-- Cash of $6.1 million as of June 30, 2025, with cash provided by 
      operations of $0.7 million in Q2 2025, compared to $0.4 million in Q2 
      2024 
 
   -- Quarterly revenue of $4.5 million in Q2 2025, compared to $5.4 million in 
      Q2 2024(1) 
 
   -- Quarterly gross profit of $1.6 million or 35% in Q2 2025, compared to 
      $2.1 million or 39% in Q2 2024 
 
   -- Net loss of ($0.29) million in Q2 2025, compared to ($0.34) million in Q2 
      2024(1) 
 
   -- Adjusted EBITDA(2) of $0.3 million in Q2 2025, compared to $0.2 million 
      in Q2 2024(1) 

LAKE MARY, Fla., Aug. 13, 2025 /PRNewswire/ -- VerifyMe, Inc. (NASDAQ: VRME) ("VerifyMe," "we," "our," or the "Company") provides brand owners time and temperature sensitive logistics, and brand protection and enhancement solutions, announced today the Company's financial results for its second quarter ended June 30, 2025 ("Q2 2025").

Adam Stedham, VerifyMe's CEO and President stated, "We are pleased with our year-to-date adjusted EBITDA growth over 2024, our positive cash generation in Q2 2025, and our new partnership with the other major parcel carrier in the US. We continue to look for strategic acquisitions to complement our services. In the meantime, we are setting the stage for organic revenue growth in 2026, accompanied by a higher margin profile and continued cash generation."

 
__________ 
(1) Including $0.6 million from loss of previously disclosed Premium services 
customer 
(2) Adjusted EBITDA is a non-GAAP financial measure. See "Use of Non-GAAP 
Financial Measures" below for information about this non- GAAP measure. A 
reconciliation to the most directly comparable GAAP measure, net loss, is 
included as a schedule to this release. 
 

Key Financial Highlights for Q2 2025:

   -- Quarterly consolidated revenue of $4.5 million in Q2 2025, compared to 
      $5.4 million for the three months ended June 30, 2024 ("Q2 2024"), 
      approximately 70% of reduction is attributable to a $0.6 million decrease 
      from a discontinued contract with one customer in our Premium services. 
 
   -- Gross profit of $1.6 million or 35% in Q2 2025, compared to $2.1 million 
      or 39% in Q2 2024 
 
   -- Net loss of ($0.29) million or ($0.02) per basic and diluted share in Q2 
      2025, compared to a net loss of ($0.34) million or ($0.03) per basic and 
      diluted share in Q2 2024(1) 
 
   -- Adjusted EBITDA(2) of $0.3 million in Q2 2025, compared to Adjusted 
      EBITDA of $0.2 million in Q2 2024(1) 
 
   -- Cash of $6.1 million as of June 30, 2025, with $0.7 million provided by 
      operations during Q2 2025 compared to $0.4 million in Q2 2024. 

Financial Results for the Three Months Ended June 30, 2025:

Revenue in Q2 2025 was $4.5 million, compared to $5.4 million in Q2 2024. Revenue for the quarter decreased by $0.9 million. The decrease is primarily due to a $0.6 million decrease from a discontinued contract with one customer in our Premium services, a $0.5 million decrease related to discontinued services to two customers in our Proactive services, partially offset by increased revenues from new and existing customers in the Precision Logistics segment. The decrease in revenue in our Authentication segment is primarily due to the divestiture of our Trust Codes Global business in December 2024.

Gross profit in Q2 2025 was $1.6 million, compared to $2.1 million in Q2 2024. The resulting gross margin percentage was 35% for the three months ended June 30, 2025, compared to 39% for the three months ended June 30, 2024. The decrease in gross margin was principally due to the discontinued contract in Premium services in the Precision Logistics segment which has higher margins. The Proactive services gross margin percentage improved in Q2 2025 compared to Q2 2024.

Operating loss was ($0.3) million in Q2 2025, compared to ($0.5) million in Q2 2024. The decrease in gross profit was more than offset by the decrease in operating expenses in the quarter. In addition to the reduction in operating costs with the divestiture of Trust Codes, the Company also implemented cost cutting measures in Precision Logistics.

Our net loss was ($0.29) million in Q2 2025and ($0.34) million in Q2 2024(1) . The resulting loss per basic and diluted share was ($0.02) in Q2 2025, compared to loss per basic and diluted share of ($0.03) in Q2 2024.

Adjusted EBITDA(2) in Q2 2025 was $0.3 million, compared to $0.2 million in Q2 2024. Adjusted EBITDA is a non-GAAP financial measure. Please see "Use of Non-GAAP Financial Measures" for a discussion of this non-GAAP measure. A reconciliation to the most directly comparable GAAP measure, net loss is included as a schedule to this release.

At June 30, 2025, we had a $6.1 million cash balance and $6.0 million in working capital.

 
__________ 
(1) Including $0.6 million from loss of previously disclosed Premium services 
customer 
(2) Adjusted EBITDA is a non-GAAP financial measure. See "Use of Non-GAAP 
Financial Measures" below for information about this non- GAAP measure. A 
reconciliation to the most directly comparable GAAP measure, net loss, is 
included as a schedule to this release. 
 

Earnings Call

The Company has scheduled an earnings conference call and webcast for 11:00 a.m. ET on Wednesday, August 13, 2025. Prepared remarks regarding the company's financial and operational results will be followed by a question and answer period with VerifyMe's executive team. The conference call may be accessed via webcast at: https://event.choruscall.com/mediaframe/webcast.html?webcastid=YmPT1jph or by calling +1 (844) 763-8274 within the US, or +1 (412) 717-9224 internationally, and requesting the "VerifyMe Call." The presentation slides broadcast via the webcast will also be available on the Investors section of the VerifyMe website the morning of the call. Participants must be logged in via telephone to submit a question to management during the call. Participants may optionally pre-register for the conference call and webcast at: https://dpregister.com/sreg/10201806/ffaa27b28a.

The webcast and presentation will be archived on the Investors section of VerifyMe's website and will remain available for 90 days.

About VerifyMe, Inc.

VerifyMe, Inc. (NASDAQ: VRME), provides specialized logistics for time and temperature sensitive products, as well as brand protection and enhancement solutions. To learn more, visit www.verifyme.com.

Cautionary Note Regarding Forward-Looking Statements

This release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The words "believe, " "continue," "may," "should," "will," and similar expressions, as they relate to us, are intended to identify forward-looking statements. We have based these forward-looking statements largely on our current expectations and projections about future events and financial trends that we believe may affect our financial condition, results of operations, business strategy and financial needs. Important factors that could cause actual results to differ from those in the forward-looking statements include our engagement in future acquisitions or strategic partnerships that increase our capital requirements or cause us to incur debt or assume contingent liabilities, our reliance on one key strategic partner for shipping services in our Precision Logistics segment, competition including by our key strategic partner, seasonal trends in our business, severe climate conditions, the highly competitive nature of the industry in which we operate, our brand image and corporate reputation, impairments related to our goodwill and other intangible assets, economic and other factors such as recessions, downturns in the economy, inflation, global uncertainty and instability, the effects of pandemics, changes in United States social, political, and regulatory conditions and/or a disruption of financial markets, reduced freight volumes due to economic conditions, reduced discretionary spending in a recessionary environment, global supply-chain delays or shortages, fluctuations in labor costs, raw materials, and changes in the availability of key suppliers, our history of losses, our ability to use our net operating losses to offset future taxable income, the confusion of our name brand with other brands, the ability of our technology to work as anticipated and to successfully provide analytics logistics management, our ability to continue to invest in the development and commercialization of our Authentication segment, the ability of our strategic partners to integrate our solutions into their product offerings, our ability to manage our growth effectively, our ability to successfully develop and expand our sales and marketing capabilities, risks related to doing business outside of the U.S., intellectual property litigation, our ability to successfully develop, implement, maintain, upgrade, enhance, and protect our information technology systems, our reliance on third-party information technology service providers, our ability to respond to evolving laws related to information technology such as privacy laws, our ability to attract, retain and develop successors for management, our ability to work with partners in selling our technologies to businesses, production difficulties, our inability to enter into contracts and arrangements with future partners, our ability to acquire new customers, issues which may affect the reluctance of large companies to change their purchasing of products, acceptance of our technologies and the efficiency of our authenticators in the field, our ability to comply with the continued listing standards of the Nasdaq Capital Market, and our ability to timely pay amounts due and comply with the covenants under our debt facilities. These risk factors and uncertainties include those more fully described in VerifyMe's Annual Report and Quarterly Reports filed with the Securities and Exchange Commission, including under the heading entitled "Risk Factors." Should one or more of these risks or

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