Vaso Corporation Receives Notice of PPP Loan Forgiveness

Rhea-AI Summary

Vaso Corporation (OTC PINK:VASO) announced that its $3.6 million Paycheck Protection Program (PPP) loan, received in April 2020, has been fully forgiven by the Small Business Administration (SBA). This forgiveness will be recognized as other income in the quarterly financial report for the period ending June 30, 2021. Vaso operates through three subsidiaries focused on managed IT services, diagnostic imaging sales, and proprietary medical device manufacturing. The company continues to navigate business uncertainties, including the ongoing impact of the COVID-19 pandemic.

Positive

• Loan forgiveness of $3.6 million positively impacts cash flow and profitability.
• Recognition of forgiveness as other income enhances quarterly financial results.

Negative

• Ongoing uncertainties related to the COVID-19 pandemic could affect future performance.
• Dependence on the GEHC agreement poses risks if not continued.

PLAINVIEW, NY / ACCESSWIRE / June 24, 2021 / Vaso Corporation ("Vaso") (OTC PINK:VASO) today reported that the Company has received notice from the Small Business Administration ("SBA") that the loan it received from a lending institute in April 2020 under the Paycheck Protection Program ("PPP") of the CARES Act, approximately $3.6 million, together with all accrued interest, has been forgiven in full. The Company will account for this forgiveness of loan principal and interest as other income in its quarterly financial report for the three months ending June 30, 2021.

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:

• VasoTechnology, Inc. provides network and IT services through two business units: VasoHealthcare IT Corp., a national value added reseller of Radiology Information System ("RIS"), Picture Archiving and Communication System ("PACS"), and other software solutions from various vendors as well as related services, including implementation, management and support; and NetWolves Network Services LLC, a managed network services provider with an extensive, proprietary service platform to a broad base of customers.
• 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 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.

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.

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Investor Contact:
Michael J. Beecher
Investor Relations
Phone: 516-997-4600
Email: mbeecher@vasocorporation.com

SOURCE: Vaso Corporation

View source version on accesswire.com:
https://www.accesswire.com/653022/Vaso-Corporation-Receives-Notice-of-PPP-Loan-Forgiveness

FAQ

What is Vaso Corporation's recent loan forgiveness news?

Vaso Corporation announced the full forgiveness of its $3.6 million PPP loan from the SBA.

How will Vaso Corporation report the PPP loan forgiveness?

The forgiveness will be accounted for as other income in Vaso's financial report for Q2 2021.

What are Vaso Corporation's business segments?

Vaso operates through three subsidiaries focused on IT services, diagnostic imaging, and medical devices.

What risks does Vaso Corporation face after the PPP loan forgiveness?

Vaso faces uncertainties from the COVID-19 pandemic and potential risks from the continuation of its GEHC agreement.