Corporate Presentation - OTCQB: VRME February 2018 - VerifyMe
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Corporate Presentation OTCQB: VRME February 2018
FORWARD LOOKING STATEMENTS
FORWARD-LOOKING STATEMENTS
In addition to historical information, this presentation contains statements relating to the future business and financial performance and future events or
developments of VerifyMe, Inc. (the “Company”) that may constitute “forward-looking statements” within the meaning of the “safe harbor” provisions of
the United States Private Securities Litigation Reform Act of 1995. These statements are based on current expectations and assumptions that are subject to
certain risks and uncertainties. These statements include forward-looking statements with respect to the Company’s business and industry in general.
Statements that include the words “expect,” “intend,” “plan,” “believe,” “project,” “forecast,” “estimate,” “may,” “should,” “anticipate” and similar
statements of a future or forward-looking nature identify forward-looking statements for purposes of the federal securities laws or otherwise. While the
Company believes the forward-looking statements contained in this presentation are accurate, a variety of factors, many of which are beyond the
Company’s control, affect the Company’s operations, performance, business strategies, competitive position and results and there can be no assurance
that the Company’s actual results will not differ materially from those indicated in these statements. These factors include, but are not limited to, general
economic conditions; stock market fluctuations; uncertainty of future revenues; limited operating history; uncertain market acceptance for the
Company’s technology; potential difficulty in managing growth; costs of sales and materials; intellectual property protection; disclosure of trade secrets;
rapid technological change among competitors; dependence on suppliers; risks of doing international business; state, federal and foreign legislative and
regulatory initiatives, including costs of compliance with existing and future environmental requirements; costs and effects of legal and administrative
proceedings, settlements, investigations and claims; the inherent risks associated with the operation and potential construction of power generation
systems, including environmental, health, safety, regulatory and financial risks; the timing and extent of changes in commodity prices, interest rates and
foreign currency exchange rates; unusual maintenance or repairs and electric transmission system constraints; the performance of electric generation
facilities; and the need for and availability of future financing. More detailed information about these factors may be found in the Company’s filings with
the Securities and Exchange Commission, including its Annual Report on Form 10-K for the year ended December 31, 2016 and the Quarterly Report on
the Form 10-Q for the nine months ended September 30, 2017. The statements made herein speak only as of the date of this presentation. The Company
undertakes no obligation to update its forward-looking statements to reflect events or circumstances after the date of this presentation, except as
required by law.
This presentation shall not constitute an offer to sell or the solicitation of an offer to buy any securities of the Company, nor shall there be any sale of these
securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of
any such state or jurisdiction.
The information in this presentation is not complete and may be changed. Furthermore, this presentation shall not constitute an offer to sell, or the
solicitation of an offer to buy, nor will there be any sale of, securities in any state or other jurisdiction in which such offer, solicitation or sale would be
unlawful prior to the registration or qualification under the securities law of such state or other jurisdiction. Any offering will be made only by means of a
prospectus pursuant to a registration statement to be publicly filed with the Securities and Exchange Commission. You should read the prospectus,
including Risk Factors set forth and the documents that we file as exhibits to the registration statement, of which the prospectus is a part, completely and
with the understanding that our actual future results may be materially different from what we currently expect.
WWW.VERIFYME.COM 2
SIGNIFICANT GLOBAL CHALLENGES
Identifying, authenticating and verifying people, items, goods, food, drugs
– you name it -- has become increasingly needed in the global and digital
economies.
Ramifications of counterfeit items in the marketplace is also ever increasing
and now creating sizable liability issues for companies.
Bob Barcheisi,
President of the International Anti-Counterfeiting
Coalition (IACC)
"If you can make it, they'll fake it; the
litany of fakes includes cheap
smartphone batteries and chargers
that could overheat or catch fire;
substandard appliances ... knockoff
brand-name prescription drugs like
Cialis and Tamiflu, and substandard
auto parts.”
WWW.VERIFYME.COM 3
LARGE AND RAPDILY GROWING
ADDRESSABLE MARKETS
The Anti-Counterfeiting, Printing and Brand Protection, Multi-Factor Authentication (MFA), and Biometric
Systems Markets are projected to grow at CAGRs of 17.5%, 5.5%, 14.1% and 19.7% respectively, through the
end of the decade and into next decade1
Anti-Counterfeiting Markets Printing and Brand Protection Markets Multi-Factor Authentication & Biometric
(2014-2019) (2016-2026) Systems Markets
$30 (2014-2020)
$140 $50.0
Billions
Billions
Billions
$45.0
$120 $25
$40.0
$100 $20
$35.0
$80 $30.0
$15
$25.0
$60
$20.0 $10
$40 $15.0
$5
$10.0
$20
$5.0 $-
$- 2014 2015 2016 2017 2018 2019 2020
2014 2015 2016 2017 2018 2019 $-
Multi-Factor Authentication Market (19.67% CAGR)
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026
Biometric System Market (17.50% CAGR)
Anti Counterfeiting (14.10% CAGR) Printing and Brand Protection Market (5.5% CAGR)
1 Market data from Marketsandmarkets and smitherspira.com
WWW.VERIFYME.COM 4
COMPANY OVERVIEW
VerifyMe (VRME) is a pioneer in combining patented physical, cyber and biometric security solutions to prevent
identity theft, counterfeiting and fraud.
Focused on applications for physical and digital ID, authentication, and anti-counterfeiting
Leveraging established technological development and patent
portfolio to drive leverageable business model Physical
27 highly significant patents The identification or
Royalty-based and licensing business model authentication of physical goods,
which can include people,
Low corporate overhead
products or packaging.
Execution of turnaround story
New management and board in June 2017
Capital infusion by board cleaned up balance sheet with
no debt Digital & Biometric
The identification or
Significant new agreements to drive adoption authentication of any transaction
Signed agreement with Hewlett-Packard for integration of that is done via digital
VerifyMe technology into HP Indigo's ElectroInk. technologies.
Entered into reseller agreement with Micro Focus to create
a highly comprehensive track-and-trace authentication
system.
WWW.VERIFYME.COM 5
STRONG INTELLETCUAL PROPERTY
Physical Digital & Biometric
Security pigments expressed as inks & dyes Multi-factor authentication risk scoring & aggregation
Product and packaging consumer safety, track Live-ness detection & vulnerability management
& trace Learning capabilities that minimize false rejections
Document integrity, identification & tracking Environmental enhancement and noise reduction
Authentication devices – mobile, electronic & visual
6,483,576 7,725,732
7,627,532
Granted
Granted
6,672,718 7,519,558
7,599,859
6,813,011 8,024,269
7,568,222
6,861,012 6,032,137
7,565,326
7,939,239 5,910,988
7,546,276
8,551,683 5,121,440
6,341,272
9,250,660
Pending
Pending
14/212,757 14/010,085
14/184,195 14/014,339
14/028,131 14/016,032
14/079,513
14/079,536
WWW.VERIFYME.COM 6
PHYSICAL
IDENTIFICATION AND
AUTHENTICATION
WWW.VERIFYME.COM 7
PHYSICAL APPLICATIONS
Counterfeiting of goods has increased significantly on a global basis and
has become a major threat to brand owners in most industries.
Types of Physical
Identification &
Authentication
Security pigments
expressed as inks & dyes
Product and packaging
Printing & Packaging Consumer Pharmaceuticals Food & Beverages consumer safety, track &
Products trace
Document integrity,
identification & tracking
Authentication devices –
mobile, electronic &
visual
Auto/Plane Parts Luxury Goods ID Cards
WWW.VERIFYME.COM 8
INDUSTRY STATISTICS: PHYSICAL AUTHENTICATION
$1.22 billion $461 billion
Total value of Intellectual Property Rights (“IPR”)-infringing goods seized, Estimated global trade related counterfeiting.4
originating from China in 2014.1
$20 billion $107.26 billion
Estimated annual worldwide “take” from counterfeit drugs.2
Global anti-counterfeit packaging market.5
$10-15 billion
Estimated impact of fake food due to product laundering, dilution, &
intentionally false labeling.3 1 According to the International Anti-counterfeiting Coalition (“IPR”).
2 According to the World Health Organization (“WHO”).
3 According to the National Center for Food Protection and Defense.
4 According to the Organization for Economic Cooperation and Development published in 2016.
5 Based on a report by marketsandmarkets.com.
WWW.VERIFYME.COM 9
VRME AUTHENTICATION SOLUTIONS FOR
PHYSICAL GOODS
VerifyMe has a portfolio of anti-counterfeiting solutions
RainbowSecure™ SecureLight™ SecureLight+™
WWW.VERIFYME.COM 10HEWLETT-PACKARD CONTRACT
HP/VERIFYME CONTRACT
Signed Sept. 2017
Contract to Use VerifyMe RainbowSecure™ Technology
in HP Digital Presses
HP Indigo press owners or brand owners pay a per click
charge to VerifyMe
5 Year Contract
Global Coverage
Potential value of more than $25 million per year
70%+ Margin
Sales cycle to add new customers: 4-12 months
WWW.VERIFYME.COM 11RAPID ACCESS TO HP CUSTOMER BASE
HP’s 4,500+ Printing
Customers have
seamless capability
to incorporate
VerifyMe highly effective
RainbowSecure™ authentication to
Ink canisters with
proprietary pigment any label, packaging
mounted into the Digital or document.
Indigo press along with
the other ink stations.
WWW.VERIFYME.COM 12LEVERAGING HP CUSTOMER BASE
Consumer Documents of Product Diversion Financial Services
Product Security Homeland Security Gaming Tracking & Products
Value
• Pharmaceuticals • Currencies • Passports or ID • Online Gaming • Pharmaceuticals • Consumer Login
• Luxury Goods • Stock Certificates Cards Sites • Apparel/Licensed Credentials
• Tobacco & Alcohol & Bonds • Driver’s Licenses • Casino Chips & Merchandise • Online
Products • Event Tickets • Visas Dice • Cosmetics & Transaction
• Auto & Aviation • Lottery Tickets
• Container Seals • Playing Cards Fragrances Approval
Parts
• Pallet Security • E-Proms/Critical • Watches & • Credit Cards
Memory Devices Jewelry • Bank Checks
• Lottery Tickets • Financial
Docs/Promissory
Notes
Agreement with HP offer direct access to most market segments
WWW.VERIFYME.COM 13RESELLER AGREEMENT WITH MICRO FOCUS
MICRO FOCUS/VERIFYME
RESELLER AGREEMENT
Signed Jan. 2018
Agreement combines VerifyMe
RainbowSecure and SecureLight™ covert
ink technologies with Micro Focus’ Global
Product Authentication Service
Creates one of the most powerful, secure
and comprehensive track-and-trace
authentication systems in the world
Micro Focus is #7 largest software
company in the world
Global opportunity
WWW.VERIFYME.COM 14DIGITAL & BIOMETRIC
IDENTIFICATION AND
AUTHENTICATION
WWW.VERIFYME.COM 15TARGETED INDUSTRIES FOR DIGITIAL & BIOMETRIC
IDENTIFICATION AND AUTHENTICATION
There are unlimited digital applications, but initially, VerifyMe will be focused on five
specific large markets using its biometric identifying technologies:
Types of Digital &
Biometric Identification
and Authentication
Multi-factor
Subscription Financial Physical Access
authentication risk scoring
Services Services Control & aggregation
Live-ness detection &
vulnerability
management
Learning capabilities that
minimize false rejections
Environmental
enhancement and noise
reduction
Social Media Verification Online Gaming
WWW.VERIFYME.COM 16INDUSTRY STATISTICS: DIGITAL & BIOMETRIC
$16 Billion
Stolen from 12.7 million U.S
consumers in 20141
$10.6 Billion
Total Spend on Biometric
Authentication in 2016
Expected to grow to $41.4
Billion by 2025, a CAGR of
17%2
1 According to a 2015 Identity Fraud Study released
by Javelin Strategy & Research.
2 As prepared by INKWPPD Research
WWW.VERIFYME.COM 17Smartphone Adoption Enabling Biometrics
Usage
Smartphones are now treated as all-in-one device,
suitable for every purpose and is expected to become the
next big market for biometric identification. In CY18,
approximately
The combination of biometrics and smartphones is bound
to fundamentally change access control, financial 3 out of 4
transaction authentication, personal data security, and smartphones
many other areas of our lives. will be
Key industry players like Apple and Microsoft already equipped with
started using biometric technology on their products. a fingerprint
• Apple integrates biometric technology on their sensor.
products.
• Microsoft has integrated fingerprints and IRIS
recognition system in Windows 10.
WWW.VERIFYME.COM 18VERIFYME DIGITAL ID SERVICES THROUGH THE
USE OF BIOMETRICS
VerifyMe ID Services- Simple & Secure
VerifyMe™ ID Services replaces passwords and PINs with intuitive, user-friendly, multi—factor
authentication.
Authenticates unique, live user identity, incorporating biometrics, GPS and other patented
authentication methodologies.
Protects your customers privacy and the integrity of your brand.
Swipe pattern recognition & Facial recognition, fingerprint, Highly accurate location detection
personal color selection voice, & retina scanning & verification
WWW.VERIFYME.COM 19BIOMETRIC SCREENING WWW.VERIFYME.COM 20
VIBRANT DIGITAL & BIOMETRIC
AUTHENTICATION MARKET
Any transaction or action which requires authentication of an individual is a potential opportunity
for a strong multi-factor solution.
Global Multifactor Authentication Market
$12.0
$10.0 $9.6 10%
$ in billions
$8.0
$6.0
90%
$4.0 $3.6
$2.0
$0.0
2014 2020 Two Factor
Three- Four- Five Factor
WWW.VERIFYME.COM 21PATHWAY TO GROWTH WWW.VERIFYME.COM 22
COMMERCIALIZATION STRATEGY
Leverage distribution agreement with HP to drive adoption of
physical authentication within key market vertical customer
base:
HP established customer base allows for rapid adoption of VerifyMe
technology
VerifyMe has access to HP Indigo’s entire customer base, including in-
house corporate printing and 3rd party print house
VerifyMe is paid on every document printed
Co-market with Micro Focus best ‘track-and-traceable’
authentication system
Develop parallel agreements with additional printing
technology companies
Establish digital & biometric agreements where multi-factor
authentication is critical
Enforce patent portfolio
VerifyMe patent portfolio potential being infringed upon by numerous
digital authentication technologies
WWW.VERIFYME.COM 23CAPITALIZATION CHART
Current Percent of
Common Fully
Share Diluted
Outstanding Equivalent Outstanding
Common Shares 49,297,957 49,297,957 40.2%
Preferred A 344,778 6,895,569 5.6%
Preferred B 1 7,821,749 6.4%
Stock Options 22,013,530 22,013,530 17.9%
Warrants- average strike of $0.12 36,694,498 36,694,498 29.9%
Total fully diluted 122,723,303 100.0%
Includes Oct 1 private sale of 1,430,000 shares and warrants
WWW.VERIFYME.COM 24MANAGEMENT TEAM
Norman Gardner Patrick White Jay Cardwell Keith Goldstein Sandy Fliderman
Chairman of the Chief Executive Officer Chief Financial Officer Chief Operating Officer Chief Technology Officer
Board and Founder
CEO/Founder of 35 years of 25-year industry Software
Chief Inventor of Document Security experience in veteran management
Company’s core Systems (NYSE: DSS) accounting and Recently served as veteran with 22-
technologies Former member of the finance CEO of ABnote years industry
U.S. Secret Services, CPA North America, a experience
Document Security Several executive major division of Previously was CIO
Alliance roles in public American at VEEDIMS, LLC,
Holder of 3 U.S. patents for and private Banknote Corp. an Internet of
digital security companies Things technology
technologies company
WWW.VERIFYME.COM 25BOARD OF DIRECTORS
Norman Gardner Marshall Geller*
Chairman of the Board Senior Advisor to St. Cloud, a
Founder of VerifyMe & holder Los Angeles-based PE firm
of several key patents
Howard Goldberg*
Claudio Ballard Private Investor
U.S. IP Patent Monetization Expert
Key Inventor of VRME’s Digital Technology
2010 Inventor of the Year by U.S. Business and Larry Schafran
Industry Council Noted specialist in mergers
and acquisitions
Carl E. Berg
Renown Venture Capital and
Real Estate Investor and
Patrick White*
Businessman President and CEO of VerifyMe
Laurence Blickman*
Senior Managing Director,
Institutional Investments at
Cushman & Wakefield
*Denotes board members appointed August 2017 as part of recapitalization plan, of which several participated and in aggregate (along with associates) invested
$1.5 million towards the plan.
WWW.VERIFYME.COM 26INVESTMENT HIGHLIGHTS
New and experienced Strong & diverse IP portfolio is
management team to drive the cornerstone of VerifyMe
technology adoption
Large and rapidly expanding
New HP and Micro Focus market opportunities in both
agreements allows for highly physical and digital &
scalable business model and biometric authentication
large potential customer markets
base
Recent cash infusion by Lean corporate structure
board providing platform to allows for leverageable
execute business plans economics
WWW.VERIFYME.COM 27You can also read
