VerifyMe, Inc. (NASDAQ:VRME), a Nevada-based company specializing in computer integrated systems design, announced on Monday that its CEO and CFO have entered into Salary Reduction Agreements as part of a company-wide cost-saving initiative.
The agreements, effective July 2, 2024, involve a 10% cut in annual base salaries for CEO Adam Stedham and CFO Nancy Meyers. In exchange for the salary reduction, both executives will receive restricted stock unit awards (RSUs) on an annual basis, starting on July 1, 2024.
The number of RSUs awarded will be determined by dividing the projected amount of the respective executive's salary reduction for the year by $1.60, with the total number of shares rounded down to the nearest whole number. These RSUs, granted under the company's 2020 Equity Incentive Plan, will vest fully on January 1 of the year following their grant date and are payable shortly after vesting.
This decision comes as part of VerifyMe's efforts to streamline operations and is approved by the Compensation Committee of the Board of Directors. The Salary Reduction Agreements are set to last until December 31, 2025.
Should the agreements terminate early, or if Stedham or Meyers' employment ends for any reason other than a termination for cause, a pro-rata portion of the RSUs will vest. However, in the event of a termination for cause, any unvested RSUs will be forfeited.
The company's stock, VRME, and its warrants, VRMEW, are both traded on The Nasdaq Capital Market. The details of these agreements and the form RSU award agreement are documented in exhibits attached to the 8-K filing with the SEC, reflecting the company's commitment to transparency in its executive compensation arrangements.
This news is based on a recent SEC filing by VerifyMe, Inc.
In other recent news, VerifyMe Inc. has been active in revising its financial forecasts and reporting encouraging Q1 results. The company has adjusted its 2024 revenue growth expectations from double digits to mid-single digits due to the termination of a significant subcontract. Despite this, VerifyMe expects to exceed the gross margin percentage achieved in 2023.
In an earnings call, the company reported a positive start to 2024 with increased year-over-year revenue, significant improvements in gross profit, and a higher gross margin percentage. The company also indicated that it aims for double-digit top-line growth in both its Precision Logistics and authentication segments.
These are recent developments that reflect the dynamic nature of business strategies and customer relationships.
InvestingPro Insights
In light of VerifyMe's recent cost-saving measures, investors may find the following InvestingPro Insights helpful in assessing the company's financial health and stock performance. VerifyMe, Inc. (NASDAQ:VRME) currently holds a market capitalization of $13.64M and has exhibited high price volatility, which is an important consideration for risk-aware investors. The company's revenue for the last twelve months as of Q1 2024 stands at $25.41M, with a modest growth of 1.34%, indicating some level of stability in its operations. Additionally, the gross profit margin during this period is at 38.34%, reflecting a relatively healthy profitability on its sales.
However, investors should note that analysts do not expect the company to be profitable this year, as evidenced by a negative P/E ratio of -5.26. Moreover, the stock's performance has been challenged lately, with a 1-month price total return of -16.25%. On a more positive note, VerifyMe's liquid assets exceed short-term obligations, suggesting a degree of financial flexibility in meeting its immediate liabilities.
Those considering an investment in VerifyMe can explore further InvestingPro Tips, such as the company's debt levels and longer-term stock performance. There are additional tips listed on InvestingPro that can provide a deeper dive into VRME's financial metrics and analyst projections. For those interested in a comprehensive analysis, use the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription at InvestingPro.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.