VerifyMe, Inc. Completes Sale of Equity Interest in Trust Codes Global Limited

On December 8, 2024, VerifyMe, Inc. (NASDAQ: VRME) finalized an agreement with Paul Ryan, the Buyer, who formerly served as Executive Vice President of the Authentication Segment and was employed by Trust Codes Global Limited, a subsidiary of the Company. This agreement involved the sale of 100% of VerifyMe’s equity interest in Trust Codes Global Limited in exchange for approximately NZD $1 in cash. As part of the transaction, the Buyer assumed all ongoing obligations and liabilities of Trust Codes Global Limited.

Following this development, VerifyMe, Inc. submitted unaudited pro forma financial information to the Securities and Exchange Commission (SEC) in accordance with Rule 11-02(b) of Regulation S-X. The pro forma financial information comprises the Unaudited Pro Forma Consolidated Statement of Operations for the year ended December 31, 2023, and the nine months ended September 30, 2024. Due to a limited number of pro forma adjustments required, a pro forma balance sheet was omitted, with a narrative description of the effects of the sale provided in the accompanying notes.

The adjustments presented in the financial statements were based on the assumption that the sale of Trust Codes Global Limited occurred on January 1, 2023. These adjustments, directly attributable to the sale, factually supportable, and expected to have a continued impact on VerifyMe’s consolidated results, enabled the Company to provide a clearer representation of its financial position post-transaction.

Furthermore, the Company furnished detailed explanations for notable adjustments, including one-time professional fees from acquisition, change in the fair value of contingent consideration, and impairments. These adjustments aimed to delineate between ongoing operational costs and specific financial impacts stemming from the sale of Trust Codes Global Limited.

VerifyMe, Inc.’s strategic move in divesting its equity interest in Trust Codes Global Limited marks a significant development for the company. The provided unaudited pro forma financial information offers investors and stakeholders additional insights into how this decision will shape VerifyMe’s financial landscape moving forward.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read VerifyMe’s 8K filing here.

VerifyMe Company Profile

VerifyMe, Inc, together with its subsidiary, PeriShip Global, LLC, operates as a technology solutions provider that specializes in products to connect brands with consumers and providing brands with end-to-end logistics management for their products. The company operates through two segments, VerifyMe Solutions and PeriShip Global Solutions.