ACQUISITION OF VINOVEST |
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| ACQUISITION OF VINOVEST | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| ACQUISITION OF VINOVEST | NOTE 9 – ACQUISITION OF VINOVEST Prior to the Closing, the Company entered into an agreement to purchase all voting equity interests of Vinovest, Inc. on March 17, 2026. The consideration for this purchase was the issuance of 8,750,000 shares of StartEngine common stock valued at its most recent regulation A offering price of $1.60 per share for a total price of $14,000,000. Included in this consideration is a provision for 20% of the shares issued (1,750,000 shares) to be reclaimed by the Company if certain indemnifications clauses are triggered. At this time, the Company believes these clauses to be more unlikely than not to be triggered, and as such, has not created an asset for the right to return of these reclaimable shares. As a result of the closing of the business combination the Company allocated the purchase price with the acquisition of Vinovest under the acquisition method of accounting. The final allocation of the purchase consideration for the mergers will be determined after the completion of a thorough analysis to determine the fair value of all assets acquired and liabilities assumed, but in no event later than one year following the completion of the mergers. As such the allocation of the purchase price is revised as follows:
Management has made the initial determination that all assets and liabilities to be acquired are primarily estimated to be stated at their fair values, which approximates their recorded cost. While a final determination of the value of the identifiable intangibles has not been completed, management has made an initial determination that approximately $12.7 million of the excess of the purchase price over the net assets acquired should be allocated to identifiable intangible assets.
Pro Forma Financial Information The unaudited pro forma financial information in the table below summarizes the combined results of Vinovest operations and StartEngine Inc.’s operations, as though the acquisition of Vinovest had been completed as of the beginning of fiscal 2026 and 2025. The pro forma financial information for the three and nine months ended September 30, 2026 and 2025 combines our results for these periods with that of Vinovest’s results for the three and nine months ended September 30, 2026 and 2025. The following table summarizes the unaudited pro forma financial information for the three and nine months ended September 30, 2026 and September 30, 2025:
The unaudited pro forma financial information is presented for informational purposes only and is not indicative of the results of operations that would have been achieved if the acquisition and the cost of financing the acquisition had taken place at the beginning of fiscal 2026. The financial information for the periods presented above includes pro forma adjustments as follows:
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