Brand Engagement Network Inc. (NASDAQ: BNAI) completed a 1‑for‑10 reverse stock split of its common shares, effective 12:01 a.m. Eastern Time on December 12, 2025. The split consolidates every ten shares into one, leaving the total number of authorized shares and the par value unchanged. Continental Stock Transfer & Trust Company will serve as the exchange agent, and the company’s shares will trade on the Nasdaq Capital Market under the ticker “BNAI” on a split‑adjusted basis from market open on the effective date.
The reverse split comes amid a period of severe financial strain. BNAI reported a net loss of $33.7 million for 2024, a sharp increase from the $11.7 million loss in 2023. Cash and cash equivalents stood at just $149,273 as of December 31, 2024, and the company’s current ratio fell to 0.15, underscoring its liquidity challenges. Debt defaults and limited cash reserves have prompted the company to seek ways to avoid delisting and preserve shareholder value.
Nasdaq’s minimum bid‑price requirement for the Capital Market is $1.00 per share. BNAI’s share price had fallen below this threshold, and the exchange granted the company an extension until December 29, 2025 to regain compliance. The reverse split is intended to lift the share price above the $1.00 floor, thereby averting a potential delisting that would severely limit liquidity and market access.
On the day of the announcement, BNAI’s stock fell 7 percent, reflecting investors’ perception that the reverse split signals underlying distress rather than a strategic improvement. The market reaction was driven by the association of reverse splits with financial hardship and the company’s ongoing failure to meet Nasdaq’s listing standards.
CFO Walid Khiari said the company is evaluating a range of strategic options, including the reverse split, to maintain its Nasdaq listing. He noted that the split is a “necessary step” but does not address the core issues of low revenue, persistent losses, and limited cash reserves. The company also announced a $5 million preferred‑equity contribution from a partnership with SKYE Inteligencia LATAM, S.A.P.I. de C.V., but the infusion is modest relative to its debt burden.
The reverse split does not alter BNAI’s underlying business model or operations. It merely restructures the share count to keep the company listed. Investors and analysts will continue to focus on the company’s ability to generate sustainable revenue, improve profitability, and strengthen its balance sheet. Until those fundamentals improve, the reverse split is likely to be viewed as a cosmetic fix rather than a substantive turnaround.
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