EX-99.1 3 ex99-1.htm EX-99.1

 

Exhibit 99.1

 

UNAUDITED PRO FORMA CONDENSED COMBINED FINANCIAL INFORMATION

 

Introduction

 

The following unaudited pro forma condensed combined financial statements of HWH International Inc. present the combination of the historical financial information of HWH International Inc. (“we” or the “Company”) and the adjustments to give effect for the sale of shares of Alset F&B One Pte. Ltd. (“Alset F&B One”) (“the Sale”). The following unaudited pro forma condensed combined financial information has been prepared in accordance with Article 11 of Regulation S-X.

 

The unaudited pro forma condensed combined balance sheet as of June 30, 2025, combines the historical balance sheet of HWH International Inc. as of June 30, 2025 and the adjustments for the sale of Alset F&B One as of June 30, 2025, on a pro forma basis as if the sale, summarized below, had been closed on June 30, 2025.

 

The unaudited pro forma condensed combined statement of operations for the year ended December 31, 2024 combines the historical statements of operations of HWH International Inc. for the year ended December 31, 2024 and the adjustments for the sale of Alset F&B One during the year ended December 31, 2024 on a pro forma basis as if the sale had been completed on January 1, 2024, the beginning of the earliest period presented.

 

The unaudited pro forma condensed combined statement of operations for the six months ended June 30, 2025 combines the historical statements of operations of HWH International Inc. for the six months ended June 30, 2025 and the adjustments for the sale of Alset F&B One during the six months ended June 30, 2025 on a pro forma basis as if the sale had been completed on January 1, 2025, the beginning of the earliest period presented.

 

The unaudited pro forma condensed combined financial information has been presented for illustrative purposes only and does not necessarily reflect what the Company’s financial condition or results of operations would have been had the Sale occurred on the dates indicated.

 

Further, the unaudited pro forma condensed consolidated financial information also may not be useful in predicting the future financial condition and results of operations of the Company. The actual financial position and results of operations may differ significantly from the pro forma amounts reflected herein due to a variety of factors. The unaudited transaction accounting adjustments represent management’s estimates based on information available as of the date of this unaudited pro forma condensed combined financial information and are subject to change as additional information becomes available and analyses are performed. The Company believes that its assumptions and methodologies provide a reasonable basis for presenting all of the significant effects of the Sale based on information available to management at this time and that the transaction accounting adjustments give appropriate effect to those assumptions and are properly applied in the unaudited pro forma condensed consolidated financial information.

 

Description of transaction

 

On September 10, 2025, a subsidiary of HWH International Inc. entered into a sale and purchase agreement (the “Sale and Purchase Agreement”) with Alset International Limited, pursuant to which a subsidiary of the Company agreed to sell 70% of the outstanding equity of its subsidiary, Alset F&B One Pte. Ltd. to Alset International Limited in exchange for S$218,941.26 Singapore Dollars (equal to approximately $170,754 U.S. Dollars). A subsidiary of HWH International Inc. will continue to own 20% of Alset F&B One.

 

The sale of Alset F&B One was completed on September 10, 2025.

 

 

 

 

Pro Forma Information

 

HWH International Inc. and Subsidiaries

Unaudited Pro Forma Condensed Combined Balance Sheet

As of June 30, 2025

 

   HWH   Adjustments     
   International Inc.   For Sale of     
  (Historical)   Alset F&B One   Pro Forma 
Assets:               
Current Assets:               
Cash  $3,729,873   $ (302,270 )  $ 3,427,603  
Account Receivables, Net   22,948    (4,218)   18,730 
Inventory   6,369    (3,848)   2,521 
Other Receivables, Net   661,283    -    661,283 
Due from Related Parties, Net   

4,481,802

    -    

4,481,802

 
Deposit   21,336    -    21,336 
Convertible Loan Receivables at Fair Value - Related Party   149,721    -    149,721 
Investment in Securities   100,476    -    100,476 
Deferred Tax Assets   3,305    (3,305)   - 
Prepaid Expenses   487    -    487 
Total Current Assets    9,177,600      (313,641 )    8,863,959  
              - 
Non-Current Assets:               
Property and Equipment, Net   31,876    (1,333)   30,543 
Deposits   131,346    (21,331)   110,015 
Investment at Cost   1,608    -    1,608 
Convertible Loan Receivables at Fair Value - Related Party   934,392    -    934,392 
Investment Security - Related Party   748    -    748 
Equity Method Investment – Related Party     -       48,662       48,662  
Operating Lease Right-Of-Use Assets, Net   325,130    (168,160)   156,970 
Total Non-Current Assets   1,425,100     (142,162 )    1,282,938  
                
Total Assets  $ 10,602,700    $ (455,803 )  $ 10,146,897  
                
Liabilities and Stockholders’ Equity:               
Current Liabilities:               
Accounts Payable and Accrued Expenses  $443,906    (24,186)  $419,720 
Due to Related Parties, Net    5,513,318     (39,092)    5,474,226  
Operating Lease Liabilities   197,235    (171,987)   25,248 
Financial Liability   710    -    710 
Notes Payable   975,991    -    975,991 
Deferred Revenue   15,631    -    15,631 
Total Current Liabilities    7,146,791     (235,265)    6,911,526  
                
Non-Current Liabilities:               
Operating Lease Liabilities   135,386    -    135,386 
Total Non-Current Liabilities   135,386    -    135,386 
                

Total Liabilities

    7,282,177     (235,265)    7,046,912  
                
Commitments and Contingencies               
                
Stockholders’ Equity:               
Preferred Stock, $0.0001 par value; 1,000,000 shares authorized, none issued and outstanding   -    -    - 
Common Stock, $0.0001 par value; 55,000,000 shares authorized; 6,476,400 shares issued and outstanding on June 30, 2025*   647    -    647 
Additional Paid in Capital   10,749,308     (61,414 )     10,687,894  
Accumulated Other Comprehensive Income (Loss)   (811,200)         (811,200 )
Accumulated Deficit   (6,711,621)    (144,464 )    (6,856,085 )
Total HWH International Inc. Stockholders’ Equity   3,227,134     (205,878 )    3,021,256  
Non-controlling Interests   93,389    (14,660)   78,729 
Total Stockholders’ Equity   3,320,523     (220,538 )    3,099,985  
              - 
Total Liabilities and Stockholders’ Equity  $ 10,602,700    $ (455,803 )  $ 10,146,897  

 

*The numbers of weighted average outstanding common stock - basic and diluted were adjusted retrospectively to reflect the 5-for-1 reverse stock split on February 24, 2025

 

 

 

 

HWH International Inc. and Subsidiaries

Unaudited Pro Forma Condensed Combined

Statements of Operations and Other Comprehensive Income

For the Year Ended December 31, 2024

 

       Pro Forma     
   HWH   Adjustments     
   International Inc.   For Sale of     
   (Historical)   Alset F&B One   Pro Forma 
             
Revenue   1,253,577    (470,191)   783,386 
                
Cost of Revenue   (651,721)   116,456    (535,265)
                
Gross Profit   601,856    (353,735)   248,121 
                
Operating Expenses:               
General and Administrative Expenses   (2,646,627)   288,527    (2,358,100)
Impairment of Convertible Note Receivable – Related Party, and Equity Method Investment - Related Party   (42,328)   -    (42,328)
Impairment Loss on Goodwill   (323,864)   -    (323,864)
Impairment of Investment in Joint Venture   (14,205)   -    (14,205)
Total Operating Expenses   (3,027,024)   288,527    (2,738,497)
                
Other Non-Operating Income (Loss)                
Other Income   345,997    (5,792)   340,205 
Interest Expense   (72,076)   1,427    (70,649)
Foreign Exchange Transaction Gain   (55,221)   -    (55,221)
Loss on Equity method Investment - Related Party   (20,149)    13,915      (6,234 )
Unrealized Loss on Convertible Note Receivable - Related Party   (379,887)   -    (379,887)
Total Other Non-Operating Loss    (181,336)    9,550      (171,786 )
                
Net Loss Before Income Taxes   (2,606,504)    (55,658 )    (2,662,162 )
                
Income Tax Expense   -    -    - 
                
Net Loss   (2,606,504)    (55,658 )    (2,662,162 )
                
Net Loss Attributable to Non-Controlling Interest   (15,773)   (6,936)   (22,709)
                
Net Loss Attributable to Common Stockholders  $(2,590,731)  $ (48,722 )  $ (2,639,453 )
                
Net Loss  $(2,606,504)  $ (55,658 )  $ (2,662,162 )
Other Comprehensive Loss               
Foreign Currency Translation Adjustment   (219,898)   -    (219,898)
Total Comprehensive Loss   (2,826,402)    (55,658 )    (2,882,060 )
                
Less Comprehensive Loss Attributable to Non-controlling Interests   (15,861)   -    (15,861)
Total Comprehensive Loss Attributable to Common Shareholders   (2,810,541)    (55,658 )    (2,866,199 )
                
Net Loss Per Share - Basic and Diluted  $(0.72)  $-   $ (0.73 )
                
Weighted Average Common Shares Outstanding - Basic and Diluted *   3,595,124    -    3,595,124 

 

*The numbers of weighted average outstanding common stock - basic and diluted were adjusted retrospectively to reflect the 5-for-1 reverse stock split on February 24, 2025

 

 

 

 

HWH International Inc. and Subsidiaries

Unaudited Pro Forma Condensed Combined

Statements of Operations and Other Comprehensive Income

For the Six Months Ended June 30, 2025

 

       Pro Forma     
   HWH   Adjustments     
   International Inc.   For Sale of     
   (Historical)   Alset F&B One   Pro Forma 
             
Revenue   605,588    (226,184)   379,404 
                
Cost of Revenue   (309,104)   45,493    (263,611)
                
Gross Profit   296,484    (180,691)   115,793 
                
Operating Expenses:               
General and administrative expenses   (1,152,923)   143,183    (1,009,740)
Impairment loss on goodwill   (77,480)   -    (77,480)
Total Operating Expenses   (1,230,403)   143,183    (1,087,220)
                
Other Non-Operating Income               
Other Expense   (14,059)   -    (14,059)
Interest Expense   (79,655)   2,308    (77,347)
Foreign Exchange Transaction Gain   307,691    -    307,691 
Gain on Disposal of Securities Investment   419    -    419 
Unrealized Gain on Securities Investment   873    -    873 
Gain on Equity Method Investment - Related Party     -       7,040       7,040  
Gain on Disposal of Subsidiaries   383,667    -    383,667 
Unrealized Loss on Convertible Note Receivable - Related Party   (33,064)   -    (33,064)
Total Other Non-Operating Income   565,872     9,348      575,220  
                
Net Loss Before Income Taxes   (368,047)    (28,160 )    (396,207 )
                
Income Tax Expense   (42,948)   -    (42,948)
                
Net Loss   (410,995)    (28,160 )    (439,155 )
                
Net Loss Attributable to Non-Controlling Interest   (16,384)   (4,314)   (20,698)
                
Net Loss Attributable to Common Stockholders  $(394,611)  $ (23,846 )  $ (418,457 )
                
Net Loss  $(410,995)  $ (28,160 )  $ (439,155 )
Other Comprehensive Loss               
Foreign Currency Translation Adjustment   (554,011)   -    (554,011)
Total Comprehensive Loss   (965,006)    (28,160 )    (993,166 )
                
Less Comprehensive Loss Attributable to Non-controlling Interests   (16,793)   -    (16,793)
Total Comprehensive Loss Attributable to Common Shareholders   (948,213)    (28,160 )    (976,373 )
                
Net Loss Per Share - Basic and Diluted  $(0.06)  $-   $ (0.06 )
                
Weighted Average Common Shares Outstanding - Basic and Diluted *   6,446,503    -    6,446,503 

 

*The numbers of weighted average outstanding common stock - basic and diluted were adjusted retrospectively to reflect the 5-for-1 reverse stock split on February 24, 2025