Ben Liquidity recognized $13 million and $10.9 million in interest income during the three months ended September 30, 2023 and 2022 respectively, while Ban Custody recognized $6.5 million and $7.8 million during the same three month periods in 2023 and 2022 respectively, comprised of both the transaction fee income and the recurring fee income. Costs in the Ben Liquidity segment were $285 million, primarily due to a noncash goodwill impairment charge of $220 million and a credit loss charge of $61 million with $47 million of this amount related to securities of our former parent company. This resulted in a $272 million quarterly operating loss. This level of quarterly loss is unusual due to the noncash charges during the period. On an adjusted basis, Ben Liquidity generated a $5 million operating loss.
We plan to subsidize this segment’s growth at roughly the same quarterly level until scale overtakes fixed costs. In Custody, costs were $87 million, primarily due to a noncash goodwill impairment charge of $86 million, resulting in a quarterly operating loss of $81 million. On an adjusted basis, Ben Custody generated $6 million of operating income. Combined, the operating loss of these two business segments, in corporate and other, was $378 million in the quarter, primarily due to the noncash goodwill impairment charge and unfavorable credit loss adjustment I just discussed. Pivoting to the per share results, on a fully diluted Class A common share basis, loss per share was $1.45 for the quarter. Over 85% of the loss per share was attributable to the noncash goodwill impairment and over 10% was attributable to the credit losses related to securities of our former parent company.
$372 million of the operating loss was attributable to Ben’s common equity holders and the rest to noncontrolling interest. On an adjusted basis, these two business segments, along with corporate and other, generated an operating loss of $12 million. The overall result was our net book value went from $2.7 billion as of March 31, 2023 to $1.2 billion as of September 30, 2023. From a cash flow perspective, the company used net cash of approximately $7 million year-to-date September 30, 2023. We look forward to meeting and speaking to investors and continuing to enhance our disclosures in the coming quarters as we move ahead. With that, I will pass the call to David, who will share some of the questions we received.
A – David Rost: Thank you, Greg. We do have a few questions that have come in. I will read them and let you and Brad respond accordingly. Question one, what is the total NAV of the collateral underlying your financing, and how does it break down between larger versus smaller transactions? Greg, this question will go to you.
Greg Marose: Since inception, Ben has provided financings with underlying collateral of approximately $1.2 billion of NAV. With approximately 87% in transactions larger than $50 million, the remaining $156 million was in transactions smaller than $50 million. Over the next few years, we expect liquidity on alternative assets will be broadly available and tied into the brokers used by families and smaller businesses in the same way that stocks and bonds are handled today. As with the creation or disruption of any market, full adoption will take time but Beneficient will be at the forefront of that revolution.
David Rost: The next question is, how many different private interests has Ben financed?
Greg Marose: Since inception, Ben has financed 376 distinct funds and other private interest. Today, there are approximately 276 distinct position underlying our financings and held in our trust accounts.
David Rost: Our next question is, how does Ben plan to finance the growth of the balance sheet? Brad, this question is for you.
Brad Heppner : Packaging our financings and selling them to institutional buyers allows us to recycle capital, which we believe distinguishes us from other participants in the industry. However, sales do not build our balance sheet. On the financings we hold to maturity, we use the cash of those financings to fund not only our corporate and operating expenses but also the fintech costs related to our investments in developing the technology and our scale. Thus, income from holding the maturity only builds the balance sheet as scale is reached. At that point, we will start to generate more profitability. Our initial target near to medium term is to build the business to that scale. With that final answer, we would like to thank you for your interest in Ben and look forward to speaking with you soon.
Operator: This concludes today’s conference call. Thank you for participating. You may now disconnect. Everyone, have a great day.
