ROCHESTER, N.Y., May 16, 2018 /PRNewswire/ -- VerifyMe, Inc. (OTCQB: VRME), a technology solutions company that markets a broad patent portfolio and proprietary products that provide identifiers and serialization for authenticating, tracking and tracing functions for labels, packaging, products, people and financial transactions, today announced first quarter fiscal 2018 financial results for the period ended March 31, 2018.
- Announced reseller agreement with Micro Focus for global product authentication services;
- Appointed Mr. Carl E. Berg and Mr. Harvey Eisen, renowned investors and businessmen to board of directors;
- Signed technology licensing agreement with a leading Nasdaq listed global label solution provider;
- Entered into a strategic partnership with S-One Labels & Packaging, a division of S-One Holdings Corporation; and
- Signed a Technology Licensing Agreement with intelligent packaging solutions provider eAgile.
- Net loss increased to $1,123,633 from the first quarter 2017 net loss of $304,587;
- Total Adjusted EBITDA (a non-GAAP financial measure) for the first quarter of 2018 was $(48,905) versus $(188,658) in same period last year, an improvement of $139,753;
- Cash balance as of March 31, 2018 was $2,341,401 compared to $693,001 as of December 31, 2017, and $23,222 as of March 31, 2017.
Patrick White, President and Chief Executive Officer of VerifyMe, stated, "We achieved a key objective during the first quarter that will optimize our future earnings as we move the company into the revenue generation phase of our development process. During the quarter, we made a financial strategic decision to end a future revenue sharing program, so that we could benefit entirely from all future revenues. To do this, we paid out cash in relation to the Settlement Agreement outlined in the adjusted EBITDA chart below, of $500,000. We feel that the future savings that will be incurred by this transaction will significantly outweigh the cost."
Also, during the first quarter we announced two contracts with new highly credible clients who represent many well-known blue-chip global brand owners. On the physical goods side, not a day goes by without a news story about fraudulent goods being sold in the marketplace, which not only cause harm to the end users, but are damaging to companies' reputations and brands. It is these exact reasons which we hear directly from customers why they are searching for verification capabilities. So too is the situation when it comes to digital verification, whereby companies must have comfort in knowing that the person signing on, is actually that person. VerifyMe's digital biometric verification solution has the capabilities once fully developed to offer multi-factoring verification, which is starting to emerge. We've made significant strides with our software verification solution and expect to complete development so it will be ready to go to market in 2018."
Mr. White continued, "On the financial front, while we are on track to report revenues in the near-term, the company's capital structure is strong, thanks to the commitments made by the new board members during the quarter. We ended the first quarter in excess of $2.3 million in cash, significantly reduced our payables and the company has no debt. Our cash burn from ongoing operations in the quarter was minimal. We anticipate that the working capital on hand should give the company enough financial flexibility to implement our strategy and goals for the coming year and beyond."
Mr. White concluded, "Fiscal 2018 is off to a strong start, whereby we secured several key agreements to establish a strong foundation for the company's future. Our agreement with Micro Focus and S-One are transformational, as they have enabled VerifyMe to have the necessary infrastructure to compete on a global basis. In addition, the other agreements signed during the first quarter were also of significance to our company. Initially, they prove that our technologies work and meet the necessary verification criteria these customers are desiring. More importantly, we expect these relationships to begin to provide the company with early stage revenues in the second half of the calendar year."
Important Milestones to Watch For:
- Revenue Generation
- Additional Licensing Contracts
- New Cloud Connected Authentication Device
- Deployment of Multi-Factor Authentication for E-Signatures
Non-GAAP – Financial Measure:
This press release includes both financial measures in accordance with Generally Accepted Accounting Principles, or GAAP, as well as non-GAAP financial measures. Generally, a non-GAAP financial measure is a numerical measure of a company's performance, financial position or cash flows that either excludes or includes amounts that are not normally included or excluded in the most directly comparable measure calculated and presented in accordance with GAAP. Non-GAAP financial measures should be viewed as supplemental to, and should not be considered as alternatives to net income, operating income, and cash flow from operating activities, liquidity or any other financial measures. They may not be indicative of the historical operating results of VerifyMe nor are they intended to be predictive of potential future results. Investors should not consider non-GAAP financial measures in isolation or as substitutes for performance measures calculated in accordance with GAAP.
Our management uses and relies on Adjusted EBITDA, a non-GAAP financial measure. We believe that both management and shareholders benefit from referring to the following non-GAAP financial measure in planning, forecasting and analyzing future periods. Our management uses this non-GAAP financial measure in evaluating its financial and operational decision making and as a means to evaluate period-to-period comparison. Our management recognizes that the non-GAAP financial measure has inherent limitations because of the excluded items described above. VerifyMe excludes these expenses because they are non-cash or non-recurring in nature.
We have included in the table below a reconciliation of our non-GAAP financial measure to the most comparable financial measure calculated in accordance with GAAP. We believe that providing the non-GAAP financial measure, together with the reconciliation to GAAP, helps investors make comparisons between VerifyMe and other companies. In making any comparisons to other companies, investors need to be aware that companies use different non-GAAP measures to evaluate their financial performance. Investors should pay close attention to the specific definition being used and to the reconciliation between such measure and the corresponding GAAP measure provided by each company under applicable SEC rules.
About VerifyMe, Inc.
VerifyMe, Inc., is a technology solutions company that markets a broad patent portfolio and proprietary products that provide identifiers and serialization for authenticating, tracking and tracing functions for labels, packaging, products, people and financial transactions. VerifyMe's physical technology authenticates packaging, labels & documents with a suite of proprietary security inks and pigments. The company's digital technologies authenticate people by performing strong, multi-factor verification via its patented digital software platforms. To learn more, visit www.verifyme.com
Cautionary Note Regarding Forward-looking Statements
This release contains forward-looking statements regarding future revenue opportunities, future earnings, future savings form certain revenue sharing agreements, and important milestones, which involve uncertainty and risk. The words "believe," "may", "estimate," "continue," "anticipate," "intend," "should," "plan," "could," "target," "potential," "is likely," "will," "expect" and similar expressions, as they relate to us, are intended to identify forward-looking statements. We have based these forward-looking statements largely on our current expectations and projections about future events and financial trends that we believe may affect our financial condition, results of operations, business strategy and financial needs. Important factors that could cause actual results to differ from those in the forward-looking statements include the company's ability to work with larger partners in selling its technologies to large businesses, and issues which may affect its patents including potential litigation. Further information on our risk factors is contained in our filings with the SEC, including the Form 10-K for the year ended December 31, 2017. Any forward-looking statement made by us herein speaks only as of the date on which it is made. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. We undertake no obligation to publicly update any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by law.
For Licensing or other information contact:
Company: VerifyMe, Inc. Email: IR@verifyme.com Website: http://www.verifyme.com
For investors contact: Lytham Partners Adam Lowensteiner or Robert Blum 646-829-9700 – New York 602-889-9700 - Phoenix firstname.lastname@example.org
For the complete press release including financial tables please view the original press release at https://www.prnewswire.com/news-releases/verifyme-reports-first-quarter-fiscal-2018-financial-results-300649475.html