VerifyMe, Inc. Files Q2 2024 10-Q Report

TL;DR

VerifyMe's Q2 10-Q is in. Check financials for latest performance.

AI Summary

VerifyMe, Inc. filed its 10-Q for the period ending June 30, 2024. The company reported financial results for the second quarter and the first six months of 2024. Key financial data and operational updates are detailed within the filing.

Why It Matters

This filing provides investors and analysts with the latest financial performance and operational status of VerifyMe, Inc., crucial for understanding the company's trajectory.

Risk Assessment

Risk Level: medium — 10-Q filings are standard disclosures, but the specific financial health and operational details within can reveal significant risks.

Key Numbers

• 2024-06-30 — Reporting Period End Date (Indicates the end of the fiscal quarter for which financial data is reported.)
• 2024-08-13 — Filing Date (The date VerifyMe, Inc. officially submitted this 10-Q to the SEC.)

Key Players & Entities

• VerifyMe, Inc. (company) — Filer of the 10-Q report
• 20240630 (date) — End of the reporting period
• 20240813 (date) — Date the report was filed
• LASERLOCK TECHNOLOGIES INC (company) — Former company name

FAQ

Key Financial Figures

• $0.001 — ch Registered Common Stock, par value $0.001 per share VRME The Nasdaq Capital Mar
• $239 thousand — a) Includes share-based compensation of $239 thousand and $697 thousand for the three and six
• $697 thousand — based compensation of $239 thousand and $697 thousand for the three and six months ended June
• $315 thousand — ended June 30, 2024, respectively, and $315 thousand and $601 thousand for the three and six
• $601 thousand — 24, respectively, and $315 thousand and $601 thousand for the three and six months ended June

Filing Documents

• y8624010q.htm (10-Q) — 1209KB
• ex10_2.htm (EX-10.2) — 49KB
• ex10_3.htm (EX-10.3) — 14KB
• ex31_1.htm (EX-31.1) — 8KB
• ex31_2.htm (EX-31.2) — 8KB
• ex32_1.htm (EX-32.1) — 7KB
• 0001214659-24-014333.txt ( ) — 6244KB
• vrme-20240630.xsd (EX-101.SCH) — 47KB
• vrme-20240630_cal.xml (EX-101.CAL) — 60KB
• vrme-20240630_def.xml (EX-101.DEF) — 204KB
• vrme-20240630_lab.xml (EX-101.LAB) — 357KB
• vrme-20240630_pre.xml (EX-101.PRE) — 294KB
• y8624010q_htm.xml (XML) — 1050KB

- FINANCIAL INFORMATION

PART I - FINANCIAL INFORMATION ITEM 1.

Financial Statements

Financial Statements 4 Consolidated Balance Sheets (Unaudited) 4 Consolidated Statements of Operations (Unaudited) 6 Consolidated Statements of Comprehensive Loss (Unaudited) 7 Consolidated Statements of Cash Flows (Unaudited) 8 Consolidated Statements of Stockholders' Equity (Unaudited) 10

Notes to Consolidated Financial Statements (Unaudited)

Notes to Consolidated Financial Statements (Unaudited) 12 ITEM 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 29 ITEM 3.

Quantitative and Qualitative Disclosures about Market Risk

Quantitative and Qualitative Disclosures about Market Risk 37 ITEM 4.

Controls and Procedures

Controls and Procedures 37

- OTHER INFORMATION

PART II - OTHER INFORMATION ITEM 1.

Legal Proceedings

Legal Proceedings 38 ITEM 1A.

Risk Factors

Risk Factors 38 ITEM 2. Unregistered Sales of Equity Securities and Use of Proceeds 39 ITEM 3. Defaults Upon Senior Securities 39 ITEM 4. Mine Safety Disclosures 39 ITEM 5. Other Information 39 ITEM 6. Exhibits 40

SIGNATURES

SIGNATURES 41 3 Table of Contents

- FINANCIAL STATEMENTS

PART I - FINANCIAL STATEMENTS ITEM 1. VerifyMe, Inc. Consolidated Balance Sheets (In thousands, except share data) As of June 30, 2024 December 31, 2023 (Unaudited) ASSETS CURRENT ASSETS Cash and cash equivalents including restricted cash $ 2,900 $ 3,095 Accounts receivable, net of allowance for credit loss reserve, $ 156 and $ 165 as of June 30, 2024 and December 31, 2023, respectively 1,214 3,017 Unbilled revenue 751 1,282 Prepaid expenses and other current assets 210 254 Inventory 23 38 TOTAL CURRENT ASSETS 5,098 7,686 PROPERTY AND EQUIPMENT, NET $ 184 $ 240 RIGHT OF USE ASSET 378 468 INTANGIBLE ASSETS, NET 6,539 6,927 GOODWILL 5,334 5,384 TOTAL ASSETS $ 17,533 $ 20,705 LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES Term note, current $ 500 $ 500 Accounts payable 1,331 3,310 Other accrued expense 808 988 Lease liability- current 165 170 Contingent liability- current 123 173 TOTAL CURRENT LIABILITIES 2,927 5,141 LONG-TERM LIABILITIES Contingent liability, non-current $ 401 $ 751 Long-term lease liability 223 307 Term note 625 875 Convertible Note – related party 475 475 Convertible Note 625 625 TOTAL LIABILITIES $ 5,276 $ 8,174 STOCKHOLDERS' EQUITY Series A Convertible Preferred Stock, $ .001 par value, 37,564,767 shares authorized; 0 shares issued and outstanding as of June 30, 2024 and December 31, 2023, respectively - - Series B Convertible Preferred Stock, $ .001 par value; 85 shares authorized; 0.85 shares issued and outstanding as of June 30, 2024 and December 31, 2023, respectively - - 4 Table of Contents Common stock, $ 0.001 par value; 675,000,000 authorized; 10,655,065 and 10,453,315 issued, 10,384,698 and 10,123,964 shares outstanding as of June 30, 2024 and December 31, 2023, respectively 11 10 Additional paid in capital 95,504 95,031 Treasury stock at cost; 270,367 and 329,351 shares at June 30, 2024 and D

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View this 10-Q filing on SEC EDGAR