EX-99.1 2 ex99-1.htm EX-99.1

 

Exhibit 99.1

 

UNAUDITED PRO FORMA CONDENSED COMBINED FINANCIAL INFORMATION

 

On March 24, 2025 (the “Closing Date”), the Viewbix. Inc. (the “Company” or “Viewbix”) entered into a securities exchange agreement (the “Agreement”) with Metagramm Software Ltd., an Israeli company (“Metagramm”), and all of the shareholders of Metagramm (the “Metagramm Shareholders”). Pursuant to the Agreement, the Company acquired 100% of Metagramm’s issued and outstanding share capital in exchange for a consideration of 19.99% of the Company’s issued and outstanding capital stock on a post-closing, pro rata basis (the “Consideration”) equal to 1,323,000 shares of common stock of the Company (the “Acquisition”) and representing a total value of $5,159,000. The Acquisition was completed on March 24, 2025 (the “Closing Date”), resulting in Metagramm becoming a wholly-owned subsidiary of the Company.

 

In addition, the Company agreed to pay the Metagramm Shareholders cash earn-out payments on a pro rata basis of up to a cumulative sum of $2.0 million, contingent upon the achievement of certain financing and revenue milestones during the 3-year period following the Closing Date.

 

The unaudited pro forma condensed combined balance sheets are based on the individual historical balance sheets of the Company and Metagramm, prepared in accordance with U.S. generally accepted accounting principles, or U.S. GAAP, as of December 31, 2024, and has been prepared to reflect the effect of the Acquisition, which was completed on March 24, 2025, as if it had occurred on December 31, 2024. The unaudited pro forma condensed combined statements of operations for the year ended December 31, 2024 gives effect to the Acquisition as if it had occurred on January 1, 2024, the beginning of the Company’s fiscal year. The historical condensed combined financial information has been adjusted to give effect to pro forma events that are: 1) directly attributable to the Acquisition; 2) factually supportable; and 3) with respect to the statement of operations, expected to have a continuing impact on the combined results. The unaudited pro forma financial statements were prepared in accordance with Article 11 of the U.S. Securities and Exchange Commission, or the SEC, Regulation S-X, or Article 11 of Regulation S-X. In the opinion of management, all adjustments necessary to present fairly the unaudited pro forma condensed combined financial information have been made, as further described in the accompanying notes.

 

The unaudited pro forma condensed combined financial information is derived from and should be read in conjunction with the Company’s historical audited financial statements for the year ended December 31, 2024 included in the Company’s Annual Report on Form 10-K filed to the SEC on March 21, 2025, (the “Annual Report”), the historical audited financial information of Metagramm for the year ended December 31, 2024 included as Exhibit 99.1 to this Current Report on Form 8-K, or this Form 8-K.

 

The unaudited pro forma combined condensed financial information is presented for informational purposes only and is not necessarily indicative of the results of operations that would have resulted had the Acquisition described above been consummated at the dates indicated, nor is it necessarily indicative of the results of operations which may be realized in the future. Furthermore, the unaudited pro forma combined condensed financial information does not give effect to the potential impact of current financial conditions, regulatory matters, operating efficiencies or other savings or expenses that may be associated with the integration of the two companies.

 

 

 

 

UNAUDITED PRO FORMA CONDENSED COMBINED BALANCE SHEETS

As of December 31, 2024

(U.S. dollars in thousands)

 

   Viewbix Inc   Metagramm   Transaction
Accounting
Adjustments		      Pro
Forma		 
Assets                       
Current Assets:                       
Cash and cash equivalents  $624   $18   $-      $642 
Restricted deposit   58    -    -       58 
Accounts receivables   1,832    -    -       1,832 
Loan to parent company   3,981    -    -       3,981 
Other receivables   1,257    14    -       1,271 
                        
Total Current Assets   7,752    32    -       7,784 
                        
Non-current assets:                       
Deferred taxes   164    -    -       164 
Property and equipment, net   27    2    -       29 
Intangible assets, net   9,552    123    860   3(a)   10,535 
Goodwill   4,579    -    5,125   3(a)   9,704 
                        
Total Non-current Assets   14,322    125    5,985       20,432 
                        
Total Assets  $22,074    157    5,985       28,216 
                        
Liabilities                       
Current liabilities:                       
Accounts payable  $5,935   $ 5    $-      $ 5,940  
Short-term loans   2,310    -    -       2,310 
Current maturities of long-term loans   3,064    -    -       3,064 
Embedded derivatives   29    -    -       29 
Short-term convertible loans   779    -    -       779 
Other payables   812    348    -       1,160 
                        
Total Current liabilities   12,929     353     -        13,282  
                        
Non-current liabilities:                       
Long-term loans, net of current maturities   496    -    -       496 
Deferred taxes   1,142    -     198    3(a)    1,340  
Earn-out liability   -    -    1,010   3(a)   1,010 
                        
Total None Current liabilities   1,638    -     1,208         2,846  
                        
Total Liabilities  $14,567     353      1,208         16,128  
                        
Shareholders’ Equity:                       
Common stock of $0.0001 par value   3    -    -       3 
Additional paid-in-capital  $28,482   $ 250    $4,804   3(b)  $ 33,536  
Accumulated deficit   (22,714)    (446 )   (27)  3(b)    (23,187 )
                        
TOTAL EQUITY   7,507     (196 )   4,777        12,088  
                        
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY   22,074    157    5,985       28,216 

 

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UNAUDITED PRO FORMA CONDENSED COMBINED STATEMENT OF OPERATIONS

For the period ended December 31, 2024

(U.S. dollars in thousands)

 

   Viewbix Inc   Metagramm   Transaction Accounting Adjustments   Pro
Forma		 
Revenues  $26,941    137         27,078 
                     
Costs and Expenses:                    
Traffic-acquisition and related costs   21,987    -    -    21,987 
Research and development   1,879    171    -    2,050 
Selling and marketing   1,641    62    -    1,703 
General and administrative   2,268    81    -    2,349 
Depreciation and amortization   3,012    110    320    3,442 
Goodwill Impairment   7,675    -    -    7,675 
Other expenses, net   34    -    -    34 
                     
Operating loss   11,555    287    320    12,162 
                     
Finance expenses, net   2,764    110    -    2,874 
                     
Loss before income taxes   14,319    397    320    15,036 
                     
Income tax benefit   (213)   -    (74)   (287)
                     
Net loss   14,106    397    246    14,749 
                     
Net loss attributable to non-controlling interests   2,053    -    -    2,053 
Net loss attributable to shareholders   12,053    397    246    12,696 
                     
Net loss per share – Basic and diluted attributed to shareholders:   2.69    0.09    0.05    2.84 
                     
Weighted-average number of shares used in computing net loss per share, basic and diluted (*)   4,476,013    4,476,013    4,476,013    4,476,013 

  

(*) Share and per share data in these condensed consolidated financial statements have been retroactively adjusted to reflect the 1-for-4 reverse stock split effected on March 14, 2025.

 

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Notes to Unaudited Pro Forma Condensed Combined Consolidated Financial Information

 

Note 1 - Basis of presentation

 

The unaudited pro forma condensed combined statement of operations for the period ended December 31, 2024, presents pro forma effect to the Acquisition, which was completed on March 24, 2025, as if it had been completed on January 1, 2024 and was derived from the Company’s historical audited financial statements for the year ended December 31, 2024 included in the Annual Report and the historical audited financial information of Metagramm for the year ended December 31, 2024 included as Exhibit 99.2 to this Form 8-K.

 

The unaudited pro forma condensed combined financial information herein has been prepared to illustrate the effects of the Acquisition in accordance with U.S. GAAP.

 

The unaudited pro forma condensed combined balance sheets as of December 31, 2024, assumes that the Acquisition occurred on December 31, 2024.

 

The unaudited pro forma condensed combined statement of balance sheets as of December 31, 2024, has been prepared using, and should be read in conjunction with, the following:

 

  ● The Company’s audited consolidated statement of balance sheets as of December 31, 2024, and the related notes, included in the Annual; and
     
  ● Metagramm’s audited balance sheets as of December 31, 2024, and the related notes, included as Exhibit 99.2 to this Form 8-K.

 

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The unaudited pro forma condensed combined statement of operations for the year ended December 31, 2024, have been prepared using, and should be read in conjunction with, the following:

  

  ● The Company’s audited consolidated statement of operations for the period ended December 31, 2024, and the related notes included in the Annual Report; and
     
  ● Metagramm’s audited statement of operations for the year ended December 31, 2024 and the related notes attached as Exhibit 99.2 to this Form 8-K.

 

Information has been prepared based on these preliminary estimates, and the final amounts recorded may differ materially from the information presented. The unaudited pro forma condensed combined financial information does not give effect to any anticipated synergies, operating efficiencies, tax savings, or cost savings that may be associated with the Acquisition.

 

Management has made significant estimates and assumptions in its determination of the pro forma adjustments. The pro forma adjustments reflecting the consummation of the Acquisition are based on certain currently available information and certain assumptions and methodologies that The Company believes are reasonable under the circumstances. The unaudited condensed pro forma adjustments, which are described in the accompanying notes, may be revised as additional information becomes available and is evaluated. Therefore, it is likely that the actual adjustments will differ from the pro forma adjustments and it is possible the difference may be material. The Company believes that these assumptions and methodologies provide a reasonable basis for presenting all of the significant effects of the Acquisition based on information available to management at the time of the Closing Date and that the pro forma adjustments give appropriate effect to those assumptions and are properly applied in the unaudited pro forma condensed combined financial information.

 

The unaudited pro forma condensed combined financial information is presented solely for informational purposes and is not necessarily indicative of the combined results of operations or balance sheets that might have been achieved for the periods presented, nor is it necessarily indicative of the future results of the combined company.

 

The unaudited pro forma condensed combined financial information does not necessarily reflect what the combined company’s financial condition or results of operations would have been had the transactions occurred on the dates indicated. The unaudited pro forma condensed combined financial information also may not be useful in predicting the future financial condition and results of operations of the combined company. The actual balance sheets and results of operations may differ significantly from the pro forma amounts reflected herein due to a variety of factors.

 

Note 2 - Adjustments to Unaudited Pro Forma Condensed Combined Financial Information

 

The unaudited pro forma condensed combined financial information has been prepared in accordance with Article 11 of Regulation S-X as amended by Release No. 33-10786 “Amendments to Financial Disclosures about Acquired and Disposed Businesses.” Release No. 33-10786 replaces the existing pro forma adjustment criteria with simplified requirements to depict the accounting for the transaction, or Transaction Accounting Adjustments, and present the reasonably estimable synergies and other transaction effects that have occurred or are reasonably expected to occur, or Management’s Adjustments. The Company has elected not to present Management’s Adjustments and will only be presenting Transaction Accounting Adjustments in the unaudited pro forma condensed combined financial information.

 

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The unaudited pro forma combined provision for income taxes does not necessarily reflect the amounts that would have resulted had the combined company following consummation of the Acquisition filed consolidated income tax returns during the periods presented.

 

Note 3 - Pro Forma Adjustments

 

The following describes the pro forma adjustments related to the Acquisition, that have been made in the accompanying unaudited pro forma condensed combined statements of operations for the year ended December 31, 2024, giving effect to the Acquisition as if it had been consummated on January 1, 2024, all of which are based on preliminary estimates that could change significantly as additional information is obtained:

 

(a) The preliminary purchase price allocation is as follows (in thousand):

 

Consideration paid in Company’s shares      $5,159 
Earn-out liability arising from the acquisition       1,010 
Total cost of the acquisition        6,169 
           
Less: Acquired tangible assets        136 
Excess purchase price        6,033 
           
Fair value adjustments:          
Intangible asset – Technology   760      
Intangible asset – Customer relations   420      
Deferred tax liabilities   (272)     
Total fair value adjustments        908 
           
Goodwill        5,125 

 

The consideration of $5,159 thousand paid in Company’s shares which were allocated to the Metagramm Shareholders at the Closing Date.

 

The earn-out liability of $1,010 thousand represents the estimated fair value of cash earn-out payments the Company has agreed to pay the Metagramm’ Shareholders, contingent upon the achievement of certain financing and revenue milestones during the 3-year period following the Closing Date.

 

The pro forma adjustments give effect to the forward acquisition accounting, and specifically:

 

(1)to recognize $760 thousand of Metagramm’s identified intangible assets comprised of technology with an 5-year useful life;
   
(2)to recognize $420 thousand of Metagramm’s identified intangible assets comprised of customer relations with a 2.5-year useful life;
   
(3)to recognize $272 thousand of Metagramm’s deferred tax liabilities associated with the identified intangible assets; and
   
(4)to recognize Metagramm’s goodwill of $5,125 thousand.

 

  (b) Represents the consolidation equity elimination upon consolidation of Metagramm.

 

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