Slide 1: Protect your brand. Grow your business.
NASDAQ:VRME Protect your brand. Grow your business. Second Quarter 2023 Investor Conference Call August 10, 2023 www.VerifyMe.com 1
Slide 2: Agenda
Agenda NASDAQ:VRME 01 Welcome & Introductions 02 Operations and Strategic Update 03 Financial Review 04 Q&A 05 Closing Remarks www.VerifyMe.com 2
Slide 3: Forward Looking Statements
Forward Looking Statements NASDAQ:VRME 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 opportunit
Slide 4: Welcome
NASDAQ:VRME Welcome Adam Stedham Chief Executive Officer and President – Remarks – Future Outlook www.VerifyMe.com 4
Slide 5: Strategic Snapshot
Strategic Snapshot NASDAQ:VRME Define Strategy 1 Refined operating strategy for market segmentation, improved growth and reduced costs A Clear Business Unit Restructure Blueprint 2 Aligned business units into two core segments and integrated Trust Codes: Authentication for VRME and Precision Logisti
Slide 6: Market Segmentation
Market Segmentation NASDAQ:VRME 1% 1% 16% A Clear Blueprint 1% for VRME 81% Healthcare Apparel Agriculture, Food & Beverage Health & Beauty Other www.VerifyMe.com 6
Slide 7: Financials
NASDAQ:VRME Financials – Q2 2023 Financial Highlights – SG&A Expenses – Balance Sheet www.VerifyMe.com 7
Slide 8: Q2 2023 Financial Highlights
Q2 2023 Financial Highlights NASDAQ:VRME Revenue $5.3M Up 19% YoY 2023 included full quarter for Precision Logistics segment Gross Profit GP up $0.1M $1.8M 34% Net Loss Adjusted EBITDA Loss $0.5M improvement ($0.9M) ($0.4M) Increased integration and operating ($0.4M) Down 33% YoY after special items
Slide 9: SG&A Expenses
SG&A Expenses NASDAQ:VRME General and Administrative • Reduced employee cost in the Authentication segment • PeriShip acquisition costs in 2022 $2.3M Down 7.6% YoY • Partially offset by full quarter of Precision Logistics and Integration costs related to Trust Codes Sales and Marketing • Full quarte
Slide 10: Balance Sheet
Balance Sheet June 30, 2023 December 31, 2022 ($ in thousands) (Unaudited) Assets Cash and cash equivalents $2,697 $3,411 Accounts receivable and unbilled revenue 2,020 5,633 Intangible assets & Goodwill 12,328 10,400 Other assets 1,379 1,308 Total Assets $18,424 $20,752 Current Liabilities $2,419 $
Slide 11: Q&A
NASDAQ:VRME Q&A www.VerifyMe.com Confidential Property of VerifyMe 11 11
Slide 12: Appendix
NASDAQ:VRME Appendix www.VerifyMe.com Confidential Property of VerifyMe 12
Slide 13: Non-GAAP Reconciliation
Non-GAAP Reconciliation This presentation includes both financial measures in accordance with U.S. generally accepted accounting principles (“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
Slide 14: Non-GAAP Reconciliation – EBITDA and Adjusted EBITDA
Non-GAAP Reconciliation – EBITDA and Adjusted EBITDA Three Months Ended Six Months Ended June 30 June 30 2023 2022 2023 2022 Net loss (GAAP) $ (882) $ (12,555) $ (2,462) $ (13,949) Interest expense (income), net 46 23 88 22 Amortization and depreciation 258 208 540 243 - - - Total EBITDA (Non-GAAP)
Slide 15: 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 15