Slide 1: Fourth Quarter 2022 Investor Conference Call
www.VerifyMe.com Confidential Property of VerifyMe Protect your brand. Grow your business. Fourth Quarter 2022 Investor Conference Call March 28, 2023 NASDAQ:VRME NASDAQ:VRME
Slide 2: Agenda
www.VerifyMe.com Agenda Welcome & Introductions Confidential Property of VerifyMe Operations Update Financial Review Q&A Closing Remarks NASDAQ:VRME 2
Slide 3: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS www.VerifyMe.com In addition to historical information, this presentation contains statements relating to the acquisitions of PeriShip, LLC and Trust Codes Limited, by VerifyMe, Inc. and integration of the companies, anticipated synergies of the acquisitions, revenue oppor
Slide 4: Welcome Remarks
www.VerifyMe.com Welcome Remarks Scott Greenberg Interim Chief Executive Officer and Executive Chairman Confidential Property of VerifyMe Remarks Future Outlook NASDAQ:VRME 4
Slide 5: Financial and Equity Snapshot
www.VerifyMe.com Financial and Equity Snapshot Exchange/Ticker: NASDAQ: VRME Confidential Property of VerifyMe Stock Price (3/23/23): $1.50 Shares Outstanding (3/23/23) 9.4 million Market Cap: $14.1 million Cash Balance: $3.4 million as of December 31, 2022 Debt: $1.9 million as of December 31, 2022
Slide 6: Business Update
Business Update www.VerifyMe.com Record Revenue Quarter Purchased assets of Trust Codes Global making us an end-to-end software Confidential Property of VerifyMe driven company ensuring a secure supply chain Entered into a five-year extension and expansion of our agreement with ink taggant par
Slide 7: Expected Benefits from Trust Codes Acquisition
Expected Benefits from Trust Codes Acquisition www.VerifyMe.com Enhances our capabilities and reduces product costs A highly scalable traceability platform to secure supply chains and allow brands to connect with consumers Confidential Property of VerifyMe Proprietary software that is written
Slide 8: Sales and Marketing Initiatives
Sales and Marketing Initiatives www.VerifyMe.com Rebranding with new logo, website, unified messaging to encompass blended service offerings Refocus strategic selling proposition to include all aspects of the Confidential Property of VerifyMe enterprise Digital marketing campaign to include so
Slide 9: Revenue by Market Sector for the Quarter
Revenue by Market Sector for the Quarter www.VerifyMe.com 6% 1% 10% Confidential Property of VerifyMe 6% 2% 75% Healthcare Agriculture Apparel Food & Beverage Health & Beauty Other NASDAQ:VRME 9
Slide 10: 2023 Outlook
www.VerifyMe.com 2023 Outlook Consolidated Revenue projected to be in excess of $28M Confidential Property of VerifyMe Gross Margin % to be consistent or better than 2022 Positive Adjusted EBITDA(1) NASDAQ:VRME (1)Adjusted EBITDA is a non-GAAP measure. The Company defines EBITDA as net income
Slide 11: Financials
www.VerifyMe.com Confidential Property of VerifyMe NASDAQ:VRME 11 Financials
Slide 12: Q4 Highlights
Q4 Highlights www.VerifyMe.com Record Revenue of $9.7 million for the quarter Confidential Property of VerifyMe Gross Profit of $2.8 million or 29% for the quarter Net Income of $0.1 million in Q4 2022, compared to Net Loss of $1.0 million in Q4 2021 Adjusted EBITDA improvement each quarter
Slide 13: 2022 Selected Financial Highlights
2022 Selected Financial Highlights www.VerifyMe.com Q1 2022 Q2 2022 Q3 2022 Q4 2022 YTD 2022 Revenue 161 4,497 5,215 9,703 19,576 Gross profit 123 1,685 1,855 2,825 6,488 Confidential Property of VerifyMe Gross margin 76% 37% 36% 29% 33% General and administrative expenses 1,465 2,535 2,213 2,215 8,
Slide 14: Revenue and Gross Profit
Revenue and Gross Profit www.VerifyMe.com $25,000 $20,000 $19,576 Confidential Property of VerifyMe $ in Thousands $15,000 $10,000 33% $6,488 $5,000 NASDAQ:VRME 82% 82% $867 $599 $245 $200 $343 $281 $0 FY 2019 FY 2020 FY 2021 FY 2022 Revenue Gross Profit 2022 Revenue and Gross Profit includes PeriSh
Slide 15: Balance Sheet December 31, 2022
Balance Sheet December 31, 2022 December 31, 2021 www.VerifyMe.com ($ in thousands) Assets Cash and cash equivalents $3,411 $9,422 Key Highlights Accounts receivable and unbilled revenue 5,633 297 • Cash of $3.4 M as of Equity Investment Confidential Property of VerifyMe - 10,964 December 31, 2022 I
Slide 16: Q&A
www.VerifyMe.com Confidential Property of VerifyMe NASDAQ:VRME 16 Q&A
Slide 17: Appendices
www.VerifyMe.com Confidential Property of VerifyMe NASDAQ:VRME 17 Appendices
Slide 18: Non-GAAP Reconciliation – Adjusted EBITDA
Non-GAAP Reconciliation – Adjusted EBITDA(1) www.VerifyMe.com Three Months Ended Years Ended December 31, December 31, ADJUSTED EBITDA (Non-GAAP) 2022 2021 2022 2021 Net income (loss) $ 108 $ (1,004) $ (14,398) $ 3,612 Confidential Property of VerifyMe Interest expense (income), net 34 (1) 88 (2) Ga
Slide 19: Protect your brand. Grow your business.
Protect your brand. Grow your business. US Headquarters 801 International Parkway Fifth Floor Lake Mary, FL 32746 +1 585 736 9400 info@verifyme.com 19