|
|
☒
|
ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934.
|
☐
|
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934.
|
|
|
Nevada
|
|
23-3023677
|
(State or Other Jurisdiction of
Incorporation or Organization)
|
|
(IRS Employer
Identification No.)
|
Large accelerated filer
|
|
☐
|
|
Accelerated filer
|
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☐
|
|
|
|
|
|
||||
Non-accelerated filer
|
|
☐
(Do not check if a smaller reporting company)
|
|
Smaller reporting company
|
|
☒
|
|
Emerging Growth
Company |
☐ |
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Page
|
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PART I
|
|
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|
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Item 1.
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4
|
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Item 1A.
|
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24
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Item 1B.
|
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24
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Item 2.
|
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24
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Item 3.
|
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24
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Item 4.
|
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24
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||
PART II
|
|
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Item 5.
|
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25
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Item 6.
|
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26
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Item 7.
|
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27
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Item 7A.
|
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38
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Item 8.
|
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38
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Item 9.
|
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39
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Item 9A.
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39
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Item 9B.
|
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40
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||
PART III
|
|
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Item 10.
|
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40
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Item 11.
|
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40
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Item 12.
|
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40
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Item 13.
|
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40
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Item 14.
|
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40
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|
|
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|
||
PART IV
|
|
|
|
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Item 15.
|
|
40
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|
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Item 16.
|
41 |
• |
Coding & printing technology (Track and Trace)
|
• |
RFID
|
• |
Hologram
|
• |
Security labels
|
• |
Packaging design
|
• |
Others (digital mass sterilization, digital mass encryption, and surveillance technologies)
|
• |
Coding
|
• |
Printing technology (Identifiers)
|
• |
Radio Frequency Identification (“RFID”)
|
• |
Hologram
|
• |
Security labels
|
• |
Packaging design
|
• |
Others (digital mass sterilization, digital mass encryption, and surveillance technologies)
|
• |
Passports;
|
• |
Permanent resident, or “green” cards and visas;
|
• |
Drivers’ Licenses;
|
• |
Social Security cards;
|
• |
Military identification cards;
|
• |
National transportation cards;
|
• |
Security cards for access to sensitive physical locations; and
|
• |
other important identity cards, official documents and security-related cards.
|
· |
RainbowSecure™
|
· |
SecureLight™
|
· |
SecureLight+™
|
· |
Authentication tools
|
· |
VeriPAS
tm
Global Product Identifier, Track and Trace System
|
· |
Cryptocurrencies
|
· |
Blockchain Authentication
|
· |
Corporate Networks
|
· |
Digital Drop Box Access
|
· |
Physical Access
|
· |
Banking
|
· |
Financial Transaction Services
|
· |
Medical
|
· |
Gaming
|
· |
Retail
|
· |
Notary
|
· |
Digital Wallets
|
· |
Legal
|
· |
Government (e-gov services)
|
· |
Military
|
· |
Pharmaceutical
|
· |
Immigration
|
· |
Entertainment
|
· |
Social Media
|
· |
Mobile Payments
|
· |
Subscription services
|
· |
Employee Time Systems
|
· |
Subscription services market, where revenue is commonly lost due to multiple individuals sharing user credentials to access information and services;
|
· |
Online gaming market, where financial transactions are performed and geo-location is very important to maintaining compliance with state/country regulations;
|
· |
Financial services market, where there is a large financial risk to identity theft and fraud, including banking, purchases, mobile payments, and digital wallets
|
· |
Access control market, where the identity of individuals is key to allow access to buildings as well as digital access to data
|
· |
Social Media Market to identify people versus robots or imposters
|
• |
Available to be white-labeled and integrated into existing digital platforms;
|
• |
Non-Stop, audited, monitored, private cloud service;
|
• |
Three independent, fault tolerant, redundant data centers;
|
• |
Global load balancing and traffic management;
|
• |
High level commercial API’s can be integrated in hours; and
|
• |
Complete audit information, including fresh biometrics.
|
· |
Pharmaceuticals
|
· |
Food
|
· |
Beverages
|
· |
Luxury goods
|
· |
Cosmetics
|
· |
Alcohol
|
· |
Auto parts
|
· |
Aviation parts
|
· |
Any other label/ packaging requirements
|
· |
Currency
|
· |
Stock certificates and bonds
|
· |
Event tickets
|
· |
Lottery tickets
|
· |
Passports
|
· |
ID cards
|
· |
Driver’s licenses
|
· |
Visas
|
· |
Container seals
|
· |
Pallet security
|
· |
Uniforms
|
· |
Weapons
|
· |
Ammunition
|
· |
Pharmaceuticals
|
· |
Apparel/licensed merchandise
|
· |
Cosmetics and fragrances
|
· |
Watches and jewelry
|
· |
Consumer login credentials
|
· |
Online transaction approval
|
· |
Credit cards
|
· |
Bank checks
|
· |
Financial documents/promissory notes
|
• |
product performance, features and liability;
|
• |
price; new laws and regulations;
|
• |
product innovation and timing of new product introductions;
|
• |
ability to develop, maintain and protect proprietary products and technologies;
|
• |
sales and distribution capabilities;
|
• |
technical support and service;
|
• |
brand loyalty;
|
• |
applications support; and
|
• |
breadth of product line.
|
Fiscal Year Ended December 31, 2017
|
High
|
Low
|
||||||
Quarter ended March 31, 2017
|
$
|
0.15
|
$
|
0.06
|
||||
Quarter ended June 30, 2017
|
$
|
0.12
|
$
|
0.046
|
||||
Quarter ended September 30, 2017
|
$
|
0.15
|
$
|
0.035
|
||||
Quarter ended December 31, 2017
|
$
|
0.27
|
$
|
0.06
|
Fiscal Year Ended December 31, 2016
|
High
|
Low
|
||||||
Quarter ended March 31, 2016
|
$
|
2.50
|
$
|
0.435
|
||||
Quarter ended June 30, 2016
|
$
|
0.75
|
$
|
0.09
|
||||
Quarter ended September 30, 2016
|
$
|
0.44
|
$
|
0.07
|
||||
Quarter ended December 31, 2016
|
$
|
0.39
|
$
|
0.10
|
• |
Our failure to generate increasing material revenues;
|
• |
Cancellation of key contracts;
|
• |
Regulatory changes including new laws and rules which adversely affect companies in our line of business;
|
• |
Our public disclosure of the terms of any financing which we consummate in the future;
|
• |
Our failure to become profitable;
|
• |
Our failure to raise working capital;
|
• |
Any acquisitions we may consummate;
|
• |
Announcements by us or our competitors of significant contracts, new services, acquisitions, commercial relationships, joint ventures or capital commitments;
|
• |
Changes in our management;
|
• |
Our failure to meet financial forecasts we or broker-dealers publicly disclose;
|
• |
The sale of large numbers of shares of common stock which we may register in the future;
|
• |
Short selling activities; or
|
• |
Changes in market valuations of similar companies.
|
|
|
|
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|
|
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|
|
Filed or
|
|
|
|
|
Incorporated by Reference
|
|
Furnished
|
||||
Exhibit No.
|
|
Exhibit Description
|
|
Form
|
|
Date
|
|
Number
|
|
Herewith
|
3.1(i)
|
|
|
10-Q
|
|
August 19, 2015
|
|
3.1
|
|
||
3.2(ii)
|
|
|
8-K
|
|
August 15, 2017
|
|
3.1
|
|
||
4.1
|
|
|
8-K
|
|
June 18, 2015
|
|
3.2
|
|
||
4.2
|
|
|
8-K
|
|
June 18, 2015
|
|
3.3
|
|
||
10.1
|
|
|
10-K
|
|
April 12, 2017
|
|
10.15
|
|
||
10.2
|
|
|
10-K
|
|
April 12, 2017
|
|
4.2
|
|
||
10.3
|
|
|
8-K
|
|
November 20, 2017
|
|
10.1
|
|
||
10.4
|
|
|
8-K
|
|
May 31, 2017
|
|
10.1
|
|
||
10.5
|
|
|
10-Q
|
|
May 15, 2017
|
|
10.1
|
|
||
10.6
|
|
|
10-Q
|
|
May 15, 2017
|
|
10.2
|
|
||
10.7
|
|
|
10-Q
|
|
May 15, 2017
|
|
10.3
|
|
||
10.8
|
|
|
10-Q
|
|
May 15, 2017
|
|
10.4
|
|
||
10.9
|
|
|
10-Q
|
|
May 15, 2017
|
|
10.5
|
|
||
10.10
|
|
|
10-Q
|
|
May 15, 2017
|
|
10.6
|
|
||
10.11
|
|
|
10-Q
|
|
May 15, 2017
|
|
10.7
|
|
||
10.12
|
|
|
10-Q
|
|
May 15, 2017
|
|
10.8
|
|
||
10.13
|
|
|
10-Q
|
|
May 15, 2017
|
|
10.9
|
|
10.14
|
|
|
8-K
|
|
May 1, 2017
|
|
10.1
|
|
|
|
10.15
|
|
|
8-K
|
|
May 1, 2017
|
|
10.2
|
|
|
|
10.16
|
|
|
8-K
|
|
February 10, 2016
|
|
10.1
|
|
|
|
10.17
|
|
|
|
|
|
|
|
|
Filed
|
|
10.1
8
|
|
|
|
|
|
|
|
|
Filed
|
|
10.
19
|
|
|
|
|
|
|
|
|
Filed
|
|
10.2
0
|
|
|
|
|
|
|
|
|
Filed
|
|
10.2
1
|
|
|
|
|
|
|
|
|
Filed
|
|
10.2
2
|
|
|
8-K
|
|
June 18, 2015
|
|
10.6
|
|
|
|
10.2
3
|
|
|
8-K
|
|
June 18, 2015
|
|
10.7
|
|
|
|
10.2
4
|
|
|
8-K
|
|
April 29, 2016
|
|
10.1
|
|
|
|
10.2
5
|
|
|
8-K
|
|
April 29, 2016
|
|
10.2
|
|
|
|
10.2
6
|
|
|
8-K
|
|
April 29, 2016
|
|
10.3
|
|
|
|
10.2
7
|
|
|
8-K
|
|
May 2, 2016
|
|
10.1
|
|
|
|
10.2
8
|
|
|
|
|
|
|
|
|
Filed
|
|
10.
29
|
|
|
|
|
|
|
|
|
Filed
|
|
10.3
0
|
|
|
|
|
|
|
|
|
Filed
|
|
10.3
1
|
|
|
|
|
|
|
|
|
Filed
|
|
10.3
2
|
|
|
|
|
|
|
|
|
Filed
|
|
16.1
|
|
|
8-K
|
|
December 1, 2017
|
|
16.1
|
|
|
|
31.1
|
|
|
|
|
|
|
|
|
Filed
|
|
31.2
|
|
|
|
|
|
|
|
|
Filed
|
|
32.1
|
|
|
|
|
|
|
|
|
Furnished**
|
|
101.INS
|
|
XBRL Instance Document
|
|
|
|
|
|
|
|
Filed
|
101.SCH
|
|
XBRL Taxonomy Extension Schema Document
|
|
|
|
|
|
|
|
Filed
|
101.CAL
|
|
XBRL Taxonomy Extension Calculation Linkbase Document
|
|
|
|
|
|
|
|
Filed
|
101.DEF
|
|
XBRL Taxonomy Extension Definition Linkbase Document
|
|
|
|
|
|
|
|
Filed
|
101.LAB
|
|
XBRL Taxonomy Extension Label Linkbase Document
|
|
|
|
|
|
|
|
Filed
|
101.PRE
|
|
XBRL Taxonomy Extension Presentation Linkbase Document
|
|
|
|
|
|
|
|
Filed
|
*
|
Management contract or compensatory plan or arrangement.
|
**
|
This exhibit is being furnished rather than filed and shall not be deemed incorporated by reference into any filing, in accordance with Item 601 of Regulation S-K.
|
|
|
|
|
|
VerifyMe, Inc.
|
|
|
|
|
|
|
|
By:
|
/s/ Patrick White
|
|
|
|
Patrick White
Chief Executive Officer
|
|
|
|
Date: April 16, 2018
|
|
|
|
|
|
|
Signature
|
|
Title
|
|
Date
|
|
|
|
|
|
/s/ Patrick White
|
|
Chief Executive Officer
|
|
April 16, 2018
|
Patrick White
|
|
(
Principal Executive Officer
)
|
|
|
|
|
|
|
|
Signature
|
|
Title
|
|
Date
|
|
|
|
|
|
/s/ James S. Cardwell
|
|
Chief Financial Officer
|
|
April 16, 2018
|
James S. Cardwell
|
|
(
Principal Financial Accounting
Officer ) |
|
|
Signature
|
|
Title
|
|
Date
|
|
|
|
|
|
/s/ Norman Gardner
|
Chairman of the Board
|
|
April 16, 2018
|
|
Norman Gardner
|
|
|
|
|
|
|
|
|
|
Signature
|
|
Title
|
|
Date
|
|
|
|
|
|
/s/ Carl Berg
|
|
Director
|
|
April 16, 2018
|
Carl Berg
|
|
|
|
|
Signature
|
|
Title
|
|
Date
|
|
|
|
|
|
/s/ Lawrence Schafran
|
|
Director
|
|
April 16, 2018
|
Lawrence Schafran
|
|
|
|
|
|
|
|
|
|
Signature
|
|
Title
|
|
Date
|
|
|
|
|
|
/s/Laurence Blickman
|
Director
|
|
April 16, 2018
|
|
Laurence Blickman
|
|
|
|
|
|
|
|
|
|
Signature
|
|
Title
|
|
Date
|
|
|
|
|
|
/s/ Howard Goldberg
|
|
Director
|
|
April 16, 2018
|
Howard Goldberg
|
|
|
|
|
|
PAGE
|
|
|
|
|
|
|
F-1
|
|
|
|
|
|
|
|
F-2
|
|
|
|
|
|
|
|
F-3
|
|
|
|
|
|
|
|
F-4
|
|
|
|
|
|
|
|
F-5
|
|
|
|
|
|
|
|
F-6 to F-28
|
|
|
Year Ended
|
|||||||
|
December 31, 2017
|
December 31, 2016
|
||||||
|
||||||||
|
||||||||
NET REVENUE
|
||||||||
Sales
|
$
|
-
|
$
|
37,055
|
||||
TOTAL NET REVENUE
|
-
|
37,055
|
||||||
|
||||||||
COST OF SALES
|
-
|
24,363
|
||||||
|
||||||||
GROSS PROFIT
|
-
|
12,692
|
||||||
|
||||||||
OPERATING EXPENSES
|
||||||||
General and administrative (a)
|
1,689,883
|
1,010,648
|
||||||
Legal and accounting
|
246,520
|
414,032
|
||||||
Payroll expenses (a)
|
767,257
|
1,789,303
|
||||||
Research and development
|
128,044
|
250,180
|
||||||
Sales and marketing
|
3,800
|
282,867
|
||||||
Total Operating expenses
|
2,835,504
|
3,747,030
|
||||||
|
||||||||
LOSS BEFORE OTHER INCOME (EXPENSE)
|
(2,835,504
|
)
|
(3,734,338
|
)
|
||||
|
||||||||
OTHER (EXPENSE) INCOME
|
||||||||
Interest expenses
|
(218,316
|
)
|
(12,871
|
)
|
||||
Loss on settlement of related party notes payable
|
(331,912
|
)
|
-
|
|||||
Other income
|
392
|
-
|
||||||
Loss on disposition of fixed assets
|
-
|
(4,981
|
)
|
|||||
Change in fair value of warrants
|
-
|
3,357,149
|
||||||
Change in fair value of embedded derivative liability
|
-
|
698,303
|
||||||
Fair value of warrants in excess of consideration for convertible preferred stock
|
-
|
(1,949,517
|
)
|
|||||
|
(549,836
|
)
|
2,088,083
|
|||||
|
||||||||
NET LOSS
|
$
|
(3,385,340
|
)
|
$
|
(1,646,255
|
)
|
||
|
||||||||
Deemed dividend on convertible preferred shares
|
(596,878
|
)
|
-
|
|||||
|
||||||||
NET LOSS ATTRIBUTABLE TO COMMON SHAREHOLDERS
|
$
|
(3,982,218
|
)
|
$
|
(1,646,255
|
)
|
||
|
||||||||
LOSS PER SHARE
|
||||||||
BASIC
|
$
|
(0.14
|
)
|
$
|
(0.24
|
)
|
||
DILUTED
|
$
|
(0.14
|
)
|
$
|
(0.24
|
)
|
||
|
||||||||
WEIGHTED AVERAGE COMMON SHARE OUTSTANDING
|
||||||||
BASIC
|
28,244,361
|
6,860,955
|
||||||
DILUTED
|
28,244,361
|
6,860,955
|
(a) |
Includes share based compensation of $1,800,181 and $1,405,877 for the years ended December 31, 2017 and 2016, respectively.
|
Series A
|
Series B
|
Series C
|
Series D
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Convertible
|
Convertible
|
Convertible
|
Convertible
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Preferred
|
Preferred
|
Preferred
|
Preferred
|
Common
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock
|
Stock
|
Stock
|
Stock
|
Stock
|
Additional
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||
Number of
|
Number of
|
Number of
|
Number of
|
Number of
|
Paid-In
|
Treasury
|
Deferred
|
Accumulated
|
||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares
|
Amount
|
Amount
|
Shares
|
Amount
|
Shares
|
Amount
|
Shares
|
Amount
|
Capital
|
Stock
|
Compensation
|
Deficit
|
Total
|
|||||||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2015
|
441,938
|
$
|
442
|
1.00
|
$
|
-
|
-
|
-
|
5,977,030
|
$
|
5,977
|
$
|
39,779,414
|
$
|
(113,389
|
)
|
$
|
(1,842,334
|
)
|
$
|
(39,998,290
|
)
|
$
|
(2,168,180
|
)
|
|||||||||||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Conversion of Series A Convertible Preferred Stock
|
(44,160
|
)
|
(44
|
)
|
-
|
-
|
-
|
-
|
883,200
|
883
|
(839
|
)
|
-
|
-
|
-
|
-
|
||||||||||||||||||||||||||||||||||||||||||||
Conversion of Series B Convertible Preferred Stock
|
(0.08
|
)
|
-
|
-
|
-
|
647,983
|
675
|
(675
|
)
|
-
|
-
|
-
|
-
|
|||||||||||||||||||||||||||||||||||||||||||||||
Sale of Series C Convertible Preferred Stock
|
3,087,500
|
3,088
|
-
|
1,231,912
|
-
|
-
|
-
|
-
|
-
|
1,235,000
|
||||||||||||||||||||||||||||||||||||||||||||||||||
Stock issuance costs
|
(17,500
|
)
|
-
|
-
|
-
|
-
|
-
|
(17,500
|
)
|
|||||||||||||||||||||||||||||||||||||||||||||||||||
Conversion of Series C Convertible Preferred Stock
|
(1,175,000
|
)
|
(1,175
|
)
|
166,750
|
167
|
1,175,000
|
1,175
|
-
|
-
|
-
|
-
|
-
|
|||||||||||||||||||||||||||||||||||||||||||||||
Stock on embedded derivative liability
|
350,500
|
350,500
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Sale of Series D Convertible Preferred Stock
|
-
|
-
|
-
|
-
|
-
|
-
|
66,533
|
-
|
-
|
-
|
66,700
|
|||||||||||||||||||||||||||||||||||||||||||||||||
Deemed dividend distribution
|
-
|
-
|
-
|
-
|
-
|
-
|
(1,277,521
|
)
|
-
|
-
|
-
|
(1,277,521
|
||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of stock for services
|
-
|
-
|
-
|
-
|
-
|
-
|
32,983
|
33
|
20,742
|
-
|
-
|
-
|
20,775
|
|||||||||||||||||||||||||||||||||||||||||||||||
Issuance of restricted stock for services
|
-
|
-
|
-
|
-
|
-
|
-
|
40,000
|
40
|
(40
|
)
|
-
|
-
|
-
|
-
|
||||||||||||||||||||||||||||||||||||||||||||||
Forfeiture of restricted stock units
|
-
|
-
|
-
|
-
|
-
|
-
|
(452,500
|
)
|
(452
|
(1,069,256
|
)
|
-
|
1,069,708
|
-
|
-
|
|||||||||||||||||||||||||||||||||||||||||||||
Warrants issued in conjunction with notes payable
|
-
|
-
|
-
|
-
|
-
|
-
|
69,500
|
-
|
-
|
-
|
69,500
|
|||||||||||||||||||||||||||||||||||||||||||||||||
Fair value of stock options and warrants
|
-
|
-
|
1,405,877
|
-
|
-
|
-
|
1,405,877
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||
Decrease in fair value of restricted stock units
|
-
|
-
|
(89,375
|
)
|
-
|
89,375
|
-
|
-
|
||||||||||||||||||||||||||||||||||||||||||||||||||||
Amortization of deferred compensation
|
-
|
-
|
-
|
-
|
683,251
|
-
|
683,251
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||
Net loss
|
-
|
-
|
-
|
(1,646,255
|
)
|
(1,646,255
|
)
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2016
|
397,778
|
398
|
0.92
|
1,912,500
|
1,913
|
166,750
|
167
|
8,330,696
|
8,331
|
40,469,272
|
(113,389
|
)
|
(41,644,545
|
)
|
(1,277,853
|
)
|
||||||||||||||||||||||||||||||||||||||||||||
Cumulative adjustment related to change in accounting principle (Note 1, Change in Accounting Principle)
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
11,924,665
|
-
|
(11,301,203
|
)
|
623,462
|
|||||||||||||||||||||||||||||||||||||||||||||
Adjusted balance at January 1, 2017
|
397,778
|
398
|
0.92
|
-
|
1,912,500
|
1,913
|
166,750
|
167
|
8,330,696
|
8,331
|
52,393,937
|
(113,389
|
)
|
-
|
(52,945,748
|
)
|
(654,391
|
)
|
||||||||||||||||||||||||||||||||||||||||||
Conversion of Series A Convertible Preferred Stock
|
(73,000
|
)
|
(73
|
)
|
-
|
-
|
-
|
-
|
-
|
-
|
1,460,000
|
1,460
|
(1,387
|
)
|
-
|
-
|
-
|
-
|
||||||||||||||||||||||||||||||||||||||||||
Conversion of Series C Convertible Preferred Stock
|
-
|
-
|
-
|
(1,912,500
|
)
|
(1,913
|
)
|
-
|
-
|
4,767,858
|
4,768
|
(2,855
|
)
|
-
|
-
|
-
|
-
|
|||||||||||||||||||||||||||||||||||||||||||
Conversion Preferred C - Warrants
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
6,175,000
|
6,175
|
(6,175
|
)
|
-
|
|||||||||||||||||||||||||||||||||||||||||||||||
Conversion of Series D Convertible Preferred Stock
|
-
|
-
|
-
|
-
|
-
|
-
|
(166,750
|
)
|
(167
|
)
|
496,429
|
496
|
(329
|
)
|
-
|
-
|
-
|
-
|
||||||||||||||||||||||||||||||||||||||||||
Conversion Preferred D - Warrants
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
1,985,716
|
1,986
|
(1,986
|
)
|
-
|
|||||||||||||||||||||||||||||||||||||||||||||||
Sale of common stock
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
19,451,575
|
19,452
|
1,340,798
|
-
|
-
|
-
|
1,360,250
|
|||||||||||||||||||||||||||||||||||||||||||||
Sale of common stock - Past issuances
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
503,432
|
503
|
(503
|
)
|
-
|
|||||||||||||||||||||||||||||||||||||||||||||||
Stock Based Compensation
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
2,050,372
|
2,050
|
137,758
|
-
|
139,808
|
|||||||||||||||||||||||||||||||||||||||||||||||
Stock issuance costs
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
(32,325
|
)
|
-
|
-
|
-
|
(32,325
|
)
|
||||||||||||||||||||||||||||||||||||||||||||
Conversion of related party notes payable and accrued
interest into common stock |
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
4,402,079
|
4,402
|
601,133
|
-
|
-
|
-
|
605,535
|
|||||||||||||||||||||||||||||||||||||||||||||
Discount on warrants issued in conjunction with
related party notes payable |
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
113,586
|
-
|
-
|
-
|
113,586
|
|||||||||||||||||||||||||||||||||||||||||||||
Fair value of stock option
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
1,295,741
|
-
|
-
|
-
|
1,295,741
|
|||||||||||||||||||||||||||||||||||||||||||||
Restricted Stock
units and
awards
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
2,175,000
|
2,175
|
64,650
|
-
|
-
|
-
|
66,825
|
|||||||||||||||||||||||||||||||||||||||||||||
Deemed dividend distribution on issuance of common
stock for conversion of Series C and Series D |
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
(596,878
|
)
|
(596,878
|
)
|
||||||||||||||||||||||||||||||||||||||||||||||
Accretion of deemed dividend distribution on issuance
of common stock for conversion of Series C and Series D |
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
596,878
|
596,878
|
||||||||||||||||||||||||||||||||||||||||||||||||
Common stock and warrants issued for services
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
1,725,175
|
1,724
|
296,083
|
297,807
|
||||||||||||||||||||||||||||||||||||||||||||||||
Net loss
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
(3,385,340
|
)
|
(3,385,340
|
)
|
|||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2017
|
324,778
|
$
|
325
|
0.92
|
$
|
-
|
-
|
$
|
-
|
-
|
$
|
-
|
53,523,332
|
$
|
53,522
|
$
|
56,198,126
|
$
|
(113,389
|
)
|
$
|
(56,331,088
|
)
|
$
|
(192,504
|
)
|
Balance Sheet Accounts Impacted by
Warrants and Embedded Derivative Liability |
As
Previously Reported December 31, 2016 |
Cumulative
Effect Adjustment at the Beginning of 2017 |
Reported after the
Effect of a Change in Accounting Principle at the Beginning of 2017 |
|||||||||
Embedded derivative liability
|
$
|
228,718
|
$
|
(228,718
|
)
|
$
|
-
|
|||||
Warrant liability
|
394,744
|
(394,744
|
)
|
-
|
||||||||
Additional paid in capital
|
40,469,272
|
11,924,665
|
52,393,937
|
|||||||||
Accumulated deficit
|
(41,644,545
|
)
|
(11,301,203
|
)
|
(52,945,748
|
)
|
• |
ASU 2014-09, “Revenue from Contracts with Customers (Topic 606)”
|
• |
ASU 2016-08 “Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net).”
|
• |
ASU 2016-10, “Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing.”
|
• |
ASU 2016-11, “Revenue Recognition (Topic 605) and Derivatives and Hedging (Topic 815): Rescission of SEC Guidance Because of Accounting Standards Updates 2014-09 and 2014-16 Pursuant to Staff Announcements at the March 3, 2016 EITF (Emerging Issue Task Force) Meeting.”
|
• |
ASU 2016-12, “Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients.”
|
• |
ASU 2016-20, “Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers.”
|
• |
ASU 2017-13, “Revenue Recognition (Topic 605), Revenue from Contracts with Customers (Topic 606), Leases (Topic 840) and Leases (Topic 842). Amendments to SEC Paragraphs Pursuant to the Staff Announcement at the July 20, 2017 EITF Meeting and Rescission of Prior SEC Staff Announcements and Observer Comments.”
|
Year ended December 31,
|
||||||||
2017
|
2016
|
|||||||
Software, furniture and fixtures
|
$
|
200,000
|
$
|
200,000
|
||||
Equipment
|
3,223
|
3,223
|
||||||
Total
|
203,223
|
203,223
|
||||||
Less: accumulated depreciation
|
(203,223
|
)
|
(203,223
|
)
|
||||
Balance
|
$
|
-
|
$
|
-
|
Year Ended December 31
|
||||||||
US
|
2017
|
2016
|
||||||
Income before income taxes
|
$
|
(3,385
|
)
|
$
|
(1,646
|
)
|
||
Taxes under statutory US tax rates
|
(1,202
|
)
|
(576
|
)
|
||||
Increase (decrease) in taxes resulting from:
|
||||||||
Increase (decrease) in valuation allowance
|
1,346
|
1,391
|
||||||
Foreign tax rate differential
|
||||||||
Non-deductible changes in derivative liability and share based transactions
|
1
|
(716
|
)
|
|||||
State taxes
|
(145
|
)
|
(99
|
)
|
||||
Income tax expense
|
$
|
-
|
|
$
|
-
|
|
December 31,
|
||||||||
2017
|
2016
|
|||||||
US
|
||||||||
Net operating loss
|
$
|
7,035
|
$
|
13,263
|
||||
Share based compensation
|
1,800
|
5,165
|
||||||
Reserves and accruals
|
12
|
|||||||
Gross deferred tax assets
|
8,835
|
18,440
|
||||||
Less valuation allowance
|
(8,835
|
)
|
(18,275
|
)
|
||||
Total deferred tax assets
|
-
|
165
|
||||||
Deferred tax liabilities:
|
||||||||
Amortization of acquired intangibles
|
-
|
(165
|
)
|
|||||
Total deferred tax liabilities
|
-
|
(165
|
)
|
|||||
Net deferred tax assets / (liabilities)
|
$
|
-
|
$
|
-
|
|
Year ended December 31,
|
||||||||
2017
|
2016
|
|||||||
Series A notes payable; interest at 8% per annum; principal and
accrued interest due at maturity in October 2011 (past due) |
$
|
50,000
|
$
|
50,000
|
||||
Notes payable; interest rate at 5% per annum; principal and
accrued interest due at maturity on June 30, 2017 |
-
|
79,000
|
||||||
Less: unamortized discount
|
-
|
(60,931
|
)
|
|||||
Net
|
50,000
|
68,069
|
||||||
Less: current portion
|
(50,000
|
)
|
(68,069
|
)
|
||||
Balance
|
$
|
-
|
$
|
-
|
December 31, 2017
|
December 31, 2016
|
|||||||||||||||||||||||||||||||
Level 1
|
Level 2
|
Level 3
|
Total
|
Level 1
|
Level 2
|
Level 3
|
Total
|
|||||||||||||||||||||||||
Embedded derivative liability related
to beneficial conversion option |
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
228,718
|
$
|
228,718
|
||||||||||||||||
Derivative liability related to fair
value of warrants |
-
|
-
|
-
|
-
|
-
|
-
|
394,744
|
394,744
|
||||||||||||||||||||||||
Total
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
623,462
|
$
|
623,462
|
Total
|
||||
Balance, January 1, 2016
|
$
|
1,802,375
|
||
Series C embedded derivative fair value, February 2016
|
1,235,000
|
|||
Effect of conversion of Series C Preferred Stock on embedded derivative liability
|
(350,500
|
)
|
||
Series C warrant liability fair value, February 2016
|
1,767,576
|
|||
Series D embedded derivative fair value, October 2016
|
42,521
|
|||
Series D warrant liability fair value, October 2016
|
181,942
|
|||
Change in fair value of derivative liabilities
|
(4,055,452
|
)
|
||
Balance, December 31, 2016
|
623,462
|
|||
Cumulative adjustments related to change in accounting principle, January 1, 2017
|
(623,462
|
)
|
||
Balance, December 31, 2017
|
$
|
-
|
December 31, 2017
|
December 31, 2016
|
|||||||
Closing trade price of Common Stock
|
$
|
-
|
$
|
0.11
|
||||
Effective Series C Preferred Stock Conversion Price
|
-
|
-
|
||||||
Effective Series D Preferred Stock Conversion Price
|
-
|
-
|
||||||
Intrinsic value of conversion option per share
|
$
|
-
|
$
|
0.11
|
December 31, 2017
|
December 31, 2016
|
|||||||
Annual Dividend Yield
|
-
|
0.0%
|
|
|||||
Expected Life (Years)
|
-
|
1.5 – 2.8
|
||||||
Risk-Free Interest Rate
|
-
|
1.2% - 1.5%
|
|
|||||
Expected Volatility
|
-
|
215.8% - 234.1%
|
|
|
|
2017
|
|
|
2016
|
|
||
|
|
|
|
|
|
|
||
Risk Free Interest Rate
|
|
|
1.90%
|
|
|
|
2.41%
|
|
Expected Volatility
|
|
|
199.20%
|
|
|
|
310.0%
|
|
Expected Life (in years)
|
|
|
5.0
|
|
|
|
9.4
|
|
Dividend Yield
|
|
|
0%
|
|
|
|
0%
|
|
Weighted average estimated fair value of
|
|
|
|
|
|
|
|
|
options during the period
|
|
$
|
0.07
|
|
|
$
|
0.18
|
|
|
Options Outstanding
|
|||||||||||||||
|
Weighted -
|
|||||||||||||||
|
Average
|
|||||||||||||||
|
Remaining
|
Aggregate
|
||||||||||||||
|
Weighted-
|
Contractual
|
Intrinsic
|
|||||||||||||
|
Number of
|
Average
|
Term
|
Value
|
||||||||||||
|
Shares
|
Exercise Price
|
(in years)
|
(1)
|
||||||||||||
|
||||||||||||||||
Balance as of December 31, 2015
|
2,157,353
|
$
|
1.80
|
|||||||||||||
|
||||||||||||||||
Granted
|
2,490,000
|
0.24
|
||||||||||||||
Exercised
|
(7,843
|
)
|
0.05
|
|||||||||||||
Forfeited/cancelled
|
(308,235
|
)
|
(0.06
|
)
|
||||||||||||
|
||||||||||||||||
Balance December 31, 2016
|
3,282,647
|
$
|
0.52
|
|||||||||||||
|
||||||||||||||||
Granted
|
19,950,000
|
$
|
0.07
|
|||||||||||||
Forfeited/cancelled
|
(1,219,117
|
)
|
$
|
0.48
|
||||||||||||
|
||||||||||||||||
Balance December 31, 2017
|
22,013,529
|
$
|
0.11
|
4.8
|
||||||||||||
|
||||||||||||||||
Exercisable at December 31, 2017
|
19,346,862
|
$
|
0.12
|
4.8
|
$
|
3,480,567
|
||||||||||
|
||||||||||||||||
(1) |
The aggregate intrinsic value is calculated as the difference between the exercise price of the underlying awards and the quoted price of the Company’s common stock for options that were in-the-money at each respective period. During the years ended December 31, 2017 and 2016, the aggregate intrinsic value of options exercised under the Company’s stock option plans was $3,480,567 and less than $1,000, respectively.
|
|
Unvested Options
|
|||||||
|
Weighted -
|
|||||||
|
Average
|
|||||||
|
Grant
|
|||||||
|
Number of Unvested
|
Date Exercise Price
|
||||||
|
Options
|
|||||||
Balance December 31, 2016
|
-
|
$
|
-
|
|||||
|
||||||||
Granted
|
19,950,000
|
0.07
|
||||||
|
||||||||
Vested
|
(16,833,333
|
)
|
0.07
|
|||||
|
||||||||
Cancelled/forfeited/expired
|
(450,000
|
)
|
0.08
|
|||||
|
||||||||
Balance December 31, 2017
|
2,666,667
|
$
|
0.06
|
|
Warrants Outstanding
|
|||||||||||||||
|
Number of
Shares |
Weighted-
Average
Exercise
Price
|
Weighted -
Average
Remaining
Contractual
Term
in years)
|
Aggregate
Intrinsic
Value
(in 000's)
(1) |
||||||||||||
Balance, December 31, 2015
|
1,414,893
|
$
|
9.67
|
|
|
|||||||||||
Expired
|
(2,941
|
)
|
0.85
|
|
|
|||||||||||
Granted
|
7,804,500
|
0.39
|
|
|
||||||||||||
|
|
|||||||||||||||
Balance, December 31, 2016
|
9,216,452
|
$
|
1.82
|
|
|
|||||||||||
Issued
|
33,080,629
|
0.20
|
|
|||||||||||||
Cancelled/Forfeited
|
(10,004,500
|
)
|
0.40
|
|
|
|||||||||||
|
|
|
||||||||||||||
Balance, December 31, 2017
|
32,292,580
|
$
|
0.30
|
4.30
|
||||||||||||
|
||||||||||||||||
Exercisable at December 31, 2017
|
32,292,580
|
$
|
0.30
|
4.30
|
$
|
3,345
|
(1) |
The aggregate intrinsic value is calculated as the difference between the exercise price of the underlying warrants and the closing stock price of $0.27 for our common stock on December 31, 2017.
|
To the Company: |
Norman Gardner
|
With a copy to: |
Nason, Yeager, Gerson White & Lioce, P.A.
|
To the Executive: |
_________________________
|
VerifyMe, Inc.
|
||||
By:
|
||||
Norman Gardner
Chief Executive Officer
|
||||
Executive:
|
|||
Patrick White
|
September 5, 2017
|
Re: |
Compensation Agreement
|
· |
$5,250 per month that you are entitled to for services rendered, and to be rendered useless, for a period of 11 months starting on February 1, 2017;
|
· |
$10,750 due to Norman Gardner as accrued compensation;
|
· |
one-half of a loan made by ______________, which was valued at $31,500 as of its June 30, 2017 conversion date; and
|
· |
Stock options.
|
Sincerely yours,
|
||
Patrick White
|
||
Chief Executive Officer
|
By:
|
|
Re: |
VerifyMe / Stock Issuance
|
Sincerely yours,
|
||
[Print Name]
|
VerifyMe, Inc.
|
|||
By:______________________________
Patrick White
Chief Executive Officer
|
|||
Consultant:
|
|||
______________________________
Keith Goldstein
|
|||
(a) |
Initial Term
.
The Company hereby retains the Consultant, and the Consultant hereby agrees to perform consulting services for the Company for a period commencing as of September 1, 2017 and expiring on March 1, 2018 (the “Initial Term”).
|
(b) |
Renewal Terms
. In addition to the Initial Term, the Company and the Consultant may agree in writing to extend this Agreement for one or more additional terms (each, a “Renewal Term”, and together with the Initial Term, the “Term”) beginning on the last day of the Initial Term or the current Renewal Term, as the case may be. The parties hereby agree that the first Renewal Term shall be for a period beginning on March 1, 2018 and expiring on February 28, 2019 (the “First Renewal Term”) unless sooner terminated in accordance with the provisions hereof.”
|
COMPANY:
VerifyMe Inc.
By:________________________________
Name: Patrick White
Title: CEO
Date: 03/13/18
|
|
CONSULTANT:
POC Advisory Group, LLC
By:________________________________
Name: Keith Goldstein
Title: Managing Member
Date: 03/13/18
|
|
To the Company:
|
Scott McPherson
|
With a copy to:
|
Nason, Yeager, Gerson White & Lioce, P.A.
|
To the Consultant:
|
________________________
|
VerifyMe, Inc.
|
|||
By:
|
|||
Larry Schafran
Director & Member of Executive
Committee
|
|||
Consultant:
|
|||
|
[Print Name and Title]
|
If to the Purchaser:
|
The address set forth on the signature page attached hereto.
|
VERIFYME, INC.:
|
||||
By:
|
||||
Norman Gardner,
|
||||
Chief Executive Officer
|
||||
PURCHASER:
|
||||
By:
|
||||
(Print Name and Title) | ||||
Address:
|
||||
Email:
|
||||
Tax ID of Purchaser:
|
VerifyMe, Inc.
|
||
By:
|
||
Norman Gardner, Chairman
|
Date:
|
|
|
Signed:
|
|
|
|
|
Print Name:
|
|
Address:
|
||||
Date:
|
|
|
Signed:
|
|
|
Print Name:
|
|
||
Address:
|
Dated:
|
||
Signed:
|
Please print or typewrite
name and address of assignee: |
Please insert Social Security
or other Tax Identification Number of Assignee: |
Dated:
|
||
Signed:
|
Please insert Social Security
or other Tax Identification Number of Assignee: |
If to the Company
:
|
VerifyMe, Inc.
|
If to the Purchaser
:
|
The address set forth on the signature page attached hereto.
|
VERIFYME, INC.:
|
||
By:
|
||
Name:
|
Patrick White
|
|
Title:
|
Chief Executive Officer
|
PURCHASER:
|
||||
By:
|
||||
By:
|
||||
Name: [Print Name and Title]
|
||||
Address:
|
||||
Email:
|
||||
Tax ID of Purchaser:
|
PURCHASER:
|
||||
By:
|
||||
Name: [Print Name and Title]
|
||||
Address:
|
||||
Email:
|
||||
Tax ID of Purchaser:
|
If to the Company : |
VerifyMe, Inc.
|
If to the Investors : |
The addresses set forth on the
|
VERIFYME, INC.:
|
|||
By:
|
|||
Name: Patrick White
|
|||
Title: Chief Executive Officer
|
|||
INVESTORS:
|
|||
Clydesdale Partners, LLC
|
|||
By: Clydesdale Ventures, LLC, its Manager
|
|||
By:
|
|||
Name: Paul F. Klapper, Manager
|
|||
Address of Notice:
|
|||
Stephen H. Silver Family Trust Dated 12/7/12
|
|||
By:
|
|||
Name: Stephen H. Silver, Trustee
|
|||
Address of Notice:
|
|||
Stephen H. Silver
|
|||
By:
|
|||
Name: Stephen H. Silver
|
|||
Address of Notice:
|
|||
]more names and addresses to come]
|
Paul F. Klapper
|
|||
By:
|
|||
Name: Paul F. Klapper
|
|||
Address of Notice:
|
|||
PFK ACQUISITION GROUP II, LLC
|
|||
By:
|
|||
Name: Paul F. Klapper, Manager
|
|||
Address of Notice:
|
|||
CLYDESDALE PARTNERS II, LLC
|
|||
By: Clydesdale Ventures II, LLC, its Manager
|
|||
By:
|
|||
Name: Paul F. Klapper, Manager
|
|||
Address of Notice:
|
Date: April 16, 2018
|
|
|
|
/s/
Patrick White
|
|
Patrick White
|
|
Chief Executive Officer
|
|
(Principal Executive Officer)
|
|
1. |
Independent Consultant.
The Company, through the action of its Board of Directors (the “
Board
”), hereby engages the Consultant, and the Consultant will serve the Company, as a consultant. During the term of this Agreement, the Consultant will serve as the non-employee chief financial officer (“CFO”) of the Company on a part-time basis. The Company confirms that the Consultant has been duly appointed as the CFO of the Company and will remain as an executive officer of the Company during the term of this Agreement.
|
2. |
Duties, Term, and Compensation.
The Consultant’s duties, term of engagement, compensation and provisions for payment thereof are detailed in the attached Exhibit A, which may be amended in writing from time to time by the Consultant and agreed to by the Company, and which collectively are hereby incorporated by reference.
|
3. |
Expenses.
During the term of this Agreement, the Consultant shall bill and the Company shall reimburse the Consultant for all reasonable and approved out-of-pocket expenses which are incurred in connection with the performance of the duties hereunder.
|
4. |
Confidentiality.
The Consultant acknowledges that during the engagement he will have access to and become acquainted with various trade secrets, inventions, innovations, processes, information, records and specifications owned or licensed by the Company and/or used by the Company in connection with the operation of its business including, without limitation, the Company’s business and product processes, methods, customer lists, accounts and procedures. The Consultant agrees that he will not disclose any of the aforesaid, directly or indirectly, or use any of them in any manner, either during the term of this Agreement or at any time thereafter, except as required in the course of this engagement with the Company. All files, records, documents, blueprints, specifications, information, letters, notes, media lists, original artwork/creative, notebooks, and similar items relating to the business of the Company, whether prepared by the Consultant or otherwise coming into his possession, shall remain the exclusive property of the Company. The Consultant shall not retain any copies of the foregoing without the Company’s prior written permission. Upon the expiration or earlier termination of this Agreement, or whenever requested by the Company, the Consultant shall immediately deliver to the Company all such files, records, documents, specifications, information, and other items in his possession or under his control.
|
5. |
Conflicts of Interest; Non-hire Provision.
The Consultant represents that he is free to enter into this Agreement, and that this engagement does not violate the terms of any agreement between the Consultant and any third party. Further, the Consultant, in rendering his duties shall not utilize any invention, discovery, development, improvement, innovation, or trade secret in which he does not have a proprietary interest. During the term of this agreement, the Consultant shall devote as much of his productive time, energy and abilities to the performance of his duties hereunder as is necessary to perform the required duties in a timely and productive manner. The Company acknowledges that this Agreement only obligates the Consultant to serve a limited percent of his working time with the Company, that the Consultant has numerous other commitments. The Consultant is expressly free to perform services for other parties while performing services for the Company and is permitted to be employed by The CFO Squad LLC.
|
6. |
Indemnification and D&O Insurance:
The Company agrees to defend, indemnify (including, without limitation, by providing for the advancement of expenses and reasonable attorneys’ fees) and hold harmless the Consultant for any and all acts taken or omitted to be taken by the Consultant hereunder (except for bad faith, gross negligence or willful misconduct) as if the Consultant was an officer of the Company as provided in the charter and bylaws of the Company in accordance with the same terms, conditions, limitations, standards, duties, rights and obligations as an officer. The provisions of this Section shall survive any termination of this Agreement. In addition, until the five (5) year anniversary of the termination or expiration of this Agreement, the Company shall maintain in effect liability insurance coverage for the Consultant (as an insured person) with respect to his service under this Agreement, on the same or more favorable terms and conditions (from the perspective of the Consultant) as under the liability insurance policies of the Company in effect as of the date of this Agreement.
|
7. |
Merger.
This Agreement shall automatically terminate upon the merger or consolidation of the Company into or with any other entity.
|
8. |
Termination.
Either party may terminate this Agreement at any time by thirty (30) days written notice by either party, but shall automatically terminate after thirty (30) days if for any reason the Company has terminated its CFO Squad Agreement for Pre-Audit Services and SEC Compliance Services.
|
9. |
Independent Consultant.
This Agreement shall not render the Consultant an employee, partner, agent of, or joint venturer with the Company for any purpose. The Consultant is and will remain an independent Consultant in his relationship to the Company. The Company shall not be responsible for withholding taxes with respect to the Consultant’s compensation hereunder. The Consultant shall have no claim against the Company hereunder or otherwise for vacation pay, sick leave, retirement benefits, social security, worker’s compensation, health or disability benefits, unemployment insurance benefits, or employee benefits of any kind.
|
10. |
Successors and Assigns.
All of the provisions of this Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective heirs, if any, successors, and assigns.
|
11. |
Choice of Law.
The laws of the state of New York shall govern the validity of this Agreement, the construction of its terms and the interpretation of the rights and duties of the parties hereto.
|
12. |
Arbitration.
Any controversies arising out of the terms of this Agreement or its interpretation shall be settled in New York, New York in accordance with the rules of the American Arbitration Association, and the judgment upon award may be entered in any court having jurisdiction thereof.
|
13. |
Headings.
Section headings are not to be considered a part of this Agreement and are not intended to be a full and accurate description of the contents hereof.
|
14. |
Waiver.
Waiver by one party hereto of breach of any provision of this Agreement by the other shall not operate or be construed as a continuing waiver.
|
15. |
Assignment.
The Consultant shall not assign any of his rights under this Agreement, or delegate the performance of any of his duties hereunder, without the prior written consent of the Company.
|
16. |
Notices.
Any and all notices, demands, or other communications required or desired to be given hereunder by any party shall be in writing and shall be validly given or made to another party if personally served, or if deposited in the United States mail, certified or registered, postage prepaid, return receipt requested. If such notice or demand is served personally, notice shall be deemed constructively made at the time of such personal service. If such notice, demand or other communication is given by mail, such notice shall be conclusively deemed given five days after deposit thereof in the United States mail addressed to the party to whom such notice, demand or other communication is to be given as follows:
|
If to the Consultant:
|
|
17. |
Modification or Amendment.
No amendment, change or modification of this Agreement shall be valid unless in writing signed by the parties hereto.
|
18. |
Entire Understanding.
This document and any exhibit attached constitute the entire understanding and agreement of the parties, and any and all prior agreements, understandings, and representations are hereby terminated and canceled in their entirety and are of no further force and effect.
|
19. |
Unenforceability of Provisions.
If any provision of this Agreement, or any portion thereof, is held to be invalid and unenforceable, then the remainder of this Agreement shall nevertheless remain in full force and effect.
|
VerifyMe, Inc.
|
|||||
By:
|
By:
|
||||
Date:
|
Date:
|
||||
Patrick White
|
|||||
Its:
|
President & CEO
|
DUTIES: |
The Consultant will perform all duties typically required of a Chief Financial Officer, including, but not limited to accounting oversight, preparation of quarterly and annual financial statements to be filed with the SEC, filings required on Forms 8-K, 10-Q and 10-K and such other filings as may be required and coordination with VerifyMe Inc’s independent public accountants with respect to quarterly reviews and annual audits.
|
TERM: |
This engagement shall commence upon execution of this Agreement and shall continue in full force and effect for a period of one (1) year. The agreement may only be extended thereafter by mutual agreement, unless terminated earlier by operation of and in accordance with this Agreement.
|
Date: April 16, 2018
|
|
|
|
/s/
James Cardwell
|
|
James Cardwell
|
|
Chief Financial Officer
|
|
(Principal Financial Officer)
|
|
|
1.
|
The annual report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934 and
|
|
|
|
|
2.
|
The information contained in the annual report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
/s/ Patrick White
|
|
Patrick White
|
|
Chief Executive Officer
|
|
(Principal Executive Officer)
|
|
Dated: April 16, 2018
|
|
|
1.
|
The annual report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934 and
|
|
|
|
|
2.
|
The information contained in the annual report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
/s/ James Cardwell
|
|
James Cardwell
|
|
Chief Financial Officer
|
|
(Principal Financial Officer)
|
|
Dated: April 16, 2018
|
|