VerifyMe, Inc.

Good morning, everyone, and welcome to the Verify Me fourth quarter 2024 financial results conference call. All participants will be in a listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star and then one using a touchtone telephone. To withdraw your questions, you may press star and two. Please also note today's event is being recorded. At this time, I'd like to turn the floor over to Nancy Meyers, CFO. Ma'am, please go ahead.

Good morning, everyone, and thank you for joining us today for our earnings call presentation. On the call today, I am joined by Adam Stedham, CEO and President, who will give an operations and strategic update. Following our management presentation, we will have a Q&A session. I would like to bring your attention to the note on forward-looking statements on slide three. Today's presentation and the answers to questions include forward-looking statements. It should be understood that actual results could differ materially from those projected due to a number of factors, including those described under the forward-looking statements caption and on the risk factors of the company's annual report on Form 10-K and quarterly reports on Form 10-Q. I will now turn the call over to Adam Stedham for some opening remarks.

Thank you, Nancy. So 2024 was a significant year for VerifyMe. During the year, we invested significant time, energy, and resources into the code portion of our authentication segment. As we discussed on our last earnings call, these investments did not yield the returns we desired And the investment in time and resources dragged on overall company growth. So our annual revenue for 2024 was 4% below the revenue in 2023. However, we did experience year over year improvements in gross profit, gross margin, and adjusted EBITDA. In addition, the company grew our total cash net of debt in 2024. During our last earnings call, the company shared that we're taking steps to reduce investments in areas that are not providing the desired returns, and we're diligently working on strategic investments to deliver shareholder value. During January of 2025, we further expanded our capabilities in this area by completing a $4.7 million warrant-inducement capital raise and retiring the company's bank debt. In addition, our convertible debt reduced from 1.1 million to 800,000. The remaining holders of convertible notes are all affiliates and members of the board of directors. So, after adding further to verify these options to generate additional capital, and liquidity, we've also filed a $15.8 million at-the-market sales offering to be used at our discretion. So as a result of all of these steps, the company is sufficiently capitalized to pursue strategies aimed at rewarding the shareholders. We continue to actively work with bankers and advisors, evaluating multiple options and defining our plans. So let me shift the conversation to our existing operations. So first, I'd like to discuss our precision logistics segment. It's important to note the Perryship business in this segment is a positive cash-generating business that provides a valuable service to the marketplace, and we're continuing to optimize our sales strategies. In 2024, we increased the number of proactive customers by 6% over 2023. However, the shipments by existing customers in the proactive service line were down 6% in 2024 versus the previous year. So we've hired additional sales resources in 2024, and we're also piloting various marketing strategies to optimize our approach to marketing and sales. So we believe that we'll define the optimum sales strategy for this business. So at this point, I'd like to mention our authentication segment. The company divested the TrustCo's global business on December 8, 2024. During 2024, this business had an operating loss of $1.2 million, excluding impairments. Our authentication segment also includes our Inc. business. We're continuing to review our strategy for the Inc. business, but it's important to consider that this portion of the company represents less than 1% of overall company revenues. So overall, I feel that we've taken the steps to position the company to create value for shareholders going forward. So at this point, I'd like to turn the call back over to Nancy Meyers, our CFO, and she'll review the specific Q4 financials.