EX-99.1 3 ea027437901ex99-1_escalon.htm UNAUDITED PRO FORMA CONDENSED CONSOLIDATED FINANCIAL STATEMENTS OF ESCALON MEDICAL CORP

Exhibit 99.1

 

ESCALON MEDICAL CORP.

 

UNAUDITED PRO FORMA CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

 

Introductory Note

 

On January 23, 2026, Escalon Medical Corp., a Pennsylvania corporation (the “Company”, “we” or “our”) consummated the transactions contemplated by that certain Asset Purchase Agreement by and between the Company and Optos Public Limited Company, a company incorporated in Scotland (“Optos”) (as amended, the “Asset Purchase Agreement”). Pursuant to the Asset Purchase Agreement, the Company sold to Optos certain software-related assets associated with the Company’s AXIS platform (the “Disposition”) in exchange for the aggregate purchase price of $3,000,000. The purchase price is payable in three milestone installments, each in the amount and subject to the conditions as set forth in the Asset Purchase Agreement, in addition to $25,000 which was paid upon the execution by the Company and Optos of a term sheet with respect to the Disposition. On January 23, 2026, the Company completed the Disposition and received the first milestone installment in the amount of $1,000,000.

 

The pro forma condensed consolidated balance sheet for the Company as of September 30, 2025 has been prepared as if the Disposition had occurred as of September 30, 2025. Our pro forma condensed consolidated statements of operations for the three months ended September 30, 2025 and for the year ended June 30, 2025 have been prepared based on our historical financial statements as if the Disposition had occurred on July 1, 2024.

 

The pro forma condensed consolidated financial information for the three months ended September 30, 2025 should be read in conjunction with our historical condensed consolidated financial statements and notes thereto in our Quarterly Report on Form 10-Q as of and for the three months ended September 30, 2025. The pro forma condensed consolidated financial information for the fiscal year ended June 30, 2025 should be read in conjunction with our historical condensed consolidated financial statements and notes thereto in our Annual Report on Form 10-K for the year ended June 30, 2025.

 

The unaudited pro forma condensed consolidated financial statements are prepared in accordance with Article 11 of Regulation S-X. 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 Current Report on Form 8-K.

 

The unaudited pro forma financial information is based on financial statements prepared in accordance with U.S. generally accepted accounting principles, which are subject to change and interpretation. The unaudited pro forma condensed consolidated financial statements were based on and derived from our historical condensed consolidated financial statements, adjusted for those amounts which were determined to be directly attributable to the Disposition, factually supportable, and with respect to the unaudited pro forma condensed consolidated statements of operations, expected to have a continuing impact on our consolidated results. Actual adjustments, however, may differ materially from the information presented. Pro forma adjustments do not include allocations of corporate costs, as those are not directly attributable to the Disposition.

 

In addition, the unaudited pro forma financial information is based upon available information and assumptions that management considers to be reasonable, and such assumptions have been made solely for purposes of developing such unaudited pro forma financial information for illustrative purposes in compliance with the disclosure requirements of the SEC. The unaudited pro forma financial information is not necessarily indicative of what the financial position or income statement results would have actually been had the Disposition occurred on the dates indicated. As a result of the factors above, these unaudited pro forma condensed consolidated financial statements should not be considered to be indicative of our future consolidated financial performance or results. The provisional accounting for the Disposition is preliminary and therefore subject to change. Any such changes could have a material effect on the pro forma condensed consolidated financial information.

 

 

ESCALON MEDICAL CORP. AND SUBSIDIARIES

PRO FORMA CONDENSED CONSOLIDATED BALANCE SHEET

As of September 30, 2025

(Unaudited)

 

   Historical   Transaction Accounting Adjustments   Notes  Pro Forma 
ASSETS               
Current assets:               
Cash  $615,791   $923,750   (a)  $1,539,541 
Restricted cash   256,582    —       256,582 
Accounts receivable   1,412,003    —       1,412,003 
Less: allowance for credit losses   (75,177)   —       (75,177)
Accounts receivable, net  $1,336,826   $—      $1,336,826 
Other receivables   0    1,975,000   (b)   1,975,000 
Inventory   1,746,324    —       1,746,324 
Other current assets   267,060    —       267,060 
Total current assets  $4,222,583   $2,898,750      $7,121,333 
Property and equipment, net   35,752    (898)  (c)   34,854 
Lease ROU assets   235,636    —       235,636 
License and patent   24,880    (16,388)  (d)   8,492 
Other long term assets   62,788    —       62,788 
Total assets  $4,581,639   $2,881,464      $7,463,103 
LIABILITIES AND SHAREHOLDERS’ EQUITY                  
Current liabilities:                  
Current portion of note payable  $—   $—      $— 
Current portion of EIDL   38,329    —       38,329 
Accounts payable   3,232    —       3,232 
Accrued expenses   1,180,382    73,750   (e)   1,254,132 
Related party accrued interest   747,375    —       747,375 
Current portion of lease liabilities   112,389    —       112,389 
Deferred revenue   76,381    —       76,381 
Related Party Loan   277,468    —       277,468 
Other short-term liabilities   93,799    —       93,799 
Total current liabilities  $2,529,355   $73,750      $2,603,105 
Note payable, net of current portion   78,308    —       78,308 
Operating lease liabilities, net of current portion   160,422    —       160,422 
EIDL loan, net of current portion   138,299    —       138,299 
Total liabilities  $2,906,384   $73,750      $2,980,134 
                   
Shareholders equity:                  
Series A convertible preferred stock, $0.001 par value; 2,000,000 shares authorized; 2,000,000 shares issued and outstanding (liquidation value of $1,038,537 and $1,025,531)  $645,000   $—      $645,000 
Common stock, $0.001 par value; 35,000,000 shares authorized; 7,415,329 shares issued and outstanding   7,415    —       7,415 
Additional paid-in capital   69,702,043    —       69,702,043 
Accumulated deficit   (68,679,203)   2,807,714   (f)   (65,871,489)
Total shareholders’ equity  $1,675,255   $2,807,714      $4,482,969 
Total liabilities and shareholders’ equity  $4,581,639   $2,881,464      $7,463,103 

 

The accompanying notes are an integral part of these unaudited pro forma condensed consolidated financial statements.

 

2

 

ESCALON MEDICAL CORP. AND SUBSIDIARIES

PRO FORMA CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS

For the Three Months Ended September 30, 2025

(Unaudited)

 

   Historical   Transaction Accounting Adjustments   Notes  Pro Forma 
Net revenues:               
Products  $2,536,881   $(115,415)  (g)  $2,421,466 
Licenses and service plans   138,440    (125,471)  (g)   12,969 
Revenues, net  $2,675,321   $(240,886)  (g)  $2,434,435 
                   
Costs and expenses:                  
Cost of goods sold  $1,554,579   $(92,067)  (h)  $1,462,512 
Marketing, general and administrative   1,107,395    (53,027)  (h)   1,054,368 
Research and development   216,098    (132,980)  (h)   83,118 
Total costs and expenses  $2,878,072   $(278,074)     $2,599,998 
(Loss) income from operations  $(202,751)  $37,188      $(165,563)
                   
Other (expense) and income:                  
Other income/expense  $(32,797)  $2,807,714   (f)  $2,774,917 
Interest expense   (4,304)   —       (4,304)
Total other (expense) income   (37,101)   2,807,714       2,770,613 
Income tax   —    —       — 
Net (loss) income   (239,852)   2,844,902       2,605,050 
Less undeclared dividends on preferred stock   13,006    —       13,006 
Less net income allocated to convertible preferred stock   —    1,251,575       1,251,575 
Net (loss) income applicable to common shareholders  $(252,858)  $1,593,327      $1,340,469 
                   
Net (loss) income per share                  
Basic (loss) earning  per share  $(0.03)        $0.18 
Diluted (loss) earning per share  $(0.03)        $0.18 
Weighted average shares - basic   7,415,329           7,415,329 
Weighted average shares - diluted   7,415,329           14,338,909 

 

The accompanying notes are an integral part of these unaudited pro forma condensed consolidated financial statements.

 

3

 

ESCALON MEDICAL CORP. AND SUBSIDIARIES

PRO FORMA CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS

For the Year Ended June 30, 2025

(Unaudited)

 

   Historical   Transaction Accounting Adjustments   Note  Pro Forma 
Net revenues:               
Products  $11,514,336   $(303,911)  (g)  $11,210,425 
Licenses and service plans   531,812    (527,946)  (g)   3,866 
Revenues, net  $12,046,148   $(831,857)  (g)  $11,214,291 
                   
Costs and expenses:                  
Cost of goods sold  $6,535,090   $(383,329)  (h)  $6,151,761 
Marketing, general and administrative   4,624,711    (334,898)  (h)   4,289,813 
Research and development   753,130    (495,119)  (h)   258,011 
Total costs and expenses  $11,912,931   $(1,213,346)     $10,699,585 
Income from operations  $133,217   $381,489      $514,706 
                   
Other (expense) and income:                  
Other income/expense  $(5,000)  $2,802,417   (f)  $2,797,417 
Interest expense   (22,692)   —       (22,692)
Total other (expense) income   (27,692)   2,802,417       2,774,725 
Income tax   —    —       — 
Net income   105,525    3,183,906       3,289,431 
Less undeclared dividends on preferred stock   51,528    —       51,528 
Less net income allocated to convertible preferred stock   25,903    1,527,340       1,553,243 
Net income applicable to common shareholders  $28,094   $1,656,566      $1,684,660 
                   
Net earning  per share                  
Basic earning per share  $—         $0.23 
Diluted earning  per share  $—         $0.23 
Weighted average shares - basic   7,415,329           7,415,329 
Weighted average shares - diluted   14,252,202           14,252,202 

 

The accompanying notes are an integral part of these unaudited pro forma condensed consolidated financial statements.

4

 

ESCALON MEDICAL CORP. AND SUBSIDIARIES

NOTES TO UNAUDITED PRO FORMA CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

 

(a) Represents $1,000,000 first installment received and $76,250 transaction fee paid on the date of the Disposition.

 

(b) Represents $2,000,000 to be received less $25,000 refundable deposit associated with the Disposition.

 

(c) Represents fixed-assets write-off attributed to the Disposition.

 

(d) Represents the removal of intangible assets attributed to the Disposition.

 

(e) Represents the accrued transaction fee associated with the Disposition.

 

(f) Represents $2,803,700 gain from the Disposition and $1,283 fixed-assets write-off.

 

(g) Represents the removal of revenue directly attributed to the Disposition.

 

(h) Represents the removal of expenses directly attributed to the Disposition.

 

5