VerifyMe, Inc. (NASDAQ:VRME) Q4 2022 Earnings Call Transcript

Keith Goldstein: Sure. So, with the new agreement with HP, there are now incentives that did not exist before for their solution architects and their sales teams to more proactively promote the VerifyMe solutions. So that’s going to be happening. Also, not to overplay the impacts of COVID, it — with that said, it still had a significant impact on the business. And now that everything is completely opened up, we are starting to go to global trade shows with HP Indigo around the world. So, those two things I think will help to grow and spur additional sales through the HP Indigo global sales team and solution architects.

Scott Greenberg: Thank you, Keith.

Keith Goldstein: Yes.

Scott Greenberg: Thanks Daniel. Moderator, why don’t we switch to the next caller at this point? So, everyone could participate.

Operator: Our next question will come from Russ Barnes with EPS . Please go ahead.

Unidentified Analyst: Hello, folks. Good morning. Thank you for taking my call. So, what can I do as an individual investor? I know that there is LinkedIn and I talk up the company, particularly VerifyMe. I don’t know about it these other companies. But what can I do as an individual to help, make this thing grow? I mean, it’s fantastic. When I first learned about it from Norman, fantastic product, I just surprised that thing hasn’t been scooped up by every country in the world. I think it’s great, but like I said, I’m one individual. I own a heating air conditioning company here in the Washington DC marketplace. And can this thing squeeze into a — onto a dollar bill? Can we go after the government in terms of putting your mark on a hundred dollars bill? What can I do to help out increase sales?

Scott Greenberg: Well, Russ, thanks for the question. I think the first thing is we have to help ourselves and we have to execute ourselves. And I understand it’s been a long history and a long road. But if you looked at where we are today, the product is much more enhanced with much more features than it was two or three years ago. Three years ago, while there was a lot of hope and prospects, the company needed these features in order to be successful. It needed all the things we’ve put together now. And that’s why you’re seeing the revenue growth. I know it’s not up to the level that was promised many years ago, but I think now you have a nice developing company with a solid foundation. When you say help, any introductions to customers at the highest levels, relationships shareholders have, relationships anybody has that we could have the ability to get a meeting set up to demonstrate what we have, would be greatly appreciated.

Unidentified Analyst: Okay. Thank you very much. Have a good day.

Scott Greenberg: Thank you. Thank you. Moderate, next question.

Operator: Our next question will come from Jeff Porter with Porter Capital . Please go ahead.

Unidentified Analyst: Hi, guys. Could you give us a sense of employee compensation structure, sort of what percentage of compensation is in options or restricted stock units and how those vest over time? Just like to get a sense of, are we all pulling together from the same team here, and are the employees motivated to help get the stock price up?

Scott Greenberg: Thank you, Jeff. One of the things that we’ve put in place in the last year or two was a similar approach that we had in my former company, GP Strategies, which is basically to align the stockholders with the executive team and employees of the company. So, the Board of Directors have historically taken all their compensation in restricted stock of the company, and have not pulled out any type of significant cash or working capital. So, the Board is aligned and — with the investors. A second plan that we put in place for the executive team, including myself, is that people get restricted stock grants, but the stock is not vesting over time. The stock is vests when the price hits certain levels for a period of time.

This is what we used my former company. And basically in order to earn your shares, the company has to approve, so the shareholders and the employees are aligned. Last year, the executive team got between 50% and 70% roughly — a percent of the — of their base salary in these type of shares, but they only earn the shares of this significant increase in the price of — and it can’t be one day, it has to be over, let’s say, 20-day period. And I think that that’s a way to align the investors, the shareholders, and the executive team.

Unidentified Analyst: Makes sense to me. Thanks.