United States Securities and Exchange Commission Washington, D.C. 20549 FORM 8-K/A CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of earliest event reported VFINANCE, INC. (EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER) DELAWARE (STATE OR OTHER JURISDICTION OF INCORPORATION OF ORGANIZATION) 1-11454-03 58-1974423 ------------------------ --------------- (COMMISSION FILE NUMBER) (I.R.S. ID) 3010 North Military Trail, Suite 300 Boca Raton, FL (ADDRESS OF PRINCIPAL EXECUTIVE OFFICES) 33431 (ZIP CODE) REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE (561) 981-1000 Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below): [_] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) [_] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) [_] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) [_] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) GENERAL EXPLANATION The purpose of this report is to amend the Registrant's Current Report on Form 8-K dated May 11, 2006 that was filed with the Securities and Exchange Commission on May 16, 2006 (the "Initial Report") which reported on its acquisition of certain assets of Sterling Financial Investment Group, Inc. and Sterling Financial Group of Companies, Inc. This report amends the Initial Report so as to provide the financial information required pursuant to Items 9.01(b) of Form 8-K. All other items of the Inital Report are unchanged and are incorporated herein by reference. ITEM 9.01 FINANCIAL STATEMENTS AND EXHIBITS. (a) Financial Statements of Business Acquired. Not applicable (b) Pro Forma Financial Information. -2- UNAUDITED PRO FORMA COMBINED FINANCIAL STATEMENTS In accordance with Item 9.01(b)(1) of Form 8-K, the pro forma financial information required by Item 9.01(b) of Form 8-K is set forth below. The unaudited pro forma consolidated financial information of the Company is based on and should be read in conjunction with the audited consolidated financial statements and notes thereto appearing in the Company's Annual Report on Form 10-K for the year ended December 31, 2005. The accompanying unaudited pro forma condensed consolidated statements of operations for the six months ended June 30, 2006 and 2005 and the for the year ended December 31, 2005 are presented as if the asset acquisition discussed in Item 2.01 hereof had been completed as of January 1, 2005. In the opinion of management, the accompanying unaudited pro forma condensed consolidated financial statements include all material adjustments necessary to reflect, on a pro forma basis, the impact of such disposition and acquisition on the historical financial information of the Company. The adjustments are described in the notes to the unaudited pro forma condensed consolidated financial information and are set forth in the "Pro Forma Adjustments" column. The unaudited pro forma condensed consolidated financial information has been presented for informational purposes only and is not indicative of any future results of operations or the results that might have occurred if the acquisition had actually been completed on the indicated dates. -3- VFINANCE, INC Unaudited Pro Forma Statement of Operations For the year ended December 31, 2005 vFinance Sterling Pro Forma Adjustments Pro Forma ------------------ ---------------- ------------------------------------ Revenues: Commissions - agency $ 15,941,221 $ 3,472,565 $ - $ 19,413,786 Trading profits 4,177,402 6,272,274 - 10,449,676 Success fees 2,006,016 - - 2,006,016 Other brokerage related income 2,837,589 209,709 - 3,047,298 Consulting fees 523,644 - - 523,644 Other 503,010 - - 503,010 ------------------ ---------------- ---------------- ------------------ Total revenues 25,988,882 9,954,548 - 35,943,430 ------------------ ---------------- ---------------- ------------------ Operating expenses: Compensation, commissions and benefits 20,293,940 7,537,989 - 27,831,929 Clearing and transaction costs 3,017,243 803,515 - 3,820,758 General and administrative costs 2,752,786 1,163,853 - 3,916,639 Occupancy and equipment costs 743,295 1,638 - 744,933 Depreciation and amortization 299,604 - 681,200 980,804 Stock based compensation 19,412 - - 19,412 ------------------ ---------------- ---------------- ------------------ Total operating expenses 27,126,280 9,506,995 681,200 37,314,475 ------------------ ---------------- ---------------- ------------------ Income (loss) from operations (1,137,398) 447,553 (681,200) (1,371,045) Income tax benefit (provision) - Net income (loss) $(1,137,398) $ 447,553 $ (681,200) $(1,371,045) ================== ================ ================ ================== Net income (loss) per share: basic and diluted $ (0.03) $ (0.05) $ (0.03) ================== ================ ================== Weighted average shares outstanding: basic and diluted 40,049,654 13,000,000 53,049,654 ================== ================ ================== The pro forma adjustment represents amortization expense related to the acquired customer relationship intangible asset, which has been assigned a useful life of five years. -4- VFINANCE, INC Unaudited Pro Forma Statement of Operations For the six months ended June 30, 2006 vFinance Sterling Pro Forma Adjustments Pro Forma ---------------- --------------- ---------------------------------- Revenues: Commissions - agency 9,524,835 1,259,971 - 10,784,806 Trading profits 4,004,032 2,295,419 - 6,299,451 Success fees 2,850,548 - - 2,850,548 Other brokerage related income 1,546,037 203,977 - 1,750,014 Consulting fees 303,026 - - 303,026 Other 352,836 - - 352,836 ---------------- --------------- ---------------- --------------- Total revenues 18,581,314 3,759,367 - 22,340,681 ---------------- --------------- ---------------- --------------- Operating expenses: Compensation, commissions and benefits 14,208,788 3,194,837 - 17,403,625 Clearing and transaction costs 2,007,589 300,078 - 2,307,667 General and administrative costs 1,344,319 189,511 - 1,533,830 Occupancy and equipment costs 554,957 26,991 - 581,948 Depreciation and amortization 407,055 - 340,600 747,655 Stock based compensation 236,029 - - 236,029 ---------------- --------------- ---------------- --------------- Total operating expenses 18,758,737 3,711,417 340,600 22,810,754 ---------------- --------------- ---------------- --------------- Income (loss) from operations (177,423) 47,950 (340,600) (470,073) Income tax benefit (provision) - - - - Net income (loss) $(177,423) $ 47,950 $ (340,600) $(470,073) ================ =============== ================ =============== Net income (loss) per share: basic and diluted $ (0.00) $ (0.03) $ (0.01) ================ ================ =============== Weighted average shares outstanding: basic and diluted 43,717,293 13,000,000 56,717,293 ================ ================ =============== The pro forma adjustment represents amortization expense related to the acquired customer relationship intangible asset, which has been assigned a useful life of five years. -5- VFINANCE, INC Unaudited Pro Forma Statement of Operations For the six months ended June 30, 2005 vFinance Sterling Pro Forma Adjustment Pro Forma ----------------- -------------- --------------------- ------------- Revenues: Commissions - agency 7,401,588 1,808,258 - 9,209,846 Trading profits 2,423,861 3,842,826 - 6,266,687 Success fees 1,005,401 - - 1,005,401 Other brokerage related income 1,397,770 12,208 - 1,409,978 Consulting fees 387,144 - - 387,144 Other 237,985 - - 237,985 ----------------- -------------- ---------------- ---------------- Total revenues 12,853,749 5,663,292 - 18,517,041 ----------------- -------------- ---------------- ---------------- Operating expenses: Compensation, commissions and benefits 9,946,936 4,124,517 - 14,071,453 Clearing and transaction costs 1,523,343 381,878 - 1,905,221 General and administrative costs 1,109,647 689,620 - 1,799,267 Occupancy and equipment costs 360,366 1,383 - 361,749 Depreciation and amortization 134,799 - 340,600 475,399 Stock based compensation 2,647 - - 2,647 ----------------- -------------- ---------------- ---------------- Total operating expenses 13,077,738 5,197,398 340,600 18,615,736 ----------------- -------------- ---------------- ---------------- Income (loss) from operations (223,989) 465,894 (340,600) (98,695) Income tax benefit (provision) - - - - Net income (loss) $ (223,989) $465,894 $ (340,600) $ (98,695) ================= ============== ================ ================ Net income (loss) per share: basic and diluted $ (0.01) $ (0.03) $ (0.00) ================= ================ ================ Weighted average shares outstanding: basic and diluted 39,815,966 13,000,000 52,815,966 ================= ================ ================ The pro forma adjustment represents amortization expense related to the acquired customer relationship intangible asset, which has been assigned a useful life of five years. -6- SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. Dated: December 29, 2006 vFinance, Inc. By: /s/ Alan Levin --------------------------- Name: Alan Levin Title: Interim Chief Financial Officer End of Filing - 7 -