Company makes operational strides during quarter with management appointments and signing contract with HP
Third Quarter Net Loss Reduced 78% versus 2016
ROCHESTER, N.Y., Nov. 15, 2017 -- VerifyMe, Inc. (OTCQB: VRME), a pioneer in patented physical, cyber and biometric technologies that prevent identity theft, counterfeiting and fraud, today announced third quarter fiscal year 2017 results, ended September 30, 2017.
Entered into major, global 5-year contract with HP Indigo in September 2017, which will have its worldwide machines loaded with VerifyMe's RainbowSecure™ inks enabling approximately 4,500 HP Indigo digital presses around the world to seamlessly incorporate authentication measures;
Restructuring and recapitalization plan implemented with cash invested by newly appointed board members, and appointment of Patrick White as President and Chief Executive Officer and Keith Goldstein as Chief Operating Officer;
Q3 operating expenses lower by 15.3% compared to same quarter last year
Net loss was ($385,000) versus ($1.8 million) loss in Q3 2016 a 78% improvement
Cash balance at the end of September 2017 was $0.8 million compared to $23,000 at the end of the prior fiscal year.
The Company recently provided an overview of the restructuring and go forward strategy for VerifyMe at the Lytham Partners Virtual Investor Conference. Please click here to listen to the presentation: VerifyMe Presentation.
"I am pleased with the several accomplishments made during the quarter and the progress since my appointment only a few months ago," commented Patrick White, President and Chief Executive Officer of VerifyMe. "During the quarter we were able to secure a 5-year contract with HP Indigo to include our RainbowSecure ink technologies. This will allow HP Indigo's 4,500+ customers to seamlessly incorporate authentication measures on their various printed items, a major one being their packaging. We expect to see initial revenues from the HP relationship in early 2018 and build from there. I can't stress enough how significant this contract is for our company – not just from the financial perspective, but also the credibility and opportunities it has and will create."
Mr. White continued, "While the company recorded minimal revenues in the quarter, I'd like to highlight that we implemented tight expense controls and had a lower loss compared to last year. Going forward our goal is to keep the company as lean as possible and have minimal cash burn rates. We plan on remaining this way by engaging in contracts that leverage the company's technologies and patent portfolio and structure licensing or royalty deals, which will yield high gross margins."
Mr. White concluded, "While we still have lots more to do, we are off to a great start and a lot has been accomplished in a short amount of time. The HP Indigo contract completion has the company now positioned for profitability. I am also pleased with our progress in our digital biometric development and believe the Company has a viable future ahead in the biometric "people verification" segment. We are in the midst of filling our sales pipeline with deal flow, which is at various stages – both on the physical and digital/biometrics sides of the business."
Third Quarter Financial Results
Total revenue for the third quarter, which ended September 30, 2017, was $392 compared to $0 in the third quarter of fiscal 2016. Revenues in the quarter were minimal, but primarily driven by some legacy relationships. Revenues should ramp up in 2018.
Total operating expenses during the third quarter was $382,158, a decrease of 15.3% from $451,234 in the same quarter one year ago. Included in these expenses was share-based compensation (non-cash expense) of $101,229 and $134,127, for third quarter of 2017 and 2016, respectively. The lower expenses were from a decline in payroll expenses, as the company focused on retaining a new management team to focus more on sales and marketing efforts. The company will continue to maintain tight expense controls and low cash burn levels.
Net loss attributable to common shareholders was $(0.4) million, or $(0.01) per basic and diluted share, for the third quarter of fiscal 2017, compared to $(1.8) million, or $(0.24) per basic and diluted share, in the year ago third quarter.
Cash balance at September 30, 2017 was $0.8 million dollars compared to $0.0 million at the end of December 31, 2016.
About VerifyMe, Inc.
VerifyMe, Inc., is a high-tech solutions company that markets a broad patent portfolio that includes patents in the field of authenticating products and people. 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
Safe Harbor Statement
This release contains forward-looking statements regarding the timing of the receipt of revenues, the building of the sales pipeline, future profitability, future cash burn rates, future expenses and digital progress, 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, its ability to raise sufficient capital to support its operations, the condition of the equity markets in general and for microcap companies in particular 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, 2016. 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.
For investors contact:
Adam Lowensteiner or Robert Blum
646-829-9700 – New York
602-889-9700 - Phoenix
For the complete press release including financial tables please view the original press release at https://www.prnewswire.com/news-releases/verifyme-reports-third-quarter-fiscal-year-2017-results-300555774.html