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Brand Engagement Network Inc.

For the period ended Dec 31, 2024. Filed Mar 31, 2025.

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About this filing

A company's yearly report to the SEC, with audited financial statements. It is the fullest account a company gives of its business, its finances and the risks it sees.

FY2024 · Filed Mar 31, 2025

BNAI$4.84+7.8%Stored close · as of Nov 10, 2026

Extracted filing text, with the paragraph anchors used by the comparison.

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Contents

Item 8. Consolidated Statements of Cash Flows

CONSOLIDATED STATEMENT OF CASH FLOWS

Years Ended December 31,
20242023
Cash flows from operating activities:
Net loss$(33,715,429)$(11,731,266)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization expense2,728,411637,990
Allowance for uncollected receivables30,00020,000
Write off of deferred financing fees1,427,729—
Impairment of deferred customer acquisition costs13,475,000—
Change in fair value of warrant liabilities(994,687)—
Gain on debt extinguishment(1,946,310)—
SEPA financing costs525,000—
Stock based compensation, including the issuance of restricted shares1,814,0484,878,655
Non-cash interest expense90,624—
Reduction in right of use asset60,005—
Changes in operating assets and liabilities:
Prepaid expense and other current assets(824,281)(201,043)
Accounts receivable(50,888)(29,500)
Accounts payable6,012,259101,396
Accrued expenses(2,610,971)1,257,879
Other assets—8,850
Operating lease liability(57,924)—
Deferred revenue(2,290)2,290
Net cash used in operating activities(14,039,704)(5,054,749)
Cash flows from investing activities:
Purchase of property and equipment(53,023)(48,349)
Purchase of patents—(379,864)
Capitalized internal-use software costs(228,367)(453,709)
Asset acquisition (Note D)—(257,113)
Net cash used in investing activities(281,390)(1,139,035)
Cash flows from financing activities:
Cash and cash equivalents acquired in connection with the reverse recapitalization858,292—
Proceeds from the sale of common stock11,300,3305,000,000
Proceeds from Standby Equity Purchase Agreement liability1,490,000—
Proceeds from convertible notes—3,075,000
Proceeds from related party note—620,000
Proceeds received from option and warrant exercises100,02435,000
Payment of financing costs(883,292)(711,859)
Payment of related party note(80,000)(120,000)
Advances to related parties—(159,464)
Proceeds received from related party advance repayments—138,110
Net cash provided by financing activities12,785,3547,876,787
Net (decrease) increase in cash and cash equivalents(1,535,740)1,683,003
Cash and cash equivalents at the beginning of the period1,685,0132,010
Cash and cash equivalents at the end of the period$149,273$1,685,013

CONSOLIDATED STATEMENT OF CASH FLOWS

Years Ended December 31,
20242023
Supplemental Cash Flow Information
Cash paid for interest$—$—
Cash paid for income taxes$—$—
Supplemental Non-Cash Information
Capitalized internal-use software costs in accrued expenses$—$54,756
Issuance of common stock pursuant to Reseller Agreement$13,475,000$—
Issuance of common stock for Standby Equity Purchase Agreement liability and commitment fee$1,317,518$—
Stock-based compensation capitalized as part of capitalized software costs$236,346$61,458
Settlement of liabilities into common shares$583,690$432,963
Settlement of accounts payable into convertible note$1,900,000$—
Right of use asset obtained in exchange of operating new lease liabilities$567,187$—
Conversion of convertible notes into common shares$760,000$3,075,000
Warrants exercise through settlement of accounts payable$—$40,000
Property and equipment in accounts payable$—$2,326
Financing costs in accounts payable and accrued expenses$200,000$785,870
Issuance of common stock in connection with asset acquisition$—$16,012,750
ContentsView on SEC.gov

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