Business Combination with Achari Ventures Holdings Corp. I is Expected to Be Completed in First Quarter of 2024
PLAINVIEW, NY / ACCESSWIRE / December 7, 2023 / Vaso Corporation (“Vaso,” or “the Company”), a diversified medical technology company currently trading on the OTCQX market, today announced its plan to uplist from the OTCQX market to the Nasdaq Stock Market via a business combination (the “Transaction”) with Achari Ventures Holdings Corp. I (“Achari”, NASDAQ:AVHI). Upon the closing of the Transaction, Vaso common stock and warrants are expected to be listed on Nasdaq Capital Market (“Nasdaq”) under the ticker symbols “VASO” and “VASOW”, respectively. Vaso’s common stock will continue to trade on the OTCQX market under the symbol “VASO” until trading on Nasdaq commences following the consummation of the proposed business combination.
Vaso is led by Chief Executive Officer Jun Ma, who will continue to lead the combined company following the proposed business combination. Achari is led by Chief Executive Officer Vikas Desai, who is also Chairman of Achari’s Board of Directors.
Company Overview
Vaso Corporation is a diversified medical technology company with several distinctive but related specialties: managed IT systems and services, including healthcare software solutions and network connectivity services; professional sales services for diagnostic imaging products; and design, manufacture and sale of proprietary medical devices.
The Company operates through three wholly owned subsidiaries:
Transaction Overview
The Transaction values Vaso at a pro forma equity value of approximately $176 million, at $10.00 per share. The Boards of Directors of Vaso and Achari have each approved the Transaction, the consummation of which is subject to various customary closing conditions, including the filing and effectiveness of a Registration Statement on Form S-4 (as amended or supplemented, the “Registration Statement”) by Achari with the United States Securities and Exchange Commission (“SEC”), the filing and clearance by the SEC of a proxy statement by Vaso and the approval of the stockholders of both Achari and Vaso of the proposed business combination (although Vaso shareholders representing 44% of Vaso’s outstanding shares have entered into support agreements committing them to vote in favor of the Transaction). The Transaction is expected to close in the first quarter of 2024.
Additional information, including a copy of the business combination agreement, will be provided in Current Reports on Form 8-K to be filed by each of Achari and Vaso with the SEC.
Advisors
Ladenburg Thalmann & Co. Inc. is serving as financial and capital markets advisor to Vaso. Katten Muchin Rosenman LLP is acting as legal advisor to Achari and Ortoli Rosenstadt LLP is acting as legal advisor to Vaso.
About Achari Ventures Holdings Corp. I
Achari Ventures Holdings Corp. I (NASDAQ:AVHI) is a blank check company formed for the purpose of effecting a merger, share exchange, asset acquisition, share purchase, reorganization or similar business combination with one or more businesses.
Additional Information and Where to Find It
Achari intends to file with the SEC the Registration Statement, which will include a preliminary proxy statement/prospectus of Achari, which will be both the proxy statement to be distributed to holders of shares of Achari’s common stock in connection with the solicitation of proxies for the vote by Achari’s stockholders with respect to the proposed business combination and related matters as may be described in the Registration Statement, as well as the prospectus relating to the offer and sale of the securities to be issued in the business combination. Vaso intends to file with the SEC (the “Company Proxy Statement”) a preliminary proxy statement of Vaso, which will be the proxy statement to be distributed to holders of shares of Vaso’s common stock in connection with the solicitation of proxies for the vote by Vaso’s stockholders with respect to the proposed business combination and related matters as may be described in the proxy statement.
After the Registration Statement is declared effective, Achari will mail a definitive proxy statement/prospectus and other relevant documents to its stockholders. After clearance from the SEC with respect to the Company Proxy Statement, Vaso will mail a definitive proxy statement and other relevant documents to its stockholders. Achari’s and Vaso’s stockholders and other interested persons are advised to read, when available, the preliminary proxy statement/prospectus to be filed by Achari, and any amendments thereto, the preliminary proxy statement to be filed by Vaso, and any amendments thereto, the definitive proxy statement/prospectus to be filed by Achari and the definitive proxy statement to be filed by Vaso, because such documentation will contain important information about Achari, Vaso and the proposed business combination. This press release is not a substitute for the Registration Statement, the Company Proxy Statement, the definitive proxy statement/prospectus to be filed by Achari, the definitive proxy statement to be filed by Vaso or any other document that Achari or Vaso will send to their respective stockholders in connection with the business combination.
INVESTORS AND SECURITY HOLDERS ARE ADVISED TO READ, WHEN AVAILABLE, THE REGISTRATION STATEMENT, PROXY STATEMENT/PROSPECTUS, COMPANY PROXY STATEMENT AND ANY OTHER RELEVANT DOCUMENTS FILED WITH THE SEC CAREFULLY AND IN THEIR ENTIRETY IF AND WHEN THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT THE BUSINESS COMBINATION AND THE PARTIES TO THE BUSINESS COMBINATION.
The definitive proxy statement/prospectus to be filed by Achari and the definitive proxy statement to be filed by Vaso will each be mailed to Achari and Vaso’s respective stockholders as of record dates to be established for voting on the proposed business combination and related matters. Stockholders of Achari and Vaso may obtain copies of the proxy statement/prospectus to be filed by Achari and the proxy statement to be filed by Vaso, when available, without charge, at the SEC’s website at www.sec.gov or by directing requests to each of: Vaso Corporation, 137 Commercial Street, Suite 200, Plainview, New York 11803 or Achari Ventures Holdings Corp. I, 60 Walnut Avenue, Suite 400, Clark, NJ 07066, as applicable.
INVESTMENT IN ANY SECURITIES DESCRIBED HEREIN HAS NOT BEEN APPROVED OR DISAPPROVED BY THE SEC OR ANY OTHER REGULATORY AUTHORITY NOR HAS ANY AUTHORITY PASSED UPON OR ENDORSED THE MERITS OF THE BUSINESS COMBINATION OR THE ACCURACY OR ADEQUACY OF THE INFORMATION CONTAINED HEREIN. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE
Participants in Solicitation
This press release is not a solicitation of a proxy from any investor or security holder. However, Achari and Vaso and their respective directors, officers and other members of their management and employees may be deemed to be participants in the solicitation of proxies from Achari’s and Vaso’s stockholders with respect to the proposed business combination and related matters. Investors and security holders may obtain more detailed information regarding the names, affiliations and interests of the directors and officers of Achari and Vaso in the proxy statement/prospectus to be filed by Achari relating to the proposed business combination when it is filed with the SEC and the proxy statement to be filed by Vaso relating to the proposed business combination when it is filed with the SEC. These documents may be obtained free of charge from the sources indicated above.
No Offer or Solicitation
This press release is for informational purposes only, and is not intended to and shall not constitute an offer to sell or the solicitation of an offer to sell or the solicitation of an offer to buy or subscribe for any securities or a solicitation of any vote of approval, nor shall there be any sale, issuance or transfer of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. No offer of securities shall be made except by means of a prospectus meeting the requirements of Section 10 of the Securities Act of 1933, as amended, and otherwise in accordance with applicable law.
Forward-Looking Statements
Certain statements in this press release are “forward-looking statements” within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act. Such forward-looking statements are often identified by words such as “believe,” “may,” “will,” “estimate,” “continue,” “anticipate,” “intend,” “expect,” “should,” “would,” “plan,” “predict,” “forecasted,” “projected,” “potential,” “seem,” “future,” “outlook,” and similar expressions that predict or indicate future events or trends or otherwise indicate statements that are not of historical matters, but the absence of these words does not mean that a statement is not forward-looking. These forward-looking statements and factors that may cause actual results to differ materially from current expectations include, but are not limited to: (i) the effect of changes taking place across the intersection of the information technology and healthcare industries, (ii) continuation of the Company’s agreement with a major healthcare diagnostic imaging equipment manufacturer, (iii) the impact of competitive technology and products and their pricing on the Company’s technology and products, (iv) medical insurance reimbursement policies, (v) unexpected manufacturing or supplier problems, (vi) unforeseen difficulties and delays in product development programs, (vii) the actions of regulatory authorities and third-party payors in the United States and overseas, and (viii) the risk factors reported from time to time in the Company’s and Achari’s SEC reports. The forgoing factors are not exhaustive and additional factors that may cause actual results to differ materially from current expectations include, but are not limited to: (1) the occurrence of any event, change or other circumstances that could give rise to the termination of negotiations and any subsequent definitive agreements with respect to the business combination; (2) the outcome of any legal proceedings that may be instituted against Achari or Vaso, the combined company or others following the announcement of the business combination and any definitive agreements with respect thereto; (3) the inability to complete the business combination due to the failure to obtain approval of the stockholders of Achari or Vaso or to satisfy other conditions to closing; (4) changes to the proposed structure of the business combination that may be required or appropriate as a result of applicable laws or regulations or as a condition to obtaining regulatory approval of the business combination; (5) the ability to meet stock exchange listing standards following the consummation of the business combination; (6) the risk that the business combination disrupts current plans and operations of Vaso as a result of the announcement and consummation of the business combination; (7) the ability to recognize the anticipated benefits of the business combination, which may be affected by, among other things, competition, the ability of the combined company to grow and manage growth profitably, maintain key relationships and retain its management and key employees; (8) costs related to the business combination; (9) changes in applicable laws or regulations; (10) the possibility that Vaso or the combined company may be adversely affected by other economic, business, and/or competitive factors and (11) Vaso’s estimates of expenses and profitability. The foregoing list of factors is not exhaustive.
The reader should carefully consider the foregoing factors and the other risks and uncertainties described in the “Risk Factors” section of Achari’s final prospectus dated October 14, 2021 (Registration No. 333-258476), related to its initial public offering, Achari’s and Vaso’s Annual Reports on Form 10-K filed with the SEC and other documents filed by Achari and Vaso from time to time with the SEC.
The reader is cautioned not to place undue reliance on these forward-looking statements, which only speak as of the date made, are not a guarantee of future performance and are subject to a number of uncertainties, risks, assumptions and other factors, many of which are outside the control of Achari and Vaso. Achari and Vaso expressly disclaim any obligations or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in the expectations of Achari or Vaso with respect thereto or any change in events, conditions or circumstances on which any statement is based.
Investor Contacts
For Vaso:
Michael J. Beecher
Investor Relations
Phone: 516-997-4600
Email: mbeecher@vasocorporation.com
For Achari:
Rob Kelly
MATTIO Communications
416-992-4539
AchariSpac@mattio.com
Making it the sixth consecutive quarter of profitability
PLAINVIEW, NY / ACCESSWIRE / November 14, 2023 / Vaso Corporation (“Vaso”) (OTCQX:VASO) today reported its operating results for the three months ended September 30, 2023.
“For the third quarter of 2023, the Company’s revenue was $19.4 million, compared to the prior year’s third quarter revenue of $19.8 million. The slight decrease in revenue was mainly due to lower deliveries of underlying equipment during the quarter by our partner in the professional sales services segment. Net income for the quarter was $1.2 million, down from $2.3 million for the same quarter of 2022, as operating expenses increased due to investment in new programs and the impact of inflation,” commented Dr. Jun Ma, President and Chief Executive Officer of Vaso Corporation. “While we experienced year-over-year declines in quarterly revenue and profit following significant growth in previous periods, year-to-date results for the nine-month period ended September 30, 2023 remain solid; specifically, revenue increased by $3.0 million to $59.1 million, and net income increased by $0.5 million to $3.7 million, when compared to the corresponding nine months of 2022.”
“As the Company continues to generate positive operating cashflow, which was $6.9 million during the first nine months of the year, our balance sheet continues to be strong, with $26.9 million in cash, cash equivalents and short-term investments at the end of the third quarter, an increase of $8.2 million from a year before. Total deferred revenue as of September 30, 2023 maintained at a high level of $33.2 million, which will be recognized as revenue in the future reporting periods when the underlying products or services are delivered,” Dr. Ma continued.
“We are cautiously optimistic about the Company’s performance for the remainder of the year, as historically the fourth quarter has been the quarter with highest revenue and income of the year due to the cyclical nature of our business.” concluded Dr. Ma.
Financial Results for Three Months Ended September 30, 2023
Total revenue for the three months ended September 30, 2023 was $19.4 million, representing a slight decrease of 2% from revenue of $19.8 million for the same period in the prior year. On a segment basis, revenue in the professional sales services segment decreased $0.4 million or 4% year-over-year, mainly as a result of lower volume of underlying equipment delivered by our partner, partially offset by a higher blended commission rate during the period on those deliveries; revenue in the IT segment increased $31,000 compared to the third quarter of 2022, while revenue in the equipment segment decreased $15,000 or 2% due to lower equipment deliveries in our China operations, partially offset by a revenue increase in our US operations.
Gross profit for the three months ended September 30, 2023 decreased by $0.4 million, or 3%, to $12.0 million, from $12.4 million for the third quarter of 2022. This decrease was mainly due to the decrease in revenue in the professional sales services segment.
Selling, general and administrative (SG&A) expenses for the third quarter of 2023 increased by 10% to $10.9 million when compared to the third quarter of 2022. The increase is primarily attributable to higher personnel costs in the professional sales services segment as compared to 2022, due to an expansion of services for our partner.
Net income for the three months ended September 30, 2023 was $1.2 million, compared to net income of $2.3 million for the three months ended September 30, 2022. The principal cause of the decrease in net income is the decrease in gross profit and the increase in SG&A expenses discussed above.
Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization, adjusted for non-cash stock-based compensation) was $1.2 million for the quarter ended September 30, 2023, compared to $2.6 million for the third quarter of 2022. The decrease is the result of the decrease in net income.
Net cash provided by operating activities in the first nine months of 2023 was $6.9 million, compared to $12.7 million for the same period in 2022. As of September 30, 2023 and December 31, 2022, the Company had cash, cash equivalents and short term investments of approximately $26.9 million and $20.3 million, respectively, an increase of $6.6 million.
About Vaso
Vaso Corporation is a diversified medical technology company with several distinctive but related specialties: managed IT systems and services, including healthcare software solutions and network connectivity services; professional sales services for diagnostic imaging products; and design, manufacture and sale of proprietary medical devices.
The Company operates through three wholly owned subsidiaries:
Summarized Financial Information
Except for historical information contained in this release, the matters discussed are forward-looking statements that involve risks and uncertainties. When used in this report, words such as “anticipates”, “believes”, “could”, “estimates”, “expects”, “may”, “optimistic”, “plans”, “potential” and “intends” and similar expressions, as they relate to the Company or its management, identify forward-looking statements. Such forward-looking statements are based on the beliefs of the Company’s management, as well as assumptions made by and information currently available to the Company’s management. Among the factors that could cause actual results to differ materially are the following: the effect of business and economic conditions, including the impact of the current COVID-19 pandemic; the effect of the dramatic changes taking place in IT and healthcare; continuation of the GEHC agreement; the impact of competitive technology and products and their pricing; medical insurance reimbursement policies; unexpected manufacturing or supplier problems; unforeseen difficulties and delays in product development programs; the actions of regulatory authorities and third-party payers in the United States and overseas; and the risk factors reported from time to time in the Company’s SEC reports. The Company undertakes no obligation to update forward-looking statements as a result of future events or developments.
Investor Contact:
Michael J. Beecher
Investor Relations
Phone: 516-997-4600
Email: mbeecher@vasocorporation.com
PLAINVIEW, NY / September 25, 2023 / Vaso Corporation (“Vaso”) (OTCQB:VASO) today announced that its application to trade on the OTCQX Best Market has been approved by OTC Markets Group, with the beginning of trading on OTCQX expected to be on September 26, 2023.
The OTCQX Market provides investors with a premium U.S. public market to research and trade the shares of investor-focused companies. Graduating from OTCQB Venture Market, which the Company has been trading on for over 11 months, to the OTCQX Best Market marks an important milestone for our Company, enabling the Company to demonstrate its qualifications and build visibility among U.S. investors. To qualify for OTCQX, companies must meet high financial standards, follow best practice corporate governance, and demonstrate compliance with applicable securities laws.
“The OTCQX Best Market, the highest tier, is for established, investor-focused companies that are distinguished by the integrity of their operations and diligence with which they convey their qualifications. Vaso Corporation is pleased to be qualified to upgrade to this premium capital market. Trading on OTCQX should provide our shareholders and investors with better market visibility and potentially increase trading liquidity,” commented Dr. Jun Ma, President and CEO of Vaso Corporation. “Combined with our strong financial position, such a development could enhance shareholder value of our Company.”
More information regarding OTCQX eligibility requirements, etc. can be found on https://www.otcmarkets.com.
About Vaso
Vaso Corporation is a diversified medical technology company with several distinctive but related specialties: managed IT systems and services, including healthcare software solutions and network connectivity services; professional sales services for diagnostic imaging products; and design, manufacture and sale of proprietary medical devices.
The Company operates through three wholly owned subsidiaries:
Except for historical information contained in this release, the matters discussed are forward-looking statements that involve risks and uncertainties. When used in this report, words such as “anticipates”, “believes”, “could”, “estimates”, “expects”, “may”, “optimistic”, “plans”, “potential” and “intends” and similar expressions, as they relate to the Company or its management, identify forward-looking statements. Such forward-looking statements are based on the beliefs of the Company’s management, as well as assumptions made by and information currently available to the Company’s management. Among the factors that could cause actual results to differ materially are the following: the effect of business and economic conditions, including the impact of the current COVID-19 pandemic; the effect of the dramatic changes taking place in IT and healthcare; continuation of the GEHC agreement; the impact of competitive technology and products and their pricing; medical insurance reimbursement policies; unexpected manufacturing or supplier problems; unforeseen difficulties and delays in product development programs; the actions of regulatory authorities and third-party payers in the United States and overseas; and the risk factors reported from time to time in the Company’s SEC reports. The Company undertakes no obligation to update forward-looking statements as a result of future events or developments.
Investor Contact:
Michael J. Beecher
Investor Relations
Phone: 516-997-4600
Email: mbeecher@vasocorporation.com
Company reports continued growth in revenue and record profitability
PLAINVIEW, NY / August 14, 2023 / Vaso Corporation (“Vaso”) (OTCQB:VASO) today reported its operating results for the three months ended June 30, 2023.
“For the quarter ended June 30, 2023, the Company recorded a total revenue of $20.4 million, representing a 5% growth from the same period last year, thanks to the great performance from all three of our business units,” commented Dr. Jun Ma, President and Chief Executive Officer of Vaso Corporation. “Gross profit for the quarter increased by 13% year-over-year, to $12.8 million, as a result of increased revenue and higher gross margin. Quarterly net income was also up significantly, to $2.1 million from prior year’s $1.5 million, making the quarter the most profitable second quarter in the history of the Company.”
“The Company continued to generate positive cashflow from operating activities, in the amount of $8.0 million during the second quarter of 2023. Furthermore, our balance sheet remains strong, with $26.1 million in cash, cash equivalents and short-term investments as of June 30, 2023, up from $15.9 million a year before, and total deferred revenue reached another historical high of $33.6 million at the end of second quarter,” Dr. Ma continued.
“We are very pleased with the operating results for the second quarter of the year, especially when the growth was from areas where we have spent resources to develop: our healthcare IT business in VasoTechnology, our new ultrasound sales program for GEHC in VasoHealthcare, and our ARCS® cloud-based software-as-a-service (SaaS) subscription program in VasoMedical. We continue to concentrate our efforts to maintain continued growth and profitability,” concluded Dr. Ma.
Financial Results for Three Months Ended June 30, 2023
For the three months ended June 30, 2023, total revenue increased 5% to $20.4 million from $19.5 million for the same period of 2022. Revenue in our IT segment increased by $416 thousand or 4% when compared to the second quarter of 2022, mostly because of growth in the healthcare IT business. Revenue in the professional sales service segment increased by $400 thousand or 5% when compared to the second quarter of 2022, due primarily to the new GEHC ultrasound sales program beginning in the second quarter of 2023. Revenue in the equipment segment increased by $119 thousand or 19% when compared to the same quarter of last year, due to higher sales of ARCS® cloud software subscription in the US and higher equipment deliveries in our China operations.
Gross profit for the second quarter of 2023 was $12.8 million, compared to $11.3 million for the same quarter of 2022, representing an increase of 13% year over year. This increase was primarily the result of the increase in revenue and higher gross margin for the period.
Selling, general and administrative (SG&A) expenses for the second quarter of 2023 increased 11% to $10.6 million, when compared to the second quarter of 2022. The increase is primarily attributable to additional headcount for the new GEHC ultrasound sales program and higher travel and personnel costs in the professional sales service segment and higher personnel costs in the China operations, partially offset by a decrease in expenses in the IT segment.
Net income for the three months ended June 30, 2023 was $2.1 million, compared to net income of $1.5 million in the second quarter 2022, representing an increase of $577 thousand, or 39%.
Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization and non-cash stock-based compensation) was $2.2 million for the three months ended June 30, 2023, compared to $2.3 million for the same period a year ago.
Net cash provided by operating activities in the first six months of 2023 was $6.0 million, compared to cash provided by operations of $9.7 million for the same period in 2022. As of June 30, 2023 and December 31, 2022, the Company had cash, cash equivalents and short-term investments of approximately $26.1 million and $20.3 million, respectively.
About Vaso
Vaso Corporation is a diversified medical technology company with several distinctive but related specialties: managed IT systems and services, including healthcare software solutions and network connectivity services; professional sales services for diagnostic imaging products; and design, manufacture and sale of proprietary medical devices.
The Company operates through three wholly owned subsidiaries:
Except for historical information contained in this release, the matters discussed are forward-looking statements that involve risks and uncertainties. When used in this report, words such as “anticipates”, “believes”, “could”, “estimates”, “expects”, “may”, “optimistic”, “plans”, “potential” and “intends” and similar expressions, as they relate to the Company or its management, identify forward-looking statements. Such forward-looking statements are based on the beliefs of the Company’s management, as well as assumptions made by and information currently available to the Company’s management. Among the factors that could cause actual results to differ materially are the following: the effect of business and economic conditions, including the impact of the current COVID-19 pandemic; the effect of the dramatic changes taking place in IT and healthcare; continuation of the GEHC agreement; the impact of competitive technology and products and their pricing; medical insurance reimbursement policies; unexpected manufacturing or supplier problems; unforeseen difficulties and delays in product development programs; the actions of regulatory authorities and third-party payers in the United States and overseas; and the risk factors reported from time to time in the Company’s SEC reports. The Company undertakes no obligation to update forward-looking statements as a result of future events or developments.
Investor Contact:
Michael J. Beecher
Investor Relations
Phone: 516-997-4600
Email: mbeecher@vasocorporation.com
Revenue and Profitability Continued to Improve Year-over-year
PLAINVIEW, NY / May 15, 2023 / Vaso Corporation (“Vaso”) (OTCQB:VASO) today reported its operating results for the three months ended March 31, 2023.
“The Company recorded a total revenue of $19.2 million for the first quarter of 2023, a growth of $2.2 million or 13.0% when compared to the same quarter last year. Quarterly gross profit reached $11.7 million, up by 19.9% year-over-year, as a result of higher revenue and higher gross profit margin,” stated Dr. Jun Ma, President and Chief Executive Officer of Vaso Corporation. “We have also achieved profitability in the first quarter of the year, with quarterly net income of $0.5 million versus prior year’s quarterly net loss of $0.3 million, which is particularly noteworthy as we usually incur losses in the early quarters of the year due to the seasonality of our businesses.”
“We were able to deliver these great results thanks to the revenue growth and improved operational efficiency in all three of our business units. As the Company’s balance sheet remains strong as well, the management is looking forward to another great year in 2023,” concluded Dr. Ma.
Financial Results for Three Months Ended March 31, 2023
For the three months ended March 31, 2023, revenue increased by 13.0% to $19.2 million from $17.0 million for the same period of 2022, due primarily to the increase of $1.7 million, or 25.8%, in revenue in our professional sales service segment as the result of higher equipment deliveries and a higher blended commission rate during the quarter. In addition, revenue in our IT segment increased by $271 thousand, or 2.7%, in the first quarter 2023 when compared to the same quarter of 2022, due to higher revenue in both the NetWolves and Vasohealthcare IT businesses; and our equipment segment revenue increased by $238 thousand, or 59.7%, when compared to the first quarter of 2022, principally due to higher equipment deliveries in our China operations.
Gross profit for the first quarter of 2023 increased by $1.9 million, or 19.9%, to $11.7 million, compared with a gross profit of $9.8 million for the same quarter of 2022, as a result of both higher revenues and higher gross profit margin, primarily in our professional sales service segment.
Selling, general and administrative (SG&A) expenses for the first quarter of 2023 increased by $1.1 million, or 11.4%, to $11.1 million, compared to the first quarter of 2022. The increase is primarily attributable to higher personnel costs across all three business segments as well as higher annual national sales meeting costs in our professional sales service segment.
Operating income for the three months ended March 31, 2023 was $410 thousand, compared to an operating loss of $354 thousand in the first quarter 2022, representing an improvement of $764 thousand, resulting from the increase in gross profit, partially offset by the increase in SG&A costs.
Net income for the three months ended March 31, 2023 was $454 thousand, a significant improvement over the loss of $344 thousand for the first quarter of 2022.
Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization, and stock-based compensation) improved to $639 thousand for the quarter, compared to $147 thousand in the first quarter of 2022.
Net cash used in operating activities was $1.9 million for the first quarter 2023, compared to net cash used in operating activities of $625 thousand for the first quarter of 2022. As of May 5, 2023, the Company’s net cash, cash equivalents and short-term investments totaled approximately $24.5 million.
About Vaso
Vaso Corporation is a diversified medical technology company with several distinctive but related specialties: managed IT systems and services, including healthcare software solutions and network connectivity services; professional sales services for diagnostic imaging products; and design, manufacture and sale of proprietary medical devices.
The Company operates through three wholly owned subsidiaries:
Except for historical information contained in this release, the matters discussed are forward-looking statements that involve risks and uncertainties. When used in this report, words such as “anticipates”, “believes”, “could”, “estimates”, “expects”, “may”, “optimistic”, “plans”, “potential” and “intends” and similar expressions, as they relate to the Company or its management, identify forward-looking statements. Such forward-looking statements are based on the beliefs of the Company’s management, as well as assumptions made by and information currently available to the Company’s management. Among the factors that could cause actual results to differ materially are the following: the effect of business and economic conditions, including the impact of the current COVID-19 pandemic; the effect of the dramatic changes taking place in IT and healthcare; continuation of the GEHC agreement; the impact of competitive technology and products and their pricing; medical insurance reimbursement policies; unexpected manufacturing or supplier problems; unforeseen difficulties and delays in product development programs; the actions of regulatory authorities and third-party payers in the United States and overseas; and the risk factors reported from time to time in the Company’s SEC reports. The Company undertakes no obligation to update forward-looking statements as a result of future events or developments.
Investor Contact:
Michael J. Beecher
Investor Relations
Phone: 516-997-4600
Email: mbeecher@vasocorporation.com
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