Brand Engagement Network Finalizes Agreement for a Proprietary AI Engagement Solution with a Leading Global Ad Agency for One of the World's Top Pharmaceutical Companies

Rhea-AI Summary

Brand Engagement Network (Nasdaq: BNAI) entered a Vendor Services Project Agreement with a leading global advertising agency unit to develop a custom AI engagement method for a top‑10 global pharmaceutical client's prescription drug.

BEN expects to recognize $250,000 in development revenue across two Statements of Work in Q4 2025 and anticipates monthly recurring license fees beginning in Q1 2026. The company noted this work, together with an exclusive Latin American licensing partnership and the Skye Salud AI healthcare venture for Mexico, may contribute positively to Q4 2025 results and signal growing adoption of BEN's secure AI in healthcare.

Positive

• Signed agreement to develop custom AI for top‑10 pharma client
• $250,000 development revenue expected in Q4 2025
• Anticipated monthly recurring license fees starting Q1 2026
• Exclusive Latin American licensing partnership and Skye Salud venture

Negative

• Client and agency identities remain confidential pending release
• Recognized $250,000 is a one‑time development fee (Q4 2025)
• Recurring license fees are anticipated but not yet recognized

Key Figures

Development revenue $250,000 Expected Q4 2025 revenue from two Statements of Work in new AI project

Market Reality Check

$2.50 Last Close

Volume Volume 148,503 is about 20% below the 20-day average of 186,537. normal

Technical Shares at $1.20 are trading below the 200-day MA of $3.49 and ~90% under the 52-week high of $11.80.

Peers on Argus

BNAI fell 13.67% while peers were mixed: FAAS -8.3%, BLIN -2.73%, OLB -1.75%, DTSS +1.33%, NEHC +11.46%, suggesting stock-specific pressure.

Historical Context

Date	Event	Sentiment	Move	Catalyst
Dec 22	Liability reductions	Positive	-8.7%	Q4 2025 liabilities cut by about $2.49M via conversions and settlements.
Dec 18	Balance sheet actions	Positive	+12.4%	Over $1.24M in liabilities reduced through debt conversion and settlements.
Dec 11	AI healthcare venture	Positive	-3.7%	Formation of Skye Salud to deploy sovereign AI healthcare platform in Mexico.
Dec 08	Healthcare platform	Positive	+7.5%	Announcement of Skye Salud entity and plans for Q1 2026 initial launch.
Dec 02	Reverse stock split	Neutral	-10.7%	1-for-10 reverse split effective Dec 12, 2025 with split‑adjusted trading.

Pattern Detected

Recent positive corporate actions and AI initiatives have produced mixed reactions, with several positive balance sheet and growth updates followed by both gains and notable selloffs.

Recent Company History

Over the last months, BNAI announced balance-sheet improvements, including liability reductions of over $2.49M and a 1-for-10 reverse split, alongside strategic AI expansions such as the Skye Salud healthcare platform. Reactions ranged from gains of 12.42% and 7.51% to declines over 8% and 10%, showing inconsistent trading responses to news. Today’s AI engagement deal continues the pivot toward healthcare and enterprise AI use cases highlighted in earlier releases.

Market Pulse Summary

The stock is down -5.8% following this news. A negative reaction despite the new AI engagement deal would fit past patterns where positive developments were sometimes followed by selling. The agreement adds expected Q4 2025 revenue of $250,000 and points toward future recurring fees, but the stock traded far below its 200-day MA of $3.49 and 52-week high of $11.80 ahead of this news. Persistent concerns from prior filings about losses and liquidity could continue to outweigh incremental contract wins.

Key Terms

generative AI technical

"a provider of safe and secure generative AI for businesses and their consumers"

Generative AI is a type of computer technology that can create new content, like text, images, or music, on its own. It’s important because it can produce realistic and useful material quickly, which could change how we create art, write stories, or even develop new products. Think of it as a smart robot that can invent and produce things almost like a human.

monthly recurring license fees financial

"BEN anticipates monthly recurring license fees, separate from the development work"

Payments customers make every month to keep using a company's licensed software or service; they are recurring, predictable charges rather than one-time purchases. For investors, these fees act like subscription income — similar to a monthly streaming bill — and matter because they create steady cash flow, make future revenue easier to forecast, and reveal customer loyalty and growth through metrics like retention and churn.

form 8-k regulatory

"refer to the Company's Current Report on Form 8-K filed with the Securities"

A Form 8-K is a report that companies file with the government to share important news quickly, such as changes in leadership, major business deals, or financial updates. It matters because it helps investors stay informed about significant events that could affect the company's value or stock price.

AI-generated analysis. Not financial advice.

WILMINGTON, Del., Dec. 29, 2025 /PRNewswire/ -- Brand Engagement Network Inc. (Nasdaq: BNAI) ("BEN" or the "Company"), a provider of safe and secure generative AI for businesses and their consumers, today announced it has entered into a Vendor Services Project Agreement with a leading global advertising and communications agency, a unit of one of the world's top advertising holding companies, for the development of a custom AI engagement communication method for a top 10 global pharmaceutical client's established prescription pharmaceutical drug. The identities of the pharmaceutical company and the agency remain confidential pending a formal release of the AI solution.

Under the agreement, BEN is expected to recognize $250,000 in revenue for development services spanning two Statements of Work in Q4' 2025. BEN anticipates monthly recurring license fees, separate from the development work, in the first quarter of 2026.

This development, together with BEN's exclusive Latin American licensing partnership and the new venture to launch Skye Salud an AI healthcare platform for Mexico, is expected to contribute positively to the Company's Q4 2025 results while highlighting increasing adoption of BEN's secure AI technology in the healthcare vertical in both the U.S. and Mexico.

Tyler Luck, Acting Chief Executive Officer of BEN, commented, "This agreement reflects BEN's progression in healthcare, in which our technology delivers trusted, secured, and efficient AI for pharma manufacturers, healthcare providers, and patients. We are committed to creating experiences for consumers where their needs are met with accuracy, reliability, and integrity."

For more information about the agreement and settlement, please refer to the Company's Current Report on Form 8-K filed with the Securities and Exchange Commission on December 29, 2025. For additional background on BEN's previously announced healthcare initiatives in Latin America, including the Skye Salud platform in Mexico, please refer to the Company's prior press release available on its investor relations website: https://investors.brandengagementnetwork.com/news/ben-and-skye-inteligencia-announce-formation-of-skye-salud-a-sovereign-augmented-intelligence-healthcare-platform-for-mexico

About Brand Engagement Network (BEN) (Nasdaq: BNAI)
BEN (Brand Engagement Network, Inc.) is a leading provider of conversational AI technology and human-like AI avatars headquartered in Jackson, WY. BEN delivers highly personalized, multi-modal (text, voice, and vision) AI engagement, with a focus on industries with massive workforce gaps and opportunities to transform how consumers engage with networks, providers, and brands. The backbone of BEN's success is its rich portfolio of conversational AI applications that drive better customer experience, increased automation, and enhanced operational efficiencies. BEN seeks to partner with companies with complementary capabilities and networks to enable meaningful business outcomes. For more information about BEN, please visit www.beninc.ai.

Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of present or historical fact, included in this press release regarding the company's future financial performance, strategy, future operations, financial position, estimated revenues and losses, projected costs, prospects, plans, and objectives of management are forward-looking statements. When used in this press release, the words "could," "should," "will," "may," "believe," "anticipate," "intend," "estimate," "expect," "project," and the negative of such terms and other similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words. These forward-looking statements are based on management's current expectations and assumptions about future events and are based on currently available information as to the outcome and timing of future events. Forward-looking statements are subject to a number of risks and uncertainties, many of which involve factors or circumstances that are beyond the company's control. The company's actual results could differ materially from those stated or implied in forward-looking statements due to a number of factors, including but not limited to: (i) risks associated with our limited operating history; (ii) our ability to achieve profitability in the future; (iii) our ability to demonstrate the value of our solution to our customers; (iv) our ability to attract new customers and convince them of the value of our solution; (v) our ability to retain and expand our relationships with existing customers; (vi) our dependence on our senior management team and other key employees; (vii) risks associated with downturns in the economy and reductions in advertising and marketing spend; (viii) risks associated with our presence in the emerging and evolving market for generative AI products and services; (ix) our ability to manage our growth effectively; (x) risks associated with the impact of geopolitical and macroeconomic instability; (xi) risks associated with the intense competition in our industry; (xii) risks associated with our reliance on third-party platforms; (xiii) risks associated with changes in applicable laws or regulations and with the difficulties and complexities associated with newly emerging technologies; (xiv) risks associated with cyber privacy and security concerns; (xv) our ability to maintain, protect, and enhance our intellectual property rights; and (xvi) our ability to successfully identify, execute, and integrate future acquisitions. For a further discussion of these and other factors that could impact the company's future results, performance, or transactions, see the section entitled "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in the company's Quarterly Report on Form 10-Q for the period ended September 30, 2025, filed with the Securities and Exchange Commission (the "SEC"), and in other reports that the company files with the SEC from time to time. If any of these risks materialize or our assumptions prove incorrect, actual results could differ materially from the results implied by these forward-looking statements. There may be additional risks that the company presently does not know or that the company currently believes are immaterial that could also cause actual results to differ materially from those contained in the forward-looking statements. In addition, forward-looking statements reflect the company's current expectations, plans, or forecasts of future events and views as of the date of this press release. The company anticipates that subsequent events and developments will cause these assessments to change. However, while the company may elect to update these forward-looking statements at some point in the future, the company specifically disclaims any obligation to do so. These forward-looking statements should not be relied upon as representing the company's assessments as of any date subsequent to the date of this press release. Accordingly, undue reliance should not be placed upon the forward-looking statements.

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SOURCE Brand Engagement Network, Inc. (BEN)

FAQ

What did Brand Engagement Network (BNAI) announce on December 29, 2025?

BNAI announced a Vendor Services Project Agreement to develop a custom AI engagement solution for a top‑10 pharmaceutical client and expects $250,000 in Q4 2025 development revenue.

How much revenue will BNAI recognize from the agreement in Q4 2025?

BNAI expects to recognize $250,000 in development services revenue across two Statements of Work in Q4 2025.

When does BNAI expect recurring license fees from the AI solution (BNAI)?

BNAI anticipates monthly recurring license fees separate from development work beginning in Q1 2026.

Does the December 29, 2025 announcement name the pharma client or agency (BNAI)?

No; the pharmaceutical company and the agency remain confidential pending a formal release of the AI solution.

Will the agreement affect BNAI's Q4 2025 results (BNAI)?

The company expects the development work, plus its Latin America licensing and Skye Salud venture, to contribute positively to Q4 2025 results.