Brand Engagement Network Strengthens Balance Sheet Through Warrant Exercises and Debt Conversion

Brand Engagement Network Inc. (NASDAQ: BNAI) announced it generated approximately $1.46 million in cash proceeds from the exercise of warrants, incentive stock options, and long-term incentive plan awards. The company also converted $737,500 of outstanding debt into shares of common stock, resulting in the issuance of an aggregate 93,313 shares. These transactions strengthened the company's balance sheet and simplified its capital structure, bringing total common shares outstanding to an estimated 5,778,514, with a public float of approximately 3,129,047 shares.

The company provided an update on its public warrants, noting that following its 1-for-10 reverse stock split effective Dec. 12, 2025, the warrant exercise price was adjusted to $115.00 per share and the number of underlying shares to 1,644,096. This represents potential gross proceeds of approximately $189.1 million if fully exercised. The company added that certain platforms have not yet fully reflected the post-split adjustments and are being updated. For more information about the company's AI solutions, visit www.BrandEngagementNetwork.com.

These financial moves are significant for Brand Engagement Network as they demonstrate the company's ability to generate capital through warrant exercises while reducing debt obligations through equity conversion. The simplification of the capital structure through these transactions provides greater clarity for investors regarding the company's share count and financial position. The warrant adjustments following the reverse stock split ensure alignment with the company's current share structure, though the ongoing updates to various platforms highlight the administrative complexities involved in such corporate actions.

The potential $189.1 million in gross proceeds from fully exercised warrants represents substantial future funding capacity for the company. This matters because Brand Engagement Network operates in the competitive artificial intelligence sector, where continued investment in research, development, and market expansion is essential for maintaining technological leadership. The company's focus on secure, enterprise-grade AI solutions for regulated industries requires significant capital investment to develop and maintain its proprietary technology, including its Engagement Language Model (ELM).

For investors, these developments indicate management's proactive approach to capital structure optimization and balance sheet management. The conversion of debt to equity reduces interest expenses and financial leverage, while the warrant exercises provide immediate cash infusion without diluting existing shareholders beyond the predetermined terms. The company's disclosure about platform updates for warrant adjustments demonstrates transparency regarding potential investor confusion during the transition period following the reverse stock split. Additional information about forward-looking statements and risk factors can be found at http://IBN.fm/Disclaimer.