ended September 30,
	2024		2023		2024		2023
Beginning balance	$	1,943	$	2,183	$	1,964	$	2,078
Gains (losses) recognized in accumulated other comprehensive income (loss)(1)	26		(104)		5		1
Ending balance	$	1,969	$	2,079	$	1,969	$	2,079

(1) Recorded in unrealized gain (loss) on available-for-sale debt securities.

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Convertible Debt

The Company issued convertible debentures to Yorkville as discussed in Note 7 whereby the Company elected to account for convertible debentures under the fair value option of accounting upon issuance. The Company estimated the fair value of the convertible debentures based on assumptions used in the Monte Carlo simulation model. This fair value measure is classified as Level 3 and using the following significant inputs as of the end of the reporting period: expected term (in months) - 4.2; stock price - $1.23; discount rate - 21.7%; expected volatility: 146.4%; expected dividend rate - 0%; and risk-free rate: 4.6%.

The following is a summary of the change in the fair value of the convertible debentures for the three and six months ended September 30, 2024 and 2023:

(Dollars in thousands)	Three Months Ended September 30,				Six Months Ended September 30,
	2024		2023		2024		2023
Beginning fair value	$	—	$	—	$	—	$	—
Addition during the period	2,160		—		2,160		—
Change in fair value during the period	(224)		—		(224)		—
Ending fair value	$	1,936	$	—	$	1,936	$	—

As the fair value of the freestanding instruments identified with the convertible debentures exceeded the proceeds, a loss on issuance on convertible debentures was recognized. Refer to Note 7 for further information.

Warrants

As part of the transaction with Yorkville related to the convertible debentures discussed in Note 7, the Company also issued warrants to purchase our Class A common stock. These warrants are liability classified and subject to periodic remeasurement. The fair value of these warrants issued to Yorkville are measured using the Black-Scholes option pricing model. The key inputs used in the valuation as of the end of the reporting period are: expected terms (in years) - 2.85; stock price - $1.23; exercise price: $2.63; expected volatility: 146.4%; expected dividend rate - 0%; and risk-free rate: 3.34%.

Derivative liability

The fair value of the contingent interest feature derivative liability, as discussed in Note 7, is estimated using industry standard valuation models. Level 3 inputs were utilized to value the expected future cash flows from the portfolio held by the Customer ExAlt Trust and included the use of present value techniques employing cash flow estimates and incorporated assumptions that marketplace participants would use in estimating fair values. Specifically, the model includes assumptions related to (i) equity market risk premiums, (ii) alternative asset beta to public equities, (iii) NAVs, (iv) volatilities, (v), distribution rates, and (vi) market discount rates. These expected future cash flows were bifurcated between base cash flows and enhanced return cash flows (i.e., the contingent interest) and then the enhanced cash flows were further discounted to arrive at the fair value for the contingent interest feature derivative liability. In instances where reliable market information was not available, management used historical market data proxies and assumptions to determine a reasonable fair value.

The derivative liability was extinguished along with its related debt on October 18, 2023, as discussed in Note 7.

The following table reconciles the beginning and ending fair value of our Level 3 derivative liability:

(Dollars in thousands)	Three Months Ended September 30,		Six Months Ended September 30,
	2023			2023
Beginning balance	$	2,095		$	3,513
Gains recognized in earnings(1)	(163)			(1,581)
Ending balance	$	1,932		$	1,932

(1) Recorded in (gain) loss on financial instruments, net.

There have been no transfers between levels for any assets or liabilities recorded at fair value on a recurring basis or any changes in the valuation techniques used for measuring the fair value as of September 30, 2024 and March 31, 2024, respectively.

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Financial instruments on a non-recurring basis

Equity securities without a readily determinable fair value

Certain of the Customer ExAlt Trusts hold investments in equity securities that do not have a readily determinable fair value. These equity securities are measured at cost, less impairment, plus or minus changes resulting from observable price changes in orderly transactions for an identical or a similar investment of the same issuer. The Company classifies these assets as Level 2 within the fair value hierarchy.

The value of these equity securities was $26.7 million and $26.8 million as of September 30, 2024 and March 31, 2024, respectively. Additionally, as of September 30, 2024, one security has cumulative upward adjustments of $10.8 million based upon observable price changes, which was based on a then recent equity offering and stock to stock transactions. No significant adjustments were made during the three and six months ended September 30, 2024 and 2023.

Goodwill

During the first and second quarters of fiscal 2025 and 2024, primarily as a result of a significant, sustained decline in our Class A common stock price and the Company’s related market capitalization, we concluded that it was more likely than not that the fair value of our reporting units were below their carrying amount and resulted in us performing an interim impairment assessment. As a result, we wrote the carrying value of each report unit with goodwill down to their estimated fair value and recognized a non-cash goodwill impairment charge of $0.3 million and $306.7 million during the three months ended September 30, 2024 and 2023, respectively, which is reflected in loss on impairment of goodwill in the consolidated statements of comprehensive income (loss). For the six months ended September 30, 2024 and 2023, a non-cash goodwill impairment charge of $3.7 million and $1.4 billion, respectively, was recognized in the consolidated statements of comprehensive income (loss). Prior to the goodwill impairment recorded during the first quarter of fiscal 2024, the Company had not previously recorded any impairments of goodwill.

For each interim impairment assessment, the Company computed the fair value of each reporting unit by computing the overall enterprise value of the Company by valuing its various equity instruments, primarily based on the Class A common stock price per share. The overall enterprise value was allocated to each reporting units using the discounted cash flow method to estimate the relative value of each reporting unit based on their future cash flows using a multi-year forecast, and a terminal value calculated using a long-term growth rate that was informed based on our industry, analyst reports of a public company peer set, current and expected future economic conditions and management expectations. The discount rate used to discount these future cash flows was determined using a capital asset pricing model based on the market value of equity of a public company peer set, adjusted for risk characteristics and expectations specific to the reporting unit, combined with an assessment of the cost of debt.

The discount rates used in the impairment analysis for each reporting unit ranged from: 24.8% to 25.6% for June 30, 2023 and 25.3% to 26.2% for September 30, 2023. The discount rates used for each reporting unit ranged from: 28.0% to 29.3% for June 30, 2024 and 28.0% to 29.3% for September 30, 2024. The Company applied a terminal year long-term growth rate of 3.0% for each reporting unit during each of the interim impairment assessments. Remaining goodwill at September 30, 2024 relates to Ben Custody and Ben Markets. Subsequent to the impairment analysis as of September 30, 2024, there was no excess of reporting unit fair value over carrying value for Ben Custody and approximately $0.4 million of reporting unit fair value over carrying value for Ben Markets.

The change in goodwill at each reporting unit was as follows:

	March 31, 2024		Impairment		September 30, 2024
Ben Liquidity	$	—	$	—	$	—
Ben Custody	10,896		(3,427)		7,469
Ben Insurance	—		—		—
Ben Markets	2,710		(265)		2,445
Total Goodwill	$	13,606	$	(3,692)	$	9,914

There were no other assets or liabilities measured at fair value on a non-recurring basis as of September 30, 2024 and March 31, 2024.

Carrying amounts and estimated fair values

The estimated fair value of financial instruments, whether or not recognized in the consolidated statements of financial condition, for which it is practicable to estimate those values, are disclosed below. These fair value estimates are determined based on relevant market information and information about the financial instruments. Fair value estimates are intended to

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represent the price at which an asset could be sold or the price at which a liability could be transferred. However, our estimates of many of these fair values are subjective in nature, involve uncertainties and matters of significant judgment and therefore cannot be determined with precision. Changes in assumptions could significantly affect the estimated values. Nonfinancial instruments are excluded from disclosure requirements.

The carrying amounts and estimated fair values of the Company’s financial instruments not recorded at fair value as of September 30, 2024 and March 31, 2024, were as noted in the table below:

	As of September 30, 2024
(Dollars in thousands)	Level in Fair Value Hierarchy	Carrying Amount		Estimated Fair Value
Financial assets:
Cash and cash equivalents	1	$	4,482	$	4,482
Restricted cash	1	314		314
Financial liabilities:
Debt due to related parties, net	2	122,117		138,919
Accounts payable and accrued expenses	1	112,494		112,494

	As of March 31, 2024
(Dollars in thousands)	Level in Fair Value Hierarchy	Carrying Amount		Estimated Fair Value
Financial assets:
Cash and cash equivalents	1	$	7,913	$	7,913
Restricted cash	1	64		64
Financial liabilities:
Debt due to related parties, net	2	120,505		129,327
Accounts payable and accrued expenses	1	157,157		157,157

7.    Debt

Customer ExAlt Trust Loan Payable

On March 24, 2022, Ben Liquidity transferred a $72.5 million ExAlt Loan to a third-party in return for $72.5 million of cash. The loan participation transaction resulted in a third party holding the transferred ExAlt Loan, which was previously eliminated in consolidation against the loan payable issued by a Customer ExAlt Trust for financial reporting purposes. Accordingly, the loan payable issued by the Customer ExAlt Trusts is no longer eliminated upon consolidation for financial reporting purposes and is reflected in the Customer ExAlt Trust loan payable line item on the consolidated statements of financial condition.

The Customer ExAlt Trust loan payable does not have scheduled principal or interest payments due prior to its maturity date of December 7, 2033. Prepayment of the loans, in whole or in part, is permitted without premium or penalty. A pro-rata portion of the cash flows from $352.6 million of alternative assets acquired by the Customer ExAlt Trusts on December 7, 2021 (the “Acquired Assets”) are the sole source of cash flows to be used by the Customer ExAlt Trusts to satisfy its obligations under the terms of the loan agreement. The percentage of the Acquired Assets allocated to supporting the repayment of the Customer ExAlt Trust loan payable amounted to approximately 27.8% (the “Participation Allocation”). Ben and its subsidiaries have no obligation or other requirements to repay the Customer ExAlt Trust loan payable should the pro-rata cash flows from the $352.6 million of alternative assets associated with the loan be insufficient to pay all contractual obligations owed under the terms of the loan agreement. The Customer ExAlt Trust loan payable bears interest at 12% per annum.

Termination of Customer ExAlt Trust Loan Payable

On October 18, 2023, the applicable Customer ExAlt Trusts distributed, transferred and assigned the Participation Allocation (net of a qualified charitable distribution) to a subsidiary of the holder of the Customer ExAlt Trust loan payable. As a result, all obligations owed under the Customer ExAlt Trust loan payable have been repaid and the related participation interest no longer remains outstanding. As such, the Customer ExAlt Trusts repaid the entire outstanding principal balance of the ExAlt Trust Loan Payable of $50.9 million including interest paid-in-kind, by transferring $56.7 million of alternative assets. The

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payoff of the Customer ExAlt Trust Loan Payable was accounted for as a debt extinguishment in accordance with ASC 470, Debt.

The loan agreement included a contingent interest feature whereby additional interest could be owed up to a maximum rate of 21% under certain circumstances, dependent principally on the cash flows generated by the pro rata portion of the underlying collateral. As the contingent interest feature was not based on creditworthiness, such feature was not clearly and closely related to the host instrument and was therefore bifurcated and recognized as a derivative liability with a resulting debt discount at inception. The change in the fair value of the contingent interest derivative liability resulted in a net gain of $0.2 million and $1.6 million that is reflected in gain (loss) on financial instruments, net in the consolidated statements of comprehensive income (loss) for the three and six months ended September 30, 2023, respectively. The amortization of the debt discount, which is reflected as a component of interest expense in the consolidated statements of comprehensive income (loss), was $0.2 million and $0.5 million for the three and six months ended September 30, 2023, respectively.

Convertible Debentures

On August 6, 2024, the Company, entered into a securities purchase agreement with Yorkville, in connection with the issuance and sale of convertible debentures in an aggregate principal amount of up to $4.0 million (the “Convertible Debentures”), which will be convertible into shares of the Company’s Class A common stock (as converted, the “Conversion Shares”). The Company issued $2.0 million in aggregate principal amount of Convertible Debentures upon the signing the Purchase Agreement (the “First Closing”) for proceeds of approximately $1.8 million. The Company will issue an additional $2.0 million in aggregate principal amount of Convertible Debentures for proceeds of approximately $1.8 million on or before the first business day after the date the registration statement with the SEC registering the resale of the Conversion Shares and the Warrant Shares (as defined below) is declared effective by the SEC (the “Second Closing”). The Second Closing had not occurred as of September 30, 2024. The Convertible Debentures were or will be issued at an original issue discount of 10%.

The Convertible Debentures do not bear interest, subject to a potential increase to 18.0% per annum (or the maximum amount permitted by applicable law) upon the occurrence of certain events of default. The Convertible Debentures will mature on February 6, 2025 (the “Maturity Date”). The Company will be required to make monthly cash payments of principal in the amount of $1.3 million (or such lesser amount as may then be outstanding) plus all accrued and unpaid interest as of such payment. Such payments will commence 30 days following the Second Closing and will continue on a monthly basis thereafter until the Convertible Debentures are repaid in full, subject to certain conditions as described in the Convertible Debenture. The Convertible Debentures are convertible at the option of the holder into Class A common stock equal to the applicable Conversion Amount (as in the Convertible Debenture) divided by $3.018 (the “Conversion Price”). The maximum amount of shares issuable upon conversion of the Convertible Debentures is 1,325,382.

The Convertible Debenture provides the Company, subject to certain conditions, with an optional redemption right pursuant to which the Company, upon 10 trading days’ prior written notice to Yorkville (the “Redemption Notice”), may redeem in cash, in whole or in part, all amounts outstanding under the Convertible Debentures prior to the Maturity Date; provided that the volume weighted average price on the date such Redemption Notice is delivered is less than the Conversion Price at the time of the Redemption Notice. The redemption amount shall be equal to the outstanding principal balance being redeemed by the Company, plus the redemption premium of 10% of the principal amount being redeemed, plus all accrued and unpaid interest in respect of such redeemed principal amount.

Additionally, pursuant to the terms of the Purchase Agreement, the Company agreed to issue the warrants to Yorkville (each a “Yorkville Warrant” and collectively, the “Yorkville Warrants”) to purchase up to 1,325,382 shares of Class A common stock at an exercise price of $2.63, which shall be exercisable into Class A common stock for cash (collectively, the “Warrant Shares”). At the First Closing, the Company issued a Yorkville Warrant to purchase up to 662,691 shares of Class A common stock, and at the Second Closing, the Company will issue an additional Yorkville Warrant to purchase up to 662,691 shares of Class A common stock.

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Contemporaneously with the execution and delivery of the Purchase Agreement, certain of the Company’s subsidiaries entered into a global guaranty agreement in favor of Yorkville with respect to the Company’s obligations under the Purchase Agreement, the Convertible Debentures and the Yorkville Warrants.

The Company elected to account for the Convertible Debenture under the fair value option of accounting upon issuance. The proceeds were allocated to all freestanding instruments recorded at fair value. As the fair value of the freestanding instruments exceeded the proceeds, an aggregate loss of $1.7 million during the three and six months ended September 30, 2024 was recognized in gain (loss) on financial instruments, net in the consolidated statements of comprehensive income (loss). As of September 30, 2024, the fair value of the Convertible Debenture was $1.9 million and is included in convertible debt in the consolidated statements of financial condition.

The primary reason for electing the fair value option is for simplification of accounting for the Convertible Debenture at fair value in its entirety versus bifurcation of the embedded derivatives. The fair value was determined using a Monte Carlo valuation model. Refer to Note 6 for further information on the Convertible Debentures.

The Yorkville Warrants were required to be classified as a liability and are subject to periodic remeasurement. The fair value at the date of issuance, measured using the Black-Scholes option pricing model, was approximately $1.3 million. The key inputs used in the valuation as of the initial valuation date were: expected terms (in years) - 3.0; stock price - $2.63; exercise price: $2.63 expected volatility: 130.2%; expected dividend rate: 0%; and risk-free rate: 3.58%.

8.    Debt Due to Related Parties

As of September 30, 2024 and March 31, 2024, the Company’s debt due to related parties consisted of the following:

(Dollars in thousands)	September 30, 2024		March 31, 2024
First Lien Credit Agreement	$	21,260	$	21,264
Second Lien Credit Agreement	72,983		72,996
Term Loan	26,475		25,000
Other borrowings	2,235		2,180
Unamortized debt discount, net	(836)		(935)
Total debt due to related parties	$	122,117	$	120,505

First and Second Lien Credit Agreements

On August 13, 2020, Ben, through its subsidiary Beneficient Capital Company II, L.L.C. (formerly known as Beneficient Capital Company, L.L.C.) (“BCC”), executed the Second Amended and Restated First Lien Credit Agreement (“First Lien Credit Agreement”) and the Second Amended and Restated Second Lien Credit Agreement (“Second Lien Credit Agreement”) collectively, (the “Second A&R Agreements”) with its lender, HCLP Nominees, L.L.C (“HCLP”), to amend its First Lien Credit Agreement and Second Lien Credit Agreement dated September 1, 2017 and December 28, 2018, respectively. The Second A&R Agreements have been further amended from time to time to extend the maturity date and defer principal and interest payments, among other things. In connection with the amendments to the Second A&R Agreements, Ben agreed to pay extension fees on a percentage of the amount outstanding under the credit agreements as of the date of the respective amendment.

On March 24, 2022, Ben executed Consents and Amendments No. 4 to the Second A&R Agreements with HCLP, which, among other things, (i) deferred the payment of accrued and unpaid interest to March 24, 2022, (ii) evidenced the terms agreed to in the December 1, 2021 term sheet, (iii) extended the maturity date of the loans to August 31, 2023, and (iv) established revised installment payments for each loan of $5.0 million due on May 10, 2022, August 10, 2022, December 10, 2022, and March 10, 2023, so long as each payment does not cause the Company to incur a going concern, and (v) amended the occurrence of an event of default to require notice from HCLP on almost all potential defaults listed under the Second A&R Agreements. In addition, Ben agreed to pay fees totaling approximately 6.5% of the outstanding principal before giving effect to the amendments.

On February 15, 2023, Ben executed those certain Amendment No. 5 to Second Amended and Restated Credit Agreement and Consent and Amendment No. 5 to Second Amended and Restated Second Lien Credit Agreement with HCLP, pursuant to which, as required by Amendments No. 4, certain Ben subsidiaries became subsidiary guarantors and entered into those certain Amended and Restated Security and Pledge Agreement (First Lien) and Amended and Restated Security and Pledge Agreement (Second Lien), that certain first lien Guaranty and that certain second lien Guaranty.

On June 5, 2023, BCH, entered into those certain Consent and Amendment No. 6 to Second Amended and Restated Credit Agreement, which amended the First Lien Credit Agreement, and Consent and Amendment No. 6 to Second Amended and

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Restated Second Lien Credit Agreement (collectively, the “Sixth Amendments”), which amended the Second Lien Credit Agreement, each among BCH, HCLP and the other parties thereto. Among other things, the Sixth Amendments (i) allowed for the consummation of the Transactions pursuant to the Business Combination Agreement, and effective as June 7, 2023 (ii) amended the definition of “Change of Control” (as defined therein), and (iii) provided that Beneficient will be the “Parent” thereunder.

On July 12, 2023, BCH, entered into (a) that certain Amendment No. 7 to the First Lien Amendment, which amended the First Lien Credit Agreement, and (b) that certain Amendment No. 7 to Second Lien Amendment (together with the First Lien Amendment, the “Seventh Amendments”), which amended the Second Lien Credit Agreement, each among BCH, HCLP and the other parties thereto. Among other things, the Seventh Amendments (i) modified the interest rate to a fixed rate of 9.5%, (ii) extended the maturity dates of the First Lien Amendment and the Second Lien Amendment to September 15, 2024 and September 15, 2027, respectively, and (iii) agreed to installment payments on the First Lien Amendment of $5.0 million on each of March 29th, June 28th, September 29th, and December 29th of each year for so long as the obligations remain outstanding, and so long as such payments do not cause a going concern. No payments will be made on the Second Lien Amendment until the obligations on the First Lien Amendment have been fully satisfied. Effective on July 31, 2024, the maturity date of the First Lien Credit Agreement was extended from September 15, 2024 to February 1, 2025, and certain mandatory prepayment obligations thereunder were waived by HCLP until February 1, 2025. No payments of principal or interest have been made on the First Lien or Second Lien Credit Agreements since an interest payment made in March 2023. Accrued interest on the First Lien or Second Lien Credit Agreements of $14.1 million as of September 30, 2024 and $9.5 million as of March 31, 2024 is included in other liabilities in the consolidated statement of financial condition.

As part of the Seventh Amendments, Ben agreed to pay fees totaling approximately $0.1 million. During the six months ended September 30, 2024 and 2023, no deferred financing costs were paid to HCLP. As of September 30, 2024 and March 31, 2024, the unamortized premium related to the Second A&R Agreements was $0.4 million and $0.5 million, respectively. Through September 30, 2024, all required principal and interest payments due under the Second A&R Agreements have been paid.

In connection with the Second A&R Agreements, Beneficient Holdings, Inc. (“BHI”), which owns a majority of the BCH Class S Ordinary Units, BCH Preferred A.1, and FLP Subclass 1 Unit Accounts issued by BCH, will grant certain tax-related concessions to HCLP as may be mutually agreed upon between the parties. In exchange for the tax-related concessions, 5.0% of BHI’s BCH Preferred A.1, which will be held by HCLP, may convert to BCH Preferred A.0. In addition, recipients of a grant of BCH Preferred A.1 from BHI will have the right to put an amount of BCH Preferred A.1 to Ben equal to any associated tax liability stemming from any such grant; provided that the aggregated associated tax liability shall not relate to more than $30.0 million of grants of BCH Preferred A.1 from BHI. No such liability existed as of September 30, 2024 and March 31, 2024.

The Second A&R Agreements and ancillary documents contain covenants that (i) prevent Ben from issuing any securities senior to the BCH Preferred A.0 or BCH Preferred A.1; (ii) prevent Ben from incurring additional debt or borrowings greater than $10.0 million, other than trade payables, while the loans are outstanding; and (iii) prevent, without the written consent of HCLP, GWG Holdings from selling, transferring, or otherwise disposing of any BCH Preferred A.1 held as of May 15, 2020, other than to its subsidiary GWG DLP Funding V, LLC. GWG no longer holds any BCH Preferred A.1 Unit Accounts. Ben obtained consents for the Second A&R Agreements from HCLP in connection with the HH-BDH Credit Agreement (as defined below).

Term Loan

On October 19, 2023, Beneficient Financing, L.L.C. (the “Borrower”), a wholly owned subsidiary of the Company, and BCH, as guarantor (the “Guarantor” and together with the Borrower, the “Loan Parties”), entered into a Credit and Guaranty Agreement (as amended, the “HH-BDH Credit Agreement”) with HH-BDH L.L.C. (the “HH-BDH”), as administrative agent. HH-BDH’s sole member is Hicks Holdings. The managing member of Hicks Holdings is Mr. Thomas O. Hicks, a member of the Company’s Board of Directors. HH-BDH funded the amounts under the HH-BDH Credit Agreement with the proceeds of a third-party financing (the “Financing”).

The HH-BDH Credit Agreement provides for a three-year term loan in the aggregate principal amount of $25.0 million (the “Term Loan”), which was fully drawn on closing. On August 16, 2024, that certain Amendment No. 1 and Waiver No. 1 to the Credit and Guaranty Agreement and Each Other Loan Document (the “Amendment,” and the Credit Agreement, as amended by the Amendment, the “Amended Credit Agreement”), was executed to add a subsequent term loan of $1.7 million, which was fully drawn upon the closing of the Amendment (together with the Term Loan, the “Loans”).

The Amended Credit Agreement also requires the Borrower to prepay the outstanding principal balance of the Loans in the amount of $200 thousand, $200 thousand, $200 thousand, $200 thousand and $875 thousand on each of September 7, 2024, October 7, 2024, November 7, 2024, December 7, 2024 and December 31, 2024, respectively. Furthermore, on each Required

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Payment Date (defined in the Amended Credit Agreement as December 31, 2024 and the last business day of each calendar month thereafter), the Borrower shall prepay the outstanding principal balance of the Loans by an amount equal to the lesser of (a) the Total Portfolio Net Receipts (as defined in the Amended Credit Agreement) for the most recently ended period beginning on the 16th day of each month and ending on the 15th day of the immediately following month, and (b) as of each Required Payment Date, an amount equal to the excess, if any, of (x)(i) the number of Required Payment Dates occurring on or prior to such Required Payment Date, multiplied by (ii) $500,000, minus (y) the amount of all Excess Payments (as defined in the Amended Credit Agreement) made prior to such Required Payment Date. Additionally, the Amended Credit Agreement requires the Borrower to make certain minimum monthly payments to prepay the balance of the Loans.

Borrowings under the HH-BDH Credit Agreement, as amended, bear interest, at the Company’s option, calculated according to a base rate, adjusted term SOFR rate, or adjusted daily simple SOFR rate, plus an applicable margin, subject to a Maximum Rate determined by applicable law in the State of New York. The Company elected the adjusted daily simple SOFR rate with a margin of 6.5% for the first two years and 5.5% for the third year for the Loans. Accrued and unpaid interest is payable monthly, upon prepayment, and at maturity.

The Loans will mature on October 19, 2026, and all remaining outstanding principal amounts and accrued and unpaid interest thereon shall be due and payable on such date. As of September 30, 2024 and March 31, 2024, the unamortized discount related to the Term Loan was $1.2 million and $1.5 million, respectively.

The Term Loan is secured in part by pledges of: (a) substantially all of the assets of the Borrower, (b) the Guarantor’s equity interests in the Borrower, (c) 97.5% of the equity interests held by The EP-00117 Custody Trust, a Delaware statutory trust known as the “Custody Trust,” in certain entities that hold interests in private investment funds, which, as of September 30, 2024 and March 31, 2024, represented approximately 39.1% and 41.5%, respectively, of all assets held by the Customer ExAlt Trusts and (d) certain deposit accounts.

The HH-BDH Credit Agreement, as amended, contains customary representations, warranties, affirmative and negative covenants, including covenants which restrict the ability of the Loan Parties, the Custody Trust and certain affiliated entities to, among other things, create liens, incur additional indebtedness, make certain restricted payments and engage in certain other transactions, in each case subject to certain customary exceptions. In addition, the HH-BDH Credit Agreement, as amended, contains certain financial maintenance covenants, including a debt service coverage ratio of 2.00 to 1.00 and beginning December 31, 2024, a minimum liquidity requirement of $4.0 million, measured on the last day of each month.

Additionally, the HH-BDH Credit Agreement, as amended, contains customary events of default relating to, among other things, payment defaults, breach of covenants, cross default of material indebtedness, bankruptcy-related defaults, judgment defaults, the occurrence of certain change of control events, and the Class A common stock being suspended from trading for more than two consecutive days or delisting from Nasdaq. The occurrence of an event of default may result in the acceleration of repayment obligations with respect to any outstanding principal amounts and foreclosure on the collateral. As part of the Amendment, certain events of default resulting from the occurrence of the Acknowledged Defaults (as defined in the Amendment) were waived, provided that in the case of the expense reimbursement default, the Borrower must cure the expense reimbursement default upon the earlier of (i) November 1, 2024 and (ii) two business days following the effectiveness of Company’s registration statement for resale of the shares of Class A common stock, underlying the convertible debentures and warrants described in Note 7.

Hicks Holdings will receive the following fees and payments in connection with the Loans:

•A non-refundable fee in an amount equal to 1.0% of the aggregate commitments under the Term Loan upon execution of the HH-BDH Credit Agreement (the “Closing Date”);

•On each Payment Date, from and including: (1) from the Closing Date until the second anniversary of the Closing Date, an interest payment at an interest rate equal to 3.0% per annum; and (2) from the second anniversary of the Closing Date until the loans are repaid in full, interest payments at an interest rate equal to 2.0% per annum (such interest is in included in HH-BDH’s receipt of interest payments as described above);

•If any amounts under the HH-BDH Credit Agreement are prepaid prior to the scheduled Make Whole Date, including by reason of acceleration, a make-whole payment equal to the product of the principal amounts being repaid and the applicable interest rate plus 3.0% and the number of calendar days between the date of such prepayment and the scheduled Make Whole Date, divided by 360; and

•Certain fees, payments and expenses incurred by Hicks Holdings in connection with the Financing.

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Aggregate maturities of principal on the debt due to related parties for the next five fiscal years ending March 31 are as follows:

(Dollars in thousands)	Debt Due to Related Parties
2025	$	23,495
2026	—
2027	26,475
2028	72,983
2029	—

9.    Share-based Compensation

As of September 30, 2024 and March 31, 2024, the Company has outstanding share-based awards under the Beneficient Management Partners, L.P. (“BMP”) Equity Incentive Plan (the “BMP Equity Incentive Plan”), the Beneficient 2023 Long Term Incentive Plan (the “2023 Incentive Plan”), and BCH Preferred A.1, as more fully described below.

Following stockholder approval on April 18, 2024, the Company effected a reverse stock split of our Class A and Class B common stock at a ratio of 1-for-80 and a simultaneous proportionate reduction in the authorized shares of each class of Common Stock as required by Nevada Revised Statues Section 78.207. All outstanding restricted stock units and restricted equity units, as well as the Company’s equity incentive plans have been retroactively adjusted to reflect the 1-for-80 Reverse Stock Split.

BMP Equity Incentive Plan

The Board of Directors of Ben Management, Ben’s general partner prior to the Conversion, adopted the BMP Equity Incentive Plan in 2019. Under the BMP Equity Incentive Plan, certain directors and employees of Ben are eligible to receive equity units in BMP, an entity affiliated with the Board of Directors of Ben Management, in return for their services to Ben. The BMP equity units eligible to be awarded to employees is comprised of BMP’s Class A Units and/or BMP’s Class B Units (collectively, the “BMP Equity Units”). As of September 30, 2024, the Board has authorized the issuance of up to 119,000,000 units each of the BMP Equity Units. All awards are classified in equity upon issuance.

The BMP Equity Units include awards that fully vest upon grant and awards that are subject to service-based vesting of a four-year period from the date of hire. Expense associated with the vesting of these awards is based on the fair value of the BMP Equity Units on the date of grant. Compensation cost is recognized for the granted awards on a straight-line basis using the graded vesting method, and forfeitures are accounted for at the time that such forfeitures occur. Expense recognized for these awards is specially allocated to certain holders of redeemable noncontrolling interests.

The fair value of the BMP Equity Units was determined on the grant-date using a probability-weighted discounted cash flow analysis. This fair value measurement is based on significant inputs not observable in the market and thus represents a Level 3 measurement within the fair value hierarchy. The resultant probability-weighted cash flows are then discounted using a rate that reflects the uncertainty surrounding the expected outcomes, which the Company believes is appropriate and representative of a market participant assumption, and for lack of marketability given the underlying units of the awards are not publicly traded.

There were no BMP Equity Units granted during the six months ended September 30, 2024 or September 30, 2023.

2018 Ben Equity Incentive Plan

The Ben Equity Incentive Plan was adopted in September 2018 (the “2018 Ben Equity Incentive Plan”). Under the 2018 Ben Equity Incentive Plan, Ben was permitted to grant equity awards in the form of restricted equity units (“REUs”) up to a maximum of 160,141, representing ownership interests in BCG Common Units. Effective as of the Conversion, the Company assumed obligations under the outstanding REUs under the 2018 Ben Equity Incentive Plan and agreed to issue shares of Class A common stock upon settlement of such outstanding REUs. Settled awards under the 2018 Ben Equity Incentive Plan dilute BCG’s Common Unitholders. The total number of BCG Common Units that were issuable under the 2018 Ben Equity Incentive Plan was equivalent to 15% of the number of fully diluted BCG Common Units outstanding, subject to annual adjustment. All awards were classified in equity upon issuance. Following the Business Combination, no additional awards may be issued under the 2018 Equity Incentive Plan and all outstanding awards are settleable at a ratio of 1.25 shares of the Class A common stock for each restricted equity unit.

During the third calendar quarter of 2020, 6,438 units were granted to a director subject to a performance condition. The performance condition was met upon public listing in June 2023 and expense for vested units was recognized in June of 2023

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in the amount of $5.2 million. The recognition of the remaining compensation cost will be recognized over the remaining vesting period. Total recognized compensation cost related to these awards for the three and six months ended September 30, 2024 is nil and $0.3 million, respectively. Total recognized compensation cost related to these awards for the three and six months ended September 30, 2023 is approximately $0.3 million and $5.5 million, respectively. The originally granted units were increased at a rate of one-to-1.25 units, or by 1,610 units, upon public listing and effectiveness of the 2023 Incentive Plan. As of September 30, 2024, there is no remaining unrecognized compensation cost related to this award.

2023 Incentive Plan

On June 6, 2023, the Company’s Board adopted the 2023 Incentive Plan, which was approved by the Company’s stockholders. Under the 2023 Incentive Plan, Ben is permitted to grant equity awards in the form of restricted stock units (“RSUs”). Subject to certain adjustments, the aggregate number of shares of Class A common stock expected to be issuable under the 2023 Incentive Plan in respect of awards will be equal to 15% of the aggregate number of fully diluted shares issued and outstanding, subject to quarterly adjustment. Settled awards under the 2023 Incentive Plan dilute common stockholders. All awards are classified in equity upon issuance.

Awards are generally subject to service-based vesting over a multi-year period from the recipient’s grant date, though some awards may fully vest upon grant date, or be subject to performance conditions. While providing services to Ben, if applicable, certain of these awards are subject to minimum retained ownership rules requiring the award recipient to continuously hold RSUs equal to at least 15% of their cumulatively granted awards.

During the quarter ended September 30, 2024, an aggregate of 817,619 RSUs were awarded to employees of the Company, which fully vested on the date of grant. The Company expensed the full grant date fair value of the RSUs of approximately $2.4 million in the quarter ended September 30, 2024.

Additionally, during the quarter ended September 30, 2024, the Company granted to a director (i) 100,000 stock options with an exercise price of $1.23 per share of Class A common stock, which vest ratably over two years, and (ii) 138,212 RSUs, which vest ratably over one year. The stock options have a grant date fair value of $0.97, calculated using a Black Scholes option pricing model.

Preferred Equity

On April 1, 2022, a certain director was assigned BCH Preferred A.1 with a grant date of December 31, 2021 and having an account balance of $5.7 million (the “Initial Grant”). Further, effective as of April 3, 2022, the director was assigned additional BCH Preferred A.1 (the “Additional Grant” and together with the Initial Grant, the “BHI Grants”) with a grant date of December 31, 2021 and having an account balance of $3.8 million. The Initial Grant is subject to a service condition, which requires compensation cost to be recognized over the explicit, substantive service vesting period that extends after the grant date. The Additional Grant was fully vested upon issuance.

In order to provide that certain director with cash to cover any tax liability arising from the BHI Grants, BCH and the director entered into a Unit Account Redemption Agreement, effective as of April 3, 2022, whereby BCH was required to purchase and redeem from that certain director all of the BCH Preferred A.1 granted to the director pursuant to the BHI Tax Grant for a purchase price of $3.8 million, in cash. Such redemption occurred in full on June 10, 2022.

Commissions

Certain of our employees’ commission compensation is in the form of common stock. Such shares granted to employees are subject to service-based vesting conditions over a multi-year period from the recipient’s grant date. Awards granted through June 8, 2023 were also subject to a performance condition, which was met on June 8, 2023 when Ben became publicly listed.

The following table presents the components of share-based compensation expense, included in employee compensation and benefits, recognized in the consolidated statements of comprehensive income (loss) for the three and six months ended September 30, 2024 and 2023:

	Three Months Ended September 30,				Six Months Ended September 30,
(dollars in thousands)	2024		2023		2024		2023
BMP equity units	$	144	$	569	$	257	$	1,244
Restricted stock units	3,179		7,318		4,011		16,041
Preferred equity	—		286		—		572
Other(1)	41		330		90		17,647
Total share-based compensation	$	3,364	$	8,503	$	4,358	$	35,504

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(1) The year-to-date period September 30, 2023 includes $15.0 million of compensation recognized related to the BCG Recapitalization and $2.6 million recognized for equity based compensation issued to employees for Ben Liquidity transactions.

Unrecognized share-based compensation expense totaled $5.1 million as of September 30, 2024, which we expect to recognize based on scheduled vesting of awards outstanding at September 30, 2024. The following table presents the share-based compensation expense expected to be recognized over the next five fiscal years ending March 31 for awards outstanding as of September 30, 2024:

(dollars in thousands)	BMP		RSU		Commissions		Total
Six months ending 2025	$	187	$	1,163	$	95	$	1,445
2026	225		2,023		79		2,327
2027	14		913		—		927
2028	—		384		—		384
2029	—		—		—		—
Total	$	426	$	4,483	$	174	$	5,083

10.    Equity

Below is a description of the outstanding classes of the equity of the Company, including quasi-equity amounts that are required to be reported as temporary equity between the liabilities and equity sections on the consolidated statements of financial condition. As of September 30, 2024, the 9th Amended and Restated LPA of BCH (“BCH LPA”), as amended, and the articles of incorporation and bylaws of Beneficient, govern the terms of these equity securities, as applicable. The Company’s governing documents authorize the issuance of additional classes of equity. All equity interests of BCH are limited partnership interests.

Common Stock:

Voting. Each holder of our Class A common stock is entitled to one vote per each share of Class A common stock held of record by such holder on all matters on which stockholders generally are entitled to vote, and each holder of our Class B common stock is entitled to 10 votes per share on all matters on which stockholders generally are entitled to vote. Holders of shares of common stock vote as a single class, except for certain matters for which only holders of Class B common stock are entitled to vote.

Dividends. Subject to preferences that may apply to any outstanding shares of preferred stock, holders of Common Stock are entitled to receive ratably any dividends that our Board may declare out of funds legally available for that purpose on a non-cumulative basis; provided, however, that in the case of any dividends in Common Stock, holders of Class A common stock are entitled only to receive Class A common stock and holders of Class B common stock are entitled only to receive Class B common stock. In no event will the shares of either Class A common stock or Class B common stock be split, divided, or combined unless the outstanding shares of the other class are proportionally split, divided or combined.

Conversion. Shares of Class A common stock are not convertible into any other shares of our capital stock. Shares of Class B common stock are convertible into shares of Class A common stock at any time at the option of the holder or upon any transfer, except for certain transfers described in our articles of incorporation.

Standby Equity Purchase Agreement

On June 27, 2023, the Company entered into the SEPA with Yorkville, whereby the Company has the right, but not the obligation, to sell to Yorkville up to $250.0 million of its shares of the Company’s common stock at the Company’s request any time during the 36 months following the execution of the SEPA, subject to certain conditions. The Company expects to use the net proceeds received from this for working capital and general corporate purposes. The Company paid a structuring fee in cash and a commitment fee in an amount equal to $1.3 million by issuing 5,703 shares of Class A common stock in July 2023.

On September 29, 2023, a resale registration statement on Form S-1 was declared effective by the SEC, thereby permitting sales of Class A common stock to Yorkville under the SEPA. Subsequent to the effectiveness of this resale registration statement and through September 30, 2024, the Company sold a total of 498,125 Class A common shares for a total of $3.9 million in net proceeds, including 449,307 Class A common shares being sold in the current fiscal year for net proceeds of $2.6 million. The prior resale registration statement on Form S-1 was terminated on September 27, 2024. A new resale registration statement on Form S-1, registering approximately 200.1 million shares for resale under the SEPA, was declared effective by the SEC on November 12, 2024.

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Preferred Stock:

Under the terms of our articles of incorporation, our Board is authorized to issue up to 250 million shares of preferred stock in one or more series. As of September 30, 2024, 50 million shares of preferred stock are designated as shares of Series A preferred stock and approximately 4 million are designated as Series B preferred stock pursuant to a certificates of designation.

Series A Preferred Stock

As of September 30, 2024 and March 31, 2024, there were no shares of Series A preferred stock issued and outstanding, respectively.

Maturity. Subject to the redemption and conversion rights described below, shares of Series A preferred stock are perpetual securities.

Priority. Shares of Series A preferred stock rank senior to shares of Common Stock with respect to dividend rights and/or distribution rights upon the liquidation, winding up or dissolution, as applicable, of Beneficient.

Voting. Holders of Series A preferred stock are not entitled to vote on any matter, expect as required by law.

Dividends. Holders of Series A preferred stock are entitled to receive ratably any dividends that our Board declares and pays on the Common Stock, on an as-converted basis, when paid to holders of Common Stock. Beneficient may, subject to customary restrictions, but is not required to, declare or pay any dividends solely on shares of Series A preferred stock.

Liquidation or Dissolution. The initial liquidation preference of Series A preferred stock is $0.001 per share, plus any declared but unpaid dividends (the “Liquidation Preference”). In the event of our liquidation, dissolution or winding up, holders of Series A preferred stock are entitled to receive, per share of Series A preferred stock, the Liquidation Preference or, prior to the Series A Preferred Stock Conversion Date, if a greater amount, the amount such holder would have received had their shares of Series A preferred stock converted into Class A common stock immediately prior to such liquidation event.

Conversion, Transferability and Exchange. Per the terms of the articles of incorporation, because the Series A preferred stock is not expected to be publicly listed, each share of the Series A preferred stock will automatically convert into one-quarter of a share of Class A common stock upon issuance.

Redemption. Beneficient may redeem, ratably, in whole or, from time to time in part, the shares of Series A preferred stock of any holder then outstanding at the Liquidation Preference in cash. Holders of shares of Series A preferred stock do not have the right to require Beneficient to redeem their shares of Series A preferred stock under any circumstances.

Series B Preferred Stock:

The Series B preferred stock has various subclasses, however, the general rights, preferences, privileges and restrictions of these equity securities are described below. Each of the Series B preferred stock has a par value of $0.001 per share. The most significant difference in the various subclasses of the Series B preferred stock pertains to the conversion rate and the mandatory conversion periods, both of which are described below. During fiscal year 2024, the Company issued Series B preferred stock comprising subclasses No. 1 through No. 4 in the amounts of 3,768,995; 200,000; 20,000; and 6,932 shares, respectively. No additional Series B preferred stock has been issued in the current fiscal year.

On October 3, 2023, 3,768,995 shares of Series B-1 preferred stock converted into 172,574 shares of Class A common stock at a price per share of approximately $218.40. No other Series B preferred stock has converted through September 30, 2024.

As of September 30, 2024 and March 31, 2024, there were a total of 226,932 shares of Series B preferred stock, issued and outstanding, respectively.

Maturity. Subject to the redemption and conversion rights described below, shares of Series B preferred stock are perpetual securities.

Priority. Shares of Series B preferred stock rank, with respect to dividend rights and/or distribution rights upon the liquidation, winding up or dissolution, as applicable, of Beneficient as: (i) senior to shares of Common Stock; (ii) pari passu with Series A Preferred Stock; (iii) senior, pari passu or junior with respect to any other series of preferred stock, as set forth in the terms with respect to such preferred stock; and (iv) junior to all existing and future indebtedness of the Beneficient.

Voting. Holders of Series B preferred stock are not entitled to vote on any matter, expect as required by law.

Dividends. Holders of Series B preferred stock are entitled to receive ratably any dividends that our Board declares and pays on the Common Stock, on an as-converted basis, when paid to holders of Common Stock. Beneficient may, subject to customary restrictions, but is not required to, declare or pay any dividends solely on shares of Series B preferred stock.

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Liquidation or Dissolution. The initial liquidation preference of Series B preferred stock is $10.00 per share, plus any declared but unpaid dividends (the “Series B Liquidation Preference”). In the event of our liquidation, dissolution or winding up, holders of Series B preferred stock are entitled to receive, per share of Series B preferred stock, the Series B Liquidation Preference amount such holder would have received had their shares of Series B preferred stock converted into Class A common stock immediately prior to such liquidation event.

Conversion, Transferability and Exchange. In the event of specified extraordinary transactions, as a result of which shares of Class A common stock would be converted into, or exchanged for, stock, other securities or other property or assets (including cash or any combination thereof), each share of Series B preferred stock outstanding immediately prior to such event will, without the consent of the holders of Series B preferred stock, become convertible into the kind of stock, other securities or other property or assets that such holder would have been entitled to receive if such holder had converted its shares of Series B preferred stock into shares of Class A common stock immediately prior to such event.

Optional Conversion. The conversion price is determined generally based on a volume weighted price of the Class A common stock at the time the Series B preferred stock is issued. The conversion price for the various subclasses of Series B preferred stock ranged from $5.38 to $436.80 (the “Conversion Price”). Each share of Series B preferred stock is convertible at the option of the holder thereof into a number of shares of Class A common stock that is equal to $10.00 divided by Conversion Price then in effect as of the date of such notice (the “Conversion Rate”). The Conversion Price shall be subject to reset on certain dates (generally monthly) following the date of issuance of the Series B preferred stock, subject to adjustment, including the reset Conversion Price cannot adjust lower than 50% of the initial Conversion Price or generally, higher than the initial Conversion Price. Based on the shares of Series B preferred stock outstanding as of September 30, 2024, the maximum number of Class A common shares that can be issued upon conversion of the Series B preferred stock is 165,037 shares.

Mandatory Conversion. Each outstanding share of Series B preferred stock will automatically convert into a number of shares of Class A common stock (the “Mandatory Conversion”) at the Conversion Rate then in effect on the date that is the earliest to occur of: (a) 210 calendar days (for the Series B-1 preferred stock) and 60 months (for the other Series B preferred stock subclasses) after the Original Issue Date, subject to certain conditions, (b) if the conditions of clause (a) are not met on the date that is 210 calendar days (for the Series B-1 preferred stock) and 60 months (for the other Series B preferred stock subclasses) following the Original Issue Date, the first date thereafter on which any shares of Series B-1 preferred stock may be resold pursuant to Rule 144 under the Securities Act or the Resale Registration Statement has become effective and, applicable only to the Series B-1 preferred stock, (c) the one year anniversary of the Original Issue Date. The Series B-1 preferred stock shall not convert into Class A common stock to the extent such conversion would cause a holder to exceed 9.99% (the “Beneficial Ownership Limitation”) of the number of shares of the Class A common stock outstanding immediately after giving effect to conversion, while the other subclasses of the Series B preferred stock have a 4.99% Beneficial Ownership Limitation.

Redeemable Noncontrolling Interests:

Preferred Series A Subclass 0 Unit Accounts

The BCH Preferred A.0 receives a quarterly guaranteed payment calculated as 6% of the BCH Preferred A.0’s initial capital account balance on an annual basis, or 1.50% per fiscal quarter. The BCH Preferred A.0 does not receive any allocations of profits, except to recoup losses previously allocated. The guaranteed payment to BCH Preferred A.0 is not subject to available cash and has priority over all other distributions made by BCH. BCH and the holders of the BCH Preferred A.0 entered into an agreement to defer the guaranteed payment to November 15, 2024; provided that such a guaranteed payment may be made prior to November 15, 2024 if the Audit Committee of the Board of Directors determines that making such payment, in part or in full, would not cause Ben to incur a going concern issue. The guaranteed payment accrual totaled $46.4 million and $37.7 million as of September 30, 2024 and March 31, 2024, respectively, and is included in the accounts payable and accrued expenses line item of the consolidated statements of financial condition.

Additionally, the BCH Preferred A.0 has the ability under the BCH LPA to elect, by a majority of holders of BCH Preferred A.0, to receive a full return of capital senior to any other security if an event causing mandatory returns of capital occurs.

The BCH Preferred A.0 can be converted into Class S Units at the election of the holder, at a price equal to the average of (i) $840.00, and (ii) the volume-weighted average closing price of Class A common stock for the twenty (20) days preceding the applicable exchange date; provided, that from the effectiveness of the BCH LPA through December 31, 2027, such conversion price shall not be less than $840.00.

Finally, a holder of BCH Preferred A.0, subsequent to January 1, 2023, may elect to require a redemption by BCH of up to 12.5% of his or her respective initial BCH Preferred A.0 capital account for any rolling twelve-month period; provided that such holder shall not be permitted to redeem more than 50% of such holder’s initial BCH Preferred A.0 capital account in the aggregate. Subsequent to January 1, 2023, if a holder of BCH Preferred A.0 continues to hold BCH Preferred A.1, such

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holder may elect on a quarterly basis to convert additional BCH Preferred A.1 held by such holder to BCH Preferred A.0 up to an amount equal to 12.5% of such holder’s initial BCH Preferred A.0 capital account; provided that such holder’s post-conversion capital account balance in respect of all BCH Preferred A.0 held by such holder does not exceed such holder’s initial BCH Preferred A.0 capital account.

On September 30, 2024, the BCH LPA was amended to re-designate fifty percent (50%) of the aggregate capital account balances in the BCH Preferred A.0 to the BCH Preferred A.0 Non-Redeemable. The remaining fifty percent (50%) of the capital account balances in the BCH Preferred A.0 Accounts remain redeemable. As a result of this redesignation, approximately $125.5 million of temporary equity was reclassified to permanent equity as of September 30, 2024.

As of September 30, 2024, the BCH Preferred A.0 Redeemable are recorded in the consolidated statements of financial condition in the redeemable noncontrolling interest line item and the BCH Preferred A.0 Non-Redeemable are recorded in the consolidated statements of financial condition in the noncontrolling interest line item. For periods prior to the September 30, 2024 re-designation, the BCH Preferred A.0 are recorded in the consolidated statements of financial condition in the redeemable noncontrolling interest line item.

Noncontrolling Interests:

Noncontrolling interests represent the portion of certain consolidated subsidiaries’ limited partnership interests or interests in the Customer ExAlt Trusts that are held by third parties. Amounts are adjusted by the noncontrolling interest holder’s proportionate share of the subsidiaries’ earnings or losses each period and for any distributions that are paid. Equity securities issued by BCH maintain capital account balances determined pursuant to Section 704 of the Internal Revenue Code. Because federal income tax regulations differ in certain respects from U.S. GAAP, income or loss allocations to BCH equity securities determined in accordance with tax regulations may materially differ from that recognized for financial reporting purposes. For example, the losses recognized for financial reporting purposes arising from the impairment of goodwill are not recognized under tax regulation, and the associated capital account balances have not been impacted by those losses.

The following tables present a rollforward of the noncontrolling interests for the three and six months ended September 30, 2024 and 2023:

	Noncontrolling Interests
(Dollars in thousands)	Trusts		BCH Class S Ordinary		BCH Class S Preferred		BCH Preferred Series A.0 Non-Redeemable		BCH Preferred Series A.1		BCH Preferred Series C		Class A of CT		Total Noncontrolling Interests
Balance, June 30, 2024	$	(166,463)	$	—	$	—	$	—	$	200,756	$	—	$	—	$	34,293
Net loss	(4,523)		—		—		—		(3,067)		—		—		(7,590)
Reclass of distributions payable to noncontrolling interest holder	(122)		—		—		—		—		—		—		(122)
Reclass of BCH Preferred A.0 Non-Redeemable from temporary to permanent equity	—		—		—		125,526		—		—		—		125,526
Balance, September 30, 2024	$	(171,108)	$	—	$	—	$	125,526	$	197,689	$	—	$	—	$	152,107

	Noncontrolling Interests
(Dollars in thousands)	Trusts		BCH Class S Ordinary		BCH Class S Preferred		BCH Preferred Series A.0 Non-Redeemable		BCH Preferred A.1		BCH Preferred Series C		Class A of CT		Total Noncontrolling Interests
Balance, March 31, 2024	$	(165,712)	$	—	$	—	$	—	$	207,943	$	—	$	—	$	42,231
Net loss	(5,049)		—		—		—		(10,254)		—		—		(15,303)
Reclass of distributions payable to noncontrolling interest holder	(347)		—		—		—		—		—		—		(347)
Reclass of BCH Preferred A.0 from temporary to permanent equity	—		—		—		125,526		—		—		—		125,526
Balance, September 30, 2024	$	(171,108)	$	—	$	—	$	125,526	$	197,689	$	—	$	—	$	152,107

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	Noncontrolling Interests
(Dollars in thousands)	Trusts		BCH Class S Ordinary		BCH Class S Preferred		BCH Preferred Series A.1		BCH Preferred Series C		Class A of CT		Total Noncontrolling Interests
Balance, June 30, 2023	$	(132,361)	$	19,311	$	856	$	691,825	$	205,759	$	690	$	786,080
Net loss	(3,591)		(9,614)		—		(570)		—		(421)		(14,196)
Reduction of noncontrolling interest in connection with recent financings	(3,272)		—		—		—		—		—		(3,272)
Issuance of noncontrolling interest in connection with recent financings	79		—		—		—		—		—		79
Reclass of distributions payable to noncontrolling interest holder	(238)		—		—		—		—		—		(238)
Conversion of Preferred Series C to Class A common stock	—		—		—		—		(205,759)		—		(205,759)
Issuance of Series B-1 preferred stock and noncontrolling interest in connection with recent financings	942		—		—		—		—		—		942
Balance, September 30, 2023	$	(138,441)	$	9,697	$	856	$	691,255	$	—	$	269	$	563,636

	Noncontrolling Interests
(Dollars in thousands)	Trusts		BCH Class S Ordinary		BCH Class S Preferred		BCH Preferred Series A.1		BCH Preferred Series C		Class A of CT		Total Noncontrolling Interests
Balance, March 31, 2023	$	(118,299)	$	52,560	$	856	$	—	$	205,759	$	1,337	$	142,213
Net loss	(17,457)		(38,979)		—		(1,244)		—		(1,068)		(58,748)
Reclass of distributions payable to noncontrolling interest holder	(567)		—		—		—		—		—		(567)
Issuance of shares in connection with recent financings	133		—		—		—		—		—		133
Reduction of noncontrolling interest in connection with recent financings	(3,272)		—		—		—		—		—		(3,272)
Issuance of noncontrolling interest in connection with recent financings	79		—		—		—		—		—		79
Conversion of Class S Ordinary to Class A common stock	—		(3,884)		—		—		—		—		(3,884)
Conversion of Preferred Series C to Class A common stock	—		—		—		—		(205,759)		—		(205,759)
Deemed dividend for BCG Preferred Series B.2 Unit Accounts preferred return	—		—		—		(6,942)		—		—		(6,942)
Reclass of BCH Preferred A.1 from temporary to permanent equity	—		—		—		699,441		—		—		699,441
Issuance of Series B-1 preferred stock and noncontrolling interest in connection with recent financings	942		—		—		—		—		—		942
Balance, September 30, 2023	$	(138,441)	$	9,697	$	856	$	691,255	$	—	$	269	$	563,636

Preferred Series A Subclass 1 Unit Accounts

The BCH Preferred A.1 unit accounts are issued by BCH and are non-participating and convertible on a dollar basis.

The weighted average preferred return rate for the three months ended September 30, 2024 and 2023 was approximately nil and nil, respectively. The weighted average preferred return rate for the six months ended September 30, 2024 and 2023 was approximately nil and 0.46%, respectively. No amounts have been paid to the BCH Preferred A.1 holders related to the preferred return from inception through September 30, 2024, and any amounts earned have been accrued and are included in the balance of redeemable noncontrolling interests presented on the consolidated statements of financial condition. As of September 30, 2024, approximately $106.1 million of preferred return related to the BCH Preferred A.1 has not been allocated to its holders due to insufficient income during those periods to fully satisfy the preferred return and will be allocable to the BCH Preferred A.1 holders in future quarterly periods to the extent that sufficient income, if any, is available for such allocation. In accordance with the BCH LPA, the preferred rate was waived and will not accrue from June 7, 2023 until December 31, 2024, except to the extent of allocations of income to the holders of the BCH Preferred A.1, in which event distributions may be requested by the holders of the BCH Preferred A.1, and if not requested, such amounts shall be accrued. In connection with the consummation of the Business Combination, the holders of the BCH Preferred A.1 agreed to significantly reduce the BCH Preferred A.1 return rate and also agreed to waive and defer the accrual of the preferred return as described above. In addition, until January 1, 2025, the hypothetical BCH Preferred A.1 capital account will only be

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increased to the extent there are allocations of income during such period. The agreement to waive and not accrue the Quarterly Preferred Series A.1 Return from the effective date of the BCH LPA until December 31, 2024 does not affect or waive any Quarterly Preferred Series A.1 Returns or hypothetical BCH Preferred A.1 capital account already accrued as of the effective date. Additionally, certain BCH Preferred A.1 holders agreed to be specially allocated any income or losses associated with the BMP Equity Incentive Plan, and certain other costs.

Beginning January 1, 2025, BCH Preferred A.1 may be converted into BCH Class S Ordinary Units at the election of the holder, subject to a 20% annual conversion limit through December 31, 2029 as set forth in the BCH LPA; provided, that if the conversion price for the BCH Preferred A.1 equals or exceeds $1,440 after January 1, 2025, the annual conversion limit shall no longer be applicable. Upon conversion, the holder shall be issued BCH Class S Ordinary Units in an amount equal to the capital account balance associated with the BCH Preferred A.1 being converted divided by a price equal to the average closing price of Class A common stock for the thirty (30) days preceding the applicable exchange date; provided, that from the effectiveness of the BCH LPA through December 31, 2027, such conversion price shall not be less than $840. The holder of such newly issued BCH Class S Ordinary Units may immediately convert them into Class A common stock.

The BCH LPA also includes certain limitations of BCH, without the consent of a majority-in-interest of the Preferred Series A Unit Account holders, to (i) issue any new equity securities, and (ii) except as otherwise provided, incur indebtedness that is senior to or pari passu with any right of distribution, redemption, repayment, repurchase or other payments relating to the Preferred Series A Unit Accounts or the Preferred Series B Unit Accounts. Further, BCH cannot, prior to the conversion of all the Preferred Series A Unit Accounts and the Preferred Series B Unit Accounts, incur any additional long-term debt unless (i) after giving effect to the incurrence of the new long-term debt on a pro forma basis, the sum of certain preferred stock, existing debt and any new long-term indebtedness would not exceed 55% of the BCH’s NAV plus cash on hand, and (ii) at the time of incurrence of any new long-term indebtedness, the aggregate balance of the BCH’s (including controlled subsidiaries) debt plus such new long-term debt does not exceed 40% of the sum of the NAV of the interests in alternative assets supporting the Collateral underlying the loan portfolio of BCH and its subsidiaries plus cash on hand at BCG, BCH and its subsidiaries. Upon the effectiveness of the 8th BCH LPA in June 2023, the redemption feature of the BCH Preferred A.1 was removed, which resulted in the BCH Preferred A.1 no longer being required to be presented in temporary equity.

On June 6, 2023, in connection with the BCG Recapitalization as described in Note 4, $193.9 million of aggregate capital account balances in BCH Preferred A.1 converted to 208,861 units of BCH Class S Ordinary. Those BCH Class S Ordinary units then converted into 17,456 units of BCG Class A common units and 191,405 shares of BCG Class B common units on a one-for-one basis. As part of the conversion to BCG Class A Units, additional value of approximately $15.0 million was provided to certain holders who are members of our Board. The additional value was accounted for as compensation, which resulted in stock-based compensation expense of $15.0 million during the quarter ended June 30, 2023.

The BCH Preferred A.1 are recorded in the consolidated statements of financial condition in the noncontrolling interest line item.

Preferred Series C Subclass 1 Unit Accounts

On July 15, 2020, the Company entered into a Preferred Series C Unit Purchase Agreement (“UPA”) with GWG Holdings. Pursuant to the UPA, on July 10, 2023, the Preferred Series C Subclass 1 Unit Accounts of BCH (“BCH Preferred C.1”) automatically converted into 550,510 shares of Class A common stock at approximately $372.80 per share, which represents the volume-weighted average trading price of the Class A common stock for the 20 trading days following the closing of the Business Combination. The BCH Preferred C.1 were recorded in the consolidated statements of financial condition in the noncontrolling interest line item for periods presented prior to their conversion to Class A common stock.

Class S Ordinary Units

As of both September 30, 2024 and March 31, 2024, BCH, a subsidiary of Ben, had issued 67 thousand BCH Class S Ordinary Units which were all outstanding on each of the respective dates. The BCH Class S Ordinary Units participate on a pro-rata basis in the share of the profits or losses of BCH and subsidiaries following all other allocations made by BCH and its subsidiaries. As limited partner interests, these units have limited voting rights and do not entitle participation in the management of the Company’s business and affairs. At the election of the holder, the BCH Class S Ordinary Units are exchangeable quarterly for Class A common stock on a one-for-one basis. Each conversion also results in the issuance to Ben LLC of a BCH Class A Unit for each share of Class A common stock issued.

On June 8, 2023, 5,057 BCH Class S Ordinary Units ultimately converted into shares of Class A common stock on a one-to-one basis pursuant to the terms of the Exchange Agreement and the BCH LPA.

The BCH Class S Ordinary Units are recorded in the consolidated statements of financial condition in the noncontrolling interests line item.

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Class S Preferred Units

The BCH Class S Preferred Units also participate on a pro-rata basis in the share of the profits or losses of BCH and subsidiaries following all other allocations made by BCH and its subsidiaries. As limited partner interests, these units are generally non-voting and do not entitle participation in the management of the Company’s business and affairs. The BCH Class S Preferred Units are entitled to a quarterly preferred return. In accordance with the 8th BCH LPA, the preferred rate was waived and will not accrue from June 7, 2023 until December 31, 2024, except to the extent of allocations of income to the holders of the BCH Class S Preferred Units. In connection with the consummation of the Business Combination, the holders of the BCH Preferred A.1 agreed to significantly reduce the BCH Class S Preferred Units preferred return rate and also agreed to waive and defer the accrual of the preferred return as described above. In addition, until January 1, 2025, the hypothetical BCH Class S Preferred Units capital account will only be increased to the extent there are allocations of income during such period. The agreement to waive and not accrue the Quarterly Class S Preferred Return from June 7, 2023 until December 31, 2024 does not affect or waive any Quarterly Class S Preferred Return or hypothetical BCH Class S Preferred capital account already accrued as of the effective date.

Generally, on a quarterly basis and at the election of the holder, the BCH Class S Preferred Units are exchangeable for BCH Class S Ordinary Units on a 1.2-for-1 basis. The BCH Class S Ordinary Units may then be exchanged for Class A common stock as described above. Each conversion into Class A common stock also results in the issuance to Ben LLC of a BCH Class A Units for each share of Class A common stock issued. Holders of BCH Class S Preferred Units may elect to convert into BCH Class S Ordinary Units in connection with a sale or dissolution of BCH.

As of September 30, 2024 and March 31, 2024, a nominal number of shares of BCH Class S Preferred Units have been issued, respectively. Preferred return earned by the BCH Class S Preferred Units from inception in 2019 through September 30, 2024 is $0.2 million. No amounts have been paid to the BCH Class S Preferred Unit holders related to the preferred return from inception through September 30, 2024 and any amounts earned have been accrued and are included in the balance of BCH Class S Preferred Units presented on the consolidated statements of financial condition.

The BCH Class S Preferred Units are recorded in the consolidated statements of financial condition in the noncontrolling interests line item.

FLP Unit Accounts (Subclass 1 and Subclass 2)

FLP Unit Accounts (Subclass 1 and Subclass 2) are non-unitized capital accounts. The FLP Subclass 1 Units (the “FLP-1 Unit Accounts”) were issued to a Related Entity (as defined in Note 13) as part of the initial commercial operations of Ben. The FLP Subclass 2 Units (the “FLP-2 Unit Accounts”) are related to the BMP Equity Incentive Plan. Each subclass of the FLP Unit Accounts, with FLP-1 Unit Accounts (receiving 50.5%) and the FLP-2 Unit Accounts (receiving 49.5%), shall be allocated (i) fifteen percent (15%) of the profits and losses from financing activities of BCH and its subsidiaries and (ii) an amount equal to the lesser of (A) fifty percent (50%) of the revenues of BCH and its tax pass-through subsidiaries, excluding financing activities revenues, and (B) that amount of revenues that will cause the profit margin (as defined in the BCH LPA) to equal twenty percent (20%). Amounts allocated to the FLP Unit Accounts are reinvested equally in additional BCH Class S Ordinary Units and Class S Preferred Units on a quarterly basis at a price equal to the closing price of the units on such exchange on the date of allocation, thereby creating additional BCH Class S Ordinary Units and BCH Class S Preferred Units.

During the three and six months ended September 30, 2024 and 2023, there was no income allocated to the FLP Unit Accounts (Subclass 1 and 2). Annually, a true up of the quarterly allocations is required to match amounts allocated with annual earnings.

In addition to the above stated amounts, the FLP-1 Unit Accounts and FLP-2 Unit Accounts are entitled to a portion of any upward carrying value adjustment as calculated pursuant to Internal Revenue Code Section 704(b). In the event of an upward carrying value adjustment, the FLP-1 Unit Accounts and FLP-2 Unit Accounts are entitled to first be allocated gains associated with such carrying value adjustment equal to 15% of the value of the capital accounts of all BCH Class A Units and BCH Class S Units, calculated based on the post-adjusted capital accounts of the then outstanding BCH Class A and BCH Class S Units. Immediately following any such allocation, the amount allocated is converted in BCH Class S Ordinary Units at the then determined value. Furthermore, the amount allocated to the FLP-1 Unit Accounts is reduced by the value of any previously allocated amount pursuant to an upward carrying value adjustment, calculated as the number of BCH Class S Units previously received multiplied by the value of those units at the time of any subsequent carrying value adjustment.

As a result of the consummation of the Business Combination, an adjustment to the carrying value of BCH’s assets of $321.9 million occurred. Pursuant to the BCH LPA, approximately 402,383 BCH Class S Ordinary Units would be issuable as a result of the carrying value adjustment. Additionally, subsequent to the Business Combination, additional carrying value adjustments occurred, and approximately 260,000 BCH Class S Ordinary Units would be issuable through September 30, 2024 as a result of such carrying value adjustments, subject to the Compensation Policy. Under the Compensation Policy,

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unless amended or waived, the number of BCH Class S Ordinary Units that may be issued in 2024 or any subsequent year in connection with the consummation of the Business Combination will be limited and require approval of the Board; provided that any such BCH Class S Ordinary Units that may not be issued in 2024 may be issued in subsequent years in accordance with the Compensation Policy. As of September 30, 2024, there has been no allocation of the carrying value adjustment among the holders of the FLP-1 Unit Accounts and the FLP-2 Unit Accounts and no issuance of any BCH Class S Ordinary Units as a result of such adjustment.

FLP Unit Accounts (Subclass 3)

The FLP Subclass 3 Unit Accounts (the “FLP-3 Unit Accounts”) were issued to, and are currently held by, BHI. The FLP-3 Unit Accounts will be allocated profits from net financing revenues on a quarterly basis equal to the lesser of (i) 5% of the quarterly net financing revenues, or (ii) 10% of the average annualized stated interest (to the extent constituting net financing revenue) of the quarterly average of new loans issued by any subsidiaries of Ben during the previous twelve fiscal quarters.

The FLP-3 Unit Accounts are entitled to tax and other distributions equal to 100% of the amount of profits allocated to the FLP-3 Unit Accounts, and such distributions are not subject to available cash. The FLP-3 Unit Accounts do not have any conversion features or rights.

During the three and six months ended September 30, 2024 and 2023, there was no income allocated to the FLP-3 Unit Accounts. The Company has not made any distributions related to income allocated to the FLP-3 Unit Accounts through September 30, 2024 and has accrued a liability of $0.9 million and included in the accounts payable and accrued expenses line item of the consolidated statements of financial condition as of September 30, 2024 and March 31, 2024.

Beneficiaries of the Customer ExAlt Trusts

The ultimate beneficiaries of the Customer ExAlt Trusts are the Charitable Beneficiaries, unrelated third-party charities, that are entitled to (i) either, depending on the applicable trust agreements, 2.5% of all distributions received by such Customer ExAlt Trusts or 5.0% of any amounts paid to Ben as payment on amounts due under each ExAlt Loan, (ii) for certain Customer ExAlt Trusts, approximately 10% of the amount of excess cash Collateral, if any, following the full repayment of an ExAlt Loan, and (iii) all amounts accrued and held at the Customer ExAlt Trusts once all amounts due to Ben under the ExAlt Loans and any fees related to Ben’s services to the Customer ExAlt Trusts are paid. The Charitable Beneficiaries’ account balances with respect to its interest in such Customer ExAlt Trusts cannot be reduced to below zero. Any losses allocable to the Charitable Beneficiaries in excess of their account balances are reclassified at each period end to the trusts’ deficit account. Additional Customer ExAlt Trusts are created arising from new liquidity transactions with customers. These new Customer ExAlt Trusts, which are consolidated by Ben, result in the recognition of additional noncontrolling interest representing the interests in these new Customer ExAlt Trusts held by the Charitable Beneficiaries. For the three months ended September 30, 2024 and 2023, nil and $1.0 million, respectively, of additional noncontrolling interests were recognized. For the six months ended September 30, 2024 and 2023, nil and $1.2 million, respectively, of additional noncontrolling interests were recognized.

The interests of the Charitable Beneficiaries in the Customer ExAlt Trusts are recorded on the consolidated statements of financial condition in the noncontrolling interests line item.

Class A of CT Risk Management, L.L.C.

On April 1, 2022, a minority interest in the Class A membership of CT Risk Management, L.L.C. (“CT”), a consolidated VIE of Ben (as further discussed in Note 14), was sold for $2.4 million in cash to the third-party involved in the loan participation transaction described in Note 7. As a Class A member of CT, the holder is entitled to distributions first on a pro rata basis with other Class A members until the initial capital contributions are received and 2.0% of any amounts in excess of their capital contributions, to the extent such amounts are available. This interest is recorded on the consolidated statements of financial condition in the noncontrolling interests line item however, for both September 30, 2024 and March 31, 2024, the balance is nil.

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11.    Net Income (Loss) per Share

Basic net income (loss) attributable to Beneficient per common share for the three and six months ended September 30, 2024 and 2023, is as follows:

(Dollars in thousands)	Three Months Ended September 30,				Six Months Ended September 30,
	2024		2023		2024		2023
Net income (loss)	$	9,747	$	(381,764)	$	54,057	$	(1,537,734)
Plus: Net loss attributable to noncontrolling interests	7,590		14,196		15,303		58,748
Less: Noncontrolling interest guaranteed payment	(4,423)		(4,167)		(8,779)		(8,272)
Net income (loss) attributable to Beneficient common shareholders	$	12,914	$	(371,735)	$	60,581	$	(1,487,258)
Net income (loss) attributable to Class A common shareholders	12,270		(344,580)		57,040		(1,378,616)
Net income (loss) attributable to Class B common shareholders	644		(27,155)		3,541		(108,642)
Basic weighted average of common shares outstanding
Class A	4,122,438		2,971,767		3,910,871		2,645,234
Class B	239,256		239,256		239,256		239,256
Basic net income (loss) attributable to Beneficient per common share
Class A	$	2.98	$	(115.95)	$	14.58	$	(521.17)
Class B	$	2.69	$	(113.50)	$	14.80	$	(454.08)

Diluted net income attributable to Beneficient per common share for the three and six months ended September 30, 2024, is as follows:

(Dollars in thousands)
Diluted income per share	Three Months Ended September 30, 2024		Six Months Ended September 30, 2024
Net income attributable to Beneficient common shareholders - Basic	$	12,914	$	60,581
Less: Net loss attributable to noncontrolling interests - Ben	(3,067)		(10,254)
Plus: Noncontrolling interest guaranteed payment	4,423		8,779
Net income attributable to Beneficient common shareholders - Diluted	$	14,270	$	59,106
Basic weighted average of common shares outstanding (Class A and Class B)	4,361,694		4,150,127
Dilutive effect of:
Series B Preferred Stock	165,036		165,036
Class S Ordinary	66,982		66,982
Class S Preferred	605		605
Preferred Series A Subclass 0	102,832,018		77,582,588
Preferred Series A Subclass 1	330,926,963		249,670,975
Restricted Stock Units	561,766		296,608
Diluted weighted average of common shares outstanding (Class A and Class B)	438,915,064		331,932,921
Diluted net income attributable to Beneficient per common share (Class A and Class B)	$	0.03	$	0.18

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For the three and six months ended September 30, 2023, as the Company was in a net loss position, the diluted EPS calculation for the Beneficient common shareholders is the same as basic EPS per common share disclosed above for that period. Diluted EPS for the Class A shareholders is $(115.95) and diluted EPS for the Class B shareholders is $(113.50) for the three months ended September 30, 2023. Diluted EPS for the Class A shareholders is $(521.17) and diluted EPS for the Class B shareholders is $(454.08) for the six months ended September 30, 2023.

In computing diluted net loss per share, we considered potentially dilutive shares. Anti-dilutive shares not recognized in the diluted net loss per share calculation for the three and six months ended September 30, 2024 and 2023, were as follows:

	Shares		Shares
	Three Months Ended September 30,		Six Months Ended September 30,
	2024	2023	2024	2023
Class S Ordinary	—	66,982	—	67,936
Class S Preferred	—	605	—	605
Preferred Series A Subclass 0	—	90,445,956	—	32,916,204
Preferred Series A Subclass 1	—	291,066,987	—	110,618,486
Preferred Series C Subclass 1	—	29,919	—	151,917
Restricted Stock Units	121,721	127,742	122,098	123,536
Convertible Debt	396,174	—	199,169	—
Warrants	31,270,860	30,669,850	31,073,825	24,708,118
Total anti-dilutive shares	31,788,755	412,550,601	31,395,092	168,595,329

Conversion of BCH Preferred C-1 Unit Accounts

Pursuant to the UPA, on July 10, 2023, the BCH Preferred C-1 Unit Accounts automatically converted into 550,510 shares of Class A common stock at approximately $372.80 per share, which represents the volume-weighted average trading price of the Class A common stock for the 20 trading days following the closing of the Business Combination.

Conversion of Series B-1 Preferred Stock

On October 3, 2023, 3,768,995 shares of Series B-1 preferred stock converted into 172,574 shares of Class A common stock at a price per share of approximately $218.40.

Warrants

The disclosed amount of anti-dilutive securities for the warrants does not consider the assumed proceeds under the treasury stock method as the exercise price was greater than the average market price of the Class A common stock, which results in negative incremental shares, that would be anti-dilutive.

12.    Income Taxes

The components of income tax expense for the three and six months ended September 30, 2024 and 2023, were as follows:

(Dollars in thousands)	Three Months Ended September 30,				Six Months Ended September 30,
	2024		2023		2024		2023
Current expense
Federal	$	—	$	—	$	28	$	—
Deferred expense
Federal	—		—		—		—
Income tax expense	$	—	$	—	$	28	$	—

13.    Related Parties

The Company considers its employees and directors to be related parties. A “Related Entity” or “Related Entities” include certain trusts that are directly or indirectly controlled by, or operate for the benefit of, Mr. Heppner or his family, and those entities directly or indirectly held by, or that are under common control with, such trusts, and in which he and his family

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members are among classes of economic beneficiaries, whether or not Mr. Heppner is entitled to economic distributions from such trusts. Mr. Heppner is a beneficiary of the trust that is the sole shareholder of BHI (such trust, the “Related Entity Trust”).

Relationship with Beneficient Management Counselors, L.L.C.

For periods prior to the conversion of BCG to a Nevada corporation, Ben Management was the general partner of Ben and Ben Management was governed by a board of directors. The governing document of Ben Management provided that Beneficient Management Counselors, L.L.C. (“BMC”), wholly owned by one of several Related Entities, determined the directors of Ben Management who filled 49% of the Board seats. BMC was also entitled to select (a) 50% of the membership of the Ben Management’s Nominating Committee and Executive Committee and appoint the chair of each of these committees, and (b) 50% of the membership of the Community Reinvestment Committee (the “CRC”) and the CRC’s chairperson and lead committee member. Certain decisions with respect to Ben’s charitable giving program were delegated to the CRC, including certain decisions on behalf of BFF as a Kansas TEFFI. Decisions regarding appointment and removal of Ben Management’s directors, other than directors appointed by BMC, were delegated, with certain exceptions, to the Nominating Committee of Ben Management of which our Chief Executive Officer and Chairman was a member and Chairman. In the event of a tie vote of the Nominating Committee on a vote for the appointment or removal of a director, the majority of the then total number of directors serving on the board of directors would break the tie; provided that upon and following a “trigger event” (as defined in Ben Management’s governing document) the chair of the Nominating Committee may cast the tie-breaking vote. Subsequent to the conversion of BCG to a Nevada corporation, Beneficient is governed by a board of directors and Beneficient’s common equity holders are entitled to vote on all matters on which stockholders generally are entitled to vote as described in Note 10, Equity.

Services Agreement with Bradley Capital Company, L.L.C.

BCG and BCH entered into an agreement with Bradley Capital Company, L.L.C. (“Bradley Capital”) and BMC effective June 1, 2017 (the “Bradley Capital Agreement”), which was then amended and restated effective January 1, 2022 (the “A&R Bradley Capital Agreement”). Bradley Capital is a Related Entity. Under the Bradley Capital Agreement and the A&R Bradley Capital Agreement, Bradley Capital is entitled to a current base fee of $0.4 million per quarter for executive level services provided by an executive of Bradley Capital, who, prior to BCG’s conversion to a Nevada corporation on June 7, 2023, was our Chief Executive Officer and Chairman of Ben Management’s Board of Directors and currently is our Chief Executive Officer and Chairman of our Board, together with a current supplemental fee of $0.2 million per quarter for administrative and financial analysis, with both the base fee and supplemental fee, subject to an annual inflation adjustment. The base fee may be increased by the provider up to two times the initial base fee per quarter to cover increases in the cost of providing the services, or in the event of an expansion of the scope of the services, with the approval of the Executive Committee of the Board of Ben Management prior to June 7, 2023 and the Executive Committee of our Board subsequent to June 7, 2023, of which our CEO & Chairman is a member and Chairman. Our CEO and Chairman receives an annual salary from the Company of $0.2 million and both he and other employees of Bradley Capital can participate in equity incentive plans sponsored by the Company. The Bradley Capital Agreement and the A&R Bradley Capital Agreement also includes a payment from Ben of $0.2 million per year, paid in equal quarterly installments, to cover on-going employee costs for retired and/or departed employees of predecessor entities prior to September 1, 2017, which on-going costs were assumed by Bradley Capital, as well as a further payment to Bradley Capital in respect of the cost of health and retirement benefits for current employees of Bradley Capital all of which are reimbursed by Ben.

The Bradley Capital Agreement and the A&R Bradley Capital Agreement requires Ben to reimburse Bradley Capital or its affiliates for taxes, fees, and expenses, including legal fees and related costs, relating to the contributions by affiliates of Bradley Capital of equity or debt interests in Ben to public charitable trusts in connection with the 2017-18 Exchange Trusts, as well as the contribution of beneficial interests in customer trusts administered by Ben. The A&R Bradley Capital Agreement further requires that Ben indemnify and hold Bradley Capital harmless against any and all losses, damages, costs, fees and any other expenses incurred by Bradley Capital as air travel expenses owed in connection with the operation of the aircraft identified in the Aircraft Sublease (as defined below) for periods prior to January 1, 2022. Additionally, the Company provides office space and access to needed technology systems and telephone services. Payments by Ben to Bradley Capital and its affiliates are guaranteed and subject to enforcement by the state courts in Delaware in the event of default. The A&R Bradley Capital Agreement extended through December 31, 2022, with an automatic annual one-year renewal provision thereafter. Prior to June 7, 2023, the A&R Bradley Capital Agreement could have been terminated by the mutual agreement of the parties, by the unanimous approval of the Executive Committee of the Board of Ben Management of which an executive of a Related Entity is a member, or without such approval if the Related Entity no longer holds the lesser of $10.0 million of Ben’s securities or 1% of the aggregate fair market value of Ben on both December 31, 2022, or any applicable extension date, and the date of termination.

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On June 7, 2023 BCG’s existing Bradley Capital Agreement, was replaced by a Second Amended and Restated Services Agreement (the “Second A&R Bradley Capital Agreement”) with the Company as a party. The Second A&R Bradley Capital Agreement is substantially similar to the existing Bradley Capital Agreement, subject to certain changes as follows. The Executive Committee (as defined in the Second A&R Bradley Capital Agreement) reference was revised to refer to the Executive Committee of the Board, and the Second A&R Bradley Capital Agreement expressly states that it shall in no way limit the authority of Board to appoint and remove officers of the Company, including its chief executive officer. The term of the Second A&R Bradley Capital Agreement extends through December 31, 2023, with an annual one-year renewal provision thereafter. The termination provision was revised so that the agreement may be terminated upon the approval of all members of the Executive Committee, excluding Brad K. Heppner if he is then serving on the Executive Committee. The base fee was increased to $0.5 million per quarter and the supplemental fee was increased to $0.2 million per quarter, with each fee remaining subject to an annual inflation adjustment. In addition, revisions were made to the limitation of liability and indemnification provisions to reflect the applicability of the corporation laws of Nevada to Beneficient.

During the three months ended September 30, 2024 and 2023, the Company recognized expenses totaling $0.7 million and $0.7 million related to this services agreement, respectively. During the six months ended September 30, 2024 and 2023, the Company recognized expenses totaling $1.4 million and $1.4 million related to this services agreement, respectively. As of September 30, 2024 and March 31, 2024, $3.1 million and $2.7 million, respectively, was owed to Bradley Capital related to the ongoing aspects of this services agreement. In addition, prior to the Aircraft Sublease with Bradley Capital discussed below, we also reimbursed Bradley Capital for certain costs, including private travel, for our chief executive officer, including family members. As of September 30, 2024 and March 31, 2024, we have nil and $0.7 million accrued related to these reimbursements originating prior to the Aircraft Sublease. These amounts are reflected in the accounts payable and accrued expenses line item on the consolidated statements of financial condition. During the three and six months ended September 30, 2024, the Company paid $0.4 million and $1.6 million, respectively, related to accrued amounts owed under this services agreement.

In addition to the above, the Company incurred legal fees on behalf of Mr. Heppner under certain indemnification provisions. During the three months ended September 30, 2024 and 2023, these legal fees totaled approximately $1.4 million and $1.2 million, respectively. During the six months ended September 30, 2024 and 2023, these legal fees totaled approximately $2.6 million and $2.3 million, respectively. Substantially, all of these legal fees have or are expected to be eligible for reimbursement by the directors and officers insurance carriers.

Aircraft Sublease with Bradley Capital

Effective January 1, 2022 and January 1, 2023, The Beneficient Company Group (USA), L.L.C. (“Beneficient USA”), a subsidiary of BCH, as sublessee, Bradley Capital, as sublessor, and BCG, solely as it relates to the guarantee it makes to Bradley Capital as set forth therein, entered into an Aircraft Sublease Agreement (the “Aircraft Sublease”). Pursuant to the Aircraft Sublease, Bradley Capital subleases the aircraft described therein, without a crew, to Beneficient USA for discrete periods of use. Beneficient USA is required to pay a quarterly rental of $1.4 million plus direct operating expenses incurred for Ben’s use of the aircraft. Bradley Capital is required to pay any other fixed and variable costs of operating the aircraft. Beneficient USA is also required to provide its own pilot(s) and crew, and Beneficient USA has entered into a separate Flight Crew Services Agreement with an unrelated third-party to provide the qualified flight crew. The term of the Aircraft Sublease is one (1) year and may be terminated by either party upon three (3) days prior written notice and will automatically terminate upon the sale or similar disposition of the aircraft or the termination of the underlying lease agreement. Additionally, BCG agrees to unconditionally guarantee, for the benefit of Bradley Capital, all of the obligations of Beneficient USA to Bradley Capital under the Aircraft Sublease. The Aircraft Sublease expired on January 1, 2024.

During the three and six months ended September 30, 2023, BCH expensed $1.4 million and $2.9 million, respectively, in lease and direct operating expenses related to this agreement. No amounts have been paid to Bradley Capital related to the aircraft sublease through September 30, 2024. As of each of September 30, 2024 and March 31, 2024, $10.8 million of accrued costs related to the sublease is reflected in the accounts payable and accrued expenses line item on the consolidated statements of financial condition.

As discussed below, BHI, a Related Entity, entered into a Contribution Agreement with BCH and BCG pursuant to which BHI has agreed to reimburse BCG for a significant portion of the costs incurred by Beneficient USA under the Aircraft Sublease.

Relationship with Beneficient Holdings, Inc.

Beneficient USA, a subsidiary of BCH, entered into with BHI, a Related Entity, a Services Agreement effective July 1, 2017 (the “BHI Services Agreement”). BHI pays an annual fee of $30,000 to Ben for the provision of trust administration services for Related Entities and all trusts affiliated with its family trustee as that term is defined in the governing documents for a Related Entity. Beneficient USA also is required to provide any other services requested by BHI, subject to any restrictions in

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the operating agreement of BHI, at cost. The term of the BHI Services Agreement extends for the longer of (i) five years past the expiration or termination of the Bradley Capital Agreement, or (ii) seven years after the family trustee of the Related Entity is no longer a primary beneficiary of any trust affiliated with the family trustee. The Company recognized nominal income during the three and six months ended September 30, 2024 and 2023, respectively, in accordance with the BHI Services Agreement.

In conjunction with the execution of the Aircraft Sublease, BHI, a Related Entity, BCH, and BCG entered into a Contribution Agreement effective as of January 1, 2022 and January 1, 2023 (the “Contribution Agreement”). Pursuant to the Contribution Agreement, BHI agrees to pay to BCH, on the last business day of each calendar quarter, any amounts paid by BCH during the quarter for the use of an aircraft under the Aircraft Sublease, or any similar lease or sublease, which would include the quarterly rental under the Aircraft Sublease. In addition, BHI agrees to pay to BCH any amounts paid related to fixed monthly or quarterly costs incurred in connection with such aircraft lease or sublease in an amount not to exceed $250,000 per year. This additional payment is intended to partially cover flight crew costs and other related costs. Each contribution is conditioned upon (i) the effectiveness of the Aircraft Sublease, and (ii) BCH’s timely payment to BHI of the guaranteed payment to be made to holders of BCH Preferred A.0 for the respective quarter in which such contribution is to be paid (whether or not waived in accordance with the terms of the BCH LPA); provided, that if such guaranteed payment is not timely paid, or is only paid in part, for any given quarter, then any contributions contemplated under the Contribution Agreement for such quarter will not be owed. In the event such guaranteed payment is subsequently paid in full, then any previously unfunded contributions for the applicable quarter under the Contribution Agreement will become immediately due and payable on the last business day of the calendar quarter in which such guaranteed payment is paid in full. All payments made by BHI to BCH pursuant to the Contribution Agreement shall be treated as capital contributions, as defined in the BCH LPA, by BHI to BCH and shall be added to BHI’s sub-capital account related to its BCH Class S Ordinary Units. BCH further agrees to specially allocate to BHI’s sub-capital account related to its BCH Class S Ordinary Units any expenses or deductions derived from amounts paid or accrued by BCH for use of the aircraft to the extent such expenditures are offset by the contributions made by BHI pursuant to the Contribution Agreement. There have been no contributions from BHI related to this agreement, which is expected and will continue to occur until the guaranteed payments to BCH Preferred A.0 holders are no longer deferred.

BHI owns the majority of the Company’s Class B common stock, and the BCH Class S Ordinary Units, BCH Class S Preferred Units, BCH Preferred A.0, BCH Preferred A.1, and FLP Subclass 1 and Subclass 3 Unit Accounts issued by BCH.

HCLP Nominees, L.L.C.

HCLP is an indirect subsidiary of Highland Consolidated, L.L.C. (“Highland”). Ben’s Chairman and CEO is a beneficiary and trust investment advisor of the trusts that control, and are the partners of, Highland. Loans to and investments with or in the Related Entities have been and may be made by Highland, or its affiliates, as applicable, using proceeds from loan repayments made by Ben to HCLP in its capacity as lender to Ben. Ben is not a party to these transactions between Highland and the Related Entities.

A long-standing lending and investment relationship of 26 years exists between Highland (and its affiliates or related parties), on the one hand, and Related Entities, on the other. From time to time, Highland or its affiliates have advanced funds under various lending and investing arrangements to Related Entities, and such Related Entities have made repayments to Highland or its affiliates, as applicable, both in cash and in kind.

As of June 30, 2021, Highland and the applicable Related Entity mutually agreed to satisfy all obligations under all outstanding loans among Highland and the Related Entity via full payment and satisfaction of the existing loan balances (the “Loan Balances”) by in-kind real property transfers (the “In-Kind Property Payment”) from certain of the Related Entities to Highland. The terms of the In-Kind Property Payment grant Highland the right to transfer the real property that was transferred pursuant to the In-Kind Property Payment back to certain of the Related Entities, in exchange for a BCH Preferred A.1 capital account balance in BCH in an amount equal to the Loan Balances, with such exchange to be satisfied from existing BCH Preferred A.1 that are held by such Related Entities.

Since June 30, 2021, additional net advances have been made by Highland to a Related Entity. As of September 30, 2024 and March 31, 2024, Highland Consolidated, L.P. had outstanding loans in the principal amount of $10.8 million and $11.5 million, respectively, with a Related Entity. Ben is not a party to these loans, nor has it secured or guaranteed the loans.

The Company incurred legal fees of approximately $0.5 million and $0.5 million on behalf of HCLP pursuant to the indemnification obligations under the HCLP credit agreements during the three months ended September 30, 2024 and 2023, respectively. During the six months ended September 30, 2024 and 2023, these legal fees totaled approximately $1.0 million and $0.6 million, respectively.

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Relationship with The Heppner Endowment for Research Organizations, L.L.C. (“HERO”) and Research Ranch Operating Company, L.L.C (“RROC”).

HERO and RROC are indirectly owned by The Highland Investment Holdings Trust, The Highland Great Plains Trust and The Highland Partner Holdings Trust. Mr. Heppner is a permissible beneficiary of The Highland Investment Holdings Trust and The Highland Partner Holdings Trust, but he is not a beneficiary of The Highland Great Plains Trust. Mr. Heppner’s family members are potential beneficiaries of each of these three trusts. HERO was created to (i) to serve as an advisor to National Philanthropic Trust (“NPT”), an unrelated third-party charitable organization, regarding the disbursement of grants to qualifying organizations, and (ii) to serve as an advisor to NPT regarding the administration of charitable contributions made for the benefit of such qualifying organizations. Although HERO can advise on these matters, NPT possessed all final decision-making authority on charitable contributions and complete control over the proceeds received by the charitable organizations. The charitable accounts administered by NPT (“Charitable Accounts”), the beneficiaries of which have historically been multiple Texas universities, have historically received proceeds from certain trusts settled and funded by customers of Ben, in support of their charitable initiatives. HERO does not receive any proceeds from trusts settled and funded by customers of Ben.

RROC’s purpose is to provide funding and operational support for the research activities conducted by the qualified charities. The funding received by RROC, from proceeds of trusts settled and funded by customers of Ben, may be used, in RROC’s discretion, to (i) provide appropriate facilities and properties for the charitable organizations to utilize as part of their charitable initiatives (those properties and facilities being owned by a Related Entity), and (ii) provide fee revenue to RROC. RROC is granted such rights and authority pursuant to trust instruments entered into between a customer and subsidiaries of Ben as well as an agreement with NPT. Ben’s subsidiaries provide financing to the Customer ExAlt Trusts and Ben is paid as an agent of the trustees for administrative services it provides to the trusts. Ben has certain outstanding payables, including accrued interest, to RROC and the Charitable Accounts (for the benefit of the Texas universities as discussed above) of $2.2 million and $2.2 million as of September 30, 2024 and March 31, 2024, respectively. There were no payments made during the three and six months ended September 30, 2024 and 2023. Due to changes in the Customer ExAlt Trust agreements, no incremental amounts are expected to be allocated to RROC or the Charitable Accounts other than those amounts already provided by certain prior trust agreements. During the three and six months ended September 30, 2023, the trust advisor to certain of the Customer ExAlt Trusts reassigned the beneficial interest held at NPT to the Kansas TEFFI Economic Growth Trust.

Beneficient Heartland Foundation, Inc.; Initial Charitable Initiative

In connection with each of Ben’s liquidity transactions following the adoption of the TEFFI legislation and BFF’s receipt of a fully-operational trust company charter under the Kansas TEFFI Act, pursuant to Section 28 of the TEFFI Act, a “Qualified Distribution” is made for the benefit of certain economic growth zones and rural communities in the State of Kansas (each, a “Charitable Distribution”). In January 2022, Ben announced its initial $15.4 million Charitable Distribution. The Charitable Distribution was allocated as follows: $2.7 million of cash for the benefit of, and to be received by, the Kansas Department of Commerce to be used at the department’s discretion for development projects and the promotion and growth of the TEFFI industry in Kansas; $0.2 million of cash and assets for the benefit of public charities dedicated to economic development within Mr. Heppner’s hometown of Hesston, Kansas, and surrounding Harvey County, Kansas, as outlined in the TEFFI Act; and $12.5 million in cash and assets to the Beneficient Heartland Foundation, Inc. (“BHF”) as described below. Mr. Heppner’s hometown is Hesston, Kansas and certain of his family members continue to live and/or work in Hesston and other areas of Harvey County, Kansas and may be considered to be direct and indirect beneficiaries of the portions of the initial Charitable Distribution provided to Hesston and Harvey County and to BHF.

On January 20, 2022, BHF was formed as a Kansas nonprofit corporation to receive economic growth contributions pursuant to the TEFFI legislation. BHF is currently governed by an eight-member board of directors, six of whom are community leaders within the Hesston, Kansas community and two of whom are Ben employees or individuals otherwise affiliated with Ben. BHF is organized and operated exclusively for charitable and educational purposes within the meaning of Section 501(c)(3) of the Internal Revenue Code. Its purpose is to provide grants and other support to benefit growth, development and expansion of opportunities in rural Kansas communities with populations of 5,000 residents or less, including job and income growth, main street revitalization, educational facility improvements, construction and development, healthcare facility enhancements, senior facility improvements, and support for post-secondary institutions. BHF has the exclusive decision-making authority over all of the economic growth contributions it receives.

BFF is the sole member of BHF and has the right to appoint up to eleven members of BHF’s Board of Directors. The remaining two board members are appointed by BMC. Pursuant to the requirements of the Internal Revenue Code, BFF’s governing documents prohibit any of BHF’s assets or earnings from inuring to the benefit of BFF, BMC, or any director, officer or other private individual.

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The Kansas TEFFI Economic Growth Trust

The Kansas Economic Growth Trust (the “EGT”) is a common law trust formed on December 7, 2021 by and between an individual as independent trustee, Ben Custody as administrator, and BCH as advisor. The purpose of the EGT is to receive the proceeds of the Customer ExAlt Trusts that are allocable to the Charitable Beneficiaries and to allocate such proceeds between the Kansas Department of Commerce and qualified charitable organizations (including the Beneficient Heartland Foundation, Inc.) in accordance with the requirements of the TEFFI legislation. The proceeds received by the EGT are dedicated exclusively to charitable purposes and the trust agreement prohibits any of the EGT’s assets or earnings from inuring to the benefit of Ben Custody, BCH, any director, officer or other private individual. As noted above, Ben Custody provides administrative and accounting services to the EGT, and BCH serves as advisor to the trustee with respect to the administration and distribution of the trust. Neither Ben Custody nor BCH charges a fee for these services. During the year ended March 31, 2023, the trust advisor to certain of the Customer ExAlt Trusts reassigned the beneficial interest held at NPT to the EGT.

Ben has an outstanding payable to EGT of nil and $0.1 million as of September 30, 2024 and March 31, 2024, respectively. Ben paid $0.1 million and $0.3 million during the three and six months ended September 30, 2024, compared to $0.3 million and $0.7 million for the same periods of 2023, respectively, related to allocable proceeds to Charitable Beneficiaries. Additionally, during the year ended March 31, 2023, Ben sold its Kansas properties to the EGT in exchange for a $1.4 million promissory note, which is in the other assets line items on the consolidated statements of financial condition as of September 30, 2024 and March 31, 2024. The EGT made a prepayment on the promissory note of $0.2 million during the three months ended September 30, 2024, principally in return for the promissory note being extended by two years, until September 30, 2028.

Hicks Holdings, L.L.C.

Hicks Holdings, L.L.C., an entity associated with one of Ben’s current directors, is one of the owners and serves as the manager of a limited liability company (“SPV”). A Related Entity also has ownership in the SPV. The SPV holds BCH Preferred A.0 and BCH Preferred A.1 among its investment holdings. Hicks Holdings, L.L.C. is also the sole member of HH-BDH, the lender on outstanding term loans with a subsidiary of Ben.

Hicks Holdings Operating, LLC (“Hicks Holdings”), an entity associated with one of Ben’s current directors, has historically held BCH Preferred A.0, BCH Preferred A.1, BCH Class S Ordinary Units, BCH Class S Preferred Units and Class B common stock of Beneficient. Hicks Holdings was granted its BCH Preferred A.1 and BCH Class S Ordinary Units as compensation for services provided in 2018. Hicks Holdings was granted its BCH Preferred A.0 when a portion of the existing BCH Preferred A.1 converted to BCH Preferred A.0 in 2021. Hicks Holdings converted a portion of its existing BCH Preferred A.1 to BCG Class B Common Units in June 2023 in connection with the recapitalization of BCG described in Note 4. In connection with the letter agreement described below, in October 2023, Hicks Holdings assigned the BCH Preferred A.0, BCH Preferred A.1, BCH Class S Ordinary Units, and BCH Class S Preferred Units to HH-BDH. The total preferred equity of BCH, BCH Class S Preferred Units and BCH Class S Ordinary Units balance as of September 30, 2024 and March 31, 2024, was $26.6 million and $27.5 million, respectively (amounts disclosed here are based on their GAAP capital accounts). Hicks Holdings held 16,528 shares of Class B common stock as of September 30, 2024 and March 31, 2024. Additionally, during the quarter ended September 30, 2024, Mr. Hicks and an entity controlled by Mr. Hicks purchased a total of 100,000 shares of Class A common stock for a purchase price of approximately $0.2 million.

The Company has outstanding payable amounts to Hicks Holdings related to the HH-BDH Credit Agreement totaling approximately $0.3 million as of September 30, 2024. No such amount was outstanding as of March 31, 2024.

Letter Agreement with Hicks Holdings

In connection with the HH-BDH Credit Agreement and the Financing, on October 19, 2023, the Guarantor, Ben LLC, and Hicks Holdings entered into a letter agreement (the “Letter Agreement”). In connection with the Financing, Hicks Holdings agreed to assign to HH-BDH (which is wholly-owned by Hicks Holdings) all of its rights, title and interest in and to the following partnership interests of the Guarantor: BCH Preferred A.0 with a capital account balance of $15.3 million as of June 30, 2023, BCH Preferred A.1 with a capital account balance of $48.1 million as of June 30, 2023, 1 BCH Class S Preferred Units and 3,640 BCH Class S Ordinary Units held by HH-BDH (the “Pledged Guarantor Interests”). Hicks Holdings’ membership interest in HH-BDH (collectively with the Pledged Guarantor Interests, the “Pledged Equity Interests”) and the Pledged Guarantor Interests serve as collateral for the Financing (together, the “Lender Pledge”).

Pursuant to the terms of the Letter Agreement, the parties thereto agreed that if the Borrower and/or Guarantor default under the HH-BDH Credit Agreement and such default results in a foreclosure on, or other forfeiture of, the Pledged Equity Interests, the Guarantor will promptly issue to Hicks Holdings, BCH Preferred A.0 with a capital account balance of $15.3 million, BCH Preferred A.1 with a capital account balance of $48.1 million, 1 BCH Class S Preferred Units and 3,640 BCH Class S Ordinary Units (subject to a tax gross-up as provided in the Letter Agreement), or, in the discretion of Hicks

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Holdings, equivalent securities of equal fair market value to the value of the security interests at the time of the applicable foreclosure or other loss (such newly issued equity interests referred to as the “Replacement Equity Interests”); provided, however that, if less than all Pledged Equity Interests have been foreclosed on or forfeited, the foregoing capital account balances and numbers of units comprising the Replacement Equity Interests shall be reduced on a class-by-class and subclass-by-subclass basis, as applicable, to the extent necessary to ensure that Hicks Holdings and its affiliates do not receive additional value relative to the value held by Hicks Holdings and its affiliates immediately prior to the foreclosure or forfeiture. Furthermore, Ben LLC shall cause a Ben LLC Unit (as defined in the BCH LPA) to be issued for each BCH Class A Unit issued to the Hicks Holdings pursuant to the Letter Agreement. Additionally, the Guarantor agreed to indemnify Hicks Holdings and its affiliates and hold each of them harmless against any and all losses which may arise directly or indirectly in connection with, among other things, the HH-BDH Credit Agreement, the Term Loan, the Financing and the Lender Pledge.

Shared Services Agreement with GWG Holdings

On May 27, 2020, Ben and GWG Holdings (acting through a then constituted special committee of the Board of Directors of GWG Holdings) entered into a shared services agreement effective as of January 1, 2020 (the “Shared Services Agreement”). The term of the Shared Services Agreement had an initial term of one year from the effective date and renewed automatically for successive one-year terms. Due to the filing by GWG Holdings for reorganization under the Chapter 11 Bankruptcy Code in April 2022, neither party was authorized to terminate the Shared Services Agreement. The Shared Services Agreement terminated upon the effective of GWG Holdings’ bankruptcy plan on August 1, 2023. Pursuant to the Shared Services Agreement, GWG Holdings paid a quarterly fee to Ben for the provision of accounting and finance, general and administrative, human resources, sales administration and marketing, underwriting and risk management, information technology and legal services for GWG Holdings and its direct or wholly-owned subsidiaries. The total service fee for each quarter was determined in good faith by Ben on the final day of such quarter in accordance with the cost allocation methodology maintained on Ben’s books and records, which provided that, to the extent the Services were eligible for the “services cost method,” as defined in Treasury Regulation §1.482-9(b), the Service Fee shall be equal to the total costs incurred by Ben during each quarter in connection with Ben’s provision of the Services to GWG Holdings or its direct or indirect wholly-owned subsidiaries, and that the Service Fee for Services that are not eligible for the services cost method shall be determined by reference to the “cost of services plus method,” as defined in Treasury Regulation §1.482-9(e).

During the three and six months ended September 30, 2023, GWG Holdings paid approximately $0.1 million and $1.4 million, respectively, to Ben under the Shared Services Agreement. Concurrent with the termination of the Shared Services Agreement on August 1, 2023, all receivables and the related allowance pertaining to amounts owed under the Shared Services Agreement were written off.

Consulting agreements with certain board members

During fiscal 2024, the Company entered into consulting agreements with certain non-management board members. Pursuant to the consulting agreements, Thomas O. Hicks, Richard W. Fisher and Bruce W. Schnitzer agreed to mentor, advise and support Beneficient and its related entities regarding its business of providing services, insurance, liquidity and financing for alternative asset holders and each receive an annual cash fee of $150,000 per year. Such consulting fee is in addition to the annual cash retainer these board members receive under the director compensation program. The consulting agreements have an initial term of one (1) year and automatically renew for successive one (1) year terms unless sooner terminated in accordance with their terms. In the event the initial or any renewal term is terminated before it expires due to a removal or because Messrs. Hicks, Fisher and Schnitzer is not re-elected or re- appointed, in each case without cause (as defined in the consulting agreement), the annual consulting fee will continue to be paid through the end of the initial or renewal term, as applicable. For each consulting agreement, the associated expense is recognized ratably each month over the annual term.

Mr. Fisher retired from our Board effective March 15, 2024 and thus his above referenced consulting agreement terminated during fiscal 2024. Following his resignation, Mr. Fisher has agreed to continue to serve as a consultant to the Company. In connection with such role, Mr. Fisher will receive an annual payment of $50,000, with such amount to be paid in the Company’s Class A common stock.

Subscription agreements with an entity associated with a certain board member

During the three months ended September 30, 2024, an entity associated with Peter T. Cangany, Jr., a member of our board of directors, purchased a total of 262,500 shares of Class A common stock from the Company for an aggregate purchase price of approximately $0.5 million.

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14.    Variable Interest Entities

In accordance with ASC 810, an enterprise is determined to be the primary beneficiary of a VIE if it holds a controlling financial interest. A controlling financial interest is defined as (a) the power to direct the activities of a VIE that most significantly impact the entity’s economic performance and (b) the obligation to absorb losses of the entity or the right to receive benefits from the entity that could potentially be significant to the VIE. The consolidation guidance requires an analysis to determine (a) whether an entity in which Ben holds a variable interest is a VIE and (b) whether Ben’s involvement, through holding interests directly or indirectly in the entity or contractually through other variable interests (for example, management and performance-related fees), would give it a controlling financial interest. The performance of that analysis requires the exercise of judgment. Based on management’s analysis, there are no VIEs that require consolidation, other than those described below.

VIEs for Which the Company is the Primary Beneficiary

CT Risk Management, L.L.C.

CT, a Delaware limited liability company, is currently governed by the Fourth Amended and Restated Limited Liability Company Agreement entered into on April 27, 2022. CT was created to reduce the impact of a potential market downturn on the interests in alternative assets held by the Customer ExAlt Trusts that collateralize the loans receivable from the Customer ExAlt Trusts held by BFF, or other Ben entities (such loans receivable are eliminated solely for financial reporting purposes in our consolidated financial statements) by distributing any potential profits to certain of the Customer ExAlt Trusts thereby offsetting any reduction in the value of the alternative assets.

CT is considered a VIE as the at-risk equity holder, BFF, does not have all of the characteristics of a controlling financial interest due to BFF’s receipt of returns being limited to its initial investment in CT. The Company concluded that BFF is the primary beneficiary of CT as BFF has the power to direct the most significant activities and has an obligation to absorb potential losses of CT. Accordingly, the results of CT are included in the Company’s consolidated financial statements.

As of September 30, 2024 and March 31, 2024, the consolidated statements of financial condition include assets of this consolidated VIE with a carrying value of nil. For three months ended September 30, 2023, the Company recorded losses of $0.7 million, of which approximately $0.3 million is attributable to Ben or Ben’s loan portfolio, with the remainder attributable principally to the loan involved in the participation loan transaction. The Company recorded losses of $3.0 million during the six months ended September 30, 2023, of which approximately $2.0 million is attributable to Ben or Ben’s loan portfolio, with the remainder attributable principally to the loan involved in the participation loan transaction. The amounts are reported in the gain (loss) on financial instruments, net line item of the consolidated statements of comprehensive income (loss), for the three and six months ended September 30, 2023. No options were held as of and during the three and six months ended September 30, 2024.

Customer ExAlt Trusts

The Company determined that all of the Customer ExAlt Trusts used in connection with its operations are VIEs of which Ben is the primary beneficiary as defined under ASC 810. The Company concluded that it is the primary beneficiary of the Customer ExAlt Trusts as it has the power to direct the most significant activities and has an obligation to absorb potential losses of the Customer ExAlt Trusts. Accordingly, the results of the Customer ExAlt Trusts are included in the Company’s consolidated financial statements. Although the Company is deemed to be the primary beneficiary of the Customer ExAlt Trusts for purposes of ASC 810, it is neither designated as a beneficiary under the trust agreements nor recognized as a beneficiary of such trusts under applicable state trust law. The assets of the Customer ExAlt Trusts may only be used to settle obligations of the Customer ExAlt Trusts. Other than potentially funding capital calls above the related reserve (refer to Note 17), there is no recourse to the Company for the Customer ExAlt Trusts’ liabilities. The cash flows generated by these VIEs are included within the Company’s consolidated statements of cash flows.

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The consolidated statements of financial condition include the following amounts from these consolidated VIEs as of the dates presented:

(Dollars in thousands)	September 30, 2024		March 31, 2024
Assets:
Cash and cash equivalents	$	1,008	$	963
Restricted cash	314		64
Investments, at fair value	334,987		329,113
Other assets	32		30
Total Assets of VIEs	$	336,341	$	330,170
Liabilities:
Accounts payable and accrued expense	$	2,316	$	1,670
Other liabilities	19		109
Total Liabilities of VIEs	$	2,335	$	1,779
Equity:
Treasury stock	$	(3,444)	$	(3,444)
Noncontrolling interests	(171,110)		(165,712)
Accumulated other comprehensive income	281		276
Total Equity of VIEs	$	(174,273)	$	(168,880)

The consolidated statements of comprehensive income (loss) for the periods presented include the following amounts from these consolidated VIEs:

	Three Months Ended September 30,				Six Months Ended September 30,
	2024		2023		2024		2023
(Dollars in thousands)
Revenues
Investment income (loss), net	$	8,541	$	(13)	$	19,569	$	487
Gain (loss) on financial instruments, net	572		(41,875)		(603)		(43,679)
Interest and dividend income	—		2		—		10
Total revenues	9,113		(41,886)		18,966		(43,182)
Operating expenses
Interest expense	—		1,794		—		3,668
Provision for credit losses	476		—		998		—
Professional services	571		884		1,193		2,145
Other expenses	189		26		309		383
Total operating expenses	1,236		2,704		2,500		6,196
Net income (loss)	$	7,877	$	(44,590)	$	16,466	$	(49,378)
Net loss attributable to noncontrolling interests	$	(4,523)	$	(3,592)	$	(5,049)	$	(17,458)

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15.    Segment Reporting

The Company has three reportable segments consisting of Ben Liquidity, Ben Custody and Customer ExAlt Trusts. As additional products and services are offered in the future, we expect to have additional reportable segments, including Ben Insurance Services and Ben Markets.

As the central operating hub of the company, Ben Liquidity is responsible for offering Ben’s fiduciary alternative asset liquidity and financing products through AltAccess. Ben Custody delivers products that address the administrative and regulatory burden of holding alternative assets by offering full service bespoke custody and trust administration services, and specialized document custodian services to Customers. Certain of Ben’s operating subsidiary products and services involve or are offered to certain of the Customer ExAlt Trusts. Certain of the Customer ExAlt Trusts hold interests in alternative assets and therefore recognize changes in such assets’ net asset value in earnings. Certain other Customer ExAlt Trusts pay interest on the ExAlt Loans to Ben Liquidity and transaction fees to Ben Liquidity and Ben Custody in connection with the liquidity transactions, and pay fees to Ben Custody for providing full-service trust administration services to the trustees of the Customer ExAlt Trusts. The amounts paid to Ben Liquidity and Ben Custody are eliminated solely for financial reporting purposes in our consolidated financial statements but directly impact the allocation of income (loss) to Ben’s and BCH’s equity holders.

The Corporate & Other category includes the following items, among others:

•Equity-based compensation;

•Gains (losses) on changes in the fair value of interests in the GWG Wind Down Trust (or common stock and L Bonds of GWG Holdings, as applicable) held by Ben;

•Interest expense incurred on the corporate related debt transactions; and

•Operations of Ben Insurance Services and Ben Markets that are not considered reportable segments as they do not meet the quantitative criteria to be separately reported.

The Corporate & Other category also consists of unallocated corporate overhead and administrative costs.

These segments are differentiated by the products and services they offer as well as by the information used by the Company’s chief operating decision maker to determine allocation of resources and assess performance. Operating income (loss) is the measure of profitability used by management to assess the performance of its segments and allocate resources. Performance is measured by the Company’s chief operating decision maker on an unconsolidated basis because management makes operating decisions and assesses the performance of each of the Company’s business segments based on financial and operating metrics and data that exclude the effects of consolidation of any of the Customer ExAlt Trusts.

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The following tables include the results of each of the Company’s reportable segments reconciled to the consolidated financial statements (in thousands):

	Three Months Ended September 30, 2024
	Ben Liquidity		Ben Custody		Customer ExAlt Trusts		Corporate & Other		Consolidating Eliminations		Total
External revenues
Investment income, net	$	—	$	—	$	8,541	$	—	$	—	$	8,541
Gain (loss) on financial instruments, net	—		—		571		(750)		—		(179)
Interest and dividend income	—		—		—		12		—		12
Trust services and administration revenues	—		187		—		—		—		187
Intersegment revenues
Interest income	11,978		—		—		—		(11,978)		—
Trust services and administration revenues	—		5,199		—		—		(5,199)		—
Total revenues	11,978		5,386		9,112		(738)		(17,177)		8,561
External expenses
Employee compensation and benefits	361		542		—		6,232		—		7,135
Interest expense	3,163		—		—		1,157		—		4,320
Professional services	395		30		545		6,287		—		7,257
Provision for credit losses	—		—		476		—		—		476
Loss on impairment of goodwill	—		298		—		—		—		298
Other expenses	402		187		189		2,012		—		2,790
Intersegment expenses
Interest expense	—		—		36,049		—		(36,049)		—
Provision for credit losses	4,752		—		—		—		(4,752)		—
Other expenses	—		—		3,402		—		(3,402)		—
Total expenses	9,073		1,057		40,661		15,688		(44,203)		22,276
Operating income (loss)	$	2,905	$	4,329	$	(31,549)	$	(16,426)	$	27,026	$	(13,715)

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	Three Months Ended September 30, 2023
	Ben Liquidity		Ben Custody		Customer ExAlt Trusts		Corporate & Other		Consolidating Eliminations		Total
External revenues
Investment loss, net	$	—	$	—	$	(13)	$	—	$	—	$	(13)
Loss on financial instruments, net	—		—		(41,875)		(900)		—		(42,775)
Interest and dividend income	—		—		2		112		—		114
Trust services and administration revenues	—		8		—		(95)		—		(87)
Intersegment revenues
Interest income	13,022		—		—		—		(13,022)		—
Trust services and administration revenues	—		6,482		—		—		(6,482)		—
Total revenues	13,022		6,490		(41,886)		(883)		(19,504)		(42,761)
External expenses
Employee compensation and benefits	1,482		545		—		13,371		—		15,398
Interest expense	2,120		—		1,794		1,200		—		5,114
Professional services	264		89		884		5,420		—		6,657
Loss on impairment of goodwill	220,212		86,472		—		—		—		306,684
Other expenses	533		231		26		4,360		—		5,150
Intersegment expenses
Interest expense	—		—		29,835		—		(29,835)		—
Provision for loan losses	60,502		—		—		—		(60,502)		—
Other expenses	—		—		3,850		—		(3,850)		—
Total expenses	285,113		87,337		36,389		24,351		(94,187)		339,003
Operating income (loss)	$	(272,091)	$	(80,847)	$	(78,275)	$	(25,234)	$	74,683	$	(381,764)

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	Six Months Ended September 30, 2024
	Ben Liquidity		Ben Custody		Customer ExAlt Trusts		Corporate & Other		Consolidating Eliminations		Total
External revenues
Investment income, net	$	—	$	—	$	19,569	$	—	$	—	$	19,569
Loss on financial instruments, net	—		—		(604)		(758)		—		(1,362)
Interest and dividend income	—		—		—		24		—		24
Trust services and administration revenues	—		376		—		—		—		376
Intersegment revenues
Interest income	22,827		—		—		—		(22,827)		—
Trust services and administration revenues	—		10,392		—		—		(10,392)		—
Total revenues	22,827		10,768		18,965		(734)		(33,219)		18,607
External expenses
Employee compensation and benefits	791		898		—		9,296		—		10,985
Interest expense	6,244		—		—		2,364		—		8,608
Professional services	869		426		1,167		10,339		—		12,801
Provision for credit losses	—		—		998		2		—		1,000
Loss on impairment of goodwill	—		3,427		—		265		—		3,692
Release of loss contingency related to arbitration award	—		—		—		(54,973)		—		(54,973)
Other expenses	853		401		309		4,308		—		5,871
Intersegment expenses
Interest expense	—		—		70,848		—		(70,848)		—
Provision for credit losses	11,679		—		—		—		(11,679)		—
Other expenses	—		—		6,821		—		(6,821)		—
Total expenses	20,436		5,152		80,143		(28,399)		(89,348)		(12,016)
Operating income (loss)	$	2,391	$	5,616	$	(61,178)	$	27,665	$	56,129	$	30,623

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	Six Months Ended September 30, 2023
	Ben Liquidity		Ben Custody		Customer ExAlt Trusts		Corporate & Other		Consolidating Eliminations		Total
External revenues
Investment income, net	$	—	$	—	$	487	$	—	$	—	$	487
Loss on financial instruments, net	—		—		(43,679)		(2,557)		—		(46,236)
Interest and dividend income	—		—		10		220		—		230
Trust services and administration revenues	—		15		—		—		—		15
Intersegment revenues
Interest income	25,028		—		—		—		(25,028)		—
Trust services and administration revenues	—		13,050		—		—		(13,050)		—
Total revenues	25,028		13,065		(43,182)		(2,337)		(38,078)		(45,504)
External expenses
Employee compensation and benefits	3,975		1,105		—		46,141		—		51,221
Interest expense	2,878		—		3,668		2,352		—		8,898
Professional services	897		589		2,145		13,399		—		17,030
Loss on impairment of goodwill	1,121,212		281,777		—		—		—		1,402,989
Other expenses	1,187		438		383		10,084		—		12,092
Intersegment expenses
Interest expense	—		—		59,615		—		(59,615)		—
Provision for loan losses	69,998		—		—		—		(69,998)		—
Other expenses	—		—		7,694		—		(7,694)		—
Total expenses	1,200,147		283,909		73,505		71,976		(137,307)		1,492,230
Operating income (loss)	$	(1,175,119)	$	(270,844)	$	(116,687)	$	(74,313)	$	99,229	$	(1,537,734)

	As of September 30, 2024
	Ben Liquidity		Ben Custody		Customer ExAlt Trusts		Corporate & Other		Consolidating Eliminations		Total
Loans to Customer ExAlt Trusts, net	$	260,686	$	—	$	—	$	—	$	(260,686)	$	—
Investments, at fair value	—		—		334,987		—		—		334,987
Other assets	1,609		21,909		18,025		14,392		(35,148)		20,787
Goodwill and intangible assets, net	—		7,469		—		5,545		—		13,014
Total Assets	$	262,295	$	29,378	$	353,012	$	19,937	$	(295,834)	$	368,788
	As of March 31, 2024
	Ben Liquidity		Ben Custody		Customer ExAlt Trusts		Corporate & Other		Consolidating Eliminations		Total
Loans to Customer ExAlt Trusts, net	$	256,184	$	—	$	—	$	—	$	(256,184)	$	—
Investments, at fair value	—		—		329,113		6		—		329,119
Other assets	5,814		20,398		19,467		12,510		(35,513)		22,676
Goodwill and intangible assets, net	—		10,896		—		5,810		—		16,706
Total Assets	$	261,998	$	31,294	$	348,580	$	18,326	$	(291,697)	$	368,501

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16.    Risks and Uncertainties

The Customer ExAlt Trusts hold investments in alternative assets, public and private equity securities, and debt securities that are exposed to market risk, credit risk, currency risk, and interest rate risk. Currently, these investments, whose cash flows serve as collateral to the ExAlt Loans, primarily are comprised of alternative assets consisting of private equity limited partnership interests, which are primarily denominated in the U.S. dollar, Euro, and Canadian dollar. The financial statements risks, stemming from such investments, are those associated with the determination of estimated fair values, the diminished ability to monetize certain investments in times of strained market conditions, the recognition of income and recognition of impairments on certain investments.

The portfolio of alternative assets covers the following industry sectors and geographic regions for the periods shown below (dollar amounts in thousands):

	September 30, 2024				March 31, 2024
Industry Sector	Value		Percent of Total		Value		Percent of Total
Food and staples retailing	$	66,517	22.1	%	$	41,721	14.2	%
Software and services	44,683		14.8		42,908		14.6
Diversified financials	30,222		10.0		30,297		10.3
Utilities	29,693		9.9		28,768		9.8
Energy	17,151		5.7		19,930		6.8
Capital goods	15,733		5.2		23,146		7.9
Semiconductors and Semiconductor Equipment	14,797		4.9		16,144		5.5
Health care equipment and services	14,441		4.8		16,520		5.6
Other(1)	68,151		22.6		74,482		25.3
Total	$	301,388	100.0	%	$	293,916	100.0	%

(1) Industries in this category each comprise less than 5 percent. Semiconductors and Semiconductor Equipment and Health Care Equipment and Services is shown separately as it comprised greater than 5 percent in the prior period.

	September 30, 2024				March 31, 2024
Geography	Value		Percent of Total		Value		Percent of Total
North America	$	150,864	50.1	%	$	164,205	55.9	%
South America	68,166		22.6		43,543		14.8
Asia	46,342		15.4		49,385		16.8
Europe	35,337		11.7		35,870		12.2
Africa	679		0.2		913		0.3
Total	$	301,388	100.0	%	$	293,916	100.0	%

The ExAlt Loans, which are eliminated upon consolidation solely for financial reporting purposes, are collateralized by the cash flows originating from the Customer ExAlt Trusts’ investments in alternative assets, public and private equity securities, and debt securities, without recourse to the customer. These ExAlt Loans are a key determinant in income (loss) allocable to Ben’s and BCH’s equity holders. Ben has underwriting and due diligence procedures and utilizes market rates. Finally, the Customer ExAlt Trusts provide for excess cash flows from a collective pool of alternative assets, public and private equity securities, and debt securities, to be utilized to repay the ExAlt Loans to Ben from the Customer ExAlt Trusts when cash flows from the customer’s original alternative assets are not sufficient to repay the outstanding principal, interest, and fees. Excess cash flows from the collective pool of alternative assets, public and private equity securities, and debt securities, above those needed to satisfy the outstanding principal interest and fees of the ExAlt Loans are available to pay contingent interest to Ben on the ExAlt Loans up to a specified contingent interest rate.

As discussed in Note 1, Ben received a charter from the state of Kansas and established an office in the state of Kansas. If we are unable to maintain the Kansas charter or obtain a charter from another state if we no longer hold the Kansas charter, our ability to affect parts of our business plan, as currently constituted, may be compromised.

In October 2023, following a series of attacks by Hamas on Israeli civilian and military targets, Israel declared war on Hamas in Gaza. In February 2022, the Russian Federation and Belarus commenced a military action with the country of Ukraine and

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as a result, various nations, including the United States, have instituted economic sanctions against the Russian Federation and Belarus. The ongoing Russia-Ukraine conflict and Israel-Hamas conflict could have a negative impact on the economy and business activity globally (including in the countries in which the Customer ExAlt Trusts currently holds investments or may hold investments in the future), and therefore, could adversely affect the performance of the Customer ExAlt Trusts’ investments.

The extent and impact of any sanctions imposed in connection with the Russia-Ukraine conflict may cause financial market volatility and impact the global economy. Volatility and disruption in the equity and credit markets can adversely affect the portfolio companies underlying the investments held by the Customer ExAlt Trusts and adversely affect the investment performance. Our ability to manage exposure to market conditions is limited. Market deterioration could cause the Company to experience reduced liquidity, earnings and cash flow, recognize impairment charges, or face challenges in raising capital, and making investments on attractive terms. Adverse market conditions can also affect the ability of investment funds held by the Customer ExAlt Trusts to liquidate positions in a timely and efficient manner. As a result, this presents material uncertainty and risk with respect to the performance of the investments held by the Customer ExAlt Trusts, even though the Customer ExAlt Trusts do not hold any investments with material operations in Russia, Ukraine, or Israel. The cash flows from the investment held by the Customer ExAlt Trusts serve as the collateral to the ExAlt Loans and the fees that are paid by the Customer ExAlt Trusts to Ben for administering these trusts, both of which are key determinants in the income allocated to BCG’s and BCH’s equity holders.

Further, these events may result in reduced opportunities for future liquidity solution transactions with our customers and make it more difficult for the Customer ExAlt Trusts to exit and realize value from its existing investments, potentially resulting in a decline in the value of the investments held in the Customer ExAlt Trusts. Such a decline could cause our revenue and net income to decline, including the revenues and net income allocated to BCG’s and BCH’s equity holders.

The Company continues to evaluate the impact of the ongoing Russia-Ukraine conflict, Israel-Hamas conflict and other items, such as inflation and rising interest rates, and assess the impact on financial markets and the Company’s business. The Company’s future results may be adversely affected by slowdowns in fundraising activity and the pace of new liquidity transactions with our customers. Management is continuing to evaluate the impact of the Russia-Ukraine conflict and the Israel-Hamas conflict and has concluded that while it is reasonably possible that such conflicts could have a negative effect on the Company’s financial position and/or results of its operations, the specific impact is not readily determinable as of the date of these consolidated financial statements. Consequently, the consolidated financial statements do not include any adjustments that might result from the outcome of these uncertainties.

17.    Commitments and Contingencies

In the normal course of business, we have various outstanding commitments and contingent liabilities that are not reflected in the accompanying consolidated financial statements. There are no significant commitments and contingencies other than those disclosed below. Ben is a party to legal actions incidental to the business. Based on the opinion of legal counsel, management has concluded with regard to all commitments and contingencies disclosed below that either the outcome is not probable or the potential liability cannot be reasonably estimated, or both.

Lease Commitments

The Company operates on a month-to-month rental basis for its office premises. The Company also subleased an aircraft under the Aircraft Sublease, which expired on January 1, 2024, with Bradley Capital as discussed in Note 13. Rental expense for our premises and for the Aircraft Sublease for the three months ended September 30, 2024 and 2023, totaled $0.2 million and $1.6 million, respectively. Rental expense for our premises and for the Aircraft Sublease for the six months ended September 30, 2024 and 2023, totaled $0.3 million and $3.3 million, respectively.

Unfunded Capital Commitments

The Customer ExAlt Trusts had $47.2 million and $47.8 million of potential gross capital commitments as of September 30, 2024 and March 31, 2024, respectively, representing potential limited partner capital funding commitments on the interests in alternative asset funds. The Customer ExAlt Trusts holding the interest in the limited partnership for the alternative asset fund is required to fund these limited partner capital commitments per the terms of the limited partnership agreement. Capital funding commitment reserves are maintained by certain of the associated trusts within the ExAlt PlanTM or affiliated entities. To the extent that the associated Customer ExAlt Trust or their affiliated entities cannot pay the capital funding commitment, Ben is obligated to lend sufficient funds to meet the commitment. Any amounts advanced by Ben to the Customer ExAlt Trusts for these limited partner capital funding commitments above the associated capital funding commitment reserves, if any, held by the associated Customer ExAlt Trusts or their affiliated entities are added to the ExAlt Loan balance between Ben and the Customer ExAlt Trusts and are expected to be recouped through the cash distributions from the alternative asset fund that collateralizes such ExAlt Loan.

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Capital commitments generally originate from limited partner agreements having fixed or expiring expiration dates. The total limited partner capital funding commitment amounts may not necessarily represent future cash requirements. The majority, or 90%, of our portfolio with an unfunded commitment has a vintage of 2012 and prior. As the vintages continue to age, a cash requirement becomes less likely. We consider the creditworthiness of the investment on a case-by-case basis. At September 30, 2024 and March 31, 2024, there were no reserves for losses on unused commitments to fund potential limited partner capital funding commitments.

Legal Proceedings

Paul Capital Advisors Lawsuit

On February 18, 2022, Paul Capital Advisors (“PCA”) filed a lawsuit against MHT, Ben, and two trust advisors (the “Trust Advisors”), Murray Holland (part-owner of MHT and who served as the President and CEO of GWG Holdings beginning in mid-2019 through November 2022) and James Turvey (an employee of Ben). While Ben was named as a defendant, PCA did not assert claims against or seek relief from Ben but instead only sought the removal and replacement of the Trust Advisors. The lawsuit concerns a set of transactions that utilized a trust structure with MHT as the sole beneficiary.

On April 18, 2022, PCA amended its original complaint. The amended complaint asserted six new causes of action arising out of the same set of transactions, including, (i) purported breaches of contract against Ben, MHT, and the Trust Advisors; (ii) purported fraud against MHT, Ben and certain officers of Ben; and (iii) promissory estoppel against MHT, Ben, and the Trust Advisors. The amended complaint also sought additional relief in the form of (x) damages “in an amount to be proven at trial” and (y) an order granting rescission of an amendment to one of the transaction agreements or a holding declaring it invalid.

On October 3, 2022, the Court entered an order dismissing count I of PCA’s complaint in accordance with its memorandum opinion and count II in light of the parties’ agreement that it should also be dismissed. On November 1, 2022, defendants filed their opening briefs in support of their motions to dismiss the remaining counts. On December 20, 2022, PCA filed its answering brief in opposition to defendants’ motions to dismiss the remaining counts. In accordance with the parties’ stipulated briefing schedule, defendants’ reply briefs were due by January 24, 2023. Oral argument on the motions to dismiss was held on May 8, 2023. On August 29, 2023, the Court issued a letter opinion that denied defendants’ motions to dismiss with respect to most of the remaining counts, explaining that the Court was unwilling to determine the parties’ rights under the various agreements at the pleadings stage and that discovery may make these issues ripe for summary judgment. The Court did, however, grant defendants’ motions to dismiss as to one of PCA’s promissory estoppel claims and its claim for equitable fraud. On October 25, 2023, defendants filed their respective answers to PCA’s second amended complaint.

On November 9, 2023, defendants filed a motion to bifurcate, requesting that the Court of Chancery first resolve the threshold issue of PCA’s standing under the CVR Contract and Exchange Trust Agreements before proceeding on the merits. On November 29, 2023, PCA filed its opposition to defendants’ motion to bifurcate, and on December 8, 2023, defendants filed their reply brief. On June 24, 2024, the Court of Chancery heard oral argument and issued its ruling granting defendants’ motion to bifurcate. In its ruling, the Court of Chancery ordered the parties to promptly conduct limited standing-related discovery to allow final resolution of the standing issue on summary judgment by January 2025.

Defendants intend to vigorously defend against each and every cause of action asserted against them in the second amended complaint. Due to the inherent uncertainties of litigation, we cannot accurately predict the ultimate outcome of this matter. Given the uncertainty of litigation and the preliminary stage of this claim, we are currently unable to estimate the probability of the outcome of these actions or the range of reasonably possible losses, if any, or the impact on our results of operations, financial condition or cash flows; however, the maximum exposure of the litigation with PCA could be up to $350 million plus costs and expenses.

Equity Awards Arbitration

On December 16, 2022, a former member of the Board of Directors of Beneficient Management, LLC (the “Claimant”) initiated a private arbitration in the International Court of Arbitration of the International Chamber of Commerce, challenging the termination of certain equity awards under two incentive plans by the administrator of the incentive plans. The Claimant sought total damages of $36.3 million plus attorney’s fees and punitive damages. On April 23, 2024, the sole arbitrator held that in terminating the Claimant’s equity awards, the Company had breached its contractual obligations, and as a result, awarded the Claimant $55.3 million in compensatory damages, including pre-judgment interest, plus post-judgment interest (the “Arbitration Award”). Neither attorneys’ fees nor punitive damages were awarded to the Claimant. The Company was also asked to pay arbitration-related costs in the amount of approximately $0.1 million. The Company recorded a loss related to the Arbitration Award in the year ended March 31, 2024 consolidated statement of comprehensive income (loss) in the amount of $55.0 million. The liability associated with the Arbitration Award was reflected in the accounts payable and accrued expenses line item in the March 31, 2024 consolidated statement of financial condition.

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On July 29, 2024, the Texas State District Court, Dallas County 134th Judicial District (the “Texas District Court”) entered an order vacating the Arbitration Award in its entirety. The Texas District Court directed the parties to file motions requesting any further relief that may be available within twenty days of the order. On August 2, 2024, the Claimant filed an appeal to challenge the order vacating the Arbitration Award in the Texas Fifth Court of Appeals. The Company intends to vigorously defend itself in connection with the appeal.

As a result of the order, during the three-months ended June 30, 2024, the Company released the liability associated with the Arbitration Award, which resulted in the release of the previously recognized loss contingency accrual in the amount of $55.0 million being reflected in the six months ended September 30, 2024 consolidated statement of comprehensive income (loss).

GWG Holdings Reorganization and Other Litigation

On April 20, 2022 and October 31, 2022, GWG Holdings and certain of its subsidiaries (the “Debtors”) filed voluntary petitions for reorganization under Chapter 11 of the United States Bankruptcy Code thereby commencing those certain chapter 11 cases (the “Chapter 11 Cases”). As part of the Chapter 11 reorganization process, it is possible that claims or causes of action arising from prior transactions with GWG Holdings could be advanced against BCG as part of the Chapter 11 Cases or in separate litigation. Such claims and causes of action could include (i) a request to avoid some or all of such transactions, including the transaction whereby GWG Holdings released its right to appoint a majority of the members of Ben Management’s board of directors, (ii) challenges to the reasonableness of the value received by the Debtors in such transactions, and (iii) efforts to recover the value of any transfers to BCG. A mediator has been appointed to oversee the mediation of certain matters between BCG, GWG Holdings and its debtor-affiliates, and certain other constituencies. The mediation commenced on January 30, 2023 and is still ongoing. We estimate that the maximum potential negative impact of any Retained Causes of Action to be between approximately $155 million and $382 million.

Further, the Official Committee of Bondholders (the “OBC”) in the Chapter 11 Cases has also filed a motion seeking standing to prosecute causes of actions on behalf of the Debtors’ estate. The OBC’s motion was deemed to be withdrawn upon the effective date of the Debtors’ bankruptcy plan, which occurred on August 1, 2023. The OBC’s motion set forth causes of action related to certain past transactions between the Debtors and Ben, including its directors. The OBC’s motion stated the proposed claims could add a maximum exposure of up to $500 million worth of additional value to the Debtors’ estate. Ben and its CEO filed motions to object to the OBC’s motion that refutes the allegations. The Debtors have indicated they oppose the OBC’s motion for standing and intend to address such alleged claims, if any, as part of a global plan of reorganization, including a possible mediated resolution. Ben intends to vigorously defend itself against any claims, should they be brought by the Litigation Trust.

Scura Action

On March 30, 2023, David Scura and Clifford Day, on behalf of themselves and all others similarly situated, filed a class action lawsuit in the United States District Court for Northern District of Texas against Ben, certain members of its board of directors (Brad K. Heppner, Peter T. Cangany, Richard W. Fisher, Thomas O. Hicks, Dennis P. Lockhart, and Bruce W. Schnitzer), certain past members of the board of directors of GWG Holdings (Jon R. Sabes and Steven F. Sabes), FOXO Technologies Inc. (“FOXO”), and Emerson Equity LLC (“Emerson”) (the “Scura Action”). The suit alleges that the defendants defrauded GWG Holdings’ investors, and it asserts claims on behalf of a putative class consisting of all persons and entities who purchased or otherwise acquired GWG Holdings’ L Bonds or preferred stock of GWG Holdings between December 23, 2017, and April 20, 2022. The suit alleges that (i) BCG, the individual defendants, and FOXO violated Sections 10(b) of the Exchange Act and SEC Rule 10b-5 promulgated thereunder, (ii) that the individual defendants violated Section 20(a) of the Exchange Act, and (iii) that Emerson violated Section 15(c)(1)(A) of the Exchange Act. The complaint does not allege the total amount of damages sought by the plaintiffs.

Bayati Action

On May 3, 2023, Thomas Horton and Frank Moore, in their capacities as the Lead Plaintiffs in the Bayati Action (the “Lead Plaintiffs”), filed a motion to lift the automatic stay in the Chapter 11 Cases in order to file a motion in the Northern District of Texas seeking to consolidate the Bayati and Scura Actions under the Private Securities Litigation Reform Act. On June 8, 2023, the plaintiffs in the Scura Action filed a voluntary notice of dismissal without prejudice.

On August 16, 2023, Thomas Horton and Frank Moore, in their capacities as the Lead Plaintiffs in the Bayati Action, filed a notice regarding the confirmation of the Debtors’ Chapter 11 plan in the GWG bankruptcy, a motion seeking to lift the bankruptcy stay and a motion to consolidate the Bayati and Horton Actions. On September 12, 2023, the court entered an order consolidating the Bayati and Horton Actions. The court ordered that the consolidated action shall bear the caption “In re GWG Holdings, Inc. Securities Litigation.” The court lifted the bankruptcy stay and ordered the Lead Plaintiffs to file a new consolidated complaint within 20 days.

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On October 2, 2023, the Lead Plaintiffs filed a Consolidated Class Action Complaint against the Company, Brad K. Heppner, Peter T. Cangany, Jr., Thomas O. Hicks, Dennis P. Lockhart, Bruce W. Schnitzer, Murray T. Holland, Timothy L. Evans, David H. de Weese, Roy W. Bailey, David F. Chavenson, and Whitley Penn LLP, alleging Securities Act violations arising out of the Offering. The complaint alleges that the individual defendants violated Sections 11, 12(a)(2), and 15 of the Securities Act, and further alleges that the Company violated Section 15 of the Securities Act. The Company, Brad K. Heppner, Peter T. Cangany, Jr., Thomas O. Hicks, Dennis P. Lockhart, and Bruce W. Schnitzer (the “Ben Individual Defendants”) filed a motion to dismiss the complaint on November 7, 2023. On January 4, 2024, defendants Murray Holland, Tim Evans, Roy Bailey, Whitley Penn, David Chavenson and David H. de Weese filed motions to dismiss. The Lead Plaintiffs’ responded to the various motions to dismiss on February 20, 2024, and the defendants (other than Whitley Penn) filed replies in support of the motions to dismiss on March 21, 2024. The Company and the Ben Individual Defendants intend to vigorously defend themselves in the litigation.

On October 27, 2023, David Scura filed a petition in Dallas County District Court against Brad K. Heppner, Jon R. Sabes, Steven F. Sabes, Peter T. Cangany, Jr., Thomas O. Hicks, Dennis P. Lockhart, Bruce W. Schnitzer, the Company and FOXO, alleging violation of the Texas Securities Act, common law fraud, unjust enrichment, and civil conspiracy to defraud and seeking compensatory damages, costs and expenses. The same day, Clifford Day and Carla Monahan filed a petition in Dallas County District Court against the same defendants, alleging the same claims. The parties agreed to move the defendants’ deadline to respond to the petition to February 19, 2024. On April 10, 2024, the plaintiffs and Ben parties entered into a twelve-month tolling agreement, and the plaintiffs filed motions to nonsuit their claims that the courts granted on April 12, 2024 and April 16, 2024, respectively. The Company and the Ben Individual Defendants intend to vigorously defend themselves in the litigation.

This litigation can subject us and certain of our directors to substantial costs and divert resources and the attention of management from our business. If these claims are successful, our business could be seriously harmed. Even if the claims do not result in protracted litigation or are resolved in our favor and the favor of our directors, the time and resources needed to resolve such claims could divert our management’s resources and adversely affect our business.

GWG Litigation Trust Adversary Proceedings

On April 19, 2024, the Litigation Trustee filed a complaint (the “LT Complaint”) as an Adversary Proceeding in the bankruptcy of GWG Holdings, Inc. currently pending in the United States Bankruptcy Court in the Southern District of Texas against Ben Management, the Company, BCH, Beneficient Capital Company II, L.L.C., f/k/a Beneficient Capital Company, L.L.C. (together with New BCC, defined herein, “BCC”), Beneficient Capital Company, L.L.C. (“New BCC”), Beneficient Holdings, Inc. (“BHI”), various current or former officers and directors of the Company, HCLP and certain of its affiliates, former officers and directors of the Company’s former parent company, trustees of certain trusts that are directly or indirectly controlled by, or operate for the benefit of, Ben’s CEO and founder or his family, entities directly or indirectly held by, or that are under common control with, such trusts, and in which Ben’s CEO and his family members are among classes of economic beneficiaries, whether or not Ben’s CEO is entitled to economic distributions from such trusts, and others. The LT Complaint alleges causes of action that include (i) actual or constructive fraudulent transfer for certain transactions between GWG and the Company or its affiliates, (ii) breaches of fiduciary duty, aiding and abetting breaches of fiduciary duty, and civil conspiracy, (iii) unjust enrichment, (iv) avoidance of any purported releases of the defendants, and (v) disallowance of the claims filed by certain defendants, including the Company, in the GWG bankruptcy case.

More specifically, such challenged transactions relate to (i) GWG’s purchase of $10 million of equity in the Company on June 12, 2019, (ii) GWG’s commitment on May 31, 2019 to loan trusts affiliated with the Company $65 million that GWG funded in two tranches ($50 million on June 3, 2019 and $15 million on November 22, 2019) and the repayment of such loan, (iii) GWG’s capital contribution to the Company of $79 million on December 31, 2019, (iv) approximately $145 million in capital contributions by GWG to the Company pursuant to a Preferred Series C Unit Purchase Agreement, and (v) the Company’s ultimate decoupling from GWG. Additionally, the LT Complaint seeks to void the debts owed by the Company to HCLP. The LT Complaint seeks to, among other things, void certain of the transactions and/or recover damages, attorney’s fees and expenses, pre-judgment and post-judgment interest. The LT Complaint does not purport to estimate the damages sought. The Company, its affiliates and its officers and directors intend to vigorously defend themselves against these claims.

Wells Notice

On June 29, 2023, the Company received a “Wells Notice” from the Staff of the SEC’s Division of Enforcement, stating that the Staff has made a preliminary determination to recommend that the SEC file a civil enforcement action against the Company alleging violations of certain provisions of the Securities Act and the Exchange Act. The staff’s allegations appeared to relate to, among other things, the Company’s association with an amendment to the debt coverage ratio calculation approved by certain holders of GWG Holdings issued debt in 2019 under an indenture and related disclosures by GWG, the December 31, 2019 valuation of the Company’s goodwill by a third-party valuation agent, potential contractual

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rights concerning an amendment to the Company’s governing documents, and other items in the historical disclosures of GWG.

On July 1, 2024, the Company received a termination letter from the SEC advising the Company that the SEC’s investigation related to the Company had concluded and that the Staff does not intend to recommend any enforcement actions by the SEC. The termination letter was provided to the Company under the guidelines of the final paragraph of Securities Act Release No. 5310 which states, among other things, that “[such notice] must in no way be construed as indicating that the party has been exonerated or that no action may ultimately result from the staff’s investigation of that particular matter.” While there have been no further actions to date, there can be no assurance that there will not be any further action on this or other matters by the SEC.

18.    Supplemental Cash Flow Information

Cash paid for taxes for the six months ended September 30, 2024 and 2023 was de minimis. Cash paid for interest for the six months ended September 30, 2024 and 2023, was $1.5 million and nil, respectively.

Supplemental disclosure of noncash investing and financing activities include:

Six Months Ended September 30, 2024:

–$125.5 million reclass of BCH Preferred A.0 from temporary equity to permanent equity.

–$8.8 million accrual for BCH Preferred A.0 guaranteed payment.

–$1.2 million settlement of liability for issuance of Class A common stock.

–$0.3 million of distributions payable to the Charitable Beneficiaries.

Six Months Ended September 30, 2023:

–$793.4 million conversion of BCG Class A common units for Class A common stock.

–$791.9 million conversion of BCG Preferred B.2 for Class A common stock.

–$205.8 million conversion of BCH Preferred C for Class A common stock.

–$193.9 million exchange of BCH Preferred A.1 for Class A common stock and Class B common stock in BCG Recapitalization.

–$37.6 million issuance of Issuance of Series B-1 preferred stock in connection with recent financings.

–$8.3 million accrual for BCH Preferred A.0 guaranteed payment.

–$6.9 million deemed dividend from BCH Preferred A.1 to BCG Preferred B.2 for accrual of preferred return.

–$5.3 million issuance of Class A common for transactions closing post de-SPAC.

–$4.0 million settlement of liability for issuance of Class A common stock.

–$3.9 million conversion of BCH Class S Ordinary to Class A common stock.

–$1.1 million of noncash issuance of noncontrolling interest.

–$0.6 million of distributions payable to the Charitable Beneficiaries.

The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the consolidated statements of financial condition and that are shown in the consolidated statements of cash flows:

	September 30, 2024		March 31, 2024
Cash and cash equivalents	$	4,482	$	7,913
Restricted cash	314		64
Total cash, cash equivalents and restricted cash	$	4,796	$	7,977

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19.    Subsequent Events

The Company has evaluated subsequent events through the date the financial statements were available to be issued, and determined that there have been no events, other than those disclosed below, that have occurred that would require adjustments to our disclosures in the consolidated financial statements.

Amendment to Articles of Incorporation

On October 2, 2024, the Company filed a Certificate of Amendment to the Company’s Articles of Incorporation with the Secretary of State of the State of Nevada to increase the number of authorized shares of Class A common stock from 18,750,000 to 5,000,000,000. The increase in the number of authorized shares was approved by the Company’s stockholders on October 2, 2024.

Potential Future Goodwill Impairment

Through the date of this report, the Company has not experienced any further significant sustained decline in the price of its common stock from the values at September 30, 2024 of $1.23. Significant sustained declines in our common stock and related market capitalization have in the past been triggering events requiring interim goodwill impairment testing. In the future, should we experience a significant sustained decrease in the Company’s common stock from the September 30, 2024 values, this may be a potential indicator that a portion of our remaining goodwill is impaired and may require a quantitative impairment assessment of the Company’s assets, including goodwill and intangible assets, which may result in an additional impairment charge in a future period. While management cannot predict if or when additional future goodwill impairments may occur, additional goodwill impairments could have material adverse effects on the Company’s financial condition, operating income, net assets, and/or the Company’s cost of, or access to, capital.

Convertible Debentures Second Closing

On November 13, 2024, the Second Closing under the securities purchase agreement with Yorkville occurred whereby the Company issued an additional $2.0 million in aggregate principal amount of Convertible Debentures for proceeds of approximately $1.8 million and issued an additional Yorkville Warrant to purchase up to 662,691 shares of Class A common stock. The terms for the Convertible Debentures and Yorkville Warrants issued as part of the Second Closing are consistent with those described in Note 7 under the Convertible Debentures heading.

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ITEM 2 — MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The following discussion and analysis should be read in conjunction with “Cautionary Note Regarding Forward-Looking Statements,” and the accompanying consolidated financial statements and notes thereto of Beneficient (f/k/a The Beneficient Company Group, L.P.) set forth in Part I, Item I of this Quarterly Report on Form 10-Q and our March 31, 2024 audited consolidated financial statements and notes thereto included in our Annual Report on Form 10-K filed with the U.S. Securities and Exchange Commission (the “SEC”) on July 9, 2024 (“Annual Report”). This discussion and analysis is based on the beliefs of our management, as well as assumptions made by, and information currently available to, our management. Except as otherwise required by the context, references to the “Company,” “Ben,” “we,” “us,” “our,” and “our operating subsidiaries,” are to Beneficient, a Nevada corporation and its consolidated subsidiaries (but excluding the Customer ExAlt Trusts as defined below). References to “BCG,” “Ben,” “we,” “us,” “our,” 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.” All references to “Beneficient” refer solely to Beneficient, a Nevada corporation, “BCG” refer solely to The Beneficient Company Group, L.P., and all references to “BCH” refer solely to Beneficient Company Holdings, L.P., a subsidiary of BCG.

Risk Relating to Forward-Looking Statements

This discussion and analysis contains forward-looking statements, which reflect our current views with respect to, among other things, our operations and financial performance. You can identify these forward-looking statements by the fact that they do not strictly relate to historical or current facts. They use words such as “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “outlook,” “plan,” “potential,” “predict,” “seek,” “should,” “will,” “would,” the negative version of these words, or other comparable words or phrases. Such forward-looking statements are subject to various risks and uncertainties. In particular, these include statements relating to future actions, statements regarding future performance or results and anticipated services or products, sales efforts, expenses, the outcome of contingencies, trends in operations and financial results. Actual results could differ materially from those expressed or implied in the forward-looking statements. See “—Cautionary Note Regarding Forward-Looking Statements.”

Overview

We are a technology-enabled financial services company that provides simple, rapid, and cost-effective liquidity solutions and related trustee, custody, and trust administration services to participants in the alternative assets 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. Our products and services are designed to meet the unmet needs of mid-to-high net worth (“MHNW”) individual investors, small-to-midsize institutional (“STMI”) investors, family offices (“FAMOs”) and GPs, which collectively are our Customers.

Currently, our primary operations relate to our liquidity, primary capital, trustee, custody and alternative asset trust administration products and services through Ben Liquidity, L.L.C. and its subsidiaries (collectively, “Ben Liquidity”) and Ben Custody, L.L.C. and its subsidiaries (collectively, “Ben Custody”), respectively.

Through Ben Liquidity, we finance liquidity and primary capital transactions for our Customers using a proprietary trust structure we implement for our Customers (we refer to such trusts collectively as the “Customer ExAlt Trusts”). The Customer ExAlt Trusts facilitate the exchange of a Customer’s alternative assets or to fulfill a Customer’s primary capital needs for consideration using a proprietary financing structure (such structure and related process, the “ExAlt PlanTM”). In the ExAlt PlanTM financings, a subsidiary of Ben Liquidity, Beneficient Fiduciary Financial, L.L.C. (“BFF”), a Kansas based trust company that provides fiduciary financing to fidfin trusts, makes loans (each, an “ExAlt Loan”) to certain of the Customer ExAlt Trusts, which in turn employ a portion of the loan proceeds to acquire and deliver agreed upon consideration to the Customer in exchange for their alternative assets or to fulfill their primary capital needs. Since becoming a public company, we have also offered shares of our Class A common stock or convertible preferred stock in financings as consideration for the Customer ExAlt Trusts to meet capital calls or make other capital contributions in alternative asset funds. BFF is chartered as a Kansas Technology Enabled Fiduciary Financial Institution (“TEFFI”) under the Technology-Enabled Fiduciary Financial Institution Act (the “TEFFI Act”) and regulated by the Kansas Office of the State Bank Commissioner (the “OSBC”). Only BFF, our subsidiary, is regulated by the OSBC. The OSBC does not regulate the entirety of Ben. Ben Liquidity generates interest and fee income earned in connection with the ExAlt Loans, which are collateralized by a portion of the cash flows from the exchanged alternative assets (the “Collateral”). While the ExAlt Loans and the related

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interest and fee income and provision for credit losses are eliminated upon consolidation of the Customer ExAlt Trusts solely for financial reporting purposes, such amounts directly impact the allocation of income (loss) to Ben’s and BCH’s equity holders.

Through Ben Custody, we currently provide 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, for fees payable quarterly.

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. (“Beneficient Transfer”), an SEC registered transfer agent, each in connection with offering our liquidity products.

While Ben’s financial products and services are presently primarily offered through Ben Liquidity and Ben Custody, Ben plans to expand its capabilities under Ben Custody and provide additional products and services through Ben Insurance, L.L.C. and its subsidiaries (collectively, “Ben Insurance Services”) and Ben Markets L.L.C., including its subsidiaries (“Ben Markets”) in the future. Ben Insurance Services plans to provide insurance products and services to certain “affiliates” (as defined in the Kansas Captive Insurance Act), including the Customer ExAlt Trusts, custody accounts and other trusts for which BFF serves as trustee or custodian, to cover risks attendant to the ownership, management and transfer of alternative assets and financings related to alternative asset transactions. Our subsidiary, Beneficient Insurance Company, L.L.C. (“BIC”), has filed an application for an insurance charter with the Commissioner of Insurance of the State of Kansas. Additionally, BIC’s wholly-owned subsidiary, PEN Indemnity Insurance Company, LTD. (“PEN”) has been registered and licensed as a Class 3 insurer with the Bermuda Monetary Authority under the Bermuda Insurance Act of 1978, and Ben Insurance Services plans to seek approval from the Bermuda authorities for PEN to become operational. Pending approval from the Bermuda authorities, PEN would advise on, retrocede and re-insure policies consistent with those policies underwritten domestically by BIC.

Each of our liquidity, primary capital, custody, trustee, trust administration, transfer agent and broker-dealer products and services are structured to be deliverable to our Customers through our online digital platform, AltAccess. AltAccess serves as the centralizing hub of our business and is an interactive, secure, end-to-end portal through which Customers select among our products and services and complete transactions in a regulated environment. Our internal technology team developed Ben’s AltAccess enterprise software systems and managed services, which consist of an integrated array of proprietary and third-party software solutions curated together to power the AltAccess platform enabling our Customers to access our products and services, select those that fit their specific needs and close transactions with Ben. The AltAccess platform is designed to ultimately be provided through a software as a service (“SaaS”) model to multiple intermediaries, including commercial lenders, and to be accessed through an application programming interface (“API”) for these intermediaries to deploy in their businesses.

AltAccess is designed to operate seamlessly across the Ben Business Units, each of which are subject to regulation by various state and federal regulatory agencies. We believe Ben’s utilization of a centralized portal as a core capability and tool for our Customer’s seamless access to a range of alternative assets products and services is unique in the industry. In conducting its trustee, custodial, fiduciary financing and other authorized operations, BFF is regulated by the OSBC (the OSBC does not regulate the entirety of Beneficient). As a result, our AltAccess platform is periodically examined by the OSBC, and is further assessed by a third-party organization to ensure System and Organizational Controls (“SOC”) 2 type 2 and SOC 3 compliance for the benefit of our Customer users.

The Customer ExAlt Trusts’ earnings on alternative assets support the repayment of the ExAlt Loans plus any related interest and fees. For financial reporting purposes, even though they are not legally owned by Ben, the Customer ExAlt Trusts are required to be consolidated subsidiaries of Ben under accounting principles generally accepted in the United States (“U.S. GAAP”). As a result, Ben Liquidity’s ExAlt Loans and related interest and fee income and provision for credit losses and Ben Custody’s fee income are eliminated in the presentation of our consolidated financial statements solely for financial reporting purposes; however, such amounts directly impact the allocation of income (loss) to Ben’s or BCH’s equity holders.

Under the applicable trust and other agreements, certain Texas and Kansas charities are the ultimate beneficiaries of the Customer ExAlt Trusts (which we refer to as “Charities” or “Economic Growth Zones” respectively, and collectively, the “Charitable Beneficiaries”), and their interests are reported as noncontrolling interests in our consolidated financial statements. The TEFFI Act requires that two and a half percent (2.5%) of the cash distributions from alternative assets serving as collateral to Ben Liquidity loans be charitably contributed by certain of the Customer ExAlt Trusts to a designated Kansas Economic Growth Zone. Accordingly, for ExAlt Loans originated on or after December 7, 2021, Economic Growth Zones are paid $0.025 for every $1.00 received by an ExAlt Trust from the corresponding alternative assets. For ExAlt Loans originated prior to December 7, 2021, in accordance with the terms of the applicable trust and other agreements, the

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Charitable Beneficiaries of the Customer ExAlt Trusts formed prior to such date, are paid $0.05 for every $0.95 paid to the applicable ExAlt Loan lender. To facilitate the payments to the Economic Growth Zones and Charities, we engage in an effort to deploy assets and cash and may experience costs as a result. As our business expands, we expect that these costs could grow.

Business Units

We offer our products and services through our principal business units, which generally align with our operating subsidiaries, including Ben Liquidity, Ben Custody, and Ben Markets.

•Ben Liquidity is our primary business line and offers Ben’s alternative asset liquidity and fiduciary financing products and primary capital products through Ben AltAccess.

•Ben Custody addresses the administrative and regulatory burden of holding alternative assets by offering trustee, custody and alternative asset trust administration support services to trustees of the Customer ExAlt Trusts, including BFF, and also offers document custodian services to Customers.

•Ben Markets provides broker-dealer and transfer agency services in connection with offering certain of our liquidity products and services.

In connection with our principal business units, we offer products and services through the following business units and operating subsidiaries.

•Ben AltAccess is our primary, customer-facing application serving as the access point through which a Customer accesses our suite of products and services.

•Ben Data provides the Customer ExAlt Trusts with certain data collection, evaluation, and analytics products and services.

In the future, we plan to offer additional products and services through Ben Insurance Services. Through Ben Insurance Services, we plan to provide insurance services to certain affiliates (as defined in the Kansas Captive Insurance Laws), including the Customer ExAlt Trusts and other trusts for which BFF serves as the trustee or custodian, to cover risks related to ownership, management, and transfer of alternative assets and the financing related to alternative asset purchases.

Certain of our operating subsidiary products and services involve or are offered to certain of the Customer ExAlt Trusts, which, while not legally owned by Ben, are consolidated subsidiaries of Ben for financial reporting purposes, and therefore transactions between our operating subsidiaries and the Customer ExAlt Trusts are eliminated in the presentation of our consolidated financial statements. However, such amounts are earned by Ben’s business lines from the Customer ExAlt Trusts and directly impact the income (loss) allocable to Ben’s and BCH’s equity holders. Accordingly, the elimination in consolidation of amounts charged by Ben to the Customer ExAlt Trusts, such as interest income and certain fee revenue, has no effect on the net income (loss) attributable to Ben, BCH or to Ben’s and BCH’s equity holders.

Business Segments

Under U.S. GAAP, we have three reportable business segments: Ben Liquidity, Ben Custody and Customer ExAlt Trusts. Our Ben Liquidity and Ben AltAccess business units comprise the Ben Liquidity operating segment. Our Ben Custody and Ben Data business lines comprise the Ben Custody operating segment.

The Customer ExAlt Trusts, which hold interests in alternative assets and pay interest and principal to Ben Liquidity, transaction fees to Ben Liquidity and Ben Custody in connection with liquidity transactions and fees to Ben Custody for providing full-service trust administration services to the trustees of the Customer ExAlt Trusts, comprise the Customer ExAlt Trusts segment. Such amounts paid to Ben Liquidity and Ben Custody are eliminated in the presentation of our consolidated financial statements but directly impact the allocation of income (loss) to Ben’s and BCH’s equity holders. The elimination of intercompany transactions are included in “Consolidating Eliminations.”

The Corporate/Other category includes unallocated corporate overhead and administrative costs, gains (losses) on changes in the fair value of GWG Holdings, Inc. (“GWG Holdings” or “GWG”) common stock and, following the emergence from bankruptcy, interests in the GWG Wind Down Trust (the “GWG Wind Down Trust”) held by Ben, interest expenses incurred on corporate-related debt transactions, and the operations of Ben Insurance Services and Ben Markets, which are not considered reportable segments as they do not meet the quantitative criteria to be separately reported.

We have allocated certain expenses to our operating segments, such as salaries, legal expenses, other general operating expenses. We have not allocated certain other expenses, including equity compensation and interest expense for certain debt agreements, to our operating segments. We may in the future determine to allocate certain additional expenses to the

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operating segments, which could have a material impact on the presentation of the results of our operating segments in any future segment presentation.

How We Generate Revenue

On a consolidated basis with the Customer ExAlt Trusts, which are variable interest entities (“VIEs”) and not owned directly or indirectly by our equity holders, we primarily recognize revenue through increases or decreases in the fair value of investments held by the Customer ExAlt Trusts. The changes in the fair value of these investments are also the primary source of revenue recognized by the Customer ExAlt Trusts business segment.

Our Ben Liquidity and Ben Custody business segments, which relate to our current operating subsidiaries that are owned by the holders of equity in the Company (including BCH), recognize revenue through (i) interest income on ExAlt Loans made to the Customer ExAlt Trusts in connection with our liquidity transactions for Customers, (ii) fee income billed at closing, but recognized as revenue ratably over the expected life of the alternative asset, for each liquidity transaction with Customers for services including access to and use of the AltAccess platform, transfer of the alternative assets, and delivery of the consideration to the client, and (iii) recurring fee income recognized each period for providing services including trustee, custody, and trust administration of the Customer ExAlt Trusts while they hold investments. Ben Liquidity and Ben Custody revenue recognized for the three and six months ended September 30, 2024 and 2023 is as follows:

a.Ben Liquidity recognized $12.0 million and $13.0 million in interest income during the three months ended September 30, 2024 and 2023, respectively. For the six months ended September 30, 2024 and 2023, Ben Liquidity recognized interest income of $22.8 million and $25.0 million, respectively.

b.Ben Custody recognized $5.4 million and $6.5 million in trust services and administration revenues during the three months ended September 30, 2024 and 2023, respectively, comprised of both the fee income billed at the closing of the transactions that is being amortized into revenue and the recurring fee income billed during the periods. For the six months ended September 30, 2024 and 2023, Ben Custody recognized trust services and administration revenues of $10.8 million and $13.1 million, respectively, comprised of both the fee income billed at the closing of the transactions that is being amortized into revenue and the recurring fee income billed during the periods.

Such revenues earned by Ben Liquidity and Ben Custody are eliminated in the presentation of our consolidated financial statements; however, the cash flows received upon repayment of the ExAlt Loans and in payment of Ben Custody fees are allocable to our and BCH’s equity holders and not the beneficiaries of the Customer ExAlt Trusts.

In addition, Corporate/Other, which also relates to Ben or subsidiaries owned by the holders of equity in the Company (including BCH), may include fee revenue recognized through services provided to Customers or the Customer ExAlt Trusts through business lines not included within Ben Liquidity and Ben Custody.

The following table presents a reconciliation of operating income (loss) of our reportable segments, excluding the Customer ExAlt Trusts, to net income (loss) attributable to Beneficient common shareholders. This reconciliation serves to provide users of our financial statements an understanding and visual aide of the reportable segments that impact net income (loss) attributable to the common shareholder and reiterates that the consolidation of the Customer ExAlt Trusts has no impact on the net income (loss) attributable to Beneficient common shareholders.

(in thousands)	Three Months Ended September 30,				Six Months Ended September 30,
	2024		2023		2024		2023
Operating income (loss)*
Ben Liquidity	$	2,905	$	(272,091)	$	2,391	$	(1,175,119)
Ben Custody	4,329		(80,847)		5,616		(270,844)
Corporate & Other	(16,426)		(25,234)		27,665		(74,313)
Plus: Gain on liability resolution	23,462		—		23,462		—
Less: Income tax expense	—		—		(28)		—
Plus: Net loss attributable to noncontrolling interests – Ben	3,067		10,604		10,254		41,290
Less: Noncontrolling interest guaranteed payment	(4,423)		(4,167)		(8,779)		(8,272)
Net income (loss) attributable to common shareholders	$	12,914	$	(371,735)	$	60,581	$	(1,487,258)

*Includes amounts eliminated in consolidation.

For information concerning the noncontrolling interests in the Customer ExAlt Trusts and in our subsidiary, BCH, see “—Basis of Presentation – Noncontrolling Interests.”

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Basis of Presentation

Elimination of Fee and Interest Income in Consolidation

Certain of our operating subsidiary products and services involve or are offered to certain of the Customer ExAlt Trusts, which are consolidated subsidiaries of Ben solely for financial reporting purposes, and therefore transactions between our operating subsidiaries and the Customer ExAlt Trusts are eliminated in the presentation of our consolidated financial statements.

As a result, Ben’s primary tangible assets reflected on our consolidated statements of financial condition are investments, mainly comprised of alternative assets held by the Customer ExAlt Trusts and the primary sources of revenue reflected on our consolidated statements of comprehensive income (loss) are investment income (loss), net, which represents changes in the net asset value (“NAV”) of these investments held by the Customer ExAlt Trusts, and gain (loss) on financial instruments, net, which represents changes in fair value of equity securities, debt securities, a derivative liability, and put options, primarily held by the Customer ExAlt Trusts. Such investment income (loss), net, and gain (loss) on financial instruments that are held by the Customer ExAlt Trusts, including interests in the GWG Wind Down Trust (formerly debt and equity securities issued by GWG Holdings), is included in the net income (loss) allocated to noncontrolling interests – Customer ExAlt Trusts in the consolidated statements of comprehensive income (loss). The revenues and expenses recognized in these line items for the activities of the Customer ExAlt Trusts do not directly impact net income (loss) attributable to Ben’s or BCH’s equity holders.

Instead, the interest and fee income earned by Ben Liquidity and Ben Custody from the Customer ExAlt Trusts, which are eliminated in the presentation of our consolidated financial statements, directly impact the share of net income (loss) attributable to Ben’s and BCH’s equity holders. First, such eliminated amounts are earned from, and funded by, the Customer ExAlt Trusts, which are a noncontrolling interest. As a result, the eliminated amounts earned by Ben Liquidity and Ben Custody from the Customer ExAlt Trusts serve to increase the attributable share of net income (loss) to Ben and BCH equity holders. Second, the terms of the Amended and Restated LPA of BCH (the “BCH A&R LPA”) (references to the “BCH A&R LPA” refer to the Amended and Restated Limited Partnership Agreement of BCH currently in effect unless otherwise indicated) provide that certain BCH income constituting the Excluded Amounts (as defined in the BCH A&R LPA) are allocated to certain BCH equity holders that are noncontrolling interests. Excluded Amounts are directly impacted by the interest and/or fee income earned by Ben Liquidity and Ben Custody from the Customer ExAlt Trusts, which are eliminated in the presentation of our consolidated financial statements. Such allocation to these noncontrolling interest holders is expected to grow as we expand our operations.

Additionally, Ben Liquidity’s and Ben Custody’s provision for credit losses is eliminated in the presentation of our consolidated financial statements but directly impacts the net income (loss) attributable to the various equity securities of Ben and BCH. Likewise, the amounts expensed by the Customer ExAlt Trusts for interest and fees owed to Ben’s operating subsidiaries are eliminated in the presentation of our consolidated financial statements but are recognized for purposes of the allocation of net income (loss) attributable to the beneficial owners of the Customer ExAlt Trusts.

Noncontrolling Interests

The consolidated financial statements of Ben include the accounts of Ben, its wholly-owned and majority-owned subsidiaries, certain VIEs, in which the Company is the primary beneficiary, and certain noncontrolling interests. The noncontrolling interests reflected in our consolidated financial statements represent the portion of BCH’s limited partnership interests or interests in the Customer ExAlt Trusts that are held by third parties. Amounts are adjusted by the noncontrolling interest holder’s proportionate share of the subsidiaries’ earnings or losses each period and for any distributions that are paid. The portion of income allocated to owners other than the Company is included in “net attributable to noncontrolling interests” in the consolidated statements of comprehensive income (loss). Our primary noncontrolling interests are described in Part II, Item 7 to our Annual Report.

Recent Developments

Amendment to Articles of Incorporation

On October 2, 2024, the Company received stockholder approval of a Certificate of Amendment to the Company’s Articles of Incorporation with the Secretary of State of the State of Nevada to increase the number of authorized shares of Class A common stock from 18,750,000 to 5,000,000,000.

First Amendment to the Ninth Amended and Restated Limited Partnership Agreement of BCH

On September 30, 2024, Ben LLC in its capacity as the sole general partner of BCH, entered into and adopted the First Amendment to the BCH A&R LPA in order to, among other things, effect (i) the redesignation of fifty percent (50%) of the aggregate capital account balances in the BCH Preferred Series A Subclass 0 Unit Accounts as non-redeemable Preferred A.0

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Accounts (such redesignated portion, the “Preferred A.0 Non-Redeemable Accounts”) and (ii) the remaining fifty percent (50%) of the capital account balances in the Preferred A.0 Accounts to remain redeemable (such remaining Preferred A.0 Accounts being the “Preferred A.0 Redeemable Accounts”), with the amendment and redesignation being applicable to all holders of the Preferred A.0 Accounts (the foregoing being referred to as the “Redesignation”). As a result of the Redesignation, approximately $125.5 million of temporary equity was reclassified to permanent equity as of September 30, 2024.

Standby Equity Purchase Agreement

On June 27, 2023, the Company entered into a Standby Equity Purchase Agreement (the “SEPA”) with YA II PN, Ltd. (“Yorkville”). Pursuant to the SEPA, the Company shall have the right, but not the obligation, to sell to Yorkville up to $250.0 million of Class A common stock at the Company’s request any time during the commitment period commencing on June 27, 2023 (the “Effective Date”) and terminating on the 36-month anniversary of the Effective Date. Each issuance and sale by the Company to Yorkville under the SEPA (an “Advance”) is subject to a maximum limit equal to the greater of: (i) an amount equal to 100% of the aggregate volume traded of the Company’s Class A common stock on the Nasdaq Stock Market, LLC (“Nasdaq”) for the five trading days immediately preceding an Advance Notice (as defined in the SEPA), or (ii) $10,000,000, which amount may be increased upon mutual consent. The Company shall not affect any sales under the SEPA and Yorkville shall not have any obligation to purchase shares of Class A common stock under the SEPA to the extent that after giving effect to such purchase and sale the aggregate number of shares of Class A common stock issued under the SEPA together with any shares of Class A common stock issued in connection with any other related transactions that may be considered part of the same series of transactions, where the average price of such sales would be less than $219.20 and the number of shares issued would exceed 19.9% of the outstanding voting Common Stock as of the date of the SEPA (the “Exchange Cap”). On June 20, 2024, the Company obtained stockholder approval pursuant to Nasdaq Listing Rule 5635(d) for the issuance of shares of Class A common stock to Yorkville in excess of the Exchange Cap.

The Company paid a structuring fee in cash and a commitment fee in an amount equal to $1.3 million (the “Commitment Fee”) by issuing 5,703 shares of Class A common stock. The Class A common stock was issued to Yorkville in July 2023.

On various dates starting on October 2, 2023 through September 30, 2024, Yorkville purchased a total of 498,125 shares of Class A common stock for at a weighted average price of $7.77 per share pursuant to the terms of the SEPA. Total sales proceeds from entry into the SEPA through September 30, 2024, were approximately $3.9 million under the terms of the SEPA. During the six months ended September 30, 2024, the Company sold 449,125 shares of Class A common stock for approximately $2.6 million. Such issuances were in reliance upon the exemption provided in Section 4(a)(2) of the Securities Act of 1933, as amended (the “Securities Act”) and Rule 506(b) promulgated thereunder.

As of the date of this Quarterly Report on Form 10-Q, the Company had offered and sold 503,827 shares on Class A common stock to Yorkville pursuant to the SEPA, including the shares issued for the Commitment Fee.

Recent Debt Financings

On October 19, 2023, Beneficient Financing, L.L.C. (the “Borrower”), a wholly owned subsidiary the Company, and BCH, as guarantor (the “Guarantor” and together with the Borrower, the “Loan Parties”), entered into a Credit and Guaranty Agreement (as amended, the “HH-BDH Credit Agreement”) with HH-BDH LLC (the “HH-BDH”), as administrative agent. All capitalized terms used but not defined herein shall have the meanings ascribed to them in the HH-BDH Credit Agreement.

HH-BDH’s sole member is Hicks Holdings. The managing member of Hicks Holdings is Mr. Thomas O. Hicks, a member of the Company’s Board of Directors (the “Board”). HH-BDH will receive customary fees and expenses in its capacity as a lender and as the administrative agent under the HH-BDH Credit Agreement, as further described below. Hicks Holdings and Mr. Hicks may be deemed to have a direct or indirect material financial interest with respect to the transactions contemplated by the HH-BDH Credit Agreement, as described below. HH-BDH funded the amounts under the HH-BDH Credit Agreement with the proceeds of a third-party financing (the “Financing”).

The HH-BDH Credit Agreement provides for a three-year term loan in the aggregate principal amount of $25.0 million (the “Term Loan”), which was fully drawn on closing.

Borrowings under the HH-BDH Credit Agreement bear interest, at the Company’s option, calculated according to a base rate, adjusted term secured overnight financing rate (“SOFR”), or adjusted daily simple SOFR, plus an applicable margin, subject to a Maximum Rate determined by applicable law in the State of New York. The Company elected the adjusted daily simple SOFR with a margin of 6.5% for the first two years and 5.5% for the third year. Accrued and unpaid interest is payable monthly, upon prepayment, and at maturity. The Term Loan will mature on October 19, 2026, and all outstanding principal amounts and accrued and unpaid interest thereon shall be due and payable on such date.

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On August 16, 2024, the Borrower, the Guarantor and HH-BDH entered into that certain Amendment No. 1 and Waiver No. 1 to the Credit and Guaranty Agreement and Each Other Loan Document (the “Amendment,” and the Credit Agreement, as amended by the Amendment, the “Amended Credit Agreement”), to, among other things, (i) add a subsequent term loan of up to $1,675,000, which was fully drawn upon closing of the Amendment (together with the Term Loan, the “Loans”), and (ii) waive certain events of default resulting from the occurrence of the Acknowledged Defaults (as defined in the Amendment), provided that in the case of the expense reimbursement default, the Borrower must cure the expense reimbursement default upon the earlier of (x) November 1, 2024 and (y) two business days following the effectiveness of Company’s registration statement for resale of the shares of Class A common stock, underlying the convertible debentures and warrants issuable pursuant to that certain Securities Purchase Agreement, dated August 6, 2024, by and between the Company and Yorkville (the “Purchase Agreement”).

The Amended Credit Agreement also requires the Borrower to prepay the outstanding principal balance of the Loans in the amount of $200 thousand, $200 thousand, $200 thousand, $200 thousand and $875 thousand on each of September 7, 2024, October 7, 2024, November 7, 2024, December 7, 2024 and December 31, 2024, respectively. Furthermore, on each Required Payment Date (as defined in the Amended Credit Agreement), the Borrower shall prepay the outstanding principal balance of the Loans by an amount equal to the lesser of (a) the Total Portfolio Net Receipts (as defined in the Amended Credit Agreement) for the most recently ended period beginning on the 16th day of each month and ending on the 15th day of the immediately following month, and (b) as of each Required Payment Date, an amount equal to the excess, if any, of (x)(i) the number of Required Payment Dates occurring on or prior to such Required Payment Date, multiplied by (ii) $500,000, minus (y) the amount of all Excess Payments (as defined in the Amended Credit Agreement) made prior to such Required Payment Date. Additionally, the Amended Credit Agreement requires the Borrower to make certain minimum monthly payments to prepay the balance of the Loans.

The Amended Credit Agreement also includes, among other things, (i) updates to conditions precedent for the Lender to make the subsequent term loan to the Borrower, (ii) updates to certain representations and warranties, (iii) additional certain affirmative and negative covenants including a minimum liquidity financial covenant of $4.0 million and (iv) additional events that the occurrence of which would constitute an Event of Default (as defined in the Amended Credit Agreement). Except as modified by the Amendment, the terms of the HH-BDH Credit Agreement remain the same.

Recent Financings

On February 6, 2024, Ben Liquidity entered into agreements to finance liquidity transactions with respect to alternative assets with a NAV of $2.0 million. Pursuant to such transaction, the Customer ExAlt Trusts acquired the alternative assets, and in exchange for such interest, the customer received 200,000 shares of the Company’s Series B-2 Resettable Convertible Preferred Stock, par value $0.001 per share (the “Series B-2 preferred stock”), with such Series B-2 preferred stock being convertible into shares of the Company’s Class A common stock. Each share of the Series B-2 preferred stock is convertible at the election of the holder into shares of the Class A common stock initially at a conversion price of $3.20 per share (the “B-2 Conversion Price”). The B-2 Conversion Price is subject to reset from time to time and a floor price of $1.60 per share. A maximum of 125,000 shares of Class A common stock may be issued upon conversion of the Series B-2 preferred stock.

Recent Equity Issuances

On April 9, 2024 and June 21, 2024, respectively, the Company issued 11,354 shares and 3,431 shares of Class A common stock of the Company to a consultant of the Company. The issuance of the Class A common stock pursuant to these transactions was not registered under the Securities Act and each was issued in reliance upon the exemption provided in Section 4(a)(2) of the Securities Act and Regulation D promulgated thereunder.

On May 9, 2024, the Company issued 114,343 shares of Class A common stock of the Company to a vendor of the Company. The issuance of the Class A common stock pursuant to this transaction was not registered under the Securities Act and was issued in reliance upon the exemption provided in Section 4(a)(2) of the Securities Act and Regulation D promulgated thereunder.

On each of October 2, 2023; October 4, 2023; February 26, 2024; March 11,2024; May 3, 2024; May 6, 2024; May 7, 2024; May 13, 2024 and June 12, 2024; Yorkville purchased 250; 6,250; 8,938; 33,379; 200,000; 74,260; 14,053; 60,994 and 100,000 shares of Class A common stock for prices of $191.41; $101.24; $15.52; $14.90; $7.18; $5.82; $5.82; $4.85 and $3.09 per share, respectively, pursuant to the terms of the SEPA. Sales proceeds for these equity sales under the terms of the SEPA were approximately $3.9 million. Such issuances were in reliance upon the exemption provided in Section 4(a)(2) of the Securities Act and Rule 506(b) promulgated thereunder.

On August 20, 2024, the Company entered into a subscription agreement with Cangany Capital Management, LLC (“Cangany Capital Management”), a limited liability company controlled by Peter T. Cangany, Jr., a member of the Company’s board of directors, pursuant to which Cangany Capital Management purchased 47,500 shares of Class A common

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stock at a price per share of $2.33. The shares of Class A common stock issued pursuant to such subscription agreement are exempt from registration pursuant to Section 4(a)(2) of the Securities Act.

On August 27, 2024, the Company entered into an additional subscription agreement with Cangany Capital Management, pursuant to which Cangany Capital Management purchased 65,000 shares of Class A common stock at a price per share of $1.97. The shares of Class A common stock issued pursuant to such subscription agreement are exempt from registration pursuant to Section 4(a)(2) of the Securities Act.

Also on August 27, 2024, the Company entered into a subscription agreement with Thomas O. Hicks, a member of the Company’s board of directors, and a subscription agreement with CFH Ventures, Ltd., a limited partnership controlled by Mr. Hicks, pursuant to which each of Mr. Hicks and CFH Ventures, Ltd. purchased 50,000 shares of Class A common stock at a price per share of $1.97. The shares of Class A common stock issued pursuant to such subscription agreements are exempt from registration pursuant to Section 4(a)(2) of the Securities Act.

On September 6, 2024 and October 9, 2024, the Company issued 9,623 shares and 4,175 shares of Class A common stock of the Company to a consultant of the Company. The issuances of the Class A common stock pursuant to these transactions were not registered under the Securities Act and each was issued in reliance upon the exemption provided in Section 4(a)(2) of the Securities Act and Regulation D promulgated thereunder.

On September 11, 2024, the Company entered into a subscription agreement with Cangany Capital Management, pursuant to which Cangany Capital Management purchased 150,000 shares of the Company’s Class A common stock at a price per share of $1.58. The shares of Class A common stock issued pursuant to such subscription agreement are exempt from registration pursuant to Section 4(a)(2) of the Securities Act.

On September 17, 2024, the Company entered into a subscription agreement with Mendota Financial Company, LLC (“Mendota”), pursuant to which the Company issued 201,482 shares in satisfaction of its outstanding obligations to the Vendor pursuant to that certain Consulting Agreement by and between Mendota and The Beneficient Company Group (USA), L.L.C. effective as of September 9, 2021, as amended from time to time thereafter, pursuant to which Mendota provided financial consulting services to the Company. The shares of Class A common stock issued pursuant to such subscription agreement are exempt from registration pursuant to Section 4(a)(2) of the Securities Act.

Equity Awards Arbitration

On December 16, 2022, a former member of the Board of Directors of Beneficient Management, LLC (the “Claimant”) initiated a private arbitration in the International Court of Arbitration of the International Chamber of Commerce, challenging the termination of certain equity awards under two incentive plans by the administrator of the incentive plans. The Claimant sought total damages of $36.3 million plus attorney’s fees and punitive damages. On April 23, 2024, the sole arbitrator held that in terminating the Claimant’s equity awards, the Company had breached its contractual obligations, and as a result, awarded the Claimant $55.3 million in compensatory damages, including pre-judgment interest, plus post-judgment interest (the “Arbitration Award”). Neither attorneys’ fees nor punitive damages were awarded to the Claimant. The Company was also asked to pay arbitration-related costs in the amount of approximately $128,850. The Company recorded a loss related to the Arbitration Award in the year ended March 31, 2024 statement of comprehensive income (loss) in the amount of $55.0 million.

On July 29, 2024, the Texas District Court entered an order vacating the Arbitration Award in its entirety. The Texas District Court directed the parties to file motions requesting any further relief that may be available within twenty days of the order. On August 2, 2024, the Claimant filed an appeal to challenge the order vacating the Arbitration Award in the Texas Fifty Court of Appeals. The Company intends to vigorously defend itself in connection with the appeal.

As a result of the order, during the three-months ended June 30, 2024, the Company released the liability associated with the Arbitration Award, which resulted in a release of the previously recognized loss contingency accrual in the amount of $55.0 million being reflected in the six months ended September 30, 2024 statement of comprehensive income (loss).

ffVC Transaction

On March 6, 2024, the Company and BFF entered into three Alternative Asset Purchase Agreements (each an “ffVC Agreement” and collectively, the “ffVC Agreements”) on substantially similar terms, with each of ff Silver Venture Capital Fund, L.P., ff Blue Private Equity Fund, L.P. and ff Rose Venture Capital Fund, L.P. (each an “ffVC Seller” and collectively, the “ffVC Sellers”) to engage in certain liquidity financing transactions with respect to certain designated alternative assets held by each entity (the “ffVC Transactions”). In connection with the execution of the ffVC Agreements, the parties also entered into exchange agreements in the forms generally executed by the Company in the ordinary course of business, subject to certain amendments as set forth in the ffVC Agreements. Pursuant to the ffVC Transactions, the Company’s customized trust vehicles will acquire alternative assets held by each ffVC Seller, and in exchange for such alternative assets, the respective ffVC Seller will receive shares of the Company’s Series B Preferred Stock, with such Series B Preferred Stock

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being convertible into shares of the Company’s Class A common stock. The number of shares of Series B Preferred Stock to be delivered at the closing of each of the respective ffVC Agreements shall be equal to (i) the applicable discount percentage of the closing NAV under each ffVC Agreement multiplied by the Participation Percentage (as defined in the ffVC Agreement) of each respective ffVC Seller, divided by (ii) $10.00. The discount percentages for each transaction are as follows: ff Silver Venture Capital Fund, L.P. – 60%; ff Blue Private Equity Fund, L.P. – 80%; and ff Rose Venture Capital Fund, L.P – 46%. Pursuant to the ffVC Transactions, the Company expects to issue up to a maximum of $62 million in stated value of Series B Preferred Stock in the aggregate, subject to participation levels by limited partners of the ffVC Sellers. Closing of the ffVC Transactions is subject to approval by the Company’s stockholders. There can be no assurance that the ffVC Transactions will be completed or that the Company will issue securities pursuant to the ffVC Transactions.

Securities Purchase Agreement

On August 6, 2024, the Company, entered into a securities purchase agreement (the “Purchase Agreement”) with Yorkville, in connection with the issuance and sale by the Company of convertible debentures (the “Convertible Debentures”) issuable in an aggregate principal amount of up to $4 million, which will be convertible into shares of the Company’s Class A common stock (as converted, the “Conversion Shares”). Yorkville purchased and the Company issued $2 million in aggregate principal amount of Convertible Debentures upon the signing the Purchase Agreement (the “First Closing”). Additionally, on November 13, 2024, the Company issued an additional $2 million in aggregate principal amount of Convertible Debentures for proceeds of approximately $1.8 million (the “Second Closing”). Contemporaneously with the execution and delivery of the Purchase Agreement, certain of the Company’s subsidiaries entered into a global guaranty agreement in favor of Yorkville with respect to the Company’s obligations under the Purchase Agreement, the Convertible Debentures and the Yorkville Warrants (as defined below).

The Convertible Debentures do not bear interest, subject to a potential increase to 18.0% per annum (or the maximum amount permitted by applicable law) upon the occurrence of certain events of default. The Convertible Debentures will mature on February 6, 2025 and will result in gross proceeds to the Company of approximately $3.6 million. The Convertible Debentures will be issued at an original issue discount of 10%. The Company will be required to make monthly cash payments of principal in the amount of $1.3 million (or such lesser amount as may then be outstanding) plus all accrued and unpaid interest as of such payment. Such payments will commence 30 days following the Second Closing and will continue on a monthly basis thereafter until the Convertible Debentures are repaid in full, subject to certain conditions as described in the Convertible Debentures.

The Convertible Debentures are convertible at the option of the holder into Class A common stock equal to the applicable Conversion Amount (as in the Convertible Debenture) divided by $3.018 (the “Conversion Price”). The maximum amount of shares issuable upon conversion of the Convertible Debentures is 1,325,382.

The Convertible Debentures provide the Company, subject to certain conditions, with an optional redemption right pursuant to which the Company, upon 10 trading days’ prior written notice to Yorkville (the “Redemption Notice”), may redeem in cash, in whole or in part, all amounts outstanding under the Convertible Debentures prior to the maturity date; provided that the volume weighted average price on the date such Redemption Notice is delivered is less than the Conversion Price at the time of the Redemption Notice. The redemption amount shall be equal to the outstanding principal balance being redeemed by the Company, plus the redemption premium of 10% of the principal amount being redeemed, plus all accrued and unpaid interest in respect of such redeemed principal amount.

Additionally, pursuant to the terms of the Purchase Agreement, the Company agreed to issue to Yorkville warrants (each, a “Yorkville Warrant” and together, the “Yorkville Warrants”) to purchase up to 1,325,382 shares of Class A common stock at an exercise price of $2.63, which shall be exercisable into Class A common stock for cash (collectively, the “Warrant Shares”). At the First Closing, the Company issued a Yorkville Warrant to Yorkville to purchase up to 662,691 shares of Class A common stock, and at the Second Closing, the Company issued an additional Yorkville Warrant to Yorkville to purchase up to 662,691 shares of Class A common stock.

In connection with the Purchase Agreement, the Company entered into a registration rights agreement with Yorkville, pursuant to which the Company is required to, within 30 calendar days of the August 6, 2024, file with the SEC one or more registration statements covering the resale by Yorkville of all Conversion Shares and the Warrant Shares. Pursuant to the Company’s contractual obligations under the Purchase Agreement, the Company filed a registration statement to register the Warrant Shares and the Conversion Shares, among other shares of Class A common stock, which was declared effective by the SEC on November 12, 2024.

Nasdaq Continued Listing Standards

On July 16, 2024, the Company received a notice from the Nasdaq Staff indicating that it is no longer in compliance with the minimum stockholders’ equity requirement (the “Minimum Stockholders’ Equity Requirement”) for continued listing on The Nasdaq Capital Market pursuant to Nasdaq Listing Rule 5550(b)(1) (the “Stockholders’ Equity Notice”). Nasdaq Listing Rule

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5550(b)(1) requires listed companies to maintain stockholders’ equity of at least $2,500,000 or meet the alternative compliance standards relating to the market value of listed securities or net income from continuing operations, which the Company does not currently meet.

Pursuant to the Stockholders’ Equity Notice and the Listing Rules of Nasdaq, Nasdaq provided the Company with 45 calendar days, or until August 30, 2024, to submit a plan to regain compliance with the Minimum Stockholders’ Equity Requirement. On August 30, 2024, the Company timely submitted a plan to the Staff to regain compliance with the Minimum Stockholders’ Equity Requirement. If the Company’s plan to regain compliance is accepted, the Staff can grant an extension of up to 180 calendar days from the date of the notice to evidence compliance. If the Company’s plan to regain compliance is not accepted, or if it is accepted and the Company does not regain compliance in the timeframe required by Nasdaq, the Nasdaq Staff could provide notice that the Company’s shares of Class A common stock are subject to delisting. In such an event, the Company would have the right to request a hearing before the Panel. The hearing request would automatically stay any suspension or delisting action pending the completion of the hearings process. The Stockholders’ Equity Notice had no immediate impact on the listing of the Class A common stock, which will continue to be listed and traded on Nasdaq under the symbol “BENF,” subject to the Company’s compliance with the other listing requirements of Nasdaq. While we have not yet heard if the Staff will accept the plan submitted on August 30, 2024, the Company is currently progressing under the plan submitted to the Staff to regain compliance with the Minimum Stockholders’ Equity Requirement. Although the Company intends to use all reasonable efforts to achieve compliance with the Minimum Stockholders’ Equity Requirement, there can be no assurance that the Company will be able to regain compliance with the Minimum Stockholders’ Equity Requirement or that the Company will otherwise be in compliance with other applicable Nasdaq listing criteria.

Additionally, on July 23, 2024, the Company notified Nasdaq that, following the resignations of Emily B. Hill and Dennis P. Lockhart from the Company’s Board and Audit Committee of the Board (the “Audit Committee”), the Company currently has a vacancy on the Audit Committee and intends to rely on the cure period set forth in the Nasdaq Listing Rules while it recruits a new Audit Committee member.

On July 25, 2024, the Company received a notice from Nasdaq (the “Audit Committee Notice”) confirming that the Company was no longer in compliance with Nasdaq’s audit committee composition requirements as set forth in Nasdaq Listing Rule 5605, which requires that the audit committee of a listed company be comprised of at least three “independent directors” (as defined in Nasdaq Listing Rule 5605(a)(2)). Pursuant to Nasdaq Listing Rule 5605(c)(4), the Company intends to rely on the cure period to reestablish compliance with Nasdaq Listing Rule 5605. The cure period is generally defined as until the earlier of the Company’s next annual meeting of stockholders or July 21, 2025. If the Company’s next annual meeting of stockholders is held before January 15, 2025, then the Company must evidence compliance no later than January 15, 2025.

On September 30, 2024, Patrick J. Donegan was appointed to the Board as an independent director and a member of the Audit, Products and Related Party Transactions, Credit and Enterprise Risk committees of the Board. The Board is in the process of identifying and selecting an additional member of the Board who qualifies as “independent” and meets the audit committee criteria set forth in Nasdaq Listing Rule 5605. The Board intends to comply fully with Nasdaq audit committee requirements by or before the end of the cure period described above, but there can be no assurance that the Company will be able to regain compliance with Nasdaq Listing Rule 5605 or that the Company will otherwise be in compliance with other applicable Nasdaq listing criteria. The Audit Committee Notice had no immediate impact on the listing of the Class A common stock, which will continue to be listed and traded on Nasdaq under the symbol “BENF,” subject to the Company’s compliance with the other listing requirements of Nasdaq.

Key Factors Affecting Our Business

Our business is affected by a variety of factors, including conditions in the financial markets and economic and political conditions in the markets in which we operate, as well as changes in global economic conditions and regulatory or other governmental policies or actions, which can materially affect the values of the investments held by the Customer ExAlt Trusts, the cash flows of which collateralize Ben Liquidity’s ExAlt Loans.

In addition to these macroeconomic trends and market factors, we believe our future performance will be influenced by the following factors:

–Ability to execute on existing and new strategies and products and services to attract Customers. We currently offer or plan to offer a suite of complementary fiduciary and other financial products and services designed to address many of the challenges alternative asset market participants face in connection with their ownership, management, and transfer of alternative assets. These products and services are generally not readily available in the marketplace today. We believe that these new products and services will meet the complex needs of potential Customers on a large scale across our target market.

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–The extent to which future investment allocations of potential Customers favor private markets investments. Estimates of future performance of our future liquidity solutions business rely in part on the attractiveness of new capital being deployed by potential Customers to private markets relative to traditional asset classes. We believe that allocation to alternative assets by MHNW individual investors and STMI investors, along with the turnover rate demanded by MHNW individual investors and STMI investors will continue to increase, with annual alternative asset liquidity demands increasing due to the overall growth in the alternative asset market.

–Successful deployment of financing capital into collateral comprised of attractive investments. The successful identification of attractive investments as collateral to the financing transactions executed in our liquidity solutions business will impact future performance. We believe we identify specific investments that provide sufficient collateral to our fiduciary financings and that we have established a repeatable process in order to capitalize on these fiduciary financing opportunities through our underwriting and risk processes culminating in a qualification determination and proposed fiduciary financing terms for our Customers.

–Volatility in the price of our Class A common stock. The price of our Class A common stock may impact our ability to enter into liquidity transactions with our Customers. If our stock price declines, our potential Customers may be less likely to engage with us and accept our Class A common stock in exchange for their alternative assets. Furthermore, a significant sustained decrease in our stock price has in the past been an indicator, and in the future may indicate, that impairment is present and may require a quantitative impairment assessment of our assets including goodwill and intangible assets. Any such future impairment charges for goodwill may reduce our overall assets and may result in a change in the perceived value of the Company and ultimately may be reflected as a reduction in the market price of our securities. Additionally, we have begun to enter into financings in which the Customer ExAlt Trusts use our Class A common stock or convertible preferred stock as consideration to meet capital calls or make other capital contributions in alternative asset funds, which in turn hold such securities as an investment. Volatility, either positively or negatively, in the price of our Class A common stock may have a compounding effect on our consolidated investment income and cause further decreases in our stock price in the event our securities comprise a significant portion of such alternative asset funds’ aggregate assets.

–Our ability to maintain our data and regulatory advantage relative to competitors. Our proprietary data and technology platforms, analytical tools and deep industry knowledge allow us to provide our Customers with customized solutions, including trust custody and administration services, data and analytics products and services, and broker-dealer services in connection with our core liquidity products and services. Our ability to maintain our data advantage is dependent on a number of factors, including our continued access to a broad set of private market information and our ability to grow our relationships with potential Customers and their advisors throughout our distribution network. Additionally, we are or will become subject to extensive regulation under federal, state and international law. These complex regulatory and tax environments could restrict our operations and subject us to increased compliance costs and administrative burdens, as well as restrictions on our business activities.

–Our ability to maintain our competitive position. We believe we have several competitive and structural advantages that position us as a preferred provider of liquidity and other attendant services to the MHNW individual investor and STMI investor segments. We expect these advantages will enable us to provide unique products and services to potential Customers that have traditionally been difficult to access by the MHNW individual investor and STMI investor segments. Our ability to attract and successfully deploy capital in the future is dependent on maintaining our leading competitive positioning in our target markets.

–Unpredictable global macroeconomic conditions. Global economic conditions, including political environments, financial market performance, interest rates, credit spreads or other conditions beyond our control, all of which affect the performance of the assets held by the Customer ExAlt Trusts, are unpredictable and could negatively affect the performance of our portfolio or the ability to raise funds in the future. In addition, the cash flows from these investments, which collateralize the ExAlt Loans, are exposed to the credit risks of the financial institutions at which they are held. Events involving limited liquidity, defaults, non-performance or other adverse developments that affect financial institutions, transactional counterparties, or the financial services industry generally, could lead to market-wide liquidity problems and jeopardize our ability to access existing cash, cash equivalents and investments.

–Our ability to access capital at attractive rates. Our ability to complete, and the costs associated with, future debt transactions depends primarily upon credit market conditions and our then perceived creditworthiness. We have no control over market conditions. Our ability to obtain credit depends upon evaluations of our business practices and plans, including our performance, ability to stagger our debt maturities and to balance our use of debt and equity capital so that our financial performance and leverage ratios afford us flexibility to withstand any reasonably anticipated adverse changes. We intend to conduct our business activities in a manner which will afford us

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reasonable access to capital for investment and financing activities. However, as discussed elsewhere in this Quarterly Report on Form 10-Q, the economic conditions, as well as the impacts of the current, and possibly future, inflationary conditions, increasing interest rates and a possible recession are uncertain and may have various negative consequences on us and our operations including a decline in financing availability and increased costs for financing. Further, such conditions could also disrupt the capital markets generally and limit our access to financing from public sources or on favorable terms, particularly if the global financial markets experience significant disruptions.

Current Events

In October 2023, following a series of attacks by Hamas on Israeli civilian and military targets, Israel declared war on Hamas in Gaza. In February 2022, the Russian Federation and Belarus commenced a military action with the country of Ukraine and as a result, various nations, including the United States, have instituted economic sanctions against the Russian Federation and Belarus. The ongoing Russia-Ukraine conflict and Israel-Hamas conflict could have a negative impact on the economy and business activity globally (including in the countries in which the Customer ExAlt Trusts currently holds investments or may hold investments in the future), and therefore, could adversely affect the performance of the Customer ExAlt Trusts’ investments.

The extent and impact of any sanctions imposed in connection with the Russia-Ukraine conflict has caused and may continue to cause financial market volatility and impact the global economy. Volatility and disruption in the equity and credit markets can adversely affect the portfolio companies underlying the investments held by the Customer ExAlt Trusts and adversely affect the investment performance. Our ability to manage exposure to market conditions is limited. Market deterioration could cause the Company to experience reduced liquidity, earnings and cash flow, recognize impairment charges, or face challenges in raising capital and making investments on attractive terms. Adverse market conditions can also affect the ability of investment funds held by the Customer ExAlt Trusts to liquidate positions in a timely and efficient manner. As a result, this presents material uncertainty and risk with respect to the performance of the investments held by the Customer ExAlt Trusts, even though the Customer ExAlt Trusts do not hold any investments with material operations in Russia, Ukraine, or Israel. The cash flows from the investments held by the Customer ExAlt Trusts serve as the collateral to the ExAlt Loans and the fees that are paid by the Customer ExAlt Trusts to Ben for administering these trusts, both of which are key determinants in the income allocated to Ben’s and BCH’s equity holders.

Further, uncertainty in the capital markets, generally due to increasing interest rates and inflation and their impact on the economy, may make it challenging to raise additional capital, and such capital may not be available to us on acceptable terms on a timely basis, or at all. If adequate funds are not available, or if the terms of potential funding sources are unfavorable, our business would be harmed.

Further, these events may result in reduced opportunities for future liquidity solution transactions with our customers and make it more difficult for the Customer ExAlt Trusts to exit and realize value from its existing investments, potentially resulting in a decline in the value of the investments held by the Customer ExAlt Trusts. Such a decline could cause our revenue and net income to decline, including the revenues and net income allocated to Ben’s and BCH’s equity holders.

We continue to evaluate the impact of the ongoing Russia-Ukraine conflict, Israel-Hamas conflict and other items, such as inflation and rising interest rates, and assess the impact on financial markets and our business. Our future results may be adversely affected by slowdowns in fundraising activity and the pace of new liquidity transactions with our customers.

Factors Affecting the Comparability of Our Financial Condition and Results of Operations

In addition to the items mentioned above in the “Recent Developments” section, our historical financial condition and results of operations for the periods presented may not be comparable, either from period to period or going forward, primarily for the following reasons:

–Utilization of Derivative Instruments to Manage Risk. From time to time, Ben manages its exposure to market risks by utilizing various forms of derivative instruments to limit exposure to changes in the relative values of investments that may result from market developments. In September 2023, all put options that were held by Ben were sold, including the portion of the put options that were attributable to the third party involved in the loan participation transaction. No additional derivative instruments have been purchased since September 2023. For the three months ended September 30, 2023, Ben recognized losses of $0.7 million on the put options, of which approximately $0.3 million is attributable to Ben or Ben’s loan portfolio, with the remainder attributable principally to the loan involved in the participation loan transaction. For the six months ended September 30, 2023, Ben has recognized losses of $3.0 million on the put options, of which approximately $2.0 million is attributable to Ben or Ben’s loan portfolio, with the remainder attributable principally to the loan involved in the participation loan transaction.. As the

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Company did not have any put options or other similar instruments during the quarter ended September 30, 2024, there are no comparable gains or losses in the current period.

–Bankruptcy of GWG Holdings. On August 1, 2023 (the “Effective Date”), the plan of reorganization of GWG Holdings was declared effective. On the Effective Date, all securities previously issued by GWG Holdings were cancelled and converted to interests in the GWG Wind Down Trust. As of September 30, 2024, Ben held 0.8 million interests of Series A1 and 2.5 million interests of Series E of the GWG Wind Down Trust, and the Customer ExAlt Trusts held 82.0 million, 14.5 million, and 9.8 million interests of Series A1, Series A2, and Series E, respectively, of the GWG Wind Down Trust. These interests are accounted for at fair value, with unrealized gains (losses) recognized in earnings in the gain (loss) on financial instruments, net line item of the consolidated statements of comprehensive income (loss). Fair value is calculated using quoted prices for similar instruments observed in the equity capital market and is classified as a Level 2 investment in the fair value hierarchy. Since the GWG Wind Down Trust’s primary asset is its investment in the Class A common stock of Ben, the Company’s Class A common stock quoted market price is the underlying asset. Prior to the Effective Date, Ben held 2.5 million shares of GWG Holdings common stock and the Customer ExAlt Trusts held 9.8 million shares of GWG Holdings common stock and L Bonds due 2023 of GWG Life, LLC, a Delaware limited liability company and wholly-owned subsidiary of GWG Holdings (“GWG Life”) with an aggregate principal amount of $94.8 million (“L Bonds”). The investment in GWG Holdings’ common stock was accounted for at fair value with changes in fair value recognized in earnings. The investment in L Bonds was accounted for as an available-for-sale debt security, with unrealized gains (losses) recognized in accumulated other comprehensive income (loss). During the six months ended September 30, 2024 and 2023, the Company has recognized net losses of nominal and $1.2 million, respectively, related to its interests in the GWG Wind Down Trust (or GWG Holdings, as applicable), and the Customer ExAlt Trusts recognized net losses of $0.5 million and $44.4 million, respectively, related to its interest in the GWG Wind Down Trust (or GWG Holdings, as applicable), all of which is reflected in the consolidated statements of comprehensive income (loss). As of September 30, 2024, the fair value of Ben’s interest in the GWG Wind Down Trust was nominal and the fair value of the Customer ExAlt Trusts’ interest in the GWG Wind Down Trust was nominal. On the Effective Date, the shared services agreement by and between Ben and GWG Holdings (the “Shared Services Agreement”) was terminated and all receivables and related allowances owed to Ben under the Shared Services Agreement were written off.

–Vesting of performance based awards. Certain of our restricted equity units were granted with a performance-based condition. The performance condition was met upon public listing in June 2023 and expense for vested units was recognized during the three months ended June 30, 2023. The recognition of the remaining compensation cost will be recognized over the remaining vesting period. Total recognized compensation cost related to these awards was $0.3 million and $0.8 million for the three and six months ended September 30, 2024, respectively, and $3.4 million and $11.4 million for the same periods of 2023, respectively. Total unrecognized compensation cost related to these awards was approximately $1.2 million as of September 30, 2024. During the three and six months ended September 30, 2024, approximately $2.4 million of compensation cost, which is the full grant date fair value of the RSUs, was recognized for awards to three employees. The awards do not require continuing employment by the individuals.

–Goodwill Impairment. Goodwill is tested for impairment at least annually and, more frequently between annual tests, whenever events or circumstances make it more likely than not that the fair value of a reporting unit has fallen below its carrying value. Subsequent to the public listing on June 8, 2023, and through September 30, 2024, the Company has experienced a significant sustained decline in the price of its Class A common stock and its related market capitalization. We believe that these factors indicated that the fair value of our reporting units had more likely than not fallen below their carrying values during the relevant periods in fiscal 2024 and in the first two quarters of fiscal 2025. As a result, during fiscal 2024, we wrote the carrying value of the Ben Liquidity, Ben Custody, Ben Insurance, and Ben Markets reporting units, as applicable, down to their estimated fair values and recognized cumulatively during fiscal 2024 a non-cash goodwill impairment charge of $2.4 billion, including $1.1 billion and $306.7 million of non-cash goodwill impairment at the Ben Liquidity and Ben Custody reporting units during the quarters ended June 30, 2023 and September 30, 2023, respectively. Further, management performed interim impairment tests of goodwill as of June 30, 2024 and September 30, 2024, and determined on each date that additional non-cash goodwill impairment occurred resulting in $3.4 million and $0.3 million, respectively, at the Ben Custody and Ben Markets reporting units. Total goodwill remaining as of September 30, 2024 is $9.9 million.

–Termination of Customer ExAlt Trust Loan Payable. On October 18, 2023, all obligations owed under the Customer ExAlt Trust loan payable were repaid by transferring $56.7 million of alternative assets. The payoff of the Customer ExAlt Trust Loan Payable was accounted for as a debt extinguishment in accordance with ASC 470, Debt, during the quarter ended December 31, 2023. The financial statements included in this Quarterly Report on Form 10-Q for

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the three and six months ended September 30, 2023 reflect changes in the fair value of the alternative assets ultimately transferred to settled the ExAlt Trust loan payable as well as interest expense associated with the ExAlt Trust loan payable whereas current fiscal year financial statements would not have any such activity associated with the transferred alternative assets or the ExAlt Trust loan payable.

–Resolution of certain liabilities. During the three and six months ended September 30, 2024, the Company released approximately $23.5 million of liabilities based on the execution of letter agreements with the counterparties releasing the Company of such liabilities. The release of the $23.5 million in liabilities resulted in the recognition of a gain that is reflected in the (gain) loss on liability resolution line item of the consolidated statements of comprehensive income (loss) for the three and six months ended September 30, 2024. There were no such similar amounts included in the same periods in the prior year. Approximately $19.2 million of the liabilities released related to a portion of the interest commitments described in Note 9 to the consolidated financial statements included in our 2024 Form 10-K that the Company has been accruing each period since 2018. On a go-forward basis, since we will no longer be accruing interest expense on a portion of the interest commitments for which we have been released of such obligation, interest expense should reduce by approximately $1 million per quarter related to these interest commitments.

Key Performance Indicators

We use certain non-GAAP financial measures to supplement our consolidated financial statements, which are presented in accordance with U.S. GAAP. These non-GAAP financial measures include adjusted revenue and adjusted operating income (loss). A non-GAAP financial measure is a numerical measure that departs from U.S. GAAP because it includes or excludes amounts that are required under U.S. GAAP. Non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information presented in compliance with U.S. GAAP, and non-GAAP financial measures as used by Ben may not be comparable to similarly titled measures used by other companies. The presentation of non-GAAP financial measures provides additional information to investors regarding our results of operations that management believes is useful for trending, analyzing and benchmarking the performance of our business. See “—Supplemental Unaudited Presentation of Non-GAAP Financial Information,” below, for a reconciliation of adjusted revenue to revenue and adjusted operating income (loss) to operating income (loss), the most comparable U.S. GAAP measures, respectively.

In addition to our U.S. GAAP and non-GAAP financial information, we utilize several key indicators of financial condition and operating performance to assess the various aspects of our business. We monitor the following operating metrics to help us evaluate our business, identify trends affecting our business, formulate business plans and make strategic decisions. We believe the following key metrics are useful in evaluating our business:

	Three Months Ended September 30,				Six Months Ended September 30,
(in thousands)	2024		2023		2024		2023
Ben Liquidity
Loan payments received	$	2,392	$	9,250	$	6,638	$	16,952
Operating income (loss)	2,905		(272,091)		2,391		(1,175,119)
Adjusted operating income (loss)(1)	2,905		(4,738)		2,396		(14,297)
Ben Custody
Fee payments received	$	2,794	$	2,409	$	4,310	$	4,361
Operating income (loss)	4,329		(80,847)		5,616		(270,844)
Adjusted operating income(1)	4,627		5,625		9,043		10,933
Consolidated:
Revenue	$	8,561	$	(42,761)	$	18,607	$	(45,504)
Adjusted revenue(1)	8,734		(801)		19,145		22
Operating income (loss)	(13,715)		(381,764)		30,623		(1,537,734)
Adjusted operating loss(1)	(6,611)		(21,170)		(11,337)		(45,690)

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(dollars in thousands)	September 30, 2024			March 31, 2024
Ben Liquidity
Loans to Customer ExAlt Trusts, net	$	260,686		$	256,184
Allowance to total loans	54.74		%	54.23		%
Nonperforming loans to total loans	42.72		%	44.21		%
Ben Custody
Fees receivable	$	19,566		$	18,386
Deferred revenue	23,021			28,235
Customer ExAlt Trusts
Investments, at fair value	$	334,987		$	329,113
Distributions to Original Loan Balance	0.73		x	0.72		x
Total Value to Original Loan Balance	1.04		x	1.03		x

(1) Adjusted revenue and adjusted operating income (loss) are non-GAAP financial measures. For a definition and reconciliation to comparable U.S. GAAP metrics, please see the section titled “—Supplemental Unaudited Presentation of Non-GAAP Financial Information.”

Adjusted revenue. We define adjusted revenue as revenue adjusted to exclude the effect of mark-to-market adjustments on related party equity securities that were acquired both prior to and in the Collateral Swap (the “Collateral Swap”), which on August 1, 2023, became interests in the GWG Wind Down Trust.

Operating income (loss) represents total revenues less operating expenses prior to the provision for income taxes.

Adjusted operating income (loss). We define adjusted operating income (loss) as operating income (loss), adjusted to exclude the effect of the adjustments to revenue described above, credit losses on related party available-for-sale debt securities acquired in the Collateral Swap, which on August 1, 2023, became interests in the GWG Wind Down Trust, and receivables from a related party that filed for bankruptcy and certain notes receivables originated during our formative transactions, non-cash asset impairment, share-based compensation expense, and legal, professional services, and public relations costs related to the GWG Holdings bankruptcy, lawsuits, and a defunct product offering and certain employee matters, including fees and loss contingency accruals (releases) incurred in arbitration with a former director.

Loan payments received represents cash received during the respective period from the Customer ExAlt Trusts as payments on the ExAlt Loans.

Fee payments received represents cash received during the respective period from the Customer ExAlt Trusts as payments on the fees receivable from the Customer ExAlt Trusts.

Loans to Customer ExAlt Trusts, net represents the total ExAlt Loan receivable outstanding, net of the allowance for credit losses. The ExAlt Loans are eliminated solely for financial reporting purposes upon consolidation of the Customer ExAlt Trusts.

Allowance to Total Loans. Allowance to total loans is calculated as total allowance for credit loss divided by total loans.

Nonperforming Loans to Total Loans. Nonperforming loans to total loans is calculated as total nonperforming loans divided by total loans.

Fees receivable, net represents the transaction fees charged to the Customer ExAlt Trusts in connection with liquidity transactions and fees charged for providing full-service trust administration services to the trustees of the Customer ExAlt Trusts. Such amounts are net of any allowance for credit losses associated with these balances. Such fees are eliminated solely for financial reporting purposes upon consolidation of the Customer ExAlt Trusts.

Deferred revenue represents fees charged at the origination of the liquidity transaction that are recognized ratably over the life of the LiquidTrust. Such amount is eliminated solely for financial reporting purposes upon consolidation of the Customer ExAlt Trusts.

Investments, at fair value. Investments held by the Customer ExAlt Trusts include investments in alternative assets, investments in the public equity and debt securities (principally of a related party), and investments in private equity securities. These cash flows from these investments serve as Collateral to the ExAlt Loans.

Distributions to Original Loan Balance, as it relates to the Collateral, is calculated as the total inception-to-date payments from the ExAlt Loans received divided by the initial loan balances of the ExAlt Loans.

Total Value to Original Loan Balance is calculated as the then-current fair value of the Collateral plus the total inception-to-date payments from the ExAlt Loans received, divided by the initial loan balances of the ExAlt Loans.

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Principal Revenue and Expense Items

During the three and six months ended September 30, 2024 and 2023, we earned revenues on a consolidated basis from the following primary sources:

•Investment Income (Loss), net. Investment income (loss), net, includes the change in NAV of the alternative assets held by certain of the Customer ExAlt Trusts.

For the aforementioned periods, our main components of consolidated expense are summarized below:

•Interest Expense. Interest expense includes interest to our senior lender under our amended and restated First Lien Credit Agreement and Second Lien Credit Agreement (as described under “Liquidity and Capital Resources — Amended Credit Agreements”), interest on the HH-BDH Credit Agreement, interest accrued on the ExAlt Trust Loan Payable, and interest accrued on our other debt due to related parties. When we issue debt, we amortize the financing costs (commissions and other fees) associated with such indebtedness over the outstanding term of the financing and classify it as interest expense.

•Employee Compensation and Benefits. Employee compensation and benefits includes salaries, bonuses and other incentives and costs of employee benefits. Also included are significant non-cash expenses related to the share-based compensation.

•Professional Services. Professional services includes consulting fees, legal fees, audit fees, and other services.

Additional components of our consolidated net earnings include:

•Gain (Loss) on Financial Instruments, net. Gain (loss) on financial instruments, net includes the change in fair value of our derivative liability, warrant liability, investments in public equity securities, private equity securities, options, and convertible debt recorded at fair value. Included in our investment in private equity securities and interests is our interest in the GWG Wind Down Trust. Fair value is determined using quoted market prices, where available. Any realized gains and losses are recorded on a trade-date basis.

•Interest Income. Interest income includes interest earned on cash held in banks.

•Provision for Credit Losses. Provision for credit losses represents the amount charged to earnings each period for credit losses incurred on available-for-sale debt securities and for allowances taken on financial assets, primarily receivables under the Shared Services Agreement with GWG Holdings and note agreements with other parties originating during our formative transactions in 2018.

•Other Expenses. We recognize and record expenses in our business operations as incurred. Other expenses include software license and maintenance expenses, IT consulting fees, travel and entertainment expenses, other insurance and tax expense, supplies, costs associated with employee training and dues, transaction expenses, depreciation and amortization expense, and various other expenses.

•Loss on impairment of goodwill. Goodwill and indefinite-lived intangible assets are assessed for impairment on an annual basis and whenever events and circumstances indicate that these assets may be impaired, including as a result of significant sustained declines in the prevailing prices of our Common Stock. We compare the fair value of each of our reporting units to its respective carrying value, including goodwill. If the respective carrying value, including goodwill, exceeds the reporting unit’s fair value, we will recognize an impairment loss for the amount by which the carrying amount exceeds the reporting unit’s fair value, up to the amount of goodwill associated with the reporting unit.

Our operating subsidiaries, Ben Liquidity and Ben Custody, also earn revenue from interest and fees, which are eliminated in consolidation, on the ExAlt Loans between Ben Liquidity and the Customer ExAlt Trusts and for providing trust services and administration between Ben Custody and the Customer ExAlt Trusts. These sources of intersegment revenues, which ultimately impact the net income (loss) attributable to Ben and BCH equity holders, are summarized below.

•Interest Income. Interest income is generally comprised of contractual interest, which is a computed variable rate or a fixed rate that compounds monthly, interest recognized on certain of the ExAlt Loans through the effective yield method, and an amortized discount that is recognized ratably over the life of the ExAlt Loan. Loans deemed nonperforming no longer accrue interest income. The ExAlt Loans have a maturity of twelve years, and all principal and interest due thereon is payable at maturity. Since we began our operations in 2017, substantially all of our interest income since inception has been non-cash income that has been capitalized onto the outstanding principal of the ExAlt Loans.

Interest income earned by Ben from the Customer ExAlt Trusts is eliminated in the presentation of our consolidated financial statements. However, because the eliminated amounts are earned from, and funded by, noncontrolling

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interests, on a consolidated basis, our attributable share of the net income from the Customer ExAlt Trusts is increased by the amounts eliminated. Accordingly, the elimination in consolidation of interest income and certain fee revenue (as described below) has no effect on net income (loss) attributable to Ben or BCH or to equity holders of Ben or BCH.

•Trust Services and Administration Revenues. Trust services and administration revenues include trust administration fees and upfront fees. Trust administration fees are earned for providing administrative services to trustees for existing liquidity solution customers. Fees are recognized monthly based upon the beginning of quarter (in advance) NAV plus any remaining unfunded capital commitments and the applicable fee rate of the account as outlined in the agreement. Non-refundable upfront fees are earned for setting up and providing the customer access to the ExAlt PlanTM. Upfront fees are billed at the origination of the liquidity transaction and are based on a percentage of NAV plus any unfunded capital commitments. Upfront fees are deferred upon receipt and are recognized ratably over the period of benefit, which is generally consistent with estimated expected life of LiquidTrusts (typically 7 to 10 years). All such fees and related deferred revenue are eliminated in the presentation of our consolidated financial statements. As described above, the elimination in consolidation of this fee revenue has no effect on net income (loss) attributable to Ben or BCH or to equity holders of Ben or BCH.

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RESULTS OF OPERATIONS — THREE MONTHS ENDED SEPTEMBER 30, 2024 AND 2023 (UNAUDITED)

(in thousands)	Three Months Ended September 30, 2024
	Ben Liquidity		Ben Custody		Customer ExAlt Trusts		Corporate/Other		Consolidating Eliminations		Consolidated
External Revenues
Investment income, net	$	—	$	—	$	8,541	$	—	$	—	$	8,541
Gain (loss) on financial instruments, net	—		—		571		(750)		—		(179)
Interest income	—		—		—		12		—		12
Trust services and administration revenues	—		187		—		—		—		187
Intersegment revenues
Interest income	11,978		—		—		—		(11,978)		—
Trust services and administration revenues	—		5,199		—		—		(5,199)		—
Total revenues	11,978		5,386		9,112		(738)		(17,177)		8,561
External expenses
Employee compensation and benefits	361		542		—		6,232		—		7,135
Interest expense	3,163		—		—		1,157		—		4,320
Professional services	395		30		545		6,287		—		7,257
Provision for credit losses	—		—		476		—		—		476
Loss on impairment of goodwill	—		298		—		—		—		298
Other expenses	402		187		189		2,012		—		2,790
Intersegment expenses
Interest expense	—		—		36,049		—		(36,049)		—
Provision for credit losses	4,752		—		—		—		(4,752)		—
Other expenses	—		—		3,402		—		(3,402)		—
Total expenses	9,073		1,057		40,661		15,688		(44,203)		22,276
Operating income (loss)	$	2,905	$	4,329	$	(31,549)	$	(16,426)	$	27,026	(13,715)
(Gain) loss on liability resolution											(23,462)
Income tax expense											—
Net income											$	9,747

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RESULTS OF OPERATIONS - THREE MONTHS ENDED SEPTEMBER 30, 2024 AND 2023 (UNAUDITED) (cont’d)

(in thousands)	Three Months Ended September 30, 2023
	Ben Liquidity		Ben Custody		Customer ExAlt Trusts		Corporate/Other		Consolidating Eliminations		Consolidated
External Revenues
Investment loss, net	$	—	$	—	$	(13)	$	—	$	—	$	(13)
Loss on financial instruments, net	—		—		(41,875)		(900)		—		(42,775)
Interest and dividend income	—		—		2		112		—		114
Trust services and administration revenues	—		8		—		(95)		—		(87)
Intersegment revenues
Interest income	13,022		—		—		—		(13,022)		—
Trust services and administration revenues	—		6,482		—		—		(6,482)		—
Total revenues	13,022		6,490		(41,886)		(883)		(19,504)		(42,761)
External expenses
Employee compensation and benefits	1,482		545		—		13,371		—		15,398
Interest expense	2,120		—		1,794		1,200		—		5,114
Professional services	264		89		884		5,420		—		6,657
Loss on impairment of goodwill	220,212		86,472		—		—		—		306,684
Other expenses	533		231		26		4,360		—		5,150
Intersegment expenses
Interest expense	—		—		29,835		—		(29,835)		—
Provision for credit losses	60,502		—		—		—		(60,502)		—
Other expenses	—		—		3,850		—		(3,850)		—
Total expenses	285,113		87,337		36,389		24,351		(94,187)		339,003
Operating loss	$	(272,091)	$	(80,847)	$	(78,275)	$	(25,234)	$	74,683	$	(381,764)
Income tax expense											—
Net loss											$	(381,764)

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(in thousands)	Six Months Ended September 30, 2024
	Ben Liquidity		Ben Custody		Customer ExAlt Trusts		Corporate/Other		Consolidating Eliminations		Consolidated
External Revenues
Investment income, net	$	—	$	—	$	19,569	$	—	$	—	$	19,569
Loss on financial instruments, net	—		—		(604)		(758)		—		(1,362)
Interest income	—		—		—		24		—		24
Trust services and administration revenues	—		376		—		—		—		376
Intersegment revenues
Interest income	22,827		—		—		—		(22,827)		—
Trust services and administration revenues	—		10,392		—		—		(10,392)		—
Total revenues	22,827		10,768		18,965		(734)		(33,219)		18,607
External expenses
Employee compensation and benefits	791		898		—		9,296		—		10,985
Interest expense	6,244		—		—		2,364		—		8,608
Professional services	869		426		1,167		10,339		—		12,801
Provision for credit losses	—		—		998		2		—		1,000
Loss on impairment of goodwill	—		3,427		—		265		—		3,692
Release of loss contingency related to arbitration award	—		—		—		(54,973)		—		(54,973)
Other expenses	853		401		309		4,308		—		5,871
Intersegment expenses
Interest expense	—		—		70,848		—		(70,848)		—
Provision for credit losses	11,679		—		—		—		(11,679)		—
Other expenses	—		—		6,821		—		(6,821)		—
Total expenses	20,436		5,152		80,143		(28,399)		(89,348)		(12,016)
Operating income (loss)	$	2,391	$	5,616	$	(61,178)	$	27,665	$	56,129	30,623
(Gain) loss on liability resolution											(23,462)
Income tax expense											28
Net income											$	54,057

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(in thousands)	Six Months Ended September 30, 2023
	Ben Liquidity		Ben Custody		Customer ExAlt Trusts		Corporate/Other		Consolidating Eliminations		Consolidated
External Revenues
Investment income, net	$	—	$	—	$	487	$	—	$	—	$	487
Loss on financial instruments, net	—		—		(43,679)		(2,557)		—		(46,236)
Interest and dividend income	—		—		10		220		—		230
Trust services and administration revenues	—		15		—		—		—		15
Intersegment revenues
Interest income	25,028		—		—		—		(25,028)		—
Trust services and administration revenues	—		13,050		—		—		(13,050)		—
Total revenues	25,028		13,065		(43,182)		(2,337)		(38,078)		(45,504)
External expenses
Employee compensation and benefits	3,975		1,105		—		46,141		—		51,221
Interest expense	2,878		—		3,668		2,352		—		8,898
Professional services	897		589		2,145		13,399		—		17,030
Loss on impairment of goodwill	1,121,212		281,777		—		—		—		1,402,989
Other expenses	1,187		438		383		10,084		—		12,092
Intersegment expenses
Interest expense	—		—		59,615		—		(59,615)		—
Provision for credit losses	69,998		—		—		—		(69,998)		—
Other expenses	—		—		7,694		—		(7,694)		—
Total expenses	1,200,147		283,909		73,505		71,976		(137,307)		1,492,230
Operating loss	$	(1,175,119)	$	(270,844)	$	(116,687)	$	(74,313)	$	99,229	$	(1,537,734)
Income tax expense											—
Net loss											$	(1,537,734)

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CONSOLIDATED

Results of Operations — Three Months Ended September 30, 2024 Compared to the Three Months Ended September 30, 2023, and the Six Months Ended September 30, 2024 Compared to the Six Months Ended September 30, 2023 (Unaudited)

Revenues (in thousands)

	Three Months Ended September 30,				Six Months Ended September 30,
	2024		2023		2024		2023
Investment income (loss), net	$	8,541	$	(13)	$	19,569	$	487
Loss on financial instruments, net	(179)		(42,775)		(1,362)		(46,236)
Interest and dividend income	12		114		24		230
Trust services and administration revenues	187		(87)		376		15
Total revenues	$	8,561	$	(42,761)	$	18,607	$	(45,504)

Three Months Ended September 30, 2024 and 2023

Investment income (loss), net increased $8.6 million for the three months ended September 30, 2024, compared to the same period of 2023, driven by changes in the NAV of investments in alternative assets held by certain of the Customer ExAlt Trusts. Investment income was $8.5 million for the three months ended September 30, 2024, which was driven by $4.8 million of upward quoted market price adjustments, $2.3 million of upward adjustments to our relative share of the respective fund’s NAV based on updated financial information received from the funds’ investment manager or sponsor, and $1.5 million of upward adjustments related to foreign currency impacts on investments denominated in currencies other than the U.S. dollar. Investment loss was nominal for the three months ended September 30, 2023, which was driven by $3.1 million of upward adjustments to our relative share of the respective fund’s NAV based on updated financial information received from the funds’ investment manager or sponsor offset by $1.6 million of downward adjustments related to foreign currency impacts on investments denominated in currencies other than the U.S. dollar and $1.5 million of downward quoted market price adjustments.

Loss on financial instruments, net decreased $42.6 million for the three months ended September 30, 2024, compared to the same period of 2023, driven by the changes in fair value of the financial instruments held during the period. Loss on financial instruments, net for the three months ended September 30, 2024 was primarily driven by an $0.2 million decrease in the value of our interests in the GWG Wind Down Trust and a $0.8 million combined loss in the fair value on the convertible debt, warrants and derivative liability, offset by a $0.7 million increase in the fair value of public equity securities. Loss on financial instruments, net for the three months ended September 30, 2023 included a $41.8 million decrease in the value of our interests in the GWG Wind Down Trust. Such decrease is net of a $13.7 million gain recognized upon reclassification of unrealized net gains related to the Company's previously classified available-for-sale debt securities from accumulated other comprehensive income. Additional drivers included a $0.7 million net decrease in the fair value of public equity securities combined with a $0.7 million decrease to the fair value of put options held, partially offset by a $0.2 million decrease in the fair value of a derivative liability and a $0.2 million decrease in the fair value of warrant liability.

Six Months Ended September 30, 2024 and 2023

Investment income (loss), net increased $19.1 million for the six months ended September 30, 2024, compared to the same period of 2023, driven by changes in the NAV of investments in alternative assets held by certain of the Customer ExAlt Trusts. Investment income was $19.6 million for the six months ended September 30, 2024, which was driven by $18.0 million of upward adjustments to our relative share of the respective fund’s NAV based on updated financial information received from the funds’ investment manager or sponsor, $1.3 million of upward adjustments related to foreign currency impacts on investments denominated in currencies other than the U.S. dollar offset by $1.1 million of downward quoted market price adjustments. Investment income was $0.5 million for the six months ended September 30, 2023, which was driven by $6.2 million of upward adjustments to our relative share of the respective fund’s NAV based on updated financial information received from the funds’ investment manager or sponsor, $4.7 million of downward quoted market price adjustments, and $1.0 million of downward adjustments related to foreign currency impacts on investments denominated in currencies other than the U.S. dollar.

Loss on financial instruments, net decreased $44.9 million for the six months ended September 30, 2024, compared to the same period of 2023, driven by the changes in fair value of the financial instruments held during the period. Loss on financial instruments, net for the six months ended September 30, 2024 was primarily driven by a $0.5 million decrease in the value of our interests in the GWG Wind Down Trust and a $0.8 million decrease in the fair value of on the convertible debt, warrants

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and derivative liability. Loss on financial instruments, net for the six months ended September 30, 2023 was primarily driven by a $41.8 million decrease in the value of our interests in the GWG Wind Down Trust. Such decrease is net of a $13.7 million gain recognized upon reclassification of unrealized net gains related to the Company’s previously classified available-for-sale debt securities from accumulated other comprehensive income. Additional drivers include a $4.4 million decrease in the fair value of public equity securities combined with a $3.0 million decrease to the fair value of put options held, partially offset by a $1.6 million decrease in the fair value of a derivative liability and a $1.7 million decrease in the fair value of a warrant liability.

Interest and Operating Expenses (in thousands)

	Three Months Ended September 30,				Six Months Ended September 30,
	2024		2023		2024		2023
Employee compensation and benefits	$	7,135	$	15,398	$	10,985	$	51,221
Interest expense (including amortization of deferred financing costs)	4,320		5,114		8,608		8,898
Professional services	7,257		6,657		12,801		17,030
Provision for credit losses	476		—		1,000		—
Loss on impairment of goodwill	298		306,684		3,692		1,402,989
Release of loss contingency related to arbitration award	—		—		(54,973)		—
Other expenses	2,790		5,150		5,871		12,092
Total expenses	$	22,276	$	339,003	$	(12,016)	$	1,492,230

Three Months Ended September 30, 2024 and 2023

Employee compensation and benefits decreased $8.3 million for the three months ended September 30, 2024, compared to the same period in 2023. The decrease is principally related to a $5.1 million decrease in equity-based compensation as the comparable period included $3.4 million recognized upon vesting of awards previously subject to a performance condition, which was satisfied by Ben’s public listing in June 2023, and the comparable period included new grants which were partially vested on the grant date. Additionally, there was a $3.1 million decrease in payroll and other benefit related costs due to a lower headcount in fiscal 2025 as compared to fiscal 2024 primarily due to the employees furloughed and terminated in the latter part of fiscal 2024. With the implementation of our operating cost reduction plan in November 2023, employee compensation and benefits began reflecting the lower expense of approximately $1.0 million per month beginning in November 2023 and such decrease has increased in recent months due to further attrition.

Interest expense decreased $0.8 million for the three months ended September 30, 2024, compared to the same period in 2023, primarily due a $1.8 million decrease in interest expense on the ExAlt Trust Loan Payable, which was extinguished in October 2023, a $0.2 million decrease in the amortization of deferred financing premium to interest expense offset by $0.8 million in interest expense and $0.1 million in deferred financing cost amortization recognized on the HH-BDH Credit Agreement, which did not exist in the comparable period.

Professional services expenses increased $0.6 million for the three months ended September 30, 2024, compared to the same period in 2023, primarily due to a $1.3 million increase in legal fees offset by a decrease in other professional fees. The increase in legal fees coincides with higher legal activity. The majority of this legal activity is expected to be eligible for reimbursement from our D&O insurance carriers and expense in the current period related to such matters reflects our estimate of incurred legal expenses expected to be denied by the insurance carriers. Also, as previously disclosed, with the implementation of our operating cost reduction plan, as updated during the three months ended December 31, 2023, professional services and other expenses combined could decrease up to approximately $35.0 million to $37.5 million on an annualized basis from their levels prior to the implementation of the cost reduction plan.

Provision for credit losses increased $0.5 million for the three months ended September 30, 2024, compared to the same period in 2023. Provision for credit losses during the three months ended September 30, 2024, is comprised of a credit related loss on an available-for-sale debt security held by the Customer ExAlt Trusts. No such losses were recognized in the same period of the prior year.

During the three months ended September 30, 2024, we completed an interim impairment test for goodwill and as a result, recorded a non-cash impairment charge of $0.3 million. See—Critical Accounting Estimates below and Note 6 to the Consolidated Financial Statements in “Part 1, Item 1.—Financial Statements” of this Quarterly Report on Form 10-Q for further information. Similar interim impairment test for goodwill was performed for the quarter ended September 30, 2023 which resulted in a non-cash impairment charge of $306.7 million.

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Other expenses decreased $2.4 million for the three months ended September 30, 2024, compared to the same period in 2023, primarily driven by a decrease in travel and entertainment ($1.5 million) and depreciation ($0.6 million). The table below provides additional detail regarding our other expenses. As mentioned above, with the implementation of our operating cost reduction plan, as updated during the three months ended December 31, 2023, other expenses were expected to decrease and may decrease further as opportunities arise.

Other Expenses (in thousands)

	Three Months Ended September 30,
	2024		2023
Other expenses	$	1,102	$	779
Other insurance and taxes	673		811
Software license and maintenance	399		724
Depreciation and amortization	391		991
Occupancy and equipment	164		305
Travel and entertainment	61		1,540
Total other expenses	$	2,790	$	5,150

Six Months Ended September 30, 2024 and 2023

Employee compensation and benefits decreased $40.2 million for the six months ended September 30, 2024, compared to the same period in 2023. The decrease is principally related to a $31.1 million decrease in equity-based compensation and a $9.1 million decrease in payroll and other benefit related costs. The comparable period included equity-based compensation of $11.4 million recognized upon vesting of awards previously subject to a performance condition, which was satisfied by Ben’s public listing in June 2023, and $15.0 million in equity-based compensation recognized as a result of transactions completed as part of the BCG Recapitalization. Additionally, there were additional equity grants in fiscal 2024 that resulted in a higher expenses than the limited grants that occurred in fiscal 2025. Additionally, there was a $9.1 million decrease in payroll and other benefit related costs due to a lower headcount in fiscal 2025 as compared to fiscal 2024 primarily due to the employees furloughed and terminated in the latter part of fiscal 2024. The lower headcount also impacts the equity-based compensation amounts being recognized. With the implementation of our operating cost reduction plan in November 2023, employee compensation and benefits began reflecting the lower expense of approximately $1.0 million per month beginning in November 2023 and such decrease has increased in recent months due to further attribution. This also resulted in adjustment to our accrued annual incentive bonus pool related to the decreased headcount in the fiscal 2025 year-to-date amounts.

Interest expense decreased $0.3 million for the six months ended September 30, 2024, compared to the same period in 2023. The decrease was primarily driven by a $1.7 million decrease in the amortization of deferred financing costs accounted for as a premium combined with a $1.7 million increase interest expense on all other borrowings including the new HH-BDH Credit Agreement borrowing in October 2023, offset by a $3.7 million decrease in interest expense on the Customer ExAlt Trust Loan Payable, which was extinguished in October 2023.

Professional services expenses decreased $4.2 million for the six months ended September 30, 2024, compared to the same period in 2023, primarily due to a decrease in legal fees of $2.3 million due to a higher percentage of legal activity expected to be eligible for reimbursement from our D&O insurance carriers combined with in other professional fees reflecting our cost reduction efforts and the higher expenses in fiscal 2024 associated our public listing in June 2023.

Provision for credit losses increased $1.0 million for the six months ended September 30, 2024, compared to the same period in 2023. Provision for credit losses for the six months ended September 30, 2024, is comprised of a credit related loss on an available-for-sale debt security held by the Customer ExAlt Trusts. No such losses were recognized in the same period of the prior year.

During the six months ended September 30, 2024, we completed interim impairment tests for goodwill and as a result, recorded non-cash impairment charges totaling $3.7 million. See—Critical Accounting Estimates below and Note 6 to the Consolidated Financial Statements in “Part 1, Item 1.—Financial Statements” of this Quarterly Report on Form 10-Q for further information. Similar interim impairment tests for goodwill was performed for during the six months ended September 30, 2023 which resulted in a non-cash impairment charge totaling $1.4 billion.

Release of loss contingency related to arbitration award recognized in the current fiscal period relates to the release of a previously recorded loss contingency recorded in the fiscal year ended March 31, 2024 that had been awarded against the Company during arbitration for compensatory damages, including prejudgment interest in a matter pertaining to a former

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director challenging the termination of certain equity awards under two incentive plans by the administrator of the incentive plans. The release of the loss contingency was based on a Texas District Court order vacating the previously recorded and disclosed arbitration award against Beneficient.

Other expenses decreased $6.2 million for the six months ended September 30, 2024, compared to the same period in 2023. The largest decrease relates to lower travel and entertainment, which reflects approximately $2.7 million of lower costs associated with an aircraft dry lease that expired on January 1, 2024. The table below provides additional detail regarding our other expenses.

Other Expenses (in thousands)	Six Months Ended September 30,
	2024		2023
Other expenses	$	1,943	$	1,867
Other insurance and taxes	1,767		2,871
Software license and maintenance	883		1,437
Depreciation and amortization	805		1,922
Occupancy and equipment	321		627
Travel and entertainment	152		3,368
Total other expenses	$	5,871	$	12,092

BEN LIQUIDITY

Results of Operations — Three Months Ended September 30, 2024 Compared to the Three Months Ended September 30, 2023, and the Six Months Ended September 30, 2024 Compared to the Six Months Ended September 30, 2023 (Unaudited)

(in thousands)	Three Months Ended September 30,				Six Months Ended September 30,
	2024		2023		2024		2023
Revenues
Interest income	$	11,978	$	13,022	$	22,827	$	25,028
Expenses
Employee compensation and benefits	361		1,482		791		3,975
Interest expense (including amortization of deferred financing costs)	3,163		2,120		6,244		2,878
Professional services	395		264		869		897
Provision for credit losses	4,752		60,502		11,679		69,998
Loss on impairment of goodwill	—		220,212		—		1,121,212
Other expenses	402		533		853		1,187
Total expenses	9,073		285,113		20,436		1,200,147
Operating income (loss)	$	2,905	$	(272,091)	$	2,391	$	(1,175,119)

Three Months Ended September 30, 2024 and 2023

Interest income decreased $1.0 million during the three months ended September 30, 2024 compared to the same period in 2023. The decrease was primarily driven by an overall decreases in interest income due to lower carrying value of loan receivables, which is driven by higher allowance for credit losses, along with a higher percentage of loan being placed on nonaccrual status.

Employee compensation and benefits decreased $1.1 million during the three months ended September 30, 2024 compared to the same period in 2023. The decrease was driven by payroll and other benefit related costs due to a lower headcount in fiscal 2025 as compared to fiscal 2024 primarily due to the employees furloughed and terminated in fiscal 2024 as well as further attrition in our headcounts in the current fiscal year.

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Interest expense increased $1.0 million during the three months ended September 30, 2024 compared to the same period in 2023, primarily driven by a $0.2 million decrease in the amortization of deferred financing premium to interest expense combined with $0.8 million in interest expense and $0.1 million in deferred financing cost amortization recognized on the HH-BDH Credit Agreement, which did not exist in the comparable period.

Provision for credit losses was $4.8 million for the three months ended September 30, 2024 as compared to $60.5 million as of the same period in 2023. The provision for the current period reduced over prior period primarily due to improved collateral values and resulting expected cash flows related to the loan portfolio outpacing the net growth in the amortized cost basis due interest capitalizing at a higher rate than loan payments. Approximately $47.1 million of the provision for credit losses in in quarter ended September 30, 2023 related to losses associated with the collateral comprised of interests in the GWG Wind Down Trust. No amount of the provision for credit losses in the quarter ended September 30, 2024 related to losses associated with the collateral comprised of interests in the GWG Wind Down Trust.

Prior to the start of fiscal year 2025, all goodwill associated with Ben Liquidity was written off as non-cash goodwill impairment charges including approximately $220.2 million during the quarter ended September 30, 2023. Accordingly, during the three months ended September 30, 2024, while we completed an interim impairment test for goodwill in the current period, there was no such non-cash goodwill impairment charge for Ben Liquidity. See—Critical Accounting Estimates below and Note 6 to the Consolidated Financial Statements in “Part 1, Item 1.—Financial Statements” of this Quarterly Report on Form 10-Q for further information.

Six Months Ended September 30, 2024 and 2023

Interest income decreased $2.2 million during the six months ended September 30, 2024 compared to the same period in 2023. The decrease was primarily driven by an overall decrease in interest income due to lower carrying value of loan receivables, which is driven by higher allowance for credit losses, along with a higher percentage of loan being placed on nonaccrual status.

Employee compensation and benefits decreased $3.2 million during the three months ended September 30, 2024 compared to the same period in 2023. The decrease was driven by payroll and other benefit related costs due to a lower headcount in fiscal 2025 as compared to fiscal 2024 primarily due to the employees furloughed and terminated in fiscal 2024. With the implementation of our operating cost reduction plan in November 2023, employee compensation and benefits began reflecting the lower expenses of approximately nearly $1.0 million per month beginning in November 2023.

Interest expense, including amortization of deferred financing costs, increased $3.4 million for the six months ended September 30, 2024, compared to the same period in 2023, primarily driven by a $1.7 million decrease in deferred financing costs accounted for as a premium and $1.5 million in interest expense and $0.2 million in deferred financing cost amortization recognized on the HH-BDH Credit Agreement, which did not exist in the comparable period.

Provision for credit losses was $11.7 million for the six months ended September 30, 2024, as compared to $70.0 million as of the same period in 2023, which included $39.6 million in credit losses driven by a decrease in collateral comprised of collateral comprised of interests in the GWG Wind Down Trust. The provision for the current period reduced over prior period primarily due to improved collateral values and resulting expected cash flows related to the loan portfolio outpacing the net growth in the amortized cost basis due interest capitalizing at a higher rate than loan payments.

Prior to the start of fiscal year 2025, all goodwill associated with Ben Liquidity was written off as non-cash goodwill impairment charges including approximately $1.1 billion during the six months ended September 30, 2023. Accordingly, during the six months ended September 30, 2024, while we completed interim impairment tests for goodwill in the current fiscal year, there was no such non-cash goodwill impairment charge for Ben Liquidity. See—Critical Accounting Estimates below and Note 6 to the Consolidated Financial Statements in “Part 1, Item 1.—Financial Statements” of this Quarterly Report on Form 10-Q for further information.

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BEN CUSTODY

Results of Operations — Three Months Ended September 30, 2024 Compared to the Three Months Ended September 30, 2023, and the Six Months Ended September 30, 2024 Compared to the Six Months Ended September 30, 2023 (Unaudited)

(in thousands)	Three Months Ended September 30,				Six Months Ended September 30,
	2024		2023		2024		2023
Revenues
Trust services and administration revenues	$	5,386	$	6,490	$	10,768	$	13,065
Expenses
Employee compensation and benefits	542		545		898		1,105
Professional services	30		89		426		589
Loss on impairment of goodwill	298		86,472		3,427		281,777
Other expenses	187		231		401		438
Total expenses	1,057		87,337		5,152		283,909
Operating income (loss)	$	4,329	$	(80,847)	$	5,616	$	(270,844)

Three Months Ended September 30, 2024 and 2023

Trust services and administration revenues decreased $1.1 million for the three months ended September 30, 2024, compared to the same period in 2023 driven by a decrease in the NAV of the alternative assets held by the Customer ExAlt Trusts, which is an input into the calculation of the recurring trust services revenues.

During the three months ended September 30, 2024, we completed an interim impairment test for goodwill and as a result, recorded a non-cash impairment charge of $0.3 million for Ben Custody. See—Critical Accounting Estimates below and Note 6 to the Consolidated Financial Statements in “Part 1, Item 1.—Financial Statements” of this Quarterly Report on Form 10-Q for further information. Similar interim impairment test for goodwill was performed for the quarter ended September 30, 2023 which resulted in a non-cash impairment charge of $86.5 million for this reporting unit.

Six Months Ended September 30, 2024 and 2023

Trust services and administration revenues decreased $2.3 million for the six months ended September 30, 2024, compared to the same period in 2023, driven by a decrease in the NAV of the alternative assets held by the Customer ExAlt Trusts, which is an input into the calculation of the recurring trust services revenues.

During the six months ended September 30, 2024, we completed interim impairment tests for goodwill and as a result, recorded non-cash impairment charges totaling $3.4 million for Ben Custody. See—Critical Accounting Estimates below and Note 6 to the Consolidated Financial Statements in “Part 1, Item 1.—Financial Statements” of this Quarterly Report on Form 10-Q for further information. Similar interim impairment tests for goodwill were performed for during the six months ended September 30, 2023, which resulted in non-cash impairment charges totaling $281.8 million for this reporting unit.

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CUSTOMER EXALT TRUSTS

Results of Operations — Three Months Ended September 30, 2024 Compared to the Three Months Ended September 30, 2023, and the Six Months Ended September 30, 2024 Compared to the Six Months Ended September 30, 2023 (Unaudited)

(in thousands)	Three Months Ended September 30,				Six Months Ended September 30,
	2024		2023		2024		2023
Revenues
Investment income (loss), net	$	8,541	$	(13)	$	19,569	$	487
Gain (loss) on financial instruments, net	571		(41,875)		(604)		(43,679)
Interest and dividend income	—		2		—		10
Total revenues	9,112		(41,886)		18,965		(43,182)
Expenses
Interest expense	36,049		31,629		70,848		63,283
Professional services	545		884		1,167		2,145
Provision for credit losses	476		—		998		—
Other expenses	3,591		3,876		7,130		8,077
Total expenses	40,661		36,389		80,143		73,505
Operating loss	$	(31,549)	$	(78,275)	$	(61,178)	$	(116,687)

Three Months Ended September 30, 2024 and 2023

Investment income (loss), net increased $8.6 million for the three months ended September 30, 2024, compared to the same period of 2023, driven by changes in the NAV of investments in alternative assets held by certain of the Customer ExAlt Trusts. Investment income was $8.5 million for the three months ended September 30, 2024, which was driven by $4.8 million of upward quoted market price adjustments, $2.3 million of upward adjustments to our relative share of the respective fund’s NAV based on updated financial information received from the funds’ investment manager or sponsor, and $1.5 million of upward adjustments related to foreign currency impacts on investments denominated in currencies other than the U.S. dollar. Investment loss was nominal for the three months ended September 30, 2023, which was driven by $3.1 million of upward adjustments to our relative share of the respective fund’s NAV based on updated financial information received from the funds’ investment manager or sponsor offset by $1.6 million of downward adjustments related to foreign currency impacts on investments denominated in currencies other than the U.S. dollar and $1.5 million of downward quoted market price adjustments.

Gain (loss) on financial instruments, net increased $42.4 million for the three months ended September 30, 2024, compared to the same period of 2023, driven by the changes in fair value of the financial instruments held during the period. Gain on financial instruments, net for three months ended September 30, 2024, was primarily driven by a $0.7 million increase in the fair value of public equity securities offset by a $0.2 million decrease in the value of our interests in the GWG Wind Down Trust. Loss on financial instruments, net for the three months ended September 30, 2023 was primarily driven by a $41.4 million decrease in the value of our interests in the GWG Wind Down Trust. Such decrease is net of a $13.7 million gain recognized upon reclassification of unrealized net gains related to the Company's previously classified available-for-sale debt securities from accumulated other comprehensive income. Additional drivers included a $0.7 million decrease to the fair value of public equity securities partially offset by a $0.2 million decrease in the fair value of a derivative liability.

Interest expense increased $4.4 million for the three months ended September 30, 2024, compared to the same period in 2023, which reflects an increase in contractual interest due on the ExAlt Loans, driven by the origination of new liquidity transactions and the compounding of paid-in-kind interest, partially offset by a $1.8 million decrease in interest expense recognized on the Customer ExAlt Trust loan payable, which was extinguished in October 2023.

Professional services decreased $0.3 million for the three months ended September 30, 2024, compared to the same period in 2023, driven by decreases in general professional expenses such as audit, consulting, and other professional fees.

Provision for credit losses increased $0.5 million for the three months ended September 30, 2024, compared to the same period in 2023, Provision for credit losses during the three months ended September 30, 2024, is comprised of a credit related

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loss on an available-for-sale debt security held by the Customer ExAlt Trusts. No such losses were recognized in the same period of the prior year.

Other expenses decreased $0.3 million for the three months ended September 30, 2024, compared to the same period in 2023, due to a decrease in trust administration fees and other expenses principally driven by a decrease in the NAV of the alternative assets held by the Customer ExAlt Trusts.

Six Months Ended September 30, 2024 and 2023

Investment income (loss), net increased $19.1 million for the six months ended September 30, 2024, compared to the same period of 2023, driven by changes in the NAV of investments in alternative assets held by certain of the Customer ExAlt Trusts. Investment income was $19.6 million for the six months ended September 30, 2024, which was driven by $18.0 million of upward adjustments to our relative share of the respective fund’s NAV based on updated financial information received from the funds’ investment manager or sponsor, $1.3 million of upward adjustments related to foreign currency impacts on investments denominated in currencies other than the U.S. dollar offset by $1.1 million of downward quoted market price adjustments. Investment income was $0.5 million for the six months ended September 30, 2023, which was driven by $6.2 million of upward adjustments to our relative share of the respective fund’s NAV based on updated financial information received from the funds’ investment manager or sponsor, $4.7 million of downward quoted market price adjustments, and $1.0 million of downward adjustments related to foreign currency impacts on investments denominated in currencies other than the U.S. dollar.

Loss on financial instruments, net decreased $43.1 million for the six months ended September 30, 2024, compared to the same period of 2023, driven by the changes in fair value of the financial instruments held during the period. Loss on financial instruments, net for the six months ended September 30, 2024 was primarily driven by a $0.5 million decrease in the value of our interests in the GWG Wind Down Trust. Loss on financial instruments, net for the six months ended September 30, 2023 was primarily driven by a $41.4 million decrease in the value of our interests in the GWG Wind Down Trust. Such decrease is net of a $13.7 million gain recognized upon reclassification of unrealized net gains related to the Company’s previously classified available-for-sale debt securities from accumulated other comprehensive income. Additional drivers included a $4.4 million decrease in the fair value of public equity securities partially offset by a $1.6 million decrease in the fair value of a derivative liability.

Interest expense increased $7.6 million for the six months ended September 30, 2024, compared to the same period in 2023, which reflects an increase in contractual interest on the ExAlt Loans, driven by the origination of new liquidity transactions and the compounding of effects of paid-in-kind interest, slightly offset by a $3.7 million decrease in interest expense recognized on the Customer ExAlt Trust loan payable, which was extinguished in October 2023.

Professional services decreased $1.0 million for the six months ended September 30, 2024, which represented decreases in general professional expenses such as audit, consulting, and other professional fees.

Provision for credit losses increased $1.0 million for the six months ended September 30, 2024, compared to the same period in 2023. Provision for credit losses for the six months ended September 30, 2024, is comprised of a credit related loss on an available-for-sale debt security held by the Customer ExAlt Trusts. No such losses were recognized in the same period of the prior year.

Other expenses decreased $0.9 million for the six months ended September 30, 2024, compared to the same period in 2023, due to a decrease in trust administration fees and other expenses principally driven by a decrease in the NAV of the alternative assets held by the Customer ExAlt Trusts.

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CORPORATE AND OTHER

Results of Operations — Three Months Ended September 30, 2024 Compared to the Three Months Ended September 30, 2023, and the Six Months Ended September 30, 2024 Compared to the Six Months Ended September 30, 2023 (Unaudited)

(in thousands)	Three Months Ended September 30,				Six Months Ended September 30,
	2024		2023		2024		2023
Revenues
Loss on financial instruments, net	$	(750)	$	(900)	$	(758)	$	(2,557)
Interest income	12		112		24		220
Trust services and administration revenues	—		(95)		—		—
Total revenues	(738)		(883)		(734)		(2,337)
Expenses
Employee compensation and benefits	6,232		13,371		9,296		46,141
Interest expense (including amortization of deferred financing costs)	1,157		1,200		2,364		2,352
Professional services	6,287		5,420		10,339		13,399
Provision for credit losses	—		—		2		—
Loss on impairment of goodwill	—		—		265		—
Release of loss contingency related to arbitration award	—		—		(54,973)		—
Other expenses	2,012		4,360		4,308		10,084
Total expenses	15,688		24,351		(28,399)		71,976
Operating income (loss)	$	(16,426)	$	(25,234)	$	27,665	$	(74,313)

Three Months Ended September 30, 2024 and 2023

Loss on financial instruments, net decreased $0.2 million for the three months ended September 30, 2024, compared to the same period of 2023, driven by the changes in fair value of the financial instruments held during the period. Loss on financial instruments, net for the three months ended September 30, 2024, included a $0.8 million combined loss in the fair value on the convertible debt, warrants and derivative liability. Loss on financial instruments, net for the three months ended September 30, 2023, included a $0.7 million decrease in the fair value of put options held, $0.4 million decrease in the fair value of our interests in the GWG Wind Down Trust, partially offset by a $0.2 million decrease in the fair value of a warrant liability.

Employee compensation and benefits decreased $7.1 million for the three months ended September 30, 2024, compared to the same period in 2023. The decrease was principally related to a $5.1 million decrease in equity-based compensation as the comparable period included $3.4 million recognized upon vesting of awards previously subject to a performance condition, which was satisfied by Ben’s public listing in June 2023, and the comparable period included new grants which were partially vested on the grant date. Additionally, there was a $2.0 million decrease in payroll and other benefit-related costs due to a lower headcount in fiscal 2025 as compared to fiscal 2024 primarily due to the employees furloughed and terminated in latter part of fiscal 2024 as well as continued employee attrition during the current fiscal year.

Professional services increased $0.9 million during the three months ended September 30, 2024, compared to the same period in 2023, primarily due to a increase in legal fees offset partially by lower other professional fees. The increase in legal fees coincides with higher legal activity. The majority of this legal activity is expected to be eligible for reimbursement from our D&O insurance carriers and expense in the current period related to such matters reflects our estimate of incurred legal expenses expected to be denied by the insurance carriers. Lower professional fees principally related to ongoing efforts to reduce operating expenses.

Other expenses decreased $2.3 million during the three months ended September 30, 2024, compared to the same period in 2023, primarily driven by a decrease in various categories, including travel and entertainment, insurance and taxes, and depreciation. The largest decrease is driven by the expiration of an aircraft dry lease on January 1, 2024 which resulted in approximately $1.4 million lower expenses in the current period as compared to the same period in the prior year.

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Six Months Ended September 30, 2024 and 2023

Loss on financial instruments, net decreased $1.8 million for the six months ended September 30, 2024, compared to the same period of 2023, driven by the changes in fair value of the financial instruments held during the period. Loss on financial instruments, net for the six months ended September 30, 2024, includes a $0.8 million decrease in the combined fair value of the convertible debt, warrants and derivative liability. Loss on investments in securities and options for the six months ended September 30, 2023, included a $3.0 million net decrease to the fair value of put options held, $0.8 million decrease in the fair value of public equity securities, which consisted of shares of GWG Holdings, partially offset by a $1.7 million decrease in the fair value of a warrant liability.

Employee compensation and benefits decreased $36.8 million for the six months ended September 30, 2024, compared to the same period in 2023. The decrease was driven by a $31.1 million decrease in equity-based compensation and $5.7 million decrease in payroll and other benefit-related costs. The comparable period included equity-based compensation of $11.4 million recognized upon vesting of awards previously subject to a performance condition, which was satisfied by Ben’s public listing in June 2023, and $15.0 million in equity-based compensation recognized as a result of transactions completed as part of the BCG Recapitalization. Additionally, there were additional equity grants in fiscal 2024 that resulted in a higher expenses than the limited grants that occurred in fiscal 2025. Additionally, there was a $5.7 million decrease in payroll and other benefit-related costs due to a lower headcount in fiscal 2025 as compared to fiscal 2024 primarily due to the employees furloughed and terminated in latter part of fiscal 2024 as well as adjustment to our accrued annual incentive bonus pool related to the decreased headcount.

Professional services decreased $3.1 million during the six months ended September 30, 2024, compared to the same period in 2023, primarily due to a decrease in legal fees and other professional fees. The decrease in legal fees is principally related to a higher percentage of current ongoing legal matters expected to be eligible for reimbursement from our D&O insurance carriers. Lower professional fees principally related to ongoing efforts to reduce operating expenses along with the comparable period having higher amounts due to transaction related activity.

During the six months ended September 30, 2024, we completed interim impairment tests for goodwill and as a result, recorded non-cash impairment charges totaling $0.3 million related to reporting unit(s) including in this reporting segment. See—Critical Accounting Estimates below and Note 6 to the Consolidated Financial Statements in “Part 1, Item 1.—Financial Statements” of this Quarterly Report on Form 10-Q for further information. Similar interim impairment tests for goodwill were performed during the six months ended September 30, 2023, however, no such non-cash goodwill impairment charge was determined to be necessary in that period related to reporting unit(s) included in this reporting segment.

Release of loss on arbitration recognized in the current fiscal period relates to the release of a previously recorded loss contingency recorded in the fiscal year ended March 31, 2024 that had been awarded against the Company during arbitration for compensatory damages, including prejudgment interest in a matter pertaining to a former director challenging the termination of certain equity awards under two incentive plans by the administrator of the incentive plans. The release of the loss contingency was based on a Texas District Court order vacating the previously recorded and disclosed arbitration award against Beneficient.

Other expenses decreased $5.8 million for the six months ended September 30, 2024, compared to the same period in 2023, primarily driven by a decrease in various categories, including travel and entertainment, insurance and taxes, and depreciation. The largest decrease relates to lower travel and entertainment, which reflects approximately $2.7 million of lower costs associated with an aircraft dry lease that expired on January 1, 2024.

Supplemental Unaudited Presentation of Non-GAAP Financial Information

Adjusted revenue and adjusted operating income (loss) are non-GAAP financial measures. We present these non-GAAP financial measures because we believe it helps investors understand underlying trends in our business and facilitates an understanding of our operating performance from period to period because it facilitates a comparison of our recurring core business operating results. These non-GAAP financial measures are intended as a supplemental measure of our performance that is neither required by, nor presented in accordance with, U.S. GAAP. Our presentation of these measures should not be construed as an inference that our future results will be unaffected by unusual or non-recurring items. Our computation of these non-GAAP financial measures may not be comparable to other similarly titled measures computed by other companies, because all companies may not calculate such items in the same way.

We define adjusted revenue as revenue adjusted to exclude the effect of mark-to-market adjustments on related party equity securities that were acquired both prior to and during the Collateral Swap, which on August 1, 2023, became interests in the GWG Wind Down Trust.

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We define adjusted operating income (loss) as operating income (loss), adjusted to exclude the effect of the adjustments to revenue as described above, credit losses on related party available-for-sale debt securities that were acquired in the Collateral Swap, which on August 1, 2023, became interests in the GWG Wind Down Trust, and receivables from a related party that filed for bankruptcy and certain notes receivables originated during our formative transactions, non-cash asset impairment, share-based compensation expense, and legal, professional services, and public relations costs related to the GWG Holdings bankruptcy, lawsuits, a defunct product offering, and certain employee matters, including fees and loss contingency accruals (releases) incurred in arbitration with a former director.

These non-GAAP financial measures are not a measure of performance or liquidity calculated in accordance with U.S. GAAP. They are unaudited and should not be considered an alternative to, or more meaningful than, revenue or operating income (loss) as an indicator of our operating performance. Uses of cash flows that are not reflected in adjusted operating income (loss) include capital expenditures, interest payments, debt principal repayments, and other expenses, which can be significant. As a result, adjusted operating income (loss) should not be considered as a measure of our liquidity.

Because of these limitations, adjusted revenue and adjusted operating income (loss) should not be considered in isolation or as a substitute for performance measures calculated in accordance with U.S. GAAP. We compensate for these limitations by relying primarily on our U.S. GAAP results and using adjusted revenue and adjusted operating income (loss) on a supplemental basis. You should review the reconciliation of revenue to adjusted revenue and operating income (loss) to adjusted operating income (loss) set forth below and not rely on any single financial measure to evaluate our business.

The following tables set forth a reconciliation of adjusted revenue to revenue and adjusted operating income (loss) to operating income (loss), the most directly comparable U.S. GAAP measures, using data derived from our consolidated financial statements for the periods indicated:

(in thousands)	Three Months Ended September 30, 2024
	Ben Liquidity		Ben Custody		Customer ExAlt Trusts		Corporate/Other		Consolidating Eliminations		Consolidated
Total revenues	$	11,978	$	5,386	$	9,112	$	(738)	$	(17,177)	$	8,561
Mark to market adjustment on interests in the GWG Wind Down Trust	—		—		173		—		—		173
Adjusted revenues	$	11,978	$	5,386	$	9,285	$	(738)	$	(17,177)	$	8,734
Operating income (loss)	$	2,905	$	4,329	$	(31,549)	$	(16,426)	$	27,026	$	(13,715)
Mark to market adjustment on interests in the GWG Wind Down Trust	—		—		173		—		—		173
Goodwill impairment	—		298		—		—		—		298
Share-based compensation expense	—		—		—		3,364		—		3,364
Legal and professional fees(1)	—		—		—		3,269		—		3,269
Adjusted operating income (loss)	$	2,905	$	4,627	$	(31,376)	$	(9,793)	$	27,026	$	(6,611)

(1) Includes legal and professional fees related to lawsuits.

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(in thousands)	Three Months Ended September 30, 2023
	Ben Liquidity		Ben Custody		Customer ExAlt Trusts		Corporate/Other		Consolidating Eliminations		Consolidated
Total revenues	$	13,022	$	6,490	$	(41,886)	$	(883)	$	(19,504)	$	(42,761)
Mark to market adjustment on interests in the GWG Wind Down Trust	—		—		41,523		437		—		41,960
Adjusted revenues	$	13,022	$	6,490	$	(363)	$	(446)	$	(19,504)	$	(801)
Operating income (loss)	$	(272,091)	$	(80,847)	$	(78,275)	$	(25,234)	$	74,683	$	(381,764)
Mark to market adjustment on interests in the GWG Wind Down Trust	—		—		41,523		437		—		41,960
Intersegment provision for credit losses on collateral comprised of interests in the GWG Wind Down Trust	47,141		—		—		—		(47,141)		—
Goodwill impairment	220,212		86,472		—		—		—		306,684
Share-based compensation expense	—		—		—		8,503		—		8,503
Legal and professional fees(1)	—		—		—		3,447		—		3,447
Adjusted operating income (loss)	$	(4,738)	$	5,625	$	(36,752)	$	(12,847)	$	27,542	$	(21,170)

(1) Includes legal and professional fees related to GWG Holdings bankruptcy, lawsuits, public relations and employee matters.

(in thousands)	Six Months Ended September 30, 2024
	Ben Liquidity		Ben Custody		Customer ExAlt Trusts		Corporate/Other		Consolidating Eliminations		Consolidated
Total revenues	$	22,827	$	10,768	$	18,965	$	(734)	$	(33,219)	$	18,607
Mark to market adjustment on interests in the GWG Wind Down Trust	—		—		531		7		—		538
Adjusted revenues	$	22,827	$	10,768	$	19,496	$	(727)	$	(33,219)	$	19,145
Operating income (loss)	$	2,391	$	5,616	$	(61,178)	$	27,665	$	56,129	$	30,623
Mark to market adjustment on interests in the GWG Wind Down Trust	—		—		531		7		—		538
Intersegment provision for credit losses on collateral comprised of interests in the GWG Down Trust	5		—		—		—		(5)		—
Goodwill impairment	—		3,427		—		265		—		3,692
Release of loss contingency related to arbitration award	—		—		—		(54,973)		—		(54,973)
Share-based compensation expense	—		—		—		4,358		—		4,358
Legal and professional fees(1)	—		—		—		4,425		—		4,425
Adjusted operating income (loss)	$	2,396	$	9,043	$	(60,647)	$	(18,253)	$	56,124	$	(11,337)

(1) Includes legal and professional fees related to lawsuits.

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(in thousands)	Six Months Ended September 30, 2023
	Ben Liquidity		Ben Custody		Customer ExAlt Trusts		Corporate/Other		Consolidating Eliminations		Consolidated
Total revenues	$	25,028	$	13,065	$	(43,182)	$	(2,337)	$	(38,078)	$	(45,504)
Mark to market adjustment on interests in the GWG Wind Down Trust	—		—		44,367		1,159		—		45,526
Adjusted revenues	$	25,028	$	13,065	$	1,185	$	(1,178)	$	(38,078)	$	22
Operating income (loss)	$	(1,175,119)	$	(270,844)	$	(116,687)	$	(74,313)	$	99,229	$	(1,537,734)
Mark to market adjustment on interests in the GWG Wind Down Trust	—		—		44,367		1,159		—		45,526
Intersegment provision for loan losses on collateral comprised of interests in the GWG Wind Down Trust	39,610		—		—		—		(39,610)		—
Goodwill impairment	1,121,212		281,777		—		—		—		1,402,989
Share-based compensation expense	—		—		—		35,504		—		35,504
Legal and professional fees(1)	—		—		—		8,025		—		8,025
Adjusted operating income (loss)	$	(14,297)	$	10,933	$	(72,320)	$	(29,625)	$	59,619	$	(45,690)

(1) Includes legal and professional fees related to GWG Holdings bankruptcy, lawsuits, public relations, and employee matters.

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Financial Condition

Ben Liquidity’s Loan Portfolio and Customer ExAlt Trusts’ Investment in Alternative Assets

Our primary operations currently consist of offering our liquidity and trust administration services to our customers, primarily through certain of our operating subsidiaries, Ben Liquidity and Ben Custody, respectively. Ben Liquidity offers simple, rapid and cost-effective liquidity products to its customers using a proprietary financing and trusts structure, the Customer ExAlt Trusts, which facilitate the exchange of a customer’s alternative assets for consideration using a unique financing structure, the ExAlt PlanTM. In ExAlt PlanTM financings, a subsidiary of Ben Liquidity, BFF, makes ExAlt Loans to certain of the Customer ExAlt Trusts, which in turn employ a portion of the loan proceeds to acquire and deliver agreed upon consideration to the customer, in exchange for their alternative assets. Ben Liquidity generates interest and fee income earned in connection with such ExAlt Loans to certain of the Customer ExAlt Trusts, which are collateralized by the cash flows from the exchanged alternative assets, or the “Collateral.” The Collateral held by the Customer ExAlt Trusts supports the repayment of the loans plus any related interest and fees. In the event that an ExAlt Loan’s principal balance is reduced to zero dollars ($0), any remaining Collateral supporting such ExAlt Loan effectively cross-collateralizes other ExAlt Loans, as any such excess cash flows must be applied to pay off the outstanding balances of other ExAlt Loans pursuant to the terms of the trust agreements governing certain of the ExAlt Trusts. Ben Custody provides full-service trust and custody administration services to the trustees of certain of the Customer ExAlt Trusts, including BFF, which own the exchanged alternative asset following a liquidity transaction for fees payable quarterly.

As of September 30, 2024, Ben Liquidity’s loan portfolio consisted of ExAlt Loans to the Customer ExAlt Trusts with an aggregate principal amount outstanding of $575.9 million, including accrued interest that has been capitalized on the ExAlt Loans. Ben Liquidity’s ExAlt Loans are structured as loans with a maturity date of 12 years that bear contractual interest at a variable rate or fixed rate that compounds monthly. The ExAlt Loans made prior to December 31, 2020 have a variable interest rate established off of a base rate of 14%, and ExAlt Loans made on or after December 31, 2020 have a variable interest rate established off a base rate of 10% or a fixed rate of 5%. Ben Liquidity may make ExAlt Loans in the future with a variable interest rate established off of different base rates. Since the Customer ExAlt Trusts are consolidated, the ExAlt Loans and related interest and fee income earned by Ben Liquidity and Ben Custody from the Customer ExAlt Trusts are eliminated in the presentation of our consolidated financial statements; however, such amounts directly impact the income (loss) allocable to Ben’s or BCH’s equity holders.

The Customer ExAlt Trusts’ investments are the source of the Collateral supporting the ExAlt Loans plus any related interest and fees. These investments, either through direct ownership or through beneficial interests, consist primarily of limited partnership interests in various alternative assets, including private equity funds. These alternative investments are recorded at fair value using NAV as a practical expedient. Changes in the fair value (i.e., NAV) of these alternative investments are recorded in investment income (loss), net in our consolidated statements of operations. The Customer ExAlt Trusts’ investments in alternative assets and investments in equity and debt securities provide the economic value creating the Collateral to the ExAlt Loans made in connection with each liquidity transaction.

The underlying interests in alternative assets are primarily limited partnership interests. The transfer of the investments in private equity funds generally requires the consent of the corresponding private equity fund manager, and the transfer of certain fund investments is subject to rights of first refusal or other preemptive rights, potentially further limiting the ExAlt PlanTM from transferring an investment in a private equity fund. Distributions from funds are received as the underlying investments are liquidated. Timing of liquidation is currently unknown.

The Customer ExAlt Trusts held interests in alternative assets with a NAV of $301.4 million and $293.9 million as of September 30, 2024 and March 31, 2024, respectively. As of September 30, 2024, the Customer ExAlt Trusts’ portfolio had exposure to 237 professionally managed alternative investment funds, comprised of 797 underlying investments, 92 percent of which are investments in private companies. Additionally, the Customer ExAlt Trusts directly hold investments in debt and equity securities. The aggregate value of these investments was $33.6 million and $35.2 million as of September 30, 2024 and March 31, 2024, respectively.

The following sections provide more detailed information for Ben Liquidity’s loan portfolio and related allowance for credit losses and the Customer ExAlt Trusts’ investments in alternative assets and other equity and debt securities.

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Ben Liquidity

Loans Receivable

The following table provides the carrying value of the loan portfolio by collateral type and classification (in thousands):

	September 30, 2024		March 31, 2024
Loans collateralized by interests in alternative assets	$	477,978	$	394,328
Loans collateralized by debt and equity securities	97,961		165,430
Total loans receivable	575,939		559,758
Allowance for credit losses	(315,253)		(303,574)
Total loans receivable, net	$	260,686	$	256,184

The following table provides certain information concerning our loan portfolio by collateral type and maturity as of September 30, 2024 (in thousands):

	Original Principal		Interest Accrued		Aggregate Payments		Outstanding Balance(1)		Allowance		Carrying Value
Loans collateralized by interests in alternative assets
Within 5 Years	$	374,110	$	212,886	$	(341,283)	$	122,697	$	41,828	$	80,869
After 5 Years Within 10 Years	311,103		165,184		(82,489)		309,588		153,529		156,059
After 10 Years	46,429		2,576		(3,312)		45,693		43,790		1,903
Loans collateralized by debt and equity securities
Within 5 Years	12,564		6,419		(11,486)		3,028		1,865		1,163
After 5 Years Within 10 Years	86,173		65,273		(556)		90,374		73,478		16,896
After 10 Years	3,903		755		(98)		4,559		763		3,796
Total	$	834,282	$	453,093	$	(439,224)	$	575,939	$	315,253	$	260,686

(1) This balance includes $272.2 million in unamortized discounts as of September 30, 2024.

Loan to Value Ratio

The loan to value ratio is calculated as the carrying value of loans receivable after any allowance for credit losses over the Collateral Value of the loan portfolio. The value of the Collateral (the “Collateral Value”) is defined as the mutual beneficial interest of the respective Customer ExAlt Trust, which we refer to as the “Collective Trust” that is owned by the Customer ExAlt Trust, which we refer to as the “Funding Trust,” that borrows from Ben Liquidity’s subsidiary, BFF. The Collateral Value is derived from the expected cash flows from the various alternative assets held by other trusts included within the Customer ExAlt Trust structure. The Collateral is valued using industry standard valuation models, which includes assumptions related to (i) equity market risk premiums, (ii) alternative asset beta to public equities, (iii) NAVs, (iv) volatilities, (v) distribution rates, and (vi) market discount rates. The fair value of the mutual beneficial interests collateralizing the loan portfolio as of September 30, 2024 and March 31, 2024, was $266.0 million and $292.7 million, respectively.

The loan to value ratio for the entire loan portfolio was 0.98 and 0.88 as of September 30, 2024 and March 31, 2024, respectively. The increase in the loan to value ratio from March 31, 2024 to September 30, 2024 was driven by an increase in the allowance for credit losses, which is primarily due to lower loan repayments, when compared to accrued interest and fees, resulting in the loan carrying value increasing by approximately $4.5 million, while the fair value of the collateral declined period over period.

Allowance for Credit Losses

The ExAlt Loans’ allowance for credit losses is an input to the allocation of income (loss) to Ben’s or BCH’s equity holders.

On April 1, 2023, we adopted Accounting Standards Update (“ASU”) 2016-13, Financial Instruments, Credit Losses (Topic 326) (“CECL”), which requires an estimate of the credit losses expected over the life of a loan (or pool of loans). It replaced the incurred loss approach’s threshold that required the recognition of a credit loss when it was probable that a loss event was incurred. The allowance for credit losses is a valuation account that is deducted from, or added to, the loans’ amortized cost basis to present the net, lifetime amount expected to be collected on the loans.

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Management estimates the allowance using relevant available information from internal and external sources related to past events, current conditions, and reasonable and supportable economic forecasts. Historical credit loss experience provides the basis for the estimation of expected credit losses. Ben currently does not have adequate historical loss data to provide a basis for the long-term loss information associated with its loans. As such, Ben uses alternative, long-term historical average credit loss data from Preqin, Ltd. in establishing the loss history as a proxy.

Adjustments to historical loss information are made for differences in current loan-specific risk characteristics such as differences in credit concentrations, collateral values and underwriting standards as well as changes in economic conditions or other relevant factors. Management judgment is required at each point in the measurement process.

Ben uses the discounted cash flow (“DCF”) method to estimate expected credit losses for the loan portfolio. Ben generates cash flow projections at the loan level wherein payment expectations are adjusted for changes in market risk premiums, risk free rate, NAV growth rate, and discount rate. The inputs are based on historical data from Preqin, Ltd. and adjusted, if necessary, based on the reasonable and supportable forecast of economic conditions. To adjust, management utilizes externally developed forward-looking macroeconomic factors as indicators of future expected cash flows: S&P 500 Index data and US 3-Month Treasury. The economic forecasts are applied over the cashflow projection period.

The combination of adjustments for credit expectations (default and loss) and timing expectations (prepayment, curtailment, and time to recovery) produces an expected cash flow stream at the instrument level. Instrument effective yield is calculated, net of the impacts of prepayment assumptions, and the instrument expected cash flows are then discounted at that effective yield to produce an instrument-level net present value of expected cash flows (“NPV”). An allowance for credit loss is established for the difference between the instrument’s NPV and amortized cost basis.

The DCF model also considers the need to qualitatively adjust expected loss estimates for information not already captured in the quantitative loss estimation process. Qualitative considerations include limitations inherent in the quantitative model; trends experienced in nonperforming loans; changes in value of underlying collateral; changes in underwriting policies and procedures; nature and composition of loans; portfolio concentrations that may affect loss experience across one or more components or the portfolio; and the effect of external factors such as competition, legal and regulatory requirements. These qualitative factor adjustments may increase or decrease Ben’s estimate of expected credit losses so that the allowance for credit loss is reflective of the estimate of lifetime losses that exist in the loan portfolio at the balance sheet date.

The following table provides the allowance for credit losses recognized by Ben Liquidity and Ben Custody by collateral type and by classification (in thousands):

	September 30, 2024		March 31, 2024
Loans collateralized by interests in alternative assets	$	239,147	$	168,089
Loans collateralized by interest in debt and equity securities	76,106		135,485
Total allowance for credit losses	$	315,253	$	303,574

The following table provides a rollforward of the allowance for credit losses recognized by Ben Liquidity and Ben Custody by collateral type (in thousands):

	Three Months Ended September 30, 2024				Three Months Ended September 30, 2023
(unaudited)	Alternative Assets		Debt & Equity Securities		Alternative Assets		Debt & Equity Securities
Beginning balance	$	159,190	$	151,311	$	101,051	$	98,664
Provision for (reversal of) credit losses	79,957		(75,205)		13,149		47,353
Ending balance	$	239,147	$	76,106	$	114,200	$	146,017

	Six Months Ended September 30, 2024				Six Months Ended September 30, 2023
(unaudited)	Alternative Assets		Debt & Equity Securities		Alternative Assets		Debt & Equity Securities
Beginning balance	$	168,089	$	135,485	$	32,632	$	96,497
Impact of the adoption of CECL	—		—		52,554		8,536
Provision for (reversal of) credit losses	71,058		(59,379)		29,014		40,984
Ending balance	$	239,147	$	76,106	$	114,200	$	146,017

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Credit Quality

The following table presents certain credit quality metrics (in thousands):

	September 30, 2024			March 31, 2024
Loans collateralized by alternative assets
Period-end loans	$	477,978		$	394,328
Nonperforming loans	$	172,337		$	126,607
Allowance for credit losses	$	239,147		$	168,089
Allowance/loans	50.03		%	42.63		%
Nonperforming loans/loans	36.06		%	32.11		%
Allowance to nonperforming loans	1.39x			1.33x
Loans collateralized by debt and equity securities
Period-end loans	$	97,961		$	165,430
Nonperforming loans(1)	$	73,678		$	120,845
Allowance for credit losses	$	76,106		$	135,485
Allowance/loans	77.69		%	81.90		%
Nonperforming loans/loans	75.21		%	73.05		%
Allowance to nonperforming loans(1)	1.03x			1.12x
Consolidated
Period-end loans	$	575,939		$	559,758
Nonperforming loans(1)	$	246,015		$	247,452
Allowance for credit losses	$	315,253		$	303,574
Allowance/loans	54.74		%	54.23		%
Nonperforming loans/loans	42.72		%	44.21		%
Allowance to nonperforming loans(2)	1.28x			1.23x

(1) The nonperforming loans collateralized by interests in GWG or the GWG Wind Down Trust was $145.9 million as of September 30, 2024 and March 31, 2024.

Customer ExAlt Trusts — Alternative Asset Portfolio

The portfolio of alternative assets held by the Customer ExAlt Trusts covers the following industry sectors and geographic regions for the periods shown below (dollar amounts in thousands):

	September 30, 2024				March 31, 2024
Industry Sector	Value		Percent of Total		Value		Percent of Total
Food and Staples Retailing	$	66,517	22.1	%	$	41,721	14.2	%
Software and Services	44,683		14.8		42,908		14.6
Diversified Financials	30,222		10.0		30,297		10.3
Utilities	29,693		9.9		28,768		9.8
Energy	17,151		5.7		19,930		6.8
Capital Goods	15,733		5.2		23,146		7.9
Semiconductors and Semiconductor Equipment	14,797		4.9		16,144		5.5
Health Care Equipment and Services	14,441		4.8		16,520		5.6
Other(1)	68,151		22.6		74,482		25.3
Total	$	301,388	100.0	%	$	293,916	100.0	%

(1) Industries in this category each comprise less than 5 percent. Semiconductors and Semiconductor Equipment and Health Care Equipment and Services is shown separately as it comprised greater than 5 percent in the prior period.

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	September 30, 2024				March 31, 2024
Geography	Value		Percent of Total		Value		Percent of Total
North America	$	150,864	50.1	%	$	164,205	55.9	%
South America	68,166		22.6		43,543		14.8
Asia	46,342		15.4		49,385		16.8
Europe	35,337		11.7		35,870		12.2
Africa	679		0.2		913		0.3
Total	$	301,388	100.0	%	$	293,916	100.0	%

Assets in the portfolio consist primarily of interests in alternative investment vehicles (also referred to as “funds”) that are managed by a group of U.S. and non-U.S. based alternative asset management firms that invest in a variety of financial markets and utilize a variety of investment strategies. The vintages of the funds in the portfolio as of September 30, 2024 ranged from 1993 to 2024.

As Ben Liquidity originates additional ExAlt Loans, it monitors the diversity of the portfolio of alternative assets held by the Customer ExAlt Trusts through the use of concentration guidelines. These guidelines were established, and are periodically updated, through a data driven approach based on asset type, fund manager, vintage of fund, industry segment and geography to manage portfolio risk. Ben Liquidity refers to these guidelines when making decisions about new financing opportunities; however, these guidelines do not restrict Ben Liquidity from entering into financing opportunities that would result in Ben Liquidity having exposure outside of its concentration guidelines. In addition, changes to the portfolio of alternative assets held by the Customer ExAlt Trusts may lag changes to the concentration guidelines. As such, the portfolio of alternative assets held by the Customer ExAlt Trusts may, at any given time, have exposures that are outside of Ben Liquidity’s concentration guidelines to reflect, among other things, attractive financing opportunities, limited availability of assets, or other business reasons. Given our operating history of relatively few transactions at significant NAV, the portfolio as of September 30, 2024 had exposure to certain alternative investment vehicles and investments in private companies that were outside of those guidelines.

Classifications by industry sector, exposure type and geography reflect classification of investments held in funds or companies held directly in the portfolio. Investments reflect the assets listed by the general partner of a fund as held by the fund and have a positive or negative NAV. Typical assets include portfolio companies, limited partnership interests in other funds, and net other assets, which are a fund’s cash and other current assets minus liabilities. The underlying interests in alternative assets are primarily limited partnership interests, and the limited partnership agreements governing those interests generally include restrictions on disclosure of fund-level information, including fund names and company names in the funds.

Industry sector is based on Global Industry Classification Standard (GICS®) Level 2 classification (also known as “Industry Group”) of companies held in the portfolio by funds or directly, subject to certain adjustments by us. “Other” classification is not a GICS® classification. “Other” classification reflects companies in the GICS® classification categories of N/A, Commercial & Professional Services, Consumer Durables & Apparel, Consumer Services, Food, Beverage & Tobacco, Household & Personal Products, Insurance, Materials, Media & Entertainment, Pharmaceuticals, Biotechnology & Life Sciences, Real Estate, Retailing, Technology Hardware & Equipment, Telecommunication Services, and Transportation. “N/A” includes investments assets that we have determined do not have an applicable GICS® Level 2 classification, such as Net Other Assets and investments that are not operating companies.

Geography reflects classifications determined by us based on each underlying investment.

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Cash Flow

The following table presents a summary of cash flows from operating, investing and financing activities for periods presented below (in thousands):

	Six Months Ended September 30,
	2024		2023
Net cash used in operating activities	$	(19,259)	$	(27,356)
Net cash provided by investing activities	11,164		25,740
Net cash provided by (used in) financing activities	4,914		(5,515)
Net decrease in cash and cash equivalents, and restricted cash	$	(3,181)	$	(7,131)

Six Months Ended September 30, 2024 and 2023

Net cash used in operating activities was $19.3 million for the six months ended September 30, 2024, largely driven by working capital requirements, including employee compensation and benefits and professional services. Net cash provided by investing activities was $11.2 million for the six months ended September 30, 2024, primarily driven by $12.5 million of distributions received as return of investments in alternative assets offset by $0.9 million in purchases of premises and equipment. Net cash provided by financing activities was $4.9 million for the six months ended September 30, 2024 resulting from proceeds received from issuance of Class A common shares under equity purchase agreement of approximately $2.6 million, a total of $3.5 million in proceeds from debt issuances, and $0.7 million from other common stock sales offset by approximately $1.6 million in payment of deferred issuance costs.

Net cash used in operating activities was $27.4 million for the six months ended September 30, 2023, largely driven by working capital requirements, including employee compensation and benefits and professional services. Net cash provided by investing activities was $25.7 million for the six months ended September 30, 2023, primarily driven by $26.3 million of distributions received as return of investments in alternative assets and $1.0 million in proceeds received from the sale of put options, slightly offset by $1.0 million in purchases of premises and equipment. Net cash used in financing activities was $5.5 million for the six months ended September 30, 2023, largely driven by debt payments, redemptions of preferred equity securities, payments of deferred equity costs, and the net impact of the de-SPAC merger transaction.

Liquidity and Capital Resources

As of September 30, 2024 and March 31, 2024, we had $4.5 million and $7.9 million, respectively, in combined available unrestricted cash and cash equivalents.

Our business is capital intensive, and while we generated net income of $54.1 million for the six months ended September 30, 2024, we have historically generated net losses and, in aggregate, these net losses have resulted in an accumulated deficit of $2.0 billion as of September 30, 2024.

We currently finance our business through a combination of cash distributions from the Customer ExAlt Trusts’ alternative asset portfolio, receipt of fees for performing trust services, dividends and interest on investments, debt offerings, and equity offerings, including under the SEPA, and sales of loans extended to the Customer ExAlt Trusts. We have traditionally used proceeds from these sources for cash obligations arising from our initial capitalization and formative transactions, funding liquidity transactions and potential unfunded capital commitments, working capital, debt service payments, and costs associated with potential future products. BFF is also required to maintain sufficient regulatory capital due to its Kansas charter, though such amount is not significant.

The ability of Ben, BCH, and our operating subsidiaries to access the cash distributions from the Customer ExAlt Trusts’ alternative asset portfolio is limited by the terms of the ExAlt Loans from Ben Liquidity to the Customer ExAlt Trusts. Historically, Ben Liquidity has elected to capitalize interest that accrues on the ExAlt Loans and only receives payments on the ExAlt Loans, at the discretion of the applicable trustee, following the Customer ExAlt Trusts’ receipt of cash distributions on their alternative asset portfolio. The trustee of the Customer ExAlt Trusts intends to make principal payments on the ExAlt Loans out of the proceeds of the distributions from the alternative assets. To the extent the Customer ExAlt Trusts do not receive distributions, such as if the managers of the professionally managed funds comprising the alternative assets determine to delay distributions or transactions that would result in the distributions to its limited partners, the Customer ExAlt Trusts’ ability to repay the ExAlt Loans, and therefore, Ben Liquidity’s ability to receive principal and interest payments in cash may be adversely impacted. During the six months ended September 30, 2024, largely as a result of macro-economic conditions, the Customer ExAlt Trusts continued to receive fewer distributions from their alternative assets than was originally

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anticipated, which adversely impacted the Customer ExAlt Trusts’ ability to repay the ExAlt Loans and our liquidity. Such conditions are expected to continue throughout the remainder of fiscal year 2025.

We expect that the Company will require additional capital to satisfy our obligations and fund our operations for the next twelve months, which will likely be achieved through the issuance of additional debt or equity, including through the SEPA. We continue to explore raising additional capital through a combination of debt financing and/or equity financing to supplement the Company’s capitalization and liquidity. If and as we raise additional funds by incurring loans or by issuing debt securities or preferred stock, these forms of financing have rights, preferences, and privileges senior to those of holders of our Common Stock. The availability and the terms under which we are able to raise additional capital could be disadvantageous, and the terms of debt financing and/or equity financing could place significant restrictions on our operations. Macroeconomic conditions and credit markets are also impacting the availability and cost of potential future debt financing. As we raise capital through the issuance of additional equity, such sales and issuance has and will continue to dilute the ownership interests of the existing holders of Common Stock. There can be no assurances that any additional debt and/or equity financing would be available to us on favorable terms or at all. We expect to continue to incur net losses, comprehensive losses and negative cash flows from operating activities until we meet a certain scale of operations.

As of the date of this Quarterly Report on Form 10-Q, we believe that our anticipated operating cash flows, proceeds on ExAlt Loan payments and fee income derived from distributions on investments held by the Customer ExAlt Trusts or other investments held by Ben, and additional sources of liquidity, are not sufficient to meet our contractual obligations over the next 12 months. While we may refinance some or all of the existing borrowings due prior to their maturity, with either our current lenders or other lenders, continue to seek opportunities to reduce corporate overhead, and intend to raise capital through equity or debt investments in us by third parties, including through the SEPA, we cannot conclude these are probable of being implemented or, if probable of being implemented, being in sufficient enough amounts to satisfy our contractual amounts as they presently exist that are coming due over the next 12 months as of the date of filing this Quarterly Report on Form 10-Q.

As further discussed in other sections of this Quarterly Report on Form 10-Q, on June 27, 2023, we entered into the SEPA with Yorkville, whereby we have the right, but not the obligation, to sell to Yorkville up to $250.0 million of shares of the Company’s Class A common stock. As of the date of this Quarterly Report on Form 10-Q, the Company had offered and sold 503,827 shares of Class A common stock to the Yorkville Investor pursuant to the SEPA for net proceeds of approximately $3.9 million. On June 20, 2024, the Company obtained stockholder approval pursuant to Nasdaq Listing Rule 5635(d) for the issuance of shares of Class A common stock to the Yorkville in excess of the Exchange Cap. As a result, the Company may issue up to an aggregate of approximately $246.1 million worth of shares of Class A common stock following registration with the SEC, with such registration statement declared effective by the SEC on November 12, 2024. The issuance of additional shares of Class A common stock under the SEPA will dilute the percentage ownership interest of all stockholders, could dilute the book value per share of the Class A common stock and will increase the number of the Company’s outstanding shares, which could cause the market price of our Class A common stock to decrease. Additionally, the decision regarding future sale of shares, including those under the SEPA, is subject to market conditions, such as trading volume, price of our Class A Common Stock and other factors beyond our control.

As further discussed in other sections of this Quarterly Report on Form 10-Q, on October 19, 2023, we entered into a three-year $25.0 million term loan with HH-BDH, which was fully drawn upon closing and, the proceeds of which were used to repay certain outstanding obligations, fund development of our products, and provide additional working capital. On August 16, 2024, an amendment to the term loan with HH-BDH was executed to add a subsequent term loan of $1.7 million, which was fully drawn upon the closing, and, the proceeds of which used to provide additional working capital. The HH-BDH Credit Agreement contains certain financial maintenance covenants, including a debt service coverage ratio and, beginning on December 31, 2024, a minimum liquidity requirement of $4.0 million, measured on the last day of each month. Additionally, on August 6, 2024, we entered into the Purchase Agreement with Yorkville, pursuant to which we agreed to issue and sell to Yorkville in connection with the issuance and sale by the Company of Convertible Debentures issuable in an aggregate principal amount of up to $4.0 million, which will be convertible into shares of the Company’s Class A common stock. Yorkville purchased and the Company issued $2,000,000 in aggregate principal amount of Convertible Debentures at the First Closing. Furthermore, the Company agreed to issue to the Yorkville Warrants to purchase up to 1,325,382 shares of Class A common stock at an exercise price of $2.63. At the First Closing, the Company issued a Yorkville Warrant to Yorkville to purchase up to 662,691 shares of Class A common stock. Additionally, on November 13, 2024, the Second Closing under the Purchase Agreement occurred whereby the Company issued an additional $2.0 million in aggregate principal amount of Convertible Debentures for proceeds of approximately $1.8 million and issued an additional Yorkville Warrant to purchase up to 662,691 shares of Class A common stock. The Convertible Debentures do not bear interest, subject to a potential increase to 18.0% per annum (or the maximum amount permitted by applicable law) upon the occurrence of certain events of default. The Convertible Debentures will mature on February 6, 2025 and will result in gross proceeds to the Company of approximately $3.6 million. The Convertible Debentures will be issued at an original issue discount of 10%. The

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Company will be required to make monthly cash payments of principal in the amount of $1.3 million (or such lesser amount as may then be outstanding) plus all accrued and unpaid interest as of such payment. Such payments will commence 30 days following the Second Closing and will continue on a monthly basis thereafter until the Convertible Debentures are repaid in full, subject to certain conditions as described in the Convertible Debentures. If any of these limitations of the HH-BDH Credit Agreement or the Purchase Agreement were to materially impede the flow of cash to us, our ability to service and repay our debt would be materially and adversely affected. Notwithstanding the receipt of the proceeds of the borrowings made under the HH-BDH Credit Agreement, as amended, and the Yorkville securities purchase agreement, to the extent the Company continues to receive cash distributions that are less than previously projected amounts from its alternative assets, the Company will require additional capital to fund and grow its operations.

We may not be able to refinance our indebtedness or obtain additional financing on terms favorable to the Company, or at all. To the extent that Ben or its subsidiaries raise additional capital through the future sale of equity or debt, the ownership interest of our existing equity holders may be diluted. The terms of these future equity or debt securities may include liquidation or other preferences that adversely affect the rights of our existing equity unitholders or involve negative covenants that restrict Ben’s ability to take specific actions, such as incurring additional debt or making additional investments in growing the operations of the Company. If Ben defaults on these borrowings, then the Company will be required to either (i) sell participation or other interests in our loans or other of our assets or (ii) to raise additional capital through the sale of equity and the ownership interest of our equity holders may be diluted. Further, given the number of shares of Class A common stock eligible for resale as a result of various registration statements we have filed with the SEC, our stock price may be further depressed as a result of significant sales of our securities, which could adversely affect our ability to raise equity capital on favorable terms or at all. In addition, because the $920.00 exercise price per share of the outstanding Warrants substantially exceeds the current trading price per share of our Class A common stock ($1.23 per share as of September 30, 2024), there is no assurance that the Warrants will be in the money prior to their expiration and it is unlikely that the Warrant holders will be able to exercise such Warrants in the near future, if at all. Accordingly, we are unlikely to receive any proceeds from the exercise of the Warrants in the near future, if at all, and the Warrants may not provide any additional capital. Similarly, the Yorkville Warrants have an exercise price ($2.63 per share) that exceeds the current trading price per share of our Class A common stock. In considering our capital requirements and sources of liquidity, we have not assumed or relied on the receipt of proceeds from the exercise of Warrants or Yorkville Warrants. As a result of the foregoing, we may require additional capital resources to execute strategic initiatives to grow our business.

We will utilize our cash flows toward our contractual obligations, to invest in our business, including new product initiatives and growth strategies, including any potential acquisitions, and, if determined by our Board, pay dividends to our equity holders, including guaranteed payments on certain of BCH’s preferred equity securities, and fund tax distributions for certain noncontrolling interest holders. Our ability to fund these capital needs will depend on our ongoing ability to generate cash from operations and via the capital markets. We are continuing to evaluate the impact of the ongoing Russia-Ukraine conflict, the Israel-Hamas conflict and other items, such as inflation and rising interest rates, and assess the impact on financial markets and our business. The Company’s future results may be adversely affected by slowdowns in fundraising activity and the pace of new liquidity transactions with our customers due to such events.

While we have concluded that there is substantial doubt about our ability to continue as a going concern, our financial statements have been prepared on a going concern basis, which contemplates the realization of assets and satisfaction of liabilities in the normal course of business. The accompanying consolidated financial statements do not include any adjustments related to the recoverability and classification of recorded asset amounts or the amounts and classification of liabilities that might result from the outcome of this uncertainty related to the Company’s ability to continue as a going concern.

Capital expenditures have historically not been material and we do not anticipate making material capital expenditures through the remainder of fiscal year 2025.

Recent Equity Issuances

On August 20, 2024, the Company entered into a subscription agreement with Cangany Capital Management, a limited liability company controlled by Peter T. Cangany, Jr., a member of the Company’s board of directors, pursuant to which Cangany Capital Management purchased 47,500 shares of Class A common stock at a price per share of $2.33.

On August 27, 2024, the Company entered into additional subscriptions agreement with Cangany Capital Management, pursuant to which Cangany Capital Management purchased 65,000 shares of Class A common stock at a price per share of $1.97.

Also on August 27, 2024, the Company entered into a subscription agreement with Thomas O. Hicks, a member of the Company’s board of directors, and a subscription agreement with CFH Ventures, Ltd., a limited partnership controlled by Mr.

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Hicks, pursuant to which each of Mr. Hicks and CFH Ventures, Ltd. purchased 50,000 shares of Class A common stock at a price per share of $1.97.

On September 6, 2024 and October 9, 2024, the Company issued 9,623 shares and 4,175 shares of Class A common stock of the Company to a consultant of the Company.

On September 11, 2024, the Company entered into a subscription agreement with Cangany Capital Management pursuant to which Cangany Capital Management purchased 150,000 shares of the Company’s Class A common stock at a price per share of $1.58.

On September 17, 2024, the Company entered into a subscription agreement with Mendota, pursuant to which the Company issued 201,482 shares in satisfaction of its outstanding obligations to the Vendor pursuant to that certain Consulting Agreement by and between Mendota and The Beneficient Company Group (USA), L.L.C. effective as of September 9, 2021, as amended from time to time thereafter, pursuant to which Mendota provided financial consulting services to the Company.

Amended Credit Agreements

On August 13, 2020, Ben, through its subsidiary Beneficient Capital Company II, L.L.C. (formerly known as Beneficient Capital Company, L.L.C.) (“BCC”), executed the Second Amended and Restated First Lien Credit Agreement (“First Lien Credit Agreement”) and the Second Amended and Restated Second Lien Credit Agreement (“Second Lien Credit Agreement”) collectively, (the “Second A&R Agreements” or the “HCLP Loan Agreement”) with its lender, HCLP Nominees, L.L.C (“HCLP”), to amend its First Lien Credit Agreement and Second Lien Credit Agreement dated September 1, 2017 and December 28, 2018, respectively. The Second A&R Agreements have been further amended from time to time to extend the maturity date and defer principal and interest payments, among other things. In connection with the amendments to the Second A&R Agreements, Ben agreed to pay extension fees on a percentage of the amount outstanding under the credit agreements as of the date of the respective amendment. The interest rate on each loan under the Second A&R Agreements is 1-month LIBOR plus 8.0%, with a maximum interest rate of 9.5%.

On February 15, 2023, Ben executed those certain Amendment No. 5 to Second Amended and Restated Credit Agreement and Consent and Amendment No. 5 to Second Amended and Restated Second Lien Credit Agreement with HCLP, pursuant to which, as required by the prior amendment, certain Ben subsidiaries became subsidiary guarantors and entered into those certain Amended and Restated Security and Pledge Agreement (First Lien) and Amended and Restated Security and Pledge Agreement (Second Lien), that certain first lien Guaranty and that certain second lien Guaranty.

On June 5, 2023, BCH, entered into those certain Consent and Amendment No. 6 to Second Amended and Restated Credit Agreement, which amended the First Lien Credit Agreement, and Consent and Amendment No. 6 to Second Amended and Restated Second Lien Credit Agreement (collectively, the “Sixth Amendments”), which amended the Second Lien Credit Agreement, each among BCH, HCLP and the other parties thereto. Among other things, the Sixth Amendments (i) allowed for the consummation of the Transactions pursuant to the Business Combination Agreement, and effective as June 7, 2023, (ii) amended the definition of “Change of Control” (as defined therein), and (iii) provided that Beneficient will be the “Parent” thereunder.

On July 12, 2023, BCH, entered into (a) that certain Amendment No. 7 to the First Lien Amendment, which amended the First Lien Credit Agreement, and (b) that certain Amendment No. 7 to Second Lien Amendment (together with the First Lien Amendment, the “Seventh Amendments”), which amended the Second Lien Credit Agreement, each among BCH, HCLP and the other parties thereto. Among other things, the Seventh Amendments (i) modified the interest rate to a fixed rate of 9.5% (ii) extended the maturity dates of the First Lien Amendment and the Second Lien Amendment to September 15, 2024 and September 15, 2027, respectively, and (iii) agreed to installment payments on the First Lien Amendment of $5.0 million on each of March 29th, June 28th, September 29th, and December 29th of each year for so long as the obligations remain outstanding, and so long as such payments do not cause a going concern. No payments will be made on the Second Lien Amendment until the obligations on the First Lien Amendment have been fully satisfied. Effective on July 31, 2024, the maturity date of the First Lien Credit Agreement was extended from September 15, 2024 to February 1, 2025, and certain mandatory prepayment obligations thereunder were waived by HCLP until February 1, 2025.

As part of the Seventh Amendments, Ben agreed to pay fees totaling approximately $0.1 million. During the three and six months ended September 30, 2024 and 2023, no deferred financing costs were paid to HCLP. No payments of principal or interest have been made on the First Lien or Second Lien Credit Agreements since the interest payment made in March 2023. Accrued interest on the First Lien or Second Lien Credit Agreements of $14.1 million as of September 30, 2024 and $9.5 million as of March 31, 2024 is included in other liabilities in the consolidated statement of financial condition. Through September 30, 2024, all required principal and interest payments due under the Second A&R Agreements have been paid.

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In connection with the Second A&R Agreements, Beneficient Holdings, Inc. (“BHI”), which is owned by The Highland Business Holdings Trust, of which Mr. Heppner is the trustee, and Mr. Heppner and his family are the beneficiaries, owns a majority of the BCH Class S Ordinary Units, Class S Preferred Units of BCH (“BCH Class S Preferred Units”), BCH Preferred A.0, Preferred Series A Subclass 1 Unit Accounts of BCH (“BCH Preferred A.1”), and Subclass 1 FLP Unit Accounts of BCH (“BCH FLP-1 Unit Accounts”), and Subclass 3 FLP Unit Accounts of BCH (“BCH FLP-3 Unit Accounts”), will grant certain tax-related concessions to HCLP as may be mutually agreed upon between the parties. In exchange for the tax-related concessions, 5% of BCH Preferred A.1 held by BHI, which will be held by HCLP, may convert to BCH Preferred A.0. In addition, recipients of a grant of BCH Preferred A.1 from BHI will have the right to put an amount of BCH Preferred A.1 to Ben equal to any associated tax liability stemming from any such grant; provided that the aggregated associated tax liability shall not relate to more than $30.0 million of grants of BCH Preferred A.1 from BHI. No such liability existed as of September 30, 2024 or March 31, 2024.

The Second A&R Agreements and ancillary documents contain covenants that (i) prevent Ben from issuing any securities senior to the BCH Preferred A.0 or BCH Preferred A.1; (ii) prevent Ben from incurring additional debt or borrowings greater than $10.0 million, other than trade payable, while the loans are outstanding; and (iii) prevent, without the written consent of HCLP, GWG from selling, transferring, or otherwise disposing of any BCH Preferred A.1 held as of May 15, 2020, other than to its subsidiary GWG DLP Funding V, LLC. GWG no longer holds any BCH Preferred A.1 Unit Accounts. Ben obtained consents for the Second A&R Agreements from HCLP in connection with the HH-BDH Credit Agreement (discussed below).

Ben may be required to pay an additional extension fee to extend the maturity dates of the Second A&R Agreements beyond February 1, 2025 and September 15, 2027.

Recent Debt Financing

As discussed above, the Loan Parties are parties to the HH-BDH Credit Agreement. HH-BDH’s sole member is Hicks Holdings. The managing member of Hicks Holdings is Mr. Thomas O. Hicks, a member of the Company’s Board. HH-BDH will receive customary fees and expenses in its capacity as a lender and as the administrative agent under the HH-BDH Credit Agreement, as further described below. Hicks Holdings and Mr. Hicks may be deemed to have a direct or indirect material financial interest with respect to the transactions contemplated by the HH-BDH Credit Agreement, as described below. HH-BDH funded the amounts under the HH-BDH Credit Agreement from the Financing.

The HH-BDH Credit Agreement provides for a three-year Term Loan in the aggregate principal amount of $25.0 million, which was fully drawn on closing.

Borrowings under the HH-BDH Credit Agreement bear interest, at the Company’s option, calculated according to a base rate, adjusted term SOFR rate, or adjusted daily simple SOFR rate, plus an applicable margin, subject to a Maximum Rate determined by applicable law in the State of New York. The Company elected the adjusted daily simple SOFR rate with a margin of 6.5% for the first two years and 5.5% for the third year. Accrued and unpaid interest is payable monthly, upon prepayment, and at maturity. The Term Loan will mature on October 19, 2026, and all outstanding principal amounts and accrued and unpaid interest thereon shall be due and payable on such date.

On August 16, 2024, the Borrower, the Guarantor and HH-BDH entered into the Amendment, to, among other things, (i) add a subsequent term loan of up to $1,675,000, which was fully drawn upon closing of the Amendment, and (ii) waive certain events of default resulting from the occurrence of the Acknowledged Defaults, provided that in the case of the expense reimbursement default, the Borrower must cure the expense reimbursement default upon the earlier of (x) November 1, 2024 and (y) two business days following the effectiveness of Company’s registration statement for resale of the shares of Class A common stock, underlying the convertible debentures and warrants issuable pursuant to the Purchase Agreement.

The Amended Credit Agreement also requires the Borrower to prepay the outstanding principal balance of the Loans in the amount of $200 thousand, $200 thousand, $200 thousand, $200 thousand and $875 thousand on each of September 7, 2024, October 7, 2024, November 7, 2024, December 7, 2024 and December 31, 2024, respectively. Furthermore, on each Required Payment Date, the Borrower shall prepay the outstanding principal balance of the Loans by an amount equal to the lesser of (a) the Total Portfolio Net Receipts for the most recently ended period beginning on the 16th day of each month and ending on the 15th day of the immediately following month, and (b) as of each Required Payment Date, an amount equal to the excess, if any, of (x)(i) the number of Required Payment Dates occurring on or prior to such Required Payment Date, multiplied by (ii) $500,000, minus (y) the amount of all Excess Payments made prior to such Required Payment Date. Additionally, the Amended Credit Agreement requires the Borrower to make certain minimum monthly payments to prepay the balance of the Loans.

The Amended Credit Agreement also includes, among other things, (i) updates to conditions precedent for the Lender to make the subsequent term loan to the Borrower, (ii) updates to certain representations and warranties, (iii) additional certain

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affirmative and negative covenants including a minimum liquidity financial covenant of $4.0 million and (iv) additional events that the occurrence of which would constitute an Event of Default (as defined in the Amended Credit Agreement). Except as modified by the Amendment, the terms of the HH-BDH Credit Agreement remain the same.

Inflation

Changes in inflation do not necessarily correlate with changes in interest rates. We presently do not foresee any material impact of inflation on our results of operations in the periods presented in our consolidated financial statements.

Unfunded Capital Commitments

The Customer ExAlt Trusts had $47.2 million and $47.8 million of potential gross capital commitments as of September 30, 2024, and March 31, 2024, respectively, representing potential limited partner capital funding commitments on the interests in alternative asset funds. The trust holding the interest in the limited partnership for the alternative asset fund is required to fund these limited partner capital commitments per the terms of the limited partnership agreement. Capital funding commitment reserves are maintained by certain of the associated trusts within the ExAlt PlanTM or affiliated entities. To the extent that the associated Customer ExAlt Trust or their affiliated entities cannot pay the capital funding commitment, Ben is obligated to lend sufficient funds to meet the commitment. Any amounts advanced by Ben to the Customer ExAlt Trusts for these limited partner capital funding commitments above the associated capital funding commitment reserves, if any, held by the associated Customer ExAlt Trusts or their affiliated entities are added to the ExAlt Loan balance between Ben and the Customer ExAlt Trusts and are expected to be recouped through the cash distributions from the alternative asset fund that collateralizes such ExAlt Loan.

Capital commitments generally originate from limited partner agreements having fixed or expiring expiration dates. The total limited partner capital funding commitment amounts may not necessarily represent future cash requirements. The majority, or 90%, of our portfolio with an unfunded commitment has a vintage of 2012 and prior. As the vintages continue to age, a cash requirement becomes less likely. We consider the creditworthiness of the investment on a case-by-case basis. As of September 30, 2024 and March 31, 2024, there were no reserves for losses on unused commitments to fund potential limited partner capital funding commitments.

Dependence on Related Party Transactions

In the ordinary course of business, we depend on certain transactions with related parties. For example, as discussed above, Ben, through its subsidiaries, is a party to the Second A&R Agreements with HCLP. HCLP is an indirect subsidiary of Highland Consolidated, L.P. Ben’s CEO is a beneficiary and trust investment advisor of the trusts that control, and are the partners of, Highland Consolidated, L.P. As of September 30, 2024, we had approximately $94.6 million (including an unamortized premium thereon) of debt outstanding derived from BCH’s secured loans with HCLP. In addition, unpaid interest of $14.1 million was accrued and owed as of September 30, 2024.

Additionally, effective October 19, 2023, Ben, through its subsidiaries, is a party to the $25.0 million HH-BDH Credit Agreement with HH-BDH. HH-BDH’s sole member is Hicks Holdings whose managing member is a member of our Board. On August 16, 2024, Amendment to the HH-BDH Credit Agreement was executed to add a subsequent term loan of $1.7 million. As of September 30, 2024, we had approximately $25.2 million (including an unamortized discount thereon) of debt outstanding derived from the term loan with HH-BDH.

Furthermore, Ben and BCH are parties to a Services Agreement with Bradley Capital Company, L.L.C. (“Bradley Capital”) and Beneficient Management Counselors, L.L.C. effective June 1, 2017. Effective as of January 1, 2022, the parties entered into the First Amended and Restated Services Agreement and effective June 7, 2023, the parties entered into the Second Amended and Restated Services Agreement (the “Services Agreement”). Bradley Capital is an entity associated with Ben’s CEO. During the three months ended September 30, 2024 and 2023, Ben recognized expenses totaling $0.7 million and $0.7 million, respectively, related to this services agreement. During the six months ended September 30, 2024 and 2023, Ben recognized expenses totaling $1.4 million and $1.4 million, respectively, related to this services agreement. As of September 30, 2024 and March 31, 2024, $3.1 million and $2.7 million, respectively, was owed to Bradley Capital related to the Services Agreement.

As reported on a Schedule 13G/A filed by the GWG Wind Down Trust on October 8, 2024, the GWG Wind Down Trust held approximately 7.6% of the Class A common stock, down from approximately 45% of the Class A common stock at the time our June 30, 2024 Form 10-Q was filed on August 14, 2024.

Critical Accounting Estimates

We have identified certain accounting estimates that involve a significant level of estimation uncertainty and have had or are reasonably likely to have a material impact on our financial condition or results of operations. Actual amounts and values as

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of the balance sheet dates may be materially different than the amounts and values reported due to the inherent uncertainty in the estimation process. Also, future amounts and values could differ materially from those estimates due to changes in values and circumstances after the balance sheet date. The critical accounting estimates that we believe to be the most critical in preparing our consolidated financial statements relate to the fair value determination of investments in alternative assets held by the Customer ExAlt Trusts, the determination of the allowance for credit losses, principally relevant as an input to the allocation of income (loss) to Ben’s and BCH’s equity holders, the allocation of income (loss) to Ben’s and BCH’s equity holders, evaluation of potential loss contingencies principally related to ongoing legal matters and evaluation of potential impairment of goodwill and other intangibles. Since March 31, 2024, there have been no changes in critical accounting estimates, other than those described below, as further described under “Critical Accounting Estimates” in our Annual Report.

Goodwill and Identifiable Intangible Assets

Goodwill is tested for impairment between annual tests whenever events or circumstances make it more likely than not that the fair value of a reporting unit has fallen below its carrying value. Subsequent to the public listing on June 8, 2023, and through the date of this report, the Company has experienced a significant sustained decline in the price of its Class A common stock and its related market capitalization. We believe that these factors indicated that the fair value of our reporting units had more likely than not fallen below their carrying values as of each quarter end starting with the quarter ending as of June 30, 2023. As such, management performed an interim impairment test of goodwill as of each quarter end starting with June 30, 2023 through the most recent quarter end of September 30, 2024. For the quarter ended September 30, 2023, this resulted in $306.7 million of non-cash goodwill impairment at the Ben Liquidity and Ben Custody reporting units. For the quarter ended September 30, 2024, this resulted in $0.3 million of non-cash goodwill impairment at the Ben Custody reporting unit. For year-to-date September 30, 2023, non-cash goodwill impairment of $1.4 billion was recorded at the Ben Liquidity and Ben Custody reporting units. For year-to-date September 30, 2024, non-cash goodwill impairment of $3.7 million was recorded at the Ben Custody and Ben Markets reporting units.

For each goodwill impairment test, the Company computed the fair value of each reporting unit by computing the overall enterprise value of the Company by valuing its various equity instruments, primarily based on the Class A common stock price per share. The overall enterprise value was allocated to each reporting unit using the discounted cash flow method to estimate the relative value of each reporting unit based on their future cash flows using a multi-year forecast, and a terminal value calculated using a long-term growth rate that was informed based on our industry, analyst reports of a public company peer set, current and expected future economic conditions and management expectations. The discount rate used to discount these future cash flows was determined using a capital asset pricing model based on the market value of equity of a public company peer set, adjusted for risk characteristics and expectations specific to the reporting unit, combined with an assessment of the cost of debt.

The discount rates used for each reporting unit in the June 30, 2023 impairment analysis ranged from 24.8% to 25.6% and in the September 30, 2023 impairment analysis ranged from 25.3% to 26.2%. The Company applied a terminal year long-term growth rate of 3.0% for each reporting unit in both the June 30, 2023 and September 30, 2023 impairment analyses.

The discount rates used for the relevant reporting units in the June 30, 2024 impairment analysis ranged from 28.0% to 29.3% and in the September 30, 2024 impairment analysis from 28.0% to 29.3%. The Company applied a terminal year long-term growth rate of 3.0% for each relevant reporting unit in both the June 30, 2024 and September 30, 2024 impairment analyses. Remaining goodwill of $9.9 million at September 30, 2024 relates to the Ben Custody and Ben Markets reporting units. Subsequent to the September 30, 2024 impairment, there was no excess of reporting unit fair value over carrying value for Ben Custody and approximately $0.4 million of reporting unit fair value over carrying value for Ben Markets.

Management continues to closely monitor the results of the reporting units and comparisons to the key assumptions used in our fair value estimate, in addition to operational initiatives and macroeconomic conditions, which may impact the results of the reporting units. The performance of the reporting units and the potential for future developments in the global economic environment, introduces a heightened risk for additional impairment. If management determines that the reporting units, specifically Ben Custody and Ben Markets, cannot achieve the growth assumptions noted above, or if there is continued deterioration in the market due to macroeconomic conditions, some or all of the remaining recorded goodwill could be subject to further impairment. While management cannot predict if or when additional future goodwill impairments may occur, additional goodwill impairments could have material adverse effects on the Company’s financial condition, operating income, net assets, and/or the Company’s cost of, or access to, capital.

There could be further significant sustained declines in the Company’s Common Stock, which may result in a recognition of further goodwill impairment that could be material to the consolidated financial statements.

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ITEM 3 — QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Not applicable.

ITEM 4 — CONTROLS AND PROCEDURES

Evaluation of Disclosure Controls and Procedures

We maintain disclosure controls and procedures, as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended, (the “Exchange Act”) that are designed to provide reasonable assurance that information required to be disclosed by us in the reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms and to ensure that information required to be disclosed is accumulated and communicated to our management, including our Principal Executive Officer and Principal Financial Officer, as appropriate, to allow for timely decisions regarding required disclosure.

Our management, with the participation of our Principal Executive Officer and Principal Financial Officer, evaluated the effectiveness of our disclosure controls and procedures as of September 30, 2024, the end of the period covered by this Quarterly Report. Based on this evaluation, our Principal Executive Officer and Principal Financial Officer concluded that our disclosure controls and procedures were effective as of September 30, 2024.

Changes in Internal Control over Financial Reporting

There were no changes in our internal control over financial reporting, as such term is defined in Rule 13a-15(f) and 15d-15(f) under the Exchange Act, during the six months ended September 30, 2024, that materially affected, or are reasonable likely to materially affect, our internal control over financial reporting.

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PART II. OTHER INFORMATION

ITEM 1 — LEGAL PROCEEDINGS

There have been no material changes in the legal proceedings previously disclosed in response to Part I, Item 3. “Legal Proceedings” set forth in our Annual Report on Form 10-K for the year ended March 31, 2024 filed with the SEC on July 9, 2024, except as set forth below.

On July 29, 2024, the Texas District Court entered an order vacating the previously disclosed arbitration award against the Company in the aggregate amount of approximately $55.3 million in compensatory damages, including pre-judgment and post-judgement interest. As previously disclosed, on December 16, 2022, a former member (the “Claimant”) of the board of directors of Beneficient Management, L.L.C. initiated a private arbitration in the International Court of Arbitration of the International Chamber of Commerce, challenging the termination of certain equity awards under two incentive plans by the administrator of the incentive plans. On April 23, 2024, the sole arbitrator held that in terminating the Claimant’s equity awards, the Company had breached its contractual obligations, and as a result, awarded the Claimant $55.3 million in compensatory damages, including pre-judgment and post-judgement interest (the “Arbitration Award”). The order vacated the Arbitration Award in its entirety. The Company was also asked to pay arbitration-related costs in the amount of approximately $0.1 million.

The Texas District Court directed the parties to file motions requesting any further relief that may be available within twenty days of the order. On August 2, 2024, the Claimant filed an appeal to challenge the order vacating the Arbitration Award in the Texas Fifth Court of Appeals. The Company intends to vigorously defend itself in connection with the appeal.

ITEM 1A — RISK FACTORS

There have been no material changes in the risk factors previously disclosed in response to Part I, Item 1A. “Risk Factors” set forth in the Company’s Annual Report on Form 10-K for the year ended March 31, 2024 filed with the SEC on July 9, 2024, except as set forth below.

We have been notified by Nasdaq of our failure to comply with certain continued listing requirements and, if we are unable to regain compliance with all applicable continued listing requirements and standards of Nasdaq, our Class A common stock could be delisted from Nasdaq.

Our Class A common stock is listed on the Nasdaq Capital Market. To maintain our listing, we are required to satisfy continued listing requirements. There can be no assurance we will continue satisfying such continued listing requirements, which include that the closing bid price of our common stock be at least $1.00 per share, that we have at least 300 round lot holders and at least 500,000 publicly held shares, that the market value of our publicly held securities be at least $1 million, and that we meet one of these standards: stockholders’ equity of at least $2.5 million; market value of listed securities of at least $35 million; or net income from continuing operations of $500,000 in the latest fiscal year or in two of the last fiscal years.

On November 28, 2023, we received a letter from the Staff of Nasdaq (the “Nasdaq Staff”) notifying the Company that, for the previous 30 consecutive business days, the closing bid price for the Company’s Class A common stock had been below the minimum $1.00 per share required for continued listing on the Nasdaq Global Market under Nasdaq Listing Rule 5450(a)(1) (the “Bid Price Requirement”). In accordance with Nasdaq Listing Rule 5810(c)(3)(A), the Company was provided an initial period of 180 calendar days, or until May 28, 2024, to regain compliance with the Bid Price Requirement.

Effective February 26, 2024, the Company transferred from the Nasdaq Global Market to the Nasdaq Capital Market. On March 22, 2024, the Company received a letter from Nasdaq advising that the Nasdaq Staff had determined that, as of March 21, 2024, the Company’s Class A common stock had a closing bid price of $0.10 or less for at least ten consecutive trading days. Accordingly, the Company was subject to the provisions contemplated under Nasdaq Listing Rule 5810(c)(3)(A)(iii). As a result, the Nasdaq Staff determined to delist the Company’s securities from The Nasdaq Capital Market, unless the Company timely requests a hearing before the Nasdaq Hearings Panel (the “Panel”) pursuant to the procedures set forth in the Nasdaq Listing Rule 5800 Series. The Company requested a hearing, and such hearing was scheduled for May 21, 2024.

In order to regain compliance with the Bid Price Requirement, on April 18, 2024, the Company effected a reverse stock split of its Class A common stock and Class B common stock at a ratio of eighty (80) to one (1) and a simultaneous proportionate reduction in the authorized shares of each class of its Class A common stock and Class B common stock as required by NRS Section 78.207. On May 2, 2024, the Company received noticed from the Nasdaq Staff that the Company had regained compliance with the Bid Price Requirement, and that therefore, the Company was therefore in compliance with the listing requirements of the Nasdaq Capital Market. As a result, the Company’s hearing before the Panel was cancelled.

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On July 16, 2024, the Company received a notice from the Nasdaq staff indicating that it is no longer in compliance with the minimum stockholders’ equity requirement (the “Minimum Stockholders’ Equity Requirement”) for continued listing on the Nasdaq Capital Market pursuant to Nasdaq Listing Rule 5550(b)(1) (the “Stockholders’ Equity Notice”). Nasdaq Listing Rule 5550(b)(1) requires listed companies to maintain stockholders’ equity of at least $2,500,000 or meet the alternative compliance standards relating to the market value of listed securities or net income from continuing operations, which the Company does not currently meet.

Pursuant to the Stockholders’ Equity Notice and the Listing Rules of Nasdaq, Nasdaq provided the Company with 45 calendar days, or until August 30, 2024, to submit a plan to regain compliance with the Minimum Stockholders’ Equity Requirement. If the Company’s plan to regain compliance is accepted, the Staff can grant an extension of up to 180 calendar days from the date of the Stockholders’ Equity Notice to evidence compliance. If the Company’s plan to regain compliance is not accepted, or if it is accepted and the Company does not regain compliance in the timeframe required by Nasdaq, the Nasdaq Staff could provide notice that the Company’s shares of Class A common stock are subject to delisting. In such an event, the Company would have the right to request a hearing before the Panel. The hearing request would automatically stay any suspension or delisting action pending the completion of the hearings process. The Stockholders’ Equity Notice had no immediate impact on the listing of the Class A common stock, which will continue to be listed and traded on Nasdaq under the symbol “BENF,” subject to the Company’s compliance with the other listing requirements of Nasdaq.

The Company timely submitted a plan to regain compliance with the Minimum Stockholders’ Equity Requirement. Although the Company intends to use all reasonable efforts to achieve compliance with the Minimum Stockholders’ Equity Requirement, there can be no assurance that the Company will be able to regain compliance with the Minimum Stockholders’ Equity

Additionally, on July 23, 2024, the Company notified Nasdaq that, following the resignations of Emily B. Hill and Dennis P. Lockhart from the Company’s Board and Audit Committee of the Board (the “Audit Committee”). On September 30, 2024, Patrick J. Donegan was appointed to the Board as an independent director and a member of the Audit, Products and Related Party Transactions, Credit and Enterprise Risk committees of the Board. The Company currently has a vacancy on the Audit Committee and intends to rely on the cure period set forth in the Nasdaq Listing Rule 5605 while it recruits a new Audit Committee member.

On July 25, 2024, the Company received a notice from Nasdaq (the “Audit Committee Notice”) confirming that the Company was no longer in compliance with Nasdaq’s audit committee composition requirements as set forth in Nasdaq Listing Rule 5605, which requires that the audit committee of a listed company be comprised of at least three “independent directors” (as defined in Nasdaq Listing Rule 5605(a)(2)). Pursuant to Nasdaq Listing Rule 5605(c)(4), the Company intends to rely on the cure period to reestablish compliance with Nasdaq Listing Rule 5605. The cure period is generally defined as until the earlier of the Company’s next annual meeting of stockholders or July 21, 2025. If the Company’s next annual meeting of stockholders is held before January 15, 2025, then the Company must evidence compliance no later than January 15, 2025. The Board is in the process of identifying and selecting a new member of the Board who qualifies as “independent” and meets the audit committee criteria set forth in Nasdaq Listing Rule 5605. The Board intends to comply fully with Nasdaq audit committee requirements by or before the end of the cure period described above, but there can be no assurance that the Company will be able to regain compliance with Nasdaq Listing Rule 5605 or that the Company will otherwise be in compliance with other applicable Nasdaq listing criteria. The Audit Committee Notice had no immediate impact on the listing of the Class A common stock, which will continue to be listed and traded on Nasdaq under the symbol “BENF,” subject to the Company’s compliance with the other listing requirements of Nasdaq..

If we are delisted from Nasdaq, our securities may be eligible for trading on an over-the-counter market. If we are not able to obtain a listing on another stock exchange or quotation service for our securities, it may be extremely difficult or impossible for stockholders to sell their shares. If we are delisted from Nasdaq, but obtain a substitute listing for our securities, it will likely be on a market with less liquidity, and therefore experience potentially more price volatility than experienced on Nasdaq. Stockholders may not be able to sell their securities on any such substitute market in the quantities, at the times, or at the prices that could potentially be available on a more liquid trading market. As a result of these factors, if our securities are delisted from Nasdaq, the value and liquidity of our securities would likely be significantly adversely affected. A delisting of our securities from Nasdaq could also adversely affect our ability to obtain financing for our operations and/or result in a loss of confidence by investors, employees and/or business partners.

In the event of a delisting, we can provide no assurance that any action taken by us to restore compliance with listing requirements would allow our securities to become listed again, stabilize the market price or improve the liquidity of our securities, prevent our securities from dropping below the Nasdaq minimum bid price requirement or prevent future non-compliance with the listing requirements of Nasdaq. There can be no assurance that we will maintain the compliance of our securities with the Nasdaq listing requirements.

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Decisions made by an individual trustee could materially affect our custody business and the assets held in certain of our trusts.

Historically, we have been dependent upon the services of John Stahl, an individual who, prior to our receipt of the operating TEFFI charter in Kansas, served as trustee of most of our Customer ExAlt Trusts, excluding the custody trusts that are Delaware statutory trusts, which are trusts with the Delaware Trust Company serving as trustee. Mr. Stahl continued to serve as trustee of the Customer ExAlt Trusts established in our formative transactions until July 7, 2024, at which point BFF began the process of accepting such trusts as successor trustee. BFF completed the trust acceptance process on September 19, 2024 and November 1, 2024 and, as such, currently serves as successor trustee of all of the Customer ExAlt Trusts, excluding the custody trusts that are Delaware statutory trusts, for which the Delaware Trust Company continues to serve as trustee. Previously, we replaced Mr. Stahl as trustee on certain other trusts, and BFF was appointed as trustee of the Customer ExAlt Trusts following the receipt of BFF’s TEFFI charter. Accordingly, BFF will be, subject to fiduciary duties and other restrictions included in our trust agreements and as a matter of law, as a trustee, BFF will have broad discretion and authority to take actions permitted by the trust agreements and applicable law.

Accordingly, decisions made by BFF could materially affect our business and the assets held in such trusts. It is impossible to determine how these decisions may affect the value of the Company and therefore our securities.

The Company is currently involved in legal proceedings and may be a party to additional claims and litigation in the future.

On February 18, 2022, Paul Capital Advisors (“PCA”) filed a lawsuit against MHT Financial, L.L.C. (“MHT”), BCG, and two trust advisors (the “Trust Advisors”), Murray Holland (part-owner of MHT and former Chairman, President and CEO of GWG) and James Turvey (an employee of BCG) in the Delaware Court of Chancery (the “Court” or the “Court of Chancery”). While BCG was named as a defendant, PCA did not assert claims against or seek relief from BCG but instead asserted one cause of action that only sought the removal and replacement of the Trust Advisors. The lawsuit concerns a set of transactions that utilized a trust structure with MHT as the sole beneficiary. Through this trust structure, PCA sold illiquid investments with a net asset value of approximately $500 million to MHT in exchange for a contractual right from MHT to receive proceeds derived from an auction of BCG securities held in certain trusts (the “Trusts”). Pursuant to a separate contingent value right (“CVR”) contract (the “CVR Contract”) between BCG, affiliates of BCG (collectively, the “BEN CVR Parties”), and MHT, BCG agreed to undertake certain obligations if consideration from the auction of the BCG securities held in the Trusts resulted in an amount less than the net asset value of the illiquid investments MHT purchased from PCA (a “Shortfall ET Amount”), and other precedent conditions occurred. These obligations included, among other things, making quarterly distributions of “Available Cash” to the Trusts until the distributions equaled the Shortfall ET Amount.

Ultimately, GWG won the auction of the Company securities with a winning bid comprised of cash, GWG common stock, and L Bonds. While the cash consideration has been paid to PCA, the GWG stock and L Bonds remain in the Trusts until they are liquidated. The original complaint asserted one cause of action: that the Trust Advisors had breached their purported fiduciary duties to PCA. The sole relief PCA sought was the removal and replacement of the Trust Advisors. On March 14, 2022, the defendants moved to dismiss the original complaint, disputing in their briefs filed on March 28, 2022 that PCA is a beneficiary of any kind to the Trusts, and therefore not owed fiduciary duties by the Trust Advisors, and that PCA has no right to remove and replace the Trust Advisors. Further, the Company sought to dismiss the original complaint on the grounds that no claims were asserted against the Company and no relief was sought from it.

On April 18, 2022, PCA amended its original complaint. The amended complaint asserted six new causes of action arising out of the same set of transactions, including: (1) purported breaches of contract against BCG, MHT, and the Trust Advisors, including a purported breach of the CVR Contract; (2) purported fraud by the Company and MHT pertaining to the execution of the Second Amendment to the CVR Contract; and (3) promissory estoppel against MHT, the Company, and Murray Holland in his capacity as a Trust Advisor. The amended complaint also sought additional relief in the form of (1) damages “in an amount to be proven at trial” and (2) an order granting rescission of an amendment to the CVR Contract or a holding declaring it invalid. On April 18, 2022, Mr. Holland and Mr. Turvey resigned as Trust Advisors to the Trusts that were the subject matter of the complaint. On April 19, 2022, MHT, as the sole beneficiary of the Trusts, appointed Dr. John Stahl as the new Trust Advisor. On April 28, 2022, the Court found that PCA’s original cause of action to remove Mr. Holland and Mr. Turvey as Trust Advisors was moot. On May 6, 2022, PCA amended its complaint again to request that Dr. Stahl be removed as Trust Advisor.

Additionally, while the second amended complaint maintains the prior causes of action, it retracts PCA’s prior, false statements claiming that the Company had not supplied PCA’s representative the relevant documents before he signed an amendment to the CVR Contract. PCA still, however, requests that the Court rescind this amendment which memorialized the parties’ prior agreements regarding certain definitions negotiated and approved by PCA and its counsel. On August 17, 2022, the Court issued a memorandum opinion that dismissed count I of PCA’s complaint, which requested Dr. Stahl’s removal, after finding that PCA is not a beneficiary of the Trusts and, therefore, lacks standing to request the removal of any

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Trust Advisor. Additionally, because the Court held that PCA is not a beneficiary of the Trusts, the parties agreed that count II, which alleged breach of fiduciary duty against the Trust Advisors, should also be dismissed. On October 3, 2022, the Court entered an order dismissing count I of PCA’s complaint in accordance with its memorandum opinion and count II in light of the parties’ agreement that it should also be dismissed.

On November 1, 2022, defendants filed their opening briefs in support of their motions to dismiss the remaining counts. On December 20, 2022, PCA filed its answering brief in opposition to defendants’ motions to dismiss the remaining counts. On January 24, 2023, defendants filed their reply briefs. Oral argument on the motions to dismiss was held on May 8, 2023. On August 29, 2023, the Court issued a letter opinion that denied defendants’ motions to dismiss with respect to most of the remaining counts, explaining that the Court was unwilling to determine the parties’ rights under the various agreements at the pleadings stage and that discovery may make these issues ripe for summary judgment. The Court did, however, grant defendants’ motions to dismiss as to one of PCA’s promissory estoppel claims and its claim for equitable fraud. On October 25, 2023, defendants filed their respective answers to PCA’s second amended complaint.

On November 9, 2023, defendants filed a motion to bifurcate, requesting that the Court of Chancery first resolve the threshold issue of PCA’s standing under the CVR Contract and Exchange Trust Agreements before proceeding on the merits. On November 29, 2023, PCA filed its opposition to defendants’ motion to bifurcate, and on December 8, 2023, defendants filed their reply brief. On June 24, 2024, the Court of Chancery heard oral argument and issued its ruling granting defendants’ motion to bifurcate. In its ruling, the Court of Chancery ordered the parties to promptly conduct limited standing-related discovery to allow final resolution of the standing issue on summary judgment by January 2025.

This litigation can subject us to substantial costs and divert resources and the attention of management from our business. If these claims are successful, our business could be seriously harmed. Even if the claims do not result in protracted litigation or are resolved in our favor, the time and resources needed to resolve such claims could divert our management’s resources and adversely affect our business.

The CVR Contract is an agreement between the BEN CVR Parties, and MHT, which was dated as of September 1, 2017. PCA is not a party to the CVR Contract nor an intended third-party beneficiary of the CVR Contract. In the CVR Contract, among other things, the Company agreed to undertake certain obligations if: (1) the consideration from the auction of the Company securities held in the Trusts resulted in an amount less than the net asset value of the illiquid investments MHT purchased from PCA (a Shortfall ET Amount) and (2) certain other conditions were not satisfied, resulting in what the CVR Contract referred to as a “Distribution Trigger Event.” Under the CVR Contract, a Distribution Trigger Event could potentially occur if the BEN CVR Parties failed to undertake an Initial Public Listing (as defined in the CVR Contract) within 24 months of the auction closing date of the Company securities, which was defined to include a transaction or event resulting in the listing of the Company’s common units (or any securities into which the common units may be exchanged in a business combination or similar transaction) on a national stock exchange or quotation in an automated quotation system. In the event of the occurrence of a Distribution Trigger Event, the BEN CVR Parties potentially would have had to comply with specified obligations arising in certain circumstances, including making quarterly distributions of “Available Cash” to the Trusts until the distributions equaled the Shortfall ET Amount, if any (a “Mandatory Distribution Period”).

During such a Mandatory Distribution Period, the CVR Contract may have also required the BEN CVR Parties to cease certain business activities, including the financing or acquisition of future private equity or other alternative asset loans unless financed through the issuance of equity or debt that is subordinate to the obligations under the CVR Contract. Except where the description of the CVR Contract expressly refers to PCA, the description of the CVR Contract’s terms is as asserted by the Company, and they are currently in dispute and being litigated in the Delaware Court of Chancery. As a threshold matter, the parties disagree about whether PCA is an intended third-party beneficiary of the CVR Contract. PCA asserts it is an intended third-party beneficiary with standing to enforce the CVR Contract. The BEN CVR Parties disagree with PCA because Section 4.9 of the CVR Contract expressly disclaims that there are any third-party beneficiaries of CVR Contract other than the Trusts. In addition to the threshold issue of standing, the parties disagree about (1) whether there is a Shortfall ET Amount under the CVR Contract’s definition of Net Auction Consideration, (2) whether there was an Initial Public Listing as defined in the CVR Contract, and (3) whether the CVR Contract terminated under these disputed definitions.

First, PCA asserts that a Shortfall ET Amount exists because it alleges that the Trusts have not received Net Auction Consideration, which PCA argues is defined to only include cash, in an amount equal to the net asset value of the illiquid investments MHT purchased from PCA (NAV of ~$500 million). As a result, PCA claims damages in the amount of $350 million. In contrast, the BEN CVR Parties believe there is no Shortfall ET Amount because the Trusts have received Net Auction Consideration that PCA’s valuation expert determined had a value exceeding the NAV of the investments purchased from PCA (valued at ~$550 million), which was comprised of $150 million in cash and approximately $400 million in GWG L-Bonds and GWG common stock. The BEN CVR Parties disagree that Net Auction Consideration only includes cash received by the Trusts in light of (1) an acknowledgement in which PCA agreed that “for all purposes Net Auction Consideration included all Auction Consideration” and that “the fair market value of all Auction Consideration shall be the

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fair market value as reflected [by PCA’s valuation expert]” and (2) an amendment to the CVR Contract that amended the definition of Net Auction Consideration to include non-cash consideration received by the Trusts and that was signed by a PCA general partner serving as a Ben director for purposes of approving such an amendment.

Second, PCA asserts the BEN CVR Parties failed to undertake an Initial Public Listing, alleging the BEN CVR Parties never filed a registration statement. The BEN CVR Parties disagree because they did exchange common units for GWG common stock, satisfying the CVR Contract’s definition of an Initial Public Listing. Third, as a result of the disputed terms above, the parties disagree about whether the CVR Contract terminated. Under the BEN CVR Parties’ view of the disputed terms, the CVR Contract terminated under its terms. But because PCA asserts that a Shortfall ET Amount exists, PCA disagrees that the CVR Contract has terminated and claims that the amendment to the CVR Contract was fraudulently induced.

To date, PCA has not sought any equitable relief with respect to the CVR Contract and instead has only requested monetary damages. If PCA is successful in its claim that it has standing to enforce the CVR Contract, that the CVR Contract has not terminated on its terms, and that the Company and its related parties have breached certain obligations under the CVR Contract, PCA may be able to recover substantial damages from the Company. Such damages could include an award to PCA of monetary damages in an amount of up to $350 million, the alleged Shortfall ET Amount, plus costs and expenses. Any such recovery against the Company (or Beneficient) could materially affect the ability of the Company (or Beneficient) to continue its operations.

Additionally, on December 16, 2022, the Claimant initiated a private arbitration in the International Court of Arbitration of the International Chamber of Commerce, challenging the termination of certain equity awards under two incentive plans by the administrator of the incentive plans. The Claimant sought total damages of $36.3 million plus attorney’s fees and punitive damages. On April 23, 2024, the sole arbitrator held that in terminating the Claimant’s equity awards, the Company had breached its contractual obligations, and as a result, awarded the Claimant $55.3 million in compensatory damages, including pre-judgment interest. Post-judgment interest was also awarded to claimant. Neither attorneys’ fees nor punitive damages were awarded to the claimant. The Company was also asked to pay arbitration-related costs in the amount of approximately $0.1 million. On July 29, 2024, the Texas District Court entered an order vacating the previously Arbitration Award against the Company in the aggregate amount of approximately $55.3 million in compensatory damages, including pre-judgment and post-judgement interest. The Texas District Court directed the parties to file motions requesting any further relief that may be available within twenty days of the order. On August 2, 2024, the Claimant filed an appeal to challenge the order vacating the Arbitration Award in the Texas Fifth Court of Appeals. The Company intends to vigorously defend itself in connection with the appeal.

On February 18, 2022, Shirin Bayati and Mojan Kamalvand, on behalf of themselves and of all others similarly situated, filed a class action lawsuit in the United States District Court for Northern District of Texas against GWG, its former President and Chief Executive Officer, Murray Holland, its former Chief Financial Officer, Timothy Evans, and certain past and present members of the board of directors of GWG and BCG (Roy Bailey, Peter T. Cangany, Jr., David Chavenson, Brad K. Heppner, Thomas O. Hicks, Dennis P. Lockhart, Bruce W. Schnitzer, and David H. de Weese). The suit alleges that the defendants violated Sections 11, 12, and 15 of the Securities Act by issuing materially misleading statements in a June 3, 2020 registration statement. On April 20, 2022, GWG filed for bankruptcy protection in the Southern District of Texas. On April 21, 2022, the district court ordered all parties to submit statements by May 5, 2022 on whether the automatic stay in bankruptcy extends to the non-debtor defendants. On April 25, 2022, the Lead Plaintiffs filed a Motion for Appointment as Lead Plaintiff and Approval of Their Selection of Lead Counsel. On May 2, 2022, a notice of dismissal was filed, dismissing defendants Peter T. Cangany, Jr., Brad K. Heppner, Thomas O. Hicks, Dennis P. Lockhart, and Bruce W. Schnitzer. On May 12, 2022, the district court extended the bankruptcy stay to all non-debtor defendants, although it permitted a limited modification of lifting of the stay to allow the court to consider the pending lead plaintiff motion. On August 5, 2022, the district court entered an order appointing Thomas Horton and Frank Moore as lead plaintiffs for the putative class. On May 26, 2023, Thomas Horton and Frank Moore, on behalf of themselves and other similarly situated, filed a second class action lawsuit against the Company, Brad K. Heppner, Peter T. Cangany, Jr., Thomas O. Hicks, Dennis P. Lockhart, Bruce W. Schnitzer and Whitley Penn LLP, alleging Securities Act violations arising out of the Offering.

On March 30, 2023, David Scura and Clifford Day, on behalf of themselves and all others similarly situated, filed a class action lawsuit in the United States District Court for Northern District of Texas against Ben, certain members of the Board (Brad K. Heppner, Peter T. Cangany, Jr., Richard W. Fisher, Thomas O. Hicks, Dennis P. Lockhart, and Bruce W. Schnitzer), certain past members of the board of directors of GWG (Jon R. Sabes and Steven F. Sabes), FOXO and Emerson Equity LLC (“Emerson”) (the “Scura Action”). The suit alleges that the defendants defrauded GWG investors in connection with the sale of GWG’s L Bonds and preferred stock, and it asserts claims on behalf of a putative class consisting of all persons and entities who purchased or otherwise acquired GWG’s L Bonds or preferred stock of GWG between December 23, 2017 and April 20, 2022. The suit alleges that (i) the Company, the individual defendants, and FOXO violated Sections 10(b) of the Exchange Act and SEC Rule 10b-5 promulgated thereunder, (ii) that the individual defendants violated Section 20(a) of the Exchange Act and (iii) that Emerson violated Section 15(c)(1)(A) of the Exchange Act. On May 3, 2023, Thomas Horton and

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Frank Moore, in their capacities as the lead plaintiffs in the Bayati Action, filed a motion to lift the automatic stay in the Chapter 11 Cases in order to file a motion in the Northern District of Texas seeking to consolidate the Bayati and Scura Actions under the Private Securities Litigation Reform Act. On June 8, 2023, the plaintiffs in the Scura Action filed a voluntary notice of dismissal without prejudice.

On August 16, 2023, Thomas Horton and Frank Moore, in their capacities as the Lead Plaintiffs in the Bayati Action, filed a notice regarding the confirmation of the Debtors’ Chapter 11 plan in the GWG bankruptcy, a motion seeking to lift the bankruptcy stay and a motion to consolidate the Bayati and Horton Actions. On September 12, 2023, the court entered an order consolidating the Bayati and Horton Actions. The court ordered that the consolidated action shall bear the caption In re GWG Holdings, Inc. Securities Litigation. The court lifted the bankruptcy stay and ordered the Lead Plaintiffs to file a new consolidated complaint within 20 days. On October 2, 2023, the Lead Plaintiffs filed a Consolidated Class Action Complaint against the Company, Brad K. Heppner, Peter T. Cangany, Jr., Thomas O. Hicks, Dennis P. Lockhart, Bruce W. Schnitzer (the “Ben Individual Defendants”), Murray T. Holland, Timothy L. Evans, David H. de Weese, Roy W. Bailey, David F. Chavenson, and Whitley Penn LLP, alleging Securities Act violations arising out of the Offering. The complaint alleges that the individual defendants violated Sections 11, 12(a)(2), and 15 of the Securities Act, and further alleges that the Company violated Section 15 of the Securities Act. The Company and the Ben Individual Defendants filed a motion to dismiss the complaint on November 7, 2023. On January 4, 2024, defendants Murray Holland, Roy Bailey, Tim Evans, Whitley Penn, David Chavenson and David H. de Weese filed motions to dismiss. The Lead Plaintiffs’ responded to the various motions to dismiss on February 20, 2024, and the defendants (other than Whitley Penn) filed replies in support of the motions to dismiss on March 21, 2024. The Company and the Ben Individual Defendants intend to vigorously defend themselves in the litigation.

On October 27, 2023, David Scura filed a petition in Dallas County District Court against Brad K. Heppner, Jon R. Sabes, Steven F. Sabes, Peter T. Cangany, Jr., Thomas O. Hicks, Dennis P. Lockhart, Bruce W. Schnitzer, the Company and FOXO, alleging violation of the Texas Securities Act, common law fraud, unjust enrichment, and civil conspiracy to defraud. Also on October 27, 2023, Clifford Day and Carla Monahan filed a petition in Dallas County District Court against the same defendants, alleging the same claims. The parties agreed to move the defendants’ deadline to respond to the petition to February 19, 2024. On April 10, 2024, the plaintiffs and Ben parties entered into a twelve-month tolling agreement, and the plaintiffs filed motions to nonsuit their claims that the courts granted on April 12, 2024 and April 16, 2024, respectively. The Company and the Ben Individual Defendants intend to vigorously defend themselves in the litigation.

The Company may be materially adversely affected by negative publicity.

The Company has received in the past, and may continue to receive in the future, negative publicity, which could adversely affect our reputation, operations, and financial condition. For example, we and certain of our officers and directors have been the subject of negative media coverage in the Wall Street Journal and other outlets regarding alleged self-dealing and the misuse of company funds. On July 28, 2023, we and certain of our executive officers filed a claim for defamation against Alexander Gladstone, the author of the Wall Street Journal’s previous media coverage concerning the Company. On May 22, 2024, the court in this case denied Mr. Gladstone’s motion to dismiss, allowing our claims to proceed. Mr. Gladstone filed an answer on June 19, 2024, and a trial has been set for March 2026. On July 26, 2024, defamation claims relating to the article authored by Gladstone were filed against Dow Jones & Co. Inc., the Wall Street Journal’s publisher (“Dow Jones”). On November 6, 2024, Dow Jones filed a motion to dismiss. The Company is currently preparing a response to such motion.

We may continue to experience negative attention in the media. Defamation claims by their nature are difficult to win, and we cannot predict the outcome of this litigation or its impact on us or our business. Such proceedings are time consuming and expensive and, regardless of the factual basis for the assertions being made or the strength of the claims, can have a negative impact on the Company’s reputation, on the morale and performance of the Company’s employees and on the Company’s relationships with regulators. Such impacts could be exacerbated if we do not prevail in the litigation. Regardless of the ultimate outcome of our defamation claim, such litigation may divert the time and effort of senior management from the management of the Company and may also have an adverse impact on the Company’s ability to take timely advantage of various business and market opportunities. Additionally, such negative publicity has in the past, and may continue, to impact the willingness of our customers and other parties to transact business with us. These direct and indirect effects of negative publicity, and the demands of responding to and addressing it, may have a material adverse effect on the Company’s businesses, financial condition and results of operations. Negative publicity also could have the effect of heightening the other risks described in our Annual Report on Form 10-K.

ITEM 2 — UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

Except as set forth below, there were no sales of unregistered securities during the quarter ended September 30 2024 that were not previously reported on a Current Report on Form 8-K.

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On September 6, 2024 and October 9, 2024, the Company issued 9,623 shares and 4,175 shares of Class A common stock of the Company to a consultant of the Company. The issuance of the Class A common stock pursuant to these transactions was not registered under the Securities Act and each was issued in reliance upon the exemption provided in Section 4(a)(2) of the Securities Act and Regulation D promulgated thereunder.

On September 17, 2024, the Company issued 201,482 shares of Class A common stock of the Company to a vendor of the Company. The issuance of the Class A common stock pursuant to this transaction was not registered under the Securities Act and was issued in reliance upon the exemption provided in Section 4(a)(2) of the Securities Act and Regulation D promulgated thereunder.

ITEM 3 — DEFAULTS UPON SENIOR SECURITIES

None.

ITEM 4 — MINE SAFETY DISCLOSURES

Not applicable.

ITEM 5 — OTHER INFORMATION

Securities Purchase Agreement, Convertible Debentures and Warrants

As previously disclosed, on August 6, 2024, the Company entered into a Purchase Agreement with Yorkville. Upon signing of the Purchase Agreement, the Company issued $2.0 in aggregate principal amount of Convertible Debentures to Yorkville for proceeds of approximately $1.8 million and a Yorkville Warrant to purchase up to 662,691 shares of Class A common stock. Pursuant to the Registration Rights Agreement entered into in connection with the Purchase Agreement, the Company filed a registration statement to register, among other things, the Conversion Shares and the Yorkville Shares. The registration statement was declared effective by the SEC on November 12, 2024. On November 13, 2024, the Company issued an additional $2.0 million in aggregate principal amount of Convertible Debentures for proceeds of approximately $1.8 million and issued an additional Yorkville Warrant to purchase up to 662,691 shares of Class A common stock.

The Convertible Debentures do not bear interest, subject to a potential increase to 18.0% per annum (or the maximum amount permitted by applicable law) upon the occurrence of certain events of default. The Convertible Debentures will mature on February 6, 2025 and resulted in gross proceeds to the Company of approximately $3.6 million. The Convertible Debentures were issued at an original issue discount of 10%. The Company will be required to make monthly cash payments of principal in the amount of $1.3 million (or such lesser amount as may then be outstanding) plus all accrued and unpaid interest as of such payment. Such payments will commence 30 days following the Second Closing and will continue on a monthly basis thereafter until the Convertible Debentures are repaid in full, provided that the Company’s obligation to make a monthly payment will cease if (i) the daily volume weighted average price of the Class A common stock is greater than 130% of the Conversion Price at any time immediately preceding the monthly payment date, and (ii) the Equity Conditions (as defined in the Convertible Debentures) are satisfied, in each case, for each trading day during a period of 10 consecutive trading days. Any such cessation will only be effective with respect to one monthly payment, and any subsequent cessation shall require the forgoing conditions to be satisfied for 10 consecutive trading days during the 30 days prior to any subsequent monthly payment date.

The Convertible Debentures are convertible at the option of the holder into Class A common stock equal to the applicable Conversion Amount divided by $3.018. The maximum amount of shares issuable upon conversion of the Convertible Debentures is 1,325,382. The Convertible Debentures may be converted in whole or in part, at any time and from time to time, subject to the Purchase Agreement Exchange Cap (as defined below). The Conversion Amount with respect to any requested conversion will equal the principal amount requested to be converted plus all accrued and unpaid interest on the Convertible Debentures as of such conversion (the “Conversion Amount”). In addition, no conversion will be permitted to the extent that, after giving effect to such conversion, the holder together with the certain related parties would beneficially own in excess of 4.99% of the Class A common stock outstanding immediately after giving effect to such conversion, subject to certain adjustments.

The Company shall not issue any shares of Class A common stock upon conversion of the Convertible Debentures held by Yorkville if the issuance of such shares underlying the Convertible Debentures would exceed the aggregate number of shares of Class A common stock that the Company may issue upon conversion of the Convertible Debentures in compliance with the Company’s obligations under the rules or regulations of Nasdaq Stock Market (the “Purchase Agreement Exchange Cap”). The Exchange Cap will not apply under certain circumstances, including if the Company obtains the approval of its stockholders as required by the applicable rules of the Nasdaq Stock Market for issuances of Class A common stock in excess

118

of such amount, or if the Company obtains a written opinion from outside counsel to the Company that such stockholder approval is not required.

The Convertible Debenture provides the Company, subject to certain conditions, with an optional redemption right pursuant to which the Company, upon 10 trading days’ prior written notice to Yorkville (the “Redemption Notice”), may redeem in cash, in whole or in part, all amounts outstanding under the Convertible Debentures prior to the Maturity Date; provided that the volume weighted average price on the date such Redemption Notice is delivered is less than the Conversion Price at the time of the Redemption Notice. The redemption amount shall be equal to the outstanding principal balance being redeemed by the Company, plus the redemption premium of 10% of the principal amount being redeemed, plus all accrued and unpaid interest in respect of such redeemed principal amount.

Upon the occurrence of certain trigger events, the Company will be required to make monthly cash payments of principal in the amount of $1.3 million (or such lesser amount as may then be outstanding) plus all accrued and unpaid interest as of such payment. Such payments will commence 30 days following the Second Closing and will continue on a monthly basis thereafter until the Convertible Debentures are repaid in full, provided that the Company’s obligation to make a monthly payment will cease if (i) the daily volume weighted average price of the Class A common stock is greater than 130% of the Conversion Price at any time immediately preceding the monthly payment date, and (ii) the Equity Conditions (as defined in the Convertible Debentures) are satisfied, in each case, for each trading day during a period of 10 consecutive trading days. Any such cessation will only be effective with respect to one monthly payment, and any subsequent cessation shall require the forgoing conditions to be satisfied for 10 consecutive trading days during the 30 days prior to any subsequent monthly payment date.

In lieu of making the cash payment otherwise contemplated to be made to Company upon exercise of a Yorkville Warrant, Yorkville may elect instead to receive upon such exercise (either in whole or in part) the net number of shares of Class A common stock determined according to a formula set forth in the Yorkville Warrants, provided that such cashless exercise shall only be permitted if, at the time of such exercise, there is no effective registration statement registering the resale of the Warrant Shares or if an Event of Default (as defined in the Purchase Agreement) has occurred. The Yorkville Warrants are immediately exercisable. The Yorkville Warrants issued at the First Closing will expire on August 6, 2027, and the Yorkville Warrants issued at the Second Closing will expire on November 13, 2027. The Yorkville Warrants include customary adjustment provisions for stock splits, combinations and similar events. Prior to obtaining approval of stockholders, the Company may not issue any Class A common stock that exceed the number of shares that it may issue pursuant to Nasdaq Stock Market rules under the Yorkville Warrants.

The issuance of Convertible Debentures, Yorkville Warrants, the Conversion Shares and the Warrant Shares is exempt from registration pursuant to Section 4(a)(2) of the Securities Act. Yorkville represented to the Company that it is an “accredited investor” as defined in Rule 501 of the Securities Act and that each of the Convertible Debentures, Warrants, the Conversion Shares and the Warrant Shares were acquired for investment purposes and not with a view to, or for sale in connection with, any distribution thereof.

Rule 10b5-1 Trading Arrangements

During the three months ended September 30, 2024, none of the Company’s directors or executive officers adopted or terminated a “Rule 10b5-1 trading arrangement” or “non-Rule 10b5-1 trading arrangement,” as each term is defined in Item 408(a) of Regulation S-K.

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ITEM 6 — EXHIBITS

Exhibit
3.1.1	Articles of Incorporation of Beneficient (incorporated by reference to Exhibit 3.1.1 to the Company’s Current Report on Form 8-K (File No. 001-41715) filed with the Securities and Exchange Commission on June 8, 2023).
3.1.2	Certificate of Change to the Articles of Incorporation (incorporated by reference to Exhibit 3.1 to the Company’s Current Report of Form 8-K (File No. 001-41715) filed with the Securities and Exchange Commission on April 16, 2024).
3.1.3	Certificate of Amendment to the Articles of Incorporation, filed October 2, 2024 (incorporated by reference to Exhibit 3.1 to the Company’s Current Report on Form 8-K (File No. 001-41715) filed with the Securities and Exchange Commission on October 4, 2024).
3.1.4	Certificate of Designation of Beneficient Series A Convertible Preferred Stock (incorporated by reference to Exhibit 3.1.2 to the Company’s Current Report on Form 8-K (File No. 001-41715) filed with the Securities and Exchange Commission on June 8, 2023).
3.1.5	Certificate of Designation of Beneficient Series B-1 Convertible Preferred Stock (incorporated by reference to Exhibit 3.1 to the Company’s Current Report on Form 8-K (File No. 001-41715) filed with the Securities and Exchange Commission on August 2, 2023).
3.1.6	Certificate of Designation of Beneficient Series B-2 Convertible Preferred Stock (incorporated by reference to Exhibit 3.1 to the Company’s Current Report on Form 8-K (File No. 001-41715) filed with the Securities and Exchange Commission on February 6, 2023).
3.1.7	Certificate of Designation of Beneficient Series B-3 Convertible Preferred Stock (incorporated by reference to Exhibit 3.2 to the Company’s Current Report on Form 8-K (File No. 001-41715) filed with the Securities and Exchange Commission on February 6, 2023).
3.1.8	Certificate of Designation of Beneficient Series B-4 Convertible Preferred Stock (incorporated by reference to Exhibit 3.1 to the Company’s Current Report on Form 8-K (File No. 001-41715) filed with the Securities and Exchange Commission on March 28, 2024).
3.2	Bylaws of Beneficient (incorporated by reference to Exhibit 3.2 to the Company’s Current Report on Form 8-K (File No. 001-41715) filed with the Securities and Exchange Commission on June 8, 2023).
4.1.1	Specimen Class A Common Stock Certificate of Beneficient (incorporated by reference to Exhibit 4.1 to The Beneficient Company Group, L.P.’s Registration Statement on Form S-4/A (File No. 333-268741) filed with the Securities and Exchange Commission on April 19, 2023).
4.1.2	Specimen Class B Common Stock Certificate of Beneficient (incorporated by reference to Exhibit 4.2 to The Beneficient Company Group, L.P.’s Registration Statement on Form S-4/A (File No. 333-268741) filed with the Securities and Exchange Commission on April 19, 2023).
4.2	Stockholders Agreement, dated June 6, 2023, by and among Beneficient, Beneficient Holdings Inc., Hicks Holdings Operating, LLC and Bruce W. Schnitzer (incorporated by reference to Exhibit 4.3 to the Company’s Current Report on Form 8-K (File No. 001-41715) filed with the Securities and Exchange Commission on June 8, 2023).
4.3.1	Warrant Agreement, dated October 5, 2021, between Continental Stock Transfer & Trust Company and Avalon Acquisition Inc. (incorporated by reference to Exhibit 4.1 to Avalon Acquisition Inc.’s Current Report on Form 8-K (File No. 001-40872) filed with the Securities and Exchange Commission on October 12, 2021).
4.3.2	Assignment, Assumption and Amendment to Warrant Agreement by and among The Beneficient Company Group, L.P., Avalon Acquisition Inc. and Continental Stock Transfer & Trust Company (incorporated by reference to Exhibit 4.1.2 to the Company’s Current Report on Form 8-K (File No. 001-41715) filed with the Securities and Exchange Commission on June 8, 2023).
4.4	First Amended and Restated Limited Liability Agreement of Beneficient Company Group, L.L.C. dated June 6, 2023 (incorporated by reference to Exhibit 4.2 to the Company’s Current Report on Form 8-K (File No. 001-41715) filed with the Securities and Exchange Commission on June 8, 2023).
4.5	Exchange Agreement dated June 7, 2023, by and among Beneficient, Beneficient Company Group, L.L.C. and Beneficient Company Holdings, L.P. (incorporated by reference to Exhibit 4.4 to the Company’s Current Report on Form 8-K (File No. 001-41715) filed with the Securities and Exchange Commission on June 8, 2023).
4.6.1	Registration Rights Agreement, dated June 7, 2023, Beneficient, Beneficient Holdings Inc., Hicks Holdings Operating, LLC and Bruce W. Schnitzer, Avalon Acquisition Holdings, LLC (incorporated by reference to Exhibit 4.7 to the Company’s Current Report on Form 8-K (File No. 001-41715) filed with the Securities and Exchange Commission on June 8, 2023).
4.6.2	Registration Rights Agreement with GWG Holdings, Inc., a Delaware corporation, certain trusts related to The Beneficient Company Group, L.P., a Delaware limited partnership, and as set forth in the Agreement, dated August 10, 2018 (incorporated by reference to Exhibit 10.14 to The Beneficient Company Group, L.P.’s Registration Statement on Form S-4 (File No. 333-268741) filed with the Securities and Exchange Commission on December 9, 2022).
4.6.3	Registration Rights Agreement Assignment and Joinder, dated as of August 1, 2023, by and among Beneficient, GWG Holdings, Inc. and the GWG Wind Down Trust and Jeffrey S. Stein (incorporated by reference to Exhibit 4.5.3 to the Company’s Registration Statement on Form S-1/A (File No. 333-273322) filed with the Securities and Exchange Commission on August 30, 2023).
4.6.4	Registration Rights Agreement with Hatteras Investment Partners dated December 7, 2021 (incorporated by reference to Exhibit 10.15 to The Beneficient Company Group, L.P.’s Registration Statement on Form S-4 (File No. 333-268741) filed with the Securities and Exchange Commission on December 9, 2022).

120

4.6.5	Registration Rights Agreement, by and between Beneficient and YA II PN, Ltd., dated August 6, 2024 (incorporated by reference to Exhibit 4.3 to the Company’s Current Report on Form 8-K (File No. 001-41715) filed with the Securities and Exchange Commission on August 7, 2024).
4.7	Eighth Amended and Restated Limited Partnership Agreement of Beneficient Company Holdings, L.P. dated June 7, 2023 (incorporated by reference to Exhibit 4.8 to the Company’s Current Report on Form 8-K (File No. 001-41715) filed with the Securities and Exchange Commission on June 8, 2023).
4.8.1	Ninth Amended and Restated Limited Partnership Agreement of Beneficient Company Holdings, L.P., effective April 18, 2024 (incorporated by reference to Exhibit 10.2 to the Company’s Current Report on Form 8-K (File No. 001-41715) filed with the Securities and Exchange Commission on April 16, 2024).
4.8.2	First Amendment to the Ninth Amended and Restated Limited Partnership Agreement of Beneficient Company Holdings, L.P. effective September 30, 2024 (incorporated by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K (File No. 001-41715) filed with the Securities and Exchange Commission on October 4, 2024).
4.9	Form of Convertible Debenture (incorporated by reference to Exhibit 4.1 to the Company’s Current Report on Form 8-K (File No. 001-41715) filed with the Securities and Exchange Commission on August 7, 2024).
4.10	Form of Warrant (incorporated by reference to Exhibit 4.2 to the Company’s Current Report on Form 8-K (File No. 001-41715) filed with the Securities and Exchange Commission on August 7, 2024).
10.1#	Securities Purchase Agreement, by and between Beneficient and YA II PN, Ltd., dated August 6, 2024 (incorporated by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K (File No. 001-41715) filed with the Securities and Exchange Commission on August 7, 2024).
10.2	Global Guaranty Agreement, by and among the subsidiaries of Beneficient set forth on the signature pages thereto, dated August 6, 2024 (incorporated by reference to Exhibit 10.2 to the Company’s Current Report on Form 8-K (File No. 001-41715) filed with the Securities and Exchange Commission on August 7, 2024).
10.3	Amendment No. 1 and Waiver No. 1 to Credit and Guaranty Agreement and Each Other Loan Document, dated August 16, 2024, by and among Beneficient Financing, L.L.C., as borrower, Beneficient Company Holdings, L.P., as guarantor, and HH-BDH LLC, as the administrative agent party thereto and lender (incorporated by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K (File No. 001-41715) filed with the Securities and Exchange Commission on August 21, 2024).
10.4	Letter Agreement regarding Second Amended and Restated First Lien Credit Agreement and Second Amended and Restated Second Lien Credit Agreement, dated October 16, 2024, among Beneficient, Beneficient Company Holdings, L.P., and HCLP Nominees, L.L.C. (incorporated by reference to Exhibit 10.16.16 to the Company’s Amendment No. 2 to Form S-3 on Form S-1 (File No. 333- 281694) filed with the Securities and Exchange Commission on October 24, 2024).
31.1*	Chief Executive Officer—Certification pursuant to Rule 13a-14(a) or Rule 15d-14(a) of the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2*	Chief Financial Officer—Certification pursuant to Rule 13a-14(a) or Rule 15d-14(a) of the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1**	Certification of Chief Executive Officer Pursuant to 18 U.S.C. §1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.2**	Certification of Chief Financial Officer Pursuant to 18 U.S.C. §1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101.INS	XBRL Instance Document.
101.SCH	XBRL Taxonomy Extension Schema Document.
101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document.
101.DEF	XBRL Taxonomy Extension Definition Linkbase Document.
101.LAB	XBRL Taxonomy Extension Label Linkbase Document.
101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document.
104	Cover Page Interactive Data File (Formatted as Inline XBRL and contained in Exhibit 101).

*    Filed herewith.

**    The certifications as Exhibit 32.1 and Exhibit 32.2 are not deemed “filed” with the Securities and Exchange Commission and are not to be incorporated by the reference into any filing of Beneficient under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended, whether made before or after the date of this Quarterly Report on Form 10-Q, irrespective of any general incorporation language contained in such filing.

#     Certain schedules and exhibits have been omitted in accordance with Item 601(a)(5) of Regulation S-K. A copy of any omitted schedule and/or exhibit will be furnished to the Securities and Exchange Commission upon request.

121

SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities and Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	BENEFICIENT
Date: November 14, 2024	By:	/s/ Brad K. Heppner
		Chief Executive Officer
		(Principal Executive Officer and duly authorized officer)
Date: November 14, 2024	By:	/s/ Gregory W. Ezell
		Chief Financial Officer
		(Principal Financial Officer and duly authorized officer)

122

EX-31.1

Exhibit No. 31.1

CERTIFICATION

I, Brad K. Heppner, certify that:

1.I have reviewed this Quarterly Report on Form 10-Q for the quarter ended September 30, 2024 of Beneficient;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a.Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b.Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c.Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d.Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a.All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b.Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date:	November 14, 2024	/s/ Brad K. Heppner
		Brad K. Heppner
		Chief Executive Officer

EX-31.2

Exhibit No. 31.2

CERTIFICATION

I, Gregory W. Ezell, certify that:

1.I have reviewed this Quarterly Report on Form 10-Q for the quarter ended September 30, 2024 of Beneficient;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a.Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b.Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c.Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d.Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a.All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b.Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Exhibit No. 31.2

Date:	November 14, 2024	/s/ Gregory W. Ezell
		Gregory W. Ezell
		Chief Financial Officer

EX-32.1

Exhibit No. 32.1

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report on Form 10-Q for the quarter ended September 30, 2024 of Beneficient (the “Company”) as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Brad K. Heppner, Chief Executive Officer of the Company, certify, to the best of my knowledge, pursuant to 18 U.S.C. §1350, as adopted pursuant to §906 of the Sarbanes-Oxley Act of 2002, that:

1.The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2.The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date:	November 14, 2024	/s/ Brad K. Heppner
		Brad K. Heppner
		Chief Executive Officer

The foregoing certification is being furnished as an exhibit to the Form 10-Q pursuant to Item 601(b)(32) of Regulation S-K and Section 906 of the Sarbanes-Oxley Act of 2002 (subsections (a) and (b) of Section 1350, Chapter 63 of Title 18, United States Code) and, accordingly, is not being filed as part of the Form 10-Q for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and is not incorporated by reference into any filing of the Company, whether made before or after the date hereof, regardless of any general incorporation language in such filing.

EX-32.2

Exhibit No. 32.2

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report on Form 10-Q for the quarter ended September 30, 2024 of Beneficient (the “Company”) as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Gregory W. Ezell, Chief Financial Officer of the Company, certify, to the best of my knowledge, pursuant to 18 U.S.C. §1350, as adopted pursuant to §906 of the Sarbanes-Oxley Act of 2002, that:

1.The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2.The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date:	November 14, 2024	/s/ Gregory W. Ezell
		Gregory W. Ezell
		Chief Financial Officer

The foregoing certification is being furnished as an exhibit to the Form 10-Q pursuant to Item 601(b)(32) of Regulation S-K and Section 906 of the Sarbanes-Oxley Act of 2002 (subsections (a) and (b) of Section 1350, Chapter 63 of Title 18, United States Code) and, accordingly, is not being filed as part of the Form 10-Q for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and is not incorporated by reference into any filing of the Company, whether made before or after the date hereof, regardless of any general incorporation language in such filing.

XML

Cover - shares	6 Months Ended
	Sep. 30, 2024	Nov. 08, 2024
Document Information [Line Items]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2024
Document Transition Report	false
Entity File Number	001-41715
Entity Registrant Name	Beneficient
Entity Incorporation, State or Country Code	NV
Entity Tax Identification Number	72-1573705
Entity Address, Address Line One	325 North St. Paul Street
Entity Address, Address Line Two	Suite 4850
Entity Address, City or Town	Dallas
Entity Address, State or Province	TX
Entity Address, Postal Zip Code	75201
City Area Code	214
Local Phone Number	445-4700
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	true
Entity Ex Transition Period	false
Entity Shell Company	false
Entity Central Index Key	0001775734
Amendment Flag	false
Current Fiscal Year End Date	--03-31
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2025
Class A common stock
Document Information [Line Items]
Title of 12(b) Security	Class A common stock, par value $0.001 per share
Trading Symbol	BENF
Security Exchange Name	NASDAQ
Entity Common Stock, Shares Outstanding (in shares)		4,841,350
Warrants, each whole warrant exercisable for one share of Class A common stock, par value $0.001 per share, and one share of Series A convertible preferred stock, par value $0.001 per share
Document Information [Line Items]
Title of 12(b) Security	Warrants
Trading Symbol	BENFW
Security Exchange Name	NASDAQ
Class B
Document Information [Line Items]
Entity Common Stock, Shares Outstanding (in shares)		239,256

XML

CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION - USD ($) $ in Thousands	Sep. 30, 2024	Mar. 31, 2024
ASSETS
Cash and cash equivalents	$ 4,482	$ 7,913
Restricted cash	314	64
Investments	334,987	329,119
Other assets, net	15,991	14,699
Intangible assets	3,100	3,100
Goodwill	9,914	13,606
Total assets	368,788	368,501
LIABILITIES, TEMPORARY EQUITY, AND EQUITY (DEFICIT)
Accounts payable and accrued expenses (related party of $13,921 and $14,143)	112,494	157,157
Other liabilities (related party of $14,306 and $9,740)	19,123	31,727
Warrants liability	784	178
Convertible debt	1,936	0
Debt due to related parties	122,117	120,505
Total liabilities	256,454	309,567
Total temporary equity	125,526	251,052
Shareholder’s equity (deficit):
Additional paid-in capital	1,836,492	1,848,068
Accumulated deficit	(1,998,633)	(2,059,214)
Stock receivable	0	(20,038)
Treasury stock, at cost (9 shares as of September 30, 2024 and March 31, 2024)	(3,444)	(3,444)
Accumulated other comprehensive income	281	276
Noncontrolling interests	152,107	42,231
Total equity (deficit)	(13,192)	(192,118)
Total liabilities, temporary equity, and equity (deficit)	368,788	368,501
Preferred Series A Subclass 0
LIABILITIES, TEMPORARY EQUITY, AND EQUITY (DEFICIT)
Preferred Series A Subclass 0 Redeemable Unit Accounts, nonunitized	125,526	251,052
Series A preferred stock
Shareholder’s equity (deficit):
Preferred stock	0	0
Series B preferred stock
Shareholder’s equity (deficit):
Preferred stock	0	0
Class A common stock
Shareholder’s equity (deficit):
Common stock	5	3
Class B
Shareholder’s equity (deficit):
Common stock	0	0
Variable Interest Entity, Primary Beneficiary
ASSETS
Investments	334,987	329,113
Beneficient
ASSETS
Investments	$ 0	$ 6

XML

CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2024	Mar. 31, 2024
Investments	$ 334,987	$ 329,119
Other assets, net	15,991	14,699
Accounts payable and accrued expenses (related party of $13,921 and $14,143)	112,494	157,157
Other liabilities (related party of $14,306 and $9,740)	$ 19,123	$ 31,727
Preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred stock, shares authorized (in shares)	250,000,000	250,000,000
Treasury stock common units (in shares)	9,000	9,000
Series A preferred stock
Preferred stock, shares issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0
Series B preferred stock
Preferred stock, par value (in dollars per share)	$ 0.001
Preferred stock, shares authorized (in shares)	4,000,000
Preferred stock, shares issued (in shares)	226,932	226,932
Preferred stock, shares outstanding (in shares)	226,932	226,932
Class A common stock
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized (in shares)	18,750,000	18,750,000
Common stock, shares issued (in shares)	4,580,000	3,348,000
Common stock, shares outstanding (in shares)	4,573,000	3,339,000
Class B
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized (in shares)	250,000	250,000
Common stock, shares issued (in shares)	239,000	239,000
Common stock, shares outstanding (in shares)	239,000	239,000
Variable Interest Entity, Primary Beneficiary
Investments	$ 334,987	$ 329,113
Beneficient
Investments	0	6
Related Party
Accounts payable and accrued expenses (related party of $13,921 and $14,143)	13,921	14,143
Other liabilities (related party of $14,306 and $9,740)	14,306	9,740
Related Party | Variable Interest Entity, Primary Beneficiary
Investments	20	552
Related Party | Beneficient
Investments	$ 0	$ 6

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CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (UNAUDITED) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Revenues
Investment income (loss), net	$ 8,541	$ (13)	$ 19,569	$ 487
Loss on financial instruments, net (related party of $(173), $(41,960), $(538) and $(45,526), respectively)	(179)	(42,775)	(1,362)	(46,236)
Interest and dividend income	12	114	24	230
Trust services and administration revenues (related party of $8, $8, $15 and $15, respectively)	187	(87)	376	15
Total revenues	8,561	(42,761)	18,607	(45,504)
Operating expenses
Employee compensation and benefits	7,135	15,398	10,985	51,221
Interest expense (related party of $3,135, $2,093, $6,189 and $2,825, respectively)	4,320	5,114	8,608	8,898
Professional services	7,257	6,657	12,801	17,030
Provision for credit losses	476	0	1,000	0
Loss on impairment of goodwill	298	306,684	3,692	1,402,989
Release of loss contingency related to arbitration award	0	0	(54,973)	0
Other expenses (related party of $694, $2,105, $1,388 and $4,221, respectively)	2,790	5,150	5,871	12,092
Total operating expenses	22,276	339,003	(12,016)	1,492,230
Operating income (loss)	(13,715)	(381,764)	30,623	(1,537,734)
(Gain) loss on liability resolution	(23,462)	0	(23,462)	0
Operating income (loss) before income taxes	9,747	(381,764)	54,085	(1,537,734)
Income tax expense	0	0	28	0
Net income (loss)	9,747	(381,764)	54,057	(1,537,734)
Plus: Net loss attributable to noncontrolling interests - Ben	7,590	14,196	15,303	58,748
Less: Noncontrolling interest guaranteed payment	(4,423)	(4,167)	(8,779)	(8,272)
Net income (loss) attributable to Beneficient common shareholders	12,914	(371,735)	60,581	(1,487,258)
Other comprehensive income (loss):
Unrealized gain on available-for-sale debt securities	26	(105)	5	4,185
Total comprehensive income (loss)	12,940	(371,840)	60,586	(1,483,073)
Less: comprehensive (loss) gain attributable to noncontrolling interests	26	(105)	5	4,185
Total comprehensive income (loss) attributable to Beneficient	12,914	(371,735)	60,581	(1,487,258)
Related Party
Revenues
Loss on financial instruments, net (related party of $(173), $(41,960), $(538) and $(45,526), respectively)	173	41,960	538	45,526
Trust services and administration revenues (related party of $8, $8, $15 and $15, respectively)	8	8	15	15
Operating expenses
Interest expense (related party of $3,135, $2,093, $6,189 and $2,825, respectively)	3,135	2,093	6,189	2,825
Other expenses (related party of $694, $2,105, $1,388 and $4,221, respectively)	694	2,105	1,388	4,221
Class A
Operating expenses
Net income (loss) attributable to Beneficient common shareholders	$ 12,270	$ (344,580)	$ 57,040	$ (1,378,616)
Net income (loss) per common share
Net income (loss) per common share - basic (in dollars per share)	$ 2.98	$ (115.95)	$ 14.58	$ (521.17)
Net income (loss) per common share - diluted (in dollars per share)	$ 0.03	$ (115.95)	$ 0.18	$ (521.17)
Class B
Operating expenses
Net income (loss) attributable to Beneficient common shareholders	$ 644	$ (27,155)	$ 3,541	$ (108,642)
Net income (loss) per common share
Net income (loss) per common share - basic (in dollars per share)	$ 2.69	$ (113.50)	$ 14.80	$ (454.08)
Net income (loss) per common share - diluted (in dollars per share)	$ 0.03	$ (113.50)	$ 0.18	$ (454.08)
Variable Interest Entity, Primary Beneficiary
Operating expenses
Plus: Net loss attributable to noncontrolling interests - Ben	$ 4,523	$ 3,592	$ 5,049	$ 17,458
Consolidated Entity, Excluding Consolidated VIE
Operating expenses
Plus: Net loss attributable to noncontrolling interests - Ben	$ 3,067	$ 10,604	$ 10,254	$ 41,290

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CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (UNAUDITED) (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Loss on financial instruments, net (related party of $(173), $(41,960), $(538) and $(45,526), respectively)	$ 179	$ 42,775	$ 1,362	$ 46,236
Trust services and administration revenues (related party of $8, $8, $15 and $15, respectively)	187	(87)	376	15
Interest expense (related party of $3,135, $2,093, $6,189 and $2,825, respectively)	4,320	5,114	8,608	8,898
Other expenses (related party of $694, $2,105, $1,388 and $4,221, respectively)	2,790	5,150	5,871	12,092
Related Party
Loss on financial instruments, net (related party of $(173), $(41,960), $(538) and $(45,526), respectively)	(173)	(41,960)	(538)	(45,526)
Trust services and administration revenues (related party of $8, $8, $15 and $15, respectively)	8	8	15	15
Interest expense (related party of $3,135, $2,093, $6,189 and $2,825, respectively)	3,135	2,093	6,189	2,825
Other expenses (related party of $694, $2,105, $1,388 and $4,221, respectively)	$ 694	$ 2,105	$ 1,388	$ 4,221

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CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (DEFICIT) (UNAUDITED) - USD ($) $ in Thousands	Total	Series A preferred stock	Series B preferred stock	Class A common stock	Class B	Class S Ordinary	Preferred Series C Subclass 1	Recent Financings	Recent Financings Series B Preferred Stock	Settlement of Liability Assumed at De-SPAC	Settlement of Liability Assumed at De-SPAC Class A common stock	Settlement of Liability	Preferred Stock Series A preferred stock	Preferred Stock Series B preferred stock	Preferred Stock Recent Financings Series B Preferred Stock	Common Class A and B Series A preferred stock	Common Class A and B Class A common stock	Common Class A and B Class B	Common Class A and B Class S Ordinary	Common Class A and B Preferred Series C Subclass 1	Common Class A and B Recent Financings Class A common stock	Common Class A and B Settlement of Liability Assumed at De-SPAC Class A common stock	Common Class A and B Settlement of Liability Class A common stock	APIC	APIC Series A preferred stock	APIC Class S Ordinary	APIC Preferred Series C Subclass 1	APIC Recent Financings	APIC Recent Financings Series B Preferred Stock	APIC Settlement of Liability Assumed at De-SPAC	APIC Settlement of Liability	Accumulated Deficit	Stock Receivable	Treasury Stock	Accumulated Other Comprehensive Income (Loss)	Noncontrolling interests (Note 10)	Noncontrolling interests (Note 10) Class S Ordinary	Noncontrolling interests (Note 10) Preferred Series C Subclass 1	Noncontrolling interests (Note 10) Recent Financings	Noncontrolling interests (Note 10) Recent Financings Series B Preferred Stock	Redeemable noncontrolling interests
Beginning balance, preferred (in shares) at Mar. 31, 2023													0	0
Beginning balance (in shares) at Mar. 31, 2023																	2,252,000	239,000
Beginning balance at Mar. 31, 2023	$ 1,728,413												$ 0	$ 0			$ 2	$ 0						$ 1,579,742								$ 0	$ 0	$ (3,444)	$ 9,900	$ 142,213	$ 52,560	$ 205,759
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	(1,546,006)																							(36,432)								(1,450,826)				(58,748)
Recognition of share-based compensation cost	35,504																							35,504
Payment of employee payroll taxes on restricted equity units	(116)																							(116)
Issuance of shares (in shares)													2,749,000		3,769,000		100,000				43,000	9,000
Issuance of shares	(4,290)							$ 8,696	$ 37,649	$ 3,995	$ 4,000		$ 3		$ 4									(4,293)				$ 11,756	$ 36,703	$ 3,995						79			$ (3,060)	$ 942
Adjustment to liability assumed at de-SPAC	500																							500
Conversion of stock (in shares)													(2,749,000)			9,000			5,000	550,000
Conversion of stock		$ 0				$ 0	$ 0						$ (3)												$ 3	$ 3,884	$ 205,759									(205,759)	(3,884)	(205,759)
Reclass of distributions payable to noncontrolling interest holder	(567)																																			(567)
Non-cash dividend to related party	(110)																							(110)
Share-based awards to related party employees	110																							110
Unrealized gain on available-for-sale debt securities	4,185																																		4,185
Reclassification of realized gain upon transfer from available-for-sale debt security to equity interest	(13,694)																																		(13,694)
Deemed dividend for BCG Preferred B.2 Unit Accounts preferred return	0																							6,942												(6,942)
Redemption of BCG Preferred B.2 Unit Accounts	(1,413)																							(1,413)
Settlement of restricted stock units (in shares)																	68,000
Settlement of restricted stock units	0
Stock receivable on prepaid forward purchase	(20,038)																																(20,038)
Reclass of BCH Preferred A.0 from temporary to permanent equity	699,441																																			699,441					$ (699,441)
Ending balance, preferred (in shares) at Sep. 30, 2023													0	3,769,000
Ending balance (in shares) at Sep. 30, 2023																	3,036,000	239,000
Ending balance at Sep. 30, 2023	932,259												$ 0	$ 4			$ 2	$ 0						1,842,534								(1,450,826)	(20,038)	(3,444)	391	563,636	9,697	0
Beginning balance, noncontrolling interests at Mar. 31, 2023																																									950,493
Increase (Decrease) in Temporary Equity [Roll Forward]
Net income (loss), temporary equity																																									8,272
Preferred Series A.0 Unit Accounts guaranteed payment accrual	8,300																																								(8,272)
Ending balance, noncontrolling interests at Sep. 30, 2023																																									251,052
Beginning balance, preferred (in shares) at Jun. 30, 2023													0	0
Beginning balance (in shares) at Jun. 30, 2023																	2,376,000	239,000
Beginning balance at Jun. 30, 2023	1,280,947												$ 0	$ 0			$ 2	$ 0						1,583,248								(1,079,091)	(20,038)	(3,444)	14,190	786,080	19,311	205,759
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	(385,931)																															(371,735)				(14,196)
Recognition of share-based compensation cost	8,503																							8,503
Payment of employee payroll taxes on restricted equity units	(32)																							(32)
Issuance of shares (in shares)															3,769,000						36,000	6,000
Issuance of shares								3,410	$ 37,649	1,250					$ 4													6,603	$ 36,703	1,250						79			$ (3,193)	$ 942
Adjustment to liability assumed at de-SPAC	500																							500
Conversion of stock (in shares)																				550,000
Conversion of stock							$ 0																				$ 205,759									(205,759)		(205,759)
Reclass of distributions payable to noncontrolling interest holder	(238)																																			(238)
Unrealized gain on available-for-sale debt securities	(105)																																		(105)
Reclassification of realized gain upon transfer from available-for-sale debt security to equity interest	(13,694)																																		(13,694)
Settlement of restricted stock units (in shares)																	68,000
Settlement of restricted stock units	0
Ending balance, preferred (in shares) at Sep. 30, 2023													0	3,769,000
Ending balance (in shares) at Sep. 30, 2023																	3,036,000	239,000
Ending balance at Sep. 30, 2023	932,259												$ 0	$ 4			$ 2	$ 0						1,842,534								(1,450,826)	(20,038)	(3,444)	391	563,636	9,697	0
Beginning balance, noncontrolling interests at Jun. 30, 2023																																									251,052
Increase (Decrease) in Temporary Equity [Roll Forward]
Net income (loss), temporary equity																																									4,167
Preferred Series A.0 Unit Accounts guaranteed payment accrual																																									(4,167)
Ending balance, noncontrolling interests at Sep. 30, 2023																																									251,052
Beginning balance, preferred (in shares) at Mar. 31, 2024		0	226,932										0	227,000
Beginning balance (in shares) at Mar. 31, 2024				3,339,000	239,000												3,348,000	239,000
Beginning balance at Mar. 31, 2024	(192,118)												$ 0	$ 0			$ 3	$ 0						1,848,068								(2,059,214)	(20,038)	(3,444)	276	42,231	0	0
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	45,278																															60,581				(15,303)
Noncontrolling interest reclass	(347)																																			(347)
Recognition of share-based compensation cost	4,358																							4,358
Issuance of shares (in shares)																	363,000				449,000		340,000
Issuance of shares	673							$ 2,555			$ 1,200	$ 1,221					$ 1				$ 1			672				$ 2,554			$ 1,221
Equity issuance costs reclassed to APIC	(343)																							(343)
Termination of prepaid forward purchase agreement	0																							(20,038)									20,038
Rounding adjustment in connection with reverse stock split ( in shares)																	80,000
Reclass of distributions payable to noncontrolling interest holder																																				(347)
Unrealized gain on available-for-sale debt securities	5																																		5
Reclass of BCH Preferred A.0 from temporary to permanent equity	125,526																																			125,526					(125,526)
Ending balance, preferred (in shares) at Sep. 30, 2024		0	226,932										0	227,000
Ending balance (in shares) at Sep. 30, 2024				4,573,000	239,000												4,580,000	239,000
Ending balance at Sep. 30, 2024	(13,192)												$ 0	$ 0			$ 5	$ 0						1,836,492								(1,998,633)	0	(3,444)	281	152,107	0	0
Beginning balance, noncontrolling interests at Mar. 31, 2024	251,052																																								251,052
Increase (Decrease) in Temporary Equity [Roll Forward]
Net income (loss), temporary equity																																									8,779
Preferred Series A.0 Unit Accounts guaranteed payment accrual	(8,800)																																								(8,779)
Ending balance, noncontrolling interests at Sep. 30, 2024	125,526																																								125,526
Beginning balance, preferred (in shares) at Jun. 30, 2024													0	227,000
Beginning balance (in shares) at Jun. 30, 2024																	4,006,000	239,000
Beginning balance at Jun. 30, 2024	(148,290)												$ 0	$ 0			$ 4	$ 0						1,852,187								(2,011,547)	(20,038)	(3,444)	255	34,293	0	0
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	5,324																															12,914				(7,590)
Noncontrolling interest reclass	(122)																																			(122)
Recognition of share-based compensation cost	3,364																							3,364
Issuance of shares (in shares)																	363,000					211,000
Issuance of shares	673									$ 307							$ 1							672						$ 307
Termination of prepaid forward purchase agreement	0																							(20,038)									20,038
Reclass of distributions payable to noncontrolling interest holder																																				(122)
Unrealized gain on available-for-sale debt securities	26																																		26
Reclass of BCH Preferred A.0 from temporary to permanent equity	(125,526)																																			125,526					(125,526)
Ending balance, preferred (in shares) at Sep. 30, 2024		0	226,932										0	227,000
Ending balance (in shares) at Sep. 30, 2024				4,573,000	239,000												4,580,000	239,000
Ending balance at Sep. 30, 2024	(13,192)												$ 0	$ 0			$ 5	$ 0						$ 1,836,492								$ (1,998,633)	$ 0	$ (3,444)	$ 281	$ 152,107	$ 0	$ 0
Beginning balance, noncontrolling interests at Jun. 30, 2024																																									251,052
Increase (Decrease) in Temporary Equity [Roll Forward]
Net income (loss), temporary equity																																									4,423
Preferred Series A.0 Unit Accounts guaranteed payment accrual																																									(4,423)
Ending balance, noncontrolling interests at Sep. 30, 2024	$ 125,526																																								$ 125,526

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CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Thousands	6 Months Ended
	Sep. 30, 2024	Sep. 30, 2023
Cash flows from operating activities:
Net income (loss)	$ 54,057	$ (1,537,734)
Adjustments to reconcile net income (loss) to net cash used in operating activities:
Depreciation and amortization	805	1,922
Net amortization of debt premium and discount (related party of $99 and $(1,835))	99	(1,355)
Loss on impairment of goodwill	3,692	1,402,989
Loss on financial instruments, net (related party of $(538) and $(45,526))	1,362	46,236
Investment income, net	(19,569)	(487)
Non cash interest expense (related party of $4,622 and $4,763)	6,584	10,272
Non cash interest income	0	(220)
Non cash share-based compensation	4,358	35,504
Provision for credit losses	1,000	0
Release of loss contingency related to arbitration award	(54,973)	0
(Gain) loss on liability resolution	(23,462)	0
Changes in assets and liabilities:
Changes in other assets	168	(987)
Changes in accounts payable and accrued expenses	6,710	16,591
Changes in other liabilities and deferred revenue	(90)	(87)
Net cash used in operating activities	(19,259)	(27,356)
Cash flows from investing activities:
Return of investments in alternative assets held by Customer ExAlt Trusts	12,547	26,256
Purchase of investments in alternative assets held by Customer ExAlt Trusts	(450)	(529)
Purchase of premises and equipment	(933)	(955)
Proceeds from sale of put options by Ben	0	968
Net cash provided by investing activities	11,164	25,740
Cash flows from financing activities:
Proceeds from related party debt financings	1,675	0
Payments on related party debt financings, Customer ExAlt Trust loan payable	(200)	(5,556)
Proceeds from issuance of convertible debt	1,775	0
Proceeds received from issuance of Class A common shares under equity purchase agreement	2,555	0
Payment of deferred financing costs for equity	(1,564)	(3,153)
Proceeds from sale of Class A common shares	673	0
Payment of employee income taxes on restricted equity units	0	(116)
Proceeds from de-SPAC merger	0	24,761
Payment for prepaid forward purchase agreement	0	(20,038)
Net cash provided by (used in) financing activities	4,914	(5,515)
Net decrease in cash, cash equivalents, and restricted cash	(3,181)	(7,131)
Cash, cash equivalents, and restricted cash at beginning of period	7,977	9,545
Cash, cash equivalents, and restricted cash at end of period	4,796	2,414
Preferred Series B Subclass 2
Cash flows from financing activities:
Redemption of Preferred Series B Subclass 2 Unit Accounts	$ 0	$ (1,413)

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CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (Parenthetical) - USD ($) $ in Thousands	6 Months Ended
	Sep. 30, 2024	Sep. 30, 2023
Net amortization of debt premium and discount (related party of $99 and $(1,835))	$ 99	$ (1,355)
Loss on financial instruments, net (related party of $(173), $(41,960), $(538) and $(45,526), respectively)	1,362	46,236
Non cash interest expense (related party of $4,622 and $4,763)	6,584	10,272
Related Party
Net amortization of debt premium and discount (related party of $99 and $(1,835))	99	(1,835)
Loss on financial instruments, net (related party of $(173), $(41,960), $(538) and $(45,526), respectively)	(538)	(45,526)
Non cash interest expense (related party of $4,622 and $4,763)	$ 4,622	$ 4,763

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Overview of the Business

6 Months Ended

Sep. 30, 2024

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Overview of the Business

Overview of the Business

Legal Structure

Beneficient, a Nevada corporation, is a technology-enabled financial services holding company (including its subsidiaries, but excluding its noncontrolling interest holders, collectively, “Ben,” “our,” “the Company,” or “we”) that provides simple, rapid, cost-effective liquidity solutions and trust products and services to participants in the alternative assets industry through its end-to-end online platform, Ben AltAccess (as defined below). Prior to the conversion described below, Beneficient Management, L.L.C. (“Ben Management”), a Delaware limited liability company, was Ben’s general partner and Ben was controlled by, and the exclusive and complete authority to manage the operations and affairs of Ben was granted to, Ben Management’s Board of Directors.

On June 6, 2023, the Company converted from a Delaware limited partnership to a Nevada corporation and changed its corporate name from “The Beneficient Company Group, L.P.” (“BCG”) to “Beneficient” (the “Conversion”). BCG, formerly known as Highland Consolidated Business Holdings, L.P., was formed on September 16, 2003. On June 6, 2023, following the BCG Recapitalization (as defined in Note 2) and the Conversion, the Company, as the sole member of Beneficient Company Group, L.L.C. (“Ben LLC”), adopted the First Amended and Restated Limited Liability Company Agreement of Ben LLC (the “Ben LLC A&R LLCA”). The Ben LLC A&R LLCA establishes managing member interests and non-managing members interests, referred to as the Class A Units of Ben LLC. Beneficient is designated as the sole managing member. In addition, certain additional amendments were made that principally focused on the management of Ben LLC by the managing member. After the adoption of the Ben LLC A&R LLCA, Beneficient contributed to Ben LLC all of the limited partnership interests and general partnership interests of Beneficient Company Holdings, L.P. (“BCH”) held by Beneficient (the “Contribution”), and Ben LLC became the general partner of BCH and the holder of 100% of the outstanding Class A Units of BCH.

On June 7, 2023, in accordance with the Business Combination Agreement, dated September 21, 2022 and amended April 18, 2023, with Avalon Acquisition, Inc. (“Avalon”), (the “Business Combination Agreement,” and the transactions contemplated thereby, collectively, the “Business Combination”), the Company completed its previously announced de-SPAC merger transaction (the “Transaction”) with Avalon. On June 8, 2023, Beneficient began trading on the Nasdaq Global Market. See Note 4 for additional disclosures related to the Conversion and Transaction.

BCH is a Delaware limited partnership formed on July 1, 2010. BCH is primarily a holding company that directly or indirectly receives all active and passive income of the Company and allocates that income among the partnership interests issued by BCH. As of September 30, 2024, BCH has issued and outstanding general partnership Subclass 1 Class A Units (“BCH Class A Units”), Class S Ordinary Units of BCH (the “BCH Class S Ordinary Units”), Class S Preferred Units of BCH (the “BCH Class S Preferred Units”), FLP Unit Accounts (Subclass 1, Subclass 2, and Subclass 3), Preferred Series A Subclass 0 Unit Accounts (“BCH Preferred A.0”), and Preferred Series A Subclass 1 Unit Accounts (“BCH Preferred A.1”).

Business Overview

Ben markets an array of liquidity solutions and related trustee, custody and trust administration services to participants in the alternative asset industry, with a focus on mid-to-high net worth (“MHNW”) individual investors (generally those with a net worth of $5.0 million to $30.0 million), small-to-midsize institutional (“STMI”) investors, family offices (“FAMOs”) and fund general partners and sponsors (“GPs” and together with MHNW individuals, STMI investors and FAMOs, “Customers”). Ben provides Customers seeking an early exit from their alternative asset investments a suite of bespoke liquidity solutions for their otherwise illiquid alternative asset investments through a proprietary financing and trust structure, which we implement for our customers (we refer to such trusts collectively as the “Customer ExAlt Trusts”). We plan to offer comprehensive alternative asset trust and custody services, and novel insurance products covering risks attendant to owning, managing and transferring alternative assets, and additional broker-dealer services in connection with our liquidity products and services.

Ben’s primary operations, which commenced on September 1, 2017, relate to its liquidity and trust administration products and services. Ben offers or plans to offer its products and services through its operating subsidiaries, which include: (i) Ben AltAccess, L.L.C., a Delaware limited liability company (“Ben AltAccess”), which offers an online platform designed to provide a digital experience for Customers seeking liquidity, custody, trust and data services for their alternative assets, (ii) Ben Liquidity, L.L.C., a Delaware limited liability company, and its subsidiaries (collectively, “Ben Liquidity”), which offers liquidity products, (iii) Ben Custody, L.L.C., a Delaware limited liability company, and its subsidiaries (collectively, “Ben Custody”), which provides services for private fund, trustee, and trust administration, (iv) Ben Data, L.L.C., a Delaware

limited liability company (“Ben Data”), which provides data analytics and evaluation services, (v) Ben Markets L.L.C., including its subsidiaries (“Ben Markets”), was recently launched and intends to provide broker-dealer services and transfer agency services in connection with offering Ben’s products and services, and (vi) Ben Insurance, L.L.C., including its subsidiaries (“Ben Insurance Services”), which intends to offer insurance products and services covering risks attendant to owning, managing and transferring alternative assets. Ben serves as trustee of certain of the Customer ExAlt Trusts, which operate for the benefit of the Charities (defined below) and Economic Growth Zones (defined below).

Ben Liquidity offers simple, rapid and cost-effective liquidity products to its Customers through the use of the Customer ExAlt Trusts, which facilitate the exchange of a Customer’s alternative assets for consideration using a proprietary financing and trust structure (such structure and related process, the “ExAlt PlanTM”). In ExAlt PlanTM financings, a subsidiary of Ben Liquidity, Beneficient Fiduciary Financial, L.L.C. (“BFF”), a Kansas based trust company that provides fiduciary financing to fidfin trusts, makes fiduciary loans (each, an “ExAlt Loan”) to certain of the Customer ExAlt Trusts, which in turn employ a portion of the loan proceeds to acquire and deliver agreed upon consideration to the Customer, in exchange for their alternative assets. BFF is registered as a chartered Kansas Technology Enabled Fiduciary Financial Institution (“TEFFI”) under the Technology-Enabled Fiduciary Financial Institution Act (the “TEFFI Act”) and regulated by the Kansas Office of the State Bank Commissioner (“OSBC”). Only BFF, our subsidiary, is regulated by the OSBC. The OSBC does not regulate the entirety of Ben. Ben Liquidity generates interest and fee income earned in connection with the ExAlt Loans, which are collateralized by a portion of the cash flows from the exchanged alternative assets, then owned by Customer ExAlt Trusts (the “Collateral”). The ExAlt Loans are eliminated upon consolidation of the Customer ExAlt Trusts solely for financial reporting purposes.

Under the applicable trust and other agreements, certain Texas and Kansas charities are the ultimate beneficiaries of the Customer ExAlt Trusts (which we refer to as “Charities” or “Economic Growth Zones” respectively, and collectively, the “Charitable Beneficiaries”), and their interests are reported as noncontrolling interests in our consolidated financial statements. The TEFFI Act requires that two and a half percent (2.5%) of the cash distributions from alternative assets serving as collateral to Ben Liquidity loans be charitably contributed by certain of the Customer ExAlt Trusts to a designated Kansas Economic Growth Zone. Accordingly, for ExAlt Loans originated on or after December 7, 2021, Economic Growth Zones are paid $0.025 for every $1.00 received by an ExAlt Trust from the corresponding alternative assets. For ExAlt Loans originated prior to December 7, 2021, in accordance with the terms of the applicable trust and other agreements, the Charitable Beneficiaries of the Customer ExAlt Trusts formed prior to such date, are paid $0.05 for every $0.95 paid to the applicable ExAlt Loan lender.

Ben Custody currently provides full-service trust and custody administration services to the trustees (including BFF) of certain of the Customer ExAlt Trusts, which own the exchanged alternative assets following liquidity transactions in exchange for fees payable quarterly.

The Customer ExAlt Trusts’ earnings on its alternative assets supports the repayment of the ExAlt Loans plus any related interest and fees. Since Ben consolidates the Customer ExAlt Trusts, Ben Liquidity’s ExAlt Loans and related interest and fee income and provision for credit losses and Ben Custody’s fee income are eliminated in the presentation of our consolidated financial statements solely for financial reporting purposes; however, such amounts directly impact the allocation of income (loss) to Ben’s or BCH’s equity holders. Likewise, the amounts expensed by the Customer ExAlt Trusts for interest and fees owed to Ben’s operating subsidiaries are eliminated in the presentation of our consolidated financial statements, but are recognized for purposes of the allocation of income (loss) to the beneficial owners of the Customer ExAlt Trusts. Refer to Note 3 for additional information.

Ben’s existing and planned products and services are designed to be delivered digitally and provide liquidity, trust and custody solutions, data analytics and news, support the tax and estate planning objectives of its Customers, facilitate asset diversification and provide administrative management and reporting solutions tailored to the goals of investors of alternative investments. While Ben’s financial products and services are presently offered through Ben Liquidity and Ben Custody, Ben plans to expand its capabilities under Ben Custody and provide additional products and services through Ben Insurance Services and Ben Markets in the future. Ben Insurance Services, through two subsidiaries, PEN Indemnity Insurance Company, Ltd. (“PEN”), which has been chartered as a Bermuda based insurance company, and Beneficient Insurance Company, L.L.C. (“BIC”), an entity through which the Company has applied to become a Kansas captive property and casualty insurer, plans to offer to affiliated Customer ExAlt Trusts certain customized insurance products and services covering risks relating to owning, managing and transferring alternative assets. Ben Markets, through one of its subsidiaries, Ben Markets Management Holdings, L.P., received regulatory approval to acquire, and subsequently acquired, a captive registered broker-dealer, Beneficient Securities Company, L.P., an entity that will conduct its activities attendant to offering a suite of products and services from the Ben family of companies. Ben Markets, through another of its subsidiaries, Beneficient Transfer & Clearing Company, L.L.C., also received regulatory approval from the SEC on June 24, 2022 to operate as a registered transfer agent with respect to its securities, and intends to provide various services for customers transacting with Ben, including the Customer ExAlt Trusts.

As discussed further in Note 3, certain of our operating subsidiary products and services involve or are offered to certain of the Customer ExAlt Trusts, which are consolidated subsidiaries of Ben solely for financial reporting purposes, and therefore transactions between our operating subsidiaries and the Customer ExAlt Trusts are eliminated in the presentation of our consolidated financial statements.

Liquidity and Going Concern

As of September 30, 2024, we had unrestricted cash and cash equivalents of $4.5 million. Besides the unrestricted cash and cash equivalents, the Company’s principal sources of liquidity available to meet its contractual obligations are proceeds on ExAlt Loan payments and fee income derived from distributions on investments held by the Customer ExAlt Trusts and potential access to capital under the Standby Equity Purchase Agreement (the “SEPA”) with YA II PN, Ltd. (“Yorkville”), however, our ability to access the cash distributions from the Customer ExAlt Trusts’ alternative asset portfolio is limited by the terms of the ExAlt Loans from Ben Liquidity to the Customer ExAlt Trusts and our ability to access proceeds from SEPA is subject to market conditions, such as trading volume, price of our Class A Common Stock and other factors beyond our control. While we generated net income of $54.1 million for the six months ended September 30, 2024, we have historically generated net losses and, in aggregate, these net losses have resulted in an accumulated deficit of $2.0 billion as of September 30, 2024. As of October 31, 2024, we had unrestricted cash and cash equivalents of approximately $3.5 million. All of these conditions raised substantial doubt about the Company’s ability to continue as a going concern within one year after the date of issuance.

We expect the Company will require additional capital to satisfy our obligations and fund our operations for the next twelve months, which will likely be achieved through the issuance of additional debt or equity, including through the SEPA. Also, we intend to potentially refinance some or all of our existing borrowings, including approximately $23.5 million of certain outstanding borrowing that will be maturing in the remainder of fiscal year 2025, with either our current lenders or other lenders, and continue to seek opportunities to reduce corporate overhead; however, we cannot conclude these are probable of being implemented or, if probable of being implemented, being in sufficient enough amounts to satisfy our contractual amounts as they presently exist that are coming due over the next 12 months as of the date of the filing of these financial statements with the SEC.

On June 27, 2023, we entered into the SEPA, whereby we have the right, but not the obligation, to sell to Yorkville up to $250.0 million of shares of the Company’s common stock. On June 20, 2024, the Company obtained stockholder approval pursuant to Nasdaq Listing Rule 5635(d) for the issuance of shares of Class A common stock to Yorkville in excess of the Exchange Cap. As a result, the Company may issue up to an aggregate of approximately $246.1 million worth of shares of Class A common stock following registration with the SEC. However, the decision regarding future sale of shares, including those under the SEPA, is subject to market conditions, such as trading volume, price of our Class A common stock and other factors beyond our control.

As more fully described in Note 8, on October 19, 2023, we entered into a three-year $25.0 million term loan with HH-BDH LLC, which was fully drawn upon closing and, the proceeds of which were used or are intended to be used to repay certain outstanding obligations, fund development of our products, and provide additional working capital. On August 16, 2024, we entered into an amendment to the term loan with HH-BDH to add an additional term loan of $1.7 million, which was used to provide working capital. The HH-BDH Credit Agreement contains certain financial maintenance covenants, including a debt service coverage ratio. On August 6, 2024, the Company entered into a securities purchase agreement with Yorkville, pursuant to which the Company agreed to issue and sell convertible debentures in an aggregate principal amount of up to $4.0 million and warrants to purchase up to 1,325,382 shares of the Company’s Class A common stock at an exercise price of $2.63. As of September 30, 2024, the Company has issued $2.0 million to Yorkville in aggregate principal amount of the convertible debentures and warrants to purchase up to 662,691 shares of Common Stock. The Company will issue the additional convertible debentures and warrants on or before the first business day after the date the registration statement registering the resale of the common stock underlying the convertible debentures and warrants is declared effective by the SEC. The Yorkville securities purchase agreement contains certain covenants. If any of these limitations of the HH-BDH Credit Agreement or the Purchase Agreement were to materially impede the flow of cash to us, our ability to service and repay our debt would be materially and adversely affected.

Ben may not be able to refinance our indebtedness or obtain additional financing on terms favorable to the Company, or at all. To the extent that Ben or its subsidiaries raise additional capital through the future sale of equity or debt, the ownership interest of our existing equity holders may be diluted. The terms of these future equity or debt securities may include liquidation or other preferences that adversely affect the rights of our existing equity unitholders or involve negative covenants that restrict Ben’s ability to take specific actions, such as incurring additional debt or making additional investments in growing the operations of the Company. If Ben defaults on these borrowings, then the Company will be required to either (i) sell participation or other interests in our loans or other of our assets, or (ii) to raise additional capital through the sale of equity and the ownership interest of our equity holders may be diluted.

We will utilize our cash flows toward our contractual obligations, to invest in our business, including new product initiatives and growth strategies, including any potential acquisitions, and, if determined by our Board, to pay dividends to our equity holders, including guaranteed payments on certain of BCH’s preferred equity securities, and to fund tax distributions for certain noncontrolling interest holders. Our ability to fund these capital needs will depend on our ongoing ability to generate cash from operations and via the capital markets.

While we have concluded that there is substantial doubt about our ability to continue as a going concern, our financial statements have been prepared on a going concern basis, which contemplates the realization of assets and satisfaction of liabilities in the normal course of business. The accompanying consolidated financial statements do not include any adjustments related to the recoverability and classification of recorded asset amounts or the amounts and classification of liabilities that might result from the outcome of this uncertainty related to the Company’s ability to continue as a going concern.

Reverse Stock Split

In April 2024, the Company's stockholders approved a reverse stock split of its Common Stock at a range of ratios between 1-for-10 to 1-for-100, and the Company's board of directors approved the implementation of the reverse stock split at a ratio of 1-for-80 (the “Reverse Stock Split”). The Reverse Stock Split was effective as of April 18, 2024, and the Company regained compliance with the minimum bid price requirement in May 2024.

As of the effective time of the Reverse Stock Split, every 80 issued and outstanding shares of the Company’s Common Stock was automatically reclassified into one issued and outstanding share of the Company’s Common Stock, with no change in the par value per share. No fractional shares of Common Stock were issued in connection with the Reverse Stock Split and all fractional shares were rounded up to the nearest whole share with respect to outstanding shares of common stock. All share and per share amounts of the Company's Class A and Class B common stock presented in this Quarterly Report on Form 10-Q have been retroactively adjusted to reflect the 1-for-80 Reverse Stock Split, including reclassifying an amount equal to the reduction in par value of Common Stock to additional paid-in capital.

Amendments to Organizational Documents

In connection with the Reverse Stock Split, on April 11, 2024, the Company, in its capacity as the sole managing member and the sole non-managing member of Beneficient Company Group, L.L.C. (“Ben LLC”), entered into and adopted the Second Amended and Restated Limited Liability Company Agreement of Beneficient Company Group, L.L.C. (the “Ben LLC A&R LLCA”), which became effective on April 18, 2024, simultaneously with the effectiveness of the Reverse Stock Split. The Ben LLC A&R LLCA provides that, among other things, in the event that the Company at any time (i) subdivides (by any stock split, dividend, recapitalization or otherwise), the outstanding shares of the Class A common stock (and Class B common stock, as applicable) of the Company into a greater number of shares, Ben LLC shall (A) cause the issuance of additional Class A Units of Ben LLC (the “Ben LLC Class A Units”) and (B) cause Beneficient Company Holdings, L.P. (“BCH”) to issue additional Class A Units of BCH (the “BCH Class A Units”) (and such other limited partner interests, if any, as determined by Ben LLC in its capacity as general partner of BCH to be appropriate), in both cases to reflect the increase in the number of shares of Common Stock of the Company outstanding, and (ii) combines (by combination, reverse split or otherwise) the outstanding shares of Class A common stock (and Class B common stock, as applicable) of the Company into a smaller number of shares, Ben LLC shall (A) cause a reduction in the number of Ben LLC Class A Units outstanding and (B) cause BCH to reduce the number of BCH Class A Units (and such other limited partner interests, if any, as determined by Ben LLC in its capacity as the general partner of BCH to be appropriate), in both cases to reflect the decrease in the number of shares of Common Stock of the Company outstanding.

Also in connection with the Reverse Stock Split, on April 11, 2024, Ben LLC, in its capacity as the sole general partner of BCH, entered into and adopted the Ninth Amended and Restated Limited Partnership Agreement of BCH (the “Ninth A&R BCH LPA”), which became effective on April 18, 2024, simultaneously with the effectiveness of the Reverse Stock Split. The Ninth A&R BCH LPA provides for, among other things, (i) the combination of certain units of BCH in connection with the Reverse Stock Split and the corresponding reverse unit split of the Ben LLC Class A Units as well as amendments to the definition of the Preferred Series A Subclass 0 Unit Conversion Price and Preferred Series A Subclass 1 Unit Conversion Price (each as defined in the Ninth A&R BCH LPA) and (ii) remove references to the previously authorized Preferred Series C Subclass 1 Unit Accounts (as defined in the Ninth A&R BCH LPA), which are no longer outstanding.

On September 30, 2024, Amendment No. 1 to the Ninth A&R BCH LPA was adopted to re-designate fifty percent (50%)% of the aggregate capital account balances in the BCH Preferred A.0 as non-redeemable Preferred A.0 Unit Accounts (such redesignated portion, the “BCH Preferred A.0 Non-Redeemable”) with the remaining fifty percent (50%)% of the capital account balances in the BCH Preferred A.0 Accounts remaining redeemable (such remaining Preferred A.0 being the “BCH Preferred A.0 Redeemable”).

The BCH Preferred A.0 Non-Redeemable is identical to the BCH Preferred A.0 Redeemable except that it does not have any cash redemption rights.

Operating Cost Reduction Plan

On July 11, 2023, Beneficient’s board of directors (the “Board”) approved certain measures to reduce the operating expenses of the Company with a view toward focusing resources on areas of current business needs. As part of this plan, we commenced the furlough of approximately 30 employees, representing approximately 20% of our workforce as of July 11, 2023. We also implemented a reduction in spending with third-party vendors in certain parts of our business as part of the plan to reduce operating expenses.

Effective November 3, 2023, the Board approved additional measures to reduce the operating expenses of the Company, including the termination of the previously furloughed employees and the layoff of an additional 15 employees, representing approximately an additional 10% of our workforce as of November 3, 2023. We continue to focus efforts on reducing spending with third-party vendors in certain parts of our business as part of the plan to further reduce operating expenses.

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Summary of Significant Accounting Policies

6 Months Ended

Sep. 30, 2024

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

Summary of Significant Accounting Policies

Basis of Presentation and Principles of Consolidation

The consolidated financial statements of Ben are prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”) on a going concern basis, and include the accounts of Ben, its wholly-owned and majority-owned subsidiaries and, certain variable interest entities (“VIEs”), in which the Company is the primary beneficiary. An enterprise is determined to be the primary beneficiary of a VIE if it holds a controlling financial interest consistent with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 810, Consolidation (“ASC 810”), as amended.

The Customer ExAlt Trusts are considered VIEs for which Ben has a variable interest and is considered the primary beneficiary. Thus, Ben is required to consolidate all of the Customer ExAlt Trusts. The entities in which the Customer ExAlt Trusts hold an ownership interest are investment companies (i.e., funds) under ASC 946, Financial Services — Investment Companies (“ASC 946”). Thus, the investments in non-investment companies made by these funds are accounted for in accordance with ASC 946 and are not subject to consolidation or the disclosure requirements of ASC 810. Moreover, further consolidation provisions of ASC 946 are not applicable to Ben since these investment companies do not have an investment in an operating entity that provides services to the investment company or to Ben.

All intercompany accounts and transactions have been eliminated in consolidation, and the portion of income allocated to owners other than the Company is included in “net income (loss) attributable to noncontrolling interests” in the consolidated statements of comprehensive income (loss). With the consolidation of the Customer ExAlt Trusts, interest and fee income and any related receivable charged by Ben Liquidity and Ben Custody to the Customer ExAlt Trusts are eliminated in the presentation of our consolidated financial statements. While these amounts are eliminated solely for financial reporting purposes, such amounts are earned by Ben Liquidity and/or Ben Custody from the Customer ExAlt Trusts and directly impact the income (loss) allocable to Ben’s and BCH’s equity holders as further discussed in Note 3.

The accompanying unaudited interim consolidated financial statements of the Company do not contain the detail or footnote disclosure concerning accounting policies and other matters that would be included in full fiscal year consolidated financial statements; therefore, they should be read in conjunction with the Company’s audited consolidated financial statements and notes thereto included in the Company’s Annual Report. In the opinion of management, all material adjustments, consisting of normal and recurring adjustments, have been made that were considered necessary to present fairly the financial condition, results of operations and cash flows at the interim date and for the interim periods presented. Operating results for the interim periods disclosed herein are not necessarily indicative of results that may be expected for a full year.

Reverse Stock Split

Following stockholder approval on April 18, 2024, the Company effected a reverse stock split of our Common Stock at a ratio of 1-for-80 and a simultaneous proportionate reduction in the authorized shares of each class of Common Stock as required by Nevada Revised Statues Section 78.207. The Reverse Stock Split was effective as of April 18, 2024. Proportional adjustments were made to the number of shares of common stock issuable upon exercise or conversion of the Company’s equity award, warrants, and other equity instruments convertible into common stock, as well as the applicable exercise price. All share and per share amounts of our Class A and Class B common stock presented have been retroactively adjusted to reflect the Reverse Stock Split, including reclassifying an amount equal to the reduction in par value of common stock to additional paid in capital.

Initial Recapitalization and Common Unit Conversion

On June 6, 2023, immediately prior to the Conversion, BCG was recapitalized, as further described in Note 4. For the periods prior to the closing, 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 adjusted on the basis of Common Stock reflecting the common unit conversion ratio, as described above.

Use of Estimates

The preparation of the Company’s consolidated financial statements in conformity with U.S. GAAP requires management to make certain estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. These estimates and assumptions are based on information available as of the date of the consolidated financial statements and could differ from actual results. Material estimates that are particularly susceptible to change in the near term relate to the fair value determination of investments in alternative assets held by the Customer ExAlt Trusts, determination of the allowance for credit losses as an input to the allocation of income (loss) to Ben’s or BCH’s equity holders, the allocation of income (loss) to Ben’s and BCH’s equity holders, evaluation of potential loss contingencies principally related to ongoing legal matters, and evaluation of potential impairment of goodwill and other intangibles.

Significant accounting policies are detailed in Note 2 to the consolidated financial statements included in the Company’s Annual Report. Other than described below, there are no new or revised significant accounting policies as of September 30, 2024.

Warrant Liability

The Company determines the accounting classification of warrants it issues as either liability or equity classified by first assessing whether the warrants meet liability classification in accordance with ASC 480, Distinguishing Liabilities from Equity ("ASC 480"), then in accordance with ASC 815 ("ASC 815"), Derivatives and Hedging. Under ASC 480, warrants are considered liability classified if the warrants are mandatorily redeemable, obligate the Company to settle the warrants or the underlying shares by paying cash or other assets, or warrants that must or may require settlement by issuing variable number of shares. If warrants do not meet liability classification under ASC 480, the Company assesses the requirements under ASC 815, which states that contracts that require or may require the issuer to settle the contract for cash are liabilities recorded at fair value, irrespective of the likelihood of the transaction occurring that triggers the net cash settlement feature. If the warrants do not require liability classification under ASC 815, and in order to conclude equity classification, the Company also assesses whether the warrants are indexed to its Common Stock and whether the warrants are classified as equity under ASC 815 or other applicable GAAP. After all relevant assessments, the Company concludes whether the warrants are classified as liability or equity. Liability classified warrants require fair value accounting at issuance and subsequent to initial issuance with all changes in fair value after the issuance date recorded in the statements of operations. Equity classified warrants only require fair value accounting at issuance with no changes recognized subsequent to the issuance date.

The Company accounts for its outstanding warrants, which are principally comprised of those assumed in the Transaction (as described in Note 4) and the warrants issued to Yorkville (as described in Note 7), in accordance with the guidance contained in ASC 815, Derivatives and Hedging, whereby under those accounting requirements, our outstanding warrants do not meet the criteria for equity treatment and must be recorded as a liability. Accordingly, the Company classifies our warrant instruments as a liability recorded at fair value and adjusts the instruments to fair value at each reporting period using quoted market prices, where available, or other appropriate valuation techniques, such as an option pricing model. The warrant liability is re-measured at each balance sheet date until the warrants are exercised or expire, and any change in fair value will be recognized in the Company’s consolidated statements of comprehensive income (loss). Such warrant classification is also subject to re-evaluation at each reporting period.

Convertible Debt

The Company has elected the fair value option to account for the convertible debentures with Yorkville (as described in Note 7). The Company recorded the convertible debentures at fair value upon issuance. The Company records changes in fair value in the consolidated statements of comprehensive income (loss), with the exception of changes in fair value due to instrument-specific credit risk which, if present, will be recorded as a component of other comprehensive income (loss). Interest expense related to the convertible debentures is included in the changes in fair value. As a result of applying the fair value option, direct costs and fees related to the convertible debentures were expensed as incurred.

Income Taxes

On June 6, 2023, The Beneficient Company Group, L.P. changed both its regulatory and tax status from a Delaware Limited Partnership to a Nevada Corporation and changed its name from The Beneficient Company Group, L.P. to Beneficient. Beneficient made a tax election to be treated as a corporation for US tax purposes effective as of this date.

As a result of this tax election, Beneficient records current tax liabilities or assets through charges or credits to the current tax provision for the estimated taxes payable or refundable for the current year. Deferred tax assets and liabilities are recorded for future tax consequences attributable to differences between the financial statement carrying amounts of assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. A deferred tax valuation allowance is established if it is more likely than not that all or a portion of the deferred tax assets will not be realized. A tax position that fails to meet a more-likely-than-not recognition threshold will result in either reduction of current or deferred tax assets, and/or recording of current or deferred tax liabilities. Interest and penalties related to income taxes are recorded in the other expense line item of the consolidated statements of comprehensive income (loss).

Prior to the restructuring that resulted in Beneficient becoming a corporation, Beneficient was taxed as a Delaware Limited Partnership. In the event the subsequent entity, Beneficient a corporation, is audited by the taxing authority and assessed additional amounts due to the underpayment of tax in previous tax years, management intends to make the push-out election allowed by the U.S. Treasury Department. That election allows Beneficient to notify its partners of their share of imputed underpayment amounts for inclusion in their current tax returns.

Accounting Standards Not Yet Adopted

ASU 2023-07, Segment Reporting, (Topic 280) was issued in November 2023 and expands public entities’ segment disclosures by requiring disclosure of significant segment expenses that are regularly provided to the chief operating decision maker (“CODM”) and included within each reported measure of segment profit or loss, an amount and description of its composition for other segment items, and interim disclosures of a reportable segment’s profit or loss and assets. All disclosure requirements under ASU 2023-07 are also required for public entities with a single reportable segment. Additionally, the amendments require disclosure of the title and position of the CODM and an explanation of how the CODM uses the reported measure(s) of segment profit or loss in assessing segment performance and deciding how to allocate resources. ASU 2023-07 is effective for fiscal years beginning after December 15, 2023 and interim periods within fiscal years beginning after December 15, 2024, which will be our fiscal year beginning April 1, 2024 and interim periods beginning April 1, 2025. Early adoption is permitted. ASU 2023-07 will have no impact on the Company’s financial condition or results of operations. The Company is evaluating the impact to the related segment reporting disclosures.

ASU 2023-09, Income Taxes, (Topic 740) was issued in December 2023, which expands income tax disclosure requirements to include additional information related to the rate reconciliation of our effective tax rates to statutory rates as well as additional disaggregation of taxes paid. The amendments in ASU 2023-09 also remove disclosures related to certain unrecognized tax benefits and deferred taxes. ASU 2023-09 is effective for fiscal years beginning after December 15, 2024, or our fiscal year beginning April 1, 2025. The amendments may be applied prospectively or retrospectively, and early adoption is permitted. We are currently assessing the impact of the requirements on our consolidated financial statements and disclosures.

ASU 2020-04, Reference Rate Reform, (Topic 848) was issued in March 2020. The amendments in Topic 848 provide optional expedients and exceptions for applying U.S. GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. Topic 848 can be applied by all entities as of the beginning of the interim period that includes March 12, 2020, or any date thereafter, and entities may elect to apply the amendments prospectively through December 31, 2022. On December 31, 2022, ASU 2022-06, Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848 was issued, which extends the period of time entities can utilize the reference rate reform relief guidance under ASU 2020-04 from December 31, 2022 to December 31, 2024. We have not utilized the optional expedients and exceptions provided by this standard, and are currently evaluating the impact of this standard on our consolidated financial statements and disclosures.

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Understanding our Financial Statements and the Impact to the Common Shareholder

6 Months Ended

Sep. 30, 2024

Related Party Transactions [Abstract]

Understanding our Financial Statements and the Impact to the Common Shareholder

Understanding our Financial Statements and the Impact to the Common Shareholder

Ben’s current products and services, which are offered by the Ben Liquidity and Ben Custody business segments, involve or are principally offered to certain of the Customer ExAlt Trusts, which are consolidated VIEs solely for financial reporting purposes, and are not owned directly or indirectly by Ben or BCH equity holders. Transactions involving products and services between Ben’s operating subsidiaries and the Customer ExAlt Trusts are eliminated in the presentation of our consolidated financial statements. Thus, the consolidated financial statements reflect the (i) assets, liabilities, revenues, expenses, investment income and cash flows of Ben, including the Customer ExAlt Trusts, which hold the collateral for the ExAlt Loans, on a gross basis, and (ii) a portion of the economic interests of certain of the Customer ExAlt Trusts held by the residual beneficiaries that are attributed to noncontrolling interests in the accompanying consolidated financial statements.

As a result, Ben’s primary tangible assets reflected on its consolidated statements of financial condition are investments, mainly comprised of alternative assets held by the Customer ExAlt Trusts and the primary sources of revenue reflected on our consolidated statements of comprehensive income (loss) are investment income (loss), net, which represents changes in

the net asset value (“NAV”) of these investments held by the Customer ExAlt Trusts, and gain (loss) on financial instruments, net, which represents changes in fair value of equity securities, debt securities, a derivative liability, and put options, primarily held by the Customer ExAlt Trusts. Such investment income (loss), net, and gain (loss) on financial instruments that are held by the Customer ExAlt Trusts is included in the net income (loss) allocated to noncontrolling interests – Customer ExAlt Trusts in the consolidated statement of comprehensive income (loss). The revenues and expenses recognized in these line items for the activities of the Customer ExAlt Trusts do not directly impact net income (loss) attributable to Ben’s or BCH’s equity holders.

Instead, the interest and fee income earned by Ben Liquidity and Ben Custody from the Customer ExAlt Trusts, which are eliminated in the presentation of our consolidated financial statements, directly impact the net income (loss) attributable to Ben’s and BCH’s equity holders. Our Ben Liquidity and Ben Custody business segments, which relate to our current operating subsidiaries, are owned by the Company’s equity holders (including those of BCH), and recognize revenue through (i) interest income on ExAlt Loans made to the Customer ExAlt Trusts in connection with our liquidity transactions for Customers with interest rates between 5.0% and 14.0% per annum charged against the outstanding principal balance of the ExAlt Loan, (ii) fee income billed at closing, but recognized as revenue ratably over the expected life of the alternative asset, for each liquidity transaction with Customers for services including access to and use of the AltAccess platform, transfer of the alternative assets, and delivery of the consideration to the client, with fee rates between 1.0% and 7.0% of the sum of the NAV and remaining unfunded commitment of the transacted alternative asset, and (iii) recurring fee income recognized each period for providing services including trustee, custody, and trust administration of the Customer ExAlt Trusts while they hold investments, with fee rates generally at 2.8% per annum of the sum of the NAV and remaining unfunded commitment of the alternative assets held. Ben Liquidity and Ben Custody revenue recognized for the three and six months ended September 30, 2024 and 2023 is as follows:

a.Ben Liquidity recognized $12.0 million and $13.0 million in interest income during the three months ended September 30, 2024 and 2023, respectively. For the six months ended September 30, 2024 and 2023, Ben Liquidity recognized interest income of $22.8 million and $25.0 million, respectively.

b.Ben Custody recognized $5.4 million and $6.5 million in trust services and administration revenues during the three months ended September 30, 2024 and 2023, respectively, comprised of both the fee income billed at the closing of the transactions that is being amortized into revenue and the recurring fee income billed during the periods. For the six months ended September 30, 2024 and 2023, Ben Custody recognized trust services and administration revenues of $10.8 million and $13.1 million, respectively.

In addition, the Corporate/Other segment, which also relates to Ben or subsidiaries owned by the holders of equity in the Company (including BCH), may include fee revenue recognized through services provided to Customers or the Customer ExAlt Trusts through business lines not included within Ben Liquidity and Ben Custody.

Additionally, Ben Liquidity’s provision for credit losses is eliminated in the presentation of our consolidated financial statements but directly impacts the net income (loss) attributable to the various equity securities of Ben and BCH. Likewise, the amounts expensed by the Customer ExAlt Trusts for interest and fees owed to Ben’s operating subsidiaries are eliminated in the presentation of our consolidated financial statements but are recognized for purposes of the allocation of net income (loss) attributable to the beneficial owners of the Customer ExAlt Trusts.

The following table presents a reconciliation of operating income (loss) of our reportable segments, excluding the Customer ExAlt Trusts, to net income (loss) attributable to Beneficient’s common shareholders. This reconciliation serves to provide users of our financial statements an understanding and visual aide of the reportable segments that impact net income (loss) attributable to the common shareholder and reiterates that the consolidation of the Customer ExAlt Trusts has no impact on the net income (loss) attributable to Beneficient’s common shareholders.

(in thousands)	Three Months Ended September 30,				Six Months Ended September 30,
	2024		2023		2024		2023
Operating income (loss)
Ben Liquidity	$	2,905	$	(272,091)	$	2,391	$	(1,175,119)
Ben Custody	4,329		(80,847)		5,616		(270,844)
Corporate & Other	(16,426)		(25,234)		27,665		(74,313)
Plus: Gain on liability resolution	23,462		—		23,462		—
Less: Income tax expense (allocable to Ben and BCH equity holders)	—		—		(28)		—
Plus: Net loss attributable to noncontrolling interests - Ben	3,067		10,604		10,254		41,290
Less: Noncontrolling interest guaranteed payment	(4,423)		(4,167)		(8,779)		(8,272)
Net income (loss) attributable to common shareholders	$	12,914	$	(371,735)	$	60,581	$	(1,487,258)

Significant Accounting Policies - Impacting Allocation of Net Income (Loss) to Beneficient’s Equity Holders

As described above, certain income and expenses involving transactions between Ben and the Customer ExAlt Trusts are eliminated for financial reporting purposes; however, the income or expenses are important to determine the net income (loss) allocable to Ben’s and BCH’s equity holders. Significant accounting policies related to the significant income and expense items eliminated in our consolidated financial statements, but impacting the allocation of net income (loss) to Beneficient’s equity holders, are detailed in Note 3 to the consolidated financial statements included in the Company’s Annual Report. There are no new or revised significant accounting policies related to the significant income and expense items eliminated in our consolidated financial statements as of September 30, 2024 impacting allocation of net income (loss) to Ben’s and BCH’s equity holders.

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De-SPAC Merger Transaction

6 Months Ended

Sep. 30, 2024

Business Combination, Asset Acquisition, and Joint Venture Formation [Abstract]

De-SPAC Merger Transaction

De-SPAC Merger Transaction

Forward Purchase Agreement

On June 5, 2023, BCG entered into a Prepaid Forward Purchase Agreement, by and between BCG and RiverNorth SPAC Arbitrage Fund, L.P. (the “Purchaser”), pursuant to which the Purchaser agreed to, among other things, effect certain purchases of shares of Avalon Class A common stock (“Avalon Class A Common Stock”) that would have been redeemed in connection with the special meeting of Avalon’s stockholders (the “Special Meeting”) to approve the transactions contemplated by the Business Combination Agreement (as amended through June 25, 2023, the “Forward Purchase Agreement”).

Pursuant to the Forward Purchase Agreement, Purchaser agreed to purchase shares of Avalon Class A Common Stock (the “AVAC FPA Shares”) at a purchase price per share of $847.04 (for aggregate consideration of $25.0 million from unaffiliated third-parties). The AVAC FPA Shares were redeemed in connection with the Special Meeting and converted into shares of Class A common stock and Series A Convertible Preferred Stock, par value $0.001 per share, of Beneficient (“Series A preferred stock”) upon consummation of the Business Combination. The Series A preferred stock converted in accordance with its terms to shares of Class A common stock, and Purchaser held an aggregate of 36,956 shares of Class A common stock following such conversion in respect of the AVAC FPA Shares (such shares of Class A common stock, the “FPA Shares”).

The $25.0 million in proceeds (the “Disbursed Amount”) in respect of the FPA Shares was disbursed from the Avalon trust account following the consummation of the Business Combination. Specifically, $5.0 million of the Disbursed Amount was disbursed to Beneficient, with the remaining $20.0 million (the “Reserve Amount”) disbursed to Purchaser to be held by Purchaser until the Maturity Date (as defined below) or until its earlier release per the terms of the Forward Purchase Agreement. Such Reserve Amount is reflected as a Stock Receivable classified in equity on the consolidated statements of financial condition.

The Forward Purchase Agreement provides for two categories of FPA Shares: (i) 13,305 FPA Shares categorized as “Purchased Shares” (the “Purchased Shares”) and (ii) the remaining 23,651 FPA Shares categorized as “Prepaid Forward Shares” (the “Prepaid Forward Shares”).

If by the 10th anniversary of the close of the Business Combination, Purchaser has received less than $5.0 million, in gross proceeds from, and Purchaser has used good faith efforts to sell, the Purchased Shares, Beneficient has agreed to cause BCH to issue Purchaser an amount of BCH Preferred A.0 (or such other senior most preferred security of Beneficient) as consideration for any shortfall amounts less than $5.0 million from the sale of the Purchased Shares. Purchaser has agreed for

the first six months following the Business Combination not to sell any Purchased Shares below $400.00 per share or to sell more than 10% of the daily trading volume of the Class A common stock if the volume weighted average price of the Class A common stock is between $400.00 and $640.00 for any such trading day.

Upon the sales of the Prepaid Forward Shares, the Purchaser will remit $847.04 per share, or such lesser price per share designated by the Company (“Designated Price”) by written notice setting forth the Designated Price and the number Prepaid Forward Shares that may be sold at such price (“Designated Price Notice”) delivered to Purchaser prior to any such sales, to the Company. On June 8, 2025 (“Maturity Date”), any Prepaid Forward Shares not sold by the Purchaser will be returned to the Company and any remaining amounts in respect of the Prepaid Forward Shares will be retained by the Purchaser, less any amounts still owed to the Company from sales effected prior to the Maturity Date. The Forward Purchase Agreement permits the Company, in its sole discretion, to lower the Designated Price to a per share amount lower than $847.04 in order to permit the Purchaser to effect additional sales of its Prepaid Forward Shares at a price lower than the prevailing trading price of the Company’s Class A common stock in exchange for the remitting of a portion of the proceeds of any such sales to the Company. The Prepaid Forward Shares include an embedded put option, which is accounted for separately and classified as a liability in the other liabilities line item of the consolidated statements of financial condition. The Prepaid Forward Shares are measured at fair value each reporting period with the change in fair value recognized in the gain (loss) on financial instruments, net line item of the consolidated statements of comprehensive income (loss).

The Purchaser has received at least $5.0 million in gross proceeds from the sale of some or all of the Purchased Shares and thus, there will be no requirement to issue the Purchaser any amount of BCH Preferred A.0 as consideration for any shortfall. To the Company’s knowledge, all shares purchased by the Purchaser in connection with the Forward Purchase Agreement were from unaffiliated third-parties.

No sales of any of the Prepaid Forward Shares occurred through September 30, 2024. On September 30, 2024, the Company and the Purchaser entered into an agreement to terminate the Forward Purchase Agreement. In connection with the termination of the Forward Purchase Agreement, the Purchaser agreed to return the 23,651 Prepaid Forward Shares to the Company.

To the Company’s knowledge, all shares purchased by the Purchaser in connection with the Forward Purchase Agreement were from unaffiliated third-parties.

Recapitalization of BCG

On June 6, 2023, immediately prior to the Conversion, the 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 BCH Preferred A.1 entered into conversion and exchange agreements (the “BCG Conversion and Exchange Agreements”) with BCG and BCH, pursuant to which they converted certain BCH Preferred A.1 to BCH Class S Ordinary Units, which were then contributed to BCG in exchange for BCG Class A Common Units.

Prior to the Conversion on June 6, 2023, when the Company was a Delaware limited partnership, the Company’s equity interests consisted of common units, one series of preferred units, and noncontrolling interests. Pursuant to the Conversion, each BCG Class A Common Unit converted into 1.25 shares of Class A common stock par value $0.001 per share (“Class A common stock”), each BCG Class B Common Unit converted into 1.25 shares of Class B common stock, par value $0.001 per share (“Class B common stock” and together with the Class A common stock, the “Common Stock”), and the capital account balance of the Preferred Series B Subclass 2 Unit Accounts of BCG (“BCG Preferred B.2 Unit Accounts”) converted into shares of Class A common stock at a rate based on a 20% discount to the $800.00 valuation of the Class A common stock (or $640.00). As a result, in the Conversion, we issued 1,076,462 shares of Class A common stock with respect to the BCG Class A Common Units, 239,256 shares of Class B common stock with respect to the BCG Class B Units and 1,175,632 shares of Class A common stock with respect to the BCG Preferred B.2 Unit Accounts.

The following table provides additional information on the securities contributed and exchanged as part of the BCG Recapitalization by each of BHI, Bruce W. Schnitzer and Hicks Holdings Operating, LLC (dollars and units in thousands):

Name	Converted Capital Account Balance of BCH Preferred A.1		BCH Class S Ordinary Units Received	BCG Class B Units Received
BHI	$	177,195	178	178
Bruce W. Schnitzer	988		1	1
Hicks Holdings Operating, LLC	13,222		14	14
Total	$	191,405	193	193

The following table provides additional information on the securities contributed and exchanged as part of the BCG Recapitalization by each of Bruce W. Schnitzer and Richard W. Fisher (dollars and units in thousands):

Name	Converted Capital Account Balance of BCH Preferred A.1		BCH Class S Ordinary Units Received	BCG Class A Units Received
Bruce W. Schnitzer	$	734	9	9
Richard W. Fisher	1,722		10	10
Total	$	2,456	19	19

As part of the conversion to BCG Class A Common Units, additional value of approximately $15.0 million was provided to certain holders who were members of our Board at the time of conversion. The additional value was accounted for as compensation, which resulted in stock-based compensation expense of $15.0 million during the quarter ended June 30, 2023.

Closing of the Transaction

On June 7, 2023, the Company completed its previously announced de-SPAC merger transaction with Avalon. Each share of Avalon common stock issued and outstanding immediately prior to that date automatically converted into one share of Class A common stock and one share of Series A preferred stock of Beneficient. Additionally, each Avalon Warrant (defined below) automatically converted into a Warrant (defined below).

Accordingly, the Company issued (i) an aggregate of 99,649 shares of Class A common stock to the former holders of Avalon Class A Common Stock, and Class B Common Stock of Avalon, par value $0.0001 per share (“Avalon Class B Common Stock”), outstanding immediately prior to June 7, 2023, and (ii) an aggregate of 34,961 shares of Beneficient Series A preferred stock to non-redeeming Avalon Class A stockholders, and the Avalon Warrants converted into an aggregate of 295,313 redeemable Warrants. At closing, $27.9 million of cash remained in the trust account of Avalon. There were $26.1 million in transaction expenses, $20.0 million of which represented the Reserve Amount under the Forward Purchase Agreement, that were either paid by Avalon prior to closing or offset against proceeds received by the Company at closing, resulting in $1.8 million in net proceeds to the Company. Proceeds from the Transaction were used to pay expenses related to the Transaction.

Immediately after the Business Combination, 2,358,429 shares of Class A common stock were issued and outstanding, 239,256 shares of Class B common stock were issued and outstanding, 34,962 shares of Beneficient Series A preferred stock were issued and outstanding and 296,969 Warrants were issued and outstanding. Because the Series A preferred stock is not expected to be publicly listed, the Beneficient Series A preferred stock terms provide that upon its issuance, each share of Series A preferred stock will automatically convert into one-quarter of a share of Class A common stock of Beneficient, or an aggregate of 8,595 additional shares of Class A common stock. Following such conversion, there are 2,367,244 shares of Class A common stock of Beneficient outstanding following the Business Combination.

The Transaction was accounted for as a capital transaction in substance and not a business combination under ASC 805, Business Combinations (“ASC 805”). As a result, Beneficient was treated as the accounting acquirer and Avalon was treated as the acquired company for financial reporting purposes per ASC 805. Accordingly, for accounting purposes, the Transaction was treated similar to an equity contribution in exchange for the issuance of shares of Common Stock. The financial statements of the combined entity represented a continuation of the financial statements of Beneficient, and the net assets of Avalon were stated at historical cost, with no goodwill or other intangible assets recorded. The equity and net loss per unit attributable to common equity holders of the Company, prior to the closing, have been retroactively restated as shares reflecting the common unit conversion ratio discussed above.

The Company and Avalon incurred $21.7 million and $26.1 million, respectively, of expenses related to the Transaction. These expenses consisted of underwriting fees, professional services (legal, accounting, advisory, etc.) and other direct

expenses associated with the Transaction. As a result of the transaction, the transaction costs incurred by the Company related to the issuance of shares were recognized in additional paid-in capital as a reduction of proceeds. The expenses incurred by Avalon were either paid by Avalon prior to closing or netted against proceeds received by the Company at closing.

Common Stock Warrants

The Company assumed 15,525,000 publicly-traded Avalon Warrants (“Avalon Public Warrants”), which are exercisable for 194,063 shares of Class A common stock, as adjusted for stock splits, and 8,100,000 private placement Avalon Warrants, which are exercisable for 101,250 shares of Class A common stock, as adjusted for stock splits, (“Avalon Private Warrants” and together with the Avalon Public Warrants, the “Avalon Warrants”), which were originally issued by Avalon in connection with its initial public offering and, as a result of the assumption by the Company, became Warrants. The Avalon Public Warrants assumed by Ben are referred to as the “Public Warrants” and the Avalon Private Warrants assumed by Ben are referred to as the “Private Warrants,” and collectively, the “Warrants.” The Warrants are included in derivative warrant liabilities on the Company’s consolidated statements of financial condition. The Warrants entitle the holder to exercise each whole warrant for one share of Class A common stock and one share of Series A preferred stock at an exercise price of $920.00 (each a “Warrant” and collectively, the “Warrants”).

The Public Warrants may only be exercised for a whole number of shares, and will expire on June 7, 2028 (i.e., five years following the closing), or earlier upon redemption or liquidations. Ben may redeem the outstanding Public Warrants (i) in whole and not in part; (ii) at a price of $0.80 per warrant; (iii) upon not less than 30 days’ prior written notice of redemption to each warrant holder; and (iv) if, and only if, the reported last sale price of the Class A common stock for any 20 trading days within a 30-trading day period ending three business days before Ben sends the notice of redemption to the warrant holders (the “Reference Value”) equals or exceeds $1,440.00 per share. In addition, we have the ability to redeem the outstanding Warrants at any time after they become exercisable and prior to their expiration, at a price of $8.00 per Public Warrant if, among other things, the Reference Value equals or exceeds $800.00 per share. If and when the Public Warrants become redeemable by Ben, Ben may exercise its redemption right even if Ben is unable to register or qualify the underlying securities for sale under all applicable state securities laws.

During any period when Ben fails to maintain an effective registration statement registering the Class A common stock issuable upon the exercise of the Warrants, Ben is required to permit holders of Warrants to exercise their Warrants on a “cashless basis” in accordance with Section 3(a)(9) of the Securities Act of 1933, as amended, or another exemption.

The Private Warrants, which became transferable, assignable and salable on July 7, 2023 (i.e., 30 days after the closing), are currently held by Avalon Acquisition Holdings, L.L.C (“the Avalon Sponsor”), and are generally identical to the Public Warrants, except they cannot be redeemed by Ben so long as they are held by the Avalon Sponsor or its permitted transferees. An Avalon Sponsor, or its permitted transferees, has the option to exercise the Private Warrants on a cashless basis and have certain registration rights. If the Private Warrants are held by holders other than the Avalon Sponsor or its permitted transferees, the Private Warrants will become redeemable by Ben in all redemption scenarios and exercisable by the holders on the same basis as the Public Warrants.

As of September 30, 2024, there were 24,699,725 Warrants outstanding with a fair value of $0.2 million, as reflected in the warrant liability line item on the consolidated statements of financial condition. During the three months ended September 30, 2024 and 2023, gains of nominal and $0.2 million, respectively, were recognized in gain (loss) on financial instruments, net in the consolidated statements of comprehensive income (loss). During the six months ended September 30, 2024 and 2023, gains of nominal and $1.7 million, respectively, were recognized in gain (loss) on financial instruments, net in the consolidated statements of comprehensive income (loss). Refer to Note 6 for a reconciliation of the gain (loss) on financial instruments, net for each of the periods presented herein.

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Investments, at Fair Value

6 Months Ended

Sep. 30, 2024

Investments [Abstract]

Investments, at Fair Value

Investments, at Fair Value

Investments held by Ben or held by the Customer ExAlt Trusts are comprised of investments in alternative assets, public debt and equity securities, other equity securities and interests (including those of a related party), and put options. The composition of investments recorded at fair value by holder is included in the table below (in thousands):

	September 30, 2024				March 31, 2024
	Ben		Customer ExAlt Trusts		Ben		Customer ExAlt Trusts
Alternative assets	$	—	$	301,388	$	—	$	293,916
Public equity securities and option	—		4,885		—		4,897
Debt securities available-for-sale	—		1,969		—		2,962
Other equity securities and interests	—		26,745		6		27,338
Total investments, at fair value	$	—	$	334,987	$	6	$	329,113

Investments in Alternative Assets held by the Customer ExAlt Trusts

The investments in alternative assets are held, either through direct ownership or through beneficial interests, by certain of the Customer ExAlt Trusts and consist primarily of limited partnership interests in various alternative investments, including private equity funds. These alternative investments are valued using NAV as a practical expedient. Changes in the NAV of these investments are recorded in investment income (loss), net in our consolidated statements of comprehensive income (loss). The investments in alternative assets provide the economic value that ultimately collateralizes the ExAlt Loans that Ben Liquidity originates with the Customer ExAlt Trusts in liquidity transactions and any associated fees due from the Customer ExAlt Trusts. The increase in investments in alternative assets since March 31, 2024, was primarily driven by net upward adjustments of NAV as reported by the investment managers or general partners offset by $12.5 million in distributions.

The NAV calculation reflects the most current report of NAV and other data received from firm/fund sponsors. If no such report has been received, Ben estimates NAV based upon the last NAV calculation reported by the investment manager and adjusts it for capital calls and distributions made in the intervening time frame. Ben also considers whether adjustments to the NAV are necessary, in certain circumstances, in which management is aware of specific material events, changes in market conditions, and other relevant factors that have affected the value of an investment during the period between the date of the most recent NAV calculation reported by the investment manager or sponsor and the measurement date. Public equity securities known to be owned within an alternative investment fund, based on the most recent information reported by the general partners, are marked to market using quoted market prices on the balance sheet reporting date.

The underlying interests in alternative assets are primarily limited partnership interests. The transfer of the investments in private equity funds generally requires the consent of the corresponding private equity fund manager, and the transfer of certain fund investments is subject to rights of first refusal or other preemptive rights, potentially further limiting the ExAlt PlanTM from transferring an investment in a private equity fund. The investments are not subject to redemption with the funds. Distributions from funds are received as the underlying investments are liquidated. Timing of liquidation is currently unknown.

Portfolio Information

Our portfolio of alternative asset investments, held by certain of the Customer ExAlt Trusts by asset class of each fund as of September 30, 2024 and March 31, 2024, is summarized below (in thousands):

	Alternative Investments Portfolio Summary
	September 30, 2024				March 31, 2024
Asset Class	Carrying Value		Unfunded Commitments		Carrying Value		Unfunded Commitments
Private Equity	$	138,089	$	37,989	$	116,462	$	38,401
Venture Capital	128,033		2,344		139,495		2,548
Natural Resources	16,815		3,318		17,553		3,340
Private Real Estate	8,580		2,884		8,760		2,907
Hedge Funds	3,539		245		6,095		245
Other(1)	6,332		383		5,551		382
Total	$	301,388	$	47,163	$	293,916	$	47,823

(1) “Other” includes earnouts, escrow, net other assets, and private debt strategies.

As of September 30, 2024, the Customer ExAlt Trusts collectively had exposure to 237 professionally managed alternative asset investment funds, comprised of 797 underlying investments, 92 percent of which are investments in private companies.

Public Equity Securities

Investment in public equity securities primarily represents ownership by both Ben and certain of the Customer ExAlt Trusts in public companies. These investments are carried at fair value, which is determined using quoted market prices. Any realized gains and losses are recorded on a trade-date basis. Realized and unrealized gains and losses are recognized in gain (loss) on financial instruments, net in the consolidated statements of comprehensive income (loss). As of September 30, 2024 and March 31, 2024, the fair value of investments in public equity securities was $4.9 million and $4.9 million, respectively. On August 1, 2023, GWG Holdings’ plan of reorganization was declared effective, and the Company’s investment was transferred to equity interests in the GWG Wind Down Trust (as defined herein). The interests in the GWG Wind Down Trust are reflected as an investment in other equity securities. Refer to Note 6 for a reconciliation of the gain (loss) on financial instruments, net for each of the periods presented herein.

Put Options

On April 1, 2022, Ben, through CT Risk Management, L.L.C., (“CT”) made aggregate payments of $5.0 million to purchase put options in the S&P 500 Index with an aggregate notional amount of $141.3 million. Half of the notional expires in April 2024, while the other half expires in April 2025. On April 27, 2022, CT sold an equity interest for $2.4 million to the third-party involved in a participation loan transaction described in Note 7 and utilized the proceeds to purchase additional put options similar to the put options purchased on April 1, 2022. These put options were sold in September 2023 for $1.0 million, resulting in a recognized loss of $0.7 million.

The put options were designed to protect the NAV of the interests in alternative assets, which generate the collateral to certain of the ExAlt Loans in Ben Liquidity’s loan portfolio or the loans related to the participation loan transaction and provide for distributions to the Customer ExAlt Trusts’ ultimate beneficiary, against market risk. The options were carried at fair value, which is determined using quoted market prices. Any realized gains and losses are recorded on a trade-date basis. Realized and unrealized gains and losses were recognized in gain (loss) on financial instruments, net in the consolidated statements of comprehensive income (loss).

No put options were held as of September 30, 2024 and March 31, 2024. For the three months ended September 30, 2023, Ben recognized losses of $0.7 million on the put options, of which approximately $0.3 million is attributable to Ben or Ben’s loan portfolio, with the remainder attributable principally to the loan involved in the participation loan transaction. For the six months ended September 30, 2023, Ben has recognized losses of $3.0 million on the put options, of which approximately $2.0 million is attributable to Ben or Ben’s loan portfolio, with the remainder attributable principally to the loan involved in the participation loan transaction. Refer to Note 6 for a reconciliation of the gain (loss) on financial instruments, net for each of the periods presented herein.

Debt Securities Available-for-Sale

As of September 30, 2024 and March 31, 2024, investments in debt securities represent ownership in privately held debt securities. Investments in debt securities are classified and accounted for as available-for-sale, with unrealized gains and losses presented as a separate component of equity under the accumulated other comprehensive income (loss) line item.

Prior to August 1, 2023, investments in debt securities also included ownership in corporate debt securities, specifically, L Bonds of GWG Holdings (“L Bonds”) held by certain of the Customer ExAlt Trusts. The L Bonds had a maturity date of August 8, 2023. However, upon the effectiveness of GWG Holdings’ plan of reorganization on August 1, 2023, the investments in L Bonds converted to equity interests in the GWG Wind Down Trust, which are reflected in “other equity securities and interests,” as of September 30, 2024 and March 31, 2024.

The amortized cost, estimated fair value, and unrealized gains and losses on investments in debt securities classified as available-for-sale as of September 30, 2024 and March 31, 2024 are summarized as follows:

	September 30, 2024
(Dollars in thousands)	Amortized Cost Basis		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Other debt securities	$	2,685	$	344	$	(1,060)	$	1,969
Total available-for-sale debt securities	$	2,685	$	344	$	(1,060)	$	1,969
	March 31, 2024
(Dollars in thousands)	Amortized Cost Basis		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Other debt securities	$	2,685	$	1,337	$	(1,060)	$	2,962
Total available-for-sale debt securities	$	2,685	$	1,337	$	(1,060)	$	2,962

The table below indicates the length of time individual debt securities have been in a continuous loss position as of September 30, 2024 and March 31, 2024:

	September 30, 2024				March 31, 2024
(Dollars in thousands)	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
Other debt securities:
Less than twelve months	$	—	$	—	$	—	$	—
Twelve months or longer	1,969		1,060		1,964		1,060
Total available-for-sale debt securities with unrealized losses	$	1,969	$	1,060	$	1,964	$	1,060

The noncredit-related portion of the net unrealized gains was nominal for the three and six months ended September 30, 2024, and recognized as a component of accumulated other comprehensive income (loss). The noncredit-related portion of the net unrealized losses of $0.1 million and gains of $4.2 million for the three and six months ended September 30, 2023, respectively, was recognized as a component of accumulated other comprehensive income (loss). Unrealized net gains of $13.7 million related to the Company’s previously classified available-for-sale debt securities were reclassified from accumulated other comprehensive income and recognized within the gain (loss) on financial instruments, net line item of the consolidated statements of comprehensive income(loss) during the three and six months ended September 30, 2023, respectively.

During the three and six months ended September 30, 2024, the Company determined there was $0.5 million and $1.0 million, respectively, credit-related loss on its investment in debt securities available-for-sale. During the three and six months ended September 30, 2023, the Company determined there was no credit-related loss on its investment in debt securities available-for-sale.

The following table is a rollforward of credit-related losses recognized in earnings for the periods presented below:

(Dollars in thousands)	Three Months Ended September 30,				Six Months Ended September 30,
	2024		2023		2024		2023
Balance, beginning of period	$	31,812	$	31,290	$	31,290	$	31,290
Credit related losses not previously recognized	—		—		522		—
Increase in amounts previously recognized	476		—		476		—
Balance, end of period	$	32,288	$	31,290	$	32,288	$	31,290

The contractual maturities of available-for-sale debt securities as of September 30, 2024 and March 31, 2024 are as follows:

	September 30, 2024				March 31, 2024
(Dollars in thousands)	Amortized Cost Basis		Fair Value		Amortized Cost Basis		Fair Value
Due in one year or less	$	1,687	$	1,969	$	1,687	$	1,964
No fixed maturity	998		—		998		998
	$	2,685	$	1,969	$	2,685	$	2,962

Other Equity Securities and Interests

Ben and certain of the Customer ExAlt Trusts hold investments in equity securities of private companies measured based on quoted prices for similar assets in active markets, including those of the GWG Wind Down Trust. On August 1, 2023, GWG Holdings’ plan of reorganization was declared effective and our investments in its common stock and L Bonds (previously accounted for as public equity securities and available-for-sale debt securities, respectively) were then transferred to an investment in the GWG Holdings Wind Down Trust. The fair value of these equity interests was nominal and $0.6 million as of September 30, 2024 and March 31, 2024, respectively. Refer to Note 6 for a reconciliation of the gain (loss) on financial instruments, net for each of the periods presented herein.

Additionally, certain of the Customer ExAlt Trusts hold investments in equity securities that do not have a readily determinable fair value. These equity securities are measured, using the measurement alternative for equity investments that do not have readily determinable fair values, at cost, less impairment, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer. The value of these equity securities was $26.7 million and $26.8 million as of September 30, 2024 and March 31, 2024, respectively. Refer to Note 6 for a reconciliation of the gain (loss) on financial instruments, net for each of the periods presented herein, which reflects any upward or downward adjustments to these equity securities for the periods presented herein. There were no impairments to these equity securities during the three and six months ended September 30, 2024 and 2023.

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Fair Value Measurements

6 Months Ended

Sep. 30, 2024

Fair Value Disclosures [Abstract]

Fair Value Measurements

Fair Value Measurements

Fair value is estimated based on a hierarchy that maximizes the use of observable inputs and minimizes the use of unobservable inputs. Observable inputs are inputs that reflect the assumptions that market participants would use in pricing the asset or liability developed based on market data obtained from sources independent of the reporting entity. Unobservable inputs are inputs that reflect the reporting entity’s own assumptions about the assumptions market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. The fair value hierarchy prioritizes the inputs to valuation techniques into three broad levels whereby the highest priority is given to Level 1 inputs and the lowest to Level 3 inputs.

•Level 1 - Quoted prices for identical instruments in active markets that the reporting entity has the ability to access as of the measurement date.

•Level 2 - Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations whose inputs are observable or whose significant value drivers are observable market data.

•Level 3 - Valuations for instruments with inputs that are significant and unobservable, are derived from other valuation methodologies, including option pricing models, discounted cash flow models and similar techniques, and are not based on market exchange, dealer, or broker traded transactions. Level 3 valuations incorporate certain assumptions and projections in determining the fair value assigned to such instruments.

This hierarchy requires the use of observable market data when available. A financial instrument’s categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. Investments that are valued using NAV as a practical expedient are excluded from this hierarchy.

As of September 30, 2024 and March 31, 2024, the fair value of these investments using the NAV per share practical expedient was $301.4 million and $293.9 million, respectively. During the three months ended September 30, 2024 and 2023, a gain of $8.5 million and a nominal loss, respectively, were recognized from changes in NAV, which are recorded within the investment income (loss), net, line item of our consolidated statements of comprehensive income (loss). During the six months ended September 30, 2024 and 2023, a $19.6 million gain and $0.5 million gain, respectively, was recognized from changes in NAV, which is recorded within the investment income (loss), net, line item of our consolidated statements of comprehensive income (loss).

Financial instruments on a recurring basis

The Company’s financial assets and liabilities carried at fair value on a recurring basis, including the level in the fair value hierarchy, on September 30, 2024 and March 31, 2024 are presented below.

	As of September 30, 2024
(Dollars in thousands)	Level 1		Level 2		Level 3		Total
Assets:
Public equity securities	$	4,885	$	—	$	—	$	4,885
Other equity interests	—		20		—		20
Debt securities available-for-sale, other	—		—		1,969		1,969
Liabilities:
Convertible debt	—		—		1,936		1,936
Warrants liability	213		571		—		784
	As of March 31, 2024
(Dollars in thousands)	Level 1		Level 2		Level 3		Total
Assets:
Public equity securities	$	4,897	$	—	$	—	$	4,897
Other equity interests	—		558		—		558
Debt securities available-for-sale, other	—		998		1,964		2,962
Liabilities:
Warrant liability	178		—		—		178
Prepaid forward liability	14		—		—		14

A reconciliation of gain (loss) on financial instruments, net for each of the periods presented herein is included in the tables below (in thousands):

	Three Months Ended September 30,				Six Months Ended September 30,
	2024		2023		2024		2023
Public equity securities:
Related party equity securities	$	—	$	(136)	$	—	$	(3,702)
Other public equity securities	745		(516)		(12)		(736)
Put options	—		(695)		—		(3,023)
Loss on initial issuance of convertible debt and warrant issuance to Yorkville	(1,700)		—		(1,700)		—
Convertible debt	225		—		225		—
Warrants liability	710		214		708		1,699
Prepaid forward liability	14		19		14		(73)
Derivative liability	—		163		—		1,581
Other equity securities and interests
Related party, fair value using quoted market prices of similar assets in active market (1)	(173)		(41,824)		(538)		(41,824)
Other, without a readily determinable fair value	—		—		(59)		(158)
Gain (loss) on financial instruments, net	$	(179)	$	(42,775)	$	(1,362)	$	(46,236)

(1) Includes realized net gains of $13.7 million related to the Company’s previously classified available-for-sale debt securities upon reclassification from accumulated other comprehensive income during the three and six months ended September 30, 2023.

The following is a description of the valuation methodologies used for financial instruments measured at fair value on a recurring basis:

Investment in other equity securities and interests

As of September 30, 2024 and March 31, 2024, the fair value of these equity interests is calculated using quoted prices for similar instruments observed in the equity capital markets and is classified as a Level 2 investment in the fair value hierarchy.

Investment in debt securities available-for-sale

Other debt securities. The fair value of these debt securities is calculated using the market approach adjusted for the recoverability of the security. The following table provides quantitative information about the significant unobservable inputs used in the fair value measure of the Level 3 other debt securities (dollars in thousands):

	Fair Value		Valuation Methodology	Unobservable Inputs	Range	Weighted Average
September 30, 2024	$	1,969	Market Approach	Enterprise value-to-revenue multiple	0.2x - 18.9x	1.80x
March 31, 2024	$	1,964	Market Approach	Enterprise value-to-revenue multiple	0.2x - 18.9x	1.77x

The following table reconciles the beginning and ending fair value of our Level 3 other debt securities:

(Dollars in thousands)	Three Months Ended September 30,				Six Months Ended September 30,
	2024		2023		2024		2023
Beginning balance	$	1,943	$	2,183	$	1,964	$	2,078
Gains (losses) recognized in accumulated other comprehensive income (loss)(1)	26		(104)		5		1
Ending balance	$	1,969	$	2,079	$	1,969	$	2,079

(1) Recorded in unrealized gain (loss) on available-for-sale debt securities.

Convertible Debt

The Company issued convertible debentures to Yorkville as discussed in Note 7 whereby the Company elected to account for convertible debentures under the fair value option of accounting upon issuance. The Company estimated the fair value of the convertible debentures based on assumptions used in the Monte Carlo simulation model. This fair value measure is classified as Level 3 and using the following significant inputs as of the end of the reporting period: expected term (in months) - 4.2; stock price - $1.23; discount rate - 21.7%; expected volatility: 146.4%; expected dividend rate - 0%; and risk-free rate: 4.6%.

The following is a summary of the change in the fair value of the convertible debentures for the three and six months ended September 30, 2024 and 2023:

(Dollars in thousands)	Three Months Ended September 30,				Six Months Ended September 30,
	2024		2023		2024		2023
Beginning fair value	$	—	$	—	$	—	$	—
Addition during the period	2,160		—		2,160		—
Change in fair value during the period	(224)		—		(224)		—
Ending fair value	$	1,936	$	—	$	1,936	$	—

As the fair value of the freestanding instruments identified with the convertible debentures exceeded the proceeds, a loss on issuance on convertible debentures was recognized. Refer to Note 7 for further information.

Warrants

As part of the transaction with Yorkville related to the convertible debentures discussed in Note 7, the Company also issued warrants to purchase our Class A common stock. These warrants are liability classified and subject to periodic remeasurement. The fair value of these warrants issued to Yorkville are measured using the Black-Scholes option pricing model. The key inputs used in the valuation as of the end of the reporting period are: expected terms (in years) - 2.85; stock price - $1.23; exercise price: $2.63; expected volatility: 146.4%; expected dividend rate - 0%; and risk-free rate: 3.34%.

Derivative liability

The fair value of the contingent interest feature derivative liability, as discussed in Note 7, is estimated using industry standard valuation models. Level 3 inputs were utilized to value the expected future cash flows from the portfolio held by the Customer ExAlt Trust and included the use of present value techniques employing cash flow estimates and incorporated assumptions that marketplace participants would use in estimating fair values. Specifically, the model includes assumptions related to (i) equity market risk premiums, (ii) alternative asset beta to public equities, (iii) NAVs, (iv) volatilities, (v), distribution rates, and (vi) market discount rates. These expected future cash flows were bifurcated between base cash flows and enhanced return cash flows (i.e., the contingent interest) and then the enhanced cash flows were further discounted to arrive at the fair value for the contingent interest feature derivative liability. In instances where reliable market information was not available, management used historical market data proxies and assumptions to determine a reasonable fair value.

The derivative liability was extinguished along with its related debt on October 18, 2023, as discussed in Note 7.

The following table reconciles the beginning and ending fair value of our Level 3 derivative liability:

(Dollars in thousands)	Three Months Ended September 30,		Six Months Ended September 30,
	2023			2023
Beginning balance	$	2,095		$	3,513
Gains recognized in earnings(1)	(163)			(1,581)
Ending balance	$	1,932		$	1,932

(1) Recorded in (gain) loss on financial instruments, net.

There have been no transfers between levels for any assets or liabilities recorded at fair value on a recurring basis or any changes in the valuation techniques used for measuring the fair value as of September 30, 2024 and March 31, 2024, respectively.

Financial instruments on a non-recurring basis

Equity securities without a readily determinable fair value

Certain of the Customer ExAlt Trusts hold investments in equity securities that do not have a readily determinable fair value. These equity securities are measured at cost, less impairment, plus or minus changes resulting from observable price changes in orderly transactions for an identical or a similar investment of the same issuer. The Company classifies these assets as Level 2 within the fair value hierarchy.

The value of these equity securities was $26.7 million and $26.8 million as of September 30, 2024 and March 31, 2024, respectively. Additionally, as of September 30, 2024, one security has cumulative upward adjustments of $10.8 million based upon observable price changes, which was based on a then recent equity offering and stock to stock transactions. No significant adjustments were made during the three and six months ended September 30, 2024 and 2023.

Goodwill

During the first and second quarters of fiscal 2025 and 2024, primarily as a result of a significant, sustained decline in our Class A common stock price and the Company’s related market capitalization, we concluded that it was more likely than not that the fair value of our reporting units were below their carrying amount and resulted in us performing an interim impairment assessment. As a result, we wrote the carrying value of each report unit with goodwill down to their estimated fair value and recognized a non-cash goodwill impairment charge of $0.3 million and $306.7 million during the three months ended September 30, 2024 and 2023, respectively, which is reflected in loss on impairment of goodwill in the consolidated statements of comprehensive income (loss). For the six months ended September 30, 2024 and 2023, a non-cash goodwill impairment charge of $3.7 million and $1.4 billion, respectively, was recognized in the consolidated statements of comprehensive income (loss). Prior to the goodwill impairment recorded during the first quarter of fiscal 2024, the Company had not previously recorded any impairments of goodwill.

For each interim impairment assessment, the Company computed the fair value of each reporting unit by computing the overall enterprise value of the Company by valuing its various equity instruments, primarily based on the Class A common stock price per share. The overall enterprise value was allocated to each reporting units using the discounted cash flow method to estimate the relative value of each reporting unit based on their future cash flows using a multi-year forecast, and a terminal value calculated using a long-term growth rate that was informed based on our industry, analyst reports of a public company peer set, current and expected future economic conditions and management expectations. The discount rate used to discount these future cash flows was determined using a capital asset pricing model based on the market value of equity of a public company peer set, adjusted for risk characteristics and expectations specific to the reporting unit, combined with an assessment of the cost of debt.

The discount rates used in the impairment analysis for each reporting unit ranged from: 24.8% to 25.6% for June 30, 2023 and 25.3% to 26.2% for September 30, 2023. The discount rates used for each reporting unit ranged from: 28.0% to 29.3% for June 30, 2024 and 28.0% to 29.3% for September 30, 2024. The Company applied a terminal year long-term growth rate of 3.0% for each reporting unit during each of the interim impairment assessments. Remaining goodwill at September 30, 2024 relates to Ben Custody and Ben Markets. Subsequent to the impairment analysis as of September 30, 2024, there was no excess of reporting unit fair value over carrying value for Ben Custody and approximately $0.4 million of reporting unit fair value over carrying value for Ben Markets.

The change in goodwill at each reporting unit was as follows:

	March 31, 2024		Impairment		September 30, 2024
Ben Liquidity	$	—	$	—	$	—
Ben Custody	10,896		(3,427)		7,469
Ben Insurance	—		—		—
Ben Markets	2,710		(265)		2,445
Total Goodwill	$	13,606	$	(3,692)	$	9,914

There were no other assets or liabilities measured at fair value on a non-recurring basis as of September 30, 2024 and March 31, 2024.

Carrying amounts and estimated fair values

The estimated fair value of financial instruments, whether or not recognized in the consolidated statements of financial condition, for which it is practicable to estimate those values, are disclosed below. These fair value estimates are determined based on relevant market information and information about the financial instruments. Fair value estimates are intended to

represent the price at which an asset could be sold or the price at which a liability could be transferred. However, our estimates of many of these fair values are subjective in nature, involve uncertainties and matters of significant judgment and therefore cannot be determined with precision. Changes in assumptions could significantly affect the estimated values. Nonfinancial instruments are excluded from disclosure requirements.

The carrying amounts and estimated fair values of the Company’s financial instruments not recorded at fair value as of September 30, 2024 and March 31, 2024, were as noted in the table below:

	As of September 30, 2024
(Dollars in thousands)	Level in Fair Value Hierarchy	Carrying Amount		Estimated Fair Value
Financial assets:
Cash and cash equivalents	1	$	4,482	$	4,482
Restricted cash	1	314		314
Financial liabilities:
Debt due to related parties, net	2	122,117		138,919
Accounts payable and accrued expenses	1	112,494		112,494

	As of March 31, 2024
(Dollars in thousands)	Level in Fair Value Hierarchy	Carrying Amount		Estimated Fair Value
Financial assets:
Cash and cash equivalents	1	$	7,913	$	7,913
Restricted cash	1	64		64
Financial liabilities:
Debt due to related parties, net	2	120,505		129,327
Accounts payable and accrued expenses	1	157,157		157,157

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Debt

6 Months Ended

Sep. 30, 2024

Debt Disclosure [Abstract]

Debt

Debt

Customer ExAlt Trust Loan Payable

On March 24, 2022, Ben Liquidity transferred a $72.5 million ExAlt Loan to a third-party in return for $72.5 million of cash. The loan participation transaction resulted in a third party holding the transferred ExAlt Loan, which was previously eliminated in consolidation against the loan payable issued by a Customer ExAlt Trust for financial reporting purposes. Accordingly, the loan payable issued by the Customer ExAlt Trusts is no longer eliminated upon consolidation for financial reporting purposes and is reflected in the Customer ExAlt Trust loan payable line item on the consolidated statements of financial condition.

The Customer ExAlt Trust loan payable does not have scheduled principal or interest payments due prior to its maturity date of December 7, 2033. Prepayment of the loans, in whole or in part, is permitted without premium or penalty. A pro-rata portion of the cash flows from $352.6 million of alternative assets acquired by the Customer ExAlt Trusts on December 7, 2021 (the “Acquired Assets”) are the sole source of cash flows to be used by the Customer ExAlt Trusts to satisfy its obligations under the terms of the loan agreement. The percentage of the Acquired Assets allocated to supporting the repayment of the Customer ExAlt Trust loan payable amounted to approximately 27.8% (the “Participation Allocation”). Ben and its subsidiaries have no obligation or other requirements to repay the Customer ExAlt Trust loan payable should the pro-rata cash flows from the $352.6 million of alternative assets associated with the loan be insufficient to pay all contractual obligations owed under the terms of the loan agreement. The Customer ExAlt Trust loan payable bears interest at 12% per annum.

Termination of Customer ExAlt Trust Loan Payable

On October 18, 2023, the applicable Customer ExAlt Trusts distributed, transferred and assigned the Participation Allocation (net of a qualified charitable distribution) to a subsidiary of the holder of the Customer ExAlt Trust loan payable. As a result, all obligations owed under the Customer ExAlt Trust loan payable have been repaid and the related participation interest no longer remains outstanding. As such, the Customer ExAlt Trusts repaid the entire outstanding principal balance of the ExAlt Trust Loan Payable of $50.9 million including interest paid-in-kind, by transferring $56.7 million of alternative assets. The

payoff of the Customer ExAlt Trust Loan Payable was accounted for as a debt extinguishment in accordance with ASC 470, Debt.

The loan agreement included a contingent interest feature whereby additional interest could be owed up to a maximum rate of 21% under certain circumstances, dependent principally on the cash flows generated by the pro rata portion of the underlying collateral. As the contingent interest feature was not based on creditworthiness, such feature was not clearly and closely related to the host instrument and was therefore bifurcated and recognized as a derivative liability with a resulting debt discount at inception. The change in the fair value of the contingent interest derivative liability resulted in a net gain of $0.2 million and $1.6 million that is reflected in gain (loss) on financial instruments, net in the consolidated statements of comprehensive income (loss) for the three and six months ended September 30, 2023, respectively. The amortization of the debt discount, which is reflected as a component of interest expense in the consolidated statements of comprehensive income (loss), was $0.2 million and $0.5 million for the three and six months ended September 30, 2023, respectively.

Convertible Debentures

On August 6, 2024, the Company, entered into a securities purchase agreement with Yorkville, in connection with the issuance and sale of convertible debentures in an aggregate principal amount of up to $4.0 million (the “Convertible Debentures”), which will be convertible into shares of the Company’s Class A common stock (as converted, the “Conversion Shares”). The Company issued $2.0 million in aggregate principal amount of Convertible Debentures upon the signing the Purchase Agreement (the “First Closing”) for proceeds of approximately $1.8 million. The Company will issue an additional $2.0 million in aggregate principal amount of Convertible Debentures for proceeds of approximately $1.8 million on or before the first business day after the date the registration statement with the SEC registering the resale of the Conversion Shares and the Warrant Shares (as defined below) is declared effective by the SEC (the “Second Closing”). The Second Closing had not occurred as of September 30, 2024. The Convertible Debentures were or will be issued at an original issue discount of 10%.

The Convertible Debentures do not bear interest, subject to a potential increase to 18.0% per annum (or the maximum amount permitted by applicable law) upon the occurrence of certain events of default. The Convertible Debentures will mature on February 6, 2025 (the “Maturity Date”). The Company will be required to make monthly cash payments of principal in the amount of $1.3 million (or such lesser amount as may then be outstanding) plus all accrued and unpaid interest as of such payment. Such payments will commence 30 days following the Second Closing and will continue on a monthly basis thereafter until the Convertible Debentures are repaid in full, subject to certain conditions as described in the Convertible Debenture. The Convertible Debentures are convertible at the option of the holder into Class A common stock equal to the applicable Conversion Amount (as in the Convertible Debenture) divided by $3.018 (the “Conversion Price”). The maximum amount of shares issuable upon conversion of the Convertible Debentures is 1,325,382.

The Convertible Debenture provides the Company, subject to certain conditions, with an optional redemption right pursuant to which the Company, upon 10 trading days’ prior written notice to Yorkville (the “Redemption Notice”), may redeem in cash, in whole or in part, all amounts outstanding under the Convertible Debentures prior to the Maturity Date; provided that the volume weighted average price on the date such Redemption Notice is delivered is less than the Conversion Price at the time of the Redemption Notice. The redemption amount shall be equal to the outstanding principal balance being redeemed by the Company, plus the redemption premium of 10% of the principal amount being redeemed, plus all accrued and unpaid interest in respect of such redeemed principal amount.

Additionally, pursuant to the terms of the Purchase Agreement, the Company agreed to issue the warrants to Yorkville (each a “Yorkville Warrant” and collectively, the “Yorkville Warrants”) to purchase up to 1,325,382 shares of Class A common stock at an exercise price of $2.63, which shall be exercisable into Class A common stock for cash (collectively, the “Warrant Shares”). At the First Closing, the Company issued a Yorkville Warrant to purchase up to 662,691 shares of Class A common stock, and at the Second Closing, the Company will issue an additional Yorkville Warrant to purchase up to 662,691 shares of Class A common stock.

Contemporaneously with the execution and delivery of the Purchase Agreement, certain of the Company’s subsidiaries entered into a global guaranty agreement in favor of Yorkville with respect to the Company’s obligations under the Purchase Agreement, the Convertible Debentures and the Yorkville Warrants.

The Company elected to account for the Convertible Debenture under the fair value option of accounting upon issuance. The proceeds were allocated to all freestanding instruments recorded at fair value. As the fair value of the freestanding instruments exceeded the proceeds, an aggregate loss of $1.7 million during the three and six months ended September 30, 2024 was recognized in gain (loss) on financial instruments, net in the consolidated statements of comprehensive income (loss). As of September 30, 2024, the fair value of the Convertible Debenture was $1.9 million and is included in convertible debt in the consolidated statements of financial condition.

The primary reason for electing the fair value option is for simplification of accounting for the Convertible Debenture at fair value in its entirety versus bifurcation of the embedded derivatives. The fair value was determined using a Monte Carlo valuation model. Refer to Note 6 for further information on the Convertible Debentures.

The Yorkville Warrants were required to be classified as a liability and are subject to periodic remeasurement. The fair value at the date of issuance, measured using the Black-Scholes option pricing model, was approximately $1.3 million. The key inputs used in the valuation as of the initial valuation date were: expected terms (in years) - 3.0; stock price - $2.63; exercise price: $2.63 expected volatility: 130.2%; expected dividend rate: 0%; and risk-free rate: 3.58%.

Debt Due to Related Parties

As of September 30, 2024 and March 31, 2024, the Company’s debt due to related parties consisted of the following:

(Dollars in thousands)	September 30, 2024		March 31, 2024
First Lien Credit Agreement	$	21,260	$	21,264
Second Lien Credit Agreement	72,983		72,996
Term Loan	26,475		25,000
Other borrowings	2,235		2,180
Unamortized debt discount, net	(836)		(935)
Total debt due to related parties	$	122,117	$	120,505

First and Second Lien Credit Agreements

On August 13, 2020, Ben, through its subsidiary Beneficient Capital Company II, L.L.C. (formerly known as Beneficient Capital Company, L.L.C.) (“BCC”), executed the Second Amended and Restated First Lien Credit Agreement (“First Lien Credit Agreement”) and the Second Amended and Restated Second Lien Credit Agreement (“Second Lien Credit Agreement”) collectively, (the “Second A&R Agreements”) with its lender, HCLP Nominees, L.L.C (“HCLP”), to amend its First Lien Credit Agreement and Second Lien Credit Agreement dated September 1, 2017 and December 28, 2018, respectively. The Second A&R Agreements have been further amended from time to time to extend the maturity date and defer principal and interest payments, among other things. In connection with the amendments to the Second A&R Agreements, Ben agreed to pay extension fees on a percentage of the amount outstanding under the credit agreements as of the date of the respective amendment.

On March 24, 2022, Ben executed Consents and Amendments No. 4 to the Second A&R Agreements with HCLP, which, among other things, (i) deferred the payment of accrued and unpaid interest to March 24, 2022, (ii) evidenced the terms agreed to in the December 1, 2021 term sheet, (iii) extended the maturity date of the loans to August 31, 2023, and (iv) established revised installment payments for each loan of $5.0 million due on May 10, 2022, August 10, 2022, December 10, 2022, and March 10, 2023, so long as each payment does not cause the Company to incur a going concern, and (v) amended the occurrence of an event of default to require notice from HCLP on almost all potential defaults listed under the Second A&R Agreements. In addition, Ben agreed to pay fees totaling approximately 6.5% of the outstanding principal before giving effect to the amendments.

On February 15, 2023, Ben executed those certain Amendment No. 5 to Second Amended and Restated Credit Agreement and Consent and Amendment No. 5 to Second Amended and Restated Second Lien Credit Agreement with HCLP, pursuant to which, as required by Amendments No. 4, certain Ben subsidiaries became subsidiary guarantors and entered into those certain Amended and Restated Security and Pledge Agreement (First Lien) and Amended and Restated Security and Pledge Agreement (Second Lien), that certain first lien Guaranty and that certain second lien Guaranty.

On June 5, 2023, BCH, entered into those certain Consent and Amendment No. 6 to Second Amended and Restated Credit Agreement, which amended the First Lien Credit Agreement, and Consent and Amendment No. 6 to Second Amended and

Restated Second Lien Credit Agreement (collectively, the “Sixth Amendments”), which amended the Second Lien Credit Agreement, each among BCH, HCLP and the other parties thereto. Among other things, the Sixth Amendments (i) allowed for the consummation of the Transactions pursuant to the Business Combination Agreement, and effective as June 7, 2023 (ii) amended the definition of “Change of Control” (as defined therein), and (iii) provided that Beneficient will be the “Parent” thereunder.

On July 12, 2023, BCH, entered into (a) that certain Amendment No. 7 to the First Lien Amendment, which amended the First Lien Credit Agreement, and (b) that certain Amendment No. 7 to Second Lien Amendment (together with the First Lien Amendment, the “Seventh Amendments”), which amended the Second Lien Credit Agreement, each among BCH, HCLP and the other parties thereto. Among other things, the Seventh Amendments (i) modified the interest rate to a fixed rate of 9.5%, (ii) extended the maturity dates of the First Lien Amendment and the Second Lien Amendment to September 15, 2024 and September 15, 2027, respectively, and (iii) agreed to installment payments on the First Lien Amendment of $5.0 million on each of March 29th, June 28th, September 29th, and December 29th of each year for so long as the obligations remain outstanding, and so long as such payments do not cause a going concern. No payments will be made on the Second Lien Amendment until the obligations on the First Lien Amendment have been fully satisfied. Effective on July 31, 2024, the maturity date of the First Lien Credit Agreement was extended from September 15, 2024 to February 1, 2025, and certain mandatory prepayment obligations thereunder were waived by HCLP until February 1, 2025. No payments of principal or interest have been made on the First Lien or Second Lien Credit Agreements since an interest payment made in March 2023. Accrued interest on the First Lien or Second Lien Credit Agreements of $14.1 million as of September 30, 2024 and $9.5 million as of March 31, 2024 is included in other liabilities in the consolidated statement of financial condition.

As part of the Seventh Amendments, Ben agreed to pay fees totaling approximately $0.1 million. During the six months ended September 30, 2024 and 2023, no deferred financing costs were paid to HCLP. As of September 30, 2024 and March 31, 2024, the unamortized premium related to the Second A&R Agreements was $0.4 million and $0.5 million, respectively. Through September 30, 2024, all required principal and interest payments due under the Second A&R Agreements have been paid.

In connection with the Second A&R Agreements, Beneficient Holdings, Inc. (“BHI”), which owns a majority of the BCH Class S Ordinary Units, BCH Preferred A.1, and FLP Subclass 1 Unit Accounts issued by BCH, will grant certain tax-related concessions to HCLP as may be mutually agreed upon between the parties. In exchange for the tax-related concessions, 5.0% of BHI’s BCH Preferred A.1, which will be held by HCLP, may convert to BCH Preferred A.0. In addition, recipients of a grant of BCH Preferred A.1 from BHI will have the right to put an amount of BCH Preferred A.1 to Ben equal to any associated tax liability stemming from any such grant; provided that the aggregated associated tax liability shall not relate to more than $30.0 million of grants of BCH Preferred A.1 from BHI. No such liability existed as of September 30, 2024 and March 31, 2024.

The Second A&R Agreements and ancillary documents contain covenants that (i) prevent Ben from issuing any securities senior to the BCH Preferred A.0 or BCH Preferred A.1; (ii) prevent Ben from incurring additional debt or borrowings greater than $10.0 million, other than trade payables, while the loans are outstanding; and (iii) prevent, without the written consent of HCLP, GWG Holdings from selling, transferring, or otherwise disposing of any BCH Preferred A.1 held as of May 15, 2020, other than to its subsidiary GWG DLP Funding V, LLC. GWG no longer holds any BCH Preferred A.1 Unit Accounts. Ben obtained consents for the Second A&R Agreements from HCLP in connection with the HH-BDH Credit Agreement (as defined below).

Term Loan

On October 19, 2023, Beneficient Financing, L.L.C. (the “Borrower”), a wholly owned subsidiary of the Company, and BCH, as guarantor (the “Guarantor” and together with the Borrower, the “Loan Parties”), entered into a Credit and Guaranty Agreement (as amended, the “HH-BDH Credit Agreement”) with HH-BDH L.L.C. (the “HH-BDH”), as administrative agent. HH-BDH’s sole member is Hicks Holdings. The managing member of Hicks Holdings is Mr. Thomas O. Hicks, a member of the Company’s Board of Directors. HH-BDH funded the amounts under the HH-BDH Credit Agreement with the proceeds of a third-party financing (the “Financing”).

The HH-BDH Credit Agreement provides for a three-year term loan in the aggregate principal amount of $25.0 million (the “Term Loan”), which was fully drawn on closing. On August 16, 2024, that certain Amendment No. 1 and Waiver No. 1 to the Credit and Guaranty Agreement and Each Other Loan Document (the “Amendment,” and the Credit Agreement, as amended by the Amendment, the “Amended Credit Agreement”), was executed to add a subsequent term loan of $1.7 million, which was fully drawn upon the closing of the Amendment (together with the Term Loan, the “Loans”).

The Amended Credit Agreement also requires the Borrower to prepay the outstanding principal balance of the Loans in the amount of $200 thousand, $200 thousand, $200 thousand, $200 thousand and $875 thousand on each of September 7, 2024, October 7, 2024, November 7, 2024, December 7, 2024 and December 31, 2024, respectively. Furthermore, on each Required

Payment Date (defined in the Amended Credit Agreement as December 31, 2024 and the last business day of each calendar month thereafter), the Borrower shall prepay the outstanding principal balance of the Loans by an amount equal to the lesser of (a) the Total Portfolio Net Receipts (as defined in the Amended Credit Agreement) for the most recently ended period beginning on the 16th day of each month and ending on the 15th day of the immediately following month, and (b) as of each Required Payment Date, an amount equal to the excess, if any, of (x)(i) the number of Required Payment Dates occurring on or prior to such Required Payment Date, multiplied by (ii) $500,000, minus (y) the amount of all Excess Payments (as defined in the Amended Credit Agreement) made prior to such Required Payment Date. Additionally, the Amended Credit Agreement requires the Borrower to make certain minimum monthly payments to prepay the balance of the Loans.

Borrowings under the HH-BDH Credit Agreement, as amended, bear interest, at the Company’s option, calculated according to a base rate, adjusted term SOFR rate, or adjusted daily simple SOFR rate, plus an applicable margin, subject to a Maximum Rate determined by applicable law in the State of New York. The Company elected the adjusted daily simple SOFR rate with a margin of 6.5% for the first two years and 5.5% for the third year for the Loans. Accrued and unpaid interest is payable monthly, upon prepayment, and at maturity.

The Loans will mature on October 19, 2026, and all remaining outstanding principal amounts and accrued and unpaid interest thereon shall be due and payable on such date. As of September 30, 2024 and March 31, 2024, the unamortized discount related to the Term Loan was $1.2 million and $1.5 million, respectively.

The Term Loan is secured in part by pledges of: (a) substantially all of the assets of the Borrower, (b) the Guarantor’s equity interests in the Borrower, (c) 97.5% of the equity interests held by The EP-00117 Custody Trust, a Delaware statutory trust known as the “Custody Trust,” in certain entities that hold interests in private investment funds, which, as of September 30, 2024 and March 31, 2024, represented approximately 39.1% and 41.5%, respectively, of all assets held by the Customer ExAlt Trusts and (d) certain deposit accounts.

The HH-BDH Credit Agreement, as amended, contains customary representations, warranties, affirmative and negative covenants, including covenants which restrict the ability of the Loan Parties, the Custody Trust and certain affiliated entities to, among other things, create liens, incur additional indebtedness, make certain restricted payments and engage in certain other transactions, in each case subject to certain customary exceptions. In addition, the HH-BDH Credit Agreement, as amended, contains certain financial maintenance covenants, including a debt service coverage ratio of 2.00 to 1.00 and beginning December 31, 2024, a minimum liquidity requirement of $4.0 million, measured on the last day of each month.

Additionally, the HH-BDH Credit Agreement, as amended, contains customary events of default relating to, among other things, payment defaults, breach of covenants, cross default of material indebtedness, bankruptcy-related defaults, judgment defaults, the occurrence of certain change of control events, and the Class A common stock being suspended from trading for more than two consecutive days or delisting from Nasdaq. The occurrence of an event of default may result in the acceleration of repayment obligations with respect to any outstanding principal amounts and foreclosure on the collateral. As part of the Amendment, certain events of default resulting from the occurrence of the Acknowledged Defaults (as defined in the Amendment) were waived, provided that in the case of the expense reimbursement default, the Borrower must cure the expense reimbursement default upon the earlier of (i) November 1, 2024 and (ii) two business days following the effectiveness of Company’s registration statement for resale of the shares of Class A common stock, underlying the convertible debentures and warrants described in Note 7.

Hicks Holdings will receive the following fees and payments in connection with the Loans:

•A non-refundable fee in an amount equal to 1.0% of the aggregate commitments under the Term Loan upon execution of the HH-BDH Credit Agreement (the “Closing Date”);

•On each Payment Date, from and including: (1) from the Closing Date until the second anniversary of the Closing Date, an interest payment at an interest rate equal to 3.0% per annum; and (2) from the second anniversary of the Closing Date until the loans are repaid in full, interest payments at an interest rate equal to 2.0% per annum (such interest is in included in HH-BDH’s receipt of interest payments as described above);

•If any amounts under the HH-BDH Credit Agreement are prepaid prior to the scheduled Make Whole Date, including by reason of acceleration, a make-whole payment equal to the product of the principal amounts being repaid and the applicable interest rate plus 3.0% and the number of calendar days between the date of such prepayment and the scheduled Make Whole Date, divided by 360; and

•Certain fees, payments and expenses incurred by Hicks Holdings in connection with the Financing.

Aggregate maturities of principal on the debt due to related parties for the next five fiscal years ending March 31 are as follows:

(Dollars in thousands)	Debt Due to Related Parties
2025	$	23,495
2026	—
2027	26,475
2028	72,983
2029	—

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Debt Due to Related Parties

6 Months Ended

Sep. 30, 2024

Debt Disclosure [Abstract]

Debt Due to Related Parties

Debt

Customer ExAlt Trust Loan Payable

On March 24, 2022, Ben Liquidity transferred a $72.5 million ExAlt Loan to a third-party in return for $72.5 million of cash. The loan participation transaction resulted in a third party holding the transferred ExAlt Loan, which was previously eliminated in consolidation against the loan payable issued by a Customer ExAlt Trust for financial reporting purposes. Accordingly, the loan payable issued by the Customer ExAlt Trusts is no longer eliminated upon consolidation for financial reporting purposes and is reflected in the Customer ExAlt Trust loan payable line item on the consolidated statements of financial condition.

The Customer ExAlt Trust loan payable does not have scheduled principal or interest payments due prior to its maturity date of December 7, 2033. Prepayment of the loans, in whole or in part, is permitted without premium or penalty. A pro-rata portion of the cash flows from $352.6 million of alternative assets acquired by the Customer ExAlt Trusts on December 7, 2021 (the “Acquired Assets”) are the sole source of cash flows to be used by the Customer ExAlt Trusts to satisfy its obligations under the terms of the loan agreement. The percentage of the Acquired Assets allocated to supporting the repayment of the Customer ExAlt Trust loan payable amounted to approximately 27.8% (the “Participation Allocation”). Ben and its subsidiaries have no obligation or other requirements to repay the Customer ExAlt Trust loan payable should the pro-rata cash flows from the $352.6 million of alternative assets associated with the loan be insufficient to pay all contractual obligations owed under the terms of the loan agreement. The Customer ExAlt Trust loan payable bears interest at 12% per annum.

Termination of Customer ExAlt Trust Loan Payable

On October 18, 2023, the applicable Customer ExAlt Trusts distributed, transferred and assigned the Participation Allocation (net of a qualified charitable distribution) to a subsidiary of the holder of the Customer ExAlt Trust loan payable. As a result, all obligations owed under the Customer ExAlt Trust loan payable have been repaid and the related participation interest no longer remains outstanding. As such, the Customer ExAlt Trusts repaid the entire outstanding principal balance of the ExAlt Trust Loan Payable of $50.9 million including interest paid-in-kind, by transferring $56.7 million of alternative assets. The

payoff of the Customer ExAlt Trust Loan Payable was accounted for as a debt extinguishment in accordance with ASC 470, Debt.

The loan agreement included a contingent interest feature whereby additional interest could be owed up to a maximum rate of 21% under certain circumstances, dependent principally on the cash flows generated by the pro rata portion of the underlying collateral. As the contingent interest feature was not based on creditworthiness, such feature was not clearly and closely related to the host instrument and was therefore bifurcated and recognized as a derivative liability with a resulting debt discount at inception. The change in the fair value of the contingent interest derivative liability resulted in a net gain of $0.2 million and $1.6 million that is reflected in gain (loss) on financial instruments, net in the consolidated statements of comprehensive income (loss) for the three and six months ended September 30, 2023, respectively. The amortization of the debt discount, which is reflected as a component of interest expense in the consolidated statements of comprehensive income (loss), was $0.2 million and $0.5 million for the three and six months ended September 30, 2023, respectively.

Convertible Debentures

On August 6, 2024, the Company, entered into a securities purchase agreement with Yorkville, in connection with the issuance and sale of convertible debentures in an aggregate principal amount of up to $4.0 million (the “Convertible Debentures”), which will be convertible into shares of the Company’s Class A common stock (as converted, the “Conversion Shares”). The Company issued $2.0 million in aggregate principal amount of Convertible Debentures upon the signing the Purchase Agreement (the “First Closing”) for proceeds of approximately $1.8 million. The Company will issue an additional $2.0 million in aggregate principal amount of Convertible Debentures for proceeds of approximately $1.8 million on or before the first business day after the date the registration statement with the SEC registering the resale of the Conversion Shares and the Warrant Shares (as defined below) is declared effective by the SEC (the “Second Closing”). The Second Closing had not occurred as of September 30, 2024. The Convertible Debentures were or will be issued at an original issue discount of 10%.

The Convertible Debentures do not bear interest, subject to a potential increase to 18.0% per annum (or the maximum amount permitted by applicable law) upon the occurrence of certain events of default. The Convertible Debentures will mature on February 6, 2025 (the “Maturity Date”). The Company will be required to make monthly cash payments of principal in the amount of $1.3 million (or such lesser amount as may then be outstanding) plus all accrued and unpaid interest as of such payment. Such payments will commence 30 days following the Second Closing and will continue on a monthly basis thereafter until the Convertible Debentures are repaid in full, subject to certain conditions as described in the Convertible Debenture. The Convertible Debentures are convertible at the option of the holder into Class A common stock equal to the applicable Conversion Amount (as in the Convertible Debenture) divided by $3.018 (the “Conversion Price”). The maximum amount of shares issuable upon conversion of the Convertible Debentures is 1,325,382.

The Convertible Debenture provides the Company, subject to certain conditions, with an optional redemption right pursuant to which the Company, upon 10 trading days’ prior written notice to Yorkville (the “Redemption Notice”), may redeem in cash, in whole or in part, all amounts outstanding under the Convertible Debentures prior to the Maturity Date; provided that the volume weighted average price on the date such Redemption Notice is delivered is less than the Conversion Price at the time of the Redemption Notice. The redemption amount shall be equal to the outstanding principal balance being redeemed by the Company, plus the redemption premium of 10% of the principal amount being redeemed, plus all accrued and unpaid interest in respect of such redeemed principal amount.

Additionally, pursuant to the terms of the Purchase Agreement, the Company agreed to issue the warrants to Yorkville (each a “Yorkville Warrant” and collectively, the “Yorkville Warrants”) to purchase up to 1,325,382 shares of Class A common stock at an exercise price of $2.63, which shall be exercisable into Class A common stock for cash (collectively, the “Warrant Shares”). At the First Closing, the Company issued a Yorkville Warrant to purchase up to 662,691 shares of Class A common stock, and at the Second Closing, the Company will issue an additional Yorkville Warrant to purchase up to 662,691 shares of Class A common stock.

Contemporaneously with the execution and delivery of the Purchase Agreement, certain of the Company’s subsidiaries entered into a global guaranty agreement in favor of Yorkville with respect to the Company’s obligations under the Purchase Agreement, the Convertible Debentures and the Yorkville Warrants.

The Company elected to account for the Convertible Debenture under the fair value option of accounting upon issuance. The proceeds were allocated to all freestanding instruments recorded at fair value. As the fair value of the freestanding instruments exceeded the proceeds, an aggregate loss of $1.7 million during the three and six months ended September 30, 2024 was recognized in gain (loss) on financial instruments, net in the consolidated statements of comprehensive income (loss). As of September 30, 2024, the fair value of the Convertible Debenture was $1.9 million and is included in convertible debt in the consolidated statements of financial condition.

The primary reason for electing the fair value option is for simplification of accounting for the Convertible Debenture at fair value in its entirety versus bifurcation of the embedded derivatives. The fair value was determined using a Monte Carlo valuation model. Refer to Note 6 for further information on the Convertible Debentures.

The Yorkville Warrants were required to be classified as a liability and are subject to periodic remeasurement. The fair value at the date of issuance, measured using the Black-Scholes option pricing model, was approximately $1.3 million. The key inputs used in the valuation as of the initial valuation date were: expected terms (in years) - 3.0; stock price - $2.63; exercise price: $2.63 expected volatility: 130.2%; expected dividend rate: 0%; and risk-free rate: 3.58%.

Debt Due to Related Parties

As of September 30, 2024 and March 31, 2024, the Company’s debt due to related parties consisted of the following:

(Dollars in thousands)	September 30, 2024		March 31, 2024
First Lien Credit Agreement	$	21,260	$	21,264
Second Lien Credit Agreement	72,983		72,996
Term Loan	26,475		25,000
Other borrowings	2,235		2,180
Unamortized debt discount, net	(836)		(935)
Total debt due to related parties	$	122,117	$	120,505

First and Second Lien Credit Agreements

On August 13, 2020, Ben, through its subsidiary Beneficient Capital Company II, L.L.C. (formerly known as Beneficient Capital Company, L.L.C.) (“BCC”), executed the Second Amended and Restated First Lien Credit Agreement (“First Lien Credit Agreement”) and the Second Amended and Restated Second Lien Credit Agreement (“Second Lien Credit Agreement”) collectively, (the “Second A&R Agreements”) with its lender, HCLP Nominees, L.L.C (“HCLP”), to amend its First Lien Credit Agreement and Second Lien Credit Agreement dated September 1, 2017 and December 28, 2018, respectively. The Second A&R Agreements have been further amended from time to time to extend the maturity date and defer principal and interest payments, among other things. In connection with the amendments to the Second A&R Agreements, Ben agreed to pay extension fees on a percentage of the amount outstanding under the credit agreements as of the date of the respective amendment.

On March 24, 2022, Ben executed Consents and Amendments No. 4 to the Second A&R Agreements with HCLP, which, among other things, (i) deferred the payment of accrued and unpaid interest to March 24, 2022, (ii) evidenced the terms agreed to in the December 1, 2021 term sheet, (iii) extended the maturity date of the loans to August 31, 2023, and (iv) established revised installment payments for each loan of $5.0 million due on May 10, 2022, August 10, 2022, December 10, 2022, and March 10, 2023, so long as each payment does not cause the Company to incur a going concern, and (v) amended the occurrence of an event of default to require notice from HCLP on almost all potential defaults listed under the Second A&R Agreements. In addition, Ben agreed to pay fees totaling approximately 6.5% of the outstanding principal before giving effect to the amendments.

On February 15, 2023, Ben executed those certain Amendment No. 5 to Second Amended and Restated Credit Agreement and Consent and Amendment No. 5 to Second Amended and Restated Second Lien Credit Agreement with HCLP, pursuant to which, as required by Amendments No. 4, certain Ben subsidiaries became subsidiary guarantors and entered into those certain Amended and Restated Security and Pledge Agreement (First Lien) and Amended and Restated Security and Pledge Agreement (Second Lien), that certain first lien Guaranty and that certain second lien Guaranty.

On June 5, 2023, BCH, entered into those certain Consent and Amendment No. 6 to Second Amended and Restated Credit Agreement, which amended the First Lien Credit Agreement, and Consent and Amendment No. 6 to Second Amended and

Restated Second Lien Credit Agreement (collectively, the “Sixth Amendments”), which amended the Second Lien Credit Agreement, each among BCH, HCLP and the other parties thereto. Among other things, the Sixth Amendments (i) allowed for the consummation of the Transactions pursuant to the Business Combination Agreement, and effective as June 7, 2023 (ii) amended the definition of “Change of Control” (as defined therein), and (iii) provided that Beneficient will be the “Parent” thereunder.

On July 12, 2023, BCH, entered into (a) that certain Amendment No. 7 to the First Lien Amendment, which amended the First Lien Credit Agreement, and (b) that certain Amendment No. 7 to Second Lien Amendment (together with the First Lien Amendment, the “Seventh Amendments”), which amended the Second Lien Credit Agreement, each among BCH, HCLP and the other parties thereto. Among other things, the Seventh Amendments (i) modified the interest rate to a fixed rate of 9.5%, (ii) extended the maturity dates of the First Lien Amendment and the Second Lien Amendment to September 15, 2024 and September 15, 2027, respectively, and (iii) agreed to installment payments on the First Lien Amendment of $5.0 million on each of March 29th, June 28th, September 29th, and December 29th of each year for so long as the obligations remain outstanding, and so long as such payments do not cause a going concern. No payments will be made on the Second Lien Amendment until the obligations on the First Lien Amendment have been fully satisfied. Effective on July 31, 2024, the maturity date of the First Lien Credit Agreement was extended from September 15, 2024 to February 1, 2025, and certain mandatory prepayment obligations thereunder were waived by HCLP until February 1, 2025. No payments of principal or interest have been made on the First Lien or Second Lien Credit Agreements since an interest payment made in March 2023. Accrued interest on the First Lien or Second Lien Credit Agreements of $14.1 million as of September 30, 2024 and $9.5 million as of March 31, 2024 is included in other liabilities in the consolidated statement of financial condition.

As part of the Seventh Amendments, Ben agreed to pay fees totaling approximately $0.1 million. During the six months ended September 30, 2024 and 2023, no deferred financing costs were paid to HCLP. As of September 30, 2024 and March 31, 2024, the unamortized premium related to the Second A&R Agreements was $0.4 million and $0.5 million, respectively. Through September 30, 2024, all required principal and interest payments due under the Second A&R Agreements have been paid.

In connection with the Second A&R Agreements, Beneficient Holdings, Inc. (“BHI”), which owns a majority of the BCH Class S Ordinary Units, BCH Preferred A.1, and FLP Subclass 1 Unit Accounts issued by BCH, will grant certain tax-related concessions to HCLP as may be mutually agreed upon between the parties. In exchange for the tax-related concessions, 5.0% of BHI’s BCH Preferred A.1, which will be held by HCLP, may convert to BCH Preferred A.0. In addition, recipients of a grant of BCH Preferred A.1 from BHI will have the right to put an amount of BCH Preferred A.1 to Ben equal to any associated tax liability stemming from any such grant; provided that the aggregated associated tax liability shall not relate to more than $30.0 million of grants of BCH Preferred A.1 from BHI. No such liability existed as of September 30, 2024 and March 31, 2024.

The Second A&R Agreements and ancillary documents contain covenants that (i) prevent Ben from issuing any securities senior to the BCH Preferred A.0 or BCH Preferred A.1; (ii) prevent Ben from incurring additional debt or borrowings greater than $10.0 million, other than trade payables, while the loans are outstanding; and (iii) prevent, without the written consent of HCLP, GWG Holdings from selling, transferring, or otherwise disposing of any BCH Preferred A.1 held as of May 15, 2020, other than to its subsidiary GWG DLP Funding V, LLC. GWG no longer holds any BCH Preferred A.1 Unit Accounts. Ben obtained consents for the Second A&R Agreements from HCLP in connection with the HH-BDH Credit Agreement (as defined below).

Term Loan

On October 19, 2023, Beneficient Financing, L.L.C. (the “Borrower”), a wholly owned subsidiary of the Company, and BCH, as guarantor (the “Guarantor” and together with the Borrower, the “Loan Parties”), entered into a Credit and Guaranty Agreement (as amended, the “HH-BDH Credit Agreement”) with HH-BDH L.L.C. (the “HH-BDH”), as administrative agent. HH-BDH’s sole member is Hicks Holdings. The managing member of Hicks Holdings is Mr. Thomas O. Hicks, a member of the Company’s Board of Directors. HH-BDH funded the amounts under the HH-BDH Credit Agreement with the proceeds of a third-party financing (the “Financing”).

The HH-BDH Credit Agreement provides for a three-year term loan in the aggregate principal amount of $25.0 million (the “Term Loan”), which was fully drawn on closing. On August 16, 2024, that certain Amendment No. 1 and Waiver No. 1 to the Credit and Guaranty Agreement and Each Other Loan Document (the “Amendment,” and the Credit Agreement, as amended by the Amendment, the “Amended Credit Agreement”), was executed to add a subsequent term loan of $1.7 million, which was fully drawn upon the closing of the Amendment (together with the Term Loan, the “Loans”).

The Amended Credit Agreement also requires the Borrower to prepay the outstanding principal balance of the Loans in the amount of $200 thousand, $200 thousand, $200 thousand, $200 thousand and $875 thousand on each of September 7, 2024, October 7, 2024, November 7, 2024, December 7, 2024 and December 31, 2024, respectively. Furthermore, on each Required

Payment Date (defined in the Amended Credit Agreement as December 31, 2024 and the last business day of each calendar month thereafter), the Borrower shall prepay the outstanding principal balance of the Loans by an amount equal to the lesser of (a) the Total Portfolio Net Receipts (as defined in the Amended Credit Agreement) for the most recently ended period beginning on the 16th day of each month and ending on the 15th day of the immediately following month, and (b) as of each Required Payment Date, an amount equal to the excess, if any, of (x)(i) the number of Required Payment Dates occurring on or prior to such Required Payment Date, multiplied by (ii) $500,000, minus (y) the amount of all Excess Payments (as defined in the Amended Credit Agreement) made prior to such Required Payment Date. Additionally, the Amended Credit Agreement requires the Borrower to make certain minimum monthly payments to prepay the balance of the Loans.

Borrowings under the HH-BDH Credit Agreement, as amended, bear interest, at the Company’s option, calculated according to a base rate, adjusted term SOFR rate, or adjusted daily simple SOFR rate, plus an applicable margin, subject to a Maximum Rate determined by applicable law in the State of New York. The Company elected the adjusted daily simple SOFR rate with a margin of 6.5% for the first two years and 5.5% for the third year for the Loans. Accrued and unpaid interest is payable monthly, upon prepayment, and at maturity.

The Loans will mature on October 19, 2026, and all remaining outstanding principal amounts and accrued and unpaid interest thereon shall be due and payable on such date. As of September 30, 2024 and March 31, 2024, the unamortized discount related to the Term Loan was $1.2 million and $1.5 million, respectively.

The Term Loan is secured in part by pledges of: (a) substantially all of the assets of the Borrower, (b) the Guarantor’s equity interests in the Borrower, (c) 97.5% of the equity interests held by The EP-00117 Custody Trust, a Delaware statutory trust known as the “Custody Trust,” in certain entities that hold interests in private investment funds, which, as of September 30, 2024 and March 31, 2024, represented approximately 39.1% and 41.5%, respectively, of all assets held by the Customer ExAlt Trusts and (d) certain deposit accounts.

The HH-BDH Credit Agreement, as amended, contains customary representations, warranties, affirmative and negative covenants, including covenants which restrict the ability of the Loan Parties, the Custody Trust and certain affiliated entities to, among other things, create liens, incur additional indebtedness, make certain restricted payments and engage in certain other transactions, in each case subject to certain customary exceptions. In addition, the HH-BDH Credit Agreement, as amended, contains certain financial maintenance covenants, including a debt service coverage ratio of 2.00 to 1.00 and beginning December 31, 2024, a minimum liquidity requirement of $4.0 million, measured on the last day of each month.

Additionally, the HH-BDH Credit Agreement, as amended, contains customary events of default relating to, among other things, payment defaults, breach of covenants, cross default of material indebtedness, bankruptcy-related defaults, judgment defaults, the occurrence of certain change of control events, and the Class A common stock being suspended from trading for more than two consecutive days or delisting from Nasdaq. The occurrence of an event of default may result in the acceleration of repayment obligations with respect to any outstanding principal amounts and foreclosure on the collateral. As part of the Amendment, certain events of default resulting from the occurrence of the Acknowledged Defaults (as defined in the Amendment) were waived, provided that in the case of the expense reimbursement default, the Borrower must cure the expense reimbursement default upon the earlier of (i) November 1, 2024 and (ii) two business days following the effectiveness of Company’s registration statement for resale of the shares of Class A common stock, underlying the convertible debentures and warrants described in Note 7.

Hicks Holdings will receive the following fees and payments in connection with the Loans:

•A non-refundable fee in an amount equal to 1.0% of the aggregate commitments under the Term Loan upon execution of the HH-BDH Credit Agreement (the “Closing Date”);

•On each Payment Date, from and including: (1) from the Closing Date until the second anniversary of the Closing Date, an interest payment at an interest rate equal to 3.0% per annum; and (2) from the second anniversary of the Closing Date until the loans are repaid in full, interest payments at an interest rate equal to 2.0% per annum (such interest is in included in HH-BDH’s receipt of interest payments as described above);

•If any amounts under the HH-BDH Credit Agreement are prepaid prior to the scheduled Make Whole Date, including by reason of acceleration, a make-whole payment equal to the product of the principal amounts being repaid and the applicable interest rate plus 3.0% and the number of calendar days between the date of such prepayment and the scheduled Make Whole Date, divided by 360; and

•Certain fees, payments and expenses incurred by Hicks Holdings in connection with the Financing.

Aggregate maturities of principal on the debt due to related parties for the next five fiscal years ending March 31 are as follows:

(Dollars in thousands)	Debt Due to Related Parties
2025	$	23,495
2026	—
2027	26,475
2028	72,983
2029	—

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Share-based Compensation

6 Months Ended

Sep. 30, 2024

Share-Based Payment Arrangement [Abstract]

Share-based Compensation

Share-based Compensation

As of September 30, 2024 and March 31, 2024, the Company has outstanding share-based awards under the Beneficient Management Partners, L.P. (“BMP”) Equity Incentive Plan (the “BMP Equity Incentive Plan”), the Beneficient 2023 Long Term Incentive Plan (the “2023 Incentive Plan”), and BCH Preferred A.1, as more fully described below.

Following stockholder approval on April 18, 2024, the Company effected a reverse stock split of our Class A and Class B common stock at a ratio of 1-for-80 and a simultaneous proportionate reduction in the authorized shares of each class of Common Stock as required by Nevada Revised Statues Section 78.207. All outstanding restricted stock units and restricted equity units, as well as the Company’s equity incentive plans have been retroactively adjusted to reflect the 1-for-80 Reverse Stock Split.

BMP Equity Incentive Plan

The Board of Directors of Ben Management, Ben’s general partner prior to the Conversion, adopted the BMP Equity Incentive Plan in 2019. Under the BMP Equity Incentive Plan, certain directors and employees of Ben are eligible to receive equity units in BMP, an entity affiliated with the Board of Directors of Ben Management, in return for their services to Ben. The BMP equity units eligible to be awarded to employees is comprised of BMP’s Class A Units and/or BMP’s Class B Units (collectively, the “BMP Equity Units”). As of September 30, 2024, the Board has authorized the issuance of up to 119,000,000 units each of the BMP Equity Units. All awards are classified in equity upon issuance.

The BMP Equity Units include awards that fully vest upon grant and awards that are subject to service-based vesting of a four-year period from the date of hire. Expense associated with the vesting of these awards is based on the fair value of the BMP Equity Units on the date of grant. Compensation cost is recognized for the granted awards on a straight-line basis using the graded vesting method, and forfeitures are accounted for at the time that such forfeitures occur. Expense recognized for these awards is specially allocated to certain holders of redeemable noncontrolling interests.

The fair value of the BMP Equity Units was determined on the grant-date using a probability-weighted discounted cash flow analysis. This fair value measurement is based on significant inputs not observable in the market and thus represents a Level 3 measurement within the fair value hierarchy. The resultant probability-weighted cash flows are then discounted using a rate that reflects the uncertainty surrounding the expected outcomes, which the Company believes is appropriate and representative of a market participant assumption, and for lack of marketability given the underlying units of the awards are not publicly traded.

There were no BMP Equity Units granted during the six months ended September 30, 2024 or September 30, 2023.

2018 Ben Equity Incentive Plan

The Ben Equity Incentive Plan was adopted in September 2018 (the “2018 Ben Equity Incentive Plan”). Under the 2018 Ben Equity Incentive Plan, Ben was permitted to grant equity awards in the form of restricted equity units (“REUs”) up to a maximum of 160,141, representing ownership interests in BCG Common Units. Effective as of the Conversion, the Company assumed obligations under the outstanding REUs under the 2018 Ben Equity Incentive Plan and agreed to issue shares of Class A common stock upon settlement of such outstanding REUs. Settled awards under the 2018 Ben Equity Incentive Plan dilute BCG’s Common Unitholders. The total number of BCG Common Units that were issuable under the 2018 Ben Equity Incentive Plan was equivalent to 15% of the number of fully diluted BCG Common Units outstanding, subject to annual adjustment. All awards were classified in equity upon issuance. Following the Business Combination, no additional awards may be issued under the 2018 Equity Incentive Plan and all outstanding awards are settleable at a ratio of 1.25 shares of the Class A common stock for each restricted equity unit.

During the third calendar quarter of 2020, 6,438 units were granted to a director subject to a performance condition. The performance condition was met upon public listing in June 2023 and expense for vested units was recognized in June of 2023

in the amount of $5.2 million. The recognition of the remaining compensation cost will be recognized over the remaining vesting period. Total recognized compensation cost related to these awards for the three and six months ended September 30, 2024 is nil and $0.3 million, respectively. Total recognized compensation cost related to these awards for the three and six months ended September 30, 2023 is approximately $0.3 million and $5.5 million, respectively. The originally granted units were increased at a rate of one-to-1.25 units, or by 1,610 units, upon public listing and effectiveness of the 2023 Incentive Plan. As of September 30, 2024, there is no remaining unrecognized compensation cost related to this award.

2023 Incentive Plan

On June 6, 2023, the Company’s Board adopted the 2023 Incentive Plan, which was approved by the Company’s stockholders. Under the 2023 Incentive Plan, Ben is permitted to grant equity awards in the form of restricted stock units (“RSUs”). Subject to certain adjustments, the aggregate number of shares of Class A common stock expected to be issuable under the 2023 Incentive Plan in respect of awards will be equal to 15% of the aggregate number of fully diluted shares issued and outstanding, subject to quarterly adjustment. Settled awards under the 2023 Incentive Plan dilute common stockholders. All awards are classified in equity upon issuance.

Awards are generally subject to service-based vesting over a multi-year period from the recipient’s grant date, though some awards may fully vest upon grant date, or be subject to performance conditions. While providing services to Ben, if applicable, certain of these awards are subject to minimum retained ownership rules requiring the award recipient to continuously hold RSUs equal to at least 15% of their cumulatively granted awards.

During the quarter ended September 30, 2024, an aggregate of 817,619 RSUs were awarded to employees of the Company, which fully vested on the date of grant. The Company expensed the full grant date fair value of the RSUs of approximately $2.4 million in the quarter ended September 30, 2024.

Additionally, during the quarter ended September 30, 2024, the Company granted to a director (i) 100,000 stock options with an exercise price of $1.23 per share of Class A common stock, which vest ratably over two years, and (ii) 138,212 RSUs, which vest ratably over one year. The stock options have a grant date fair value of $0.97, calculated using a Black Scholes option pricing model.

Preferred Equity

On April 1, 2022, a certain director was assigned BCH Preferred A.1 with a grant date of December 31, 2021 and having an account balance of $5.7 million (the “Initial Grant”). Further, effective as of April 3, 2022, the director was assigned additional BCH Preferred A.1 (the “Additional Grant” and together with the Initial Grant, the “BHI Grants”) with a grant date of December 31, 2021 and having an account balance of $3.8 million. The Initial Grant is subject to a service condition, which requires compensation cost to be recognized over the explicit, substantive service vesting period that extends after the grant date. The Additional Grant was fully vested upon issuance.

In order to provide that certain director with cash to cover any tax liability arising from the BHI Grants, BCH and the director entered into a Unit Account Redemption Agreement, effective as of April 3, 2022, whereby BCH was required to purchase and redeem from that certain director all of the BCH Preferred A.1 granted to the director pursuant to the BHI Tax Grant for a purchase price of $3.8 million, in cash. Such redemption occurred in full on June 10, 2022.

Commissions

Certain of our employees’ commission compensation is in the form of common stock. Such shares granted to employees are subject to service-based vesting conditions over a multi-year period from the recipient’s grant date. Awards granted through June 8, 2023 were also subject to a performance condition, which was met on June 8, 2023 when Ben became publicly listed.

The following table presents the components of share-based compensation expense, included in employee compensation and benefits, recognized in the consolidated statements of comprehensive income (loss) for the three and six months ended September 30, 2024 and 2023:

	Three Months Ended September 30,				Six Months Ended September 30,
(dollars in thousands)	2024		2023		2024		2023
BMP equity units	$	144	$	569	$	257	$	1,244
Restricted stock units	3,179		7,318		4,011		16,041
Preferred equity	—		286		—		572
Other(1)	41		330		90		17,647
Total share-based compensation	$	3,364	$	8,503	$	4,358	$	35,504

(1) The year-to-date period September 30, 2023 includes $15.0 million of compensation recognized related to the BCG Recapitalization and $2.6 million recognized for equity based compensation issued to employees for Ben Liquidity transactions.

Unrecognized share-based compensation expense totaled $5.1 million as of September 30, 2024, which we expect to recognize based on scheduled vesting of awards outstanding at September 30, 2024. The following table presents the share-based compensation expense expected to be recognized over the next five fiscal years ending March 31 for awards outstanding as of September 30, 2024:

(dollars in thousands)	BMP		RSU		Commissions		Total
Six months ending 2025	$	187	$	1,163	$	95	$	1,445
2026	225		2,023		79		2,327
2027	14		913		—		927
2028	—		384		—		384
2029	—		—		—		—
Total	$	426	$	4,483	$	174	$	5,083

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Equity

6 Months Ended

Sep. 30, 2024

Equity [Abstract]

Equity

Equity

Below is a description of the outstanding classes of the equity of the Company, including quasi-equity amounts that are required to be reported as temporary equity between the liabilities and equity sections on the consolidated statements of financial condition. As of September 30, 2024, the 9th Amended and Restated LPA of BCH (“BCH LPA”), as amended, and the articles of incorporation and bylaws of Beneficient, govern the terms of these equity securities, as applicable. The Company’s governing documents authorize the issuance of additional classes of equity. All equity interests of BCH are limited partnership interests.

Common Stock:

Voting. Each holder of our Class A common stock is entitled to one vote per each share of Class A common stock held of record by such holder on all matters on which stockholders generally are entitled to vote, and each holder of our Class B common stock is entitled to 10 votes per share on all matters on which stockholders generally are entitled to vote. Holders of shares of common stock vote as a single class, except for certain matters for which only holders of Class B common stock are entitled to vote.

Dividends. Subject to preferences that may apply to any outstanding shares of preferred stock, holders of Common Stock are entitled to receive ratably any dividends that our Board may declare out of funds legally available for that purpose on a non-cumulative basis; provided, however, that in the case of any dividends in Common Stock, holders of Class A common stock are entitled only to receive Class A common stock and holders of Class B common stock are entitled only to receive Class B common stock. In no event will the shares of either Class A common stock or Class B common stock be split, divided, or combined unless the outstanding shares of the other class are proportionally split, divided or combined.

Conversion. Shares of Class A common stock are not convertible into any other shares of our capital stock. Shares of Class B common stock are convertible into shares of Class A common stock at any time at the option of the holder or upon any transfer, except for certain transfers described in our articles of incorporation.

Standby Equity Purchase Agreement

On June 27, 2023, the Company entered into the SEPA with Yorkville, whereby the Company has the right, but not the obligation, to sell to Yorkville up to $250.0 million of its shares of the Company’s common stock at the Company’s request any time during the 36 months following the execution of the SEPA, subject to certain conditions. The Company expects to use the net proceeds received from this for working capital and general corporate purposes. The Company paid a structuring fee in cash and a commitment fee in an amount equal to $1.3 million by issuing 5,703 shares of Class A common stock in July 2023.

On September 29, 2023, a resale registration statement on Form S-1 was declared effective by the SEC, thereby permitting sales of Class A common stock to Yorkville under the SEPA. Subsequent to the effectiveness of this resale registration statement and through September 30, 2024, the Company sold a total of 498,125 Class A common shares for a total of $3.9 million in net proceeds, including 449,307 Class A common shares being sold in the current fiscal year for net proceeds of $2.6 million. The prior resale registration statement on Form S-1 was terminated on September 27, 2024. A new resale registration statement on Form S-1, registering approximately 200.1 million shares for resale under the SEPA, was declared effective by the SEC on November 12, 2024.

Preferred Stock:

Under the terms of our articles of incorporation, our Board is authorized to issue up to 250 million shares of preferred stock in one or more series. As of September 30, 2024, 50 million shares of preferred stock are designated as shares of Series A preferred stock and approximately 4 million are designated as Series B preferred stock pursuant to a certificates of designation.

Series A Preferred Stock

As of September 30, 2024 and March 31, 2024, there were no shares of Series A preferred stock issued and outstanding, respectively.

Maturity. Subject to the redemption and conversion rights described below, shares of Series A preferred stock are perpetual securities.

Priority. Shares of Series A preferred stock rank senior to shares of Common Stock with respect to dividend rights and/or distribution rights upon the liquidation, winding up or dissolution, as applicable, of Beneficient.

Voting. Holders of Series A preferred stock are not entitled to vote on any matter, expect as required by law.

Dividends. Holders of Series A preferred stock are entitled to receive ratably any dividends that our Board declares and pays on the Common Stock, on an as-converted basis, when paid to holders of Common Stock. Beneficient may, subject to customary restrictions, but is not required to, declare or pay any dividends solely on shares of Series A preferred stock.

Liquidation or Dissolution. The initial liquidation preference of Series A preferred stock is $0.001 per share, plus any declared but unpaid dividends (the “Liquidation Preference”). In the event of our liquidation, dissolution or winding up, holders of Series A preferred stock are entitled to receive, per share of Series A preferred stock, the Liquidation Preference or, prior to the Series A Preferred Stock Conversion Date, if a greater amount, the amount such holder would have received had their shares of Series A preferred stock converted into Class A common stock immediately prior to such liquidation event.

Conversion, Transferability and Exchange. Per the terms of the articles of incorporation, because the Series A preferred stock is not expected to be publicly listed, each share of the Series A preferred stock will automatically convert into one-quarter of a share of Class A common stock upon issuance.

Redemption. Beneficient may redeem, ratably, in whole or, from time to time in part, the shares of Series A preferred stock of any holder then outstanding at the Liquidation Preference in cash. Holders of shares of Series A preferred stock do not have the right to require Beneficient to redeem their shares of Series A preferred stock under any circumstances.

Series B Preferred Stock:

The Series B preferred stock has various subclasses, however, the general rights, preferences, privileges and restrictions of these equity securities are described below. Each of the Series B preferred stock has a par value of $0.001 per share. The most significant difference in the various subclasses of the Series B preferred stock pertains to the conversion rate and the mandatory conversion periods, both of which are described below. During fiscal year 2024, the Company issued Series B preferred stock comprising subclasses No. 1 through No. 4 in the amounts of 3,768,995; 200,000; 20,000; and 6,932 shares, respectively. No additional Series B preferred stock has been issued in the current fiscal year.

On October 3, 2023, 3,768,995 shares of Series B-1 preferred stock converted into 172,574 shares of Class A common stock at a price per share of approximately $218.40. No other Series B preferred stock has converted through September 30, 2024.

As of September 30, 2024 and March 31, 2024, there were a total of 226,932 shares of Series B preferred stock, issued and outstanding, respectively.

Maturity. Subject to the redemption and conversion rights described below, shares of Series B preferred stock are perpetual securities.

Priority. Shares of Series B preferred stock rank, with respect to dividend rights and/or distribution rights upon the liquidation, winding up or dissolution, as applicable, of Beneficient as: (i) senior to shares of Common Stock; (ii) pari passu with Series A Preferred Stock; (iii) senior, pari passu or junior with respect to any other series of preferred stock, as set forth in the terms with respect to such preferred stock; and (iv) junior to all existing and future indebtedness of the Beneficient.

Voting. Holders of Series B preferred stock are not entitled to vote on any matter, expect as required by law.

Dividends. Holders of Series B preferred stock are entitled to receive ratably any dividends that our Board declares and pays on the Common Stock, on an as-converted basis, when paid to holders of Common Stock. Beneficient may, subject to customary restrictions, but is not required to, declare or pay any dividends solely on shares of Series B preferred stock.

Liquidation or Dissolution. The initial liquidation preference of Series B preferred stock is $10.00 per share, plus any declared but unpaid dividends (the “Series B Liquidation Preference”). In the event of our liquidation, dissolution or winding up, holders of Series B preferred stock are entitled to receive, per share of Series B preferred stock, the Series B Liquidation Preference amount such holder would have received had their shares of Series B preferred stock converted into Class A common stock immediately prior to such liquidation event.

Conversion, Transferability and Exchange. In the event of specified extraordinary transactions, as a result of which shares of Class A common stock would be converted into, or exchanged for, stock, other securities or other property or assets (including cash or any combination thereof), each share of Series B preferred stock outstanding immediately prior to such event will, without the consent of the holders of Series B preferred stock, become convertible into the kind of stock, other securities or other property or assets that such holder would have been entitled to receive if such holder had converted its shares of Series B preferred stock into shares of Class A common stock immediately prior to such event.

Optional Conversion. The conversion price is determined generally based on a volume weighted price of the Class A common stock at the time the Series B preferred stock is issued. The conversion price for the various subclasses of Series B preferred stock ranged from $5.38 to $436.80 (the “Conversion Price”). Each share of Series B preferred stock is convertible at the option of the holder thereof into a number of shares of Class A common stock that is equal to $10.00 divided by Conversion Price then in effect as of the date of such notice (the “Conversion Rate”). The Conversion Price shall be subject to reset on certain dates (generally monthly) following the date of issuance of the Series B preferred stock, subject to adjustment, including the reset Conversion Price cannot adjust lower than 50% of the initial Conversion Price or generally, higher than the initial Conversion Price. Based on the shares of Series B preferred stock outstanding as of September 30, 2024, the maximum number of Class A common shares that can be issued upon conversion of the Series B preferred stock is 165,037 shares.

Mandatory Conversion. Each outstanding share of Series B preferred stock will automatically convert into a number of shares of Class A common stock (the “Mandatory Conversion”) at the Conversion Rate then in effect on the date that is the earliest to occur of: (a) 210 calendar days (for the Series B-1 preferred stock) and 60 months (for the other Series B preferred stock subclasses) after the Original Issue Date, subject to certain conditions, (b) if the conditions of clause (a) are not met on the date that is 210 calendar days (for the Series B-1 preferred stock) and 60 months (for the other Series B preferred stock subclasses) following the Original Issue Date, the first date thereafter on which any shares of Series B-1 preferred stock may be resold pursuant to Rule 144 under the Securities Act or the Resale Registration Statement has become effective and, applicable only to the Series B-1 preferred stock, (c) the one year anniversary of the Original Issue Date. The Series B-1 preferred stock shall not convert into Class A common stock to the extent such conversion would cause a holder to exceed 9.99% (the “Beneficial Ownership Limitation”) of the number of shares of the Class A common stock outstanding immediately after giving effect to conversion, while the other subclasses of the Series B preferred stock have a 4.99% Beneficial Ownership Limitation.

Redeemable Noncontrolling Interests:

Preferred Series A Subclass 0 Unit Accounts

The BCH Preferred A.0 receives a quarterly guaranteed payment calculated as 6% of the BCH Preferred A.0’s initial capital account balance on an annual basis, or 1.50% per fiscal quarter. The BCH Preferred A.0 does not receive any allocations of profits, except to recoup losses previously allocated. The guaranteed payment to BCH Preferred A.0 is not subject to available cash and has priority over all other distributions made by BCH. BCH and the holders of the BCH Preferred A.0 entered into an agreement to defer the guaranteed payment to November 15, 2024; provided that such a guaranteed payment may be made prior to November 15, 2024 if the Audit Committee of the Board of Directors determines that making such payment, in part or in full, would not cause Ben to incur a going concern issue. The guaranteed payment accrual totaled $46.4 million and $37.7 million as of September 30, 2024 and March 31, 2024, respectively, and is included in the accounts payable and accrued expenses line item of the consolidated statements of financial condition.

Additionally, the BCH Preferred A.0 has the ability under the BCH LPA to elect, by a majority of holders of BCH Preferred A.0, to receive a full return of capital senior to any other security if an event causing mandatory returns of capital occurs.

The BCH Preferred A.0 can be converted into Class S Units at the election of the holder, at a price equal to the average of (i) $840.00, and (ii) the volume-weighted average closing price of Class A common stock for the twenty (20) days preceding the applicable exchange date; provided, that from the effectiveness of the BCH LPA through December 31, 2027, such conversion price shall not be less than $840.00.

Finally, a holder of BCH Preferred A.0, subsequent to January 1, 2023, may elect to require a redemption by BCH of up to 12.5% of his or her respective initial BCH Preferred A.0 capital account for any rolling twelve-month period; provided that such holder shall not be permitted to redeem more than 50% of such holder’s initial BCH Preferred A.0 capital account in the aggregate. Subsequent to January 1, 2023, if a holder of BCH Preferred A.0 continues to hold BCH Preferred A.1, such

holder may elect on a quarterly basis to convert additional BCH Preferred A.1 held by such holder to BCH Preferred A.0 up to an amount equal to 12.5% of such holder’s initial BCH Preferred A.0 capital account; provided that such holder’s post-conversion capital account balance in respect of all BCH Preferred A.0 held by such holder does not exceed such holder’s initial BCH Preferred A.0 capital account.

On September 30, 2024, the BCH LPA was amended to re-designate fifty percent (50%) of the aggregate capital account balances in the BCH Preferred A.0 to the BCH Preferred A.0 Non-Redeemable. The remaining fifty percent (50%) of the capital account balances in the BCH Preferred A.0 Accounts remain redeemable. As a result of this redesignation, approximately $125.5 million of temporary equity was reclassified to permanent equity as of September 30, 2024.

As of September 30, 2024, the BCH Preferred A.0 Redeemable are recorded in the consolidated statements of financial condition in the redeemable noncontrolling interest line item and the BCH Preferred A.0 Non-Redeemable are recorded in the consolidated statements of financial condition in the noncontrolling interest line item. For periods prior to the September 30, 2024 re-designation, the BCH Preferred A.0 are recorded in the consolidated statements of financial condition in the redeemable noncontrolling interest line item.

Noncontrolling Interests:

Noncontrolling interests represent the portion of certain consolidated subsidiaries’ limited partnership interests or interests in the Customer ExAlt Trusts that are held by third parties. Amounts are adjusted by the noncontrolling interest holder’s proportionate share of the subsidiaries’ earnings or losses each period and for any distributions that are paid. Equity securities issued by BCH maintain capital account balances determined pursuant to Section 704 of the Internal Revenue Code. Because federal income tax regulations differ in certain respects from U.S. GAAP, income or loss allocations to BCH equity securities determined in accordance with tax regulations may materially differ from that recognized for financial reporting purposes. For example, the losses recognized for financial reporting purposes arising from the impairment of goodwill are not recognized under tax regulation, and the associated capital account balances have not been impacted by those losses.

The following tables present a rollforward of the noncontrolling interests for the three and six months ended September 30, 2024 and 2023:

	Noncontrolling Interests
(Dollars in thousands)	Trusts		BCH Class S Ordinary		BCH Class S Preferred		BCH Preferred Series A.0 Non-Redeemable		BCH Preferred Series A.1		BCH Preferred Series C		Class A of CT		Total Noncontrolling Interests
Balance, June 30, 2024	$	(166,463)	$	—	$	—	$	—	$	200,756	$	—	$	—	$	34,293
Net loss	(4,523)		—		—		—		(3,067)		—		—		(7,590)
Reclass of distributions payable to noncontrolling interest holder	(122)		—		—		—		—		—		—		(122)
Reclass of BCH Preferred A.0 Non-Redeemable from temporary to permanent equity	—		—		—		125,526		—		—		—		125,526
Balance, September 30, 2024	$	(171,108)	$	—	$	—	$	125,526	$	197,689	$	—	$	—	$	152,107

	Noncontrolling Interests
(Dollars in thousands)	Trusts		BCH Class S Ordinary		BCH Class S Preferred		BCH Preferred Series A.0 Non-Redeemable		BCH Preferred A.1		BCH Preferred Series C		Class A of CT		Total Noncontrolling Interests
Balance, March 31, 2024	$	(165,712)	$	—	$	—	$	—	$	207,943	$	—	$	—	$	42,231
Net loss	(5,049)		—		—		—		(10,254)		—		—		(15,303)
Reclass of distributions payable to noncontrolling interest holder	(347)		—		—		—		—		—		—		(347)
Reclass of BCH Preferred A.0 from temporary to permanent equity	—		—		—		125,526		—		—		—		125,526
Balance, September 30, 2024	$	(171,108)	$	—	$	—	$	125,526	$	197,689	$	—	$	—	$	152,107

	Noncontrolling Interests
(Dollars in thousands)	Trusts		BCH Class S Ordinary		BCH Class S Preferred		BCH Preferred Series A.1		BCH Preferred Series C		Class A of CT		Total Noncontrolling Interests
Balance, June 30, 2023	$	(132,361)	$	19,311	$	856	$	691,825	$	205,759	$	690	$	786,080
Net loss	(3,591)		(9,614)		—		(570)		—		(421)		(14,196)
Reduction of noncontrolling interest in connection with recent financings	(3,272)		—		—		—		—		—		(3,272)
Issuance of noncontrolling interest in connection with recent financings	79		—		—		—		—		—		79
Reclass of distributions payable to noncontrolling interest holder	(238)		—		—		—		—		—		(238)
Conversion of Preferred Series C to Class A common stock	—		—		—		—		(205,759)		—		(205,759)
Issuance of Series B-1 preferred stock and noncontrolling interest in connection with recent financings	942		—		—		—		—		—		942
Balance, September 30, 2023	$	(138,441)	$	9,697	$	856	$	691,255	$	—	$	269	$	563,636

	Noncontrolling Interests
(Dollars in thousands)	Trusts		BCH Class S Ordinary		BCH Class S Preferred		BCH Preferred Series A.1		BCH Preferred Series C		Class A of CT		Total Noncontrolling Interests
Balance, March 31, 2023	$	(118,299)	$	52,560	$	856	$	—	$	205,759	$	1,337	$	142,213
Net loss	(17,457)		(38,979)		—		(1,244)		—		(1,068)		(58,748)
Reclass of distributions payable to noncontrolling interest holder	(567)		—		—		—		—		—		(567)
Issuance of shares in connection with recent financings	133		—		—		—		—		—		133
Reduction of noncontrolling interest in connection with recent financings	(3,272)		—		—		—		—		—		(3,272)
Issuance of noncontrolling interest in connection with recent financings	79		—		—		—		—		—		79
Conversion of Class S Ordinary to Class A common stock	—		(3,884)		—		—		—		—		(3,884)
Conversion of Preferred Series C to Class A common stock	—		—		—		—		(205,759)		—		(205,759)
Deemed dividend for BCG Preferred Series B.2 Unit Accounts preferred return	—		—		—		(6,942)		—		—		(6,942)
Reclass of BCH Preferred A.1 from temporary to permanent equity	—		—		—		699,441		—		—		699,441
Issuance of Series B-1 preferred stock and noncontrolling interest in connection with recent financings	942		—		—		—		—		—		942
Balance, September 30, 2023	$	(138,441)	$	9,697	$	856	$	691,255	$	—	$	269	$	563,636

Preferred Series A Subclass 1 Unit Accounts

The BCH Preferred A.1 unit accounts are issued by BCH and are non-participating and convertible on a dollar basis.

The weighted average preferred return rate for the three months ended September 30, 2024 and 2023 was approximately nil and nil, respectively. The weighted average preferred return rate for the six months ended September 30, 2024 and 2023 was approximately nil and 0.46%, respectively. No amounts have been paid to the BCH Preferred A.1 holders related to the preferred return from inception through September 30, 2024, and any amounts earned have been accrued and are included in the balance of redeemable noncontrolling interests presented on the consolidated statements of financial condition. As of September 30, 2024, approximately $106.1 million of preferred return related to the BCH Preferred A.1 has not been allocated to its holders due to insufficient income during those periods to fully satisfy the preferred return and will be allocable to the BCH Preferred A.1 holders in future quarterly periods to the extent that sufficient income, if any, is available for such allocation. In accordance with the BCH LPA, the preferred rate was waived and will not accrue from June 7, 2023 until December 31, 2024, except to the extent of allocations of income to the holders of the BCH Preferred A.1, in which event distributions may be requested by the holders of the BCH Preferred A.1, and if not requested, such amounts shall be accrued. In connection with the consummation of the Business Combination, the holders of the BCH Preferred A.1 agreed to significantly reduce the BCH Preferred A.1 return rate and also agreed to waive and defer the accrual of the preferred return as described above. In addition, until January 1, 2025, the hypothetical BCH Preferred A.1 capital account will only be

increased to the extent there are allocations of income during such period. The agreement to waive and not accrue the Quarterly Preferred Series A.1 Return from the effective date of the BCH LPA until December 31, 2024 does not affect or waive any Quarterly Preferred Series A.1 Returns or hypothetical BCH Preferred A.1 capital account already accrued as of the effective date. Additionally, certain BCH Preferred A.1 holders agreed to be specially allocated any income or losses associated with the BMP Equity Incentive Plan, and certain other costs.

Beginning January 1, 2025, BCH Preferred A.1 may be converted into BCH Class S Ordinary Units at the election of the holder, subject to a 20% annual conversion limit through December 31, 2029 as set forth in the BCH LPA; provided, that if the conversion price for the BCH Preferred A.1 equals or exceeds $1,440 after January 1, 2025, the annual conversion limit shall no longer be applicable. Upon conversion, the holder shall be issued BCH Class S Ordinary Units in an amount equal to the capital account balance associated with the BCH Preferred A.1 being converted divided by a price equal to the average closing price of Class A common stock for the thirty (30) days preceding the applicable exchange date; provided, that from the effectiveness of the BCH LPA through December 31, 2027, such conversion price shall not be less than $840. The holder of such newly issued BCH Class S Ordinary Units may immediately convert them into Class A common stock.

The BCH LPA also includes certain limitations of BCH, without the consent of a majority-in-interest of the Preferred Series A Unit Account holders, to (i) issue any new equity securities, and (ii) except as otherwise provided, incur indebtedness that is senior to or pari passu with any right of distribution, redemption, repayment, repurchase or other payments relating to the Preferred Series A Unit Accounts or the Preferred Series B Unit Accounts. Further, BCH cannot, prior to the conversion of all the Preferred Series A Unit Accounts and the Preferred Series B Unit Accounts, incur any additional long-term debt unless (i) after giving effect to the incurrence of the new long-term debt on a pro forma basis, the sum of certain preferred stock, existing debt and any new long-term indebtedness would not exceed 55% of the BCH’s NAV plus cash on hand, and (ii) at the time of incurrence of any new long-term indebtedness, the aggregate balance of the BCH’s (including controlled subsidiaries) debt plus such new long-term debt does not exceed 40% of the sum of the NAV of the interests in alternative assets supporting the Collateral underlying the loan portfolio of BCH and its subsidiaries plus cash on hand at BCG, BCH and its subsidiaries. Upon the effectiveness of the 8th BCH LPA in June 2023, the redemption feature of the BCH Preferred A.1 was removed, which resulted in the BCH Preferred A.1 no longer being required to be presented in temporary equity.

On June 6, 2023, in connection with the BCG Recapitalization as described in Note 4, $193.9 million of aggregate capital account balances in BCH Preferred A.1 converted to 208,861 units of BCH Class S Ordinary. Those BCH Class S Ordinary units then converted into 17,456 units of BCG Class A common units and 191,405 shares of BCG Class B common units on a one-for-one basis. As part of the conversion to BCG Class A Units, additional value of approximately $15.0 million was provided to certain holders who are members of our Board. The additional value was accounted for as compensation, which resulted in stock-based compensation expense of $15.0 million during the quarter ended June 30, 2023.

The BCH Preferred A.1 are recorded in the consolidated statements of financial condition in the noncontrolling interest line item.

Preferred Series C Subclass 1 Unit Accounts

On July 15, 2020, the Company entered into a Preferred Series C Unit Purchase Agreement (“UPA”) with GWG Holdings. Pursuant to the UPA, on July 10, 2023, the Preferred Series C Subclass 1 Unit Accounts of BCH (“BCH Preferred C.1”) automatically converted into 550,510 shares of Class A common stock at approximately $372.80 per share, which represents the volume-weighted average trading price of the Class A common stock for the 20 trading days following the closing of the Business Combination. The BCH Preferred C.1 were recorded in the consolidated statements of financial condition in the noncontrolling interest line item for periods presented prior to their conversion to Class A common stock.

Class S Ordinary Units

As of both September 30, 2024 and March 31, 2024, BCH, a subsidiary of Ben, had issued 67 thousand BCH Class S Ordinary Units which were all outstanding on each of the respective dates. The BCH Class S Ordinary Units participate on a pro-rata basis in the share of the profits or losses of BCH and subsidiaries following all other allocations made by BCH and its subsidiaries. As limited partner interests, these units have limited voting rights and do not entitle participation in the management of the Company’s business and affairs. At the election of the holder, the BCH Class S Ordinary Units are exchangeable quarterly for Class A common stock on a one-for-one basis. Each conversion also results in the issuance to Ben LLC of a BCH Class A Unit for each share of Class A common stock issued.

On June 8, 2023, 5,057 BCH Class S Ordinary Units ultimately converted into shares of Class A common stock on a one-to-one basis pursuant to the terms of the Exchange Agreement and the BCH LPA.

The BCH Class S Ordinary Units are recorded in the consolidated statements of financial condition in the noncontrolling interests line item.

Class S Preferred Units

The BCH Class S Preferred Units also participate on a pro-rata basis in the share of the profits or losses of BCH and subsidiaries following all other allocations made by BCH and its subsidiaries. As limited partner interests, these units are generally non-voting and do not entitle participation in the management of the Company’s business and affairs. The BCH Class S Preferred Units are entitled to a quarterly preferred return. In accordance with the 8th BCH LPA, the preferred rate was waived and will not accrue from June 7, 2023 until December 31, 2024, except to the extent of allocations of income to the holders of the BCH Class S Preferred Units. In connection with the consummation of the Business Combination, the holders of the BCH Preferred A.1 agreed to significantly reduce the BCH Class S Preferred Units preferred return rate and also agreed to waive and defer the accrual of the preferred return as described above. In addition, until January 1, 2025, the hypothetical BCH Class S Preferred Units capital account will only be increased to the extent there are allocations of income during such period. The agreement to waive and not accrue the Quarterly Class S Preferred Return from June 7, 2023 until December 31, 2024 does not affect or waive any Quarterly Class S Preferred Return or hypothetical BCH Class S Preferred capital account already accrued as of the effective date.

Generally, on a quarterly basis and at the election of the holder, the BCH Class S Preferred Units are exchangeable for BCH Class S Ordinary Units on a 1.2-for-1 basis. The BCH Class S Ordinary Units may then be exchanged for Class A common stock as described above. Each conversion into Class A common stock also results in the issuance to Ben LLC of a BCH Class A Units for each share of Class A common stock issued. Holders of BCH Class S Preferred Units may elect to convert into BCH Class S Ordinary Units in connection with a sale or dissolution of BCH.

As of September 30, 2024 and March 31, 2024, a nominal number of shares of BCH Class S Preferred Units have been issued, respectively. Preferred return earned by the BCH Class S Preferred Units from inception in 2019 through September 30, 2024 is $0.2 million. No amounts have been paid to the BCH Class S Preferred Unit holders related to the preferred return from inception through September 30, 2024 and any amounts earned have been accrued and are included in the balance of BCH Class S Preferred Units presented on the consolidated statements of financial condition.

The BCH Class S Preferred Units are recorded in the consolidated statements of financial condition in the noncontrolling interests line item.

FLP Unit Accounts (Subclass 1 and Subclass 2)

FLP Unit Accounts (Subclass 1 and Subclass 2) are non-unitized capital accounts. The FLP Subclass 1 Units (the “FLP-1 Unit Accounts”) were issued to a Related Entity (as defined in Note 13) as part of the initial commercial operations of Ben. The FLP Subclass 2 Units (the “FLP-2 Unit Accounts”) are related to the BMP Equity Incentive Plan. Each subclass of the FLP Unit Accounts, with FLP-1 Unit Accounts (receiving 50.5%) and the FLP-2 Unit Accounts (receiving 49.5%), shall be allocated (i) fifteen percent (15%) of the profits and losses from financing activities of BCH and its subsidiaries and (ii) an amount equal to the lesser of (A) fifty percent (50%) of the revenues of BCH and its tax pass-through subsidiaries, excluding financing activities revenues, and (B) that amount of revenues that will cause the profit margin (as defined in the BCH LPA) to equal twenty percent (20%). Amounts allocated to the FLP Unit Accounts are reinvested equally in additional BCH Class S Ordinary Units and Class S Preferred Units on a quarterly basis at a price equal to the closing price of the units on such exchange on the date of allocation, thereby creating additional BCH Class S Ordinary Units and BCH Class S Preferred Units.

During the three and six months ended September 30, 2024 and 2023, there was no income allocated to the FLP Unit Accounts (Subclass 1 and 2). Annually, a true up of the quarterly allocations is required to match amounts allocated with annual earnings.

In addition to the above stated amounts, the FLP-1 Unit Accounts and FLP-2 Unit Accounts are entitled to a portion of any upward carrying value adjustment as calculated pursuant to Internal Revenue Code Section 704(b). In the event of an upward carrying value adjustment, the FLP-1 Unit Accounts and FLP-2 Unit Accounts are entitled to first be allocated gains associated with such carrying value adjustment equal to 15% of the value of the capital accounts of all BCH Class A Units and BCH Class S Units, calculated based on the post-adjusted capital accounts of the then outstanding BCH Class A and BCH Class S Units. Immediately following any such allocation, the amount allocated is converted in BCH Class S Ordinary Units at the then determined value. Furthermore, the amount allocated to the FLP-1 Unit Accounts is reduced by the value of any previously allocated amount pursuant to an upward carrying value adjustment, calculated as the number of BCH Class S Units previously received multiplied by the value of those units at the time of any subsequent carrying value adjustment.

As a result of the consummation of the Business Combination, an adjustment to the carrying value of BCH’s assets of $321.9 million occurred. Pursuant to the BCH LPA, approximately 402,383 BCH Class S Ordinary Units would be issuable as a result of the carrying value adjustment. Additionally, subsequent to the Business Combination, additional carrying value adjustments occurred, and approximately 260,000 BCH Class S Ordinary Units would be issuable through September 30, 2024 as a result of such carrying value adjustments, subject to the Compensation Policy. Under the Compensation Policy,

unless amended or waived, the number of BCH Class S Ordinary Units that may be issued in 2024 or any subsequent year in connection with the consummation of the Business Combination will be limited and require approval of the Board; provided that any such BCH Class S Ordinary Units that may not be issued in 2024 may be issued in subsequent years in accordance with the Compensation Policy. As of September 30, 2024, there has been no allocation of the carrying value adjustment among the holders of the FLP-1 Unit Accounts and the FLP-2 Unit Accounts and no issuance of any BCH Class S Ordinary Units as a result of such adjustment.

FLP Unit Accounts (Subclass 3)

The FLP Subclass 3 Unit Accounts (the “FLP-3 Unit Accounts”) were issued to, and are currently held by, BHI. The FLP-3 Unit Accounts will be allocated profits from net financing revenues on a quarterly basis equal to the lesser of (i) 5% of the quarterly net financing revenues, or (ii) 10% of the average annualized stated interest (to the extent constituting net financing revenue) of the quarterly average of new loans issued by any subsidiaries of Ben during the previous twelve fiscal quarters.

The FLP-3 Unit Accounts are entitled to tax and other distributions equal to 100% of the amount of profits allocated to the FLP-3 Unit Accounts, and such distributions are not subject to available cash. The FLP-3 Unit Accounts do not have any conversion features or rights.

During the three and six months ended September 30, 2024 and 2023, there was no income allocated to the FLP-3 Unit Accounts. The Company has not made any distributions related to income allocated to the FLP-3 Unit Accounts through September 30, 2024 and has accrued a liability of $0.9 million and included in the accounts payable and accrued expenses line item of the consolidated statements of financial condition as of September 30, 2024 and March 31, 2024.

Beneficiaries of the Customer ExAlt Trusts

The ultimate beneficiaries of the Customer ExAlt Trusts are the Charitable Beneficiaries, unrelated third-party charities, that are entitled to (i) either, depending on the applicable trust agreements, 2.5% of all distributions received by such Customer ExAlt Trusts or 5.0% of any amounts paid to Ben as payment on amounts due under each ExAlt Loan, (ii) for certain Customer ExAlt Trusts, approximately 10% of the amount of excess cash Collateral, if any, following the full repayment of an ExAlt Loan, and (iii) all amounts accrued and held at the Customer ExAlt Trusts once all amounts due to Ben under the ExAlt Loans and any fees related to Ben’s services to the Customer ExAlt Trusts are paid. The Charitable Beneficiaries’ account balances with respect to its interest in such Customer ExAlt Trusts cannot be reduced to below zero. Any losses allocable to the Charitable Beneficiaries in excess of their account balances are reclassified at each period end to the trusts’ deficit account. Additional Customer ExAlt Trusts are created arising from new liquidity transactions with customers. These new Customer ExAlt Trusts, which are consolidated by Ben, result in the recognition of additional noncontrolling interest representing the interests in these new Customer ExAlt Trusts held by the Charitable Beneficiaries. For the three months ended September 30, 2024 and 2023, nil and $1.0 million, respectively, of additional noncontrolling interests were recognized. For the six months ended September 30, 2024 and 2023, nil and $1.2 million, respectively, of additional noncontrolling interests were recognized.

The interests of the Charitable Beneficiaries in the Customer ExAlt Trusts are recorded on the consolidated statements of financial condition in the noncontrolling interests line item.

Class A of CT Risk Management, L.L.C.

On April 1, 2022, a minority interest in the Class A membership of CT Risk Management, L.L.C. (“CT”), a consolidated VIE of Ben (as further discussed in Note 14), was sold for $2.4 million in cash to the third-party involved in the loan participation transaction described in Note 7. As a Class A member of CT, the holder is entitled to distributions first on a pro rata basis with other Class A members until the initial capital contributions are received and 2.0% of any amounts in excess of their capital contributions, to the extent such amounts are available. This interest is recorded on the consolidated statements of financial condition in the noncontrolling interests line item however, for both September 30, 2024 and March 31, 2024, the balance is nil.

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Net Income (Loss) per Share

6 Months Ended

Sep. 30, 2024

Earnings Per Share [Abstract]

Net Income (Loss) per Share

Net Income (Loss) per Share

Basic net income (loss) attributable to Beneficient per common share for the three and six months ended September 30, 2024 and 2023, is as follows:

(Dollars in thousands)	Three Months Ended September 30,				Six Months Ended September 30,
	2024		2023		2024		2023
Net income (loss)	$	9,747	$	(381,764)	$	54,057	$	(1,537,734)
Plus: Net loss attributable to noncontrolling interests	7,590		14,196		15,303		58,748
Less: Noncontrolling interest guaranteed payment	(4,423)		(4,167)		(8,779)		(8,272)
Net income (loss) attributable to Beneficient common shareholders	$	12,914	$	(371,735)	$	60,581	$	(1,487,258)
Net income (loss) attributable to Class A common shareholders	12,270		(344,580)		57,040		(1,378,616)
Net income (loss) attributable to Class B common shareholders	644		(27,155)		3,541		(108,642)
Basic weighted average of common shares outstanding
Class A	4,122,438		2,971,767		3,910,871		2,645,234
Class B	239,256		239,256		239,256		239,256
Basic net income (loss) attributable to Beneficient per common share
Class A	$	2.98	$	(115.95)	$	14.58	$	(521.17)
Class B	$	2.69	$	(113.50)	$	14.80	$	(454.08)

Diluted net income attributable to Beneficient per common share for the three and six months ended September 30, 2024, is as follows:

(Dollars in thousands)
Diluted income per share	Three Months Ended September 30, 2024		Six Months Ended September 30, 2024
Net income attributable to Beneficient common shareholders - Basic	$	12,914	$	60,581
Less: Net loss attributable to noncontrolling interests - Ben	(3,067)		(10,254)
Plus: Noncontrolling interest guaranteed payment	4,423		8,779
Net income attributable to Beneficient common shareholders - Diluted	$	14,270	$	59,106
Basic weighted average of common shares outstanding (Class A and Class B)	4,361,694		4,150,127
Dilutive effect of:
Series B Preferred Stock	165,036		165,036
Class S Ordinary	66,982		66,982
Class S Preferred	605		605
Preferred Series A Subclass 0	102,832,018		77,582,588
Preferred Series A Subclass 1	330,926,963		249,670,975
Restricted Stock Units	561,766		296,608
Diluted weighted average of common shares outstanding (Class A and Class B)	438,915,064		331,932,921
Diluted net income attributable to Beneficient per common share (Class A and Class B)	$	0.03	$	0.18

For the three and six months ended September 30, 2023, as the Company was in a net loss position, the diluted EPS calculation for the Beneficient common shareholders is the same as basic EPS per common share disclosed above for that period. Diluted EPS for the Class A shareholders is $(115.95) and diluted EPS for the Class B shareholders is $(113.50) for the three months ended September 30, 2023. Diluted EPS for the Class A shareholders is $(521.17) and diluted EPS for the Class B shareholders is $(454.08) for the six months ended September 30, 2023.

In computing diluted net loss per share, we considered potentially dilutive shares. Anti-dilutive shares not recognized in the diluted net loss per share calculation for the three and six months ended September 30, 2024 and 2023, were as follows:

	Shares		Shares
	Three Months Ended September 30,		Six Months Ended September 30,
	2024	2023	2024	2023
Class S Ordinary	—	66,982	—	67,936
Class S Preferred	—	605	—	605
Preferred Series A Subclass 0	—	90,445,956	—	32,916,204
Preferred Series A Subclass 1	—	291,066,987	—	110,618,486
Preferred Series C Subclass 1	—	29,919	—	151,917
Restricted Stock Units	121,721	127,742	122,098	123,536
Convertible Debt	396,174	—	199,169	—
Warrants	31,270,860	30,669,850	31,073,825	24,708,118
Total anti-dilutive shares	31,788,755	412,550,601	31,395,092	168,595,329

Conversion of BCH Preferred C-1 Unit Accounts

Pursuant to the UPA, on July 10, 2023, the BCH Preferred C-1 Unit Accounts automatically converted into 550,510 shares of Class A common stock at approximately $372.80 per share, which represents the volume-weighted average trading price of the Class A common stock for the 20 trading days following the closing of the Business Combination.

Conversion of Series B-1 Preferred Stock

On October 3, 2023, 3,768,995 shares of Series B-1 preferred stock converted into 172,574 shares of Class A common stock at a price per share of approximately $218.40.

Warrants

The disclosed amount of anti-dilutive securities for the warrants does not consider the assumed proceeds under the treasury stock method as the exercise price was greater than the average market price of the Class A common stock, which results in negative incremental shares, that would be anti-dilutive.

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Income Taxes

6 Months Ended

Sep. 30, 2024

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

The components of income tax expense for the three and six months ended September 30, 2024 and 2023, were as follows:

(Dollars in thousands)	Three Months Ended September 30,				Six Months Ended September 30,
	2024		2023		2024		2023
Current expense
Federal	$	—	$	—	$	28	$	—
Deferred expense
Federal	—		—		—		—
Income tax expense	$	—	$	—	$	28	$	—

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Related Parties

6 Months Ended

Sep. 30, 2024

Related Party Transactions [Abstract]

Related Parties

Related Parties

The Company considers its employees and directors to be related parties. A “Related Entity” or “Related Entities” include certain trusts that are directly or indirectly controlled by, or operate for the benefit of, Mr. Heppner or his family, and those entities directly or indirectly held by, or that are under common control with, such trusts, and in which he and his family

members are among classes of economic beneficiaries, whether or not Mr. Heppner is entitled to economic distributions from such trusts. Mr. Heppner is a beneficiary of the trust that is the sole shareholder of BHI (such trust, the “Related Entity Trust”).

Relationship with Beneficient Management Counselors, L.L.C.

For periods prior to the conversion of BCG to a Nevada corporation, Ben Management was the general partner of Ben and Ben Management was governed by a board of directors. The governing document of Ben Management provided that Beneficient Management Counselors, L.L.C. (“BMC”), wholly owned by one of several Related Entities, determined the directors of Ben Management who filled 49% of the Board seats. BMC was also entitled to select (a) 50% of the membership of the Ben Management’s Nominating Committee and Executive Committee and appoint the chair of each of these committees, and (b) 50% of the membership of the Community Reinvestment Committee (the “CRC”) and the CRC’s chairperson and lead committee member. Certain decisions with respect to Ben’s charitable giving program were delegated to the CRC, including certain decisions on behalf of BFF as a Kansas TEFFI. Decisions regarding appointment and removal of Ben Management’s directors, other than directors appointed by BMC, were delegated, with certain exceptions, to the Nominating Committee of Ben Management of which our Chief Executive Officer and Chairman was a member and Chairman. In the event of a tie vote of the Nominating Committee on a vote for the appointment or removal of a director, the majority of the then total number of directors serving on the board of directors would break the tie; provided that upon and following a “trigger event” (as defined in Ben Management’s governing document) the chair of the Nominating Committee may cast the tie-breaking vote. Subsequent to the conversion of BCG to a Nevada corporation, Beneficient is governed by a board of directors and Beneficient’s common equity holders are entitled to vote on all matters on which stockholders generally are entitled to vote as described in Note 10, Equity.

Services Agreement with Bradley Capital Company, L.L.C.

BCG and BCH entered into an agreement with Bradley Capital Company, L.L.C. (“Bradley Capital”) and BMC effective June 1, 2017 (the “Bradley Capital Agreement”), which was then amended and restated effective January 1, 2022 (the “A&R Bradley Capital Agreement”). Bradley Capital is a Related Entity. Under the Bradley Capital Agreement and the A&R Bradley Capital Agreement, Bradley Capital is entitled to a current base fee of $0.4 million per quarter for executive level services provided by an executive of Bradley Capital, who, prior to BCG’s conversion to a Nevada corporation on June 7, 2023, was our Chief Executive Officer and Chairman of Ben Management’s Board of Directors and currently is our Chief Executive Officer and Chairman of our Board, together with a current supplemental fee of $0.2 million per quarter for administrative and financial analysis, with both the base fee and supplemental fee, subject to an annual inflation adjustment. The base fee may be increased by the provider up to two times the initial base fee per quarter to cover increases in the cost of providing the services, or in the event of an expansion of the scope of the services, with the approval of the Executive Committee of the Board of Ben Management prior to June 7, 2023 and the Executive Committee of our Board subsequent to June 7, 2023, of which our CEO & Chairman is a member and Chairman. Our CEO and Chairman receives an annual salary from the Company of $0.2 million and both he and other employees of Bradley Capital can participate in equity incentive plans sponsored by the Company. The Bradley Capital Agreement and the A&R Bradley Capital Agreement also includes a payment from Ben of $0.2 million per year, paid in equal quarterly installments, to cover on-going employee costs for retired and/or departed employees of predecessor entities prior to September 1, 2017, which on-going costs were assumed by Bradley Capital, as well as a further payment to Bradley Capital in respect of the cost of health and retirement benefits for current employees of Bradley Capital all of which are reimbursed by Ben.

The Bradley Capital Agreement and the A&R Bradley Capital Agreement requires Ben to reimburse Bradley Capital or its affiliates for taxes, fees, and expenses, including legal fees and related costs, relating to the contributions by affiliates of Bradley Capital of equity or debt interests in Ben to public charitable trusts in connection with the 2017-18 Exchange Trusts, as well as the contribution of beneficial interests in customer trusts administered by Ben. The A&R Bradley Capital Agreement further requires that Ben indemnify and hold Bradley Capital harmless against any and all losses, damages, costs, fees and any other expenses incurred by Bradley Capital as air travel expenses owed in connection with the operation of the aircraft identified in the Aircraft Sublease (as defined below) for periods prior to January 1, 2022. Additionally, the Company provides office space and access to needed technology systems and telephone services. Payments by Ben to Bradley Capital and its affiliates are guaranteed and subject to enforcement by the state courts in Delaware in the event of default. The A&R Bradley Capital Agreement extended through December 31, 2022, with an automatic annual one-year renewal provision thereafter. Prior to June 7, 2023, the A&R Bradley Capital Agreement could have been terminated by the mutual agreement of the parties, by the unanimous approval of the Executive Committee of the Board of Ben Management of which an executive of a Related Entity is a member, or without such approval if the Related Entity no longer holds the lesser of $10.0 million of Ben’s securities or 1% of the aggregate fair market value of Ben on both December 31, 2022, or any applicable extension date, and the date of termination.

On June 7, 2023 BCG’s existing Bradley Capital Agreement, was replaced by a Second Amended and Restated Services Agreement (the “Second A&R Bradley Capital Agreement”) with the Company as a party. The Second A&R Bradley Capital Agreement is substantially similar to the existing Bradley Capital Agreement, subject to certain changes as follows. The Executive Committee (as defined in the Second A&R Bradley Capital Agreement) reference was revised to refer to the Executive Committee of the Board, and the Second A&R Bradley Capital Agreement expressly states that it shall in no way limit the authority of Board to appoint and remove officers of the Company, including its chief executive officer. The term of the Second A&R Bradley Capital Agreement extends through December 31, 2023, with an annual one-year renewal provision thereafter. The termination provision was revised so that the agreement may be terminated upon the approval of all members of the Executive Committee, excluding Brad K. Heppner if he is then serving on the Executive Committee. The base fee was increased to $0.5 million per quarter and the supplemental fee was increased to $0.2 million per quarter, with each fee remaining subject to an annual inflation adjustment. In addition, revisions were made to the limitation of liability and indemnification provisions to reflect the applicability of the corporation laws of Nevada to Beneficient.

During the three months ended September 30, 2024 and 2023, the Company recognized expenses totaling $0.7 million and $0.7 million related to this services agreement, respectively. During the six months ended September 30, 2024 and 2023, the Company recognized expenses totaling $1.4 million and $1.4 million related to this services agreement, respectively. As of September 30, 2024 and March 31, 2024, $3.1 million and $2.7 million, respectively, was owed to Bradley Capital related to the ongoing aspects of this services agreement. In addition, prior to the Aircraft Sublease with Bradley Capital discussed below, we also reimbursed Bradley Capital for certain costs, including private travel, for our chief executive officer, including family members. As of September 30, 2024 and March 31, 2024, we have nil and $0.7 million accrued related to these reimbursements originating prior to the Aircraft Sublease. These amounts are reflected in the accounts payable and accrued expenses line item on the consolidated statements of financial condition. During the three and six months ended September 30, 2024, the Company paid $0.4 million and $1.6 million, respectively, related to accrued amounts owed under this services agreement.

In addition to the above, the Company incurred legal fees on behalf of Mr. Heppner under certain indemnification provisions. During the three months ended September 30, 2024 and 2023, these legal fees totaled approximately $1.4 million and $1.2 million, respectively. During the six months ended September 30, 2024 and 2023, these legal fees totaled approximately $2.6 million and $2.3 million, respectively. Substantially, all of these legal fees have or are expected to be eligible for reimbursement by the directors and officers insurance carriers.

Aircraft Sublease with Bradley Capital

Effective January 1, 2022 and January 1, 2023, The Beneficient Company Group (USA), L.L.C. (“Beneficient USA”), a subsidiary of BCH, as sublessee, Bradley Capital, as sublessor, and BCG, solely as it relates to the guarantee it makes to Bradley Capital as set forth therein, entered into an Aircraft Sublease Agreement (the “Aircraft Sublease”). Pursuant to the Aircraft Sublease, Bradley Capital subleases the aircraft described therein, without a crew, to Beneficient USA for discrete periods of use. Beneficient USA is required to pay a quarterly rental of $1.4 million plus direct operating expenses incurred for Ben’s use of the aircraft. Bradley Capital is required to pay any other fixed and variable costs of operating the aircraft. Beneficient USA is also required to provide its own pilot(s) and crew, and Beneficient USA has entered into a separate Flight Crew Services Agreement with an unrelated third-party to provide the qualified flight crew. The term of the Aircraft Sublease is one (1) year and may be terminated by either party upon three (3) days prior written notice and will automatically terminate upon the sale or similar disposition of the aircraft or the termination of the underlying lease agreement. Additionally, BCG agrees to unconditionally guarantee, for the benefit of Bradley Capital, all of the obligations of Beneficient USA to Bradley Capital under the Aircraft Sublease. The Aircraft Sublease expired on January 1, 2024.

During the three and six months ended September 30, 2023, BCH expensed $1.4 million and $2.9 million, respectively, in lease and direct operating expenses related to this agreement. No amounts have been paid to Bradley Capital related to the aircraft sublease through September 30, 2024. As of each of September 30, 2024 and March 31, 2024, $10.8 million of accrued costs related to the sublease is reflected in the accounts payable and accrued expenses line item on the consolidated statements of financial condition.

As discussed below, BHI, a Related Entity, entered into a Contribution Agreement with BCH and BCG pursuant to which BHI has agreed to reimburse BCG for a significant portion of the costs incurred by Beneficient USA under the Aircraft Sublease.

Relationship with Beneficient Holdings, Inc.

Beneficient USA, a subsidiary of BCH, entered into with BHI, a Related Entity, a Services Agreement effective July 1, 2017 (the “BHI Services Agreement”). BHI pays an annual fee of $30,000 to Ben for the provision of trust administration services for Related Entities and all trusts affiliated with its family trustee as that term is defined in the governing documents for a Related Entity. Beneficient USA also is required to provide any other services requested by BHI, subject to any restrictions in

the operating agreement of BHI, at cost. The term of the BHI Services Agreement extends for the longer of (i) five years past the expiration or termination of the Bradley Capital Agreement, or (ii) seven years after the family trustee of the Related Entity is no longer a primary beneficiary of any trust affiliated with the family trustee. The Company recognized nominal income during the three and six months ended September 30, 2024 and 2023, respectively, in accordance with the BHI Services Agreement.

In conjunction with the execution of the Aircraft Sublease, BHI, a Related Entity, BCH, and BCG entered into a Contribution Agreement effective as of January 1, 2022 and January 1, 2023 (the “Contribution Agreement”). Pursuant to the Contribution Agreement, BHI agrees to pay to BCH, on the last business day of each calendar quarter, any amounts paid by BCH during the quarter for the use of an aircraft under the Aircraft Sublease, or any similar lease or sublease, which would include the quarterly rental under the Aircraft Sublease. In addition, BHI agrees to pay to BCH any amounts paid related to fixed monthly or quarterly costs incurred in connection with such aircraft lease or sublease in an amount not to exceed $250,000 per year. This additional payment is intended to partially cover flight crew costs and other related costs. Each contribution is conditioned upon (i) the effectiveness of the Aircraft Sublease, and (ii) BCH’s timely payment to BHI of the guaranteed payment to be made to holders of BCH Preferred A.0 for the respective quarter in which such contribution is to be paid (whether or not waived in accordance with the terms of the BCH LPA); provided, that if such guaranteed payment is not timely paid, or is only paid in part, for any given quarter, then any contributions contemplated under the Contribution Agreement for such quarter will not be owed. In the event such guaranteed payment is subsequently paid in full, then any previously unfunded contributions for the applicable quarter under the Contribution Agreement will become immediately due and payable on the last business day of the calendar quarter in which such guaranteed payment is paid in full. All payments made by BHI to BCH pursuant to the Contribution Agreement shall be treated as capital contributions, as defined in the BCH LPA, by BHI to BCH and shall be added to BHI’s sub-capital account related to its BCH Class S Ordinary Units. BCH further agrees to specially allocate to BHI’s sub-capital account related to its BCH Class S Ordinary Units any expenses or deductions derived from amounts paid or accrued by BCH for use of the aircraft to the extent such expenditures are offset by the contributions made by BHI pursuant to the Contribution Agreement. There have been no contributions from BHI related to this agreement, which is expected and will continue to occur until the guaranteed payments to BCH Preferred A.0 holders are no longer deferred.

BHI owns the majority of the Company’s Class B common stock, and the BCH Class S Ordinary Units, BCH Class S Preferred Units, BCH Preferred A.0, BCH Preferred A.1, and FLP Subclass 1 and Subclass 3 Unit Accounts issued by BCH.

HCLP Nominees, L.L.C.

HCLP is an indirect subsidiary of Highland Consolidated, L.L.C. (“Highland”). Ben’s Chairman and CEO is a beneficiary and trust investment advisor of the trusts that control, and are the partners of, Highland. Loans to and investments with or in the Related Entities have been and may be made by Highland, or its affiliates, as applicable, using proceeds from loan repayments made by Ben to HCLP in its capacity as lender to Ben. Ben is not a party to these transactions between Highland and the Related Entities.

A long-standing lending and investment relationship of 26 years exists between Highland (and its affiliates or related parties), on the one hand, and Related Entities, on the other. From time to time, Highland or its affiliates have advanced funds under various lending and investing arrangements to Related Entities, and such Related Entities have made repayments to Highland or its affiliates, as applicable, both in cash and in kind.

As of June 30, 2021, Highland and the applicable Related Entity mutually agreed to satisfy all obligations under all outstanding loans among Highland and the Related Entity via full payment and satisfaction of the existing loan balances (the “Loan Balances”) by in-kind real property transfers (the “In-Kind Property Payment”) from certain of the Related Entities to Highland. The terms of the In-Kind Property Payment grant Highland the right to transfer the real property that was transferred pursuant to the In-Kind Property Payment back to certain of the Related Entities, in exchange for a BCH Preferred A.1 capital account balance in BCH in an amount equal to the Loan Balances, with such exchange to be satisfied from existing BCH Preferred A.1 that are held by such Related Entities.

Since June 30, 2021, additional net advances have been made by Highland to a Related Entity. As of September 30, 2024 and March 31, 2024, Highland Consolidated, L.P. had outstanding loans in the principal amount of $10.8 million and $11.5 million, respectively, with a Related Entity. Ben is not a party to these loans, nor has it secured or guaranteed the loans.

The Company incurred legal fees of approximately $0.5 million and $0.5 million on behalf of HCLP pursuant to the indemnification obligations under the HCLP credit agreements during the three months ended September 30, 2024 and 2023, respectively. During the six months ended September 30, 2024 and 2023, these legal fees totaled approximately $1.0 million and $0.6 million, respectively.

Relationship with The Heppner Endowment for Research Organizations, L.L.C. (“HERO”) and Research Ranch Operating Company, L.L.C (“RROC”).

HERO and RROC are indirectly owned by The Highland Investment Holdings Trust, The Highland Great Plains Trust and The Highland Partner Holdings Trust. Mr. Heppner is a permissible beneficiary of The Highland Investment Holdings Trust and The Highland Partner Holdings Trust, but he is not a beneficiary of The Highland Great Plains Trust. Mr. Heppner’s family members are potential beneficiaries of each of these three trusts. HERO was created to (i) to serve as an advisor to National Philanthropic Trust (“NPT”), an unrelated third-party charitable organization, regarding the disbursement of grants to qualifying organizations, and (ii) to serve as an advisor to NPT regarding the administration of charitable contributions made for the benefit of such qualifying organizations. Although HERO can advise on these matters, NPT possessed all final decision-making authority on charitable contributions and complete control over the proceeds received by the charitable organizations. The charitable accounts administered by NPT (“Charitable Accounts”), the beneficiaries of which have historically been multiple Texas universities, have historically received proceeds from certain trusts settled and funded by customers of Ben, in support of their charitable initiatives. HERO does not receive any proceeds from trusts settled and funded by customers of Ben.

RROC’s purpose is to provide funding and operational support for the research activities conducted by the qualified charities. The funding received by RROC, from proceeds of trusts settled and funded by customers of Ben, may be used, in RROC’s discretion, to (i) provide appropriate facilities and properties for the charitable organizations to utilize as part of their charitable initiatives (those properties and facilities being owned by a Related Entity), and (ii) provide fee revenue to RROC. RROC is granted such rights and authority pursuant to trust instruments entered into between a customer and subsidiaries of Ben as well as an agreement with NPT. Ben’s subsidiaries provide financing to the Customer ExAlt Trusts and Ben is paid as an agent of the trustees for administrative services it provides to the trusts. Ben has certain outstanding payables, including accrued interest, to RROC and the Charitable Accounts (for the benefit of the Texas universities as discussed above) of $2.2 million and $2.2 million as of September 30, 2024 and March 31, 2024, respectively. There were no payments made during the three and six months ended September 30, 2024 and 2023. Due to changes in the Customer ExAlt Trust agreements, no incremental amounts are expected to be allocated to RROC or the Charitable Accounts other than those amounts already provided by certain prior trust agreements. During the three and six months ended September 30, 2023, the trust advisor to certain of the Customer ExAlt Trusts reassigned the beneficial interest held at NPT to the Kansas TEFFI Economic Growth Trust.

Beneficient Heartland Foundation, Inc.; Initial Charitable Initiative

In connection with each of Ben’s liquidity transactions following the adoption of the TEFFI legislation and BFF’s receipt of a fully-operational trust company charter under the Kansas TEFFI Act, pursuant to Section 28 of the TEFFI Act, a “Qualified Distribution” is made for the benefit of certain economic growth zones and rural communities in the State of Kansas (each, a “Charitable Distribution”). In January 2022, Ben announced its initial $15.4 million Charitable Distribution. The Charitable Distribution was allocated as follows: $2.7 million of cash for the benefit of, and to be received by, the Kansas Department of Commerce to be used at the department’s discretion for development projects and the promotion and growth of the TEFFI industry in Kansas; $0.2 million of cash and assets for the benefit of public charities dedicated to economic development within Mr. Heppner’s hometown of Hesston, Kansas, and surrounding Harvey County, Kansas, as outlined in the TEFFI Act; and $12.5 million in cash and assets to the Beneficient Heartland Foundation, Inc. (“BHF”) as described below. Mr. Heppner’s hometown is Hesston, Kansas and certain of his family members continue to live and/or work in Hesston and other areas of Harvey County, Kansas and may be considered to be direct and indirect beneficiaries of the portions of the initial Charitable Distribution provided to Hesston and Harvey County and to BHF.

On January 20, 2022, BHF was formed as a Kansas nonprofit corporation to receive economic growth contributions pursuant to the TEFFI legislation. BHF is currently governed by an eight-member board of directors, six of whom are community leaders within the Hesston, Kansas community and two of whom are Ben employees or individuals otherwise affiliated with Ben. BHF is organized and operated exclusively for charitable and educational purposes within the meaning of Section 501(c)(3) of the Internal Revenue Code. Its purpose is to provide grants and other support to benefit growth, development and expansion of opportunities in rural Kansas communities with populations of 5,000 residents or less, including job and income growth, main street revitalization, educational facility improvements, construction and development, healthcare facility enhancements, senior facility improvements, and support for post-secondary institutions. BHF has the exclusive decision-making authority over all of the economic growth contributions it receives.

BFF is the sole member of BHF and has the right to appoint up to eleven members of BHF’s Board of Directors. The remaining two board members are appointed by BMC. Pursuant to the requirements of the Internal Revenue Code, BFF’s governing documents prohibit any of BHF’s assets or earnings from inuring to the benefit of BFF, BMC, or any director, officer or other private individual.

The Kansas TEFFI Economic Growth Trust

The Kansas Economic Growth Trust (the “EGT”) is a common law trust formed on December 7, 2021 by and between an individual as independent trustee, Ben Custody as administrator, and BCH as advisor. The purpose of the EGT is to receive the proceeds of the Customer ExAlt Trusts that are allocable to the Charitable Beneficiaries and to allocate such proceeds between the Kansas Department of Commerce and qualified charitable organizations (including the Beneficient Heartland Foundation, Inc.) in accordance with the requirements of the TEFFI legislation. The proceeds received by the EGT are dedicated exclusively to charitable purposes and the trust agreement prohibits any of the EGT’s assets or earnings from inuring to the benefit of Ben Custody, BCH, any director, officer or other private individual. As noted above, Ben Custody provides administrative and accounting services to the EGT, and BCH serves as advisor to the trustee with respect to the administration and distribution of the trust. Neither Ben Custody nor BCH charges a fee for these services. During the year ended March 31, 2023, the trust advisor to certain of the Customer ExAlt Trusts reassigned the beneficial interest held at NPT to the EGT.

Ben has an outstanding payable to EGT of nil and $0.1 million as of September 30, 2024 and March 31, 2024, respectively. Ben paid $0.1 million and $0.3 million during the three and six months ended September 30, 2024, compared to $0.3 million and $0.7 million for the same periods of 2023, respectively, related to allocable proceeds to Charitable Beneficiaries. Additionally, during the year ended March 31, 2023, Ben sold its Kansas properties to the EGT in exchange for a $1.4 million promissory note, which is in the other assets line items on the consolidated statements of financial condition as of September 30, 2024 and March 31, 2024. The EGT made a prepayment on the promissory note of $0.2 million during the three months ended September 30, 2024, principally in return for the promissory note being extended by two years, until September 30, 2028.

Hicks Holdings, L.L.C.

Hicks Holdings, L.L.C., an entity associated with one of Ben’s current directors, is one of the owners and serves as the manager of a limited liability company (“SPV”). A Related Entity also has ownership in the SPV. The SPV holds BCH Preferred A.0 and BCH Preferred A.1 among its investment holdings. Hicks Holdings, L.L.C. is also the sole member of HH-BDH, the lender on outstanding term loans with a subsidiary of Ben.

Hicks Holdings Operating, LLC (“Hicks Holdings”), an entity associated with one of Ben’s current directors, has historically held BCH Preferred A.0, BCH Preferred A.1, BCH Class S Ordinary Units, BCH Class S Preferred Units and Class B common stock of Beneficient. Hicks Holdings was granted its BCH Preferred A.1 and BCH Class S Ordinary Units as compensation for services provided in 2018. Hicks Holdings was granted its BCH Preferred A.0 when a portion of the existing BCH Preferred A.1 converted to BCH Preferred A.0 in 2021. Hicks Holdings converted a portion of its existing BCH Preferred A.1 to BCG Class B Common Units in June 2023 in connection with the recapitalization of BCG described in Note 4. In connection with the letter agreement described below, in October 2023, Hicks Holdings assigned the BCH Preferred A.0, BCH Preferred A.1, BCH Class S Ordinary Units, and BCH Class S Preferred Units to HH-BDH. The total preferred equity of BCH, BCH Class S Preferred Units and BCH Class S Ordinary Units balance as of September 30, 2024 and March 31, 2024, was $26.6 million and $27.5 million, respectively (amounts disclosed here are based on their GAAP capital accounts). Hicks Holdings held 16,528 shares of Class B common stock as of September 30, 2024 and March 31, 2024. Additionally, during the quarter ended September 30, 2024, Mr. Hicks and an entity controlled by Mr. Hicks purchased a total of 100,000 shares of Class A common stock for a purchase price of approximately $0.2 million.

The Company has outstanding payable amounts to Hicks Holdings related to the HH-BDH Credit Agreement totaling approximately $0.3 million as of September 30, 2024. No such amount was outstanding as of March 31, 2024.

Letter Agreement with Hicks Holdings

In connection with the HH-BDH Credit Agreement and the Financing, on October 19, 2023, the Guarantor, Ben LLC, and Hicks Holdings entered into a letter agreement (the “Letter Agreement”). In connection with the Financing, Hicks Holdings agreed to assign to HH-BDH (which is wholly-owned by Hicks Holdings) all of its rights, title and interest in and to the following partnership interests of the Guarantor: BCH Preferred A.0 with a capital account balance of $15.3 million as of June 30, 2023, BCH Preferred A.1 with a capital account balance of $48.1 million as of June 30, 2023, 1 BCH Class S Preferred Units and 3,640 BCH Class S Ordinary Units held by HH-BDH (the “Pledged Guarantor Interests”). Hicks Holdings’ membership interest in HH-BDH (collectively with the Pledged Guarantor Interests, the “Pledged Equity Interests”) and the Pledged Guarantor Interests serve as collateral for the Financing (together, the “Lender Pledge”).

Pursuant to the terms of the Letter Agreement, the parties thereto agreed that if the Borrower and/or Guarantor default under the HH-BDH Credit Agreement and such default results in a foreclosure on, or other forfeiture of, the Pledged Equity Interests, the Guarantor will promptly issue to Hicks Holdings, BCH Preferred A.0 with a capital account balance of $15.3 million, BCH Preferred A.1 with a capital account balance of $48.1 million, 1 BCH Class S Preferred Units and 3,640 BCH Class S Ordinary Units (subject to a tax gross-up as provided in the Letter Agreement), or, in the discretion of Hicks

Holdings, equivalent securities of equal fair market value to the value of the security interests at the time of the applicable foreclosure or other loss (such newly issued equity interests referred to as the “Replacement Equity Interests”); provided, however that, if less than all Pledged Equity Interests have been foreclosed on or forfeited, the foregoing capital account balances and numbers of units comprising the Replacement Equity Interests shall be reduced on a class-by-class and subclass-by-subclass basis, as applicable, to the extent necessary to ensure that Hicks Holdings and its affiliates do not receive additional value relative to the value held by Hicks Holdings and its affiliates immediately prior to the foreclosure or forfeiture. Furthermore, Ben LLC shall cause a Ben LLC Unit (as defined in the BCH LPA) to be issued for each BCH Class A Unit issued to the Hicks Holdings pursuant to the Letter Agreement. Additionally, the Guarantor agreed to indemnify Hicks Holdings and its affiliates and hold each of them harmless against any and all losses which may arise directly or indirectly in connection with, among other things, the HH-BDH Credit Agreement, the Term Loan, the Financing and the Lender Pledge.

Shared Services Agreement with GWG Holdings

On May 27, 2020, Ben and GWG Holdings (acting through a then constituted special committee of the Board of Directors of GWG Holdings) entered into a shared services agreement effective as of January 1, 2020 (the “Shared Services Agreement”). The term of the Shared Services Agreement had an initial term of one year from the effective date and renewed automatically for successive one-year terms. Due to the filing by GWG Holdings for reorganization under the Chapter 11 Bankruptcy Code in April 2022, neither party was authorized to terminate the Shared Services Agreement. The Shared Services Agreement terminated upon the effective of GWG Holdings’ bankruptcy plan on August 1, 2023. Pursuant to the Shared Services Agreement, GWG Holdings paid a quarterly fee to Ben for the provision of accounting and finance, general and administrative, human resources, sales administration and marketing, underwriting and risk management, information technology and legal services for GWG Holdings and its direct or wholly-owned subsidiaries. The total service fee for each quarter was determined in good faith by Ben on the final day of such quarter in accordance with the cost allocation methodology maintained on Ben’s books and records, which provided that, to the extent the Services were eligible for the “services cost method,” as defined in Treasury Regulation §1.482-9(b), the Service Fee shall be equal to the total costs incurred by Ben during each quarter in connection with Ben’s provision of the Services to GWG Holdings or its direct or indirect wholly-owned subsidiaries, and that the Service Fee for Services that are not eligible for the services cost method shall be determined by reference to the “cost of services plus method,” as defined in Treasury Regulation §1.482-9(e).

During the three and six months ended September 30, 2023, GWG Holdings paid approximately $0.1 million and $1.4 million, respectively, to Ben under the Shared Services Agreement. Concurrent with the termination of the Shared Services Agreement on August 1, 2023, all receivables and the related allowance pertaining to amounts owed under the Shared Services Agreement were written off.

Consulting agreements with certain board members

During fiscal 2024, the Company entered into consulting agreements with certain non-management board members. Pursuant to the consulting agreements, Thomas O. Hicks, Richard W. Fisher and Bruce W. Schnitzer agreed to mentor, advise and support Beneficient and its related entities regarding its business of providing services, insurance, liquidity and financing for alternative asset holders and each receive an annual cash fee of $150,000 per year. Such consulting fee is in addition to the annual cash retainer these board members receive under the director compensation program. The consulting agreements have an initial term of one (1) year and automatically renew for successive one (1) year terms unless sooner terminated in accordance with their terms. In the event the initial or any renewal term is terminated before it expires due to a removal or because Messrs. Hicks, Fisher and Schnitzer is not re-elected or re- appointed, in each case without cause (as defined in the consulting agreement), the annual consulting fee will continue to be paid through the end of the initial or renewal term, as applicable. For each consulting agreement, the associated expense is recognized ratably each month over the annual term.

Mr. Fisher retired from our Board effective March 15, 2024 and thus his above referenced consulting agreement terminated during fiscal 2024. Following his resignation, Mr. Fisher has agreed to continue to serve as a consultant to the Company. In connection with such role, Mr. Fisher will receive an annual payment of $50,000, with such amount to be paid in the Company’s Class A common stock.

Subscription agreements with an entity associated with a certain board member

During the three months ended September 30, 2024, an entity associated with Peter T. Cangany, Jr., a member of our board of directors, purchased a total of 262,500 shares of Class A common stock from the Company for an aggregate purchase price of approximately $0.5 million.

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Variable Interest Entities

6 Months Ended

Sep. 30, 2024

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Variable Interest Entities

Variable Interest Entities

In accordance with ASC 810, an enterprise is determined to be the primary beneficiary of a VIE if it holds a controlling financial interest. A controlling financial interest is defined as (a) the power to direct the activities of a VIE that most significantly impact the entity’s economic performance and (b) the obligation to absorb losses of the entity or the right to receive benefits from the entity that could potentially be significant to the VIE. The consolidation guidance requires an analysis to determine (a) whether an entity in which Ben holds a variable interest is a VIE and (b) whether Ben’s involvement, through holding interests directly or indirectly in the entity or contractually through other variable interests (for example, management and performance-related fees), would give it a controlling financial interest. The performance of that analysis requires the exercise of judgment. Based on management’s analysis, there are no VIEs that require consolidation, other than those described below.

VIEs for Which the Company is the Primary Beneficiary

CT Risk Management, L.L.C.

CT, a Delaware limited liability company, is currently governed by the Fourth Amended and Restated Limited Liability Company Agreement entered into on April 27, 2022. CT was created to reduce the impact of a potential market downturn on the interests in alternative assets held by the Customer ExAlt Trusts that collateralize the loans receivable from the Customer ExAlt Trusts held by BFF, or other Ben entities (such loans receivable are eliminated solely for financial reporting purposes in our consolidated financial statements) by distributing any potential profits to certain of the Customer ExAlt Trusts thereby offsetting any reduction in the value of the alternative assets.

CT is considered a VIE as the at-risk equity holder, BFF, does not have all of the characteristics of a controlling financial interest due to BFF’s receipt of returns being limited to its initial investment in CT. The Company concluded that BFF is the primary beneficiary of CT as BFF has the power to direct the most significant activities and has an obligation to absorb potential losses of CT. Accordingly, the results of CT are included in the Company’s consolidated financial statements.

As of September 30, 2024 and March 31, 2024, the consolidated statements of financial condition include assets of this consolidated VIE with a carrying value of nil. For three months ended September 30, 2023, the Company recorded losses of $0.7 million, of which approximately $0.3 million is attributable to Ben or Ben’s loan portfolio, with the remainder attributable principally to the loan involved in the participation loan transaction. The Company recorded losses of $3.0 million during the six months ended September 30, 2023, of which approximately $2.0 million is attributable to Ben or Ben’s loan portfolio, with the remainder attributable principally to the loan involved in the participation loan transaction. The amounts are reported in the gain (loss) on financial instruments, net line item of the consolidated statements of comprehensive income (loss), for the three and six months ended September 30, 2023. No options were held as of and during the three and six months ended September 30, 2024.

Customer ExAlt Trusts

The Company determined that all of the Customer ExAlt Trusts used in connection with its operations are VIEs of which Ben is the primary beneficiary as defined under ASC 810. The Company concluded that it is the primary beneficiary of the Customer ExAlt Trusts as it has the power to direct the most significant activities and has an obligation to absorb potential losses of the Customer ExAlt Trusts. Accordingly, the results of the Customer ExAlt Trusts are included in the Company’s consolidated financial statements. Although the Company is deemed to be the primary beneficiary of the Customer ExAlt Trusts for purposes of ASC 810, it is neither designated as a beneficiary under the trust agreements nor recognized as a beneficiary of such trusts under applicable state trust law. The assets of the Customer ExAlt Trusts may only be used to settle obligations of the Customer ExAlt Trusts. Other than potentially funding capital calls above the related reserve (refer to Note 17), there is no recourse to the Company for the Customer ExAlt Trusts’ liabilities. The cash flows generated by these VIEs are included within the Company’s consolidated statements of cash flows.

The consolidated statements of financial condition include the following amounts from these consolidated VIEs as of the dates presented:

(Dollars in thousands)	September 30, 2024		March 31, 2024
Assets:
Cash and cash equivalents	$	1,008	$	963
Restricted cash	314		64
Investments, at fair value	334,987		329,113
Other assets	32		30
Total Assets of VIEs	$	336,341	$	330,170
Liabilities:
Accounts payable and accrued expense	$	2,316	$	1,670
Other liabilities	19		109
Total Liabilities of VIEs	$	2,335	$	1,779
Equity:
Treasury stock	$	(3,444)	$	(3,444)
Noncontrolling interests	(171,110)		(165,712)
Accumulated other comprehensive income	281		276
Total Equity of VIEs	$	(174,273)	$	(168,880)

The consolidated statements of comprehensive income (loss) for the periods presented include the following amounts from these consolidated VIEs:

	Three Months Ended September 30,				Six Months Ended September 30,
	2024		2023		2024		2023
(Dollars in thousands)
Revenues
Investment income (loss), net	$	8,541	$	(13)	$	19,569	$	487
Gain (loss) on financial instruments, net	572		(41,875)		(603)		(43,679)
Interest and dividend income	—		2		—		10
Total revenues	9,113		(41,886)		18,966		(43,182)
Operating expenses
Interest expense	—		1,794		—		3,668
Provision for credit losses	476		—		998		—
Professional services	571		884		1,193		2,145
Other expenses	189		26		309		383
Total operating expenses	1,236		2,704		2,500		6,196
Net income (loss)	$	7,877	$	(44,590)	$	16,466	$	(49,378)
Net loss attributable to noncontrolling interests	$	(4,523)	$	(3,592)	$	(5,049)	$	(17,458)

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Segment Reporting

6 Months Ended

Sep. 30, 2024

Segment Reporting [Abstract]

Segment Reporting

Segment Reporting

The Company has three reportable segments consisting of Ben Liquidity, Ben Custody and Customer ExAlt Trusts. As additional products and services are offered in the future, we expect to have additional reportable segments, including Ben Insurance Services and Ben Markets.

As the central operating hub of the company, Ben Liquidity is responsible for offering Ben’s fiduciary alternative asset liquidity and financing products through AltAccess. Ben Custody delivers products that address the administrative and regulatory burden of holding alternative assets by offering full service bespoke custody and trust administration services, and specialized document custodian services to Customers. Certain of Ben’s operating subsidiary products and services involve or are offered to certain of the Customer ExAlt Trusts. Certain of the Customer ExAlt Trusts hold interests in alternative assets and therefore recognize changes in such assets’ net asset value in earnings. Certain other Customer ExAlt Trusts pay interest on the ExAlt Loans to Ben Liquidity and transaction fees to Ben Liquidity and Ben Custody in connection with the liquidity transactions, and pay fees to Ben Custody for providing full-service trust administration services to the trustees of the Customer ExAlt Trusts. The amounts paid to Ben Liquidity and Ben Custody are eliminated solely for financial reporting purposes in our consolidated financial statements but directly impact the allocation of income (loss) to Ben’s and BCH’s equity holders.

The Corporate & Other category includes the following items, among others:

•Equity-based compensation;

•Gains (losses) on changes in the fair value of interests in the GWG Wind Down Trust (or common stock and L Bonds of GWG Holdings, as applicable) held by Ben;

•Interest expense incurred on the corporate related debt transactions; and

•Operations of Ben Insurance Services and Ben Markets that are not considered reportable segments as they do not meet the quantitative criteria to be separately reported.

The Corporate & Other category also consists of unallocated corporate overhead and administrative costs.

These segments are differentiated by the products and services they offer as well as by the information used by the Company’s chief operating decision maker to determine allocation of resources and assess performance. Operating income (loss) is the measure of profitability used by management to assess the performance of its segments and allocate resources. Performance is measured by the Company’s chief operating decision maker on an unconsolidated basis because management makes operating decisions and assesses the performance of each of the Company’s business segments based on financial and operating metrics and data that exclude the effects of consolidation of any of the Customer ExAlt Trusts.

The following tables include the results of each of the Company’s reportable segments reconciled to the consolidated financial statements (in thousands):

	Three Months Ended September 30, 2024
	Ben Liquidity		Ben Custody		Customer ExAlt Trusts		Corporate & Other		Consolidating Eliminations		Total
External revenues
Investment income, net	$	—	$	—	$	8,541	$	—	$	—	$	8,541
Gain (loss) on financial instruments, net	—		—		571		(750)		—		(179)
Interest and dividend income	—		—		—		12		—		12
Trust services and administration revenues	—		187		—		—		—		187
Intersegment revenues
Interest income	11,978		—		—		—		(11,978)		—
Trust services and administration revenues	—		5,199		—		—		(5,199)		—
Total revenues	11,978		5,386		9,112		(738)		(17,177)		8,561
External expenses
Employee compensation and benefits	361		542		—		6,232		—		7,135
Interest expense	3,163		—		—		1,157		—		4,320
Professional services	395		30		545		6,287		—		7,257
Provision for credit losses	—		—		476		—		—		476
Loss on impairment of goodwill	—		298		—		—		—		298
Other expenses	402		187		189		2,012		—		2,790
Intersegment expenses
Interest expense	—		—		36,049		—		(36,049)		—
Provision for credit losses	4,752		—		—		—		(4,752)		—
Other expenses	—		—		3,402		—		(3,402)		—
Total expenses	9,073		1,057		40,661		15,688		(44,203)		22,276
Operating income (loss)	$	2,905	$	4,329	$	(31,549)	$	(16,426)	$	27,026	$	(13,715)

	Three Months Ended September 30, 2023
	Ben Liquidity		Ben Custody		Customer ExAlt Trusts		Corporate & Other		Consolidating Eliminations		Total
External revenues
Investment loss, net	$	—	$	—	$	(13)	$	—	$	—	$	(13)
Loss on financial instruments, net	—		—		(41,875)		(900)		—		(42,775)
Interest and dividend income	—		—		2		112		—		114
Trust services and administration revenues	—		8		—		(95)		—		(87)
Intersegment revenues
Interest income	13,022		—		—		—		(13,022)		—
Trust services and administration revenues	—		6,482		—		—		(6,482)		—
Total revenues	13,022		6,490		(41,886)		(883)		(19,504)		(42,761)
External expenses
Employee compensation and benefits	1,482		545		—		13,371		—		15,398
Interest expense	2,120		—		1,794		1,200		—		5,114
Professional services	264		89		884		5,420		—		6,657
Loss on impairment of goodwill	220,212		86,472		—		—		—		306,684
Other expenses	533		231		26		4,360		—		5,150
Intersegment expenses
Interest expense	—		—		29,835		—		(29,835)		—
Provision for loan losses	60,502		—		—		—		(60,502)		—
Other expenses	—		—		3,850		—		(3,850)		—
Total expenses	285,113		87,337		36,389		24,351		(94,187)		339,003
Operating income (loss)	$	(272,091)	$	(80,847)	$	(78,275)	$	(25,234)	$	74,683	$	(381,764)

	Six Months Ended September 30, 2024
	Ben Liquidity		Ben Custody		Customer ExAlt Trusts		Corporate & Other		Consolidating Eliminations		Total
External revenues
Investment income, net	$	—	$	—	$	19,569	$	—	$	—	$	19,569
Loss on financial instruments, net	—		—		(604)		(758)		—		(1,362)
Interest and dividend income	—		—		—		24		—		24
Trust services and administration revenues	—		376		—		—		—		376
Intersegment revenues
Interest income	22,827		—		—		—		(22,827)		—
Trust services and administration revenues	—		10,392		—		—		(10,392)		—
Total revenues	22,827		10,768		18,965		(734)		(33,219)		18,607
External expenses
Employee compensation and benefits	791		898		—		9,296		—		10,985
Interest expense	6,244		—		—		2,364		—		8,608
Professional services	869		426		1,167		10,339		—		12,801
Provision for credit losses	—		—		998		2		—		1,000
Loss on impairment of goodwill	—		3,427		—		265		—		3,692
Release of loss contingency related to arbitration award	—		—		—		(54,973)		—		(54,973)
Other expenses	853		401		309		4,308		—		5,871
Intersegment expenses
Interest expense	—		—		70,848		—		(70,848)		—
Provision for credit losses	11,679		—		—		—		(11,679)		—
Other expenses	—		—		6,821		—		(6,821)		—
Total expenses	20,436		5,152		80,143		(28,399)		(89,348)		(12,016)
Operating income (loss)	$	2,391	$	5,616	$	(61,178)	$	27,665	$	56,129	$	30,623

	Six Months Ended September 30, 2023
	Ben Liquidity		Ben Custody		Customer ExAlt Trusts		Corporate & Other		Consolidating Eliminations		Total
External revenues
Investment income, net	$	—	$	—	$	487	$	—	$	—	$	487
Loss on financial instruments, net	—		—		(43,679)		(2,557)		—		(46,236)
Interest and dividend income	—		—		10		220		—		230
Trust services and administration revenues	—		15		—		—		—		15
Intersegment revenues
Interest income	25,028		—		—		—		(25,028)		—
Trust services and administration revenues	—		13,050		—		—		(13,050)		—
Total revenues	25,028		13,065		(43,182)		(2,337)		(38,078)		(45,504)
External expenses
Employee compensation and benefits	3,975		1,105		—		46,141		—		51,221
Interest expense	2,878		—		3,668		2,352		—		8,898
Professional services	897		589		2,145		13,399		—		17,030
Loss on impairment of goodwill	1,121,212		281,777		—		—		—		1,402,989
Other expenses	1,187		438		383		10,084		—		12,092
Intersegment expenses
Interest expense	—		—		59,615		—		(59,615)		—
Provision for loan losses	69,998		—		—		—		(69,998)		—
Other expenses	—		—		7,694		—		(7,694)		—
Total expenses	1,200,147		283,909		73,505		71,976		(137,307)		1,492,230
Operating income (loss)	$	(1,175,119)	$	(270,844)	$	(116,687)	$	(74,313)	$	99,229	$	(1,537,734)

	As of September 30, 2024
	Ben Liquidity		Ben Custody		Customer ExAlt Trusts		Corporate & Other		Consolidating Eliminations		Total
Loans to Customer ExAlt Trusts, net	$	260,686	$	—	$	—	$	—	$	(260,686)	$	—
Investments, at fair value	—		—		334,987		—		—		334,987
Other assets	1,609		21,909		18,025		14,392		(35,148)		20,787
Goodwill and intangible assets, net	—		7,469		—		5,545		—		13,014
Total Assets	$	262,295	$	29,378	$	353,012	$	19,937	$	(295,834)	$	368,788
	As of March 31, 2024
	Ben Liquidity		Ben Custody		Customer ExAlt Trusts		Corporate & Other		Consolidating Eliminations		Total
Loans to Customer ExAlt Trusts, net	$	256,184	$	—	$	—	$	—	$	(256,184)	$	—
Investments, at fair value	—		—		329,113		6		—		329,119
Other assets	5,814		20,398		19,467		12,510		(35,513)		22,676
Goodwill and intangible assets, net	—		10,896		—		5,810		—		16,706
Total Assets	$	261,998	$	31,294	$	348,580	$	18,326	$	(291,697)	$	368,501

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Risks and Uncertainties

6 Months Ended

Sep. 30, 2024

Risks and Uncertainties [Abstract]

Risks and Uncertainties

Risks and Uncertainties

The Customer ExAlt Trusts hold investments in alternative assets, public and private equity securities, and debt securities that are exposed to market risk, credit risk, currency risk, and interest rate risk. Currently, these investments, whose cash flows serve as collateral to the ExAlt Loans, primarily are comprised of alternative assets consisting of private equity limited partnership interests, which are primarily denominated in the U.S. dollar, Euro, and Canadian dollar. The financial statements risks, stemming from such investments, are those associated with the determination of estimated fair values, the diminished ability to monetize certain investments in times of strained market conditions, the recognition of income and recognition of impairments on certain investments.

The portfolio of alternative assets covers the following industry sectors and geographic regions for the periods shown below (dollar amounts in thousands):

	September 30, 2024				March 31, 2024
Industry Sector	Value		Percent of Total		Value		Percent of Total
Food and staples retailing	$	66,517	22.1	%	$	41,721	14.2	%
Software and services	44,683		14.8		42,908		14.6
Diversified financials	30,222		10.0		30,297		10.3
Utilities	29,693		9.9		28,768		9.8
Energy	17,151		5.7		19,930		6.8
Capital goods	15,733		5.2		23,146		7.9
Semiconductors and Semiconductor Equipment	14,797		4.9		16,144		5.5
Health care equipment and services	14,441		4.8		16,520		5.6
Other(1)	68,151		22.6		74,482		25.3
Total	$	301,388	100.0	%	$	293,916	100.0	%

(1) Industries in this category each comprise less than 5 percent. Semiconductors and Semiconductor Equipment and Health Care Equipment and Services is shown separately as it comprised greater than 5 percent in the prior period.

	September 30, 2024				March 31, 2024
Geography	Value		Percent of Total		Value		Percent of Total
North America	$	150,864	50.1	%	$	164,205	55.9	%
South America	68,166		22.6		43,543		14.8
Asia	46,342		15.4		49,385		16.8
Europe	35,337		11.7		35,870		12.2
Africa	679		0.2		913		0.3
Total	$	301,388	100.0	%	$	293,916	100.0	%

The ExAlt Loans, which are eliminated upon consolidation solely for financial reporting purposes, are collateralized by the cash flows originating from the Customer ExAlt Trusts’ investments in alternative assets, public and private equity securities, and debt securities, without recourse to the customer. These ExAlt Loans are a key determinant in income (loss) allocable to Ben’s and BCH’s equity holders. Ben has underwriting and due diligence procedures and utilizes market rates. Finally, the Customer ExAlt Trusts provide for excess cash flows from a collective pool of alternative assets, public and private equity securities, and debt securities, to be utilized to repay the ExAlt Loans to Ben from the Customer ExAlt Trusts when cash flows from the customer’s original alternative assets are not sufficient to repay the outstanding principal, interest, and fees. Excess cash flows from the collective pool of alternative assets, public and private equity securities, and debt securities, above those needed to satisfy the outstanding principal interest and fees of the ExAlt Loans are available to pay contingent interest to Ben on the ExAlt Loans up to a specified contingent interest rate.

As discussed in Note 1, Ben received a charter from the state of Kansas and established an office in the state of Kansas. If we are unable to maintain the Kansas charter or obtain a charter from another state if we no longer hold the Kansas charter, our ability to affect parts of our business plan, as currently constituted, may be compromised.

In October 2023, following a series of attacks by Hamas on Israeli civilian and military targets, Israel declared war on Hamas in Gaza. In February 2022, the Russian Federation and Belarus commenced a military action with the country of Ukraine and

as a result, various nations, including the United States, have instituted economic sanctions against the Russian Federation and Belarus. The ongoing Russia-Ukraine conflict and Israel-Hamas conflict could have a negative impact on the economy and business activity globally (including in the countries in which the Customer ExAlt Trusts currently holds investments or may hold investments in the future), and therefore, could adversely affect the performance of the Customer ExAlt Trusts’ investments.

The extent and impact of any sanctions imposed in connection with the Russia-Ukraine conflict may cause financial market volatility and impact the global economy. Volatility and disruption in the equity and credit markets can adversely affect the portfolio companies underlying the investments held by the Customer ExAlt Trusts and adversely affect the investment performance. Our ability to manage exposure to market conditions is limited. Market deterioration could cause the Company to experience reduced liquidity, earnings and cash flow, recognize impairment charges, or face challenges in raising capital, and making investments on attractive terms. Adverse market conditions can also affect the ability of investment funds held by the Customer ExAlt Trusts to liquidate positions in a timely and efficient manner. As a result, this presents material uncertainty and risk with respect to the performance of the investments held by the Customer ExAlt Trusts, even though the Customer ExAlt Trusts do not hold any investments with material operations in Russia, Ukraine, or Israel. The cash flows from the investment held by the Customer ExAlt Trusts serve as the collateral to the ExAlt Loans and the fees that are paid by the Customer ExAlt Trusts to Ben for administering these trusts, both of which are key determinants in the income allocated to BCG’s and BCH’s equity holders.

Further, these events may result in reduced opportunities for future liquidity solution transactions with our customers and make it more difficult for the Customer ExAlt Trusts to exit and realize value from its existing investments, potentially resulting in a decline in the value of the investments held in the Customer ExAlt Trusts. Such a decline could cause our revenue and net income to decline, including the revenues and net income allocated to BCG’s and BCH’s equity holders.

The Company continues to evaluate the impact of the ongoing Russia-Ukraine conflict, Israel-Hamas conflict and other items, such as inflation and rising interest rates, and assess the impact on financial markets and the Company’s business. The Company’s future results may be adversely affected by slowdowns in fundraising activity and the pace of new liquidity transactions with our customers. Management is continuing to evaluate the impact of the Russia-Ukraine conflict and the Israel-Hamas conflict and has concluded that while it is reasonably possible that such conflicts could have a negative effect on the Company’s financial position and/or results of its operations, the specific impact is not readily determinable as of the date of these consolidated financial statements. Consequently, the consolidated financial statements do not include any adjustments that might result from the outcome of these uncertainties.

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Commitments and Contingencies

6 Months Ended

Sep. 30, 2024

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Commitments and Contingencies

In the normal course of business, we have various outstanding commitments and contingent liabilities that are not reflected in the accompanying consolidated financial statements. There are no significant commitments and contingencies other than those disclosed below. Ben is a party to legal actions incidental to the business. Based on the opinion of legal counsel, management has concluded with regard to all commitments and contingencies disclosed below that either the outcome is not probable or the potential liability cannot be reasonably estimated, or both.

Lease Commitments

The Company operates on a month-to-month rental basis for its office premises. The Company also subleased an aircraft under the Aircraft Sublease, which expired on January 1, 2024, with Bradley Capital as discussed in Note 13. Rental expense for our premises and for the Aircraft Sublease for the three months ended September 30, 2024 and 2023, totaled $0.2 million and $1.6 million, respectively. Rental expense for our premises and for the Aircraft Sublease for the six months ended September 30, 2024 and 2023, totaled $0.3 million and $3.3 million, respectively.

Unfunded Capital Commitments

The Customer ExAlt Trusts had $47.2 million and $47.8 million of potential gross capital commitments as of September 30, 2024 and March 31, 2024, respectively, representing potential limited partner capital funding commitments on the interests in alternative asset funds. The Customer ExAlt Trusts holding the interest in the limited partnership for the alternative asset fund is required to fund these limited partner capital commitments per the terms of the limited partnership agreement. Capital funding commitment reserves are maintained by certain of the associated trusts within the ExAlt PlanTM or affiliated entities. To the extent that the associated Customer ExAlt Trust or their affiliated entities cannot pay the capital funding commitment, Ben is obligated to lend sufficient funds to meet the commitment. Any amounts advanced by Ben to the Customer ExAlt Trusts for these limited partner capital funding commitments above the associated capital funding commitment reserves, if any, held by the associated Customer ExAlt Trusts or their affiliated entities are added to the ExAlt Loan balance between Ben and the Customer ExAlt Trusts and are expected to be recouped through the cash distributions from the alternative asset fund that collateralizes such ExAlt Loan.

Capital commitments generally originate from limited partner agreements having fixed or expiring expiration dates. The total limited partner capital funding commitment amounts may not necessarily represent future cash requirements. The majority, or 90%, of our portfolio with an unfunded commitment has a vintage of 2012 and prior. As the vintages continue to age, a cash requirement becomes less likely. We consider the creditworthiness of the investment on a case-by-case basis. At September 30, 2024 and March 31, 2024, there were no reserves for losses on unused commitments to fund potential limited partner capital funding commitments.

Legal Proceedings

Paul Capital Advisors Lawsuit

On February 18, 2022, Paul Capital Advisors (“PCA”) filed a lawsuit against MHT, Ben, and two trust advisors (the “Trust Advisors”), Murray Holland (part-owner of MHT and who served as the President and CEO of GWG Holdings beginning in mid-2019 through November 2022) and James Turvey (an employee of Ben). While Ben was named as a defendant, PCA did not assert claims against or seek relief from Ben but instead only sought the removal and replacement of the Trust Advisors. The lawsuit concerns a set of transactions that utilized a trust structure with MHT as the sole beneficiary.

On April 18, 2022, PCA amended its original complaint. The amended complaint asserted six new causes of action arising out of the same set of transactions, including, (i) purported breaches of contract against Ben, MHT, and the Trust Advisors; (ii) purported fraud against MHT, Ben and certain officers of Ben; and (iii) promissory estoppel against MHT, Ben, and the Trust Advisors. The amended complaint also sought additional relief in the form of (x) damages “in an amount to be proven at trial” and (y) an order granting rescission of an amendment to one of the transaction agreements or a holding declaring it invalid.

On October 3, 2022, the Court entered an order dismissing count I of PCA’s complaint in accordance with its memorandum opinion and count II in light of the parties’ agreement that it should also be dismissed. On November 1, 2022, defendants filed their opening briefs in support of their motions to dismiss the remaining counts. On December 20, 2022, PCA filed its answering brief in opposition to defendants’ motions to dismiss the remaining counts. In accordance with the parties’ stipulated briefing schedule, defendants’ reply briefs were due by January 24, 2023. Oral argument on the motions to dismiss was held on May 8, 2023. On August 29, 2023, the Court issued a letter opinion that denied defendants’ motions to dismiss with respect to most of the remaining counts, explaining that the Court was unwilling to determine the parties’ rights under the various agreements at the pleadings stage and that discovery may make these issues ripe for summary judgment. The Court did, however, grant defendants’ motions to dismiss as to one of PCA’s promissory estoppel claims and its claim for equitable fraud. On October 25, 2023, defendants filed their respective answers to PCA’s second amended complaint.

On November 9, 2023, defendants filed a motion to bifurcate, requesting that the Court of Chancery first resolve the threshold issue of PCA’s standing under the CVR Contract and Exchange Trust Agreements before proceeding on the merits. On November 29, 2023, PCA filed its opposition to defendants’ motion to bifurcate, and on December 8, 2023, defendants filed their reply brief. On June 24, 2024, the Court of Chancery heard oral argument and issued its ruling granting defendants’ motion to bifurcate. In its ruling, the Court of Chancery ordered the parties to promptly conduct limited standing-related discovery to allow final resolution of the standing issue on summary judgment by January 2025.

Defendants intend to vigorously defend against each and every cause of action asserted against them in the second amended complaint. Due to the inherent uncertainties of litigation, we cannot accurately predict the ultimate outcome of this matter. Given the uncertainty of litigation and the preliminary stage of this claim, we are currently unable to estimate the probability of the outcome of these actions or the range of reasonably possible losses, if any, or the impact on our results of operations, financial condition or cash flows; however, the maximum exposure of the litigation with PCA could be up to $350 million plus costs and expenses.

Equity Awards Arbitration

On December 16, 2022, a former member of the Board of Directors of Beneficient Management, LLC (the “Claimant”) initiated a private arbitration in the International Court of Arbitration of the International Chamber of Commerce, challenging the termination of certain equity awards under two incentive plans by the administrator of the incentive plans. The Claimant sought total damages of $36.3 million plus attorney’s fees and punitive damages. On April 23, 2024, the sole arbitrator held that in terminating the Claimant’s equity awards, the Company had breached its contractual obligations, and as a result, awarded the Claimant $55.3 million in compensatory damages, including pre-judgment interest, plus post-judgment interest (the “Arbitration Award”). Neither attorneys’ fees nor punitive damages were awarded to the Claimant. The Company was also asked to pay arbitration-related costs in the amount of approximately $0.1 million. The Company recorded a loss related to the Arbitration Award in the year ended March 31, 2024 consolidated statement of comprehensive income (loss) in the amount of $55.0 million. The liability associated with the Arbitration Award was reflected in the accounts payable and accrued expenses line item in the March 31, 2024 consolidated statement of financial condition.

On July 29, 2024, the Texas State District Court, Dallas County 134th Judicial District (the “Texas District Court”) entered an order vacating the Arbitration Award in its entirety. The Texas District Court directed the parties to file motions requesting any further relief that may be available within twenty days of the order. On August 2, 2024, the Claimant filed an appeal to challenge the order vacating the Arbitration Award in the Texas Fifth Court of Appeals. The Company intends to vigorously defend itself in connection with the appeal.

As a result of the order, during the three-months ended June 30, 2024, the Company released the liability associated with the Arbitration Award, which resulted in the release of the previously recognized loss contingency accrual in the amount of $55.0 million being reflected in the six months ended September 30, 2024 consolidated statement of comprehensive income (loss).

GWG Holdings Reorganization and Other Litigation

On April 20, 2022 and October 31, 2022, GWG Holdings and certain of its subsidiaries (the “Debtors”) filed voluntary petitions for reorganization under Chapter 11 of the United States Bankruptcy Code thereby commencing those certain chapter 11 cases (the “Chapter 11 Cases”). As part of the Chapter 11 reorganization process, it is possible that claims or causes of action arising from prior transactions with GWG Holdings could be advanced against BCG as part of the Chapter 11 Cases or in separate litigation. Such claims and causes of action could include (i) a request to avoid some or all of such transactions, including the transaction whereby GWG Holdings released its right to appoint a majority of the members of Ben Management’s board of directors, (ii) challenges to the reasonableness of the value received by the Debtors in such transactions, and (iii) efforts to recover the value of any transfers to BCG. A mediator has been appointed to oversee the mediation of certain matters between BCG, GWG Holdings and its debtor-affiliates, and certain other constituencies. The mediation commenced on January 30, 2023 and is still ongoing. We estimate that the maximum potential negative impact of any Retained Causes of Action to be between approximately $155 million and $382 million.

Further, the Official Committee of Bondholders (the “OBC”) in the Chapter 11 Cases has also filed a motion seeking standing to prosecute causes of actions on behalf of the Debtors’ estate. The OBC’s motion was deemed to be withdrawn upon the effective date of the Debtors’ bankruptcy plan, which occurred on August 1, 2023. The OBC’s motion set forth causes of action related to certain past transactions between the Debtors and Ben, including its directors. The OBC’s motion stated the proposed claims could add a maximum exposure of up to $500 million worth of additional value to the Debtors’ estate. Ben and its CEO filed motions to object to the OBC’s motion that refutes the allegations. The Debtors have indicated they oppose the OBC’s motion for standing and intend to address such alleged claims, if any, as part of a global plan of reorganization, including a possible mediated resolution. Ben intends to vigorously defend itself against any claims, should they be brought by the Litigation Trust.

Scura Action

On March 30, 2023, David Scura and Clifford Day, on behalf of themselves and all others similarly situated, filed a class action lawsuit in the United States District Court for Northern District of Texas against Ben, certain members of its board of directors (Brad K. Heppner, Peter T. Cangany, Richard W. Fisher, Thomas O. Hicks, Dennis P. Lockhart, and Bruce W. Schnitzer), certain past members of the board of directors of GWG Holdings (Jon R. Sabes and Steven F. Sabes), FOXO Technologies Inc. (“FOXO”), and Emerson Equity LLC (“Emerson”) (the “Scura Action”). The suit alleges that the defendants defrauded GWG Holdings’ investors, and it asserts claims on behalf of a putative class consisting of all persons and entities who purchased or otherwise acquired GWG Holdings’ L Bonds or preferred stock of GWG Holdings between December 23, 2017, and April 20, 2022. The suit alleges that (i) BCG, the individual defendants, and FOXO violated Sections 10(b) of the Exchange Act and SEC Rule 10b-5 promulgated thereunder, (ii) that the individual defendants violated Section 20(a) of the Exchange Act, and (iii) that Emerson violated Section 15(c)(1)(A) of the Exchange Act. The complaint does not allege the total amount of damages sought by the plaintiffs.

Bayati Action

On May 3, 2023, Thomas Horton and Frank Moore, in their capacities as the Lead Plaintiffs in the Bayati Action (the “Lead Plaintiffs”), filed a motion to lift the automatic stay in the Chapter 11 Cases in order to file a motion in the Northern District of Texas seeking to consolidate the Bayati and Scura Actions under the Private Securities Litigation Reform Act. On June 8, 2023, the plaintiffs in the Scura Action filed a voluntary notice of dismissal without prejudice.

On August 16, 2023, Thomas Horton and Frank Moore, in their capacities as the Lead Plaintiffs in the Bayati Action, filed a notice regarding the confirmation of the Debtors’ Chapter 11 plan in the GWG bankruptcy, a motion seeking to lift the bankruptcy stay and a motion to consolidate the Bayati and Horton Actions. On September 12, 2023, the court entered an order consolidating the Bayati and Horton Actions. The court ordered that the consolidated action shall bear the caption “In re GWG Holdings, Inc. Securities Litigation.” The court lifted the bankruptcy stay and ordered the Lead Plaintiffs to file a new consolidated complaint within 20 days.

On October 2, 2023, the Lead Plaintiffs filed a Consolidated Class Action Complaint against the Company, Brad K. Heppner, Peter T. Cangany, Jr., Thomas O. Hicks, Dennis P. Lockhart, Bruce W. Schnitzer, Murray T. Holland, Timothy L. Evans, David H. de Weese, Roy W. Bailey, David F. Chavenson, and Whitley Penn LLP, alleging Securities Act violations arising out of the Offering. The complaint alleges that the individual defendants violated Sections 11, 12(a)(2), and 15 of the Securities Act, and further alleges that the Company violated Section 15 of the Securities Act. The Company, Brad K. Heppner, Peter T. Cangany, Jr., Thomas O. Hicks, Dennis P. Lockhart, and Bruce W. Schnitzer (the “Ben Individual Defendants”) filed a motion to dismiss the complaint on November 7, 2023. On January 4, 2024, defendants Murray Holland, Tim Evans, Roy Bailey, Whitley Penn, David Chavenson and David H. de Weese filed motions to dismiss. The Lead Plaintiffs’ responded to the various motions to dismiss on February 20, 2024, and the defendants (other than Whitley Penn) filed replies in support of the motions to dismiss on March 21, 2024. The Company and the Ben Individual Defendants intend to vigorously defend themselves in the litigation.

On October 27, 2023, David Scura filed a petition in Dallas County District Court against Brad K. Heppner, Jon R. Sabes, Steven F. Sabes, Peter T. Cangany, Jr., Thomas O. Hicks, Dennis P. Lockhart, Bruce W. Schnitzer, the Company and FOXO, alleging violation of the Texas Securities Act, common law fraud, unjust enrichment, and civil conspiracy to defraud and seeking compensatory damages, costs and expenses. The same day, Clifford Day and Carla Monahan filed a petition in Dallas County District Court against the same defendants, alleging the same claims. The parties agreed to move the defendants’ deadline to respond to the petition to February 19, 2024. On April 10, 2024, the plaintiffs and Ben parties entered into a twelve-month tolling agreement, and the plaintiffs filed motions to nonsuit their claims that the courts granted on April 12, 2024 and April 16, 2024, respectively. The Company and the Ben Individual Defendants intend to vigorously defend themselves in the litigation.

This litigation can subject us and certain of our directors to substantial costs and divert resources and the attention of management from our business. If these claims are successful, our business could be seriously harmed. Even if the claims do not result in protracted litigation or are resolved in our favor and the favor of our directors, the time and resources needed to resolve such claims could divert our management’s resources and adversely affect our business.

GWG Litigation Trust Adversary Proceedings

On April 19, 2024, the Litigation Trustee filed a complaint (the “LT Complaint”) as an Adversary Proceeding in the bankruptcy of GWG Holdings, Inc. currently pending in the United States Bankruptcy Court in the Southern District of Texas against Ben Management, the Company, BCH, Beneficient Capital Company II, L.L.C., f/k/a Beneficient Capital Company, L.L.C. (together with New BCC, defined herein, “BCC”), Beneficient Capital Company, L.L.C. (“New BCC”), Beneficient Holdings, Inc. (“BHI”), various current or former officers and directors of the Company, HCLP and certain of its affiliates, former officers and directors of the Company’s former parent company, trustees of certain trusts that are directly or indirectly controlled by, or operate for the benefit of, Ben’s CEO and founder or his family, entities directly or indirectly held by, or that are under common control with, such trusts, and in which Ben’s CEO and his family members are among classes of economic beneficiaries, whether or not Ben’s CEO is entitled to economic distributions from such trusts, and others. The LT Complaint alleges causes of action that include (i) actual or constructive fraudulent transfer for certain transactions between GWG and the Company or its affiliates, (ii) breaches of fiduciary duty, aiding and abetting breaches of fiduciary duty, and civil conspiracy, (iii) unjust enrichment, (iv) avoidance of any purported releases of the defendants, and (v) disallowance of the claims filed by certain defendants, including the Company, in the GWG bankruptcy case.

More specifically, such challenged transactions relate to (i) GWG’s purchase of $10 million of equity in the Company on June 12, 2019, (ii) GWG’s commitment on May 31, 2019 to loan trusts affiliated with the Company $65 million that GWG funded in two tranches ($50 million on June 3, 2019 and $15 million on November 22, 2019) and the repayment of such loan, (iii) GWG’s capital contribution to the Company of $79 million on December 31, 2019, (iv) approximately $145 million in capital contributions by GWG to the Company pursuant to a Preferred Series C Unit Purchase Agreement, and (v) the Company’s ultimate decoupling from GWG. Additionally, the LT Complaint seeks to void the debts owed by the Company to HCLP. The LT Complaint seeks to, among other things, void certain of the transactions and/or recover damages, attorney’s fees and expenses, pre-judgment and post-judgment interest. The LT Complaint does not purport to estimate the damages sought. The Company, its affiliates and its officers and directors intend to vigorously defend themselves against these claims.

Wells Notice

On June 29, 2023, the Company received a “Wells Notice” from the Staff of the SEC’s Division of Enforcement, stating that the Staff has made a preliminary determination to recommend that the SEC file a civil enforcement action against the Company alleging violations of certain provisions of the Securities Act and the Exchange Act. The staff’s allegations appeared to relate to, among other things, the Company’s association with an amendment to the debt coverage ratio calculation approved by certain holders of GWG Holdings issued debt in 2019 under an indenture and related disclosures by GWG, the December 31, 2019 valuation of the Company’s goodwill by a third-party valuation agent, potential contractual

rights concerning an amendment to the Company’s governing documents, and other items in the historical disclosures of GWG.

On July 1, 2024, the Company received a termination letter from the SEC advising the Company that the SEC’s investigation related to the Company had concluded and that the Staff does not intend to recommend any enforcement actions by the SEC. The termination letter was provided to the Company under the guidelines of the final paragraph of Securities Act Release No. 5310 which states, among other things, that “[such notice] must in no way be construed as indicating that the party has been exonerated or that no action may ultimately result from the staff’s investigation of that particular matter.” While there have been no further actions to date, there can be no assurance that there will not be any further action on this or other matters by the SEC.

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Supplemental Cash Flow Information

6 Months Ended

Sep. 30, 2024

Offsetting [Abstract]

Supplemental Cash Flow Information

Supplemental Cash Flow Information

Cash paid for taxes for the six months ended September 30, 2024 and 2023 was de minimis. Cash paid for interest for the six months ended September 30, 2024 and 2023, was $1.5 million and nil, respectively.

Supplemental disclosure of noncash investing and financing activities include:

Six Months Ended September 30, 2024:

–$125.5 million reclass of BCH Preferred A.0 from temporary equity to permanent equity.

–$8.8 million accrual for BCH Preferred A.0 guaranteed payment.

–$1.2 million settlement of liability for issuance of Class A common stock.

–$0.3 million of distributions payable to the Charitable Beneficiaries.

Six Months Ended September 30, 2023:

–$793.4 million conversion of BCG Class A common units for Class A common stock.

–$791.9 million conversion of BCG Preferred B.2 for Class A common stock.

–$205.8 million conversion of BCH Preferred C for Class A common stock.

–$193.9 million exchange of BCH Preferred A.1 for Class A common stock and Class B common stock in BCG Recapitalization.

–$37.6 million issuance of Issuance of Series B-1 preferred stock in connection with recent financings.

–$8.3 million accrual for BCH Preferred A.0 guaranteed payment.

–$6.9 million deemed dividend from BCH Preferred A.1 to BCG Preferred B.2 for accrual of preferred return.

–$5.3 million issuance of Class A common for transactions closing post de-SPAC.

–$4.0 million settlement of liability for issuance of Class A common stock.

–$3.9 million conversion of BCH Class S Ordinary to Class A common stock.

–$1.1 million of noncash issuance of noncontrolling interest.

–$0.6 million of distributions payable to the Charitable Beneficiaries.

The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the consolidated statements of financial condition and that are shown in the consolidated statements of cash flows:

	September 30, 2024		March 31, 2024
Cash and cash equivalents	$	4,482	$	7,913
Restricted cash	314		64
Total cash, cash equivalents and restricted cash	$	4,796	$	7,977

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Subsequent Events

6 Months Ended

Sep. 30, 2024

Subsequent Events [Abstract]

Subsequent Events

Subsequent Events

The Company has evaluated subsequent events through the date the financial statements were available to be issued, and determined that there have been no events, other than those disclosed below, that have occurred that would require adjustments to our disclosures in the consolidated financial statements.

Amendment to Articles of Incorporation

On October 2, 2024, the Company filed a Certificate of Amendment to the Company’s Articles of Incorporation with the Secretary of State of the State of Nevada to increase the number of authorized shares of Class A common stock from 18,750,000 to 5,000,000,000. The increase in the number of authorized shares was approved by the Company’s stockholders on October 2, 2024.

Potential Future Goodwill Impairment

Through the date of this report, the Company has not experienced any further significant sustained decline in the price of its common stock from the values at September 30, 2024 of $1.23. Significant sustained declines in our common stock and related market capitalization have in the past been triggering events requiring interim goodwill impairment testing. In the future, should we experience a significant sustained decrease in the Company’s common stock from the September 30, 2024 values, this may be a potential indicator that a portion of our remaining goodwill is impaired and may require a quantitative impairment assessment of the Company’s assets, including goodwill and intangible assets, which may result in an additional impairment charge in a future period. While management cannot predict if or when additional future goodwill impairments may occur, additional goodwill impairments could have material adverse effects on the Company’s financial condition, operating income, net assets, and/or the Company’s cost of, or access to, capital.

Convertible Debentures Second Closing

On November 13, 2024, the Second Closing under the securities purchase agreement with Yorkville occurred whereby the Company issued an additional $2.0 million in aggregate principal amount of Convertible Debentures for proceeds of approximately $1.8 million and issued an additional Yorkville Warrant to purchase up to 662,691 shares of Class A common stock. The terms for the Convertible Debentures and Yorkville Warrants issued as part of the Second Closing are consistent with those described in Note 7 under the Convertible Debentures heading.

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Insider Trading Arrangements	3 Months Ended
	Sep. 30, 2024
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false

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Summary of Significant Accounting Policies (Policies)

6 Months Ended

Sep. 30, 2024

Accounting Policies [Abstract]

Basis of Presentation and Principles of Consolidation

Basis of Presentation and Principles of Consolidation

The consolidated financial statements of Ben are prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”) on a going concern basis, and include the accounts of Ben, its wholly-owned and majority-owned subsidiaries and, certain variable interest entities (“VIEs”), in which the Company is the primary beneficiary.

Basis of Presentation and Principles of Consolidation

An enterprise is determined to be the primary beneficiary of a VIE if it holds a controlling financial interest consistent with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 810, Consolidation (“ASC 810”), as amended.

The Customer ExAlt Trusts are considered VIEs for which Ben has a variable interest and is considered the primary beneficiary. Thus, Ben is required to consolidate all of the Customer ExAlt Trusts. The entities in which the Customer ExAlt Trusts hold an ownership interest are investment companies (i.e., funds) under ASC 946, Financial Services — Investment Companies (“ASC 946”). Thus, the investments in non-investment companies made by these funds are accounted for in accordance with ASC 946 and are not subject to consolidation or the disclosure requirements of ASC 810. Moreover, further consolidation provisions of ASC 946 are not applicable to Ben since these investment companies do not have an investment in an operating entity that provides services to the investment company or to Ben.

All intercompany accounts and transactions have been eliminated in consolidation, and the portion of income allocated to owners other than the Company is included in “net income (loss) attributable to noncontrolling interests” in the consolidated statements of comprehensive income (loss). With the consolidation of the Customer ExAlt Trusts, interest and fee income and any related receivable charged by Ben Liquidity and Ben Custody to the Customer ExAlt Trusts are eliminated in the presentation of our consolidated financial statements. While these amounts are eliminated solely for financial reporting purposes, such amounts are earned by Ben Liquidity and/or Ben Custody from the Customer ExAlt Trusts and directly impact the income (loss) allocable to Ben’s and BCH’s equity holders as further discussed in Note 3.

The accompanying unaudited interim consolidated financial statements of the Company do not contain the detail or footnote disclosure concerning accounting policies and other matters that would be included in full fiscal year consolidated financial statements; therefore, they should be read in conjunction with the Company’s audited consolidated financial statements and notes thereto included in the Company’s Annual Report. In the opinion of management, all material adjustments, consisting of normal and recurring adjustments, have been made that were considered necessary to present fairly the financial condition, results of operations and cash flows at the interim date and for the interim periods presented. Operating results for the interim periods disclosed herein are not necessarily indicative of results that may be expected for a full year.

Reverse Stock Split

Reverse Stock Split

Following stockholder approval on April 18, 2024, the Company effected a reverse stock split of our Common Stock at a ratio of 1-for-80 and a simultaneous proportionate reduction in the authorized shares of each class of Common Stock as required by Nevada Revised Statues Section 78.207. The Reverse Stock Split was effective as of April 18, 2024. Proportional adjustments were made to the number of shares of common stock issuable upon exercise or conversion of the Company’s equity award, warrants, and other equity instruments convertible into common stock, as well as the applicable exercise price. All share and per share amounts of our Class A and Class B common stock presented have been retroactively adjusted to reflect the Reverse Stock Split, including reclassifying an amount equal to the reduction in par value of common stock to additional paid in capital.

Initial Recapitalization and Common Unit Conversion

On June 6, 2023, immediately prior to the Conversion, BCG was recapitalized, as further described in Note 4. For the periods prior to the closing, 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 adjusted on the basis of Common Stock reflecting the common unit conversion ratio, as described above.

Use of Estimates

Use of Estimates

The preparation of the Company’s consolidated financial statements in conformity with U.S. GAAP requires management to make certain estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. These estimates and assumptions are based on information available as of the date of the consolidated financial statements and could differ from actual results. Material estimates that are particularly susceptible to change in the near term relate to the fair value determination of investments in alternative assets held by the Customer ExAlt Trusts, determination of the allowance for credit losses as an input to the allocation of income (loss) to Ben’s or BCH’s equity holders, the allocation of income (loss) to Ben’s and BCH’s equity holders, evaluation of potential loss contingencies principally related to ongoing legal matters, and evaluation of potential impairment of goodwill and other intangibles.

Significant accounting policies are detailed in Note 2 to the consolidated financial statements included in the Company’s Annual Report. Other than described below, there are no new or revised significant accounting policies as of September 30, 2024.

Warrant Liability

Warrant Liability

The Company determines the accounting classification of warrants it issues as either liability or equity classified by first assessing whether the warrants meet liability classification in accordance with ASC 480, Distinguishing Liabilities from Equity ("ASC 480"), then in accordance with ASC 815 ("ASC 815"), Derivatives and Hedging. Under ASC 480, warrants are considered liability classified if the warrants are mandatorily redeemable, obligate the Company to settle the warrants or the underlying shares by paying cash or other assets, or warrants that must or may require settlement by issuing variable number of shares. If warrants do not meet liability classification under ASC 480, the Company assesses the requirements under ASC 815, which states that contracts that require or may require the issuer to settle the contract for cash are liabilities recorded at fair value, irrespective of the likelihood of the transaction occurring that triggers the net cash settlement feature. If the warrants do not require liability classification under ASC 815, and in order to conclude equity classification, the Company also assesses whether the warrants are indexed to its Common Stock and whether the warrants are classified as equity under ASC 815 or other applicable GAAP. After all relevant assessments, the Company concludes whether the warrants are classified as liability or equity. Liability classified warrants require fair value accounting at issuance and subsequent to initial issuance with all changes in fair value after the issuance date recorded in the statements of operations. Equity classified warrants only require fair value accounting at issuance with no changes recognized subsequent to the issuance date.

The Company accounts for its outstanding warrants, which are principally comprised of those assumed in the Transaction (as described in Note 4) and the warrants issued to Yorkville (as described in Note 7), in accordance with the guidance contained in ASC 815, Derivatives and Hedging, whereby under those accounting requirements, our outstanding warrants do not meet the criteria for equity treatment and must be recorded as a liability. Accordingly, the Company classifies our warrant instruments as a liability recorded at fair value and adjusts the instruments to fair value at each reporting period using quoted market prices, where available, or other appropriate valuation techniques, such as an option pricing model. The warrant liability is re-measured at each balance sheet date until the warrants are exercised or expire, and any change in fair value will be recognized in the Company’s consolidated statements of comprehensive income (loss). Such warrant classification is also subject to re-evaluation at each reporting period.

Convertible Debt

Convertible Debt

The Company has elected the fair value option to account for the convertible debentures with Yorkville (as described in Note 7). The Company recorded the convertible debentures at fair value upon issuance. The Company records changes in fair value in the consolidated statements of comprehensive income (loss), with the exception of changes in fair value due to instrument-specific credit risk which, if present, will be recorded as a component of other comprehensive income (loss). Interest expense related to the convertible debentures is included in the changes in fair value. As a result of applying the fair value option, direct costs and fees related to the convertible debentures were expensed as incurred.

Income Taxes

Income Taxes

On June 6, 2023, The Beneficient Company Group, L.P. changed both its regulatory and tax status from a Delaware Limited Partnership to a Nevada Corporation and changed its name from The Beneficient Company Group, L.P. to Beneficient. Beneficient made a tax election to be treated as a corporation for US tax purposes effective as of this date.

As a result of this tax election, Beneficient records current tax liabilities or assets through charges or credits to the current tax provision for the estimated taxes payable or refundable for the current year. Deferred tax assets and liabilities are recorded for future tax consequences attributable to differences between the financial statement carrying amounts of assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. A deferred tax valuation allowance is established if it is more likely than not that all or a portion of the deferred tax assets will not be realized. A tax position that fails to meet a more-likely-than-not recognition threshold will result in either reduction of current or deferred tax assets, and/or recording of current or deferred tax liabilities. Interest and penalties related to income taxes are recorded in the other expense line item of the consolidated statements of comprehensive income (loss).

Prior to the restructuring that resulted in Beneficient becoming a corporation, Beneficient was taxed as a Delaware Limited Partnership. In the event the subsequent entity, Beneficient a corporation, is audited by the taxing authority and assessed additional amounts due to the underpayment of tax in previous tax years, management intends to make the push-out election allowed by the U.S. Treasury Department. That election allows Beneficient to notify its partners of their share of imputed underpayment amounts for inclusion in their current tax returns.

Accounting Standards Recently Adopted and Not Yet Adopted

Accounting Standards Not Yet Adopted

ASU 2023-07, Segment Reporting, (Topic 280) was issued in November 2023 and expands public entities’ segment disclosures by requiring disclosure of significant segment expenses that are regularly provided to the chief operating decision maker (“CODM”) and included within each reported measure of segment profit or loss, an amount and description of its composition for other segment items, and interim disclosures of a reportable segment’s profit or loss and assets. All disclosure requirements under ASU 2023-07 are also required for public entities with a single reportable segment. Additionally, the amendments require disclosure of the title and position of the CODM and an explanation of how the CODM uses the reported measure(s) of segment profit or loss in assessing segment performance and deciding how to allocate resources. ASU 2023-07 is effective for fiscal years beginning after December 15, 2023 and interim periods within fiscal years beginning after December 15, 2024, which will be our fiscal year beginning April 1, 2024 and interim periods beginning April 1, 2025. Early adoption is permitted. ASU 2023-07 will have no impact on the Company’s financial condition or results of operations. The Company is evaluating the impact to the related segment reporting disclosures.

ASU 2023-09, Income Taxes, (Topic 740) was issued in December 2023, which expands income tax disclosure requirements to include additional information related to the rate reconciliation of our effective tax rates to statutory rates as well as additional disaggregation of taxes paid. The amendments in ASU 2023-09 also remove disclosures related to certain unrecognized tax benefits and deferred taxes. ASU 2023-09 is effective for fiscal years beginning after December 15, 2024, or our fiscal year beginning April 1, 2025. The amendments may be applied prospectively or retrospectively, and early adoption is permitted. We are currently assessing the impact of the requirements on our consolidated financial statements and disclosures.

ASU 2020-04, Reference Rate Reform, (Topic 848) was issued in March 2020. The amendments in Topic 848 provide optional expedients and exceptions for applying U.S. GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. Topic 848 can be applied by all entities as of the beginning of the interim period that includes March 12, 2020, or any date thereafter, and entities may elect to apply the amendments prospectively through December 31, 2022. On December 31, 2022, ASU 2022-06, Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848 was issued, which extends the period of time entities can utilize the reference rate reform relief guidance under ASU 2020-04 from December 31, 2022 to December 31, 2024. We have not utilized the optional expedients and exceptions provided by this standard, and are currently evaluating the impact of this standard on our consolidated financial statements and disclosures.

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Understanding our Financial Statements and the Impact to the Common Shareholder (Tables)

6 Months Ended

Sep. 30, 2024

Related Party Transactions [Abstract]

Schedule of Segment Reporting Information, by Segment

The following table presents a reconciliation of operating income (loss) of our reportable segments, excluding the Customer ExAlt Trusts, to net income (loss) attributable to Beneficient’s common shareholders. This reconciliation serves to provide users of our financial statements an understanding and visual aide of the reportable segments that impact net income (loss) attributable to the common shareholder and reiterates that the consolidation of the Customer ExAlt Trusts has no impact on the net income (loss) attributable to Beneficient’s common shareholders.

(in thousands)	Three Months Ended September 30,				Six Months Ended September 30,
	2024		2023		2024		2023
Operating income (loss)
Ben Liquidity	$	2,905	$	(272,091)	$	2,391	$	(1,175,119)
Ben Custody	4,329		(80,847)		5,616		(270,844)
Corporate & Other	(16,426)		(25,234)		27,665		(74,313)
Plus: Gain on liability resolution	23,462		—		23,462		—
Less: Income tax expense (allocable to Ben and BCH equity holders)	—		—		(28)		—
Plus: Net loss attributable to noncontrolling interests - Ben	3,067		10,604		10,254		41,290
Less: Noncontrolling interest guaranteed payment	(4,423)		(4,167)		(8,779)		(8,272)
Net income (loss) attributable to common shareholders	$	12,914	$	(371,735)	$	60,581	$	(1,487,258)

The following tables include the results of each of the Company’s reportable segments reconciled to the consolidated financial statements (in thousands):

	Three Months Ended September 30, 2024
	Ben Liquidity		Ben Custody		Customer ExAlt Trusts		Corporate & Other		Consolidating Eliminations		Total
External revenues
Investment income, net	$	—	$	—	$	8,541	$	—	$	—	$	8,541
Gain (loss) on financial instruments, net	—		—		571		(750)		—		(179)
Interest and dividend income	—		—		—		12		—		12
Trust services and administration revenues	—		187		—		—		—		187
Intersegment revenues
Interest income	11,978		—		—		—		(11,978)		—
Trust services and administration revenues	—		5,199		—		—		(5,199)		—
Total revenues	11,978		5,386		9,112		(738)		(17,177)		8,561
External expenses
Employee compensation and benefits	361		542		—		6,232		—		7,135
Interest expense	3,163		—		—		1,157		—		4,320
Professional services	395		30		545		6,287		—		7,257
Provision for credit losses	—		—		476		—		—		476
Loss on impairment of goodwill	—		298		—		—		—		298
Other expenses	402		187		189		2,012		—		2,790
Intersegment expenses
Interest expense	—		—		36,049		—		(36,049)		—
Provision for credit losses	4,752		—		—		—		(4,752)		—
Other expenses	—		—		3,402		—		(3,402)		—
Total expenses	9,073		1,057		40,661		15,688		(44,203)		22,276
Operating income (loss)	$	2,905	$	4,329	$	(31,549)	$	(16,426)	$	27,026	$	(13,715)

	Three Months Ended September 30, 2023
	Ben Liquidity		Ben Custody		Customer ExAlt Trusts		Corporate & Other		Consolidating Eliminations		Total
External revenues
Investment loss, net	$	—	$	—	$	(13)	$	—	$	—	$	(13)
Loss on financial instruments, net	—		—		(41,875)		(900)		—		(42,775)
Interest and dividend income	—		—		2		112		—		114
Trust services and administration revenues	—		8		—		(95)		—		(87)
Intersegment revenues
Interest income	13,022		—		—		—		(13,022)		—
Trust services and administration revenues	—		6,482		—		—		(6,482)		—
Total revenues	13,022		6,490		(41,886)		(883)		(19,504)		(42,761)
External expenses
Employee compensation and benefits	1,482		545		—		13,371		—		15,398
Interest expense	2,120		—		1,794		1,200		—		5,114
Professional services	264		89		884		5,420		—		6,657
Loss on impairment of goodwill	220,212		86,472		—		—		—		306,684
Other expenses	533		231		26		4,360		—		5,150
Intersegment expenses
Interest expense	—		—		29,835		—		(29,835)		—
Provision for loan losses	60,502		—		—		—		(60,502)		—
Other expenses	—		—		3,850		—		(3,850)		—
Total expenses	285,113		87,337		36,389		24,351		(94,187)		339,003
Operating income (loss)	$	(272,091)	$	(80,847)	$	(78,275)	$	(25,234)	$	74,683	$	(381,764)

	Six Months Ended September 30, 2024
	Ben Liquidity		Ben Custody		Customer ExAlt Trusts		Corporate & Other		Consolidating Eliminations		Total
External revenues
Investment income, net	$	—	$	—	$	19,569	$	—	$	—	$	19,569
Loss on financial instruments, net	—		—		(604)		(758)		—		(1,362)
Interest and dividend income	—		—		—		24		—		24
Trust services and administration revenues	—		376		—		—		—		376
Intersegment revenues
Interest income	22,827		—		—		—		(22,827)		—
Trust services and administration revenues	—		10,392		—		—		(10,392)		—
Total revenues	22,827		10,768		18,965		(734)		(33,219)		18,607
External expenses
Employee compensation and benefits	791		898		—		9,296		—		10,985
Interest expense	6,244		—		—		2,364		—		8,608
Professional services	869		426		1,167		10,339		—		12,801
Provision for credit losses	—		—		998		2		—		1,000
Loss on impairment of goodwill	—		3,427		—		265		—		3,692
Release of loss contingency related to arbitration award	—		—		—		(54,973)		—		(54,973)
Other expenses	853		401		309		4,308		—		5,871
Intersegment expenses
Interest expense	—		—		70,848		—		(70,848)		—
Provision for credit losses	11,679		—		—		—		(11,679)		—
Other expenses	—		—		6,821		—		(6,821)		—
Total expenses	20,436		5,152		80,143		(28,399)		(89,348)		(12,016)
Operating income (loss)	$	2,391	$	5,616	$	(61,178)	$	27,665	$	56,129	$	30,623

	Six Months Ended September 30, 2023
	Ben Liquidity		Ben Custody		Customer ExAlt Trusts		Corporate & Other		Consolidating Eliminations		Total
External revenues
Investment income, net	$	—	$	—	$	487	$	—	$	—	$	487
Loss on financial instruments, net	—		—		(43,679)		(2,557)		—		(46,236)
Interest and dividend income	—		—		10		220		—		230
Trust services and administration revenues	—		15		—		—		—		15
Intersegment revenues
Interest income	25,028		—		—		—		(25,028)		—
Trust services and administration revenues	—		13,050		—		—		(13,050)		—
Total revenues	25,028		13,065		(43,182)		(2,337)		(38,078)		(45,504)
External expenses
Employee compensation and benefits	3,975		1,105		—		46,141		—		51,221
Interest expense	2,878		—		3,668		2,352		—		8,898
Professional services	897		589		2,145		13,399		—		17,030
Loss on impairment of goodwill	1,121,212		281,777		—		—		—		1,402,989
Other expenses	1,187		438		383		10,084		—		12,092
Intersegment expenses
Interest expense	—		—		59,615		—		(59,615)		—
Provision for loan losses	69,998		—		—		—		(69,998)		—
Other expenses	—		—		7,694		—		(7,694)		—
Total expenses	1,200,147		283,909		73,505		71,976		(137,307)		1,492,230
Operating income (loss)	$	(1,175,119)	$	(270,844)	$	(116,687)	$	(74,313)	$	99,229	$	(1,537,734)

	As of September 30, 2024
	Ben Liquidity		Ben Custody		Customer ExAlt Trusts		Corporate & Other		Consolidating Eliminations		Total
Loans to Customer ExAlt Trusts, net	$	260,686	$	—	$	—	$	—	$	(260,686)	$	—
Investments, at fair value	—		—		334,987		—		—		334,987
Other assets	1,609		21,909		18,025		14,392		(35,148)		20,787
Goodwill and intangible assets, net	—		7,469		—		5,545		—		13,014
Total Assets	$	262,295	$	29,378	$	353,012	$	19,937	$	(295,834)	$	368,788
	As of March 31, 2024
	Ben Liquidity		Ben Custody		Customer ExAlt Trusts		Corporate & Other		Consolidating Eliminations		Total
Loans to Customer ExAlt Trusts, net	$	256,184	$	—	$	—	$	—	$	(256,184)	$	—
Investments, at fair value	—		—		329,113		6		—		329,119
Other assets	5,814		20,398		19,467		12,510		(35,513)		22,676
Goodwill and intangible assets, net	—		10,896		—		5,810		—		16,706
Total Assets	$	261,998	$	31,294	$	348,580	$	18,326	$	(291,697)	$	368,501

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De-SPAC Merger Transaction (Tables)

6 Months Ended

Sep. 30, 2024

Business Combination, Asset Acquisition, and Joint Venture Formation [Abstract]

Additional Equity Securities Information

The following table provides additional information on the securities contributed and exchanged as part of the BCG Recapitalization by each of BHI, Bruce W. Schnitzer and Hicks Holdings Operating, LLC (dollars and units in thousands):

Name	Converted Capital Account Balance of BCH Preferred A.1		BCH Class S Ordinary Units Received	BCG Class B Units Received
BHI	$	177,195	178	178
Bruce W. Schnitzer	988		1	1
Hicks Holdings Operating, LLC	13,222		14	14
Total	$	191,405	193	193

The following table provides additional information on the securities contributed and exchanged as part of the BCG Recapitalization by each of Bruce W. Schnitzer and Richard W. Fisher (dollars and units in thousands):

Name	Converted Capital Account Balance of BCH Preferred A.1		BCH Class S Ordinary Units Received	BCG Class A Units Received
Bruce W. Schnitzer	$	734	9	9
Richard W. Fisher	1,722		10	10
Total	$	2,456	19	19

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Investments, at Fair Value (Tables)

6 Months Ended

Sep. 30, 2024

Investments [Abstract]

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis

The composition of investments recorded at fair value by holder is included in the table below (in thousands):

	September 30, 2024				March 31, 2024
	Ben		Customer ExAlt Trusts		Ben		Customer ExAlt Trusts
Alternative assets	$	—	$	301,388	$	—	$	293,916
Public equity securities and option	—		4,885		—		4,897
Debt securities available-for-sale	—		1,969		—		2,962
Other equity securities and interests	—		26,745		6		27,338
Total investments, at fair value	$	—	$	334,987	$	6	$	329,113

The Company’s financial assets and liabilities carried at fair value on a recurring basis, including the level in the fair value hierarchy, on September 30, 2024 and March 31, 2024 are presented below.

	As of September 30, 2024
(Dollars in thousands)	Level 1		Level 2		Level 3		Total
Assets:
Public equity securities	$	4,885	$	—	$	—	$	4,885
Other equity interests	—		20		—		20
Debt securities available-for-sale, other	—		—		1,969		1,969
Liabilities:
Convertible debt	—		—		1,936		1,936
Warrants liability	213		571		—		784
	As of March 31, 2024
(Dollars in thousands)	Level 1		Level 2		Level 3		Total
Assets:
Public equity securities	$	4,897	$	—	$	—	$	4,897
Other equity interests	—		558		—		558
Debt securities available-for-sale, other	—		998		1,964		2,962
Liabilities:
Warrant liability	178		—		—		178
Prepaid forward liability	14		—		—		14

Alternative Investments

Our portfolio of alternative asset investments, held by certain of the Customer ExAlt Trusts by asset class of each fund as of September 30, 2024 and March 31, 2024, is summarized below (in thousands):

	Alternative Investments Portfolio Summary
	September 30, 2024				March 31, 2024
Asset Class	Carrying Value		Unfunded Commitments		Carrying Value		Unfunded Commitments
Private Equity	$	138,089	$	37,989	$	116,462	$	38,401
Venture Capital	128,033		2,344		139,495		2,548
Natural Resources	16,815		3,318		17,553		3,340
Private Real Estate	8,580		2,884		8,760		2,907
Hedge Funds	3,539		245		6,095		245
Other(1)	6,332		383		5,551		382
Total	$	301,388	$	47,163	$	293,916	$	47,823

(1) “Other” includes earnouts, escrow, net other assets, and private debt strategies.

Debt Securities, Available-for-Sale

The amortized cost, estimated fair value, and unrealized gains and losses on investments in debt securities classified as available-for-sale as of September 30, 2024 and March 31, 2024 are summarized as follows:

	September 30, 2024
(Dollars in thousands)	Amortized Cost Basis		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Other debt securities	$	2,685	$	344	$	(1,060)	$	1,969
Total available-for-sale debt securities	$	2,685	$	344	$	(1,060)	$	1,969
	March 31, 2024
(Dollars in thousands)	Amortized Cost Basis		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Other debt securities	$	2,685	$	1,337	$	(1,060)	$	2,962
Total available-for-sale debt securities	$	2,685	$	1,337	$	(1,060)	$	2,962

The contractual maturities of available-for-sale debt securities as of September 30, 2024 and March 31, 2024 are as follows:

	September 30, 2024				March 31, 2024
(Dollars in thousands)	Amortized Cost Basis		Fair Value		Amortized Cost Basis		Fair Value
Due in one year or less	$	1,687	$	1,969	$	1,687	$	1,964
No fixed maturity	998		—		998		998
	$	2,685	$	1,969	$	2,685	$	2,962

Debt Securities, Available-for-Sale, Unrealized Loss Position, Fair Value

The table below indicates the length of time individual debt securities have been in a continuous loss position as of September 30, 2024 and March 31, 2024:

	September 30, 2024				March 31, 2024
(Dollars in thousands)	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
Other debt securities:
Less than twelve months	$	—	$	—	$	—	$	—
Twelve months or longer	1,969		1,060		1,964		1,060
Total available-for-sale debt securities with unrealized losses	$	1,969	$	1,060	$	1,964	$	1,060

Debt Securities, Available-for-Sale, Allowance for Credit Loss

The following table is a rollforward of credit-related losses recognized in earnings for the periods presented below:

(Dollars in thousands)	Three Months Ended September 30,				Six Months Ended September 30,
	2024		2023		2024		2023
Balance, beginning of period	$	31,812	$	31,290	$	31,290	$	31,290
Credit related losses not previously recognized	—		—		522		—
Increase in amounts previously recognized	476		—		476		—
Balance, end of period	$	32,288	$	31,290	$	32,288	$	31,290

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Fair Value Measurements (Tables)

6 Months Ended

Sep. 30, 2024

Fair Value Disclosures [Abstract]

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis

The composition of investments recorded at fair value by holder is included in the table below (in thousands):

	September 30, 2024				March 31, 2024
	Ben		Customer ExAlt Trusts		Ben		Customer ExAlt Trusts
Alternative assets	$	—	$	301,388	$	—	$	293,916
Public equity securities and option	—		4,885		—		4,897
Debt securities available-for-sale	—		1,969		—		2,962
Other equity securities and interests	—		26,745		6		27,338
Total investments, at fair value	$	—	$	334,987	$	6	$	329,113

The Company’s financial assets and liabilities carried at fair value on a recurring basis, including the level in the fair value hierarchy, on September 30, 2024 and March 31, 2024 are presented below.

	As of September 30, 2024
(Dollars in thousands)	Level 1		Level 2		Level 3		Total
Assets:
Public equity securities	$	4,885	$	—	$	—	$	4,885
Other equity interests	—		20		—		20
Debt securities available-for-sale, other	—		—		1,969		1,969
Liabilities:
Convertible debt	—		—		1,936		1,936
Warrants liability	213		571		—		784
	As of March 31, 2024
(Dollars in thousands)	Level 1		Level 2		Level 3		Total
Assets:
Public equity securities	$	4,897	$	—	$	—	$	4,897
Other equity interests	—		558		—		558
Debt securities available-for-sale, other	—		998		1,964		2,962
Liabilities:
Warrant liability	178		—		—		178
Prepaid forward liability	14		—		—		14

Schedule of Reconciliation of Gain (Loss) on Investments

A reconciliation of gain (loss) on financial instruments, net for each of the periods presented herein is included in the tables below (in thousands):

	Three Months Ended September 30,				Six Months Ended September 30,
	2024		2023		2024		2023
Public equity securities:
Related party equity securities	$	—	$	(136)	$	—	$	(3,702)
Other public equity securities	745		(516)		(12)		(736)
Put options	—		(695)		—		(3,023)
Loss on initial issuance of convertible debt and warrant issuance to Yorkville	(1,700)		—		(1,700)		—
Convertible debt	225		—		225		—
Warrants liability	710		214		708		1,699
Prepaid forward liability	14		19		14		(73)
Derivative liability	—		163		—		1,581
Other equity securities and interests
Related party, fair value using quoted market prices of similar assets in active market (1)	(173)		(41,824)		(538)		(41,824)
Other, without a readily determinable fair value	—		—		(59)		(158)
Gain (loss) on financial instruments, net	$	(179)	$	(42,775)	$	(1,362)	$	(46,236)

(1) Includes realized net gains of $13.7 million related to the Company’s previously classified available-for-sale debt securities upon reclassification from accumulated other comprehensive income during the three and six months ended September 30, 2023.

Fair Value Measurement Inputs and Valuation Techniques

The following table provides quantitative information about the significant unobservable inputs used in the fair value measure of the Level 3 other debt securities (dollars in thousands):

	Fair Value		Valuation Methodology	Unobservable Inputs	Range	Weighted Average
September 30, 2024	$	1,969	Market Approach	Enterprise value-to-revenue multiple	0.2x - 18.9x	1.80x
March 31, 2024	$	1,964	Market Approach	Enterprise value-to-revenue multiple	0.2x - 18.9x	1.77x

Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation

The following table reconciles the beginning and ending fair value of our Level 3 other debt securities:

(Dollars in thousands)	Three Months Ended September 30,				Six Months Ended September 30,
	2024		2023		2024		2023
Beginning balance	$	1,943	$	2,183	$	1,964	$	2,078
Gains (losses) recognized in accumulated other comprehensive income (loss)(1)	26		(104)		5		1
Ending balance	$	1,969	$	2,079	$	1,969	$	2,079

(1) Recorded in unrealized gain (loss) on available-for-sale debt securities.

Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation

The following is a summary of the change in the fair value of the convertible debentures for the three and six months ended September 30, 2024 and 2023:

(Dollars in thousands)	Three Months Ended September 30,				Six Months Ended September 30,
	2024		2023		2024		2023
Beginning fair value	$	—	$	—	$	—	$	—
Addition during the period	2,160		—		2,160		—
Change in fair value during the period	(224)		—		(224)		—
Ending fair value	$	1,936	$	—	$	1,936	$	—

The following table reconciles the beginning and ending fair value of our Level 3 derivative liability:

(Dollars in thousands)	Three Months Ended September 30,		Six Months Ended September 30,
	2023			2023
Beginning balance	$	2,095		$	3,513
Gains recognized in earnings(1)	(163)			(1,581)
Ending balance	$	1,932		$	1,932

(1) Recorded in (gain) loss on financial instruments, net.

Schedule of Goodwill

The change in goodwill at each reporting unit was as follows:

	March 31, 2024		Impairment		September 30, 2024
Ben Liquidity	$	—	$	—	$	—
Ben Custody	10,896		(3,427)		7,469
Ben Insurance	—		—		—
Ben Markets	2,710		(265)		2,445
Total Goodwill	$	13,606	$	(3,692)	$	9,914

Fair Value Disclosure of Asset and Liability Not Measured at Fair Value

The carrying amounts and estimated fair values of the Company’s financial instruments not recorded at fair value as of September 30, 2024 and March 31, 2024, were as noted in the table below:

	As of September 30, 2024
(Dollars in thousands)	Level in Fair Value Hierarchy	Carrying Amount		Estimated Fair Value
Financial assets:
Cash and cash equivalents	1	$	4,482	$	4,482
Restricted cash	1	314		314
Financial liabilities:
Debt due to related parties, net	2	122,117		138,919
Accounts payable and accrued expenses	1	112,494		112,494

	As of March 31, 2024
(Dollars in thousands)	Level in Fair Value Hierarchy	Carrying Amount		Estimated Fair Value
Financial assets:
Cash and cash equivalents	1	$	7,913	$	7,913
Restricted cash	1	64		64
Financial liabilities:
Debt due to related parties, net	2	120,505		129,327
Accounts payable and accrued expenses	1	157,157		157,157

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Debt Due to Related Parties (Tables)

6 Months Ended

Sep. 30, 2024

Debt Disclosure [Abstract]

Schedule of Debt

As of September 30, 2024 and March 31, 2024, the Company’s debt due to related parties consisted of the following:

(Dollars in thousands)	September 30, 2024		March 31, 2024
First Lien Credit Agreement	$	21,260	$	21,264
Second Lien Credit Agreement	72,983		72,996
Term Loan	26,475		25,000
Other borrowings	2,235		2,180
Unamortized debt discount, net	(836)		(935)
Total debt due to related parties	$	122,117	$	120,505

Schedule of Maturities of Long-Term Debt

Aggregate maturities of principal on the debt due to related parties for the next five fiscal years ending March 31 are as follows:

(Dollars in thousands)	Debt Due to Related Parties
2025	$	23,495
2026	—
2027	26,475
2028	72,983
2029	—

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Share-based Compensation (Tables)

6 Months Ended

Sep. 30, 2024

Share-Based Payment Arrangement [Abstract]

Share-Based Payment Arrangement, Cost by Plan

The following table presents the components of share-based compensation expense, included in employee compensation and benefits, recognized in the consolidated statements of comprehensive income (loss) for the three and six months ended September 30, 2024 and 2023:

	Three Months Ended September 30,				Six Months Ended September 30,
(dollars in thousands)	2024		2023		2024		2023
BMP equity units	$	144	$	569	$	257	$	1,244
Restricted stock units	3,179		7,318		4,011		16,041
Preferred equity	—		286		—		572
Other(1)	41		330		90		17,647
Total share-based compensation	$	3,364	$	8,503	$	4,358	$	35,504

(1) The year-to-date period September 30, 2023 includes $15.0 million of compensation recognized related to the BCG Recapitalization and $2.6 million recognized for equity based compensation issued to employees for Ben Liquidity transactions.

Share-Based Payment Arrangement, Nonvested Award, Cost

The following table presents the share-based compensation expense expected to be recognized over the next five fiscal years ending March 31 for awards outstanding as of September 30, 2024:

(dollars in thousands)	BMP		RSU		Commissions		Total
Six months ending 2025	$	187	$	1,163	$	95	$	1,445
2026	225		2,023		79		2,327
2027	14		913		—		927
2028	—		384		—		384
2029	—		—		—		—
Total	$	426	$	4,483	$	174	$	5,083

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Equity (Tables)

6 Months Ended

Sep. 30, 2024

Equity [Abstract]

Schedule of Noncontrolling Interests

The following tables present a rollforward of the noncontrolling interests for the three and six months ended September 30, 2024 and 2023:

	Noncontrolling Interests
(Dollars in thousands)	Trusts		BCH Class S Ordinary		BCH Class S Preferred		BCH Preferred Series A.0 Non-Redeemable		BCH Preferred Series A.1		BCH Preferred Series C		Class A of CT		Total Noncontrolling Interests
Balance, June 30, 2024	$	(166,463)	$	—	$	—	$	—	$	200,756	$	—	$	—	$	34,293
Net loss	(4,523)		—		—		—		(3,067)		—		—		(7,590)
Reclass of distributions payable to noncontrolling interest holder	(122)		—		—		—		—		—		—		(122)
Reclass of BCH Preferred A.0 Non-Redeemable from temporary to permanent equity	—		—		—		125,526		—		—		—		125,526
Balance, September 30, 2024	$	(171,108)	$	—	$	—	$	125,526	$	197,689	$	—	$	—	$	152,107

	Noncontrolling Interests
(Dollars in thousands)	Trusts		BCH Class S Ordinary		BCH Class S Preferred		BCH Preferred Series A.0 Non-Redeemable		BCH Preferred A.1		BCH Preferred Series C		Class A of CT		Total Noncontrolling Interests
Balance, March 31, 2024	$	(165,712)	$	—	$	—	$	—	$	207,943	$	—	$	—	$	42,231
Net loss	(5,049)		—		—		—		(10,254)		—		—		(15,303)
Reclass of distributions payable to noncontrolling interest holder	(347)		—		—		—		—		—		—		(347)
Reclass of BCH Preferred A.0 from temporary to permanent equity	—		—		—		125,526		—		—		—		125,526
Balance, September 30, 2024	$	(171,108)	$	—	$	—	$	125,526	$	197,689	$	—	$	—	$	152,107

	Noncontrolling Interests
(Dollars in thousands)	Trusts		BCH Class S Ordinary		BCH Class S Preferred		BCH Preferred Series A.1		BCH Preferred Series C		Class A of CT		Total Noncontrolling Interests
Balance, June 30, 2023	$	(132,361)	$	19,311	$	856	$	691,825	$	205,759	$	690	$	786,080
Net loss	(3,591)		(9,614)		—		(570)		—		(421)		(14,196)
Reduction of noncontrolling interest in connection with recent financings	(3,272)		—		—		—		—		—		(3,272)
Issuance of noncontrolling interest in connection with recent financings	79		—		—		—		—		—		79
Reclass of distributions payable to noncontrolling interest holder	(238)		—		—		—		—		—		(238)
Conversion of Preferred Series C to Class A common stock	—		—		—		—		(205,759)		—		(205,759)
Issuance of Series B-1 preferred stock and noncontrolling interest in connection with recent financings	942		—		—		—		—		—		942
Balance, September 30, 2023	$	(138,441)	$	9,697	$	856	$	691,255	$	—	$	269	$	563,636

	Noncontrolling Interests
(Dollars in thousands)	Trusts		BCH Class S Ordinary		BCH Class S Preferred		BCH Preferred Series A.1		BCH Preferred Series C		Class A of CT		Total Noncontrolling Interests
Balance, March 31, 2023	$	(118,299)	$	52,560	$	856	$	—	$	205,759	$	1,337	$	142,213
Net loss	(17,457)		(38,979)		—		(1,244)		—		(1,068)		(58,748)
Reclass of distributions payable to noncontrolling interest holder	(567)		—		—		—		—		—		(567)
Issuance of shares in connection with recent financings	133		—		—		—		—		—		133
Reduction of noncontrolling interest in connection with recent financings	(3,272)		—		—		—		—		—		(3,272)
Issuance of noncontrolling interest in connection with recent financings	79		—		—		—		—		—		79
Conversion of Class S Ordinary to Class A common stock	—		(3,884)		—		—		—		—		(3,884)
Conversion of Preferred Series C to Class A common stock	—		—		—		—		(205,759)		—		(205,759)
Deemed dividend for BCG Preferred Series B.2 Unit Accounts preferred return	—		—		—		(6,942)		—		—		(6,942)
Reclass of BCH Preferred A.1 from temporary to permanent equity	—		—		—		699,441		—		—		699,441
Issuance of Series B-1 preferred stock and noncontrolling interest in connection with recent financings	942		—		—		—		—		—		942
Balance, September 30, 2023	$	(138,441)	$	9,697	$	856	$	691,255	$	—	$	269	$	563,636

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Net Income (Loss) per Share (Tables)

6 Months Ended

Sep. 30, 2024

Earnings Per Share [Abstract]

Schedule of Earnings Per Share, Basic and Diluted

Basic net income (loss) attributable to Beneficient per common share for the three and six months ended September 30, 2024 and 2023, is as follows:

(Dollars in thousands)	Three Months Ended September 30,				Six Months Ended September 30,
	2024		2023		2024		2023
Net income (loss)	$	9,747	$	(381,764)	$	54,057	$	(1,537,734)
Plus: Net loss attributable to noncontrolling interests	7,590		14,196		15,303		58,748
Less: Noncontrolling interest guaranteed payment	(4,423)		(4,167)		(8,779)		(8,272)
Net income (loss) attributable to Beneficient common shareholders	$	12,914	$	(371,735)	$	60,581	$	(1,487,258)
Net income (loss) attributable to Class A common shareholders	12,270		(344,580)		57,040		(1,378,616)
Net income (loss) attributable to Class B common shareholders	644		(27,155)		3,541		(108,642)
Basic weighted average of common shares outstanding
Class A	4,122,438		2,971,767		3,910,871		2,645,234
Class B	239,256		239,256		239,256		239,256
Basic net income (loss) attributable to Beneficient per common share
Class A	$	2.98	$	(115.95)	$	14.58	$	(521.17)
Class B	$	2.69	$	(113.50)	$	14.80	$	(454.08)

Diluted net income attributable to Beneficient per common share for the three and six months ended September 30, 2024, is as follows:

(Dollars in thousands)
Diluted income per share	Three Months Ended September 30, 2024		Six Months Ended September 30, 2024
Net income attributable to Beneficient common shareholders - Basic	$	12,914	$	60,581
Less: Net loss attributable to noncontrolling interests - Ben	(3,067)		(10,254)
Plus: Noncontrolling interest guaranteed payment	4,423		8,779
Net income attributable to Beneficient common shareholders - Diluted	$	14,270	$	59,106
Basic weighted average of common shares outstanding (Class A and Class B)	4,361,694		4,150,127
Dilutive effect of:
Series B Preferred Stock	165,036		165,036
Class S Ordinary	66,982		66,982
Class S Preferred	605		605
Preferred Series A Subclass 0	102,832,018		77,582,588
Preferred Series A Subclass 1	330,926,963		249,670,975
Restricted Stock Units	561,766		296,608
Diluted weighted average of common shares outstanding (Class A and Class B)	438,915,064		331,932,921
Diluted net income attributable to Beneficient per common share (Class A and Class B)	$	0.03	$	0.18

Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share

In computing diluted net loss per share, we considered potentially dilutive shares. Anti-dilutive shares not recognized in the diluted net loss per share calculation for the three and six months ended September 30, 2024 and 2023, were as follows:

	Shares		Shares
	Three Months Ended September 30,		Six Months Ended September 30,
	2024	2023	2024	2023
Class S Ordinary	—	66,982	—	67,936
Class S Preferred	—	605	—	605
Preferred Series A Subclass 0	—	90,445,956	—	32,916,204
Preferred Series A Subclass 1	—	291,066,987	—	110,618,486
Preferred Series C Subclass 1	—	29,919	—	151,917
Restricted Stock Units	121,721	127,742	122,098	123,536
Convertible Debt	396,174	—	199,169	—
Warrants	31,270,860	30,669,850	31,073,825	24,708,118
Total anti-dilutive shares	31,788,755	412,550,601	31,395,092	168,595,329

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Income Taxes (Tables)

6 Months Ended

Sep. 30, 2024

Income Tax Disclosure [Abstract]

Schedule of Components of Income Tax Expense (Benefit)

The components of income tax expense for the three and six months ended September 30, 2024 and 2023, were as follows:

(Dollars in thousands)	Three Months Ended September 30,				Six Months Ended September 30,
	2024		2023		2024		2023
Current expense
Federal	$	—	$	—	$	28	$	—
Deferred expense
Federal	—		—		—		—
Income tax expense	$	—	$	—	$	28	$	—

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Variable Interest Entities (Tables)

6 Months Ended

Sep. 30, 2024

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Schedule of Variable Interest Entities

The consolidated statements of financial condition include the following amounts from these consolidated VIEs as of the dates presented:

(Dollars in thousands)	September 30, 2024		March 31, 2024
Assets:
Cash and cash equivalents	$	1,008	$	963
Restricted cash	314		64
Investments, at fair value	334,987		329,113
Other assets	32		30
Total Assets of VIEs	$	336,341	$	330,170
Liabilities:
Accounts payable and accrued expense	$	2,316	$	1,670
Other liabilities	19		109
Total Liabilities of VIEs	$	2,335	$	1,779
Equity:
Treasury stock	$	(3,444)	$	(3,444)
Noncontrolling interests	(171,110)		(165,712)
Accumulated other comprehensive income	281		276
Total Equity of VIEs	$	(174,273)	$	(168,880)

The consolidated statements of comprehensive income (loss) for the periods presented include the following amounts from these consolidated VIEs:

	Three Months Ended September 30,				Six Months Ended September 30,
	2024		2023		2024		2023
(Dollars in thousands)
Revenues
Investment income (loss), net	$	8,541	$	(13)	$	19,569	$	487
Gain (loss) on financial instruments, net	572		(41,875)		(603)		(43,679)
Interest and dividend income	—		2		—		10
Total revenues	9,113		(41,886)		18,966		(43,182)
Operating expenses
Interest expense	—		1,794		—		3,668
Provision for credit losses	476		—		998		—
Professional services	571		884		1,193		2,145
Other expenses	189		26		309		383
Total operating expenses	1,236		2,704		2,500		6,196
Net income (loss)	$	7,877	$	(44,590)	$	16,466	$	(49,378)
Net loss attributable to noncontrolling interests	$	(4,523)	$	(3,592)	$	(5,049)	$	(17,458)

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Segment Reporting (Tables)

6 Months Ended

Sep. 30, 2024

Segment Reporting [Abstract]

Schedule of Segment Reporting Information, by Segment

The following table presents a reconciliation of operating income (loss) of our reportable segments, excluding the Customer ExAlt Trusts, to net income (loss) attributable to Beneficient’s common shareholders. This reconciliation serves to provide users of our financial statements an understanding and visual aide of the reportable segments that impact net income (loss) attributable to the common shareholder and reiterates that the consolidation of the Customer ExAlt Trusts has no impact on the net income (loss) attributable to Beneficient’s common shareholders.

(in thousands)	Three Months Ended September 30,				Six Months Ended September 30,
	2024		2023		2024		2023
Operating income (loss)
Ben Liquidity	$	2,905	$	(272,091)	$	2,391	$	(1,175,119)
Ben Custody	4,329		(80,847)		5,616		(270,844)
Corporate & Other	(16,426)		(25,234)		27,665		(74,313)
Plus: Gain on liability resolution	23,462		—		23,462		—
Less: Income tax expense (allocable to Ben and BCH equity holders)	—		—		(28)		—
Plus: Net loss attributable to noncontrolling interests - Ben	3,067		10,604		10,254		41,290
Less: Noncontrolling interest guaranteed payment	(4,423)		(4,167)		(8,779)		(8,272)
Net income (loss) attributable to common shareholders	$	12,914	$	(371,735)	$	60,581	$	(1,487,258)

The following tables include the results of each of the Company’s reportable segments reconciled to the consolidated financial statements (in thousands):

	Three Months Ended September 30, 2024
	Ben Liquidity		Ben Custody		Customer ExAlt Trusts		Corporate & Other		Consolidating Eliminations		Total
External revenues
Investment income, net	$	—	$	—	$	8,541	$	—	$	—	$	8,541
Gain (loss) on financial instruments, net	—		—		571		(750)		—		(179)
Interest and dividend income	—		—		—		12		—		12
Trust services and administration revenues	—		187		—		—		—		187
Intersegment revenues
Interest income	11,978		—		—		—		(11,978)		—
Trust services and administration revenues	—		5,199		—		—		(5,199)		—
Total revenues	11,978		5,386		9,112		(738)		(17,177)		8,561
External expenses
Employee compensation and benefits	361		542		—		6,232		—		7,135
Interest expense	3,163		—		—		1,157		—		4,320
Professional services	395		30		545		6,287		—		7,257
Provision for credit losses	—		—		476		—		—		476
Loss on impairment of goodwill	—		298		—		—		—		298
Other expenses	402		187		189		2,012		—		2,790
Intersegment expenses
Interest expense	—		—		36,049		—		(36,049)		—
Provision for credit losses	4,752		—		—		—		(4,752)		—
Other expenses	—		—		3,402		—		(3,402)		—
Total expenses	9,073		1,057		40,661		15,688		(44,203)		22,276
Operating income (loss)	$	2,905	$	4,329	$	(31,549)	$	(16,426)	$	27,026	$	(13,715)

	Three Months Ended September 30, 2023
	Ben Liquidity		Ben Custody		Customer ExAlt Trusts		Corporate & Other		Consolidating Eliminations		Total
External revenues
Investment loss, net	$	—	$	—	$	(13)	$	—	$	—	$	(13)
Loss on financial instruments, net	—		—		(41,875)		(900)		—		(42,775)
Interest and dividend income	—		—		2		112		—		114
Trust services and administration revenues	—		8		—		(95)		—		(87)
Intersegment revenues
Interest income	13,022		—		—		—		(13,022)		—
Trust services and administration revenues	—		6,482		—		—		(6,482)		—
Total revenues	13,022		6,490		(41,886)		(883)		(19,504)		(42,761)
External expenses
Employee compensation and benefits	1,482		545		—		13,371		—		15,398
Interest expense	2,120		—		1,794		1,200		—		5,114
Professional services	264		89		884		5,420		—		6,657
Loss on impairment of goodwill	220,212		86,472		—		—		—		306,684
Other expenses	533		231		26		4,360		—		5,150
Intersegment expenses
Interest expense	—		—		29,835		—		(29,835)		—
Provision for loan losses	60,502		—		—		—		(60,502)		—
Other expenses	—		—		3,850		—		(3,850)		—
Total expenses	285,113		87,337		36,389		24,351		(94,187)		339,003
Operating income (loss)	$	(272,091)	$	(80,847)	$	(78,275)	$	(25,234)	$	74,683	$	(381,764)

	Six Months Ended September 30, 2024
	Ben Liquidity		Ben Custody		Customer ExAlt Trusts		Corporate & Other		Consolidating Eliminations		Total
External revenues
Investment income, net	$	—	$	—	$	19,569	$	—	$	—	$	19,569
Loss on financial instruments, net	—		—		(604)		(758)		—		(1,362)
Interest and dividend income	—		—		—		24		—		24
Trust services and administration revenues	—		376		—		—		—		376
Intersegment revenues
Interest income	22,827		—		—		—		(22,827)		—
Trust services and administration revenues	—		10,392		—		—		(10,392)		—
Total revenues	22,827		10,768		18,965		(734)		(33,219)		18,607
External expenses
Employee compensation and benefits	791		898		—		9,296		—		10,985
Interest expense	6,244		—		—		2,364		—		8,608
Professional services	869		426		1,167		10,339		—		12,801
Provision for credit losses	—		—		998		2		—		1,000
Loss on impairment of goodwill	—		3,427		—		265		—		3,692
Release of loss contingency related to arbitration award	—		—		—		(54,973)		—		(54,973)
Other expenses	853		401		309		4,308		—		5,871
Intersegment expenses
Interest expense	—		—		70,848		—		(70,848)		—
Provision for credit losses	11,679		—		—		—		(11,679)		—
Other expenses	—		—		6,821		—		(6,821)		—
Total expenses	20,436		5,152		80,143		(28,399)		(89,348)		(12,016)
Operating income (loss)	$	2,391	$	5,616	$	(61,178)	$	27,665	$	56,129	$	30,623

	Six Months Ended September 30, 2023
	Ben Liquidity		Ben Custody		Customer ExAlt Trusts		Corporate & Other		Consolidating Eliminations		Total
External revenues
Investment income, net	$	—	$	—	$	487	$	—	$	—	$	487
Loss on financial instruments, net	—		—		(43,679)		(2,557)		—		(46,236)
Interest and dividend income	—		—		10		220		—		230
Trust services and administration revenues	—		15		—		—		—		15
Intersegment revenues
Interest income	25,028		—		—		—		(25,028)		—
Trust services and administration revenues	—		13,050		—		—		(13,050)		—
Total revenues	25,028		13,065		(43,182)		(2,337)		(38,078)		(45,504)
External expenses
Employee compensation and benefits	3,975		1,105		—		46,141		—		51,221
Interest expense	2,878		—		3,668		2,352		—		8,898
Professional services	897		589		2,145		13,399		—		17,030
Loss on impairment of goodwill	1,121,212		281,777		—		—		—		1,402,989
Other expenses	1,187		438		383		10,084		—		12,092
Intersegment expenses
Interest expense	—		—		59,615		—		(59,615)		—
Provision for loan losses	69,998		—		—		—		(69,998)		—
Other expenses	—		—		7,694		—		(7,694)		—
Total expenses	1,200,147		283,909		73,505		71,976		(137,307)		1,492,230
Operating income (loss)	$	(1,175,119)	$	(270,844)	$	(116,687)	$	(74,313)	$	99,229	$	(1,537,734)

	As of September 30, 2024
	Ben Liquidity		Ben Custody		Customer ExAlt Trusts		Corporate & Other		Consolidating Eliminations		Total
Loans to Customer ExAlt Trusts, net	$	260,686	$	—	$	—	$	—	$	(260,686)	$	—
Investments, at fair value	—		—		334,987		—		—		334,987
Other assets	1,609		21,909		18,025		14,392		(35,148)		20,787
Goodwill and intangible assets, net	—		7,469		—		5,545		—		13,014
Total Assets	$	262,295	$	29,378	$	353,012	$	19,937	$	(295,834)	$	368,788
	As of March 31, 2024
	Ben Liquidity		Ben Custody		Customer ExAlt Trusts		Corporate & Other		Consolidating Eliminations		Total
Loans to Customer ExAlt Trusts, net	$	256,184	$	—	$	—	$	—	$	(256,184)	$	—
Investments, at fair value	—		—		329,113		6		—		329,119
Other assets	5,814		20,398		19,467		12,510		(35,513)		22,676
Goodwill and intangible assets, net	—		10,896		—		5,810		—		16,706
Total Assets	$	261,998	$	31,294	$	348,580	$	18,326	$	(291,697)	$	368,501

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Risks and Uncertainties (Tables)

6 Months Ended

Sep. 30, 2024

Risks and Uncertainties [Abstract]

Schedules of Concentration of Risk, by Risk Factor

The portfolio of alternative assets covers the following industry sectors and geographic regions for the periods shown below (dollar amounts in thousands):

	September 30, 2024				March 31, 2024
Industry Sector	Value		Percent of Total		Value		Percent of Total
Food and staples retailing	$	66,517	22.1	%	$	41,721	14.2	%
Software and services	44,683		14.8		42,908		14.6
Diversified financials	30,222		10.0		30,297		10.3
Utilities	29,693		9.9		28,768		9.8
Energy	17,151		5.7		19,930		6.8
Capital goods	15,733		5.2		23,146		7.9
Semiconductors and Semiconductor Equipment	14,797		4.9		16,144		5.5
Health care equipment and services	14,441		4.8		16,520		5.6
Other(1)	68,151		22.6		74,482		25.3
Total	$	301,388	100.0	%	$	293,916	100.0	%

(1) Industries in this category each comprise less than 5 percent. Semiconductors and Semiconductor Equipment and Health Care Equipment and Services is shown separately as it comprised greater than 5 percent in the prior period.

	September 30, 2024				March 31, 2024
Geography	Value		Percent of Total		Value		Percent of Total
North America	$	150,864	50.1	%	$	164,205	55.9	%
South America	68,166		22.6		43,543		14.8
Asia	46,342		15.4		49,385		16.8
Europe	35,337		11.7		35,870		12.2
Africa	679		0.2		913		0.3
Total	$	301,388	100.0	%	$	293,916	100.0	%

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Supplemental Cash Flow Information (Tables)

6 Months Ended

Sep. 30, 2024

Offsetting [Abstract]

Schedule of Cash and Cash Equivalents

The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the consolidated statements of financial condition and that are shown in the consolidated statements of cash flows:

	September 30, 2024		March 31, 2024
Cash and cash equivalents	$	4,482	$	7,913
Restricted cash	314		64
Total cash, cash equivalents and restricted cash	$	4,796	$	7,977

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Overview of the Business (Details)												1 Months Ended	3 Months Ended		6 Months Ended		12 Months Ended
	Nov. 13, 2024 USD ($) shares	Nov. 12, 2024 USD ($)	Aug. 14, 2024 USD ($) shares	Aug. 06, 2024 USD ($) $ / shares shares	Apr. 18, 2024	Nov. 03, 2023 employee	Oct. 19, 2023 USD ($)	Jul. 11, 2023 employee	Jun. 27, 2023 USD ($)	Dec. 07, 2021 $ / shares	Dec. 06, 2021 $ / shares	Apr. 30, 2024	Sep. 30, 2024 USD ($)	Sep. 30, 2023 USD ($)	Sep. 30, 2024 USD ($)	Sep. 30, 2023 USD ($)	Sep. 30, 2024 USD ($)	Oct. 31, 2024 USD ($)	Aug. 16, 2024 USD ($)	Jun. 20, 2024 USD ($)	Mar. 31, 2024 USD ($)	Jun. 07, 2023 shares
Business Acquisition [Line Items]
Charitable contribution percentage													0.025		0.025		0.025
Portion allocated to noncontrolling interest holders (in dollars per share) | $ / shares										$ 0.025	$ 0.05
Portion allocated to lender (in dollars per share) | $ / shares										$ 1.00	$ 0.95
Cash and cash equivalents													$ 4,482,000		$ 4,482,000		$ 4,482,000				$ 7,913,000
Net income (loss)													9,747,000	$ (381,764,000)	54,057,000	$ (1,537,734,000)
Accumulated deficit													(1,998,633,000)		(1,998,633,000)		(1,998,633,000)				$ (2,059,214,000)
Outstanding borrowing maturing													$ 23,495,000		23,495,000		23,495,000
Securities exercisable (in shares) | shares				1,325,382
Stock split conversion ratio					0.0125							0.0125
Furloughed employees | employee						15		30
Percentage of workforce						10.00%		20.00%
Minimum
Business Acquisition [Line Items]
Stock split conversion ratio												0.1
Maximum
Business Acquisition [Line Items]
Stock split conversion ratio												0.01
Class A common stock
Business Acquisition [Line Items]
Securities exercisable (in shares) | shares			662,691	1,325,382
Warrant exercise price (in dollars per share) | $ / shares				$ 2.63
Convertible debt
Business Acquisition [Line Items]
Securities exercisable (in shares) | shares				1,325,382
Standby Equity Purchase Agreement
Business Acquisition [Line Items]
Standby equity purchase agreement, sale of stock									$ 250,000,000						$ 2,600,000		$ 3,900,000
Standby Equity Purchase Agreement | Maximum
Business Acquisition [Line Items]
Standby equity purchase agreement, sale of stock									$ 250,000,000
HH-BDH | Term Loan
Business Acquisition [Line Items]
Debt term							3 years
Term loan							$ 25,000,000												$ 1,700,000
Securities Purchase Agreement | Convertible debt
Business Acquisition [Line Items]
Aggregate principal amount				$ 4,000,000
Conversion amount			$ 2,000,000.0	$ 2,000,000
Subsequent Event
Business Acquisition [Line Items]
Cash and cash equivalents																		$ 3,500,000
Subsequent Event | Class A common stock
Business Acquisition [Line Items]
Securities exercisable (in shares) | shares	662,691
Subsequent Event | Standby Equity Purchase Agreement
Business Acquisition [Line Items]
Standby equity purchase agreement, sale of stock		$ 200,100,000
Subsequent Event | Securities Purchase Agreement | Convertible debt
Business Acquisition [Line Items]
Conversion amount	$ 2,000,000
Class A common stock
Business Acquisition [Line Items]
Stock value issuable																				$ 246,100,000
Securities exercisable (in shares) | shares																						1
Preferred Series A Subclass 0
Business Acquisition [Line Items]
Redemption of preferred stock, maximum percentage of capital account balance non redeemable													50.00%		50.00%		50.00%
Maximum percentage redeemable													50.00%		50.00%		50.00%
BCH | Subclass 1 Class A Units
Business Acquisition [Line Items]
Ownership interest													1		1		1
Related Party | HH-BDH | Term Loan
Business Acquisition [Line Items]
Debt term							3 years
Term loan							$ 25,000,000												$ 1,700,000

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Understanding our Financial Statements and the Impact to the Common Shareholder - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Related Party Transaction [Line Items]
Total revenues	$ 8,561	$ (42,761)	$ 18,607	$ (45,504)
Operating Segments | Ben Liquidity
Related Party Transaction [Line Items]
Total revenues	11,978	13,022	22,827	25,028
Operating Segments | Ben Custody
Related Party Transaction [Line Items]
Total revenues	$ 5,386	$ 6,490	$ 10,768	$ 13,065
Customer ExAlt Trusts
Related Party Transaction [Line Items]
Recurring fee, percentage	2.80%		2.80%
Minimum | Customer ExAlt Trusts
Related Party Transaction [Line Items]
Interest rate	5.00%		5.00%
One time fee, percentage	1.00%		1.00%
Maximum | Customer ExAlt Trusts
Related Party Transaction [Line Items]
Interest rate	14.00%		14.00%
One time fee, percentage	7.00%		7.00%

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Understanding our Financial Statements and the Impact to the Common Shareholder - Disaggregated Information (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Segment Reporting Information [Line Items]
Operating income (loss)	$ (13,715)	$ (381,764)	$ 30,623	$ (1,537,734)
Plus: Gain on liability resolution	23,462	0	23,462	0
Less: Income tax expense (allocable to Ben and BCH equity holders)	0	0	(28)	0
Plus: Net loss attributable to noncontrolling interests - Ben	7,590	14,196	15,303	58,748
Less: Noncontrolling interest guaranteed payment	(4,423)	(4,167)	(8,779)	(8,272)
Net income (loss) attributable to Beneficient common shareholders	12,914	(371,735)	60,581	(1,487,258)
Corporate & Other
Segment Reporting Information [Line Items]
Operating income (loss)	(16,426)	(25,234)	27,665	(74,313)
Operating Segments | Ben Liquidity
Segment Reporting Information [Line Items]
Operating income (loss)	2,905	(272,091)	2,391	(1,175,119)
Operating Segments | Ben Custody
Segment Reporting Information [Line Items]
Operating income (loss)	4,329	(80,847)	5,616	(270,844)
Beneficient
Segment Reporting Information [Line Items]
Less: Income tax expense (allocable to Ben and BCH equity holders)	0	0	(28)	0
Consolidated Entity, Excluding Consolidated VIE
Segment Reporting Information [Line Items]
Plus: Net loss attributable to noncontrolling interests - Ben	$ 3,067	$ 10,604	$ 10,254	$ 41,290

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De-SPAC Merger Transaction - Narrative (Details) $ / shares in Units, $ in Thousands						3 Months Ended			6 Months Ended
	Jun. 29, 2023 USD ($)	Jun. 08, 2023 shares	Jun. 07, 2023 USD ($) $ / shares shares	Jun. 06, 2023 $ / shares shares	Jun. 05, 2023 USD ($) $ / shares shares	Sep. 30, 2024 USD ($) $ / shares shares	Sep. 30, 2023 USD ($)	Jun. 30, 2023 USD ($)	Sep. 30, 2024 USD ($) $ / shares shares	Sep. 30, 2023 USD ($)	Aug. 06, 2024 shares	Mar. 31, 2024 USD ($) $ / shares shares
Class of Stock [Line Items]
Anniversary of closing date									10 years
Discount rate				0.20
Valuation (in dollars per share) | $ / shares				$ 800.00
Compensation expense | $						$ 3,364	$ 8,503		$ 4,358	$ 35,504
Cash and cash equivalents | $						4,482			4,482			$ 7,913
Net proceeds | $			$ 1,800
Securities exercisable (in shares)											1,325,382
Fair value | $						784			784			$ 178
Gain (loss) on financial instruments | $						$ (179)	(42,775)		$ (1,362)	(46,236)
Conversion of BCG Common Class A Units
Class of Stock [Line Items]
Additional value | $								$ 15,000
Compensation expense | $								$ 15,000		15,000
River North, L.P.
Class of Stock [Line Items]
Gross proceeds | $	$ 5,000
Avalon
Class of Stock [Line Items]
Cash and cash equivalents | $			27,900
Transaction expense | $			26,100
Ben | APIC
Class of Stock [Line Items]
Transaction expense | $			$ 21,700
Beneficient Warrants
Class of Stock [Line Items]
Units converted (in shares)			295,313
Warrants outstanding (in shares)		296,969				24,699,725			24,699,725
Warrants issued (in shares)		296,969
Warrant exercise price (in dollars per share) | $ / shares			$ 920.00
Earnout period			5 years
Minimum number of days for written notice			30 days
Number of trading days			20 days
Number of consecutive trading days			30 days
Threshold business days			3 days
Share price (in dollars per share) | $ / shares			$ 800.00
Fair value | $						$ 200			$ 200
Gain (loss) on financial instruments | $							$ 200			$ (1,700)
Beneficient Warrants | $18.00 Minimum Share Price
Class of Stock [Line Items]
Repurchase price (in dollars per share) | $ / shares			0.80
Share price (in dollars per share) | $ / shares			1,440
Beneficient Warrants | $10.00 Minimum Share Price
Class of Stock [Line Items]
Repurchase price (in dollars per share) | $ / shares			$ 8.00
Avalon Warrants, Publicly Traded
Class of Stock [Line Items]
Warrants assumed (in shares)			15,525,000
Avalon Warrants, Private Placement
Class of Stock [Line Items]
Warrants assumed (in shares)			8,100,000
Closing period			30 days
Avalon Class A Common Stock
Class of Stock [Line Items]
Price per unit (in dollars per share) | $ / shares					$ 847.04
Aggregate amount received | $					$ 25,000
Reserve amount | $					20,000
Units converted (in shares)			1
Transaction expense | $			$ 26,100
Avalon Class A Common Stock | Ben
Class of Stock [Line Items]
Aggregate amount received | $					5,000
Disbursed amount | $					$ 5,000
Avalon Class A Common Stock | River North, L.P.
Class of Stock [Line Items]
Aggregate amount received | $			$ 20,000
Series A Convertible Preferred Stock
Class of Stock [Line Items]
Common stock, par value (in dollars per share) | $ / shares					$ 0.001
Class A common stock
Class of Stock [Line Items]
Price per unit (in dollars per share) | $ / shares						$ 1.23			$ 1.23
Common stock, par value (in dollars per share) | $ / shares					$ 0.001	0.001			0.001			$ 0.001
Shares held post conversion (in shares)					36,956
Minimum price per share (in dollars per share) | $ / shares					$ 400.00
Maximum percentage of stock to sell					10.00%
Units converted (in shares)				1.25
Valuation (in dollars per share) | $ / shares						$ 10.00			$ 10.00
Units converted (in shares)				17,456
Stock issued (in shares)			99,649
Units outstanding (in shares)		2,358,429				4,573,000			4,573,000			3,339,000
Units issued (in shares)		2,358,429				4,580,000			4,580,000			3,348,000
Conversion of shares upon issuance (in shares)			0.25
Additional shares (in shares)		8,595
Stock outstanding following combination (in shares)		2,367,244
Securities exercisable (in shares)			1
Class A common stock | Minimum
Class of Stock [Line Items]
Volume weighted average share price (in dollars per share) | $ / shares					$ 400.00
Class A common stock | Maximum
Class of Stock [Line Items]
Volume weighted average share price (in dollars per share) | $ / shares					$ 640.00
Class A common stock | Conversion of BCG Common Class A Units
Class of Stock [Line Items]
Shares issued in connection to conversion (in shares)				1,076,462
Class A common stock | Conversion of BCG Preferred B-2 Units
Class of Stock [Line Items]
Shares issued in connection to conversion (in shares)				1,175,632
Class A common stock | Avalon Warrants, Publicly Traded
Class of Stock [Line Items]
Warrant exercisable adjusted for the stock splits (in shares)			194,063
Class A common stock | Avalon Warrants, Private Placement
Class of Stock [Line Items]
Warrant exercisable adjusted for the stock splits (in shares)			101,250
Forward Purchase Agreement, Purchased Shares
Class of Stock [Line Items]
Purchase agreement, transaction shares (in shares)					13,305
Forward Purchase Agreement, Prepaid Forward Shares
Class of Stock [Line Items]
Purchase agreement, transaction shares (in shares)					23,651	23,651			23,651
Series A preferred stock
Class of Stock [Line Items]
Units converted (in shares)			1
Preferred stock, shares issued (in shares)		34,962	34,961			0			0			0
Preferred stock, shares outstanding (in shares)		34,962				0			0			0
Securities exercisable (in shares)			1
Avalon Class B Common Stock
Class of Stock [Line Items]
Common stock, par value (in dollars per share) | $ / shares			$ 0.0001
Class B
Class of Stock [Line Items]
Common stock, par value (in dollars per share) | $ / shares					$ 0.001	$ 0.001			$ 0.001			$ 0.001
Units converted (in shares)				1.25
Units converted (in shares)				191,405
Units outstanding (in shares)		239,256				239,000			239,000			239,000
Units issued (in shares)		239,256				239,000			239,000			239,000
Class B | Conversion of BCG Common Class B Units
Class of Stock [Line Items]
Shares issued in connection to conversion (in shares)				239,256
Class A common stock, par value $0.001 per share
Class of Stock [Line Items]
Price per unit (in dollars per share) | $ / shares					$ 847.04

XML

De-SPAC Merger Transaction - Additional Equity Securities Information (Details) shares in Thousands, $ in Thousands	Jun. 06, 2023 USD ($) shares
Converted Capital Account Balance of BCH Preferred A.1
Class of Stock [Line Items]
Converted Capital Account Balance of BCH Preferred A.1 | $	$ 193,900
Converted Capital Account Balance of BCH Preferred A.1 | Committed Capital, A.1 Preferred Exchanged for Class S and Class B Transaction
Class of Stock [Line Items]
Converted Capital Account Balance of BCH Preferred A.1 | $	191,405
Converted Capital Account Balance of BCH Preferred A.1 | Committed Capital, A.1 Preferred Exchanged for Class S and Class A Transaction
Class of Stock [Line Items]
Converted Capital Account Balance of BCH Preferred A.1 | $	2,456
Converted Capital Account Balance of BCH Preferred A.1 | BHI | Committed Capital, A.1 Preferred Exchanged for Class S and Class B Transaction
Class of Stock [Line Items]
Converted Capital Account Balance of BCH Preferred A.1 | $	177,195
Converted Capital Account Balance of BCH Preferred A.1 | Hicks Holdings Operating, LLC | Committed Capital, A.1 Preferred Exchanged for Class S and Class B Transaction
Class of Stock [Line Items]
Converted Capital Account Balance of BCH Preferred A.1 | $	13,222
Converted Capital Account Balance of BCH Preferred A.1 | Bruce W. Schnitzer | Committed Capital, A.1 Preferred Exchanged for Class S and Class B Transaction
Class of Stock [Line Items]
Converted Capital Account Balance of BCH Preferred A.1 | $	988
Converted Capital Account Balance of BCH Preferred A.1 | Bruce W. Schnitzer | Committed Capital, A.1 Preferred Exchanged for Class S and Class A Transaction
Class of Stock [Line Items]
Converted Capital Account Balance of BCH Preferred A.1 | $	734
Converted Capital Account Balance of BCH Preferred A.1 | Richard W. Fisher | Committed Capital, A.1 Preferred Exchanged for Class S and Class A Transaction
Class of Stock [Line Items]
Converted Capital Account Balance of BCH Preferred A.1 | $	$ 1,722
BCH Class S Ordinary Units Received | Committed Capital, A.1 Preferred Exchanged for Class S and Class B Transaction
Class of Stock [Line Items]
Units Received (in units)	193
BCH Class S Ordinary Units Received | Committed Capital, A.1 Preferred Exchanged for Class S and Class A Transaction
Class of Stock [Line Items]
Units Received (in units)	19
BCH Class S Ordinary Units Received | BHI | Committed Capital, A.1 Preferred Exchanged for Class S and Class B Transaction
Class of Stock [Line Items]
Units Received (in units)	178
BCH Class S Ordinary Units Received | Hicks Holdings Operating, LLC | Committed Capital, A.1 Preferred Exchanged for Class S and Class B Transaction
Class of Stock [Line Items]
Units Received (in units)	14
BCH Class S Ordinary Units Received | Bruce W. Schnitzer | Committed Capital, A.1 Preferred Exchanged for Class S and Class B Transaction
Class of Stock [Line Items]
Units Received (in units)	1
BCH Class S Ordinary Units Received | Bruce W. Schnitzer | Committed Capital, A.1 Preferred Exchanged for Class S and Class A Transaction
Class of Stock [Line Items]
Units Received (in units)	9
BCH Class S Ordinary Units Received | Richard W. Fisher | Committed Capital, A.1 Preferred Exchanged for Class S and Class A Transaction
Class of Stock [Line Items]
Units Received (in units)	10
BCG Class B Units Received | Committed Capital, A.1 Preferred Exchanged for Class S and Class B Transaction
Class of Stock [Line Items]
Units Received (in units)	193
BCG Class B Units Received | BHI | Committed Capital, A.1 Preferred Exchanged for Class S and Class B Transaction
Class of Stock [Line Items]
Units Received (in units)	178
BCG Class B Units Received | Hicks Holdings Operating, LLC | Committed Capital, A.1 Preferred Exchanged for Class S and Class B Transaction
Class of Stock [Line Items]
Units Received (in units)	14
BCG Class B Units Received | Bruce W. Schnitzer | Committed Capital, A.1 Preferred Exchanged for Class S and Class B Transaction
Class of Stock [Line Items]
Units Received (in units)	1
BCG Class A Units Received | Committed Capital, A.1 Preferred Exchanged for Class S and Class A Transaction
Class of Stock [Line Items]
Units Received (in units)	19
BCG Class A Units Received | Bruce W. Schnitzer | Committed Capital, A.1 Preferred Exchanged for Class S and Class A Transaction
Class of Stock [Line Items]
Units Received (in units)	9
BCG Class A Units Received | Richard W. Fisher | Committed Capital, A.1 Preferred Exchanged for Class S and Class A Transaction
Class of Stock [Line Items]
Units Received (in units)	10

XML

Investments, at Fair Value - Investments at Fair Value (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Mar. 31, 2024
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Alternative assets	$ 301,388	$ 293,916
Debt securities available-for-sale	1,969	2,962
Other equity securities and interests	26,700	26,800
Ben
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Alternative assets	0	0
Public equity securities and option	0	0
Debt securities available-for-sale	0	0
Other equity securities and interests	0	6
Total investments, at fair value	0	6
Customer ExAlt Trusts
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Alternative assets	301,388	293,916
Public equity securities and option	4,885	4,897
Debt securities available-for-sale	1,969	2,962
Other equity securities and interests	26,745	27,338
Total investments, at fair value	$ 334,987	$ 329,113

XML

Investments, at Fair Value - Narrative (Details)			1 Months Ended	3 Months Ended		6 Months Ended
	Apr. 27, 2022 USD ($)	Apr. 01, 2022 USD ($)	Sep. 30, 2023 USD ($)	Sep. 30, 2024 USD ($) underlyingInvestment investmentFund	Sep. 30, 2023 USD ($)	Sep. 30, 2024 USD ($) underlyingInvestment investmentFund	Sep. 30, 2023 USD ($)	Mar. 31, 2024 USD ($)
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Distribution proceeds						$ 12,547,000	$ 26,256,000
Alternative investment funds | investmentFund				237		237
Underlying investments | underlyingInvestment				797		797
Percent of underlying investments in private companies				92.00%		92.00%
Notational amount of put options		$ 141,300,000
Proceeds from sale of put options by Ben			$ 1,000,000			$ 0	968,000
Gain (loss) on financial instruments, net				$ (179,000)	$ (42,775,000)	(1,362,000)	(46,236,000)
Investments				334,987,000		334,987,000		$ 329,119,000
Noncredit-related portion of net unrealized gains (losses)				26,000	(105,000)	5,000	4,185,000
Other comprehensive income (loss), reclassification adjustment from AOCI for transfer of securities, net of tax					13,694,000		13,694,000
Credit-related portion of other-than-temporary impairment on investment in debt securities				500,000	0	1,000,000.0	0
Equity securities without readily determinable fair value				26,700,000		26,700,000		26,800,000
Equity impairment loss				0	0	0	0
Put options
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Gain (loss) on financial instruments, net			$ (700,000)	0	(695,000)	0	(3,023,000)
Investments				0		0		0
Ben
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Equity securities without readily determinable fair value				0		0		6,000
Ben | Put options
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Gain (loss) on financial instruments, net					$ (300,000)		$ (2,000,000.0)
CT Risk Management, L.L.C.
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Purchase of put options		$ 5,000,000
Proceeds from equity interest	$ 2,400,000
Class A common stock, par value $0.001 per share | Other Public Companies
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Fair value of common stock				$ 4,900,000		$ 4,900,000		4,900,000
Wind Down Trust | GWG Holdings
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Fair value of common stock								$ 600,000

XML

Investments, at Fair Value - Alternative Investments (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Mar. 31, 2024
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Carrying Value	$ 301,388	$ 293,916
Unfunded Commitments	47,163	47,823
Venture Capital
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Carrying Value	128,033	139,495
Unfunded Commitments	2,344	2,548
Private Equity
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Carrying Value	138,089	116,462
Unfunded Commitments	37,989	38,401
Natural Resources
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Carrying Value	16,815	17,553
Unfunded Commitments	3,318	3,340
Private Real Estate
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Carrying Value	8,580	8,760
Unfunded Commitments	2,884	2,907
Hedge Funds
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Carrying Value	3,539	6,095
Unfunded Commitments	245	245
Other(1)
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Carrying Value	6,332	5,551
Unfunded Commitments	$ 383	$ 382

XML

Investments, at Fair Value - Amortized Cost vs Fair Value (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Mar. 31, 2024
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Amortized Cost Basis	$ 2,685	$ 2,685
Gross Unrealized Gains	344	1,337
Gross Unrealized Losses	(1,060)	(1,060)
Fair Value	1,969	2,962
Other debt securities
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Amortized Cost Basis	2,685	2,685
Gross Unrealized Gains	344	1,337
Gross Unrealized Losses	(1,060)	(1,060)
Fair Value	$ 1,969	$ 2,962

XML

Investments, at Fair Value - Continuous Loss Position (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Mar. 31, 2024
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Fair Value, Total available-for-sale debt securities with unrealized losses	$ 1,969	$ 1,964
Unrealized Losses, Total available-for-sale debt securities with unrealized losses	1,060	1,060
Other debt securities
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Fair Value, Less than twelve months	0	0
Fair Value, Twelve months or longer	1,969	1,964
Unrealized Losses, Less than twelve months	0	0
Unrealized Losses, Twelve months or longer	$ 1,060	$ 1,060

XML

Investments, at Fair Value - Debt Securities, Allowance for Credit Loss (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Roll Forward]
Balance, beginning of period	$ 31,812	$ 31,290	$ 31,290	$ 31,290
Credit related losses not previously recognized	0	0	522	0
Increase in amounts previously recognized	476	0	476	0
Balance, end of period	$ 32,288	$ 31,290	$ 32,288	$ 31,290

XML

Investments, at Fair Value - Debt Securities Maturity (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Mar. 31, 2024
Amortized Cost Basis
Due in one year or less	$ 1,687	$ 1,687
No fixed maturity	998	998
Amortized Cost Basis	2,685	2,685
Fair Value
Due in one year or less	1,969	1,964
No fixed maturity	0	998
Fair Value	$ 1,969	$ 2,962

XML

Fair Value Measurements - Narrative (Details)	3 Months Ended		6 Months Ended
	Sep. 30, 2024 USD ($) $ / shares security	Sep. 30, 2023 USD ($)	Sep. 30, 2024 USD ($) $ / shares security	Sep. 30, 2023 USD ($)	Jun. 30, 2024	Mar. 31, 2024 USD ($)	Jun. 30, 2023
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Alternative assets	$ 301,388,000		$ 301,388,000			$ 293,916,000
Gain (loss) on investments	8,541,000	$ (13,000)	19,569,000	$ 487,000
Equity securities without readily determinable fair value	$ 26,700,000		$ 26,700,000			$ 26,800,000
Number of securities with an upward adjustment | security	1		1
Equity securities, cumulative upward adjustment	$ 10,800,000		$ 10,800,000
Equity securities, upward adjustment	0	0	0	0
Loss on impairment of goodwill	298,000	306,684,000	3,692,000	1,402,989,000
Cumulative impairment loss	$ 3,700,000	$ 1,400,000,000	$ 3,700,000	$ 1,400,000,000
Long-term growth rate	3.00%	3.00%	3.00%	3.00%	3.00%		3.00%
Measurement Input, Expected Term
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Debt instrument, measurement input	4.2		4.2
Measurement Input, Discount Rate
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Debt instrument, measurement input | $ / shares	0.217		0.217
Measurement Input, Risk Free Interest Rate
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Debt instrument, measurement input	4.6		4.6
Yorkville | Measurement Input, Expected Term
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Debt instrument, measurement input	2.85		2.85
Yorkville | Measurement Input, Share Price
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Debt instrument, measurement input | $ / shares	1.23		1.23
Yorkville | Measurement Input, Price Volatility
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Debt instrument, measurement input	146.4		146.4
Yorkville | Measurement Input, Expected Dividend Rate
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Debt instrument, measurement input	0		0
Yorkville | Measurement Input, Risk Free Interest Rate
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Debt instrument, measurement input	3.34		3.34
Yorkville | Measurement Input, Exercise Price
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Debt instrument, measurement input | $ / shares	2.63		2.63
Ben Markets
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Loss on impairment of goodwill			$ 265,000
Goodwill impairment test, excess fair value over carrying value	$ 400,000		$ 400,000
Minimum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Discount rates	28.00%	25.30%	28.00%	25.30%	28.00%		24.80%
Maximum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Discount rates	29.30%	26.20%	29.30%	26.20%	29.30%		25.60%

XML

Fair Value Measurements - Assets and Liabilities at Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Mar. 31, 2024
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Public equity securities	$ 334,987	$ 329,119
Debt securities available-for-sale	1,969	2,962
Convertible debt	1,936	0
Warrants liability	784	178
Prepaid forward liability		14
Level 1
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Convertible debt	0
Warrants liability	213	178
Prepaid forward liability		14
Level 2
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Convertible debt	0
Warrants liability	571	0
Prepaid forward liability		0
Level 3
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Convertible debt	1,936
Warrants liability	0	0
Prepaid forward liability		0
Public equity securities
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Public equity securities	4,885	4,897
Public equity securities | Level 1
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Public equity securities	4,885	4,897
Public equity securities | Level 2
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Public equity securities	0	0
Public equity securities | Level 3
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Public equity securities	0	0
Other equity interests
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Other equity interests	20	558
Other equity interests | Level 1
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Other equity interests	0	0
Other equity interests | Level 2
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Other equity interests	20	558
Other equity interests | Level 3
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Other equity interests	0	0
Debt securities available-for-sale, other
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Debt securities available-for-sale	1,969	2,962
Debt securities available-for-sale, other | Level 1
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Debt securities available-for-sale	0	0
Debt securities available-for-sale, other | Level 2
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Debt securities available-for-sale	0	998
Debt securities available-for-sale, other | Level 3
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Debt securities available-for-sale	$ 1,969	$ 1,964

XML

Fair Value Measurements - Gain (Loss) on Financial Instruments (Details) - USD ($) $ in Thousands	1 Months Ended	3 Months Ended		6 Months Ended
	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Gain (loss) on financial instruments, net		$ (179)	$ (42,775)	$ (1,362)	$ (46,236)
Other comprehensive income (loss), reclassification adjustment from AOCI for transfer of securities, net of tax			13,694		13,694
Related party equity securities
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Gain (loss) on financial instruments, net		0	(136)	0	(3,702)
Other public equity securities
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Gain (loss) on financial instruments, net		745	(516)	(12)	(736)
Put options
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Gain (loss) on financial instruments, net	$ (700)	0	(695)	0	(3,023)
Loss on initial issuance of convertible debt and warrant issuance to Yorkville
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Gain (loss) on financial instruments, net		(1,700)	0	(1,700)	0
Convertible debt
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Gain (loss) on financial instruments, net		225	0	225	0
Warrants liability
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Gain (loss) on financial instruments, net		710	214	708	1,699
Prepaid forward liability
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Gain (loss) on financial instruments, net		14	19	14	(73)
Derivative liability
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Gain (loss) on financial instruments, net		0	163	0	1,581
Related party, with a readily determinable fair value
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Gain (loss) on financial instruments, net		(173)	(41,824)	(538)	(41,824)
Other, without a readily determinable fair value | Without Readily Determinable Fair Value
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Gain (loss) on financial instruments, net		$ 0	$ 0	$ (59)	$ (158)

XML

Fair Value Measures - Fair Value Measurement Inputs and Valuation Techniques (Details) $ in Thousands	Sep. 30, 2024 USD ($)	Jun. 30, 2024 USD ($)	Mar. 31, 2024 USD ($)	Sep. 30, 2023 USD ($)	Jun. 30, 2023 USD ($)	Mar. 31, 2023 USD ($)
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Fair Value	$ 1,969	$ 1,943	$ 1,964	$ 2,079	$ 2,183	$ 2,078
Level 3
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Fair Value	$ 1,969		$ 1,964
Level 3 | Minimum | Enterprise value-to-revenue multiple | Market Approach
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Unobservable Inputs	0.2		0.2
Level 3 | Maximum | Enterprise value-to-revenue multiple | Market Approach
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Unobservable Inputs	18.9		18.9
Level 3 | Weighted Average | Enterprise value-to-revenue multiple | Market Approach
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Unobservable Inputs	1.80		1.77

XML

Fair Value Measurements - Reconciliation of Level 3 Investments, Asset (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning balance	$ 1,943	$ 2,183	$ 1,964	$ 2,078
Gains (losses) recognized in accumulated other comprehensive income (loss)	26	(104)	5	1
Ending balance	$ 1,969	$ 2,079	$ 1,969	$ 2,079

XML

Fair Value Measurements - Change in the Fair Value of the Convertible Debentures (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning balance		$ 2,095		$ 3,513
Ending balance		1,932		1,932
Convertible debt
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning balance	$ 0	0	$ 0	0
Addition during the period	2,160	0	2,160	0
Change in fair value during the period	(224)	0	(224)	0
Ending balance	$ 1,936	$ 0	$ 1,936	$ 0

XML

Fair Value Measurements - Reconciliation of Level 3 Investments, Liability (Details) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Sep. 30, 2023	Sep. 30, 2023
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning balance	$ 2,095	$ 3,513
(Gains) losses recognized in earnings	$ (163)	$ (1,581)
Fair Value, Liability, Recurring Basis, Unobservable Input Reconciliation, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration]	Loss on financial instruments, net (related party of $(173), $(41,960), $(538) and $(45,526), respectively)	Loss on financial instruments, net (related party of $(173), $(41,960), $(538) and $(45,526), respectively)
Ending balance	$ 1,932	$ 1,932

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Fair Value Measurements - Goodwill (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Goodwill [Roll Forward]
Beginning balance			$ 13,606
Impairment	$ (298)	$ (306,684)	(3,692)	$ (1,402,989)
Ending balance	9,914		9,914
Ben Liquidity
Goodwill [Roll Forward]
Beginning balance			0
Impairment			0
Ending balance	0		0
Ben Custody
Goodwill [Roll Forward]
Beginning balance			10,896
Impairment			(3,427)
Ending balance	7,469		7,469
Ben Insurance
Goodwill [Roll Forward]
Beginning balance			0
Impairment			0
Ending balance	0		0
Ben Markets
Goodwill [Roll Forward]
Beginning balance			2,710
Impairment			(265)
Ending balance	$ 2,445		$ 2,445

XML

Fair Value Measurements - Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Mar. 31, 2024
Level 1 | Carrying Amount
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Cash and cash equivalents	$ 4,482	$ 7,913
Restricted cash	314	64
Accounts payable and accrued expenses	112,494	157,157
Level 1 | Estimated Fair Value
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Cash and cash equivalents	4,482	7,913
Restricted cash	314	64
Accounts payable and accrued expenses	112,494	157,157
Level 2 | Carrying Amount
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Debt due to related parties, net	122,117	120,505
Level 2 | Estimated Fair Value
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Debt due to related parties, net	$ 138,919	$ 129,327

XML

Debt - Customer ExAlt Trust Loan Payable (Details) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023	Oct. 18, 2023	Mar. 24, 2022	Dec. 07, 2021
Debt Instrument [Line Items]
Loan receivable fair value					$ 72,500
Proceeds from transfer of loan					$ 72,500
Loan payable, fair value disclosure		$ 56,700
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration]	Loss on financial instruments, net (related party of $(173), $(41,960), $(538) and $(45,526), respectively)		Loss on financial instruments, net (related party of $(173), $(41,960), $(538) and $(45,526), respectively)
Amortization of debt discount		$ 99	$ (1,355)
Customer ExAlt Trusts
Debt Instrument [Line Items]
Alternative assets acquired						$ 352,600
Percentage allocated to payable repayment						27.80%
Customer ExAlt Trusts
Debt Instrument [Line Items]
Net gain on derivative liability	$ 200		1,600
Customer ExAlt Trusts | Loans Payable
Debt Instrument [Line Items]
Interest rate		12.00%
Outstanding principal, including interest paid-in-kind				$ 50,900
Maximum rate		21.00%
Amortization of debt discount	$ 200		$ 500

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Debt - Convertible Debentures (Details) $ / shares in Units, $ in Thousands			3 Months Ended		6 Months Ended
	Aug. 14, 2024 USD ($) shares	Aug. 06, 2024 USD ($) $ / shares shares	Sep. 30, 2024 USD ($) $ / shares	Sep. 30, 2023 USD ($)	Sep. 30, 2024 USD ($) $ / shares	Sep. 30, 2023 USD ($)	Mar. 31, 2024 USD ($)	Jun. 07, 2023 shares
Debt Instrument [Line Items]
Securities exercisable (in shares) | shares		1,325,382
Gain (loss) on financial instruments			$ (179)	$ (42,775)	$ (1,362)	$ (46,236)
Convertible debt			1,936		1,936		$ 0
Fair value			$ 784		$ 784		$ 178
Measurement Input, Expected Term
Debt Instrument [Line Items]
Debt instrument, measurement input			4.2		4.2
Measurement Input, Risk Free Interest Rate
Debt Instrument [Line Items]
Debt instrument, measurement input			4.6		4.6
Loss on initial issuance of convertible debt and warrant issuance to Yorkville
Debt Instrument [Line Items]
Gain (loss) on financial instruments			$ (1,700)	$ 0	$ (1,700)	$ 0
Class A common stock
Debt Instrument [Line Items]
Securities exercisable (in shares) | shares	662,691	1,325,382
Warrant exercise price (in dollars per share) | $ / shares		$ 2.63
Warrant Agreement Member | Yorkville Warrants Member
Debt Instrument [Line Items]
Fair value			$ 1,300		$ 1,300
Warrant Agreement Member | Yorkville Warrants Member | Measurement Input, Expected Term
Debt Instrument [Line Items]
Debt instrument, measurement input			3.0		3.0
Warrant Agreement Member | Yorkville Warrants Member | Measurement Input, Share Price
Debt Instrument [Line Items]
Debt instrument, measurement input | $ / shares			2.63		2.63
Warrant Agreement Member | Yorkville Warrants Member | Measurement Input, Exercise Price
Debt Instrument [Line Items]
Debt instrument, measurement input | $ / shares			2.63		2.63
Warrant Agreement Member | Yorkville Warrants Member | Measurement Input, Price Volatility
Debt Instrument [Line Items]
Debt instrument, measurement input			1.302		1.302
Warrant Agreement Member | Yorkville Warrants Member | Measurement Input, Expected Dividend Rate
Debt Instrument [Line Items]
Debt instrument, measurement input			0		0
Warrant Agreement Member | Yorkville Warrants Member | Measurement Input, Risk Free Interest Rate
Debt Instrument [Line Items]
Debt instrument, measurement input			3.58		3.58
Class A common stock
Debt Instrument [Line Items]
Securities exercisable (in shares) | shares								1
Convertible debt
Debt Instrument [Line Items]
Securities exercisable (in shares) | shares		1,325,382
Convertible debt | Class A common stock
Debt Instrument [Line Items]
Debt instrument, convertible, conversion price (in dollar per shares) | $ / shares		$ 3.018
Securities Purchase Agreement | Convertible debt
Debt Instrument [Line Items]
Aggregate principal amount		$ 4,000
Conversion amount	$ 2,000	$ 2,000
Original issue discount		10.00%
Potential interest rate of debt		0.180
Debt conversion, converted instrument, monthly cash payments of principal		$ 1,300
Debt conversion, converted instrument, threshold consecutive trading days		10 days
Debt instrument, redemption premium percentage		10.00%
First Closing | Convertible debt
Debt Instrument [Line Items]
Proceeds from purchase agreement		$ 1,800
Additional agree principal amount		$ 2,000

XML

Debt Due to Related Parties - Schedule of Debt (Details) - Beneficent Capital Company - USD ($) $ in Thousands	Sep. 30, 2024	Mar. 31, 2024
HCLP Nominees, L.L.C
Debt Instrument [Line Items]
Unamortized debt discount, net	$ (836)	$ (935)
Related Party
Debt Instrument [Line Items]
Total debt due to related parties	122,117	120,505
First Lien Credit Agreement | HCLP Nominees, L.L.C | HCLP Nominees, L.L.C
Debt Instrument [Line Items]
Debt due to related parties, gross	21,260	21,264
Second Lien Credit Agreement | HCLP Nominees, L.L.C | HCLP Nominees, L.L.C
Debt Instrument [Line Items]
Debt due to related parties, gross	72,983	72,996
Term Loan | Related Party
Debt Instrument [Line Items]
Debt due to related parties, gross	26,475	25,000
Other borrowings | Related Party
Debt Instrument [Line Items]
Debt due to related parties, gross	$ 2,235	$ 2,180

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Debt Due to Related Parties - First and Second Lien Credit Agreements (Details) - USD ($)			6 Months Ended		12 Months Ended
	Jul. 12, 2023	Mar. 24, 2022	Sep. 30, 2024	Sep. 30, 2023	Mar. 31, 2024	Aug. 13, 2020
HCLP Nominees, L.L.C
Debt Instrument [Line Items]
Additional debt or borrowings						$ 10,000,000
Beneficient Holdings, Inc.
Debt Instrument [Line Items]
Percentage of preferred units						5.00%
Grant tax liability						$ 30,000,000
Put liability			$ 0		$ 0
First and Second Lien Credit Agreement
Debt Instrument [Line Items]
Installment payments	$ 5,000,000
Interest rate	9.50%
Debt instrument, increase, accrued interest			14,100,000		9,500,000
Amendment fee	$ 100,000
Payment of deferred financing costs for debt			0	$ 0
Unamortized premium			$ 400,000		$ 500,000
First and Second Lien Credit Agreement | Beneficent Capital Company | HCLP Nominees, L.L.C
Debt Instrument [Line Items]
Installment payments		$ 5,000,000
Fee percentage		6.50%

XML

Debt Due to Related Parties - Term Loan (Details) - USD ($) $ in Thousands								6 Months Ended
	Dec. 31, 2024	Dec. 07, 2024	Nov. 07, 2024	Oct. 07, 2024	Sep. 07, 2024	Aug. 16, 2024	Oct. 19, 2023	Sep. 30, 2024	Oct. 19, 2026	Oct. 19, 2025	Mar. 31, 2024
Custody Trust
Debt Instrument [Line Items]
Percentage of assets held in trust								39.10%			41.50%
Forecast | Custody Trust
Debt Instrument [Line Items]
Ownership interest										97.50%
HH-BDH
Debt Instrument [Line Items]
Unamortized debt discount								$ (1,200)			$ (1,500)
HH-BDH | Term Loan
Debt Instrument [Line Items]
Debt term							3 years
Term loan						$ 1,700	$ 25,000
Debt service coverage ratio								2.00
Minimum Liquidity								$ 4,000
HH-BDH | Term Loan | Non-Refundable Fee of Aggregate Commitments
Debt Instrument [Line Items]
Fee percentage							1.00%
HH-BDH | Term Loan | Interest Payment Rate, First Period
Debt Instrument [Line Items]
Fee percentage							3.00%
HH-BDH | Term Loan | Interest Payment Rate, Second Period
Debt Instrument [Line Items]
Fee percentage							2.00%
HH-BDH | Term Loan | Make Whole Payment, Interest Rate
Debt Instrument [Line Items]
Fee percentage							3.00%
HH-BDH | Term Loan | Forecast
Debt Instrument [Line Items]
Interest rate									5.50%	6.50%
Amended Credit Agreement | Line of Credit
Debt Instrument [Line Items]
Repayments of outstanding principal balance					$ 200
Line of credit facility, required payment of minus						$ 500
Amended Credit Agreement | Line of Credit | Forecast
Debt Instrument [Line Items]
Repayments of outstanding principal balance	$ 875	$ 200
Amended Credit Agreement | Line of Credit | Subsequent Event
Debt Instrument [Line Items]
Repayments of outstanding principal balance			$ 200	$ 200

XML

Debt Due to Related Parties - Maturities of Long-term Debt (Details) $ in Thousands	Sep. 30, 2024 USD ($)
Debt Disclosure [Abstract]
2025	$ 23,495
2026	0
2027	26,475
2028	72,983
2029	$ 0

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Share-based Compensation - Narrative (Details)				1 Months Ended			3 Months Ended			6 Months Ended
	Apr. 18, 2024	Jun. 06, 2023 shares	Jun. 10, 2022 USD ($)	Sep. 30, 2024 USD ($) $ / shares shares	Apr. 30, 2024	Jun. 30, 2023 USD ($)	Sep. 30, 2024 USD ($) $ / shares shares	Sep. 30, 2023 USD ($)	Dec. 31, 2020 shares	Sep. 30, 2024 USD ($) shares	Sep. 30, 2023 USD ($)	Dec. 31, 2021 USD ($)	Sep. 30, 2018 shares
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Stock split conversion ratio	0.0125				0.0125
Compensation expense							$ 3,364,000	$ 8,503,000		$ 4,358,000	$ 35,504,000
Unrecognized compensation costs				$ 5,083,000			5,083,000			5,083,000
Ben Liquidity
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Compensation expense											2,600,000
REUs
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Compensation expense							3,179,000	7,318,000		4,011,000	16,041,000
Unrecognized compensation costs				$ 4,483,000			4,483,000			4,483,000
Preferred equity
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Compensation expense							$ 0	286,000		$ 0	572,000
Account balance												$ 5,700,000
Preferred equity | Director
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Account balance												$ 3,800,000
Purchase price			$ 3,800,000
BMP Equity Incentive Plan
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Number of shares authorized for issuance (in shares) | shares				119,000,000			119,000,000			119,000,000
Vesting period										4 years
Ben Equity Incentive Plan | REUs
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Number of shares authorized for issuance (in shares) | shares													160,141
Shares reserved for issuance, as a percentage of fully diluted common units outstanding				15.00%			15.00%			15.00%
Awards settleable ratio				1.25			1.25			1.25
Ben Equity Incentive Plan | REUs | Director
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Units granted (in shares) | shares									6,438
Compensation expense						$ 5,200,000	$ 0	$ 300,000		$ 300,000	$ 5,500,000
Increase in units granted rate		1.25
Increase in units granted (in shares) | shares		1,610
2023 Incentive Plan | Director
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Vesting period							2 years
Stock options granted (in shares) | shares							100,000
Weighted average exercise price (in dollars per share) | $ / shares							$ 1.23
2023 Incentive Plan | Restricted Stock Units
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Shares reserved for issuance, as a percentage of fully diluted common units outstanding				15.00%			15.00%			15.00%
Units granted (in shares) | shares							817,619
Percentage of common units										15.00%
Weighted average grant date fair value amount				$ 2,400,000			$ 2,400,000			$ 2,400,000
2023 Incentive Plan | Restricted Stock Units | Director
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Vesting period				1 year
Units granted (in shares) | shares				138,212
Grant date fair value (in dollars per share) | $ / shares				$ 0.97

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Share-based Compensation - Equity-Based Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended			6 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Jun. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Total share-based compensation	$ 3,364	$ 8,503		$ 4,358	$ 35,504
Conversion of BCG Common Class A Units
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Total share-based compensation			$ 15,000		15,000
Ben Liquidity
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Total share-based compensation					2,600
BMP equity units
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Total share-based compensation	144	569		257	1,244
Restricted stock units
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Total share-based compensation	3,179	7,318		4,011	16,041
Preferred equity
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Total share-based compensation	0	286		0	572
Other(1)
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Total share-based compensation	$ 41	$ 330		$ 90	$ 17,647

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Share-based Compensation - Future Compensation Expense (Details) $ in Thousands	Sep. 30, 2024 USD ($)
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Six months ending 2025	$ 1,445
2026	2,327
2027	927
2028	384
2029	0
Total	5,083
BMP
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Six months ending 2025	187
2026	225
2027	14
2028	0
2029	0
Total	426
RSU
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Six months ending 2025	1,163
2026	2,023
2027	913
2028	384
2029	0
Total	4,483
Commissions
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Six months ending 2025	95
2026	79
2027	0
2028	0
2029	0
Total	$ 174

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Equity - Common Units (Details)				1 Months Ended	6 Months Ended	12 Months Ended
	Nov. 12, 2024 USD ($)	Apr. 18, 2024	Jun. 27, 2023 USD ($) shares	Apr. 30, 2024	Sep. 30, 2024 USD ($) vote shares	Sep. 30, 2024 USD ($) vote shares
Class of Stock [Line Items]
Stock split conversion ratio		0.0125		0.0125
Standby equity purchase agreement, shares issued (in shares) | shares			5,703
Class A common stock
Class of Stock [Line Items]
Number of votes per share | vote					1	1
Class B
Class of Stock [Line Items]
Number of votes per share | vote					10	10
Standby Equity Purchase Agreement
Class of Stock [Line Items]
Standby equity purchase agreement, sale of stock			$ 250,000,000		$ 2,600,000	$ 3,900,000
Standby equity purchase agreement, expiration period			36 months
Commitment fee			$ 1,300,000
Standby equity purchase agreement, shares issued (in shares) | shares					449,307	498,125
Standby Equity Purchase Agreement | Subsequent Event
Class of Stock [Line Items]
Standby equity purchase agreement, sale of stock	$ 200,100,000
Maximum
Class of Stock [Line Items]
Stock split conversion ratio				0.01
Maximum | Standby Equity Purchase Agreement
Class of Stock [Line Items]
Standby equity purchase agreement, sale of stock			$ 250,000,000

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Equity - Preferred Units (Details) - USD ($) $ / shares in Units, $ in Thousands							3 Months Ended			6 Months Ended		69 Months Ended
	Jan. 01, 2025	Oct. 03, 2023	Jul. 10, 2023	Jun. 08, 2023	Jun. 07, 2023	Jun. 06, 2023	Sep. 30, 2024	Sep. 30, 2023	Jun. 30, 2023	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Mar. 31, 2024
Class of Stock [Line Items]
Preferred stock, shares authorized (in shares)							250,000,000			250,000,000		250,000,000	250,000,000
Preferred stock, par value (in dollars per share)							$ 0.001			$ 0.001		$ 0.001	$ 0.001
Valuation (in dollars per share)						$ 800.00
Potential exchange price (in usd per share)							$ 840			$ 840		$ 840
Number of days preceding exchange date										20 days
Compensation expense							$ 3,364	$ 8,503		$ 4,358	$ 35,504
Conversion of BCG Common Class A Units
Class of Stock [Line Items]
Additional value									$ 15,000
Compensation expense									$ 15,000		$ 15,000
Series A preferred stock
Class of Stock [Line Items]
Preferred stock, shares authorized (in shares)							50,000,000			50,000,000		50,000,000
Preferred stock, shares issued (in shares)				34,962	34,961		0			0		0	0
Preferred stock, shares outstanding (in shares)				34,962			0			0		0	0
Preferred stock, par value (in dollars per share)							$ 0.001			$ 0.001		$ 0.001
Units converted (in shares)					1
Series B Preferred Stock
Class of Stock [Line Items]
Conversion of stock (in shares)		3,768,995
Price per unit (in dollars per share)		$ 218.40
Liquidation preference (in dollars per share)							10.00			$ 10.00		10.00
Calendar days after original issuance date										210 days
Calendar months after original issuance date										60 months
Anniversary of original issuance date										1 year
Class A common stock
Class of Stock [Line Items]
Conversion of stock (in shares)		172,574
Price per unit (in dollars per share)							1.23			$ 1.23		1.23
Valuation (in dollars per share)							$ 10.00			$ 10.00		$ 10.00
Initial conversion price, percentage							50.00%			50.00%		50.00%
Units issuable (in shares)							165,037			165,037		165,037
Annual conversion limit							9.99%			9.99%		9.99%
Units converted (in shares)						17,456
Preferred Series A Subclass 0
Class of Stock [Line Items]
Quarterly guaranteed payment, annual basis							6.00%			6.00%		6.00%
Quarterly guaranteed payment, fiscal quarter basis							1.50%			1.50%		1.50%
Guaranteed payment accrual							$ 46,400			$ 46,400		$ 46,400	$ 37,700
Percentage redeemable							12.50%			12.50%		12.50%
Maximum percentage redeemable							50.00%			50.00%		50.00%
Convertible shares of preferred stock, percentage redeemable							12.50%			12.50%		12.50%
Preferred Series A Subclass 1
Class of Stock [Line Items]
Weighted average preferred return rate							0.00%	0.00%		0.00%	0.46%
Deemed dividend							$ 106,100			$ 106,100		$ 106,100
Limit on indebtedness, capital percent of NAV threshold							55.00%			55.00%		55.00%
Limit on indebtedness, debt percent of NAV threshold							40.00%			40.00%		40.00%
Aggregate capital accounts, converted						$ 193,900
Preferred Series A Subclass 1 | Forecast
Class of Stock [Line Items]
Annual conversion limit	20.00%
Maximum conversion price (in dollars per share)	$ 1,440
Number of days preceding exchange date	30 days
Class S Ordinary
Class of Stock [Line Items]
Conversion of stock (in shares)				5,057
Units issuable (in shares)							402,383			402,383		402,383
Units converted (in shares)						208,861
Common stock exchange ratio							1			1		1
Class B
Class of Stock [Line Items]
Units converted (in shares)						191,405
Common Class A and B
Class of Stock [Line Items]
Common stock exchange ratio							1			1		1
Preferred Series C Subclass 1
Class of Stock [Line Items]
Price per unit (in dollars per share)			$ 372.80
Units converted (in shares)			550,510
Trading days			20 days
Class S Preferred
Class of Stock [Line Items]
Preferred stock exchange ratio							1.2			1.2		1.2
Preferred return earned												$ 200
Series B preferred stock
Class of Stock [Line Items]
Preferred stock, shares authorized (in shares)							4,000,000			4,000,000		4,000,000
Preferred stock, shares issued (in shares)							226,932			226,932		226,932	226,932
Preferred stock, shares outstanding (in shares)							226,932			226,932		226,932	226,932
Preferred stock, par value (in dollars per share)							$ 0.001			$ 0.001		$ 0.001
Annual conversion limit							4.99%			4.99%		4.99%
Series B preferred stock | Minimum
Class of Stock [Line Items]
Conversion price (in dollars per share)							$ 5.38			$ 5.38		$ 5.38
Series B preferred stock | Maximum
Class of Stock [Line Items]
Conversion price (in dollars per share)							$ 436.80			$ 436.80		$ 436.80
Preferred Series B Subclass 2
Class of Stock [Line Items]
Conversion of stock (in shares)		200,000
Preferred Series B Subclass 3
Class of Stock [Line Items]
Conversion of stock (in shares)		20,000
Preferred Series B Subclass 4
Class of Stock [Line Items]
Conversion of stock (in shares)		6,932

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Equity - Redeemable Noncontrolling Interests (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended	6 Months Ended
	Sep. 30, 2024	Sep. 30, 2024	Sep. 30, 2023	Mar. 31, 2024
Redeemable Noncontrolling Interest [Line Items]
Potential exchange price (in usd per share)	$ 840	$ 840
Number of days preceding exchange date		20 days
Reclassifications of temporary to permanent equity	$ (125,526)	$ 125,526	$ 699,441
Preferred Series A Subclass 0
Redeemable Noncontrolling Interest [Line Items]
Quarterly guaranteed payment, annual basis	6.00%	6.00%
Quarterly guaranteed payment, fiscal quarter basis	1.50%	1.50%
Guaranteed payment accrual	$ 46,400	$ 46,400		$ 37,700
Percentage redeemable	12.50%	12.50%
Maximum percentage redeemable	50.00%	50.00%
Convertible shares of preferred stock, percentage redeemable	12.50%	12.50%
Redemption of preferred stock, maximum percentage of capital account balance non redeemable	50.00%	50.00%
Reclassifications of temporary to permanent equity		$ 125,500

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Equity - Noncontrolling Interests (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Noncontrolling Interests
Beginning balance	$ (148,290)	$ 1,280,947	$ (192,118)	$ 1,728,413
Net loss	9,747	(381,764)	54,057	(1,537,734)
Issuance of shares	673		673	(4,290)
Reclass of distributions payable to noncontrolling interest holder		(238)		(567)
Deemed dividend for BCG Preferred B.2 Unit Accounts preferred return				0
Reclass of BCH Preferred A.0 from temporary to permanent equity	(125,526)		125,526	699,441
Ending balance	(13,192)	932,259	(13,192)	932,259
Recent Financings
Noncontrolling Interests
Issuance of shares		3,410	2,555	8,696
BCH Class S Ordinary
Noncontrolling Interests
Conversion of stock				0
BCH Preferred Series C
Noncontrolling Interests
Conversion of stock		0		0
Series B Preferred Stock | Recent Financings
Noncontrolling Interests
Issuance of shares		37,649		37,649
Noncontrolling interests (Note 10)
Noncontrolling Interests
Beginning balance	34,293	786,080	42,231	142,213
Net loss	(7,590)	(14,196)	(15,303)	(58,748)
Issuance of shares		79		79
Reclass of distributions payable to noncontrolling interest holder	(122)	(238)	(347)	(567)
Conversion of stock		(205,759)		(205,759)
Deemed dividend for BCG Preferred B.2 Unit Accounts preferred return				(6,942)
Reclass of BCH Preferred A.0 from temporary to permanent equity	125,526		125,526	699,441
Ending balance	152,107	563,636	152,107	563,636
Noncontrolling interests (Note 10) | Reduction of Noncontrolling Interests
Noncontrolling Interests
Issuance of shares		(3,272)		(3,272)
Noncontrolling interests (Note 10) | Recent Financings
Noncontrolling Interests
Issuance of shares		(3,193)		(3,060)
Noncontrolling interests (Note 10) | Recent Financings, Shares Issued
Noncontrolling Interests
Issuance of shares				133
Noncontrolling interests (Note 10) | Trusts
Noncontrolling Interests
Beginning balance	(166,463)	(132,361)	(165,712)	(118,299)
Net loss	(4,523)	(3,591)	(5,049)	(17,457)
Issuance of shares		79		79
Reclass of distributions payable to noncontrolling interest holder	(122)	(238)	(347)	(567)
Ending balance	(171,108)	(138,441)	(171,108)	(138,441)
Noncontrolling interests (Note 10) | Trusts | Reduction of Noncontrolling Interests
Noncontrolling Interests
Issuance of shares		(3,272)		(3,272)
Noncontrolling interests (Note 10) | Trusts | Recent Financings, Shares Issued
Noncontrolling Interests
Issuance of shares				133
Noncontrolling interests (Note 10) | BCH Class S Ordinary
Noncontrolling Interests
Beginning balance	0	19,311	0	52,560
Net loss		(9,614)		(38,979)
Conversion of stock				(3,884)
Ending balance	0	9,697	0	9,697
Noncontrolling interests (Note 10) | BCH Class S Preferred
Noncontrolling Interests
Beginning balance	0	856	0	856
Ending balance	0	856	0	856
Noncontrolling interests (Note 10) | BCH Preferred Series A.0 Non-Redeemable
Noncontrolling Interests
Beginning balance	0		0
Reclass of BCH Preferred A.0 from temporary to permanent equity	125,526		125,526
Ending balance	125,526		125,526
Noncontrolling interests (Note 10) | BCH Preferred Series A.1
Noncontrolling Interests
Beginning balance	200,756	691,825	207,943	0
Net loss	(3,067)	(570)	(10,254)	(1,244)
Deemed dividend for BCG Preferred B.2 Unit Accounts preferred return				(6,942)
Reclass of BCH Preferred A.0 from temporary to permanent equity				699,441
Ending balance	197,689	691,255	197,689	691,255
Noncontrolling interests (Note 10) | BCH Preferred Series C
Noncontrolling Interests
Beginning balance	0	205,759	0	205,759
Conversion of stock		(205,759)		(205,759)
Ending balance	0	0	0	0
Noncontrolling interests (Note 10) | Class A of CT
Noncontrolling Interests
Beginning balance	0	690	0	1,337
Net loss		(421)		(1,068)
Ending balance	$ 0	269	$ 0	269
Noncontrolling interests (Note 10) | Series B Preferred Stock | Recent Financings
Noncontrolling Interests
Issuance of shares		$ 942		$ 942

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Equity - Class S Ordinary (Details) - Class S Ordinary	Jun. 08, 2023 shares	Sep. 30, 2024 shares	Mar. 31, 2024 shares
Class of Stock [Line Items]
Units issued (in shares)		67,000	67,000
Units outstanding (in shares)		67,000	67,000
Common stock exchange ratio		1
Conversion of stock (in shares)	5,057

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Equity - FLP Units (Details) - USD ($)	3 Months Ended		6 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023	Mar. 31, 2024
Class of Stock [Line Items]
Net income (loss)	$ 9,747,000	$ (381,764,000)	$ 54,057,000	$ (1,537,734,000)
Asset valuation adjustment	321,900,000		321,900,000
Accounts payable and accrued expense	$ 112,494,000		$ 112,494,000		$ 157,157,000
FLP Units Subclass 1
Class of Stock [Line Items]
Allocation percentage	50.50%		50.50%
FLP Units Subclass 2
Class of Stock [Line Items]
Allocation percentage	49.50%		49.50%
FLP Units Subclass 1 and 2
Class of Stock [Line Items]
Profits interest on financing and other tax pass-through businesses	15.00%		15.00%
Net income (loss)	$ 0	0	$ 0	0
Upward carrying value adjustment, percentage of capital accounts	15.00%		15.00%
FLP Units Subclass 1 and 2 | Maximum
Class of Stock [Line Items]
Net service fee revenue interest, EBITDA to revenue ratio	0.50		0.50
FLP Units Subclass 1 and 2 | Minimum
Class of Stock [Line Items]
Net service fee revenue interest, EBITDA to revenue ratio	0.20		0.20
Class S Ordinary
Class of Stock [Line Items]
Units issuable (in shares)	402,383		402,383
BCH Class S ordinary units (in units)	260,000		260,000
FLP Units Subclass 3
Class of Stock [Line Items]
Net income (loss)	$ 0	$ 0	$ 0	$ 0
Net financing revenues, quarterly percentage	5.00%		5.00%
Net financing revenues allocated, annualized stated interest percentage	10.00%		10.00%
Tax and distributions, percentage of profits allocated	100.00%		100.00%
Accounts payable and accrued expense	$ 900,000		$ 900,000		$ 900,000

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Equity - Beneficiaries Customer ExAlt Trusts (Details) - Charitable Beneficiaries - USD ($)	3 Months Ended		6 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Class of Stock [Line Items]
Percentage of distributions entitled to residual beneficiary, distributions received			2.50%
Percent of distributions entitled to residual beneficiary, payments on amounts due			5.00%
Percent of distributions entitled to residual beneficiary, amount of excess cash collateral			10.00%
Issuance of shares in connection with recent financings	$ 0	$ 1,000,000.0	$ 0	$ 1,200,000

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Equity - Class A of CT Risk Management, L.L.C. (Details) - Class A of CT $ in Millions	6 Months Ended
	Sep. 30, 2024 USD ($)
Class of Stock [Line Items]
Minority interest sold	$ 2.4
Percent of distributions entitled to residual beneficiary, amount of excess of capital contributions	2.00%

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Net Income (Loss) per Share - Schedule of Basic (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]
Net income (loss)	$ 9,747	$ (381,764)	$ 54,057	$ (1,537,734)
Plus: Net loss attributable to noncontrolling interests - Ben	7,590	14,196	15,303	58,748
Less: Noncontrolling interest guaranteed payment	(4,423)	(4,167)	(8,779)	(8,272)
Net income attributable to Beneficient common shareholders - Basic	12,914	(371,735)	60,581	(1,487,258)
Class A
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]
Net income attributable to Beneficient common shareholders - Basic	$ 12,270	$ (344,580)	$ 57,040	$ (1,378,616)
Basic weighted average of common shares outstanding (in shares)	4,122,438	2,971,767	3,910,871	2,645,234
Basic net income (loss) attributable to Beneficient per common share (in dollars per share)	$ 2.98	$ (115.95)	$ 14.58	$ (521.17)
Class B
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]
Net income attributable to Beneficient common shareholders - Basic	$ 644	$ (27,155)	$ 3,541	$ (108,642)
Basic weighted average of common shares outstanding (in shares)	239,256	239,256	239,256	239,256
Basic net income (loss) attributable to Beneficient per common share (in dollars per share)	$ 2.69	$ (113.50)	$ 14.80	$ (454.08)

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Net Income (Loss) per Share - Schedule of Diluted (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items]
Net income attributable to Beneficient common shareholders - Basic	$ 12,914	$ (371,735)	$ 60,581	$ (1,487,258)
Plus: Net loss attributable to noncontrolling interests	(7,590)	(14,196)	(15,303)	(58,748)
Plus: Noncontrolling interest guaranteed payment	4,423	4,167	8,779	8,272
Net income attributable to Beneficient common shareholders - Diluted	14,270		59,106
Consolidated Entity, Excluding Consolidated VIE
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items]
Plus: Net loss attributable to noncontrolling interests	$ (3,067)	$ (10,604)	$ (10,254)	$ (41,290)
Series B Preferred Stock
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items]
Dilutive effect (in shares)	165,036		165,036
Class S Ordinary
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items]
Dilutive effect (in shares)	66,982		66,982
Class S Preferred
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items]
Dilutive effect (in shares)	605		605
Preferred Series A Subclass 0
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items]
Dilutive effect (in shares)	102,832,018		77,582,588
Preferred Series A Subclass 1
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items]
Dilutive effect (in shares)	330,926,963		249,670,975
Restricted Stock Units
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items]
Dilutive effect (in shares)	561,766		296,608
Common Class A and B
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items]
Basic weighted average of common shares outstanding (Class A and Class B) (in shares)	4,361,694		4,150,127
Diluted weighted average of common shares outstanding (Class A and Class B) (in shares)	438,915,064		331,932,921
Diluted weighted average of common shares outstanding (Class A and Class B) (in dollars per share)	$ 0.03		$ 0.18

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Net Income (Loss) per Share -Narrative (Details) - $ / shares				3 Months Ended		6 Months Ended
	Oct. 03, 2023	Jul. 10, 2023	Jun. 06, 2023	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Subsequent Event [Line Items]
Total anti-dilutive shares				31,788,755	412,550,601	31,395,092	168,595,329
Preferred Series C Subclass 1
Subsequent Event [Line Items]
Total anti-dilutive shares				0	29,919	0	151,917
Class S Ordinary
Subsequent Event [Line Items]
Total anti-dilutive shares				0	66,982	0	67,936
Class S Preferred
Subsequent Event [Line Items]
Total anti-dilutive shares				0	605	0	605
Preferred Series A Subclass 0
Subsequent Event [Line Items]
Total anti-dilutive shares				0	90,445,956	0	32,916,204
Preferred Series A Subclass 1
Subsequent Event [Line Items]
Total anti-dilutive shares				0	291,066,987	0	110,618,486
Restricted Stock Units
Subsequent Event [Line Items]
Total anti-dilutive shares				121,721	127,742	122,098	123,536
Class A
Subsequent Event [Line Items]
Net income (loss) per common share - basic (in dollars per share)				$ 2.98	$ (115.95)	$ 14.58	$ (521.17)
Net income (loss) per common share - diluted (in dollars per share)				0.03	$ (115.95)	0.18	$ (521.17)
Units converted (in shares)			17,456
Price per unit (in dollars per share)				$ 1.23		$ 1.23
Conversion of stock (in shares)	172,574
Basic weighted average of common shares outstanding (in shares)				4,122,438	2,971,767	3,910,871	2,645,234
Class B
Subsequent Event [Line Items]
Net income (loss) per common share - basic (in dollars per share)				$ 2.69	$ (113.50)	$ 14.80	$ (454.08)
Net income (loss) per common share - diluted (in dollars per share)				$ 0.03	$ (113.50)	$ 0.18	$ (454.08)
Units converted (in shares)			191,405
Basic weighted average of common shares outstanding (in shares)				239,256	239,256	239,256	239,256
Preferred Series C Subclass 1
Subsequent Event [Line Items]
Units converted (in shares)		550,510
Price per unit (in dollars per share)		$ 372.80
Trading day duration period		20 days
Series B Preferred Stock
Subsequent Event [Line Items]
Price per unit (in dollars per share)	$ 218.40
Conversion of stock (in shares)	3,768,995

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Net Income (Loss) per Share - Antidilutive Securities (Details) - shares	3 Months Ended		6 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total anti-dilutive shares	31,788,755	412,550,601	31,395,092	168,595,329
Class S Ordinary
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total anti-dilutive shares	0	66,982	0	67,936
Class S Preferred
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total anti-dilutive shares	0	605	0	605
Preferred Series A Subclass 0
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total anti-dilutive shares	0	90,445,956	0	32,916,204
Preferred Series A Subclass 1
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total anti-dilutive shares	0	291,066,987	0	110,618,486
Preferred Series C Subclass 1
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total anti-dilutive shares	0	29,919	0	151,917
Restricted Stock Units
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total anti-dilutive shares	121,721	127,742	122,098	123,536
Convertible Debt
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total anti-dilutive shares	396,174	0	199,169	0
Warrants
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total anti-dilutive shares	31,270,860	30,669,850	31,073,825	24,708,118

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Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Current expense
Federal	$ 0	$ 0	$ 28	$ 0
Deferred expense
Federal	0	0	0	0
Income tax expense	$ 0	$ 0	$ 28	$ 0

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Related Parties (Details)			1 Months Ended	3 Months Ended		6 Months Ended		12 Months Ended
	Mar. 15, 2024 USD ($)	Jun. 07, 2023 USD ($)	Jan. 31, 2022 USD ($)	Sep. 30, 2024 USD ($) trust baseFeeMultiplier shares	Sep. 30, 2023 USD ($)	Sep. 30, 2024 USD ($) trust baseFeeMultiplier shares	Sep. 30, 2023 USD ($)	Mar. 31, 2024 USD ($) shares	Dec. 31, 2022	Oct. 19, 2023 USD ($) shares	Jan. 20, 2022 director resident
Related Party Transaction [Line Items]
Other expenses				$ 2,790,000	$ 5,150,000	$ 5,871,000	$ 12,092,000
Accounts payable and accrued expense				112,494,000		112,494,000		$ 157,157,000
Total expenses				22,276,000	339,003,000	(12,016,000)	1,492,230,000
Other liabilities (related party of $14,306 and $9,740)				19,123,000		19,123,000		31,727,000
Other assets, net				15,991,000		$ 15,991,000		14,699,000
Preferred Series A Subclass 0
Related Party Transaction [Line Items]
Debt due to related parties										$ 15,300,000
Preferred Series A Subclass 1
Related Party Transaction [Line Items]
Debt due to related parties										$ 48,100,000
Class S Preferred
Related Party Transaction [Line Items]
Shares held (in shares) | shares										1
Class S Ordinary
Related Party Transaction [Line Items]
Shares held (in shares) | shares										3,640
Highland Consolidated, L.P.
Related Party Transaction [Line Items]
Agreement term						26 years
Outstanding loan balance				$ 10,800,000		$ 10,800,000		$ 11,500,000
Hicks Holdings L.L.C | Class B
Related Party Transaction [Line Items]
Shares held (in shares) | shares				16,528		16,528		16,528
Services Agreement
Related Party Transaction [Line Items]
Related party fee				$ 400,000		$ 1,600,000
Hicks Holdings L.L.C
Related Party Transaction [Line Items]
Accounts payable and accrued expense				$ 300,000		$ 300,000		$ 0
Consulting Agreement
Related Party Transaction [Line Items]
Renewal provision term								1 year
Agreement term								1 year
Beneficient Management Counselors, L.L.C.
Related Party Transaction [Line Items]
Percentage of board of directors, pre-decoupling				49.00%		49.00%
Percentage of members on management committee to select				50.00%		50.00%
Percentage of members on community committee to select				50.00%		50.00%
Bradley Capital Company, L.L.C.
Related Party Transaction [Line Items]
Accounts payable and accrued expense				$ 3,100,000		$ 3,100,000		$ 2,700,000
Bradley Capital Company, L.L.C. | Services Agreement, Base Fee
Related Party Transaction [Line Items]
Related party fee		$ 500,000				$ 400,000
Base fee multiplier | baseFeeMultiplier				2		2
Bradley Capital Company, L.L.C. | Services Agreement, Supplemental Fee
Related Party Transaction [Line Items]
Related party fee		$ 200,000				$ 200,000
Bradley Capital Company, L.L.C. | Services Agreement
Related Party Transaction [Line Items]
Costs for retired/departed employees						$ 200,000
Renewal provision term						1 year			1 year
Minimum value of securities held				$ 10,000,000		$ 10,000,000
Percentage of aggregate fair market value of ben				1.00%		1.00%
Other expenses				$ 700,000	700,000	$ 1,400,000	1,400,000
Related party transaction, accrued reimbursements				0		0		700,000
Bradley Capital Company, L.L.C. | Services Agreement | CEO and Chairman
Related Party Transaction [Line Items]
Annual salary						200,000
Bradley Capital Company, L.L.C. | Services Agreement, Legal Fees
Related Party Transaction [Line Items]
Related party fee				1,400,000	1,200,000	2,600,000	2,300,000
Bradley Capital Company, L.L.C. | Aircraft Sublease
Related Party Transaction [Line Items]
Related party fee						1,400,000
Accounts payable and accrued expense				10,800,000		$ 10,800,000		10,800,000
Agreement term						1 year
Related party transaction, termination period						3 years
Total expenses					1,400,000		2,900,000
Beneficient Holdings, Inc.
Related Party Transaction [Line Items]
Related party fee						$ 30,000
Beneficient Holdings, Inc. | Minimum
Related Party Transaction [Line Items]
Agreement term						5 years
Beneficient Holdings, Inc. | Maximum
Related Party Transaction [Line Items]
Agreement term						7 years
Beneficient Holdings, Inc. | Contribution Agreement
Related Party Transaction [Line Items]
Maximum costs per year						$ 250,000
HCLP Nominees, L.L.C | Indemnification Obligation, Legal Fees
Related Party Transaction [Line Items]
Related party fee				500,000	500,000	1,000,000	600,000
RROC
Related Party Transaction [Line Items]
Related party fee				$ 0	0	$ 0	0
Number of trusts | trust				3		3
Debt due to related parties, gross				$ 2,200,000		$ 2,200,000		2,200,000
Beneficient Heartland Foundation
Related Party Transaction [Line Items]
Number of board of directors | director											8
Population maximum | resident											5,000
Number of board of directors allowed to appoint | director											11
Number of board of directors appointed by counterparty | director											2
Beneficient Heartland Foundation | Benficient Heartland Foundation Initial Charitable Initiative
Related Party Transaction [Line Items]
Related party fee			$ 15,400,000
Beneficient Heartland Foundation | Charitable Contribution, Benefit for Development Projects and Promotion and Growth of Industry
Related Party Transaction [Line Items]
Related party fee			2,700,000
Beneficient Heartland Foundation | Charitable Contribution, Benefit of Public Charities Dedicated to Economic Development
Related Party Transaction [Line Items]
Related party fee			200,000
Beneficient Heartland Foundation | Charitable Contribution, Indirect Beneficiaries
Related Party Transaction [Line Items]
Related party fee			$ 12,500,000
Beneficient Heartland Foundation, Community Leaders
Related Party Transaction [Line Items]
Number of board of directors | director											6
Beneficient Heartland Foundation, Ben Employees/Individuals
Related Party Transaction [Line Items]
Number of board of directors | director											2
Kansas TEFFI Economic Growth Trust
Related Party Transaction [Line Items]
Related party fee				100,000	300,000	300,000	700,000
Other liabilities (related party of $14,306 and $9,740)				0		0		100,000
Other assets, net				1,400,000		1,400,000		1,400,000
Repayment of notes receivable from related parties				$ 200,000
Promissory note extended period				2 years
Hicks Holdings L.L.C
Related Party Transaction [Line Items]
Debt due to related parties				$ 26,600,000		$ 26,600,000		27,500,000
Hicks Holdings L.L.C | Class A common stock
Related Party Transaction [Line Items]
Shares purchased (in shares) | shares				100,000
Value of shares purchased				$ 200,000
GWG Holdings | Shared Services Agreement
Related Party Transaction [Line Items]
Renewal provision term						1 year
Agreement term						1 year
Cash received from related parties					$ 100,000		$ 1,400,000
Thomas O. Hicks | Consulting Agreement | Board Member
Related Party Transaction [Line Items]
Annual salary								150,000
Bruce W. Schnitzer | Consulting Agreement | Board Member
Related Party Transaction [Line Items]
Annual salary								150,000
Richard W. Fisher | Consulting Agreement
Related Party Transaction [Line Items]
Related party fee	$ 50,000
Richard W. Fisher | Consulting Agreement | Board Member
Related Party Transaction [Line Items]
Annual salary								$ 150,000
Peter T. Cangany, Jr. | Subscription Agreements | Director
Related Party Transaction [Line Items]
Shares purchased (in shares) | shares				262,500
Value of shares purchased				$ 500,000

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Variable Interest Entities - Narrative (Details) - USD ($)	1 Months Ended	3 Months Ended		6 Months Ended
	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023	Mar. 31, 2024
Variable Interest Entity [Line Items]
Total assets		$ 368,788,000		$ 368,788,000		$ 368,501,000
Gain (loss) on financial instruments		(179,000)	$ (42,775,000)	(1,362,000)	$ (46,236,000)
Put options
Variable Interest Entity [Line Items]
Gain (loss) on financial instruments	$ (700,000)	0	(695,000)	0	(3,023,000)
Ben | Put options
Variable Interest Entity [Line Items]
Gain (loss) on financial instruments			(300,000)		(2,000,000.0)
Variable Interest Entity, Primary Beneficiary | CT Risk Management, L.L.C.
Variable Interest Entity [Line Items]
Total assets		$ 0		$ 0		$ 0
Gain (loss) on financial instruments			$ (700,000)		$ (3,000,000.0)

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Variable Interest Entities - VIE Financials (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023	Jun. 30, 2024	Mar. 31, 2024	Jun. 30, 2023	Mar. 31, 2023
Assets:
Cash and cash equivalents	$ 4,482		$ 4,482			$ 7,913
Restricted cash	314		314			64
Investments, at fair value	334,987		334,987			329,119
Other assets	15,991		15,991			14,699
Total Assets of VIEs	368,788		368,788			368,501
Liabilities:
Accounts payable and accrued expense	112,494		112,494			157,157
Other liabilities	19,123		19,123			31,727
Total Liabilities of VIEs	256,454		256,454			309,567
Equity:
Treasury stock	(3,444)		(3,444)			(3,444)
Noncontrolling interests	152,107		152,107			42,231
Accumulated other comprehensive income	281		281			276
Total Equity of VIEs	(13,192)	$ 932,259	(13,192)	$ 932,259	$ (148,290)	(192,118)	$ 1,280,947	$ 1,728,413
Revenues
Investment income (loss), net	8,541	(13)	19,569	487
Gain (loss) on financial instruments, net	(179)	(42,775)	(1,362)	(46,236)
Interest and dividend income	12	114	24	230
Total revenues	8,561	(42,761)	18,607	(45,504)
Operating expenses
Interest expense	4,320	5,114	8,608	8,898
Provision for credit losses	476	0	1,000	0
Professional services	7,257	6,657	12,801	17,030
Other expenses	2,790	5,150	5,871	12,092
Total operating expenses	22,276	339,003	(12,016)	1,492,230
Net income (loss)	9,747	(381,764)	54,057	(1,537,734)
Net loss attributable to noncontrolling interests	(7,590)	(14,196)	(15,303)	(58,748)
Variable Interest Entity, Primary Beneficiary
Assets:
Investments, at fair value	334,987		334,987			329,113
Operating expenses
Net loss attributable to noncontrolling interests	(4,523)	(3,592)	(5,049)	(17,458)
Variable Interest Entity, Primary Beneficiary | Customer ExAlt Trusts
Assets:
Cash and cash equivalents	1,008		1,008			963
Restricted cash	314		314			64
Investments, at fair value	334,987		334,987			329,113
Other assets	32		32			30
Total Assets of VIEs	336,341		336,341			330,170
Liabilities:
Accounts payable and accrued expense	2,316		2,316			1,670
Other liabilities	19		19			109
Total Liabilities of VIEs	2,335		2,335			1,779
Equity:
Treasury stock	(3,444)		(3,444)			(3,444)
Noncontrolling interests	(171,110)		(171,110)			(165,712)
Accumulated other comprehensive income	281		281			276
Total Equity of VIEs	(174,273)		(174,273)			$ (168,880)
Revenues
Investment income (loss), net	8,541	(13)	19,569	487
Gain (loss) on financial instruments, net	572	(41,875)	(603)	(43,679)
Interest and dividend income	0	2	0	10
Total revenues	9,113	(41,886)	18,966	(43,182)
Operating expenses
Interest expense	0	1,794	0	3,668
Provision for credit losses	476	0	998	0
Professional services	571	884	1,193	2,145
Other expenses	189	26	309	383
Total operating expenses	1,236	2,704	2,500	6,196
Net income (loss)	7,877	(44,590)	16,466	(49,378)
Net loss attributable to noncontrolling interests	$ (4,523)	$ (3,592)	$ (5,049)	$ (17,458)

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Segment Reporting (Details) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Sep. 30, 2024 USD ($)	Sep. 30, 2023 USD ($)	Sep. 30, 2024 USD ($) Segment	Sep. 30, 2023 USD ($)	Mar. 31, 2024 USD ($)
Segment Reporting [Abstract]
Reportable segments | Segment			3
Income Statement [Abstract]
Investment income (loss), net	$ 8,541	$ (13)	$ 19,569	$ 487
Gain (loss) on financial instruments, net	(179)	(42,775)	(1,362)	(46,236)
Interest and dividend income	12	114	24	230
Trust services and administration revenues	187	(87)	376	15
Total revenues	8,561	(42,761)	18,607	(45,504)
Employee compensation and benefits	7,135	15,398	10,985	51,221
Interest expense	4,320	5,114	8,608	8,898
Professional services	7,257	6,657	12,801	17,030
Provision for credit losses	476	0	1,000	0
Loss on impairment of goodwill	298	306,684	3,692	1,402,989
Release of loss contingency related to arbitration award	0	0	(54,973)	0	$ (55,000)
Other expenses	2,790	5,150	5,871	12,092
Total operating expenses	22,276	339,003	(12,016)	1,492,230
Operating income (loss)	(13,715)	(381,764)	30,623	(1,537,734)
Statement of Financial Position [Abstract]
Investments, at fair value	334,987		334,987		329,119
Other assets	20,787		20,787		22,676
Goodwill and intangible assets, net	13,014		13,014		16,706
Total assets	368,788		368,788		368,501
Ben Liquidity
Income Statement [Abstract]
Loss on impairment of goodwill			0
Ben Custody
Income Statement [Abstract]
Loss on impairment of goodwill			3,427
Operating Segments | Ben Liquidity
Income Statement [Abstract]
Investment income (loss), net	0	0	0	0
Gain (loss) on financial instruments, net	0	0	0	0
Interest and dividend income	0	0	0	0
Trust services and administration revenues	0	0	0	0
Total revenues	11,978	13,022	22,827	25,028
Employee compensation and benefits	361	1,482	791	3,975
Interest expense	3,163	2,120	6,244	2,878
Professional services	395	264	869	897
Provision for credit losses	0		0
Loss on impairment of goodwill	0	220,212	0	1,121,212
Release of loss contingency related to arbitration award			0
Other expenses	402	533	853	1,187
Total operating expenses	9,073	285,113	20,436	1,200,147
Operating income (loss)	2,905	(272,091)	2,391	(1,175,119)
Statement of Financial Position [Abstract]
Loans to Customer ExAlt Trusts, net	260,686		260,686		256,184
Investments, at fair value	0		0		0
Other assets	1,609		1,609		5,814
Goodwill and intangible assets, net	0		0		0
Total assets	262,295		262,295		261,998
Operating Segments | Ben Custody
Income Statement [Abstract]
Investment income (loss), net	0	0	0	0
Gain (loss) on financial instruments, net	0	0	0	0
Interest and dividend income	0	0	0	0
Trust services and administration revenues	187	8	376	15
Total revenues	5,386	6,490	10,768	13,065
Employee compensation and benefits	542	545	898	1,105
Interest expense	0	0	0	0
Professional services	30	89	426	589
Provision for credit losses	0		0
Loss on impairment of goodwill	298	86,472	3,427	281,777
Release of loss contingency related to arbitration award			0
Other expenses	187	231	401	438
Total operating expenses	1,057	87,337	5,152	283,909
Operating income (loss)	4,329	(80,847)	5,616	(270,844)
Statement of Financial Position [Abstract]
Loans to Customer ExAlt Trusts, net	0		0		0
Investments, at fair value	0		0		0
Other assets	21,909		21,909		20,398
Goodwill and intangible assets, net	7,469		7,469		10,896
Total assets	29,378		29,378		31,294
Operating Segments | Customer ExAlt Trusts
Income Statement [Abstract]
Investment income (loss), net	8,541	(13)	19,569	487
Gain (loss) on financial instruments, net	571	(41,875)	(604)	(43,679)
Interest and dividend income	0	2	0	10
Trust services and administration revenues	0	0	0	0
Total revenues	9,112	(41,886)	18,965	(43,182)
Employee compensation and benefits	0	0	0	0
Interest expense	0	1,794	0	3,668
Professional services	545	884	1,167	2,145
Provision for credit losses	476		998
Loss on impairment of goodwill	0	0	0	0
Release of loss contingency related to arbitration award			0
Other expenses	189	26	309	383
Total operating expenses	40,661	36,389	80,143	73,505
Operating income (loss)	(31,549)	(78,275)	(61,178)	(116,687)
Statement of Financial Position [Abstract]
Loans to Customer ExAlt Trusts, net	0		0		0
Investments, at fair value	334,987		334,987		329,113
Other assets	18,025		18,025		19,467
Goodwill and intangible assets, net	0		0		0
Total assets	353,012		353,012		348,580
Corporate & Other
Income Statement [Abstract]
Investment income (loss), net	0	0	0	0
Gain (loss) on financial instruments, net	(750)	(900)	(758)	(2,557)
Interest and dividend income	12	112	24	220
Trust services and administration revenues	0	(95)	0	0
Total revenues	(738)	(883)	(734)	(2,337)
Employee compensation and benefits	6,232	13,371	9,296	46,141
Interest expense	1,157	1,200	2,364	2,352
Professional services	6,287	5,420	10,339	13,399
Provision for credit losses	0		2
Loss on impairment of goodwill	0	0	265	0
Release of loss contingency related to arbitration award			(54,973)
Other expenses	2,012	4,360	4,308	10,084
Total operating expenses	15,688	24,351	(28,399)	71,976
Operating income (loss)	(16,426)	(25,234)	27,665	(74,313)
Statement of Financial Position [Abstract]
Loans to Customer ExAlt Trusts, net	0		0		0
Investments, at fair value	0		0		6
Other assets	14,392		14,392		12,510
Goodwill and intangible assets, net	5,545		5,545		5,810
Total assets	19,937		19,937		18,326
Consolidating Eliminations
Income Statement [Abstract]
Interest income	11,978	13,022	22,827	25,028
Trust services and administration revenues	5,199	6,482	10,392	13,050
Total revenues	17,177	19,504	33,219	38,078
Interest expense	36,049	29,835	70,848	59,615
Provision for credit losses	4,752	60,502	11,679	69,998
Other expenses	3,402	3,850	6,821	7,694
Total operating expenses	44,203	94,187	89,348	137,307
Operating income (loss)	(27,026)	(74,683)	(56,129)	(99,229)
Statement of Financial Position [Abstract]
Loans to Customer ExAlt Trusts, net	(260,686)		(260,686)		(256,184)
Investments, at fair value	0		0		0
Other assets	(35,148)		(35,148)		(35,513)
Goodwill and intangible assets, net	0		0		0
Total assets	(295,834)		(295,834)		$ (291,697)
Consolidating Eliminations | Ben Liquidity
Income Statement [Abstract]
Interest income	11,978	13,022	22,827	25,028
Trust services and administration revenues	0	0	0	0
Interest expense	0	0	0	0
Provision for credit losses	4,752	60,502	11,679	69,998
Other expenses	0	0	0	0
Consolidating Eliminations | Ben Custody
Income Statement [Abstract]
Interest income	0	0	0	0
Trust services and administration revenues	5,199	6,482	10,392	13,050
Interest expense	0	0	0	0
Provision for credit losses	0	0	0	0
Other expenses	0	0	0	0
Consolidating Eliminations | Customer ExAlt Trusts
Income Statement [Abstract]
Interest income	0	0	0	0
Trust services and administration revenues	0	0	0	0
Interest expense	36,049	29,835	70,848	59,615
Provision for credit losses	0	0	0	0
Other expenses	$ 3,402	$ 3,850	$ 6,821	$ 7,694

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Risks and Uncertainties (Details) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Sep. 30, 2024	Mar. 31, 2024
Concentration Risk [Line Items]
Carrying Value	$ 301,388	$ 293,916
Alternative Investments | Industry Risk
Concentration Risk [Line Items]
Carrying Value	$ 301,388	$ 293,916
Percent of Total	100.00%	100.00%
Alternative Investments | Industry Risk | Food and staples retailing
Concentration Risk [Line Items]
Carrying Value	$ 66,517	$ 41,721
Percent of Total	22.10%	14.20%
Alternative Investments | Industry Risk | Software and services
Concentration Risk [Line Items]
Carrying Value	$ 44,683	$ 42,908
Percent of Total	14.80%	14.60%
Alternative Investments | Industry Risk | Utilities
Concentration Risk [Line Items]
Carrying Value	$ 29,693	$ 28,768
Percent of Total	9.90%	9.80%
Alternative Investments | Industry Risk | Diversified financials
Concentration Risk [Line Items]
Carrying Value	$ 30,222	$ 30,297
Percent of Total	10.00%	10.30%
Alternative Investments | Industry Risk | Energy
Concentration Risk [Line Items]
Carrying Value	$ 17,151	$ 19,930
Percent of Total	5.70%	6.80%
Alternative Investments | Industry Risk | Capital goods
Concentration Risk [Line Items]
Carrying Value	$ 15,733	$ 23,146
Percent of Total	5.20%	7.90%
Alternative Investments | Industry Risk | Health care equipment and services
Concentration Risk [Line Items]
Carrying Value	$ 14,441	$ 16,520
Percent of Total	4.80%	5.60%
Alternative Investments | Industry Risk | Semiconductors and Semiconductor Equipment
Concentration Risk [Line Items]
Carrying Value	$ 14,797	$ 16,144
Percent of Total	4.90%	5.50%
Alternative Investments | Industry Risk | Other(1)
Concentration Risk [Line Items]
Carrying Value	$ 68,151	$ 74,482
Percent of Total	22.60%	25.30%
Net Assets, Geographic Area | Geographic Concentration Risk
Concentration Risk [Line Items]
Carrying Value	$ 301,388	$ 293,916
Percent of Total	100.00%	100.00%
Net Assets, Geographic Area | Geographic Concentration Risk | North America
Concentration Risk [Line Items]
Carrying Value	$ 150,864	$ 164,205
Percent of Total	50.10%	55.90%
Net Assets, Geographic Area | Geographic Concentration Risk | South America
Concentration Risk [Line Items]
Carrying Value	$ 68,166	$ 43,543
Percent of Total	22.60%	14.80%
Net Assets, Geographic Area | Geographic Concentration Risk | Asia
Concentration Risk [Line Items]
Carrying Value	$ 46,342	$ 49,385
Percent of Total	15.40%	16.80%
Net Assets, Geographic Area | Geographic Concentration Risk | Europe
Concentration Risk [Line Items]
Carrying Value	$ 35,337	$ 35,870
Percent of Total	11.70%	12.20%
Net Assets, Geographic Area | Geographic Concentration Risk | Africa
Concentration Risk [Line Items]
Carrying Value	$ 679	$ 913
Percent of Total	0.20%	0.30%

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Commitments and Contingencies (Details) $ in Thousands				3 Months Ended		6 Months Ended		12 Months Ended
	Jul. 29, 2024	Apr. 23, 2024 USD ($)	Dec. 16, 2022 USD ($) incentivePlan	Sep. 30, 2024 USD ($)	Sep. 30, 2023 USD ($)	Sep. 30, 2024 USD ($)	Sep. 30, 2023 USD ($)	Mar. 31, 2024 USD ($)	Jan. 30, 2023 USD ($)	Oct. 03, 2022 USD ($)	Apr. 18, 2022 cause	Feb. 18, 2022 advisor	Dec. 31, 2020 USD ($)	Dec. 31, 2019 USD ($)	Nov. 22, 2019 USD ($)	Jun. 12, 2019 USD ($)	Jun. 03, 2019 USD ($)	May 31, 2019 USD ($)
Other Commitments [Line Items]
Rental expense				$ 200	$ 1,600	$ 300	$ 3,300
Potential gross capital commitments				$ 47,200		$ 47,200		$ 47,800
Portfolio percentage of unfunded commitment				90.00%		90.00%
Release of loss contingency related to arbitration award				$ 0	$ 0	$ 54,973	$ 0	$ 55,000
Bayati Action
Other Commitments [Line Items]
Complaint filing period						20 days
Paul Capital Advisors Lawsuit
Other Commitments [Line Items]
Number of trust advisors | advisor												2
Number of new causes of action | cause											6
Maximum potential negative impact										$ 350,000
Private Arbitration
Other Commitments [Line Items]
Incentive plans terminated | incentivePlan			2
Damages sought			$ 36,300
Loss contingency		$ 55,300
Legal fees		$ 100
Relief motion filing period	20 days
Chapter 11 Cases | Minimum
Other Commitments [Line Items]
Maximum potential negative impact									$ 155,000
Chapter 11 Cases | Maximum
Other Commitments [Line Items]
Maximum potential negative impact									382,000
Official Committee of Bondholders Motion
Other Commitments [Line Items]
Maximum potential negative impact									$ 500,000
Parent Purchase of Equity
Other Commitments [Line Items]
Amounts Under Litigation																$ 10,000
Parent Loan Trust Commitment
Other Commitments [Line Items]
Amounts Under Litigation																		$ 65,000
Parent Loan Trust Commitment, Tranche One
Other Commitments [Line Items]
Amounts Under Litigation																	$ 50,000
Parent Loan Trust Commitment, Tranche Two
Other Commitments [Line Items]
Amounts Under Litigation															$ 15,000
Parent Capital Contribution
Other Commitments [Line Items]
Amounts Under Litigation														$ 79,000
Parent Capital Contribution, Preferred Units
Other Commitments [Line Items]
Amounts Under Litigation													$ 145,000

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Supplemental Cash Flow Information - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Class of Stock [Line Items]
Cash paid for interest			$ 1,500	$ 0
Reclass of BCH Preferred A.0 from temporary to permanent equity	$ (125,526)		125,526	699,441
Preferred A.0 Unit Accounts guaranteed payment accrual			8,800	(8,300)
Issuance of noncontrolling interest in connection with recent financings	673		673	(4,290)
Distributions payable to charitable beneficiaries			(300)	(600)
Deemed dividend for BCG Preferred B.2 Unit Accounts preferred return				0
Distribution to noncontrolling interest				1,100
Noncontrolling interests (Note 10)
Class of Stock [Line Items]
Reclass of BCH Preferred A.0 from temporary to permanent equity	125,526		125,526	699,441
Issuance of noncontrolling interest in connection with recent financings		$ 79		79
Deemed dividend for BCG Preferred B.2 Unit Accounts preferred return				6,942
Settlement of Liability Assumed at De-SPAC
Class of Stock [Line Items]
Issuance of noncontrolling interest in connection with recent financings	$ 307	1,250		3,995
Recent Financings
Class of Stock [Line Items]
Issuance of noncontrolling interest in connection with recent financings		3,410	2,555	8,696
Recent Financings | Noncontrolling interests (Note 10)
Class of Stock [Line Items]
Issuance of noncontrolling interest in connection with recent financings		(3,193)		(3,060)
Class A common stock | Settlement of Liability Assumed at De-SPAC
Class of Stock [Line Items]
Issuance of noncontrolling interest in connection with recent financings			$ 1,200	4,000
Class A common stock | Post De-SPAC Transaction
Class of Stock [Line Items]
Issuance of noncontrolling interest in connection with recent financings				5,300
BCG Class A Units Received
Class of Stock [Line Items]
Exchange of preferred stock				793,400
Preferred Series B Subclass 2
Class of Stock [Line Items]
Exchange of preferred stock				791,900
Preferred Series A Subclass 1
Class of Stock [Line Items]
Exchange of preferred stock				193,900
Preferred Series A Subclass 1 | Noncontrolling interests (Note 10)
Class of Stock [Line Items]
Reclass of BCH Preferred A.0 from temporary to permanent equity				699,441
Deemed dividend for BCG Preferred B.2 Unit Accounts preferred return				6,942
Preferred Series C Subclass 1
Class of Stock [Line Items]
Exchange of preferred stock				205,800
Series B Preferred Stock | Recent Financings
Class of Stock [Line Items]
Issuance of noncontrolling interest in connection with recent financings		37,649		37,649
Series B Preferred Stock | Recent Financings | Noncontrolling interests (Note 10)
Class of Stock [Line Items]
Issuance of noncontrolling interest in connection with recent financings		$ 942		942
Class S Ordinary
Class of Stock [Line Items]
Exchange of preferred stock				$ 3,900

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Supplemental Cash Flow Information - Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Mar. 31, 2024	Sep. 30, 2023	Mar. 31, 2023
Offsetting [Abstract]
Cash and cash equivalents	$ 4,482	$ 7,913
Restricted cash	314	64
Total cash, cash equivalents and restricted cash	$ 4,796	$ 7,977	$ 2,414	$ 9,545

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Subsequent Events (Details) - USD ($) $ / shares in Units, $ in Millions	Nov. 13, 2024	Aug. 14, 2024	Aug. 06, 2024	Oct. 02, 2024	Sep. 30, 2024	Mar. 31, 2024	Jun. 07, 2023
Subsequent Event [Line Items]
Securities exercisable (in shares)			1,325,382
Class A common stock
Subsequent Event [Line Items]
Securities exercisable (in shares)		662,691	1,325,382
Convertible debt
Subsequent Event [Line Items]
Securities exercisable (in shares)			1,325,382
Securities Purchase Agreement | Convertible debt
Subsequent Event [Line Items]
Conversion amount		$ 2.0	$ 2.0
Subsequent Event | Class A common stock
Subsequent Event [Line Items]
Securities exercisable (in shares)	662,691
Subsequent Event | Securities Purchase Agreement | Convertible debt
Subsequent Event [Line Items]
Conversion amount	$ 2.0
Proceeds from purchase agreement	$ 1.8
Class A common stock
Subsequent Event [Line Items]
Common stock, shares authorized (in shares)					18,750,000	18,750,000
Price per unit (in dollars per share)					$ 1.23
Securities exercisable (in shares)							1
Class A common stock | Subsequent Event
Subsequent Event [Line Items]
Common stock, shares authorized (in shares)				5,000,000,000