EX-99.1 2 ea030076601ex99-1.htm UNAUDITED PRO FORMA CONDENSED CONSOLIDATED FINANCIAL INFORMATION OF VASO CORPORATION GIVING EFFECT TO THE DISPOSITION OF NETWOLVES NETWORK SERVICES LLC

Exhibit 99.1

 

UNAUDITED PRO FORMA CONDENSED COMBINED FINANCIAL INFORMATION

 

Item 9.01. Financial Statements and Exhibits

 

(d)  Exhibit 99.1.

 

The following unaudited pro forma financial statements were derived from Vaso’s historical financial statements and are being presented to give effect to the disposition of NetWolves for a base purchase price under the Purchase Agreement of $14,500,000 in cash, subject to customary adjustments as described in Item 1.01 of this report as filed on July 31, 2026.

 

Presented below are the following unaudited pro forma financial statements:

 

●Condensed consolidated balance sheet as of March 31, 2026, as adjusted assuming the NetWolves Disposition had occurred on March 31, 2026; and

 

●Condensed consolidated statements of operations for the year ended December 31, 2025, and the three months ended March 31, 2026, as adjusted assuming the NetWolves Disposition had occurred on January 1, 2025

 

The unaudited pro forma condensed financial statements are prepared in accordance with Rule 8-05 and Article 11 of Regulation S-X. The pro forma adjustments have been made solely for the purpose of providing pro forma financial information as required by the U.S. Securities and Exchange Commission (SEC) rules. Differences between these pro forma adjustments and the final accounting for NetWolves Disposition may be material. The pro forma adjustments are described in the accompanying notes and are based upon information and assumptions available at the time of the filing of this report.

 

The pro forma financial information is provided for informational purposes only and is not representative or necessarily indicative of what the actual consolidated results of operations or the consolidated financial position of Vaso would have been had the NetWolves Disposition occurred on the dates assumed, nor are they necessarily representative or indicative of Vaso’s future consolidated results of operations or consolidated financial position. The unaudited pro forma condensed consolidated balance sheet and statements of operations should be read in conjunction with (i) the accompanying notes to the pro forma financial information (ii) the Current Report on Form 8-K filed with the SEC on July 31, 2026 (for reporting the Purchase Agreement), (iii) the historical audited consolidated financial statements and accompanying notes of Vaso contained in its Annual Report on Form 10-K for the year ended December 31, 2025, filed with the SEC on March 31, 2026 (2025 Form 10-K), and (iv) the historical unaudited condensed consolidated financial statements and accompanying notes of Vaso contained in its Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2026, filed with the SEC on May 15, 2026 (First Quarter 2026 Form 10-Q). All amounts within are presented in thousands except per share data.

  

 

 

 

VASO CORPORATION AND SUBSIDIARIES

UNAUDITED PRO FORMA CONDENSED CONSOLIDATED BALANCE SHEET

AS OF MARCH 31, 2026

(in thousands, except share and per share data)

 

   As Reported1   Pro Forma Adjustments2   Pro Forma 
ASSETS            
CURRENT ASSETS            
Cash and cash equivalents  $21,973   $9,956   $31,929 
Restricted cash   -    2,850    2,850 
Accounts and other receivables, net   21,544    (2,223)   19,321 
Receivables due from related parties   1,099    -    1,099 
Inventories, net   827    -    827 
Deferred commission expense   3,688    -    3,688 
Prepaid expenses and other current assets   2,013    (1,078)   935 
Total current assets   51,144    9,505    60,649 
Property and equipment, net   1,245    (1,133)   112 
Operating lease right of use assets   2,110    (316)   1,794 
Goodwill   10,978    (9,736)   1,242 
Intangibles, net   2,168    (645)   1,523 
Other assets, net   7,095    (27)   7,068 
Investment in EECP Global   78    -    78 
Deferred tax assets, net   8,165    (1,172)   6,993 
Total assets  $82,983   $(3,524)  $79,459 
LIABILITIES AND STOCKHOLDERS' EQUITY               
CURRENT LIABILITIES               
Accounts payable  $3,917   $(2,635)  $1,282 
Accrued commissions   852    (66)   786 
Accrued expenses and other liabilities   4,991    (792)   4,199 
Operating lease liabilities - current   1,130    (248)   882 
Sales tax payable   738    (539)   199 
Deferred revenue - current portion   18,642    -    18,642 
Notes payable - current portion   290    -    290 
Due to related party   3    -    3 
Total current liabilities   30,563    (4,280)   26,283 
LONG-TERM LIABILITIES               
Operating lease liabilities, net of current portion   980    (68)   912 
Deferred revenue, net of current portion   20,878    -    20,878 
Other long-term liabilities   1,960    -    1,960 
Total long-term liabilities   23,818    (68)   23,750 
Total liabilities   54,381    (4,348)   50,033 
                
STOCKHOLDERS' EQUITY               
Preferred stock, $.01 par value; 1,000,000 shares authorized; nil shares issued and outstanding   -    -    - 
Common stock, $.001 par value; 250,000,000 shares authorized; 175,953,035 shares issued and outstanding   176    -    176 
Additional paid-in capital   62,088    -    62,088 
Accumulated deficit   (33,399)   824    (32,575)
Accumulated other comprehensive loss   (263)   -    (263)
Total stockholders' equity   28,602    824    29,426 
Total liabilities and stockholders' equity  $82,983    (3,524)  $79,459 

 

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VASO CORPORATION AND SUBSIDIARIES

NOTES TO UNAUDITED PRO FORMA CONDENSED CONSOLIDATED BALANCE SHEET

 

(1)Vaso’s historical financial information has been derived from its First Quarter 2026 Form 10-Q.

 

(2)Pro forma adjustments reflect the NetWolves Disposition for pre-tax net cash proceeds of approximately $10 million and elimination of assets and liabilities attributable to NetWolves. These adjustments reflect the estimated gain of approximately $0.8 million arising from the transaction as of July 31, 2026. The gain recorded upon close was estimated and may be subject to change and will be based on actual amounts as of the close date. No adjustment has been made to the sale proceeds to give effect to any potential post-closing adjustments under the terms of the Purchase Agreement.

 

A reconciliation of the sale price to net cash proceeds follows (in thousands):

 

 Sale price  $14,500 
      
Closing cash   400 
Closing Indebtedness   (1,123)
Unpaid seller expenses   (971)
Net proceeds  $12,806 
      
Escrow receivable  $(2,850)
Net cash proceeds  $9,956 

 

 

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VASO CORPORATION AND SUBSIDIARIES

UNAUDITED PRO FORMA CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS AND COMPREHENSIVE LOSS

FOR THE THREE MONTHS ENDED MARCH 31, 2026

(in thousands, except share and per share data)

 

   As Reported1   Pro Forma Adjustments      Pro Forma 
Revenues               
Managed IT systems and services  $9,561   $(9,561)  (a)  $- 
Professional sales services   9,235    -       9,235 
Equipment sales and services   560    -       560 
Total revenues   19,356    (9,561)      9,795 
                   
Cost of revenues                  
Cost of managed IT systems and services   5,506    (5,506)  (a)   - 
Cost of professional sales services   2,013    -       2,013 
Cost of equipment sales and services   261    -       261 
Total cost of revenues   7,780    (5,506)      2,274 
Gross profit   11,576    (4,055)      7,521 
                   
Operating expenses                  
Selling, general and administrative   12,723    (4,365)  (b)   8,390 
         (58)  (c)     
         90  (c)     
Research and development   183    -       183 
Total operating expenses   12,906    (4,333)      8,573 
                   
Operating loss    (1,330)   278       (1,052)
                   
Other (expense) income                  
Interest and other income, net   259    (57)  (b)   202 
Loss on disposal of fixed assets   (4)   4   (b)   - 
Total other income, net   255    (53)      202 
                   
Loss before income taxes   (1,075)   225       (850)
Income tax benefit   188    (63)  (e)   125 
Net loss  $(887)  $162      $(725)
                   
Other comprehensive loss                  
Foreign currency translation gain (loss)   52    -       52 
Comprehensive loss  $(835)  $162      $(673)
                   
Loss per common share - basic and diluted  $(0.01)  $-      $(0.00)
Weighted average common shares outstanding - basic and diluted   175,953    -       175,953 

 

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VASO CORPORATION AND SUBSIDIARIES

UNAUDITED PRO FORMA CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME

FOR THE YEAR ENDED DECEMBER 31, 2025

(in thousands, except share and per share data)

 

   As Reported1   Pro Forma Adjustments      Pro Forma 
Revenues               
Managed IT systems and services  $42,465   $(39,289)  (a)  $3,176 
Professional sales services   44,191    -       44,191 
Equipment sales and services   2,440    -       2,440 
Total revenues   89,096    (39,289)      49,807 
                   
Cost of revenues                  
Cost of managed IT systems and services   25,032    (23,119)  (a)   1,913 
Cost of professional sales services   8,567    -       8,567 
Cost of equipment sales and services   825    -       825 
Total cost of revenues   34,424    (23,119)      11,305 
Gross profit   54,672    (16,170)      38,502 
                   
Operating expenses                  
Selling, general and administrative   52,196    (21,539)  (b)   30,775 
         (131)  (c)     
         249   (c)     
Research and development   728    -       728 
Impairment of goodwill   4,639    -       4,639 
Total operating expenses   57,563    (21,421)      36,142 
                   
Operating (loss) income   (2,891)   5,251       2,360 
                   
Other (expense) income                  
Interest and financing costs   (25)   25   (b)   - 
Interest and other income, net   790    (60)  (b)   730 
Gain on sale of subsidiary   827    824   (d)   1,651 
Loss on disposal of fixed assets   (7)   8   (b)   1 
Total other income, net   1,585    797       3,554 
                   
Loss before income taxes   (1,306)   6,048       4,742 
Income tax benefit   2,875    (1,455)  (e)   1,420 
Net income  $1,569   $4,593      $6,162 
                   
 Other comprehensive income                  
 Foreign currency translation gain (loss)   127    -       127 
 Comprehensive income  $1,696   $4,593      $6,289 
                   
Income per common share - basic and diluted  $0.01           $0.04 
Weighted average common shares outstanding - basic   175,814            175,814 
Weighted average common shares outstanding - diluted   175,995            175,995 

 

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VASO CORPORATION AND SUBSIDIARIES

NOTES TO UNAUDITED PRO FORMA CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)

 

(1) Vaso’s historical financial information has been derived from its First Quarter 2026 Form 10-Q and 2025 Form 10-K, as applicable.

 

(a) This adjustment reflects the elimination of revenues and cost of goods sold of Netwolves.

 

(b) This adjustment reflects the elimination of operating, administrative and other expenses of NetWolves.

 

(c) Reflects management’s estimates of certain historical costs for executive salaries and benefits in general and administrative expenses and sales and marketing expenses that were allocated to NetWolves. The historical costs were added back to the statement of operations for the year ended December 31, 2025 and for the three months ended March 31, 2026, respectively, as the costs would be incurred by the Company.

 

(d) This adjustment reflects the estimated gain of approximately $0.8 million arising from the transaction as of July 31, 2026. The gain recorded upon close was estimated and may be subject to change and will be based on actual amounts as of the close date. No adjustment has been made to the sale proceeds to give effect to any potential post-closing adjustments under the terms of the Purchase Agreement.

 

(e) This adjustment represents the estimated income tax effect of the pro-forma adjustments. The tax effect of the pro-forma adjustments was calculated using the historical statutory rates in effect for the periods presented.

  

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