VERB Chairman & CEO Letter to Stockholders

Core Viewpoint - Verb Technology Company is undergoing significant restructuring and believes its stock is undervalued based on its financial position and growth potential [3][4][12]. Financial Condition - As of October 10, 2024, the company's market capitalization is approximately $3.8 million, with cash reserves of about $17.2 million and minimal debt of approximately $125,000 at a low interest rate of 3.75% [3][12]. - The company asserts that if the stock traded solely on its net cash value, it should be valued at over $22 per share, indicating a significant discrepancy between market price and intrinsic value [3][14]. Business Structure and Growth - Verb has restructured into a holding company with three distinct business units, all of which are currently generating revenue and experiencing growth [5][13]. - The company anticipates that third quarter results will significantly surpass those of the second quarter, with fourth quarter results expected to exceed third quarter performance [5]. Business Units - The MARKET.live platform has transitioned to a service provider model for brands, with a focus on a partnership with TikTok, shifting its revenue model to fixed-price, contract-based recurring revenue [7]. - The GO FUND YOURSELF SHOW is a new venture aimed at disrupting the equity crowdfunding sector, providing issuers with a platform to reach a broader audience and generate revenue through various fees and sponsorships [8]. - A third business vertical is currently in development, which is expected to represent a substantial growth opportunity in a rapidly expanding sector [9]. Reverse Stock Split - The decision for a reverse stock split was made by stockholders to maintain Nasdaq listing, following a delisting notice due to stock trading patterns [10][12]. - The company emphasizes that management does not unilaterally decide on stock splits; it is a decision made by stockholders [11].