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.
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
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