Exhibit 99.2

 

UNAUDITED PRO FORMA CONDENSED COMBINED FINANCIAL INFORMATION

 

Defined terms included below have the same meanings as terms defined and included elsewhere in this financial report.

 

Introduction

 

Verb Technology Company Inc. is providing the following unaudited pro forma condensed combined financial information is being presented to reflect the purchase of Lyvecom on April 11, 2025. The pro forma financial information has been prepared in accordance with Regulation S-X Article 11, Pro Forma Financial Information, as amended. The pro forma adjustments are described in the accompanying footnotes.

 

The unaudited pro forma condensed consolidated balance sheet as of March 31, 2025 includes the historical unaudited balance sheet of Lyvecom as of March 31, 2025 on a pro forma basis as if the purchase transaction, summarized below, had been consummated on March 31, 2025.

 

The unaudited pro forma condensed combined statement of operations for the year ended December 31, 2024 includes the historical statement of operations of Lyvecom for the year ended December 31, 2024. The unaudited pro forma condensed combined statement of operations for the three months ended March 31, 2025 includes the historical unaudited statement of operations of Lyvecom for the three months ended March 31, 2025. These presentations are on a pro forma basis as the purchase transaction had been consummated on January 1, 2024.

 

The historical financial information has been adjusted to give effect to factually supportable events that are related and/or directly attributable to the purchase of Lyvecom and the financing including related transactions, summarized below. The adjustments presented on the unaudited pro forma condensed consolidated financial statements have been identified and presented to offer relevant information necessary to provide a reasonable basis for understanding of the consolidated company upon consummation of the sale.

 

The unaudited pro forma condensed combined financial information was derived from and should be read in conjunction with the following historical financial statements and accompanying notes, which are included below:

 

the historical audited consolidated financial statements of Verb Technology Company, Inc. for the year ended December 31, 2024,
the historical unaudited condensed consolidated financial statements of Verb Technology Company, Inc. as of and for the three months ended March 31, 2025

 

The foregoing historical financial statements have been prepared in accordance with U.S. GAAP.

 

The unaudited pro forma condensed combined financial information is for illustrative purposes only. The financial results may have been different had the companies always been consolidated. You should not rely on the unaudited pro forma condensed combined financial information as being indicative of the historical results that would have been achieved had the Lyvecom purchase consummated on January 1, 2024 or the future results that the consolidated company will experience.

 

 

 

 

Unaudited Pro Forma Condensed Combined Balance Sheet

as of March 31, 2025 (in thousands, except share and per share data)

 

   Historical   Acquisition   Adjustments   Pro Forma 
ASSETS                    
                     
Current assets                    
Cash  $6,275   $3   $(4,225)(1)  $2,053 
Restricted cash   880    -    -    880 
Accounts receivable, net of allowance for credit losses   1,029    29    -    1,058 
ERC receivable - short-term   734    -    -    734 
Short-term investments - trading   5,081    -    -    5,081 
Prepaid expenses and other current assets   252    15    -    267 
Total current assets   14,251    47    (4,225)   10,073 
                     
Capitalized software development costs, net   2,743    -    -    2,743 
Property and equipment, net   369    -    -    369 
Operating lease right-of-use assets   307    -    -    307 
Intangible assets, net   169    -    934(2)   1,103 
Goodwill   -    -    4,909(2)   5,165 
              256(4)     
Investment in equity securities   263    -    -    263 
Other assets   266    -    -    266 
                     
Total assets  $18,368   $47   $1,874   $20,289 
                     
LIABILITIES AND STOCKHOLDERS’ EQUITY                    
                     
Current liabilities                    
Accounts payable  $618   $32   $-   $650 
Accrued expenses   2,313    32    -    2,345 
Contract liabilities   238    1    -    239 
Accrued payroll   341    -    -    341 
Operating lease liability, current   134    -    -    134 
Contingent liability, current   -    -    -    - 
Total current liabilities   3,644    65    -    3,709 
                     
Long-term liabilities                    
Contingent liability, non-current   -    -    600(3)   600 
Deferred tax liability, non-current   -    -    256(4)   256 
Operating lease liability, non-current   183    -    -    183 
Total liabilities   3,827    65    856    4,748 
                     
Commitments and contingencies                    
                     
Stockholders’ equity                    
Common stock, $0.0001 par value, 400,000,000 shares authorized, 1,113,143 shares issued and outstanding as of March 31, 2025   1    -    -    1 
Additional paid-in capital   204,253    -    1,000(1)   205,253 
Accumulated deficit   (189,658)   (18)   18    (189,658)
                     
Total stockholders’ equity in Verb Technology Company, Inc.   14,596    (18)   1,018    15,596 
Non-controlling interests   (55)   -    -    (55)
                     
Total stockholders’ equity   14,541    18    1,018    15,541 
                     
Total liabilities and stockholders’ equity  $18,368   $47   $1,874   $20,289 

 

 

 

 

Notes to Unaudited Pro Forma Condensed Combined Financial Information

 

The transaction accounting adjustments included in the unaudited pro forma condensed combined financial information are as follows:

 

(1) Reflects the total consideration of $5,225 paid to Lyvecom Shareholders upon closing of the acquisition on April 11, 2025. The total consideration paid upon closing consists of $4,225 in cash and $1,000 in equity based on a 30-day volume weighted average price of approximately $5.41 per share.

 

(2) Reflects the amounts allocated to goodwill and definite-lived intangible assets per the preliminary ASC 805 analysis prepared by an independent third-party valuation specialist.

 

(3) The Purchase Agreement provides for an earn-out payment to the Lyvecom Shareholders of up to an additional $3,000 in cash over a 24-month earn-out period based on Lyvecom’s achievement of various performance metrics. The amount of $600 was calculated pursuant to a preliminary ASC 805 analysis performed by an independent third-party valuation specialist.

 

(4) Deferred tax liability of $256 recorded as a result of the preliminary ASC 805 analysis prepared by an independent third-party valuation specialist. The liability was recorded on the date of acquisition and relates to the book to tax temporary differences on Lyvecom’s definite-lived intangible assets of $934.

 

 

 

 

Unaudited Pro Forma Condensed Combined Statement of Operations

for the Three Months Ended March 31, 2025 (in thousands, except share and per share data)

 

   Historical   Lyvecom   Adjustments   Pro Forma 
                 
Revenue  $1,305   $148   $(40)(1)  $1,413 
                     
Costs and expenses                    
Cost of revenue, exclusive of depreciation and amortization shown separately below   347    3    -    350 
Depreciation and amortization   286    -    47 (2)   333 
General and administrative   3,331    207    (335)(3)   3,203 
Total costs and expenses   3,964    210    (288)   3,886 
                     
Income (loss) from operations   (2,659)   (62)   248    (2,473)
                     
Other income (expense), net                    
Interest income   121    -    -    121 
Unrealized gain on short-term investments   83    -    -    83 
Interest expense   (1)   (2)   2 (4)   (1)
Other income, net   18    2    -    20 
                     
Total other income (expense), net   221    -    2    223 
                     
Net income (loss)   (2,438)   (62)   250    (2,250)
         -    -    - 
Less: Net income attributable to non-controlling interests   126    -    -    126 
                     
Net income (loss) attributable to Verb Technology Company, Inc. before income taxes   (2,564)   (62)   250    (2,376)
                     
Income tax expense (benefit)   -    -    (13)(5)   (13)
                     
Net income (loss) to common shareholders  $(2,564)  $(62)  $263   $(2,363)
                     
Loss per share from continuing operations- basic and diluted  $(2.51)  $-   $-   $(1.96)
Weighted average number of common shares outstanding - basic and diluted   1,019,801    184,812    -    1,204,613 

 

 

 

 

Notes to Unaudited Pro Forma Condensed Combined Financial Information

 

The transaction accounting adjustments included in the unaudited pro forma condensed combined financial information are as follows:

 

(1) Revenue recorded for Lyvecom related to Verb Technology Company, Inc.

 

(2) Amortization of definite-lived intangible assets.

 

(3) Expense recorded by Verb Technology Company, Inc. related to Lyvecom of $40 plus acquisition expenses incurred by both companies for auditing and legal fees.

 

(4) Interest expense related to Lyvecom related party loans that were paid upon closing of the acquisition on April 11, 2025.

 

(5) Income tax benefit related to the deferred tax liability reversal due to the amortization of definite-lived intangible assets.

 

 

 

 

Unaudited Pro Forma Condensed Combined Statement of Operations

for the Year Ended December 31, 2024 (in thousands, except share and per share data)

 

   Historical   Lyvecom   Adjustments   Pro Forma 
                 
Revenue  $895   $496   $(100)(1)  $1,291 
                     
Costs and expenses                    
Cost of revenue, exclusive of depreciation and amortization shown separately below   224    10    -    234 
Depreciation and amortization   1,077    -    189 (2)   1,266 
General and administrative   11,238    490    (100)(3)   11,628 
Total costs and expenses   12,539    500    89    13,128 
                     
Loss from operations   (11,644)   (4)   (189)   (11,837)
                     
Other income (expense), net                    
Interest income   692    -    -    692 
Unrealized loss on short-term investments   (44)   -    -    (44)
Interest expense   (237)   (8)   8 (4)   (237)
Change in fair value of notes payable – SAFE   -    (448)   448 (4)   - 
Financing costs   (90)   -    -    (90)
Other income, net   813    -    -    813 
                     
Total other income (expense), net   1,134    (456)   456    1,134 
                     
Net income (loss)   (10,510)   (460)   267    (10,703)
                     
Less: Net loss attributable to non-controlling interests   (181)   -    -    (181)
                     
Net income (loss) attributable to Verb Technology Company, Inc. before income taxes   (10,329)   (460)   267    (10,522)
                     
Income tax expense (benefit)   -    -    (52(5)   (52)
                     
Net income (loss) attributable to Verb Technology Company, Inc.   (10,329)   (460)   319    (10,470)
                     
Series C Preferred Stock dividend payable   (243)   -    -    (243)
Deemed dividend due to Series C redemption   (900)   -    -    (900)
                     
Net income (loss) to common shareholders  $(11,472)  $(460)  $319   $(11,613)
                     
Loss per share from continuing operations- basic and diluted  $(19.36)  $-   $-   $(14.94)
Weighted average number of common shares outstanding - basic and diluted   592,478    184,812         777,290 

 

 

 

 

Notes to Unaudited Pro Forma Condensed Combined Financial Information

 

The transaction accounting adjustments included in the unaudited pro forma condensed combined financial information are as follows:

 

(1) Revenue recorded for Lyvecom related to Verb Technology Company, Inc.

 

(2) Amortization of definite-lived intangible assets.

 

(3) Expense recorded by Verb Technology Company, Inc. related to Lyvecom of $100.

 

(4) Interest expense related to Lyvecom related party loans of $100 and SAFE notes amounting to $1,125 that were both paid upon closing of the acquisition on April 11, 2025.

 

(5) Income tax benefit related to the deferred tax liability reversal due to the amortization of definite-lived intangible assets.