VerifyMe(VRME) - 2025 Q4 - Annual Results

Revenue Performance - VerifyMe reported Q4 2025 revenue of $2.4 million, a decrease of 68% from $7.7 million in Q4 2024, primarily due to the termination of the agreement with the previous shipping partner[6]. - The annual revenue for 2025 was $16.4 million, down from $24.2 million in 2024, with a net loss of $4.9 million compared to a net loss of $3.8 million in 2024[4]. - Total net revenue for the year ended December 31, 2025, was $16,398,000, a decrease of 32.2% compared to $24,207,000 for the year ended December 31, 2024[27]. Profitability Metrics - Gross profit for Q4 2025 was $1.2 million, representing a gross margin of 49%, compared to $2.4 million and a 32% margin in Q4 2024[7]. - Gross profit for the year ended December 31, 2025, was $6,321,000, down 27.0% from $8,662,000 in 2024[27]. - Adjusted EBITDA for 2025 was $1.0 million, an increase from $0.9 million in 2024, while Q4 2025 adjusted EBITDA was ($0.1) million compared to $0.5 million in Q4 2024[10]. - Adjusted EBITDA for the year ended December 31, 2025, was $1,033,000, an increase of 8.7% from $950,000 in 2024[29]. Operating Loss and Expenses - The operating loss for Q4 2025 was ($0.7) million, compared to an operating loss of ($0.3) million in Q4 2024, reflecting the impact of reduced revenue[8]. - Operating expenses for the year ended December 31, 2025, totaled $11,391,000, down 12.7% from $13,052,000 in 2024[27]. Cash and Assets - As of December 31, 2025, VerifyMe had cash of $4.4 million and a short-term note receivable of $2.0 million[4]. - Cash and cash equivalents rose to $4,353,000 as of December 31, 2025, compared to $2,823,000 as of December 31, 2024, marking a 54.3% increase[24]. - Total current assets increased to $7,727,000 as of December 31, 2025, from $6,362,000 as of December 31, 2024, representing a growth of 21.4%[24]. Liabilities and Shareholder Equity - Total liabilities decreased significantly to $2,025,000 as of December 31, 2025, from $5,853,000 as of December 31, 2024, a reduction of 65.5%[25]. - The weighted average common shares outstanding increased to 12,846,593 for the year ended December 31, 2025, from 10,402,508 in 2024, reflecting a growth of 23.5%[27]. Strategic Moves - The company is in the process of transitioning clients to a new shipping partner, which is expected to enhance service offerings[3]. - VerifyMe entered into an Agreement and Plan of Merger to combine with Open World, Ltd., indicating a strategic move for market expansion[11]. - The company terminated its ATM Sales Agreement with Roth Capital Partners, LLC, as part of its strategic adjustments[11]. Inventory and Other Metrics - The company’s inventory decreased slightly to $37,000 as of December 31, 2025, from $39,000 as of December 31, 2024[24]. - The net loss per diluted share in Q4 2025 was ($0.05), consistent with the loss per diluted share in Q4 2024[9]. - The company reported a net loss of $4,905,000 for the year ended December 31, 2025, compared to a net loss of $3,824,000 in 2024, indicating a worsening of 28.3%[27].