VerifyMe Reports Fourth Quarter 2024 Financial Results and Improved Liquidity in the First Quarter of 2025

Core Insights - VerifyMe, Inc. reported a decrease in revenue for Q4 2024, totaling $7.7 million, down from$8.7 million in Q4 2023, primarily due to a discontinued contract in its Precision Logistics segment [4][8][9] - The company achieved an 8% year-over-year increase in gross profit and more than doubled its annual adjusted EBITDA compared to 2023 [2] - The decision to divest an unprofitable operation is expected to enhance cash flow from operations in 2025, with the company having retired most of its debt [2][12] Financial Performance - Q4 2024 revenue was $7.7 million, a decrease of$1.0 million from Q4 2023 [4][8] - Gross profit for Q4 2024 was $2.4 million, resulting in a gross margin of 32$2.9 million and 33% in Q4 2023 [5][9] - The operating loss for Q4 2024 was ($0.3) million, compared to an operating income of$0.1 million in Q4 2023 [6] - The net loss for Q4 2024 was ($0.5) million, or ($0.05) per diluted share, compared to net income of less than $0.1 million in Q4 2023 [7][9] - Annual revenue for 2024 was$24.2 million, down from $25.3 million in 2023, while annual gross profit increased to$8.7 million, or 36%, compared to $8.0 million, or 32$0.6 million, down from $0.9 million for the year ended December 31, 2024 [8][9] - As of February 28, 2025, the company had$5.7 million in cash and access to additional low-cost capital [2][12] - The company has retired all debt except for $0.8 million of convertible notes held by affiliates and Board members [2] Strategic Decisions - The divestiture of the Trust Codes Global business on December 8, 2024, was part of the company's strategy to focus on more profitable areas [4] - The company is finalizing its strategy to maximize shareholder returns and is optimistic about future opportunities [2][12]