CORRECTION - Vaso Corporation Announces Financial Results for Fourth Quarter and Full Year 2024

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The Company Reports Continued Growth in Annual Revenue

PLAINVIEW, N.Y., March 31, 2025 (GLOBE NEWSWIRE) -- Please note that, in a release issued under the same headline earlier today by Vaso Corporation (OTCQX: VASO), some figures in the written description of the financial results for the three months and the full year were misstated. All figures in the financial tables were correct. The corrected release follows:

Vaso Corporation ("Vaso”) (OTCQX: VASO), a leading MedTech company with a diversified business portfolio in network and healthcare IT services, professional sales services, and proprietary medical products, today announced its operating results for the three months and year ended December 31, 2024.

"Continuing the trend of top-line growth, the Company's annual revenue reached another record of $86.8 million for the fiscal year 2024, an increase of $5.7 million or 7% when compared to the prior year's revenue,” commented Dr. Jun Ma, President and Chief Executive Officer of Vaso Corporation. "Gross profit for 2024 was $52.1 million, up by $1.5 million or 3% year-over-year, and net income for 2024 decreased to $1.0 million from $4.8 million in 2023, mainly due to higher operating expenses including investment in new programs and spending in strategy related activities during the year.”

"As we continued to generate positive cashflow from operating activities, at a rate of $3.3 million during fiscal year 2024, the Company's balance sheet remains strong, with $26.3 million in cash and cash equivalents as of December 31, 2024,” Dr. Ma continued. "Total deferred revenue increased by $2.7 million, or 8%, in 2024 to $34.9 million, which will be recognized as revenue in future reporting periods when the underlying products or services are delivered.”

"In the last several years we were able to sustain significant top-line growth and maintain bottom-line profitability, while at the same time generating a substantial amount of free cashflow. As a result, the Company's financial wellbeing has been improving consistently, setting a good foundation for further growth organically and through partnership or other external opportunities,” concluded Dr. Ma.

Financial Results for Three Months Ended December 31, 2024

For the three months ended December 31, 2024, revenue increased by 23.4% to $27.0 million from $21.9 million for the same period of 2023, due to higher revenues in all our business segments. Revenue in our IT segment increased by $1.3 million, or 13.6%, to $11.1 million as the result of higher network service and healthcare IT revenue; commission revenues in our professional sales service segment increased by $3.6 million, or 31.2%, to $15.0 million due to higher delivery of underlying equipment by our partner as well as higher blended commission rates for the delivered equipment; revenue in our equipment segment increased by $218 thousand, or 31.0%, to $921 thousand as a result of higher equipment sales in China, slightly offset by lower US software-as-a-service subscription sales.

Gross profit for the fourth quarter of 2024 increased by 22.6% to $17.2 million, compared with a gross profit of $14.1 million for the same quarter of 2023. The increase in gross profit was primarily the result of increased revenue.

Selling, general and administrative (SG&A) expenses for the fourth quarter of 2024 increased by 18.4% to $14.7 million, compared to $12.4 million for the fourth quarter of 2023. The increase was primarily attributable to an increase in personnel and travel costs in the professional sales service segment and the IT segment. SG&A expenses were 54.3% and 56.5% of revenue in the fourth quarter of 2024 and 2023, respectively.

Net income for the three months ended December 31, 2024 was $2.1 million, compared with net income of $1.1 million for the three months ended December 31, 2023. The increase was primarily due to the increase in revenue, partially offset by an increase in SG&A costs in 2024.

Financial Results for Year Ended December 31, 2024

For the year ended December 31, 2024, total revenue increased by $5.7 million, or 7.1%, to $86.8 million when compared with $81.0 million of revenue for the year 2023. Revenue in our IT segment increased by 6.4%, to $43.0 million, for the year 2024, from 2023 revenue of $40.4 million, primarily due to an increase in revenue in the managed network service business. Commission revenues in our professional sales service segment increased by $3.5 million, or 9.3%, to $41.3 million in the year 2024, compared to $37.8 million in 2023, primarily as the result of higher equipment deliveries by our partner and higher blended commission rates for the equipment delivered during the year. Equipment segment revenue for the year 2024 decreased by 12.5% to $2.5 million, from $2.8 million in 2023, due to lower ARCS^®-cloud software-as-a-service revenues and lower product sales in our China operations driven by a lower volume of deliveries and the negative effect of foreign exchange rate fluctuations in 2024.

Gross profit for the year ended December 31, 2024 increased by 2.9% to $52.1 million from $50.6 million in 2023, as a result of the higher revenue, partially offset by lower gross margin.

SG&A expenses for the year ended December 31, 2024 increased by $3.9 million, or 8.7%, to $49.0 million, or 56.5% of revenue, compared with $45.1 million, or 55.6% of revenue, for 2023. The increase resulted primarily from an increase of $2.2 million in personnel and travel costs in the professional sales service segment, as well as a $1.3 million increase in the IT segment, also due to higher personnel and travel costs. Corporate expenses increased $1.4 million, resulting from an increase in professional fees including legal, accounting and investment banking costs for the proposed business combination transaction with Achari, which we terminated in 2024.

For the year ended December 31, 2024, the Company had net income of $1.0 million compared to net income of $4.8 million in 2023, a decrease of $3.8 million, mainly due to higher operating expenses in 2024 as referenced above.

Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization, and share-based compensation) was $1.0 million for the year ended December 31, 2024, compared to Adjusted EBITDA of $5.1 million for the year ended December 31, 2023. The decrease was primarily due to the lower reported net income.

Net cash provided from operating activities in 2024 was $3.3 million, compared to net cash provided from operating activities of $5.3 million in 2023. The decrease was principally due to the decrease in net income. Net cash and short-term investments increased to $26.3 million as of December 31, 2024, compared to $25.3 million as of December 31, 2023.

Deferred revenue increased to $34.9 million as of December 31, 2024, compared to $32.2 million as of December 31, 2023. The increase was primarily the result of order bookings exceeding equipment deliveries in the professional sales service segment in 2024. Deferred revenue will be recognized in the future when the underlying equipment or services are delivered and accepted at the customer site.

About Vaso

Vaso Corporation is a diversified medical technology company with several distinct but related specialties: managed IT systems and services, including healthcare software solutions and network connectivity services; professional sales services for medical equipment; and design, manufacture, and sale of proprietary medical devices.

The Company operates through three wholly owned subsidiaries:

• VasoTechnology, Inc. provides network and IT services through two business units: NetWolves Network Services LLC, a managed network services provider with an extensive, proprietary service platform to a broad base of customers; and VasoHealthcare IT Corp., a national value added reseller of RIS (radiology Information system), PACS (picture archiving and communication system), and other software solutions from various vendors as well as related services, including implementation, management and support.
• Vaso Diagnostics, Inc. d.b.a. VasoHealthcare, provides professional sales services and is the operating subsidiary for the exclusive sales representation of GE HealthCare diagnostic imaging and ultrasound products in certain market segments in the USA.
• VasoMedical, Inc. manages and coordinates the design, manufacture and sales of proprietary medical equipment and software, as well as operates the Company's overseas assets including China-based subsidiaries.

Additional information is available on the Company's website at www.vasocorporation.com.

Summarized Financial Information

The information contained in this report contains forward-looking statements (as such term is defined in the Securities Exchange Act of 1934 and the regulations thereunder). These forward-looking statements may include projections of, or guidance on, the Company's future financial performance, expected levels of future revenue and expenses, anticipated growth strategies, and anticipated trends in the Company's business or financial results. When used in this report, words such as "anticipates”, "continue”, "believes”, "could”, "estimates”, "expects”, "may”, "plans”, "potential”, "future”, "intends”, the negative of these terms and similar expressions identify forward-looking statements. Any forward-looking statement made by the Company in this document is based only on the Company's current expectations, estimates and projections about future events and financial trends affecting the financial condition of its business based on information currently available to the Company and speaks only as of the date when made. Forward-looking statements are not historical facts or guarantees of future performance. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of the Company's control, and actual results may differ materially from this forward-looking information and therefore should not be unduly relied upon. Among the factors that could cause actual results to differ materially are the following: the effect of business and economic conditions, including the possibility of a downturn or disruptions in the U.S. economy; the impact of US tariff policies; 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:

Jonathan Newton

Investor Relations

Phone: 516-508-5823

Email: [email protected]