Core Viewpoint - VerifyMe, Inc. reported a quarterly loss of $0.06 per share, which was better than the Zacks Consensus Estimate of a loss of $0.09, representing an earnings surprise of 33.33% [1] - The company posted revenues of $5.44 million for the quarter ended September 2024, slightly missing the Zacks Consensus Estimate by 0.46% and down from $5.6 million a year ago [2] Group 1: Earnings Performance - VerifyMe has surpassed consensus EPS estimates three times over the last four quarters [2] - The company had a loss of $0.03 per share in the previous quarter, compared to an expected loss of $0.06, delivering a surprise of 50% [1] Group 2: Stock Performance - VerifyMe shares have increased by approximately 11.6% since the beginning of the year, while the S&P 500 has gained 25.8% [3] - The current Zacks Rank for VerifyMe is 3 (Hold), indicating expected performance in line with the market in the near future [6] Group 3: Future Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is -$0.01 on revenues of $8.63 million, and -$0.19 on revenues of $25.2 million for the current fiscal year [7] - The estimate revisions trend for VerifyMe is mixed, which could change following the recent earnings report [6] Group 4: Industry Context - The Technology Services industry, to which VerifyMe belongs, is currently ranked in the top 26% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8]

Revenue and Profit - Q3 2024 revenue was $5.4 million, a decrease of $0.2 million compared to Q3 2023[2][4][5] - Gross profit in Q3 2024 was $1.9 million, with a gross margin of 35%, down from 37% in Q3 2023[2][4][6] - Net revenue for the nine months ended September 30, 2024, was $16.5 million, compared to $16.6 million for the same period in 2023[24] - Gross profit for the nine months ended September 30, 2024, increased to $6.2 million from $5.2 million in the same period in 2023[24] Net Loss and Operating Loss - Net loss in Q3 2024 was ($2.4) million, including $1.8 million in one-time adjustments, compared to a net loss of ($0.9) million in Q3 2023[2][4][8] - Operating loss in Q3 2024 was ($2.9) million, primarily due to $2.3 million in goodwill and intangible asset impairments in the Authentication segment[7] - Net loss for the nine months ended September 30, 2024, was $3.3 million, compared to $3.4 million for the same period in 2023[24] - Goodwill and intangible asset impairment for the nine months ended September 30, 2024, was $2.3 million, compared to $34 thousand in the same period in 2023[24] Adjusted EBITDA - Adjusted EBITDA in Q3 2024 was $0.2 million, consistent with Q3 2023[2][4][9] - The company projects positive Adjusted EBITDA for the full year 2024 and expects Adjusted EBITDA growth in 2025 compared to 2024[3][10] - Total adjusted EBITDA (Non-GAAP) for the nine months ended September 30, 2024, was $441 thousand, compared to a loss of $695 thousand in the same period in 2023[27] Segment Performance - Precision Logistics segment accounted for 98% of Q3 2024 revenue, with Proactive services revenue growing 9% compared to Q3 2023[5] - The company decided to discontinue the codes portion of the Authentication Segment, redirecting investment into Precision Logistics and other strategic growth options[3][10] Cash and Financial Position - Cash balance as of September 30, 2024, was $2.6 million, with $2.1 million in working capital[11] - Cash and cash equivalents including restricted cash decreased from $3.1 million as of December 31, 2023, to $2.6 million as of September 30, 2024[21] - Accounts receivable decreased from $3.0 million as of December 31, 2023, to $1.2 million as of September 30, 2024[21] - Total liabilities decreased from $8.2 million as of December 31, 2023, to $4.5 million as of September 30, 2024[21] - Total assets decreased from $20.7 million as of December 31, 2023, to $14.8 million as of September 30, 2024[21] Operating Expenses - Total operating expenses for the nine months ended September 30, 2024, were $10.3 million, up from $8.6 million in the same period in 2023[24] Strategic Initiatives - The company has engaged with bankers and advisors regarding strategic growth opportunities[10]

Core Insights - VerifyMe, Inc. reported a quarterly revenue of $5.4 million for Q3 2024, a decrease from $5.6 million in Q3 2023, indicating a decline in overall sales performance [1][3][4] - The company experienced a net loss of $2.4 million in Q3 2024, which includes $1.8 million of one-time adjustments, compared to a net loss of $0.9 million in Q3 2023 [1][7] - Adjusted EBITDA remained stable at $0.2 million for both Q3 2024 and Q3 2023, marking the fifth consecutive quarter of positive adjusted EBITDA [2][8][9] Financial Performance - Revenue for Q3 2024 was $5.4 million, down by $0.2 million from Q3 2023, with the Precision Logistics segment accounting for 98% of total revenue [3][4] - Gross profit for Q3 2024 was $1.9 million, representing a gross margin of 35%, compared to a gross profit of $2.0 million and a margin of 37% in Q3 2023 [1][5] - The operating loss increased to $2.9 million in Q3 2024, primarily due to $2.3 million in goodwill and intangible asset impairments in the Authentication segment [6][7] Strategic Decisions - The CEO announced a strategic shift to discontinue the codes portion of the Authentication Segment, redirecting investments towards Precision Logistics and other growth opportunities [2][9] - The company is optimistic about the growth potential in its Proactive services within the Precision Logistics segment, which saw a 9% revenue increase compared to Q3 2023 [4][5] Cash Position - As of September 30, 2024, VerifyMe had a cash balance of $2.6 million and $2.1 million in working capital, indicating a stable liquidity position [9][10]

Company Overview - VerifyMe, Inc. (NASDAQ: VRME) provides brand owners with logistics, supply chain traceability, authentication, anti-counterfeiting, and data-rich brand enhancement services through its subsidiaries, Trust Codes Global and PeriShip Global [1][3] - The company operates in two segments: Precision Logistics and Authentication, focusing on time-and-temperature sensitive products and item-level traceability [3] Financial Results Announcement - VerifyMe will release its financial results for the third quarter ended September 30, 2024, on November 12, 2024 [1] - An investor conference call and webcast is scheduled for the same day at 11:00 a.m. Eastern Time, which will include prepared remarks and a Q&A session with the executive management team [1][2] Accessing the Conference Call - The conference call can be accessed via a webcast link or by calling designated numbers for US and international participants [2] - Presentation slides will be available on the Investors section of VerifyMe's website on the morning of the call, and the webcast will be archived for 90 days [2]

Financial Position - As of June 30, 2024, the company reported cash and cash equivalents of $2,900 thousand, down from $3,032 thousand as of December 31, 2023[24] - The company held $63 thousand in restricted cash as of December 31, 2023, which was released by June 30, 2024[24] - As of June 30, 2024, the company had $0.5 million in short-term debt and $0.6 million in long-term debt, with a repayment of $250 thousand made during the six months ended June 30, 2024[88] - The company has a $1 million revolving line of credit (RLOC) with PNC Bank, which expires in September 2024, and a $2 million term note maturing in September 2026[87] Revenue and Profitability - Revenue for the three months ended June 30, 2024, was $5,244 thousand, a slight decrease from $5,352 thousand in the same period of 2023, representing a decline of approximately 2.0%[47] - Proactive services revenue for the six months ended June 30, 2024, was $8,170 thousand, down from $8,704 thousand in 2023, indicating a decrease of about 6.1%[48] - The company reported a total of $10,858 thousand in revenue for the six months ended June 30, 2024, compared to $10,628 thousand in 2023, reflecting an increase of approximately 2.2%[48] - Total revenue for June 2024 was $5,352,000, a slight increase from $5,335,000 in June 2023, representing a growth of 0.32%[99] - Total revenue for the three months ended June 30, 2024, was $5,352 thousand, a slight increase of $17 thousand compared to $5,335 thousand for the same period in 2023[120] - Total revenue for the six months ended June 30, 2024, was $11,111 thousand, an increase of $115 thousand compared to $10,996 thousand for the same period in 2023[127] Segment Information - The company operates two reportable segments: Precision Logistics and Authentication, with significant intercompany balances eliminated upon consolidation[26] - The company recognized revenue in its Precision Logistics segment when packages are delivered, with transaction fees consisting of fixed consideration[36][37] - In the Authentication segment, revenue is recognized when products are shipped or delivered, based on fixed consideration from purchase orders[38] - The Precision Logistics segment provides time and temperature-sensitive parcel management services using a proprietary IT platform for real-time visibility into shipment transit[98] - The Authentication segment's revenue decreased to $108,000 in June 2024 from $121,000 in June 2023, a decline of 10.74%[99] Expenses and Costs - Segment management and technology expenses increased by $504 thousand to $2,860 thousand for the six months ended June 30, 2024, primarily due to the acquisition of Trust Codes Global[129] - Research and development expenses increased to $60 thousand for the six months ended June 30, 2024, compared to $18 thousand for the same period in 2023[131] - The company incurred $278 thousand in acquisition-related costs included in general and administrative expenses for the six months ended June 30, 2023[53] Goodwill and Intangible Assets - Goodwill is tested for impairment annually, with qualitative assessments determining the need for quantitative tests based on various factors[39] - Goodwill as of June 30, 2024, was $5,334 thousand, reflecting a decrease from $5,384 thousand at the beginning of the year, primarily due to foreign currency translation[62] - Total intangible assets as of June 30, 2024, amounted to $6,539 thousand, with accumulated amortization of $2,383 thousand[64] - Amortization expense for intangible assets was $540 thousand for the six months ended June 30, 2024, compared to $495 thousand for the same period in 2023[64] - The company expects to incur amortization expenses of intangible assets totaling $6,539 thousand over the next five years[66] Stock and Equity - The company reported approximately 8,208,000 anti-dilutive shares for the three and six months ended June 30, 2024, compared to 7,108,000 for the same period in 2023[42] - The company issued 1,750 shares of common stock upon vesting of restricted stock units during the six months ended June 30, 2024[67] - As of June 30, 2024, the company had 270,367 shares held in treasury, valued at approximately $464 thousand[69] - The company repurchased 1,000 shares of common stock for $1 thousand under its share repurchase program during the six months ended June 30, 2024[70] - As of June 30, 2024, the company had 301,000 stock options outstanding with a weighted average exercise price of $4.24[79] - The company had 140,000 unvested restricted stock awards with a weighted average grant date fair value of $1.60 as of June 30, 2024[81] - The total unrecognized share-based compensation cost related to unvested performance restricted stock units was $1,162 thousand, expected to be recognized over 1.4 years[85] - The company has suspended new offering periods under the 2021 non-qualified stock purchase plan, which has a maximum of 500,000 shares reserved for issuance[68] - As of June 30, 2024, the company had 4,628,586 warrants outstanding with a weighted average exercise price of $4.13 and a remaining contractual term of 1.8 years[86] Acquisition and Contingent Consideration - The company acquired Trust Codes Limited for a total purchase price of approximately $2,113 thousand, which includes $363 thousand in cash and $625 thousand in stock[53][55] - The contingent consideration related to the Trust Codes acquisition is estimated at $1.1 million, with $123 thousand classified as a current liability as of June 30, 2024[58] Cash Flow - Cash provided by operating activities was $312 thousand during the six months ended June 30, 2024, compared to cash used of $463 thousand in the same period of 2023[134] Strategic Focus - The company is focusing on expanding its services in the pharmaceutical and healthcare industries, which represent significant opportunities due to enhanced tracking and customer service[109] - The company has a strategic partnership with a major global carrier, enhancing its logistics optimization capabilities and providing detailed predictive analytics[114] - The Precision Logistics segment is expected to see growth in proactive services as the company focuses on direct customer engagement[114] - The Authentication segment is actively marketing its solutions in agriculture, food and beverage, and pharmaceuticals to combat counterfeiting and enhance traceability[111] Financial Instruments - The company’s financial instruments include accounts receivable and payable, with carrying values approximating fair value due to short maturities[30] - The company recognizes revenue based on ASC Topic 606, with performance obligations satisfied upon delivery of logistics management, ink canisters, software licensing, and equipment leasing[143] Stock-Based Compensation - Stock-based compensation is measured based on estimated fair values using the Black-Scholes model, with changes in assumptions potentially affecting future expense recognition[145] - Restricted stock units with price appreciation targets utilize a Monte Carlo simulation for fair value determination, with compensation expense recognized on a straight-line basis[146] - Non-employee equity-based payments are recorded as an expense over the service period, with fair value re-measurements until vesting or service completion[148]

VerifyMe, Inc. (VRME) came out with a quarterly loss of $0.03 per share versus the Zacks Consensus Estimate of a loss of $0.06. This compares to loss of $0.11 per share a year ago. These figures are adjusted for nonrecurring items. This quarterly report represents an earnings surprise of 50%. A quarter ago, it was expected that this company would post a loss of $0.06 per share when it actually produced a loss of $0.05, delivering a surprise of 16.67%. Over the last four quarters, the company has surpassed c ...

Quarterly revenue of $5.4 million in Q2 2024, compared to $5.3 million in Q2 2023 Gross Profit of $2.1 million or 39% in Q2 2024, compared to $1.6 million or 30% in Q2 2023, an increase of 32% Net loss of ($0.3) million in Q2 2024, compared to a net loss of ($0.9) million in Q2 2023 Adjusted EBITDA(1) of $0.2 million in Q2 2024, compared to Adjusted EBITDA loss of ($0.4) million in Q2 2023 __________ LAKE MARY, Fla., Aug. 13, 2024 /PRNewswire/ -- VerifyMe, Inc. (NASDAQ: VRME) together with its subsidiaries, ...

(Mark one) x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q For the quarterly period ended March 31, 2024 OR For the transition period from to Commission file number 001-39332 VERIFYME, INC. (Exact Name of Registrant as Specified in Its Charter) (State or Other Jurisdiction of Incorporation or Org ...

VerifyMe, Inc. (NASDAQ:VRME) Q1 2024 Earnings Conference Call May 14, 2024 11:00 AM ET Company Participants Nancy Meyers - Chief Financial Officer Adam Stedham - President & Chief Executive Officer Conference Call Participants Michael Petusky - Barrington Research Jack Vander Aarde - Maxim Group Operator Good day and welcome to the VerifyMe First Quarter 2024 Financial Results Conference Call. All participants will be in listen only mode. [Operator Instructions]. Please note this event is being recorded. I ...

Lake Mary, FL – May 14, 2024 – PRNewswire — VerifyMe, Inc. (NASDAQ: VRME) together with its subsidiaries, Trust Codes Global Limited ("Trust Codes Global") and PeriShip Global LLC ("PeriShip Global"), (together "VerifyMe," "we," "our," or the "Company") provides brand owners time and temperature sensitive logistics, supply chain traceability, authentication, anti- counterfeiting, and data-rich brand enhancement services, announced today the Company's financial results for its first quarter ended March 31, 2 ...