Brand Engagement Network Expects One-Time Exit Costs Estimated At ~$177K Related To Its Acquisition Of Cataneo

The Company is providing an update on expected cost reductions related to the integration of Cataneo GmbH following the Company’s acquisition of Cataneo on June 30, 2026.

In connection with subsequent organizational actions authorized by the Company’s Chief Executive Officer in the ordinary course (Phase II and Phase III), the Company expects to incur one-time exit costs (primarily severance and notice pay) currently estimated at approximately $177,000. Substantially all of these costs are expected to result in future cash expenditures, with the majority anticipated to be paid during the first half of 2027. Actual amounts may vary based on final exit timing, individual arrangements, and ordinary course adjustments.

As previously disclosed in connection with the June 30, 2026 acquisition and related actions (Phase I), the Company expected annualized cost synergies of approximately $904,000. The subsequent organizational actions (Phase II and Phase III) that have been substantially completed are expected to contribute further annualized payroll, contractor and related cost reductions of approximately $290,000 and approximately $725,000, respectively.

Taken together, the Company now expects total annualized cost reductions across all three phases of approximately $1.919 million. The majority of the expected run-rate savings is anticipated to be realized in 2027. Certain exits remain subject to final timing and individual arrangements, including the spread of one larger severance and notice amount over the first half of 2027 and the later start of savings associated with one contract ending in September 2027.

These expected cost actions are part of the Company’s ongoing efforts to improve operating leverage following the Cataneo acquisition. The Company expects to provide further updates on integration progress, including commercial results, in its forthcoming periodic reports.