MeritValue

VerifyMe, Inc.

VRMEdata completeness 88%28 fiscal years on file
The thesis, from the filings

VerifyMe, Inc. earns about -47% on invested capital, below its ~9% cost of capital, but has diluted owners by 71% over 5 years — no moat visible in the numbers. The estimate methods put fair value between $1.17 and $1.24 a share.Whether it’s worth owning at today’s price is the last question — and yours to answer, below.

i. The business — what you’d actually own
FigureFY 2021FY 2022FY 2023FY 2024FY 2025
Revenue$867,0001$19.6M2$25.3M3$24.2M4$16.4M4
Net income$3.61M5−$14.4M6−$3.39M7−$3.82M8−$4.91M8
Operating cash flow−$3.25M9−$2.55M10$244,00011$871,00012$603,00012
Capital expenditure$12,00013—$27,00014$7,00015$18,00015
Free cash flow (derived)−$3.27M9—$217,00011$864,00012$585,00012
Total debt—$2.4M16$1.88M16$500,00017—
Cash & equivalents$9.42M18$3.35M19$3.03M20$2.82M20$4.35M21
Diluted shares7.4M8.5M9.8M10.4M12.6M

Superscripts are receipts. Each links to the SEC filing the number came from (full list at the bottom).

ii. Your slice — ownership made literal
If you owned
shares
Net assets behind them
$8.71
your share of equity
Profit it earned you last year
−$3.89
Free cash flow it threw off
$0.46
Debt you’d be carrying
—

10 shares is a claim on $8.71 of net worth that earned you −$3.89 and generated $0.46 of cash last year.

iii. Is this a good business?
Moat signal · return on invested capital
-47% avg · 5y
FY21 -24%FY22 -91%FY23 -23%FY24 -40%FY25 -56%

It earned about -47% on invested capital against a ~9% cost of capital — below the cost of funding. The numbers show no moat.

seeing a moat in the numbers →
Management signal · capital allocation
+71% shares · 5y

Share count is up 71% over 5 years — owners have been diluted. Worth asking what they got for it. Total debt has fallen 79% — deleveraging.

reading capital allocation →

Signals, not verdicts — read from the filings above. Numbers don’t prove a moat; they show its footprint. You decide.

iv. What it’s worth — engine v0.1.0

The 2 estimate methods that apply put fair value between $1.17 and $1.24 a share. They rest on different assumptions, so where they diverge is the story.

DCF · Growth Exit 10Y
$1.24
assumptions (10)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • terminalGrowth2.5%
  • projectionYears10
  • fcfGrowth5.0%
  • fcfBase$585,000
DCF · Growth Exit 5Y
$1.17
assumptions (10)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • terminalGrowth2.5%
  • projectionYears5
  • fcfGrowth5.0%
  • fcfBase$585,000
Earnings Power Value
not applicable
normalized (5y-median) earnings non-positive — EPV undefined
Graham Number
not applicable
diluted EPS missing or non-positive — Graham Number undefined

Different models answer different questions — which to trust when →

v. The price question — last, on purpose
Is today’s price fair?
See live price ↗
Type a price. The ledger answers.
Or set your own belief
FCF growth, next 5 years5.0%
Discount rate (WACC)8.93%
Terminal growth2.5%
At your growth, a share is worth $1.17
The three cases
Bear0.0%$1.01
Base5.0%$1.17
Bull10.0%$1.36

Bear/base/bull growth = 0% / filed history / history + 5pp. Type a price to see the return each case implies.

Default growth 5.0%= this company’s own filed history (median-to-median FCF CAGR, clamped 0–20%). Your adjustments are recorded anonymously. They become the “what do owners actually believe” dataset.

Sources — the receipts
  1. 10-K · period ending 2021-12-31 · accession 0001214659-23-004301 (Revenues)
  2. 10-K · period ending 2022-12-31 · accession 0001214659-24-005643 (Revenues)
  3. 10-K · period ending 2023-12-31 · accession 0001214659-25-004279 (Revenues)
  4. 10-K · period ending 2024-12-31 · accession 0001214659-26-004051 (Revenues)
  5. 10-K · period ending 2021-12-31 · accession 0001214659-23-004301 (NetIncomeLoss)
  6. 10-K · period ending 2022-12-31 · accession 0001214659-24-005643 (NetIncomeLoss)
  7. 10-K · period ending 2023-12-31 · accession 0001214659-25-004279 (NetIncomeLoss)
  8. 10-K · period ending 2024-12-31 · accession 0001214659-26-004051 (NetIncomeLoss)
  9. 10-K · period ending 2021-12-31 · accession 0001214659-23-004301 (NetCashProvidedByUsedInOperatingActivities)
  10. 10-K · period ending 2022-12-31 · accession 0001214659-24-005643 (NetCashProvidedByUsedInOperatingActivities)
  11. 10-K · period ending 2023-12-31 · accession 0001214659-25-004279 (NetCashProvidedByUsedInOperatingActivities)
  12. 10-K · period ending 2024-12-31 · accession 0001214659-26-004051 (NetCashProvidedByUsedInOperatingActivities)
  13. 10-K · period ending 2021-12-31 · accession 0001214659-23-004301 (PaymentsToAcquirePropertyPlantAndEquipment)
  14. 10-K · period ending 2023-12-31 · accession 0001214659-25-004279 (PaymentsToAcquirePropertyPlantAndEquipment)
  15. 10-K · period ending 2024-12-31 · accession 0001214659-26-004051 (PaymentsToAcquirePropertyPlantAndEquipment)
  16. 10-K · period ending 2022-12-31 · accession 0001214659-24-005643 (LongTermDebt)
  17. 10-K · period ending 2024-12-31 · accession 0001214659-26-004051 (DebtCurrent)
  18. 10-K · period ending 2021-12-31 · accession 0001214659-23-004301 (CashAndCashEquivalentsAtCarryingValue)
  19. 10-K · period ending 2022-12-31 · accession 0001214659-24-005643 (CashAndCashEquivalentsAtCarryingValue)
  20. 10-K · period ending 2023-12-31 · accession 0001214659-25-004279 (CashAndCashEquivalentsAtCarryingValue)
  21. 10-K · period ending 2025-12-31 · accession 0001214659-26-004051 (CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents)