VerifyMe(VRME) - 2024 Q3 - Quarterly Results

Revenue and Profit - Q3 2024 revenue was $5.4 million, a decrease of$0.2 million compared to Q3 2023[2][4][5] - Gross profit in Q3 2024 was $1.9 million, with a gross margin of 35$16.5 million, compared to $16.6 million for the same period in 2023[24] - Gross profit for the nine months ended September 30, 2024, increased to$6.2 million from $5.2 million in the same period in 2023[24] Net Loss and Operating Loss - Net loss in Q3 2024 was ($2.4) million, including $1.8 million in one-time adjustments, compared to a net loss of ($0.9) million in Q3 2023[2][4][8] - Operating loss in Q3 2024 was ($2.9) million, primarily due to$2.3 million in goodwill and intangible asset impairments in the Authentication segment[7] - Net loss for the nine months ended September 30, 2024, was $3.3 million, compared to$3.4 million for the same period in 2023[24] - Goodwill and intangible asset impairment for the nine months ended September 30, 2024, was $2.3 million, compared to$34 thousand in the same period in 2023[24] Adjusted EBITDA - Adjusted EBITDA in Q3 2024 was $0.2 million, consistent with Q3 2023[2][4][9] - The company projects positive Adjusted EBITDA for the full year 2024 and expects Adjusted EBITDA growth in 2025 compared to 2024[3][10] - Total adjusted EBITDA (Non-GAAP) for the nine months ended September 30, 2024, was$441 thousand, compared to a loss of $695 thousand in the same period in 2023[27] Segment Performance - Precision Logistics segment accounted for 98$2.6 million, with $2.1 million in working capital[11] - Cash and cash equivalents including restricted cash decreased from$3.1 million as of December 31, 2023, to $2.6 million as of September 30, 2024[21] - Accounts receivable decreased from$3.0 million as of December 31, 2023, to $1.2 million as of September 30, 2024[21] - Total liabilities decreased from$8.2 million as of December 31, 2023, to $4.5 million as of September 30, 2024[21] - Total assets decreased from$20.7 million as of December 31, 2023, to $14.8 million as of September 30, 2024[21] Operating Expenses - Total operating expenses for the nine months ended September 30, 2024, were$10.3 million, up from $8.6 million in the same period in 2023[24] Strategic Initiatives - The company has engaged with bankers and advisors regarding strategic growth opportunities[10]