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LAKE MARY, Fla. - VerifyMe, Inc. (NASDAQ: VRME), a provider of brand protection and logistics solutions, announced an extension of its share repurchase program. The Board of Directors has approved the continuation of the 2024 Share Repurchase Authorization until December 31, 2025. This decision allows the company to buy back up to $500,000 of its common stock depending on market conditions and legal considerations.
The repurchase plan, which may operate under a Rule 10b5-1 trading plan, does not commit VerifyMe to purchase any particular quantity of shares. The scope of the buyback program can be adjusted, paused, or terminated at the Board's discretion. Share acquisitions may occur on the open market, through block trades, or in privately negotiated transactions, with funds coming from operational cash flow.
Adam Stedham, President and CEO of VerifyMe, expressed confidence in the company's operational efficiency and growth potential. "The Company wants to have all capital allocation options available to ensure we can optimize both our short and long-term shareholder value creation," he stated, highlighting the Board's commitment to resource allocation for strategic execution.
VerifyMe operates in brand protection and logistics, offering anti-counterfeiting and brand enhancement services, as well as specialized logistics for sensitive products. The company caters to a global clientele and emphasizes its role in safeguarding brands and providing secure logistics solutions.
The extension of the share repurchase plan is part of VerifyMe's broader strategy to deliver shareholder value and invest in growth initiatives. However, the company's forward-looking statements, including those related to the repurchase plan and value delivery, are subject to various risks and uncertainties that could cause actual outcomes to differ. These include economic conditions, competition, regulatory changes, and other factors detailed in the company's filings with the Securities and Exchange Commission.
This news is based on a press release statement from VerifyMe, Inc.
In other recent news, VerifyMe Inc. reported mixed financial results for the third quarter of 2024, with a decrease in revenue to $5.4 million from $5.6 million in the same period of the previous year. The company's net loss for the quarter stood at $2.4 million, largely influenced by a $2.3 million goodwill impairment. VerifyMe's Authentication segment underperformed, leading to a strategic reevaluation and a potential exit from the segment by the end of 2024.
In contrast, the Precision Logistics business saw a 6% increase in proactive services customers, showing positive developments. The company aims to achieve adjusted EBITDA positivity by 2025, focusing on operational enhancements in Precision Logistics to improve shareholder value.
In light of these recent developments, VerifyMe is considering a strategic shift, including an exit from its Amazon (NASDAQ:AMZN) Transparency partnership. This decision aims to concentrate on more profitable areas within the Authentication segment, such as ink products. Investors can anticipate a detailed discussion on the company's strategies for 2025 in the upcoming Q4 earnings call.
InvestingPro Insights
VerifyMe's decision to extend its share repurchase program comes at a time when the company's stock appears to be undervalued according to several metrics. InvestingPro data shows that VerifyMe is trading at a low revenue valuation multiple, with a Price to Book ratio of just 0.64 as of the last twelve months ending Q3 2024. This suggests that the market may be undervaluing the company's assets relative to its stock price.
The company's stock has experienced significant downward pressure recently, with InvestingPro Tips indicating that the stock has taken a big hit over the last week and has performed poorly over the last month. Specifically, VerifyMe's stock has seen a 1-week price total return of -25.76% and a 1-month price total return of -53.26%. This context makes the share repurchase program particularly timely, as it may help stabilize the stock price and signal management's confidence in the company's intrinsic value.
Despite these challenges, VerifyMe maintains a strong liquidity position. An InvestingPro Tip notes that the company's liquid assets exceed its short-term obligations, which aligns with CEO Adam Stedham's comments on operational efficiency and the ability to fund the repurchase program through operational cash flow.
For investors seeking a more comprehensive analysis, InvestingPro offers 13 additional tips for VerifyMe, providing a deeper understanding of the company's financial health and market position.
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