VerifyMe, Inc. (NASDAQ:VRME), a technology solutions provider with a market capitalization of $7.66 million, has been notified by The Nasdaq Stock Market LLC of non-compliance with the exchange's minimum bid price requirement. According to InvestingPro data, the stock currently trades at $0.74, having experienced significant price volatility over the past year with a 52-week range of $0.58 to $2.45.
On Monday, December 27, 2024, the company received a letter from Nasdaq's Listing Qualifications Staff stating that VerifyMe's common stock had not met the minimum bid price of $1 per share over the last 30 consecutive business days, as required by Nasdaq Listing Rule 5550(a)(2).
The company, which trades under the ticker symbol NASDAQ:VRME, has been granted a 180-day compliance period, ending on June 25, 2025, to regain compliance.
Despite the current price challenges, InvestingPro analysis indicates the company maintains a healthy financial position with liquid assets exceeding short-term obligations and operates with a moderate debt level, as reflected in its debt-to-equity ratio of 0.24. During this period, if the common stock achieves a closing bid price of $1 or more for at least 10 consecutive business days, VerifyMe expects to regain compliance with the Nasdaq listing standards.
VerifyMe may be considered for an additional 180-day compliance period if it meets all other initial listing standards for the Nasdaq Capital Market, with the exception of the minimum bid price requirement, by the end of the first compliance period. The company would also need to inform Nasdaq of its intent to address the bid price deficiency.
The notification from Nasdaq does not immediately affect the listing of VerifyMe's common stock. However, if the company is unable to regain compliance, Nasdaq will issue a delisting notice, which VerifyMe would have the right to appeal before a Nasdaq hearings panel.
VerifyMe plans to monitor the bid price of its common stock and evaluate available options should the stock's closing bid price remain below the $1 threshold. The company's business address is 801 International Parkway, Fifth Floor, Lake Mary, Florida, and it was formerly known as LaserLock Technologies Inc.
This report on VerifyMe's current situation includes forward-looking statements, which are based on current expectations and projections about future events. The company cautions that actual results could differ materially from those anticipated due to various factors, including its ability to regain compliance with Nasdaq's listing standards.
For deeper insights into VerifyMe's financial health and future prospects, investors can access comprehensive analysis and 12 additional ProTips through InvestingPro's detailed research reports, which are available for over 1,400 US-listed companies.
The information in this article is based on a press release statement from VerifyMe, Inc.
In other recent news, VerifyMe, a computer integrated systems design company, has reported mixed financial results for the third quarter of 2024. The company saw a decrease in revenue to $5.4 million from $5.6 million in the previous year. The net loss for the quarter was $2.4 million, largely influenced by a $2.3 million goodwill impairment.
In a strategic move, VerifyMe sold its subsidiary, Trust Codes Global Limited, to streamline operations and focus on its core business offerings. The details of this transaction have been officially filed with the Securities and Exchange Commission.
Moreover, the company has extended its share repurchase program until December 31, 2025, allowing the repurchase of up to $500,000 of its common stock, a decision that is part of VerifyMe's broader strategy to deliver shareholder value.
Considering these developments, VerifyMe is planning a strategic shift, including an exit from its Amazon (NASDAQ:AMZN) Transparency partnership to concentrate on more profitable areas within the Authentication segment, such as ink products. The company aims to achieve adjusted EBITDA positivity by 2025, focusing on operational enhancements in Precision Logistics to improve shareholder value.
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