VerifyMe, Inc.

Good day, and welcome to the Verify Me second quarter 2025 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, then one on a touch-tone phone. To withdraw your question, please press star, then two. Please note that this event is being recorded. I would now like to turn the conference over to Jennifer Corolla, Chief Financial Officer. Please go ahead, ma'am.

Good morning, everyone, and thank you for joining us today for our second quarter 2025 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 answer to questions includes 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 to discuss the company strategy.

Thank you, Jen. So I'm very pleased with the progress we've made in 2025. Our primary organic focus is on Perryship. And I realized that during the second quarter of 2025, Perryship revenue decreased approximately 14% versus the second quarter last year. With that said, the major contributing factor was the previously announced large customers losses back in 2024. Outside of those historical customers, new customer sales and expanded revenues with specific existing customers have offset some overall softening of the parcel shipment market. I'd also like to point out that VerifyMe has reduced our operating expenses by approximately 27% versus Q2 of 2024. We're managing our costs in alignment with revenues, and we're maximizing the gross margin of our proactive services within our precision logistics segment. Our positive adjusted EBITDA in Q2 2025 is an improvement over Q2 2024, so we're taking the steps that are required to ensure we have sufficient resources to invest in our strategies for both organic and strategic growth. During our previous call, I discussed our organic growth initiatives for creating value for our shareholders. Our primary focus is expanding revenues with directly contracted Perryship customers. These efforts are delivering very positive results. We're pleased with the new customers we're adding in 2025. Our marketing efforts continue to generate increased inbound lead activity And we believe our business development and marketing approach will be a significant component to meaningful organic revenue growth in 2026. Now, the second element of the organic growth strategy we discussed was developing relationships with additional freight carriers and third-party logistics companies. We're pleased to announce that we now have a relationship with the two freight carriers that handle the overwhelming majority of the non-U.S. Postal Service parcel shipments in the United States. Historically, our single carrier strategy created an environment in which Perryship did not have the ability to service meaningful portions of the potential target market for our services. The process of integrating our technology and services with our additional freight carrier will take a couple of months. But the addition of a second carrier further reinforces the confidence we had in organic revenue growth in 2026. And we had also previously announced that we were integrating with technology platforms related to e-commerce shopping carts and shipping management software applications. So we've completed those projects and those integrations that we discussed on our last call. And our technology team is now shifting their focus to technology integrations and upgrades with our shipping carrier relationships. So at this point, I'd like to shift the conversation from organic growth efforts to our strategic growth efforts. As I mentioned earlier, the company had 6.1 million of cash at the end of Q2 2025, and we do not require cash to support annual operating or public company expenses. We continue to evaluate transformative and tuck-in acquisitions. However, it's difficult to predict the timing or probability of these activities. Therefore, while we're diligently evaluating these strategic options, we want to realize more benefits from the strength of our balance sheet. Therefore, we've adopted a treasury strategy that will allow the company to realize better interest income and cash generation from our strong balance sheet. This strategy involves loaning a portion of our available to cash to Zen Credit Ventures in exchange for a nine month promissory note at a more favorable interest rate than our current high yield savings account. We anticipate this strategy should improve our annualized interest income from approximately 4% of total available cash to greater than 8%. We don't believe this strategy will have any impact on our ability to pursue strategic options for the company. We continue to have availability under our line of credit with our bank and a good relationship with our bankers. And we feel we have plenty of access to capital to pursue any strategic options we desire. So at this point, I'd like to turn the call back over to Jennifer Cola, and she'll review the financial details of the quarter.