VerifyMe Reports First Quarter 2019 Results

Company Continues to Execute on Global and Domestic Expansion Iniatitives

Rochester, NY - May 15, 2019 – Accesswire — VerifyMe, Inc. (OTCQB: VRME), a technology solutions company that markets invisible ink identifiers and serialization for authenticating, tracking and tracing functions for labels, packaging and products, announced the Company's financial results for the first quarter ended March 31, 2019.

Key Financial Highlights for Q1 2019:

  • Revenues increased to $46,454, compared to $0 in Q1 2018
  • Operating loss decreased by 31% to $0.5 million
  • Net loss decreased by 54% to  $0.5 million
 
Key Business Highlights for Q1 2019:
  • Participated at several key industry events, including HP Indigo Singapore, DSCOOP and Brand Protection Excellence Forum
  • Strengthened Board of Directors with appointments of Eugene Robin, Arthur Laffer and Chris Gardner
  • A top 10 global consumer products company has applied VerifyMe’s RainbowSecure™ invisible ink technology to 4.5 million product labels during the quarter
  • New VerifyMe Smart Phone Authenticators manufactured in Q1 2019 – these devices will  be leased to brand owners and their investigative teams
 
Subsequent to the end of the first quarter, the Company executed several agreements that will accelerate revenue growth in future quarters.
  • Signed first European license agreement with Arca Etichette, based in Italy, to open European market to VerifyMe brand protection using HP Indigo digital presses
  • Signed commercial technology license agreement with Niagara Label, a western New York label manufacturer specializing in the food and beverage industry
  • Executed a strategic partnership with Covectra, a multi-layered brand protection company, to market and cross-sell each other’s products and services to the pharmaceutical and other industries
 
Management Commentary
“I am pleased to report that we have had an excellent start to the year as we executed on multiple  global and domestic pipeline development objectives.” commented, Patrick White, VerifyMe’s Chief Executive Officer. “All of our hard work and innovation on our security and authentication technology is being recognized by industry experts, partners and clients. Partners such as HP Indigo, Micro Focus, S-One LP and others, are now helping us in driving market adoption.”
 
Mr. White concluded, “Our recently announced contracts and partnerships with Arca Etichette, Niagra Label and Covectra validate our proprietary, patented and disruptive technology solutions for the global anti-counterfeit, piracy and brand protection markets. The late-2018 FDA mandate for serialization, track and trace for all pharmaceutical packaging and label has spurred great interest for our technology solutions in the pharmaceutical industry. We are exctited to now be in the commercializtion phase and look forward to ramping our revenue. Given our business model involves royalty rates based on volume of impressions and software in the cloud, we are targeting gross margins in the 70-80% range for 2019.  Watch for additional announcments concerning new significant clients and global market expansion.”
 
In conjunction with the smart phone reading device, the VeriPAS cloud-based software gives brand owners the ability to monitor, control and protect their products life cycle. This software resides in the cloud and brand owners can access it over the internet. The software generates serialization codes which the brand owner purchases from VerifyMe. These codes are then printed on labels and packaging in both visible codes for consumers to engage and invisible codes known as RainbowSecure which trained brand inspectors can review with VerifyMe’s smart phone reading device. 
 
Recently Announced Contracts and Partnerships
Arca Etichette (“Arca”) – April 16
Arca Etichette, a leading label and packaging company based in Milan, Italy, signed a license agreement for Arca to incorporate VerifyMe’s brand protection technology solutions to brand owners throughout Europe.
 
This agreement launches VerifyMe’s digital security, authentication and tracking solutions in Europe. The contract is the first leasing of VerifyMe’s patented smart phone authentication devices which reads invisible codes into the cloud and are recorded in the Company’s serialization, track & trace software platform called VeriPAS. VerifyMe’s devices will be leased to brand owners by Arca and in exchange for recurring revenue.
 
Arca’s business covers a wide range of industries, including Pharmaceuticals, Cosmetics, Toiletries, Food, Automotive, Domestic Appliances and Mechanical Components with National and Multinational Companies. Its global customer base of brand owners have increasingly experienced counterfeiting and product diversion of their products and have expressed a desire for a technology solution to mediate these issues to protect their brand and improve their profitability.
 
This global agreement provides Arca with the ability to place VerifyMe’s digital security, authentication and tracking technology solutions in the hands of brand owners who seek to secure their products and goods from counterfeiters and product diversion. This contract entails the first leasing of VerifyMe’s smartphone authentication devices, which read the invisible RainbowSecure™ codes into the cloud and are recorded in the Company’s serialization, track and trace software platform called, “VeriPAS”. These devices are expected to be leased to brand owners and investigators, which will result in a recurring leasing revenue business model for VerifyMe.
 
Niagra Label (“Niagra”) – April 24
Niagara Label, a western New York label manufacturer with 33 years experience signed a license agreement for Niagara to incorporate VerifyMe’s brand protection technology solutions to brand owners throughout the United States. 
 
Niagara is headquartered near Buffalo N.Y. and is strongly positioned and conveniently located to the Northeast, Midwest and Mid-Atlantic regions, specializing in the food & beverage markets.
Niagara works with brand owners in the following industries:
  • Wine, Beer & Spirits
  • Food & Beverage
  • Cannabis 
  • Health & Beauty
  • Industrial/Chemical
 
This global agreement will place VerifyMe’s digital security, authentication and tracking technology solutions in the hands of brand owners who seek to secure and track their products and goods from counterfeiters. The contract entails the leasing of VerifyMe’s Smart Phone authentication devices, which read the invisible RainbowSecure codes into the cloud and are recorded in the Company’s serialization, track and trace software platform called, VeriPAS. These devices are expected to be leased by Niagara Label brand owners and investigators, which will result in a recurring revenue and high gross margin business model for VerifyMe.
 
Covectra – May 6
Covectra, Inc., a multi-layered brand protection company, executed a strategic partnership agreement with VerifyMe. The Cross-Selling Agreement has been signed as a Memorandum of Understanding giving VerifyMe the ability to sell and create a distribution channel to the Pharmaceutical, Food & Beverage, Tobacco and other industries. The Agreement addresses the Pharmaceutical industry’s new Serialization, Track and Trace technology requirements mandated by the FDA in November 2018. 
 
The strategic partnership agreement enables the integration and cross-selling of both companies’ products with each other, specifically:
  • Integrate Covectra’s serialization code generation and management, packaging line serialization system, and authentication engine (“AuthentiTrack”) with VerifyMe’s VeriPAS covert authentication system.
  • Covectra will market and sell AuthentiTrack with the VeriPAS integration as part of its product offering to customers and potential customers who are seeking covert marking products and services.
  • VerifyMe will market and sell VeriPAS with the AuthentiTrack integration, as well as Covectra’s integration services to customers and potential customers who are seeking turnkey solutions integrated into their packaging lines.
  • The two companies will work together to commercialize Covectra’s StellaGuard solution for use with the HP Indigo digital printing presses that dispense VerifyMe’s RainbowSecure ink, and to integrate the solution with VeriPAS so that customers can use one application to read both the StellaGuard “stars” and VerifyMe’s covert RainbowSecure ink.
  • VerifyMe will be the exclusive reseller of the StellaGuard product for use with the HP Indigo digital printing presses and will be a non-exclusive reseller of the StellaGuard product for all other potential uses.

  • Will add additional mutually-agreed upon sales channel relationships to the partnership if and when they become available.
 
Financial Results for the Three Months Ended March 31, 2019:
Revenue for the three months ended March 31, 2019 was $46,454, compared to $0 for the three months ended March 31, 2018. The revenue relates to an order for the printing of labels with our authentication serialization technology for a large global brand owner.
 
Gross profit for the three months ended March 31, 2019 was $31,687, compared to $0 for the three months ended March 31, 2018. The resulting gross margin was 68.2% for the three months ended March 31, 2019.
 
General and administrative expenses for the three months ended March 31, 2019 were $232,682, a decrease of $262,892 or 53%, compared to $495,574 for the three months ended March 31, 2018. 
 
Legal and accounting expenses for the three months ended March 31, 2019 were $62,364, a decrease of $71,340 or 53%, compared to $133,704 for the three months ended March 31, 2018. 
 
Payroll expenses for the three months ended March 31, 2019 were $104,789, an increase of $12,738 or 14%, compared to $92,951 for the three months ended March 31, 2018. 
 
Research and development expenses for the three months ended March 31, 2019 were $3,643, a decrease of $8,553 or 70%, compared to $12,196 for the three months ended March 31, 2018. 
 
Sales and marketing expenses for the three months ended March 31, 2019 were $143,933, an increase of $135,891, compared to $8,042 for the three months ended March 31, 2018. The increase in sales and marketing relates to the Company entering its commercialization phase, specifically the hiring of our VP of Global Business Development and our increased participation in global trade shows.
 
Operating loss for the three months ended March 31, 2019 was $514,934, a decrease of $226,633, or 31%, compared to $741,567 for the three months ended March 31, 2018. 
 
Adjusted EBITDA loss for the three months ended March 31, 2019 was $420,142, an increase of $371,237, as compared to $48,905 for the three months ended March 31, 2018. 
 
Net loss for the three months ended March 31, 2019 was $513,306, a decrease of $610,327, or 54%, compared to $1,123,633 for the three months ended March 31, 2018. The resulting EPS loss for the three months ended March 31, 2019 was $(0.01) per diluted share, compared to $(0.01) per diluted share for the three months ended March 31, 2018.
 
 
Non-GAAP – Financial Measure:
This press release includes both a financial measures in accordance with Generally Accepted Accounting Principles, or GAAP, as well as a non-GAAP financial measure. 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 (loss), operating income (loss), 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 which is 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 comparisons.  Our management recognizes that the non-GAAP financial measure has  inherent limitations because of the excluded items described below.
 
VerifyMe defines Adjusted EBITDA as earnings (or loss) from continuing operations before the items in the table below. VerifyMe excludes these expenses because they are non-cash or non-recurring in nature.
 
We have included a reconciliation of our non-GAAP financial measure to the most comparable financial measures 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.
 
The following table presents a reconciliation of Adjusted EBITDA to net loss allocable to common shareholders, a GAAP financial measure:
 

    Three Month Ended March 31,   
    2019     2018  
             
Net loss   $ (513,306 )   $ (1,123,633 )
                 
Interest expense (income), net     (1,628 )     791  
Amortization and depreciation     5,707       5,034  
Total EBITDA (Non-GAAP)     (509,227 )     (1,117,808 )
                 
Adjustments:                
                 
Stock based compensation     -       32,644  
Fair value of options and warrants issued in exchange for services     123,711       205,969  
Fair value of restricted stock and restricted stock units issued in exchange for services     (34,626 )     51,290  
Common stock and warrants issued for services     -       -  
Share-based payment for settlement agreement with shareholders     -       279,000  
Cash payment for settlement agreement with shareholders     -       500,000  
                 
Total Adjusted EBITDA (Non-GAAP)   $ (420,142 )   $ (48,905 )
 
About VerifyMe, Inc.
VerifyMe, Inc., is a technology solutions company that markets products supported by patents, patent applications and trade secrets which provides identifiers and serialization for authenticating, tracking and tracing functions for labels, packaging and products. The company also markets multi-factor biometric verification solutions to verify people. VerifyMe’s physical technology authenticates packaging, labels and documents with a suite of proprietary security inks and pigments, which work in conjunction with serialization and track-and-trace software. The company’s digital technologies authenticate people by performing strong, multi-factor biometric 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 accelerating  revenue growth, our pipeline, the leasing of authenticators and the related recurring revenue and high gross margins and our projected 2019 gross margins. 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 partners in selling its technologies to businesses, production difficulties, our inability to enter into contracts and deals with future partners, and issues which may affect the reluctance of large companies to change their purchasing of products, acceptance of our technologies, and the efficiency of our authenticators in the field 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, 2018. 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
                 
 
 
 
 
 
 
 
FINANCIAL STATEMENTS
  
VerifyMe, Inc.
Balance Sheets
 
 
    As of  
    March 31, 2019     December 31, 2018  
    (Unaudited)        
ASSETS            
CURRENT ASSETS            
Cash and cash equivalents   $ 1,055,585     $ 1,673,201  
Accounts Receivable     28,262       30,373  
Deposits on Equipment     163,090       -  
Prepaid expenses and other current assets     22,781       25,781  
Inventory     30,374       41,982  
TOTAL CURRENT ASSETS     1, 307,292       1,771,337  
                 
INTANGIBLE ASSETS                
Patents and Trademarks, net of accumulated amortization of                
$264,001 and $258,294 as of March 31, 2019 and December 31, 2018     227,777       209,049  
Capitalized Software Costs     70,231       70,231  
TOTAL ASSETS   $ 1,605,300     $ 2,050,617  
                 
LIABILITIES AND STOCKHOLDERS' EQUITY                
                 
CURRENT LIABILITIES                
Accounts payable and other accrued expenses   $ 377,786     $ 411,211  
Accrued Payroll     81,370       69,041  
TOTAL CURRENT LIABILITIES     459,156       480,252  
                 
STOCKHOLDERS' EQUITY                
Series A Convertible Preferred Stock, $.001 par value, 37,564,767 shares                
 authorized; 264,778 shares issued and outstanding as of March 31, 2019 and                
304,778 shares issued and outstanding as of December 31, 2018     265       305  
                 
Series B Convertible Preferred Stock, $.001 par value; 85 shares                
  authorized; 0.85 shares issued and outstanding as of March 31, 2019 and 2018     -       -  
                 
Common stock of $.001 par value; 675,000,000 authorized; 103,993,706 and
102,553,706 issued, 103,643,166 and 102,203,166 shares outstanding as of
March 31, 2019 and December 31, 2018
    103,643       102,203  
                 
Additional paid in capital     60,932,481       60,844,796  
                 
Treasury stock as cost (350,540 shares at March 31, 2019 and December
31, 2018)
    (113,389 )     (113,389 )
                 
Accumulated deficit     (59,776,856 )     (59,263,550 )
STOCKHOLDERS' EQUITY     1,148,644       1,570,365  
                 
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY   $ 1,605,300     $ 2,050,617  
 
 
 
 
VerifyMe, Inc.
Statements of Operations
(Unaudited)
    Three months ended  
    March 31, 2019     March 31, 2018  
NET REVENUE            
Sales   $ 46,454     $ -  
                 
COST OF SALES     14,767       -  
                 
GROSS PROFIT     31,687       -  
                 
OPERATING EXPENSES                
General and administrative (a)     232,682       495,574  
Legal and accounting     62,364       133,704  
Payroll expenses (a)     104,789       92,051  
Research and development     3,643       12,196  
Sales and marketing (a)     143,143       8,042  
Total Operating expenses     546,621       741,567  
                 
LOSS BEFORE OTHER INCOME (EXPENSE)     (514,934 )     (741,567 )
                 
OTHER (EXPENSE) INCOME                
Interest income (expenses), net     1,628       (791 )
Settlement agreement with shareholders     -       (779,000 )
Gain on accounts payable forgiveness     -       397,725  
      1,628       (382,066 )
NET LOSS   $ (513,306 )   $ (1,123,633 )
                 
LOSS PER SHARE                
BASIC   $ (0.01 )   $ (0.01 )
DILUTED   $ (0.01 )   $ (0.01 )
                 
WEIGHTED AVERAGE COMMON SHARE OUTSTANDING                
BASIC     94,092,049       76,278,102  
DILUTED     94,092,049       76,278,102  
 
VerifyMe, Inc.
Statements of Cash Flows
(Unaudited)
 
    Three months ended  
    March 31, 2019     March 31, 2018  
CASH FLOWS FROM OPERATING ACTIVITIES            
Net loss   $ (513,306 )   $ (1,123,633 )
Adjustments to reconcile net loss to net cash used in                
operating activities:                
Stock based compensation     -       32,644  
Fair value of options and warrants issued in exchange for services     123,711       205,969  
Fair value of restricted stock and restricted stock units issued in exchange for services     (34,626 )     51,290  
Gain on accounts payable forgiveness     -       (397,725 )
Share-based payment for settlement agreement with shareholders     -       279,000  
Amortization and depreciation     5,707       5,034  
Changes in operating assets and liabilities:                
Accounts Receivable     2,111       -  
Deposit on Equipment     (163,090 )     -  
Inventory     11,608       (9,768 )
Prepaid expenses and other current assets     (4,200     (12,566 )
Accounts payable and accrued expenses     (21,096 )     (12,286 )
Net cash used in operating activities     (593,181 )     (982,041 )
                 
CASH FLOWS FROM INVESTING ACTIVITIES                
Purchase of Patents     (24,435 )     (825 )
Net cash used in investing activities     (24,435 )     (825 )
                 
CASH FLOWS FROM FINANCING ACTIVITIES                
Proceeds from exercise of warrants     -       1,476,489  
Proceeds from sale of common stock     -       1,154,777  
Net cash provided by financing activities     -       2,631,266  
                 
NET INCREASE  IN CASH AND                
CASH EQUIVALENTS     (617,616 )     1,648,400  
CASH AND CASH EQUIVALENTS - BEGINNING OF PERIOD     1,673,201       693,001  
                 
CASH AND CASH EQUIVALENTS - END OF PERIOD   $ 1,055,585     $ 2,341,401  
                 
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION                
Cash paid during the period for:                
Interest   $ -     $ -  
    Income taxes   $ -     $ -  
                 
SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES                
                 
Series A Convertible Preferred Stock converted to common stock   $ 800     $ 400  
Series B Convertible Preferred Stock converted to common stock   $ -     $ 599  
Cashless Exercise of Warrants   $ -     $ 4,028  
Common Stock and Warrants Issued for Common Stock Payable   $ -     $ 122,478  

VerifyMe Appoints Chris Gardner to its Board of Directors

Rochester, NY - May 14, 2019 – GlobeNewswire — VerifyMe, Inc. (OTCQB: VRME), a technology solutions company that markets invisible ink identifiers and serialization for authenticating, tracking and tracing functions for labels, packaging and products, announced today the appointment of Chris Gardner to its Board of Directors.

Christopher Paul Gardner (born February 9, 1954) is an American entrepreneur, private equity investor, international best-selling author and award-winning film producer. Gardner’s first book, “The Pursuit of Happyness”, was published in May of 2006. The book became a major motion picture starring Will Smith who portrayed Chris Gardner was released in December 2006. Gardner established the institutional brokerage firm of Gardner Rich and Company (GRC) in 1989. As an institutional brokerage firm, GRC executed transactions for institutions, public pension funds and unions globally. In December 2012 the Firm Closed. The death of his partner Holly Norwick in 2012, prompted a life changing experience for Gardner. Gardner has commented many times that being Holly’s primary care giver for the last three years of her life, was the greatest ‘honor’ that he’s ever received in his life. Gardner has also received multiple awards. They include the NAACP Image Awards, The Peabody Award from PBS for the production of the documentary on the life of Dr. Maya Angelou and ‘The Lone Sailor’ Award from the United States Navy Memorial Foundation. Some of the previous recipients of the ‘Lone Sailor’ Award include Arnold Palmer, Astronaut and Senator John Glenn and President John F. Kennedy. Gardner is currently a Senior Advisor to Wisdom Tree Asset Management and previously was the Ambassador of Happyness for the AARP which has 40 million members.

In addition to his management of private equity investments focused on Fintech, Mr. Gardner’s speaking engagements for governments, Fortune 500 companies and non-government organizations require him to travel 200 days a year.

Chris Gardner, stated, “I am excited to join the VerifyMe Board at this time. The company’s technology is at the forefront of security and authentication and addresses areas of vulnerability in brand protection and packaging. Recent contract awards validate the company’s value-add and position it at an inflection point to begin to accelerate its revenue. I look forward to utilizing my network of relationships I have built over the years to assist in the growth of VerifyMe in any way I can.”

VerifyMe Chief Executive Officer Patrick White, commented, “We welcome Chris Gardner to our Board and look forward to his advice, guidance and network of relationships. His entrepreneurial experience and drive will be a valuable asset to VerifyMe, as we seek to accelerate our business growth.”

About VerifyMe, Inc.

VerifyMe, Inc., is a technology solutions company that markets products supported by patents, patent applications and trade secrets which provides identifiers and serialization for authenticating, tracking and tracing functions for labels, packaging and products. The company also markets multi-factor biometric verification solutions to verify people. VerifyMe’s physical technology authenticates packaging, labels and documents with a suite of proprietary security inks and pigments, which work in conjunction with serialization and track-and-trace software. The company’s digital technologies authenticate people by performing strong, multi-factor biometric 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 revenue opportunities, the use of our products in additional presses and locations, the results of ongoing tests, and roll-out of our products and authentication devices 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 partners in selling its technologies to businesses, production difficulties, our inability to enter into contracts and deals with future partners, and issues which may affect the reluctance of large companies to change their purchasing of products, acceptance of our technologies, the efficiency of our authenticators in the field and our 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, 2018. 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

VerifyMe and Covectra Enter Into a Strategic Partnership

Plans to Market and Cross-Sell Each Other’s Products and Services

Rochester, NY, May 06, 2019 (GLOBE NEWSWIRE) -- via NEWMEDIAWIRE -- VerifyMe, Inc. (OTCQB: VRME), a digital security, authentication and tracking technology solutions provider, announced today that it has entered into a strategic partnership with Covectra, Inc., a multi-layered brand protection company.

The Cross Selling Agreement has been signed as a Memorandum of Understanding giving VerifyMe the ability to sell and create a distribution channel to the Pharmaceutical, Food & Beverage, Tobacco and other industries. The Agreement addresses the Pharmaceutical industry’s new Serialization, Track and Trace technology requirements mandated by the FDA in November 2018.

VerifyMe Chief Executive Officer, Patrick White, stated, “We are excited to team up with Covectra and believe our technologies when integrated together provide a stronger complete solution for brand protection. This agreement quickens our penetration into the pharmaceutical industry. We look forward to identifying and penetrating market opportunities with our new partner and generating revenue for both companies.”

Covectra Chief Executive Officer, Stephen Wood, commented, “VerifyMe has superior technology and we look forward to working together to address security, authentication and brand protection across various industries. The recent mandate by the FDA for serialization, track and trace technology for the pharmaceutical industry is a ripe multi-billion-dollar opportunity for our partnership to address.”

The strategic partnership agreement enables the integration and cross-selling of both companies’ products with each others, specifically:

  • Integrate Covectra’s serialization code generation and management, packaging line serialization system, and authentication engine (“AuthentiTrack”) with VerifyMe’s VeriPAS covert authentication system.
  • Covectra will market and sell AuthentiTrack with the VeriPAS integration as part of its product offering to customers and potential customers who are seeking covert marking products and services.
  • VerifyMe will market and sell VeriPAS with the AuthentiTrack integration, as well as Covectra’s integration services to customers and potential customers who are seeking turnkey solutions integrated into their packaging lines.
  • The two companies will work together to commercialize Covectra’s StellaGuard solution for use with the HP Indigo digital printing presses that dispense VerifyMe’s RainbowSecure ink, and to integrate the solution with VeriPAS so that customers can use one application to read both the StellaGuard “stars” and VerifyMe’s covert RainbowSecure ink.
  • VerifyMe will be the exclusive reseller of the StellaGuard product for use with the HP Indigo digital printing presses and will be a non-exclusive reseller of the StellaGuard product for all other potential uses.
  • Will add additional mutually-agreed upon sales channel relationships to the partnership if and when they become available.

About Covectra, Inc.

Covectra was founded in 2008 to develop serialization-based solutions for track & trace as well as to combat drug abuse and diversion and counterfeiting. In 2009, the company launched its cloud-hosted AuthentiTrack serialization database capable of serial number generation, management, and aggregation from unit dose up to pallet, with rework capability in the supply chain.

To date, Covectra has processed over 2 billion serial numbers for global brand owners. Rounding out its suite of multi-layered brand protection products, the company has since introduced ControlTrack for monitoring drug compliance and its StellaGuard security label for smartphone tracking and authentication.

For additional information on Covectra, Inc., please visit: https://www.covectra.com

About VerifyMe, Inc.

VerifyMe, Inc., is a technology solutions company that markets products supported by patents, patent applications and trade secrets which provides identifiers and serialization for authenticating, tracking and tracing functions for labels, packaging and products. The company also markets multi-factor biometric verification solutions to verify people. VerifyMe’s physical technology authenticates packaging, labels and documents with a suite of proprietary security inks and pigments, which work in conjunction with serialization and track-and-trace software. The company’s digital technologies authenticate people by performing strong, multi-factor biometric 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 including penetrating the pharmaceutical industry and revenue opportunities from the partnership, 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 Covectra, the reluctance of large companies to change their purchasing of products and acceptance of new technologies, and the adherence of the pharmaceutical industry to the track and trace regulations. 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, 2018. 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

VerifyMe Signs Commercial Technology License Agreement with Niagara Label

Niagara Prints Labels for Cannibis Industry Brand Owners

Rochester, NY - April 24, 2019 – GlobeNewswire — VerifyMe, Inc. (OTCQB: VRME) (the “Company”), a digital security, authentication and tracking technology solutions provider, and Niagara Label (“Niagara”), a western New York label manufacturer with 33 years experience, today announced the signing of a license agreement for Niagara to incorporate VerifyMe’s brand protection technology solutions to brand owners throughout the United States.

Niagara is headquartered near Buffalo N.Y. and is strongly positioned and conveniently located to the Northeast, Midwest and Mid-Atlantic regions, specializing in the food & beverage markets.

Niagara works with brand owners in the following industries:

• Wine, Beer & Spirits

• Food & Beverage

• Cannabis

• Health & Beauty

• Industrial/Chemical

VerifyMe’s technologies are approved and supported by Hewlett-Packard (“HP”) Indigo Series 3 digital printing presses. HP markets VerifyMe’s security invisible ink technology as “ElectroInk Security 523”. Our partner, S-One Labels & Packaging (S-One LP), manages sales and marketing of VerifyMe products.

This global agreement will place VerifyMe’s digital security, authentication and tracking technology solutions in the hands of brand owners who seek to secure and track their products and goods from counterfeiters. The contract entails the leasing of VerifyMe’s Smart Phone authentication devices, which read the invisible RainbowSecure codes into the cloud and are recorded in the Company’s serialization, track and trace software platform called, VeriPAS. These devices are expected to be leased by Niagara Label brand owners and investigators, which will result in a recurring revenue and high gross margin business model for VerifyMe.

In conjunction with the smart phone reading device, the VeriPAS cloud-based software gives brand owners the ability to monitor, control and protect their products life cycle. This software resides in the cloud and brand owners access it over the internet. The software generates serialization codes which the brand owner purchases from VerifyMe. These codes are then printed on labels and packaging in both visible codes for consumers to engage and invisible codes known as RainbowSecure which trained brand inspectors review with our reading device.

VerifyMe Chief Executive Officer Patrick White, commented, “Licensing is heating up. We are thrilled to have secured this agreement with Niagara Label who is a premier Western New York label manufacturer. The close proximity to our Rochester, NY headquarters provides VerifyMe an excellent venue to showcase the technologies to major brand owners who have sought help from us in protecting their brands from product diversion and counterfeiting. Its important to note that Niagara’s business covers a wide range of industries and brands including the burgeoinging cannaibis packaging industry that requires our technologies more than other types of products due to the strict state by state regulatory requirements.”

Niagara Label CEO, Keith Hatswell, stated, “We are very excited to work with VerifyMe and roll-out its technology solution across a variety of industries. Our customer base of brand owners have increasingly experienced counterfeiting of their products or goods and have expressed a desire for a technology solution to mediate these issues to protect their brand and improve their profitability. We believe VerifyMe’s technology provides a high value-add solution that our brand owners will seek to deploy. We look forward to working with VerifyMe’s team in rolling this out to our existing and new customers.”

For additional information on the smartphone Authenticator and VeriPAS technology solution, please visit: https://www.verifyme.com/rainbowsecure

To view VerifyMe’s recent presentation at the HP Indigo’s Singapore Event on its New Brand Protection Technologies to VIP Print Service Providers in the Japan, Asia China HP Market Region, please visit: https://www.verifyme.com/verifyme-brand-protection

About Niagara Label

Niagara Label is a privately owned, pressure sensitive label manufacturer near Buffalo N.Y. They are strongly positioned and conveniently located to the Northeast, Midwest and Mid-Atlantic regions, specializing in the food & beverage markets. With over 34 years experience, they understand the importance of high quality and a competitive price, however it is their devotion to unparalleled customer satisfaction coupled with an understanding of industry specific needs that truly set them apart from the competition. They pride themselves on the long, mutually beneficial relation ships they have built with their vendors, customers and employees, and it is THEIR success that truly defines WHY Niagara Label does what it doesWith a continuous improvement approach, state of the art printing presses, digital equipment and HD prepress/design departments, Niagara Label is poised to ensure the highest quality of prime product labels for every market sector. Their responsive, can-do approach lends itself perfectly to the just-in-time requirements of today’s print demands. They think of their customers as partners and work hard to ensure that the feeling is mutual.

For additional information, please visit: http://www.niagaralabel.com

About VerifyMe, Inc.

VerifyMe is a global technology company which specializes in brand protection and biometric people authentication. VerifyMe combines proprietary invisible security inks with cloud-based serialization, track and trace block chain software that enables brand owners to monitor, control and authenticate their products complete “life cycle”. In addition, VerifyMe has a digital software platform that authenticates people by biometrics and other multi-factor verification processes.

VerifyMe’s physical technology authenticates packaging, labels and documents with a suite of proprietary security inks and pigments, which work in conjunction with serialization and track-and-trace software. The company’s digital technologies authenticate people by performing strong, multi-factor biometric 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 our receipt of future revenue from the Niagara Label relationship and the rollout of the VerifyMe solution. 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 acceptance by Niagara Label customers of our devices and our technology as a weapon in fighting counterfeiting and product diversion, Niagara Label’s ability to work with its customers in licensing our authenticators and pricing issues which may affect their ability to lease our authenticators and sell our technology to customers. 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, 2018. 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

VerifyMe Signs First European License Agreement

Arca Etichette, Based in Italy, Opens European Market to VerifyMe Brand Protection Using HP Indigo Digital Presses

Rochester, NY - April 16, 2019 – GlobeNewswire — VerifyMe, Inc. (OTCQB: VRME) (the “Company”), a digital security, authentication and tracking technology solutions provider, and Arca Etichette (“Arca”), a leading label and packaging company based in Milan, Italy, today announced that they had signed a license agreement for Arca to incorporate VerifyMe’s brand protection technology solutions to brand owners throughout Europe.

This agreement will also launch VerifyMe’s digital security, authentication and tracking solutions in Europe. The contract is the first leasing of VerifyMe’s patented smart phone authentication devices which reads invisible codes into the cloud and are recorded in the Company’s serialization, track & trace software platform called VeriPAS. VerifyMe’s devices will be are leased to brand owners by Arca and in exchange for recurring revenue.

VerifyMe Chief Executive Officer Patrick White, commented, “We are thrilled to have secured this agreement with Arca, as it’s our Company’s first ever contract with an important European label provider that completes our transition from a US only client base to a global client base. The problem of counterfeiting and product diversion continues to grow uncontrollably all around the world. Brand owners need a solution now and our VeriPAS system is the most complete, effective and compelling solution on the market. We look forward to rolling out the deployment of our new smart phone authenticators and VeriPAS cloud software solution with Arca. Look for future announcements in the coming months as we expand and strengthen our international footprint.”

VerifyMe’s technologies are approved and supported by Hewlett-Packard (“HP”) Indigo digital printing presses. HP markets VerifyMe’s security invisible ink technology as “ElectroInk Security 523”. Our partner, S-One Labels & Packaging (S-OneLP), manages sales and marketing of VerifyMe products.

Arca’s business covers a wide range of industries, including Pharmaceuticals, Cosmetics, Toiletries, Food, Automotive, Domestic Appliances and Mechanical Components with National and Multinational Companies.

Arca Label Division Chief Operating Officer, Dr. Roberto Sala, stated, “We are very excited to work with VerifyMe and roll-out their technology solutions across a variety of industries throughout Europe. Our global customer base of brand owners have increasingly experienced counterfeiting and product diversion of their products and have expressed a desire for a technology solution to mediate these issues to protect their brand and improve their profitability. We believe VerifyMe’s technology provides a high value-add solution that our brand owners will seek to deploy. We look forward to working with VerifyMe’s team in rolling this out to our existing and new customers.”

This global agreement provides Arca with the ability to place VerifyMe’s digital security, authentication and tracking technology solutions in the hands of brand owners who seek to secure their products and goods from counterfeiters and product diversion. This contract entails the first leasing of VerifyMe’s smartphone authentication devices, which read the invisible RainbowSecure™ codes into the cloud and are recorded in the Company’s serialization, track and trace software platform called, “VeriPAS”. These devices are expected to be leased to brand owners and investigators, which will result in a recurring leasing revenue business model for VerifyMe.

In conjunction with the smart phone reading device, the VeriPAS cloud-based software gives brand owners the ability to monitor, control and protect their products life cycle. This software resides in the cloud and brand owners access it over the internet. The software generates serialization codes which the brand owner purchases from VerifyMe. These codes are then printed on labels and packaging in both visible codes for consumers to engage and invisible codes known as RainbowSecure which trained brand inspectors review with VerifyMe’s smart phone reading device.

For additional information on the smartphone Authenticator and VeriPAS technology solution, please visit: https://www.verifyme.com/rainbowsecure

To view VerifyMe’s recent presentation at the HP Indigo’s Singapore Event on its New Brand Protection Technologies to VIP Print Service Providers in the Japan, Asia China HP Market Region, please visit: https://www.verifyme.com/verifyme-brand-protection

About Arca Etichette A company that is consistently committed to perfecting its products: materials selected by a fully equipped laboratory, modern and innovative printing machines, a qualified and highly motivated staff. Advanced labels and sleeves that ensure compliance with all specifications and provide the level of efficiency required for the manufacturing industry. At Arca, investments in R&D is approximately 5% of net earnings, with, on average, one patent every year. ISO 9001 certified quality system (covering engineering design, production and sales) is based on modern production processes, inspired by theories of “lean production” and total quality.

A flexible organization that works hard to satisfy customers, with a clear vision and precise mission. Specializing in self-adhesive labels and shrink sleeves, Arca also manufactures labeling machines. Designing and manufacturing both consumables and machinery, Arca is a one-stop supplier, mastering both aspects of the industry, providing unparalleled project design consulting and a comprehensive service. See www.arcaetichette.it/?lang=en and www.arcalabelingmarking.com

About VerifyMe, Inc. VerifyMe is a global technology company which specializes in brand protection and biometric people authentication. VerifyMe combines proprietary invisible security inks with cloud-based serialization, track and trace block chain software that enables brand owners to monitor, control and authenticate their products complete “life cycle”. In addition, VerifyMe has a digital software platform that authenticates people by biometrics and other multi-factor verification processes.

VerifyMe’s physical technology authenticates packaging, labels and documents with a suite of proprietary security inks and pigments, which work in conjunction with serialization and track-and-trace software. The company’s digital technologies authenticate people by performing strong, multi-factor biometric 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 our receipt of future revenue from the Arca relationship and our smart phone authenticators. 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 European market’s acceptance of our devices and our technology as a weapon in fighting counterfeiting, Arca’s ability to work with its customers in licensing our authenticators and pricing issues which may affect Arca’s ability to lease our authenticators and sell our technology to customers. 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, 2018. 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

VerifyMe to Present and Exhibit at 5th Annual Brand Protection Excellence Forum

April 4-5 in Amsterdam

Rochester, NY, April 03, 2019 (GLOBE NEWSWIRE) -- via NEWMEDIAWIRE -- VerifyMe, Inc. (OTCQB: VRME), a technology solutions company that markets products supported by patents, patent applications and trade secrets which provides identifiers and serialization for authenticating, tracking and tracing functions for labels, packaging and products, is pleased to announce its participation as a Conference Presenter and Exhibitor at the Brand Protection Excellence Forum in Amsterdam, The Netherlands. The event will be held at Mercure Hotel Amsterdam City.

For information on the event, please visit: https://www.brainlinx.com/BPEF2019/

VerifyMe will be presenting the latest information on “detecting and dismantling counterfeiting and product diversion operations” at the 2019 Brand Protection Excellence Forum in Amsterdam, The Netherlands, April 4-5. Former FBI Special Agent Keith Cutri, now VP of Global Business Development for VerifyMe, will discuss strategies for brand owners to consider when mitigating the risk of counterfeiting, product diversion, and illicit trade throughout the world. VerifyMe will also exhibit and demonstrate their latest advanced brand protection solutions, including the RainbowSecure® covert marking system for HP Indigo digital presses, and the VeriPAS product authentication cloud-based software system for tracking products, globally.

About VerifyMe, Inc.

VerifyMe, Inc., is a technology solutions company that markets products supported by patents, patent applications and trade secrets which provides identifiers and serialization for authenticating, tracking and tracing functions for labels, packaging and products. The company also markets multi-factor biometric verification solutions to verify people. VerifyMe’s physical technology authenticates packaging, labels and documents with a suite of proprietary security inks and pigments, which work in conjunction with serialization and track-and-trace software. The company’s digital technologies authenticate people by performing strong, multi-factor biometric verification via its patented digital software platforms. To learn more, visit www.verifyme.com

For Licensing or Other Information Contact: Company: VerifyMe, Inc. Email: IR@verifyme.com Website: http://www.verifyme.com

VerifyMe Reports Fourth Quarter and Full Year 2018 Results

Rochester, NY - April 2, 2019 – GlobeNewswire — VerifyMe, Inc. (OTCQB: VRME), a technology solutions company that markets products supported by patents, patent applications and trade secrets which provides identifiers and serialization for authenticating, tracking and tracing functions for labels, packaging and products, today announced the Company's financial results for the fourth quarter and year ended December 31, 2018.

Key Financial Highlights for Q4 2018:

• Revenues increased to $39,772, compared to $0 in Q4 2017
• Operating loss decreased by 71% to $0.5 million
• Net loss decreased by 76% to $534,158
• Adjusted EBITDA decreased by 33% to $0.4 million

Key Financial Highlights for Full Year 2018:

• Revenues increased to $78,884, compared to $0 in 2017
• Operating loss decreased by 8% to $2.6 million
• Net loss decreased by 13% to $2.9 million
• Adjusted EBITDA decreased by 1% to $1.3 million

Key Business Highlights for Q4 and Full Year 2018:

• Executed three reseller agreements; a global label manufacturer and two print service providers
• Global contractual partnerships with HP Indigo, Micro Focus and S-One LP continued to progress and are expected to generate revenue in 2019
• HP Indigo expanding RainbowSecure to its largest series of digital printers
• Placed order for Smartphone Enabled Cloud Connected Authentication devices
• FDA mandate for serialization, track and trace for all pharmaceutical packaging and labeling
• A top 10 global consumer products company has expanded its use of RainbowSecure to 2.5 million product labels in the month of January 2019

Subsequent to the end of 2018, the Company has been actively marketing with HP Indigo and S-One LP. These engagements have involved demonstrating the technology solutions at tradeshows and active discussions and meetings with prospective clients.

Given our business model involves royalty rates based on volume of impressions and software in the cloud, we are targeting gross margins in the 70-80% range for 2019.

Management Commentary

“We had an extremely eventful and productive 2018, as we continued to lay the groundwork for commercializing our technology. We have now transitioned from research and development to the sales and marketing and revenue ramp stage,” commented, Patrick White, VerifyMe’s Chief Executive Officer. “Our security and authentication technology is applicable across a wide range of industries and applications. We have successfully aligned with partners such as HP Indigo, Micro Focus, S-One LP and others, which will now assist us in driving market adoption. Our pipeline of prospects is robust as we look to scale our business and ramp our revenue in 2019.

Mr. White concluded, “While 2018 was a success, we know this is just the beginning. There is much work to do in delivering our proprietary, patented and disruptive technology solutions for the global anti-counterfeit, piracy and brand protection markets, and continuing to build shareholder value.”

Financial Results for the Three Months Ended December 31, 2018:

Revenue for the three months ended December 31, 2018 was $39,772, compared to $0 for the three months ended December 31, 2017.

Gross profit for the three months ended December 31, 2018 was $25,251, compared to $0 for the three months ended December 31, 2017. The resulting gross margin was 63.5% for the three months ended December 31, 2018.

General and administrative expenses for the three months ended December 31, 2018 was $206,330, a decrease of $610,786 or 75%, compared to $817,116 for the three months ended December 31, 2017.

Legal and accounting expenses for the three months ended December 31, 2018 was $54,401, a decrease of $48,987 or 47%, compared to $103,388 for the three months ended December 31, 2017.

Payroll expenses for the three months ended December 31, 2018 was $47,319, a decrease of $604,978 or 93%, compared to $652,297 for the three months ended December 31, 2017.

Research and development expenses for the three months ended December 31, 2018 was $85,383, a decrease of $9,418 or 10%, compared to $94,801 for the three months ended December 31, 2017.

Sales and marketing expenses for the three months ended December 31, 2018 was $118,073, an increase of $114,273, compared to $3,800 for the three months ended December 31, 2017.

Operating loss for the three months ended December 31, 2018 was $486,215, a decrease of $1,185,579, or 71%, compared to $1,671,794 for the three months ended December 31, 2017.

Adjusted EBITDA loss for the three months ended December 31, 2018 was $416,157, a decrease of $209,428 or 33% compared to $625,585 for the three months ended December 31, 2017.

Net loss for the three months ended December 31, 2018 was $534,158, a decrease of $1,653,103, or 76%, compared to $2,187,261 for the three months ended December 31, 2017. The resulting EPS loss for the three months ended December 31, 2018 was $(0.00) per diluted share, compared to $(0.08) per diluted share for the three months ended December 31, 2017.

Financial Results for the Year Ended December 31, 2018:

Revenue for the year ended December 31, 2018 was $74,884, compared to $0 for the year ended December 31, 2017.

Gross profit for the year ended December 31, 2018 was $46,082, compared to $0 for the year ended December 31, 2017. The resulting gross margin was 61.5% for the year ended December 31, 2018.

General and Administrative expenses for the year ended December 31, 2018 were $1,585,329, a decrease of $104,554 or 6%, compared to $1,689,883 for the year ended December 31, 2017. The decrease is attributable primarily to a decrease in non-cash stock-based compensation for consultants.

Legal and accounting expenses for the year ended December 31, 2018 was $416,772, an increase of $170,252 or 69%, compared to $246,520 for the year ended December 31, 2017. In the beginning of 2017, the Company had released its then attorneys and hired its current attorneys in the second quarter of 2017. Thus, charges in 2018 for legal fees include a full year, in comparison to half year charges in 2017.

Payroll expenses for the year ended December 31, 2018 was $316,837, a decrease of $450,420 or 59%, compared to $767,257 for the year ended December 31, 2017. The majority of the decrease was the result of lower non-cash charges related to stock-based compensation.

Research and development expenses for the year ended December 31, 2018 was $187,655, an increase of $59,611 or 47%, compared to $128,044 for the year ended December 31, 2017.

Sales and marketing expenses for the year ended December 31, 2018 was $135,290, an increase of $131,490, compared to $3,800 for the year ended December 31, 2017. The increase was related to hiring of the Company’s VP of Sales, and expenses for travel and costs related to various trade shows and other sales and marketing activities.

Operating loss for the year ended December 31, 2018 was $2,595,801, a decrease of $239,703 or 8%, compared to $2,835,504 for the year ended December 31, 2017.

Adjusted EBITDA loss for the year ended December 31, 2018 was $1,310,960, a decrease of $12,788, or 1%, compared to $1,323,748 for the year ended December 31, 2017.

Net loss for the year ended December 31, 2018 was $2,932,462, a decrease of $452,878, or 13%, compared to $3,385,340 for the year ended December 31, 2017. The resulting EPS loss for the year ended December 31, 2018 was $(0.03) per diluted share, compared to $(0.14) per diluted share for the year ended December 31, 2017.

About VerifyMe, Inc.

VerifyMe, Inc., is a technology solutions company that markets products supported by patents, patent applications and trade secrets which provides identifiers and serialization for authenticating, tracking and tracing functions for labels, packaging and products. The company also markets multi-factor biometric verification solutions to verify people. VerifyMe’s physical technology authenticates packaging, labels and documents with a suite of proprietary security inks and pigments, which work in conjunction with serialization and track-and-trace software. The company’s digital technologies authenticate people by performing strong, multi-factor biometric verification via its patented digital software platforms. To learn more, visit www.verifyme.com

Non-GAAP – Financial Measure:

This press release includes both a financial measures in accordance with Generally Accepted Accounting Principles, or GAAP, as well as a non-GAAP financial measure. 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 (loss), operating income (loss), 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 which is 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 comparisons. Our management recognizes that the non-GAAP financial measure has inherent limitations because of the excluded items described below.

VerifyMe defines Adjusted EBITDA as earnings (or loss) from continuing operations before the items in the table below. VerifyMe excludes these expenses because they are non-cash or non-recurring in nature.

We have included a reconciliation of our non-GAAP financial measure to the most comparable financial measures 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.

The following table presents a reconciliation of Adjusted EBITDA to net loss allocable to common shareholders, a GAAP financial measure:

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VerifyMe Appoints Dr. Arthur Laffer to its Board of Directors

Leading American Economist to Provide Business Strategy and Operations Advice and Capital Markets Expertise

Rochester, N.Y., March 27, 2019 – GlobeNewswire — VerifyMe, Inc. (OTCQB: VRME), a technology solutions company that markets products supported by patents, patent applications and trade secrets which provides identifiers and serialization for authenticating, tracking and tracing functions for labels, packaging and products, announced today the appointment of Dr. Arthur Laffer, a leading American economist, to its Board of Directors.

DrArthurLaffer.png

Arthur Betz Laffer is an American economist who first gained prominence during the Reagan administration as a member of Reagan's Economic Policy Advisory Board (1981–89). Laffer is best known for the Laffer curve, an illustration of the concept that there exists some tax rate between 0% and 100% that will result in maximum tax revenue for government. Laffer's economic insight and influence in triggering a world-wide tax-cutting movement in the 1980s earned him the nickname "The Father of Supply-Side Economics." He is the author and co-author of many books and newspaper articles, including Return to Prosperity: How America Can Regain its Economic Superpower Status, co-authored with Stephen Moore, An Inquiry into the Nature and Causes of the Wealth of States, co-authored with Stephen Moore, Rex A. Sinquefield and Travis H. Brown and Trumponomics: Inside the America First Plan to Revive Our Economy with Stephen Moore. Laffer serves on many boards of directors, including the "Board of Scholars" of the American Legislative Exchange Council (ALEC). Laffer was one of four economists who acted as advisers to Donald Trump's successful 2016 campaign for the presidency of the United States. Laffer is the founder and chairman of Laffer Associates, an institutional economic research and consulting firm, as well as Laffer Investments, an institutional investment management firm utilizing diverse investment strategies in Nashville, TN.

Dr. Laffer received a B.A. in economics from Yale University in 1963. He received a MBA and a Ph.D. in economics from Stanford University in 1965 and 1972, respectively.

Dr. Arthur Laffer, stated, “I am pleased to join the VerifyMe Board at this time, as the Company is at an exciting inflection point. Its technology is superior and addresses a massive void in the market of security and authentication. I look forward to assisting Patrick and his team in delivering their technology solutions to the market and creating a formidable company.”

VerifyMe Chief Executive Officer Patrick White, commented, “We welcome Dr. Laffer to our Board and look forward to his advice and guidance. We look forward to working closely with he and his team and being part of their network of relationships. His vast experience and connections would be a valuable asset to VerifyMe, as we seek to accelerate our business growth and capital markets strategy.”

About VerifyMe, Inc.

VerifyMe, Inc., is a technology solutions company that markets products supported by patents, patent applications and trade secrets which provides identifiers and serialization for authenticating, tracking and tracing functions for labels, packaging and products. The company also markets multi-factor biometric verification solutions to verify people. VerifyMe’s physical technology authenticates packaging, labels and documents with a suite of proprietary security inks and pigments, which work in conjunction with serialization and track-and-trace software. The company’s digital technologies authenticate people by performing strong, multi-factor biometric verification via its patented digital software platforms. To learn more, visit www.verifyme.com

For Licensing or Other Information Contact:

Company: VerifyMe, Inc.

Email: IR@verifyme.com

Website: http://www.verifyme.com

VerifyMe Participating at DSCOOP

In Conjunction with Partner S-One LP

ROCHESTER, NY, March 25, 2019 (GLOBE NEWSWIRE) -- via NEWMEDIAWIRE – VerifyMe, Inc. (OTCQB: VRME), a technology solutions company that markets products supported by patents, patent applications, and trade secrets, which provides identifiers and serialization for authenticating, tracking and tracing functions for labels, packaging and products, is pleased to announce that it is exhibiting at DSCOOP, an HP Indigo conference, on March 25-27 in Orlando, Florida. DSCOOP (Digital Solutions Cooperative) is a dynamic, user-driven community of HP Graphic Arts press owners and their sales, marketing, and production teams.

VerifyMe is participating with its partner S-One Labels & Packaging in Solutions Showcase booth #305. DSCOOP is an HP Indigo show and is attended by its Print Service Providers.

For more information, please visit: https://www.eiseverywhere.com/ehome/orlando2019/home/

VerifyMe Chief Executive Officer, Patrick White, commented, “We are excited to be part of these all-important industry tradeshows with our partners HP Indigo and S-One LP. It gives us the opportunity to demonstrate our value-added technology to print service providers, potential distributor partners and end customers.”

About VerifyMe, Inc.

VerifyMe, Inc. is a technology solutions company that markets products supported by patents, patent applications and trade secrets which provides identifiers and serialization for authenticating, tracking and tracing functions for labels, packaging and products. The company also markets multi-factor biometric verification solutions to verify people. VerifyMe’s physical technology authenticates packaging, labels and documents with a suite of proprietary security inks and pigments, which work in conjunction with serialization and track-and-trace software. The company’s digital technologies authenticate people by performing strong, multi-factor biometric verification via its patented digital software platforms. To learn more, visit www.verifyme.com

For Licensing or Other Information Contact: Company:

VerifyMe, Inc.

Email: IR@verifyme.com

Website: http://www.verifyme.com

VerifyMe To Present at HP Indigo Singapore Event

VerifyMe Will Demonstrate its New Brand Protection Technologies to VIP Print Service Providers in the Japan, Asia China HP Market Region

Rochester, N.Y., March 18, 2019 – PR Newswire — VerifyMe, Inc. (OTCQB: VRME), a security and authentication technology solutions company, announced today that it will be presenting at HP Indigo’s two-day Brand Protection Solution Event in Singapore on March 21-22. VerifyMe was selected by HP Indigo to make a 45 minute presentation to the attendees of the VIP event.

A video recording of the presentation will be posted here: https://www.verifyme.com/events-presentations.

The focus of the HP event is to highlight security printing solutions on HP Indigo Digital Printing Presses, as brands suffer increasing counterfeit losses. The HP event features a select group of third-party developers who have been working with HP Indigo to produce security options, including traceable inks, unique coding and unique invisible inks.

VerifyMe will be demonstrating its new VeriPAStm solution utilizing their new Smart Phone Reading Device to decrypt invisible serial numbers and QR barcodes produced on HP Indigo pritning presses and authenticated through VerifyMe’s sophisticated cloud based track and trace software. VerifyMe’s “VeriPAS” software gives brand owners the ability to monitor and control the complete life cycle of their products from their headquarters.

The VerifyMe technology presentation will be given to special invities including VIP print service providers and HP Indigo employees. This will be VerifyMe’s first presentation in the HP Indigo Japan, Asia, China market region.

According to a report by “ResearchAndMarkets.com”, counterfeit products represent a $1.2 trillion loss to brand owners, and danger to consumers particularly with counterfeit pharmaceuticals, and the projections are in the next three years that figure will increase by 50% to $1.8 trillion. VerifyMe’s VeriPAS solution addresses this growing global counterfeit and product diversion problem for brand owners.

About VerifyMe, Inc. VerifyMe, Inc., is a technology solutions company that markets products supported by patents, patent applications and trade secrets which provides identifiers and serialization for authenticating, tracking and tracing functions for labels, packaging and products. The company also markets multi-factor biometric verification solutions to verify people. VerifyMe’s physical technology authenticates packaging, labels and documents with a suite of proprietary security inks and pigments, which work in conjunction with serialization and track-and-trace software. The company’s digital technologies authenticate people by performing strong, multi-factor biometric verification via its patented digital software platforms. To learn more, visit: www.verifyme.com

For information regarding VerifyMe’s Brand Protection and Digital Solutions, please visit: https://www.verifyme.com/brand-protection https://www.verifyme.com/digital-solutions

For Licensing or Other Information Contact: Company: VerifyMe, Inc. Email: IR@verifyme.com Website: http://www.verifyme.com

VerifyMe Appoints Eugene Robin of Cove Street Capital to its Board of Directors

Provides Capital Markets Expertise and Guidance

Rochester, N.Y., March 6, 2019 – GlobeNewswire — VerifyMe, Inc. (OTCQB: VRME), a technology solutions company that markets products supported by patents, patent applications and trade secrets which provides identifiers and serialization for authenticating, tracking and tracing functions for labels, packaging and products, announced today the appointment of Eugene Robin to its Board of Directors.

Mr. Robin is a Principal of Cove Street Capital, a registered investment advisor. Cove Street Capital philosophy is value‐based investment strategies that capitalize on inefficiencies in public markets, with classic fundamental research-driven value, concentration on best ideas and a long-term approach.

VerifyMe Chief Executive Officer Patrick White, commented, “We welcome Eugene to our Board and look forward to his advice and guidance in the capital markets. We look forward to improving our capital markets strategy as our business gains traction and we seek to improve long-term shareholder value.”

Eugene Robin, CFA, is a Principal of Cove Street Capital (CSC), a registered investment advisor. Mr. Robin has been employed at CSC since its founding in 2011, becoming a Principal in 2014, and serves as the Senior Analyst on both the Small Cap Value and Micro Cap Value strategies. Prior to Cove Street, Mr. Robin worked as an Associate at a multi-billion-dollar family office with responsibilities for sourcing and vetting private transactions, public investments and conducting financial analysis and planning for several private entities owned by the family. Mr. Robin also has experience working as a software engineer at ViaSat Inc. and holds an MBA in Finance from UCLA Anderson School of Management as well as a bachelor’s degree in Computer Science from UC San Diego.

About VerifyMe, Inc. VerifyMe, Inc., is a technology solutions company that markets products supported by patents, patent applications and trade secrets which provides identifiers and serialization for authenticating, tracking and tracing functions for labels, packaging and products. The company also markets multi-factor biometric verification solutions to verify people. VerifyMe’s physical technology authenticates packaging, labels and documents with a suite of proprietary security inks and pigments, which work in conjunction with serialization and track-and-trace software. The company’s digital technologies authenticate people by performing strong, multi-factor biometric verification via its patented digital software platforms. To learn more, visit www.verifyme.com

For Licensing or Other Information Contact:

Company: VerifyMe, Inc.
Email: IR@verifyme.com

Website: http://www.verifyme.com

VerifyMe, Inc. CEO, Patrick White Provides 2019 Corporate Update

Press Release Source: VerifyMe, Inc. VerifyMe, Inc. CEO, Patrick White Provides 2019 Corporate Update Rochester, N.Y., March xx, 2019 — VerifyMe, Inc. (OTCQB: VRME) is a technology solutions company that markets products supported by patents, patent applications and trade secrets which provides identifiers and serialization for authenticating, tracking and tracing functions for labels, packaging and products, provided a corporate update.

CEO Patrick White: “First of all, 3 board members have resigned from the board. We wanted to thank them for their support and wish them the best in their future endeavors. The board is actively seeking new members with a variety of skills including skills in the brand protection industry. I also wanted to highlight some important 2019 milestones, achievements and objectives which are important to the success of our company and more importantly to keep our shareholders informed as to our progress. It’s important to understand that one year ago we were a “start-up” company that had an important raw technology. 2018 was mainly a year of developing software and hardware to turn our raw technology into a marketable product. Today (2019) I am proud to say VerifyMe now has a cutting edge, disruptive technology product that meets the vital security and product life-cycle tracking needs of brand owners.”

Please note: For security and contractual reasons, we are unable to disclose the names of our clients.

Here are some of our achievements and on-going projects:

  1. HP Indigo informed us they are expanding our RainbowSecure™ invisible codes to their largest series of digital presses. Previously the technology was only made for the Series 6 HP Indigo Presses, HP informed us they will be expanding the use of RainbowSecure™ creating canisters for their largest and fastest line of presses which are the Series 4
  2. HP is installing our VerifyMe RainbowSecure™ invisible technology into all 4 of HP Indigo’s Experience centers, including, Alpharetta, Ga, Singapore, Indonesia, Barcelona, Spain and Tel Aviv, Israel. HP clients and brand owners from all over the world will be able to see our technology on HP Indigo presses and use our authentication devices to demonstrate our technology attributes.
  3. HP has provided significant client leads to VerifyMe in China, Japan, Australia, Africa, Europe –
  4. VerifyMe was approached by one of the world’s largest ecommerce retailers for a demo. The meeting took place in January 2019 at the e-commerce companies’ headquarters. Early stage synergistic cross selling opportunities were discussed along with combining our collective technologies.
  5. VerifyMe has a working relationship with a very large Ink Jet manufacturer to enable high speed Flexo Presses to print variable invisible RainbowSecure™ codes. This opens a whole new market beyond HP digital presses for our RainbowSecure™ technology
  6. VerifyMe is in final testing with one of the world’s largest consumer health products companies. The first test run was completed in late December and is now being reviewed by the brand owner for deployment in the marketplace. Successful test results were communicated to us in February. Brand owner has ordered two additional product tests. Decision to go live is expected in Q2 2019.
  7. VerifyMe has ordered the manufacturing of its new Smart Phone devices which read the invisible RainbowSecure™ codes into the cloud and are recorded in our serialization, track and trace software platform called, “VeriPAS”. These devices are expected to be leased to brand owners and investigators. The first finished units will be received in March. Additional add on orders will follow if demand exists as expected. Leasing is a recurring income business model which will build and enhance our gross margins.
  8. In November 2018 the FDA has officially mandated serialization, track and trace for all Pharmaceutical packaging and labeling. This is a opportunity for VerifyMe’s “VeriPAS” cloud-based track and trace software. We have developed several strategies for this segment with our partners. We will share news on this opportunity as it develops
  9. Our global sales, marketing and support partner, S-One LP has set up multiple presentations with key regional label and packaging suppliers as well as well-known fortune 500 brand owners. We anticipate their efforts will grow throughout 2019
  10. One of the top 10 global consumer product companies began printing RainbowSecure™ product labels in July 2018. This brand owner’s use is expanding as we were recently informed that over 2 million product labels were printed in December 2018 and another 2,5 million product labels in January 2019. In addition, we are establishing a meeting with the consumer product company at their North American headquarters to discuss the new leased Smart Phone devices and expansion of the RainbowSecure™ technology to other products and SKUs.
  11. We recently performed a successful test in the HP Barcelona, Spain Experience Center for a European Label Printer who is has a large consumer product brand owner client who is seeking our complete RainbowSecure™/VeriPAS Serialization, track and trace solution. We expect this to turn into a supplier agreement in Q2.
  12. We are partnering with a security HP Inkjet converter to create a Desktop version of our RainbowSecure™ technology

White continued. 2019 looks to be an exciting year for VerifyMe’s technologies. We are significantly expanding our distribution channels and our sales and marketing outreach is globalizing. It’s also important to note that we are also researching and analyzing some impactful business strategic alternatives which will add to shareholder value. Thank you for your continued support. I look forward to informing you on key events as they transpire.”

Cautionary Note Regarding Forward-looking Statements This release contains forward-looking statements regarding revenue opportunities, the use of our products in additional presses and locations, the results of ongoing tests, and roll-out of our products and authentication devices 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 partners in selling its technologies to businesses, production difficulties, our inability to enter into contracts and deals with future partners, and issues which may affect the reluctance of large companies to change their purchasing of products, acceptance of our technologies, the efficiency of our authenticators in the field and our 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.

About VerifyMe, Inc. VerifyMe, Inc., is a technology solutions company that markets products supported by patents, patent applications and trade secrets which provides identifiers and serialization for authenticating, tracking and tracing functions for labels, packaging and products. The company also markets multi-factor biometric verification solutions to verify people. VerifyMe’s physical technology authenticates packaging, labels and documents with a suite of proprietary security inks and pigments, which work in conjunction with serialization and track-and-trace software. The company’s digital technologies authenticate people by performing strong, multi-factor biometric verification via its patented digital software platforms. To learn more, visit www.verifyme.com

For Licensing or other information contact: Company: VerifyMe, Inc. Email: IR@verifyme.com Website: http://www.verifyme.com

Source: VerifyMe, Inc.

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VerifyMe Reports Third Quarter Financial Results

ROCHESTER, N.Y., Nov. 14, 2018 /PRNewswire/ -- VerifyMe, Inc. (OTCQB: VRME), a technology solutions company that markets a portfolio of proprietary products in the field of counterfeiting prevention, authentication, track and trace, serialization and multi-factor biometric verification solutions today announced their financial results for the period ended September 30, 2018.

Highlights

Revenue Grew 7,113% Over the Prior Year's Quarter and 315% Over the Second Quarter 2018; Cash & Cash Equivalents of $2.1 Million with No Debt; The Company announced an initial order for product labels annually from a well-known international brand owner; production has begun and is expected to be on-going; Hired Former De La Rue Executive, Keith Cutri as VP- Global Business Development; Contractual partnerships with HP Indigo, Micro Focus and S-One LP are progressing and expanding with some key growth oriented initiatives taking place; Roll-Out of Smartphone Enabled New Cloud Connected Authentication Devices Financial

Revenue for the three-month period ended September 30, 2018 was $28,273, an increase of 7,113% over the third quarter 2018, and 315% over the second quarter of 2018. Revenue year to date was $35,072, an increase of 8,847% over the revenue for the same period in 2017. Operating Loss was $567,227 for the quarter ended September 30, 2018, compared to an Operating Loss of $382,766 for the third quarter of 2017. Cumulative year to date Operating Loss was $2,109,586 through the third quarter of 2018, compared to Operating Loss of $1,163,710 for the comparable period of 2017, which was principally due to an increase in non-cash charges related to restricted stock awards and stock options as well as increases in some non-recurring product development expenses related to activities that will expand our operations. Net Cash Used in Operations for the quarter amounted to $479,476, compared to $345,294 for the third quarter of 2017. Net Cash Used in Operations year to date was $1,987,465 as compared to $626,743 in the same period in 2017. The increase primarily related to a one-time settlement payment of $500,000 to certain shareholders of the Company as well as increases in expenses related to activities that will expand our operations. Net loss increased to $479,476 in the third quarter 2018 from a net loss of $384,983 in the third quarter of 2017. Our year to date Net Loss of $2,398,304 compared to a $1,198,079 Net Loss in the comparable period ended September 30, 2017.
Adjusted EBITDA (in the attached table), which we believe is a meaningful supplemental disclosure that may be indicative of how management and our Board of Directors evaluates Company performance, adjusts Income or Loss for non-cash charges such as depreciation & amortization, stock based compensation, transactions outside the normal course of business for the three-month periods ended September 30, 2018 and 2017 was $(271,297) and $(258,520). Year to date Adjusted EBITDA was $(894,803) as compared to $(698,163) for the comparable period of 2017. Cash balance as of September 30, 2018 was $2,124,272 compared to $693,001 as of December 31, 2017, and $759,698 as of September 30, 2017. The Company has no Long-Term Debt as of September 30, 2018. Important Milestones to Watch For:

New RainbowSecure™ Identifier Authentication Technology Revenue Generating Projects Revenue from VerifyMe's VeriPAS™ Serialization, Track and Trace Cloud Solutions Additional Licensing Contracts with Label and Packaging Print Providers; Expansion of VerifyMe Technology to Additional Larger Format HP Indigo Digital Presses Expansion of VerifyMe Technology to Inkjet and Flexographic Printing Presses Expansion of VerifyMe Technology to Thermal Transfer Printers Management Discussion

Patrick White, President and Chief Executive Officer of VerifyMe, stated, "It took a lot of effort but we are now positioned for revenue growth as well as fulfilling "meeting requests" we have received from over 50 prospects which includes some of the largest names in the Fortune 500 from all parts of the globe that have inquired about our products and technology." White continued, "Watch for new announcements concerning new revenue wins, market penetration and key technology expansion offerings in the coming months."

Non-GAAP Financial Measures:

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. The 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 which is a non-GAAP financial measure. We believe that both management and shareholders benefit from referring to the following non-GAAP financial measures in planning, forecasting and analyzing future periods. Our management uses this non-GAAP financial measures 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 have inherent limitations because of the excluded items described in the table below.

VerifyMe defines EBITDA and Adjusted EBITDA as earnings (or loss) from continuing operations before the items in the table above. VerifyMe excludes these expenses from Adjusted EBITDA because they are non-cash or non-recurring in nature.

We have included in the table attached 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 measures, 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 products supported by patents, patent applications and trade secrets which provides identifiers and serialization for authenticating, tracking and tracing functions for labels, packaging, products. The company also markets multi-factor biometric verification solutions to verify people. VerifyMe's physical technology authenticates packaging, labels & documents with a suite of proprietary security inks and pigments which work in conjunction with serialization, track and trace software. The company's digital technologies authenticate people by performing strong, multi-factor biometric 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 revenue opportunities, additional licensing contracts, business projects and acquisition of additional printers 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, production difficulties, research and development issues, inability to purchase additional equipment or supplies, and issues which may affect the reluctance of large companies to change their purchasing of our products and their acceptance of our technologies. 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.

Interested brand owners, label and packaging printers should contact VerifyMe at:

Email: Sales@verifyme.com Phone: 585-736-9400 For Investor information contact: Company: VerifyMe, Inc. Email: IR@verifyme.com Website: http://www.verifyme.com

View full press release online: https://www.prnewswire.com/news-releases/verifyme-reports-third-quarter-financial-results-300749808.html

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VerifyMe, Inc. Names Former De La Rue Sales Executive, Keith Cutri Vice President Global Business Development

Rochester, N.Y., October 30, 2018 — VerifyMe, Inc. (OTCQB:VRME) today announced that Keith Cutri has been appointed Vice President of Global Business Development.

As VerifyMe’s Vice President of Global Business Development, Mr. Cutri will be responsible for developing the company’s go-to-market strategy, closely support our global sales and marketing partner S-One LP to advance our technology with print service providers and promote our solutions directly to global brand owners. Mr. Cutri will report directly to Chief Operating Officer Keith Goldstein.

Prior to joining VerifyMe, Inc., Keith Cutri was the U.S. Business Development Manager for De La Rue. Previously to De La Rue, Mr. Cutri was an FBI Special Agent and held brand protection investigative technology sales positions with Eastman Kodak and Xerox.

VerifyMe, Inc. is a technology solutions company that markets products supported by patents, patent applications and trade secrets, which provide identifiers and serialization for authenticating, tracking and tracing functions for labels, packaging and products,

“The hiring of Keith Cutri is a huge win for VerifyMe and its shareholders,” stated Patrick White, President and Chief Executive Officer of VerifyMe. “With the unveiling of our new smart phone serialization track-and-trace software we have experienced multiple leads from major global brand owners. Mr. Cutri will enable and expand our ability to address these leads as well as develop new opportunities with large, well-known global brand owners that he has collaborated with during his successful career in brand protection sales.”

Cutri said, “VerifyMe, Inc. is an impressive and fast-moving brand protection company which has strategically built a highly effective portfolio of their “VeriPAS™” smartphone-enabled cloud-based authentication, serialization, and biometric verification solutions, while aligning the company with critical channel partners to deliver them to the marketplace. These solutions are extremely cost-effective and easy to deploy for brand owners, while implementing a layered approach to their brand protection strategies. I look forward to helping grow VerifyMe and assisting brand owners mitigate the risks of counterfeiting and product diversion around the world.”

About VerifyMe, Inc. VerifyMe, Inc., is a technology solutions company that markets products supported by patents, patent applications and trade secrets which provides identifiers and serialization for authenticating, tracking and tracing functions for labels, packaging and products. The company also markets multi-factor biometric verification solutions to verify people. VerifyMe’s physical technology authenticates packaging, labels and documents with a suite of proprietary security inks and pigments, which work in conjunction with serialization and track-and-trace software. The company’s digital technologies authenticate people by performing strong, multi-factor biometric verification via its patented digital software platforms. To learn more, visit www.verifyme.com

For Licensing or other information contact: Company: VerifyMe, Inc. Email: IR@verifyme.com Website: http://www.verifyme.com

Source: VerifyMe, Inc.

VerifyMe to Launch New Smart Phone/App at Labelexpo Americas 2018

VerifyMe’s Game Changing Solutions for Product Authenticity, Serialization, Track and Trace to be Showcased at the World’s Largest Label Trade Show – September 25th thru September 27th to be held at the Donald Stephens Convention Center in Rosemont, Ill.

PRESS RELEASE PR Newswire

Rochester, NY: VerifyMe, Inc. (OTCQB:VRME), is a technology solutions company that markets products supported by patents, patent applications and trade secrets which provides identifiers and serialization for authenticating, tracking and tracing functions for labels, packaging and products. VerifyMe will be showcasing its new Label and Package security printing solutions including their new VeriPAS Mobile Phone Authenticator device, along with “VeriPAS’ Global Product Track and Trace software at Labelexpo Americas in Chicago (Booth #1414) which runs from September 25th through September 27th, 2018. VerifyMe will be sharing a booth with their global partner, S-One, Inc. VerifyMe products are supported by HP Indigo, S-One Inc. and Micro Focus.

Who:

CEO, Patrick White: “We are really excited to showcase our new Mobile Phone Authenticator device. This is disruptive technology as it ties our RainbowSecure™ invisible security printing technology to our new extreme cloud based Global Product Authentication, Track and Trace Software, called “VeriPAS. Brand Owners will be able to track a products complete life cycle over the internet as well as track product diversion and counterfeiting hot spots with global maps and tracking systems we have incorporated into the product. In addition, we will demonstrate our new VeriPAS Quick Check which instantly verifies authenticity of a physical product made of metal, plastic, ceramic or even fabrics. These are all powerful solutions for both consumers and brand owners.”

What:
VerifyMe will demonstrate the following technologies at the Chicago Labelexpo Show:

• RainbowSecure™ Print Technology – Invisible ink technology that only our special VeriPAS Mobile phone Authenticator device can see and read variable codes into the cloud. This technology is made and supported by HP Indigo for use by brand owners and printers with 6000 series HP Indigo digital printing presses. It is ideal for producing labels and packaging requiring counterfeit prevention, authentication, serialization and traceability. RainbowSecure works with our new Smart Phone reading device as well as the “VeriPAS” global product authentication software

• VeriPAS Mobile Phone Authenticator – VerifyMe will be demonstrating for the first time, its new Smart Phone Authenticator Device designed to read RainbowSecure invisible codes into a powerful cloud based Global Product authentication, track and trace system called, “VeriPAS”. Investigators will be able to use their personal smart phones with this device to authenticate and track products.

• VeriPAS Track and Trace Software - VerifyMe's “VeriPAS is a serialization, track and trace system for both consumers and brand owners to verify a products authenticity. In addition, brand owners can access powerful data intelligence, GPS hot spots of counterfeited product awareness, and track a product’s complete “life cycle”.

• VeriPAS Quick-Check – This product is a hand-held device which instantly verifies the actual products authenticity. This technology can verify the authenticity of products made of metal, plastic, ceramic or even fabric. This is a quick press of a button notification for product investigators to validate the actual products authenticity rather than just a products packaging and or labels.

When: The conference runs from Tuesday, Sept. 25 through Thursday, Sept. 27, 2018.

Where: Donald E. Stephens Convention Center; Rosemont, Ill.; S-One/VerifyMe Booth #1414.

About VerifyMe, Inc.

VerifyMe, Inc., is a technology solutions company that markets products supported by patents, patent applications and trade secrets which provides identifiers and serialization for authenticating, tracking and tracing functions for labels, packaging and products. The company also markets multi-factor biometric verification solutions to verify people. VerifyMe’s physical technology authenticates packaging, labels & documents with a suite of proprietary security inks and pigments which work in conjunction with serialization, track and trace software. The company’s digital technologies authenticate people by performing strong, multi-factor biometric verification via its patented digital software platforms. To learn more, visit www.verifyme.com

For licensing or other information contact:

Company: VerifyMe, Inc.
Email: IR@verifyme.com
Website: https://www.verifyme.com

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VerifyMe Signs Marketing and Licensing Agreement with Nosco, Inc.

Innovative U.S.-Based Packaging Provider Licenses VerifyMe RainbowSecure™ Ink Technology to Authenticate Products and Prevent Product Diversion**

ROCHESTER, NY – August 28, 2018 – VerifyMe, Inc. (OTCQB: VRME), a technology solutions company that markets a portfolio of proprietary products in the field of counterfeiting prevention, authentication, track and trace, serialization and multi-factor biometric verification solutions today announced a co-marketing and licensing agreement with Nosco, Inc., a subsidiary of Holden Industries, Inc. Under the terms of the agreement, Nosco, Inc. will be able to offer its major packaging clients VerifyMe RainbowSecure™ security ink, which has been certified for use by HP Indigo on its 6000 series of HP Indigo digital printing presses. HP Indigo markets VerifyMe RainbowSecure™ as “HP Indigo Security ElectroInk.”

Patrick White, president and chief executive officer of VerifyMe, commented, “This licensing agreement with an innovative packaging solutions company such as Nosco is another win for brand owners and our shareholders. This makes three licensing contracts with significant HP Indigo 6000 series printers in the last several months for our RainbowSecure™ ink, which authenticates products and adds a layer of covert serialization for cloud-based track and trace functions.” White continued, “Secure printing project inquires have been increasing recently, as our solution has begun to be marketed by our global marketing partners (HP Indigo and S-One Holdings).” “We are excited to partner with VerifyMe to bring this breakthrough technology to market,” said Nosco’s Senior VP of Sales and Marketing Craig Curran. “Through its use, we will be able to help our customers achieve brand and diversion protection across all markets.” Nosco is a large Chicago-based printer with six sites across the United States. The company specializes in printed packaging for the natural health, personal care and pharmaceutical industries.

About VerifyMe, Inc.

VerifyMe, Inc., is a technology solutions company that markets products supported by patents, patent applications and trade secrets which provides identifiers and serialization for authenticating, tracking and tracing functions for labels, packaging, products. The company also markets multi-factor biometric verification solutions to verify people. VerifyMe’s physical technology authenticates packaging, labels & documents with a suite of proprietary security inks and pigments which work in conjunction with serialization, track and trace software. The company’s digital technologies authenticate people by performing strong, multi-factor biometric verification via its patented digital software platforms. To learn more, visit www.verifyme.com

About Nosco (www.nosco.com)

Nosco is a full-service packaging solutions provider with a vested interest in the long-term success of its 400+ customers. With more than 110 years of experience, Nosco brings together business resources and technical expertise to help make its customers’ packaging successful, every day. The company focuses on service to help continuously improve efficiencies related to supply chain, cycle times, lean initiatives and product launches. Nosco is a subsidiary of Holden Industries, Inc. and is 100% employee owned.

For licensing or other information contact:

Company: VerifyMe, Inc.

Email: IR@verifyme.com

Website: http://www.verifyme.com

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International Brand Owner Selects VerifyMe Technology to Secure 10 Million Product Labels

VerifyMe Licensed Printer Secures labels for Well-Known Brand Owner Incorporating VerifyMe Label and Packaging Technology Which Serializes, Authenticates and Prevents Counterfeiting

ROCHESTER, N.Y., July 17, 2018 /PRNewswire/ -- VerifyMe, Inc. (OTCQB: VRME), a technology solutions company that markets a portfolio of patented products in the field of counterfeiting prevention, authentication, track and trace, serialization and multi-factor biometric verification solutions today announced the receipt of an initial order. This order is for the printing of 10 million labels with VerifyMe's authentication serialization technology for a large global brand owner.

Patrick White, president and chief executive officer of VerifyMe, commented, "This is a major milestone for VerifyMe and its shareholders. We have now entered the revenue generation stage of VerifyMe's evolution." White continued, "This particular project is for a well-known brand owner who is applying our technology on 10 million labels for one product which will be sold and tracked in the consumer marketplace. Going forward, we expect this project to act as a catalyst for our licensed label and packaging printers to apply our technology to a multitude of products/SKUs for this particular global brand owner as well as a variety of other well-known global consumer product companies who need our serialization and authentication security for their clients global packaging and label needs."

VerifyMe has an ink technology supplier contract with HP indigo. VerifyMe's ink technology is certified for use by HP Indigo owners on their 6000 series HP Indigo digital printing presses. HP Indigo markets VerifyMe RainbowSecure™ Technology as "HP Indigo Security ElectroInks."

Security and contractual obligations prevent the company from disclosing the name of the brand owner.

About VerifyMe, Inc.

VerifyMe, Inc., is a technology solutions company that markets a portfolio of patented products in the field of counterfeiting prevention, authentication, track and trace, serialization and multi-factor verification biometric solutions. VerifyMe's physical technology authenticates packaging, labels, products & documents with a suite of proprietary security inks and pigments. The company's digital technologies authenticate people and financial transactions by performing strong, multi-factor biometric verification via its digital software platforms. To learn more, visit www.verifyme.com.

Safe Harbor Statement

This release contains forward-looking statements regarding future use of our technologies and revenue opportunities, 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 reluctance of major brand owners to use new products, delays by the manufacturer in delivering prototypes for VerifyMe's authenticators and the performance of the authenticators in the field. 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

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VerifyMe Reports First Quarter Fiscal 2018 Financial Results

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.

Quarterly Highlights

  • 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.

Financial Highlights

  • 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.

Management Discussion

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.

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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 vrme@lythampartners.com

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

Comment

Comment

Harvey Eisen, Chairman and CEO of Wright Investors' Service Holdings, Inc. Named to VerifyMe's Board of Directors

ROCHESTER, N.Y., April 20, 2018 -- 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 changes to the makeup of its board of directors. The company has appointed Mr. Harvey P. Eisen to its board of directors. Mr. Eisen is currently the Chairman, CEO and Director of Wright Investors' Service Holdings, Inc. (WISH). Mr. Eisen also served as Chairman of Bedford Oak Advisors, LLC, an investment partnership since 1998 and Chairman and Director of GP Strategies since 2004. Mr. Eisen was previously Senior Vice President of Travelers, Inc. and held various executive positions with Primerica, SunAmerica Corp., and Integrated Resources Asset Management. Mr. Eisen was President and Portfolio Manager of Eisen Capital Management for 10 years and he began his career as an analyst with Stifel, Nicolaus & Co. and Wertheim. Mr. Eisen is widely recognized as one of the country's leading portfolio managers and is often consulted by the national media for his expertise of the investment marketplace. Mr. Eisen is frequently quoted in The Wall Street Journal, The New York Times, Pension World, U.S. News & World Report and Bloomberg Businessweek and appears regularly on various television programs like CNN, CNBC, Bloomberg TV and Fox News.

Mr. Patrick White, President and Chief Executive Officer of VerifyMe, stated, "It is my pleasure to welcome Harvey as a new director of VerifyMe. Harvey is well known in the investment community as one of the leading portfolio managers in the U.S. He has in excess of 30 years' experience and is often a guest and recognized in the national media (CNBC, Bloomberg) for his business acumen and knowledge of the financial markets. On behalf of the board of directors, we look forward to working closely with Harvey and the contributions he'll provide to our company."

The company also regrets to announce the untimely passing of Mr. Claudio R. Ballard, a member of the board of directors since March 30, 2013. This sudden, unexpected event was unrelated to the election of Harvey Eisen.

Mr. White added, "We are saddened by the untimely loss of our fellow board member Claudio Ballard. Claudio was instrumental in helping the company over the past few years. He will be sorely missed, and we have our deepest sympathies for his family and friends."

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

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 vrme@lythampartners.com

Comment

Comment

VerifyMe Reports 2017 Financial Results and Provides Corporate Overview and Business Outlook

Company turnaround well underway with several key agreements signed with major corporations, creating pathway for revenue growth during FY18

Announces Removal of Auditor's "Going Concern" Opinion from Its 2017 Form 10-K

Non-GAAP Adjusted EBITDA Improves 38%

ROCHESTER, N.Y., April 17, 2018 -- VerifyMe, Inc. (OTCQB: VRME), a technology solutions company that markets proprietary products that provide identifiers and serialization for authenticating, tracking and tracing functions for labels, packaging, products, people and financial transactions, announced Fiscal Year 2017 results and that the going concern paragraph has been removed from its audit opinion contained in its filing of Form 10-K for the year ended December 31, 2017.

"Having the going concern issue removed from our audit opinion for the first time in the company's history is a significant accomplishment further affirming VerifyMe's successful transformation to a well-funded technology service provider," noted Patrick White, Chief Executive Officer. "Having the stigma of the going concern opinion removed restores confidence, not only in our stockholders, but also in the capital markets, customers and investing public in general. The Board is committed to maintain a solid financial foundation. We remain absolutely focused in executing our long-term strategy to grow the Company," further remarked Mr. White.

Recent Highlights (subsequent to the end of Fiscal Year 2017)

  • Signed technology licensing agreement with a NASDAQ listed leading global label solution provider;
  • Appointed Mr. Carl E. Berg, a renowned investor and businessman to the board of directors;
  • Appointed Mr. Jay Cardwell as the Company's Chief Financial Officer;
  • Announced reseller agreement with NYSE listed Micro Focus for global product authentication software cloud services;
  • Entered into a global strategic sales, marketing and support partnership with S-One Labels & Packaging, a division of S-One Holdings Corporation;
  • Signed Technology Licensing Agreement with Intelligent RFID Packaging Solutions Provider eAgile

Fiscal Year 2017 Highlights

  • Entered into a major, global 5-year contract with HP Indigo in September 2017, which enables HP Indigo to enable its worldwide 6000 model machines to print with VerifyMe's RainbowSecure™ inks
  • Restructuring and recapitalization plan implemented with substantial cash invested by newly appointed members of the Company's board of directors
  • Appointment of Patrick White as President and Chief Executive Officer, former American Bank Note executive officer, Keith Goldstein as Chief Operating Officer and Sandy Fliderman as Chief Technology Officer.
  • Our financial statements are no longer subject to a 'Going Concern' opinion for the first time in seven years; due to a strengthening of the Company's current balance sheet.

Financial Highlights

  • Operating expenses lower by 24.3% compared to Fiscal Year 2016;
  • Operating losses for Fiscal Year 2017 was $2.8 million compared to $3.7 million for Fiscal Year 2016;
  • Cash balance at the end of December 2017 was $693,001 compared to $22,644 at the end of Fiscal Year 2016; (April 16th, 2018 cash position = $2.3 million)
  • Year over year Non-GAAP Adjusted EBITDA improves 38%

Management Discussion

Patrick White, President and Chief Executive Officer of VerifyMe, stated, "Fiscal 2017 was a pivotal year for the company, as we expanded our board by adding highly successful, experienced and seasoned businessmen and added new executives, including myself which improved the financial and operational structures of our organization. I am pleased to report that during Fiscal Year 2017 we were able to make significant improvements to the company's financials as we reduced our liabilities and increased our cash position. These activities coupled with the multi-billion-dollar authentication industry opportunity has created the foundation to put the company on a growth track for years to come. The most significant accomplishment of the year was that we were able to secure a 5-year contract with HP Indigo to include our RainbowSecure ink technologies in HP Indigo's digital printing machines. This will allow HP Indigo's 6000 model owners to seamlessly incorporate authentication measures on printed labels and packaging for brand owners. One of our biggest challenges was that HP is a global company and VerifyMe therefore needs to sell, service and support a global clientele. This was achieved with our recently announced marketing, sales and support contract with S-One corporation. They will market and handle all of the necessary needs of our global new client base on our behalf."

Mr. White concluded, "While we still have lots more to do, I am pleased with the accomplishments we secured in a short amount of time since I joined last summer. The HP Indigo contract has literally opened the door for VerifyMe in several instances and the proof is seen in the several key relationships we recently announced. I am also pleased with the progress in our digital biometric development and believe the Company has a viable future ahead in the biometric "people verification" segment. Various opportunities have presented themselves and 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. Given the deal flow we've recently achieved, we expect revenue to commence ramping up during the second half of fiscal 2018. We expect HP to begin the global product rollout later this year as well as the S-One global marketing process. Both initiatives should enhance our product reach 10-fold. Our business sales cycle is long, but it will be expedited with the help and support of HP and S-One. In the coming months, investors should expect to see VerifyMe achieve a number of value-driving milestones and I look forward to sharing these developments with our shareholders as they transpire."

Printing Technology Milestones:

  • HP/S-One Global Sales and Marketing Rollout of our RainbowSecure™ Technology
  • New Licensee Announcements with Major Brand Owners and Integrators
  • First Revenue Generation

Digital Technology Milestones:

  • New Installations of VerifyMe Multi-Factor Authentication Systems
  • New Licensee Announcements with Secure Data/Financial Transaction Systems
  • First Revenue Generation

The following table presents a reconciliation of Net Loss to Adjusted EBITDA, a Non-GAAP financial measure:

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This press release includes both financial measures in accordance with Generally Accepted Accounting Principles, or GAAP, as well as a non-GAAP financial measure. 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. The non-GAAP financial measure 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 the non-GAAP financial measure in isolation or as substitutes for performance measures calculated in accordance with GAAP.

Our management uses and relies on Adjusted EBITDA which is 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 in the table above.

VerifyMe defines Adjusted EBITDA as earnings (or loss) from continuing operations before the items in the table above. VerifyMe excludes these expenses because they are non-cash or non-recurring in nature.

We have included 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 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

Forward Looking Statements

Certain statements in this press release include forward-looking statements including statements regarding our growth track, our expected revenues, milestones, the HP Indigo global product rollout, beginning the S-One global marketing and our position in the biometric identification market. 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 risk factors contained in our Form 10-K which we filed on April 16, 2018. 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 vrme@lythampartners.com

For the complete press release including financial tables please view the original press release at https://www.prnewswire.com/news-releases/verifyme-reports-2017-financial-results-and-provides-corporate-overview-and-business-outlook-300631347.html

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