VerifyMe Inc (VRME) 2025 Q2 法說會逐字稿

Good day, and welcome to the VerifyMe second quarter 2025 financial results conference call. (Operator Instructions) Please note that this event is being recorded.

大家好，歡迎參加 VerifyMe 2025 年第二季財務業績電話會議。（操作員指示）請注意，此事件正在被記錄。

I would now like to turn the conference over to Jennifer Cola, Chief Financial Officer. Please go ahead, ma'am.

現在我想將會議交給財務長珍妮佛·科拉 (Jennifer Cola)。請繼續，女士。

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'll have a Q&A session. I would like to bring your attention to the note on forward-looking statements on slide 3.

大家早安，感謝您今天參加我們的 2025 年第二季財報電話會議。在今天的電話會議上，執行長兼總裁亞當·斯特德漢姆 (Adam Stedham) 將與我一起介紹營運和戰略最新情況，在我們的管理演示之後，我們將進行問答環節。我想提請您注意投影片 3 上有關前瞻性陳述的說明。

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.

今天的演示和問題的回答包括前瞻性陳述。應理解，由於多種因素，實際結果可能與預測結果有重大差異，包括前瞻性聲明標題下所述的因素以及公司 10-K 表年度報告和 10-Q 表季度報告中的風險因素。

I will now turn the call over to Adam Stedham to discuss the company's strategy.

現在我將把電話轉給亞當·斯特德漢姆來討論公司的策略。

Thank you, Jen. So I'm very pleased with the progress we've made in 2025. Our primary organic focus is on PeriShip. And I realized that during the second quarter of 2025, PeriShip 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.

謝謝你，Jen。因此，我對我們在 2025 年的進展感到非常滿意。我們主要的有機關注點是 PeriShip。我意識到，2025 年第二季度，PeriShip 的營收與去年第二季相比下降了約 14%。話雖如此，主要因素是先前宣布的 2024 年大客戶的損失。

Outside of those historical customers new customer sales and expanded revenues with specific existing customers have offset some overall softening of the partial shipment market. I'd also like to point out the VerifyMe has reduced our operating expenses by approximately 27% versus Q2 of 2024. We're managing our cost in alignment with revenues, and we're maximizing the gross margin of our proactive services within our Precision Logistics segment.

除了這些歷史客戶之外，新客戶銷售額和特定現有客戶的收入成長抵消了部分運送市場整體疲軟的影響。我還想指出，與 2024 年第二季相比，VerifyMe 將我們的營運費用降低了約 27%。我們根據收入來管理成本，並最大限度地提高精準物流部門主動服務的毛利率。

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.

我們 2025 年第二季的正向調整後 EBITDA 較 2024 年第二季有所改善。因此，我們正在採取必要的措施，確保我們有足夠的資源投資於有機成長和策略成長策略。

So 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 PeriShip 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.

因此，在我們之前的電話會議中，我討論了為股東創造價值的有機成長計劃。我們的主要重點是透過直接簽約的 PeriShip 客戶來擴大收入。這些努力正在取得非常積極的成果。我們對 2025 年新增的客戶感到非常高興。我們的行銷努力繼續產生更多的入站線索活動，我們相信我們的業務發展和行銷方法將成為 2026 年有意義的有機收入成長的重要組成部分。

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-US Postal Service parcel shipments in the United States.

現在，我們討論的有機成長策略的第二個要素是與其他貨運公司和第三方物流公司建立關係。我們很高興地宣布，我們現在已經與兩家貨運公司建立了合作關係，這兩家公司負責處理美國絕大多數非美國郵政服務包裹的運輸。

Historically, our single carrier strategy created an environment in which PeriShip 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 have in organic revenue growth in 2026.

從歷史上看，我們的單一承運人策略創造了一種環境，使得 PeriShip 沒有能力為我們的服務的潛在目標市場提供有意義的服務。將我們的技術和服務與額外的貨運承運商整合的過程將需要幾個月的時間，但第二家承運商的加入進一步增強了我們對 2026 年有機收入成長的信心。

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.

我們之前也宣布過，我們正在與電子商務購物車和運輸管理軟體應用程式相關的技術平台進行整合。因此，我們已經完成了上次電話會議中討論的那些項目和整合，我們的技術團隊現在將重點轉移到與我們的運輸承運商關係的技術整合和升級上。

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.

因此，現在我想將話題從有機成長努力轉向策略成長努力。正如我之前提到的，截至 2025 年第二季末，公司擁有 610 萬美元的現金，我們不需要現金來支持年度營運或上市公司的開支。我們將繼續評估變革性收購和補充性收購。

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.

然而，很難預測這些活動的時間或機率。因此，在我們認真評估這些策略選擇的同時，我們希望從強勁的資產負債表中獲得更多利益。因此，我們採取了財務策略，使公司能夠從強勁的資產負債表中實現更好的利息收入和現金產生。

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 strategies to improve our annualized interest income from approximately 4% of total available cash to greater than 8%.

該策略涉及將我們的部分可用現金借給 Zen Credit Ventures，以換取比我們目前的高收益儲蓄帳戶更優惠的利率的九個月期票。我們預計這項策略將使我們的年化利息收入從總可用現金的約 4% 提高到 8% 以上。

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.

我們認為這項策略不會對我們為公司尋求策略選擇的能力產生任何影響。我們繼續擁有銀行的信用額度，並與銀行保持良好的關係，我們認為我們有足夠的資金來追求我們想要的任何策略選擇。

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.

因此，現在我想把電話轉回給珍妮佛·科拉，她將審查本季的財務細節。

Thank you, Adam. The second quarter revenue was $4.5 million versus the prior year of $5.4 million, a decrease of $0.9 million. This decrease was primarily due to a previously disclosed discontinued contract in our premium services, discontinued services with two customers in our proactive services partially offset by increased revenues from new and existing customers in our Precision Logistics segment. Gross profit decreased by $0.5 million to $1.6 million in Q2 2025 compared to $2.1 million in Q2 2024, as a percentage of revenue, gross margin was 35% in Q2 2025 versus 39% in Q2 2024.

謝謝你，亞當。第二季營收為 450 萬美元，而去年同期為 540 萬美元，減少了 90 萬美元。這一下降主要是由於我們先前披露的優質服務合約終止，以及我們主動服務中與兩個客戶的服務終止，但精準物流部門新舊客戶收入的增加部分抵消了這一影響。2025 年第二季毛利為 160 萬美元，較 2024 年第二季的 210 萬美元減少 50 萬美元，佔營收的百分比為 2025 年第二季的毛利率為 35%，而 2024 年第二季的毛利率為 39%。

While the quarter resulted in a decrease year-over-year gross profit percentage, the loss of the one customer in our higher-margin premium services was partially offset by margin improvements in our proactive services. We expect the gross profit percentage to increase compared to Q3 and Q4 of 2024, factoring in the seasonal variation in our Precision Logistics segment.

雖然本季毛利率年減，但我們高利潤優質服務中失去的一名客戶被我們主動服務的利潤率提高部分抵銷。考慮到精準物流部門的季節性變化，我們預計毛利率將比 2024 年第三季和第四季增加。

Operating expenses were $1.9 million in Q2 2025 compared to $2.6 million in Q2 2024, in addition to a reduction in operating costs resulting from the divestiture of Trust Codes in December of 2024, the company also implemented cost-cutting measures in the Precision Logistics segment.

2025 年第二季的營運費用為 190 萬美元，而 2024 年第二季為 260 萬美元，除了 2024 年 12 月剝離信託代碼導致的營運成本降低外，該公司還在精準物流部門實施了削減成本的措施。

Our net loss for the quarter was $0.29 million or a loss of $0.02 per diluted share in Q2 2025, compared to a net loss of $0.35 million or $0.03 per diluted share in Q2 2024. We purchased 201,000 shares of company stock during Q2 2025 at a cost of $153,000 and have $330,000 remaining under the share repurchase program. Our adjusted EBITDA improved to $0.3 million in Q2 2025 compared to $0.2 million in Q2 2024 as a result of our continued efforts to reduce costs and develop our operational efficiencies.

2025 年第二季我們的淨虧損為 0.29 百萬美元，即每股攤薄虧損 0.02 美元，而 2024 年第二季的淨虧損為 0.35 百萬美元，即每股攤薄虧損 0.03 美元。我們在 2025 年第二季以 153,000 美元的成本購買了 201,000 股公司股票，並且根據股票回購計劃剩餘 330,000 美元。由於我們不斷努力降低成本並提高營運效率，我們的調整後 EBITDA 從 2024 年第二季的 20 萬美元提高到 2025 年第二季的 30 萬美元。

On the last slide is our balance sheet as of June 30, 2025. Our cash balance as of June 30, 2025 was $6.1 million, an increase of $3.3 million from a balance of $2.8 million on December 31, 2024. During Q2 2025, we generated $0.7 million cash from operations compared to $0.4 million in Q2 2024.

最後一張投影片是截至 2025 年 6 月 30 日的資產負債表。截至 2025 年 6 月 30 日，我們的現金餘額為 610 萬美元，比 2024 年 12 月 31 日的 280 萬美元餘額增加了 330 萬美元。2025 年第二季度，我們的營運現金流為 70 萬美元，而 2024 年第二季為 40 萬美元。

We expect to have continued positive cash flow from operations in the second half of 2025. On August 8, 2025, to improve our rate of return on our available cash balance, we entered into a $2 million short-term loan agreement and promissory note in exchange for regular quarterly interest payments at an annual interest rate of 16%.

我們預計 2025 年下半年的經營現金流將持續為正。2025 年 8 月 8 日，為了提高可用現金餘額的回報率，我們簽訂了一份 200 萬美元的短期貸款協議和本票，以 16% 的年利率定期支付季度利息。

We also continue to have $1 million available under our line of credit and have no borrowings outstanding. With that, I'd like to turn the call back to Adam.

我們的信用額度下仍有 100 萬美元可用，並且沒有未償還借款。說完這些，我想把電話轉回給亞當。

Thank you, Jen. As I started the call, I'm pleased with the progress in 2025. We're advancing our strategy for developing directly contracted PeriShip customers. I believe this strategy presents the company with the best opportunity for sustainable organic growth. In addition, we continue to have a disciplined approach to managing our cost, margins and evaluating strategic opportunities.

謝謝你，Jen。當我開始通話時，我對 2025 年的進展感到滿意。我們正在推進開發直接簽署 PeriShip 客戶的策略。我相信這項策略為公司提供了可持續有機成長的最佳機會。此外，我們繼續採取嚴謹的方法來管理成本、利潤和評估策略機會。

The combination of the strength of our balance sheet, anticipated annual cash flow and our executive team's experience with creating value through acquisitions positions the company to provide meaningful shareholder returns for our current share price.

我們資產負債表的實力、預期的年度現金流以及我們管理團隊透過收購創造價值的經驗，使公司能夠以當前的股價為股東提供有意義的回報。

So at this point, I think we'll turn the call over for questions and answers.

因此，現在我想我們應該將電話轉入問答環節。

(Operator Instructions)

（操作員指示）

Mike Petusky, Barrington Research.

巴林頓研究公司的麥克‧佩圖斯基（Mike Petusky）

A couple of quick one for Jennifer and then I have one or two for you as well, Adam. Jennifer, do you have the authentication revenue in the quarter?

我要快速地問珍妮佛幾個問題，然後我也要問你一兩個問題，亞當。詹妮弗，您有本季的認證收入嗎？

Yes, it was -- sorry, $27,000.

是的，是——抱歉，是 27,000 美元。

And then do you have the growth ex the impact of the lost business on PeriShip like -- if you excluded the impact of the business that was lost in '24, do you have sort of a number in terms of just growth rate for that business?

那麼，您是否有扣除 PeriShip 業務損失的影響後的成長數據？如果您排除 24 年業務損失的影響，您是否有該業務成長率的數字？

It's hard to answer that in that way because if you look at -- we had the customer that was in-sourced by our shipping partner where the customer we discussed that had to outsource their cold chain strategy. So -- but between the two, I think -- for one, we could mathematically answer it, but I think it would give an unclear answer. But I think the puts and takes -- single-digit percentage one way or the other, after those puts and takes.

很難用這種方式回答這個問題，因為如果你看一下——我們有一個由我們的運輸合作夥伴內部採購的客戶，而我們討論過的客戶必須外包他們的冷鏈策略。所以——但我認為，在這兩者之間——首先，我們可以用數學來回答這個問題，但我認為它會給出一個不明確的答案。但我認為，在進行這些投入和產出之後，無論如何，投入和產出的百分比都是個位數。

Okay. And then in terms of the other carrier, you seem to suggest -- impact would be at least a couple of months out before that would start to show up. I mean, do you expect that relationship to be material over the next few quarters? Or is that going to be a slow build?

好的。然後就其他運營商而言，您似乎暗示——影響至少要幾個月後才會開始顯現。我的意思是，您是否預計這種關係在未來幾季會變得重要？或者說這會是一個緩慢的建造過程？

I wouldn't expect it to happen in the next -- I wouldn't expect it to have anything to happen soon because as I said, it's going to take a couple of months to integrate with their technology. In addition to that, historically speaking, shippers are very reluctant to make changes during peak season. The overall shipping marketplace becomes strained between Thanksgiving and Christmas. And so companies, e-commerce companies or companies do a lot of shipping that are aware of this, so they don't make a lot of changes. So that would also create an environment where you wouldn't get a lot of changes there.

我不會期望它會在接下來發生——我不會期望它會很快發生任何事情，因為正如我所說，它需要幾個月的時間來與他們的技術相結合。除此之外，從歷史上看，托運人非常不願意在旺季做出改變。感恩節和聖誕節之間，整個航運市場變得緊張。因此，電子商務公司或從事大量運輸的公司都意識到了這一點，所以他們不會做出太多改變。因此，這也會創造一個不會發生太多變化的環境。

So it will be -- the build will be pushed further back, start to materialize more noticeably in 2026. The thing I would point out to you though is that if you look at the overall marketplace, the new carrier handles a much larger -- has a much larger percentage of the marketplace than our existing partner does for the specific types of parcel shipments that we service, and that's why we're pretty excited about it.

所以，建設將會被進一步推遲，到 2026 年才會開始更明顯地實現。不過，我想指出的是，如果你看一下整個市場，你會發現新的承運商處理的市場份額比我們現有的合作夥伴在我們服務的特定類型的包裹運輸方面要大得多，這就是我們對此感到非常興奮的原因。

Okay. And then I guess just last question Adam and I'll let others get on here. Obviously, a good quarter in terms of expense management, the cash generation, the cash build, all of it's great. You've got this cash balance, which is the healthiest it's been -- that I can remember, at least in recent memory. And so I'm just curious, in terms of your capital allocation priorities, I mean, is it -- would number one be internal investment in PeriShip?

好的。然後我想最後一個問題就是亞當，我會讓其他人來這裡問問題。顯然，從費用管理、現金產生、現金累積等方面來看，這是一個很好的季度，一切都很棒。你們的現金餘額是我記憶中最健康的，至少是近期最健康的。所以我很好奇，就您的資本配置優先事項而言，我的意思是——第一位的是對 PeriShip 的內部投資嗎？

Would it be adding on some other business via M&A? Like how are you thinking about that -- utilizing that balance sheet to create shareholder value over the next few years?

它會透過併購增加一些其他業務嗎？例如，您是如何考慮的—利用資產負債表在未來幾年內創造股東價值？

Great question. So the focus of 2025 really has been on transforming PeriShip and getting it to where it has a highly efficient, highly scalable model that can grow from there. We made that pivot as we pivoted out with the divestiture that we had at the end of 2024, so that's where we're focusing this year. Through that, we continue -- we have generated cash through the warrant inducement earlier in the year.

好問題。因此，2025 年的重點實際上是改造 PeriShip，並使其擁有一個高效、高度可擴展的模式，並可從此發展。我們在 2024 年底進行資產剝離時做出了這項轉變，所以這也是我們今年的重點。透過這種方式，我們繼續——我們在今年早些時候透過認股權證誘導產生了現金。

We continue to generate cash flow from operations. So that money, the capital that we're making available, we're really not thinking that back into the operating business. We're looking to deploy that in other ways to create value.

我們繼續從營運中產生現金流。因此，我們實際上並沒有考慮將我們提供的這些資金、這些資本重新投入到營運業務中。我們正在尋求透過其他方式來創造價值。

Now we've evaluated potential acquisitions that are in the same space. And we've looked at other strategic alternatives to put the capital at work. To be quite frank, we're just -- we're trying to be very, very diligent and make sure that whatever we do, we get it right, and it provides a very meaningful return to the shareholders.

現在我們已經評估了同一領域的潛在收購。我們也研究了其他策略替代方案來讓資本發揮作用。坦白說，我們只是——我們試圖非常非常勤奮，並確保無論我們做什麼，我們都能做對，並為股東帶來非常有意義的回報。

So without a doubt, we plan on deploying the capital in a way that would provide strategic advantage to our shareholders. But it's not burning a hole -- the money is not burning a hole in our pocket either, and we want to make sure we get it done right.

因此，毫無疑問，我們計劃以一種能為股東帶來策略優勢的方式部署資本。但這並不是燒錢——錢也不會花在我們的口袋裡，我們希望確保我們能把事情做好。

Did that answer the question? I feel like I may not have directly answered it, I want to give you the color of what we're trying to do.

這回答了問題嗎？我覺得我可能沒有直接回答這個問題，我想讓你了解我們正在嘗試做的事情。

No. I mean my takeaway from your answer essentially, you'd like to find an asset or assets externally if you can find something you think has a good ROI?

不。我的意思是，從你的回答中我得到的結論是，如果你能找到你認為具有良好投資回報率的東西，你會願意從外部尋找一項或多項資產嗎？

Absolutely. I would very much -- as we said from the beginning, when I first came on board, the plan has been to create shareholder value through a combination of organic and strategic growth. And I continue to be diligently focused on strategic growth and the right opportunity just hasn't materialized yet.

絕對地。我非常願意——正如我們一開始所說的那樣，當我剛加入公司時，我們的計劃是透過有機成長和策略成長相結合來創造股東價值。我繼續努力專注於策略成長，但合適的機會尚未出現。

This will conclude our question-and-answer session. I would like to turn the conference back over to management for any closing remarks.

我們的問答環節到此結束。我想將會議交還給管理階層，請他們發表結束語。

Thank you. I appreciate everybody joining the call today. I look forward to our next call and keeping everybody updated on the progress -- with provide -- with our additional freight carrier and thanks again. Bye-bye.

謝謝。我感謝今天參加電話會議的各位。我期待著我們的下一次通話，並讓每個人都了解進展情況——提供——我們的額外貨運承運商，再次感謝。再見。

The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.

會議現已結束。感謝您參加今天的演講。您現在可以斷開連線。