Brand Engagement Network Provides Second Quarter Update

Brand Engagement Network Inc. (Nasdaq: BNAI) ("BEN" or the "Company"), an AI technology company powering intelligent engagement, today announced the filing of its Quarterly Report on Form 10-Q for the three- and six-month periods ended June 30, 2026. The quarter marked a significant milestone for BEN with the acquisition of Cataneo GmbH, which combines BEN's technology with Cataneo's platform, talent, customers, industry expertise, and established global market presence to create new opportunities across intelligent engagement, media, and monetization. On June 30, 2026, the Company completed the acquisition of 100% of Cataneo GmbH, a Germany-based media and advertising technology company. Cataneo brings an established technology platform, customer relationships, industry expertise, and operating capabilities that provide BEN with new opportunities to apply its AI and intelligent engagement technology to transform customer experiences and develop new solutions across the media and advertising ecosystem. The total stated aggregate consideration under the definitive agreement was $19.5 million. For U.S. GAAP accounting purposes, the consideration transferred was measured at its acquisition-date fair value of approximately $13.7 million, consisting of (i) cash of approximately $9 million, (ii) the fair value of common stock issued of approximately $4.3 million, and (iii) other consideration of approximately $0.4 million. The acquisition significantly expanded the Company's asset base, with total assets rising from $15.3 million on December 31, 2025, to $30.7 million on June 30, 2026, driven primarily by approximately $10.8 million of goodwill and additional intangible assets related to Cataneo. Accounts payable decreased by $1.8 million, and short-term debt decreased by nearly $1.0 million. Combined with a reduction in warrant liabilities, these balance-sheet items declined by about $3.3 million. Shareholders' equity increased to $19.4 million as of June 30, 2026, up from $3.5 million as of December 31, 2025. Cash and cash equivalents increased to $708,000 as of June 30, 2026, from $172,000 as of December 31, 2025. On June 8, 2026, the Company entered a 50/50 joint venture with INTERVENT International, LLC, forming INTERVENT Health AI, Inc. to develop and commercialize AI-powered health coaching and chronic disease management solutions. The Company also completed a $1 million strategic investment in Accelevate Solutions, a provider of intelligent engagement solutions for fleet management, acquiring approximately 10% of the company, with warrants that could increase ownership to approximately 20%. Through its wholly owned subsidiary Skye AI USA, LLC, the Company owns a 25% common equity interest in Skye Africa Intelligence, Pty. Ltd. and holds preferred equity with a stated value of $2.05 million. The Company is entitled to a 35% recurring revenue share under the related African licensing arrangement. On August 5, 2026, Skye Africa Intelligence signed a Memorandum of Understanding with the East, Central and Southern Africa Health Community (ECSA-HC) to support the potential deployment of AI-enabled health solutions across ECSA-HC's member states. "The closing of the Cataneo acquisition on the final day of the quarter is an important milestone for BEN," said Tyler Luck, Chief Executive Officer.