VerifyMe, Inc. reported a consolidated revenue of $24.2 million for the fiscal year ending December 31, 2024, reflecting a 4% decrease from $25.3 million in the previous year. The decline was primarily attributed to a discontinued contract in the Precision Logistics segment, which generated $23.8 million in revenue, down from $24.7 million in 2023. The Authentication segment contributed $441,000, a slight decrease from $661,000 in the prior year. The company also experienced a net loss of $3.8 million, compared to a loss of $3.4 million in 2023, largely due to impairment charges related to goodwill and intangible assets.
In terms of operational performance, VerifyMe's gross profit increased to $8.7 million, representing a gross margin of 36%, up from 32% in 2023. This improvement was driven by enhanced margins in the Precision Logistics segment, particularly through process improvements in Proactive services. However, the company faced challenges, including a significant impairment charge of $1.4 million related to goodwill in the Authentication segment, which was influenced by changes in forecasted cash flows.
Strategically, VerifyMe divested its Trust Codes Global business on December 8, 2024, for a nominal amount, recognizing a loss of $100,000 on the sale. The company continues to focus on its Precision Logistics segment, which utilizes predictive analytics to manage time and temperature-sensitive shipments. The firm has also emphasized its partnerships, particularly with a major global carrier, to enhance service offerings and expand its market reach.
As of December 31, 2024, VerifyMe employed approximately 40 individuals, with a focus on its Precision Logistics operations. The company has identified growth opportunities in the small and medium-sized agriculture, food, beverage, and healthcare sectors, which it plans to target through its sales efforts. Despite the current economic environment and potential impacts on discretionary spending, VerifyMe remains optimistic about its ability to grow through strategic partnerships and operational efficiencies.
Looking ahead, VerifyMe anticipates continued challenges due to economic conditions affecting consumer spending and demand for high-end perishable items. The company is committed to leveraging its proprietary technology and analytics capabilities to enhance service delivery and customer satisfaction. Management believes that the ongoing focus on operational improvements and strategic partnerships will position VerifyMe for future growth, although it acknowledges the inherent risks and uncertainties in achieving these objectives.
About VerifyMe, Inc.
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