Exhibit 99.1
ASSURE HOLDINGS CORP.
Unaudited Pro Forma Condensed Consolidated Financial Information
On March 26, 2024, Assure Holdings Corp. (the “Company”) completed the sale of certain assets held by its direct and indirect wholly owned subsidiaries, Assure Neuromonitoring, LLC, Assure Networks, LLC, Assure Networks Texas Holdings, LLC and Assure Networks Texas Holdings II, LLC (collectively, the “Sellers”), pursuant to an Asset Purchase Agreement (the “APA”), dated as of March 11, 2024, as amended March 26, 2024, by and between the Company, the Sellers and National Neuromonitoring Services, LLC (“Purchaser”), for cash in the amount of $2.32 million, subject to customary closing and post-closing adjustments, if any. Post-closing adjustments are primarily associated with certain adjustments for the number of transferred employees and IONM systems remaining with Purchaser 30 days after the closing and indemnification obligations in accordance with the APA.
The sale of assets is considered a significant disposition for purposes of Item 2.01 of Form 8-K. Accordingly, the Company has prepared the accompanying unaudited pro forma condensed consolidated financial information in accordance with Article 11 of Regulation S-K.
The accompanying unaudited pro forma condensed consolidated balance sheet gives effect to the sale of assets under the APA as if it had occurred on September 30, 2023, the date of the Company’s most recently filed balance sheet. The accompanying unaudited pro forma condensed consolidated statement of operations for the year ended December 31, 2022 and the nine months ended September 30, 2023 gives effect to the sale of assets under the APA as if it had occurred on January 1, 2022.
The unaudited pro forma condensed consolidated financial information should be read in conjunction with: (i) the audited consolidated financial statements and notes as of and for the year ended December 31, 2022 and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” included in the Company’s Form 10-K for the year ended December 31, 2022 filed with the Securities and Exchange Commission (the “SEC”) on March 31, 2023 and (ii) the Company’s unaudited condensed consolidated financial statements and notes as of and for the period ended September 30, 2023 and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” included in the Company’s Form 10-Q for the quarterly period ended September 30, 2023 filed with the SEC on December 22, 2023.
The unaudited pro forma condensed consolidated financial information is presented based on assumptions, adjustments and currently available information described in the accompanying notes and is intended for informational purposes only. The unaudited pro forma condensed consolidated financial information is not necessarily indicative of what the Company’s results of operations or financial condition would have been had the sale of the assets occurred on the dates assumed. In addition, it is not necessarily indicative of the Company’s future results of operations or financial condition.
| Historical | Asset Sale | Proforma | ||||||||||||
| September 30, 2023 | Adjust | September 30, 2023 | ||||||||||||
| (unaudited) | (unaudited) | (unaudited) | ||||||||||||
| ASSETS | ||||||||||||||
| Current assets | ||||||||||||||
| Cash | $ | 634 | $ | 2,320 | 1 | $ | 2,954 | |||||||
| Accounts receivable, net | 6,013 | 6,013 | ||||||||||||
| Other current assets | 862 | 2,180 | 2 | 3,042 | ||||||||||
| Due from MSAs | 4,394 | 4,394 | ||||||||||||
| Assets held for sale | 2,435 | (2,435 | ) | 3 | — | |||||||||
| Total current assets | 14,338 | 2,065 | 16,403 | |||||||||||
| Equity method investments | 262 | 262 | ||||||||||||
| Operating lease right of use asset, net | 692 | 692 | ||||||||||||
| Total assets | $ | 15,292 | $ | 2,065 | $ | 17,357 | ||||||||
| LIABILITIES AND SHAREHOLDERS’ EQUITY (DEFICIT) | ||||||||||||||
| LIABILITIES | ||||||||||||||
| Current liabilities | ||||||||||||||
| Accounts payable and accrued liabilities | $ | 5,193 | $ | $ | 5,193 | |||||||||
| Current portion of debt | 3,238 | 3,238 | ||||||||||||
| Current portion of lease liability | 632 | (266 | ) | 4 | 366 | |||||||||
| Current portion of acquisition liability | 505 | 505 | ||||||||||||
| Other current liabilities | 20 | 20 | ||||||||||||
| Total current liabilities | 9,588 | (266 | ) | 9,322 | ||||||||||
| Lease liability, net of current portion | 653 | (218 | ) | 4 | 435 | |||||||||
| Debt, net of current portion | 10,232 | 10,232 | ||||||||||||
| Acquisition liability, net of current portion | 272 | 272 | ||||||||||||
| Deferred income taxes, net | 616 | 616 | ||||||||||||
| Total liabilities | 21,361 | (484 | ) | 20,877 | ||||||||||
| SHAREHOLDERS’ EQUITY (DEFICIT) | ||||||||||||||
| Common stock | 27 | 27 | ||||||||||||
| Additional paid-in capital | 55,475 | 55,475 | ||||||||||||
| Accumulated deficit | (61,571 | ) | 2,549 | (59,022 | ) | |||||||||
| Total shareholders’ equity (deficit) | (6,069 | ) | 2,549 | (3,520 | ) | |||||||||
| Total liabilities and shareholders’ equity (deficit) | $ | 15,292 | $ | 2,065 | $ | 17,357 | ||||||||
| 1. Cash received |
| 2. Earnout value - need to complete the valuation of the earnout. |
| 3. Assets sold |
| 4. Elimination of lease liabilties associated with leased assets sold |
| Historical | Proforma | |||||||||||||
| Year ended | Asset Sale | Year ended | ||||||||||||
| December 31, 2022 | Adjust | December 31, 2022 | ||||||||||||
| (unaudited) | (unaudited) | (unaudited) | ||||||||||||
| Revenue | ||||||||||||||
| Technical services | $ | 825 | $ | (825 | ) | 5 | $ | — | ||||||
| Professional services | 7,498 | (7,498 | ) | 5 | — | |||||||||
| Other | 2,653 | (2,182 | ) | 5 | 471 | |||||||||
| Total revenue | 10,976 | (10,505 | ) | 471 | ||||||||||
| Cost of revenues | 15,190 | (12,658 | ) | 2,532 | ||||||||||
| Gross margin | (4,214 | ) | 2,153 | (2,061 | ) | |||||||||
| Operating expenses | ||||||||||||||
| General and administrative | 15,065 | — | 15,065 | |||||||||||
| Sales and marketing | 945 | (945 | ) | 5 | — | |||||||||
| Depreciation and amortization | 4,060 | (4,051 | ) | 5 | 9 | |||||||||
| Impairment charge | 3,540 | — | 3,540 | |||||||||||
| Total operating expenses | 23,610 | (4,996 | ) | 18,614 | ||||||||||
| Loss from operations | (27,824 | ) | 7,149 | (20,675 | ) | |||||||||
| Other income (expenses) | ||||||||||||||
| Income from equity method investments | 39 | — | 39 | |||||||||||
| Gain on Paycheck Protection Program loan forgiveness | 1,665 | — | 1,665 | |||||||||||
| Interest expense | (1,739 | ) | 100 | 5 | (1,639 | ) | ||||||||
| Other expense, net | (1,370 | ) | — | (1,370 | ) | |||||||||
| Accretion expense | (681 | ) | — | (681 | ) | |||||||||
| Total other expense, net | (2,086 | ) | 100 | (1,986 | ) | |||||||||
| Loss from continuing operations before income taxes | (29,910 | ) | 7,249 | (22,661 | ) | |||||||||
| Income tax expense on continuing operations | (202 | ) | — | (202 | ) | |||||||||
| Net loss | $ | (30,112 | ) | $ | 7,249 | $ | (22,863 | ) | ||||||
| Loss per share | ||||||||||||||
| Basic | $ | (40.06 | ) | $ | 9.64 | $ | (30.42 | ) | ||||||
| Diluted | $ | (40.06 | ) | $ | 9.64 | $ | (30.42 | ) | ||||||
| Weighted average number of shares used in per share calculation – basic | 751,659 | 751,659 | 751,659 | |||||||||||
| Weighted average number of shares used in per share calculation – diluted | 751,659 | 751,659 | 751,659 | |||||||||||
| 5. Eliminate discontinued operations associated with asset sale |
| Historical | Proforma | ||||||||||||
| Nine months ended | Asset Sale | Nine months ended | |||||||||||
| September 30, 2023 | Adjust | September 30, 2023 | |||||||||||
| (unaudited) | (unaudited) | (unaudited) | |||||||||||
| Revenue, net | $ | 226 | $ | — | $ | 226 | |||||||
| Cost of revenues | 1,998 | — | 1,998 | ||||||||||
| Gross margin | (1,772 | ) | — | (1,772 | ) | ||||||||
| Operating expenses | |||||||||||||
| General and administrative | 10,105 | — | 10,105 | ||||||||||
| Bad debt expense related to termination of managed service agreements | 84 | — | 84 | ||||||||||
| Depreciation and amortization | 6 | — | 6 | ||||||||||
| Total operating expenses | 10,195 | — | 10,195 | ||||||||||
| Loss from operations | (11,967 | ) | — | (11,967 | ) | ||||||||
| Other income (expenses) | |||||||||||||
| Income from equity method investments | 38 | — | 38 | ||||||||||
| Interest income | 11 | — | 11 | ||||||||||
| Interest expense | (1,511 | ) | — | (1,511 | ) | ||||||||
| Other income, net | 329 | — | 329 | ||||||||||
| Accretion expense | (511 | ) | — | (511 | ) | ||||||||
| Total other expense, net | (1,644 | ) | — | (1,644 | ) | ||||||||
| Loss from continuing operations before income taxes | (13,611 | ) | — | (13,611 | ) | ||||||||
| Income tax benefit on continuing operations | 171 | — | 171 | ||||||||||
| Loss from continuing operations | (13,440 | ) | — | (13,440 | ) | ||||||||
| Loss from discontinued operations, net of tax | (3,575 | ) | 3,575 | 5 | — | ||||||||
| Net loss | $ | (17,015 | ) | $ | 3,575 | $ | (13,440 | ) | |||||
| Loss per share | |||||||||||||
| Basic | $ | (4.89 | ) | $ | 1.03 | $ | (3.86 | ) | |||||
| Diluted | $ | (4.89 | ) | $ | 1.03 | $ | (3.86 | ) | |||||
| Weighted average number of shares used in per share calculation – basic | 3,480,014 | 3,480,014 | 3,480,014 | ||||||||||
| Weighted average number of shares used in per share calculation – diluted | 3,480,014 | 3,480,014 | 3,480,014 | ||||||||||
| 5. Eliminate discontinued operations associated with asset sale |
ASSURE HOLDINGS CORP.
NOTES TO UNAUDITED PRO FORMA CONDENSED CONSOLIDATED FINANCIAL INFORMATION
The following describes the pro forma adjustments reflected in the presentation of the accompanying pro forma condensed consolidated balance sheet and pro forma condensed consolidated statements of operations:
| (1) | Adjustment reflects the cash consideration received as if the closing date of the sale occurred on September 30, 2023. |
| (2) | Adjustment reflects value of potential cash earnout payment. |
| (3) | Adjustments reflects value of assets sold as if the closing date of the sale occurred on September 30, 2023. |
| (4) | Adjustment reflects the elimination of lease liabilities associated with leased assets sold. |
| (5) | Adjustment to reflect the elimination of discontinued operations associated with sale of assets. |