Revenues climb at VerifyMe on PeriShip acquisition

US brand protection company VerifyMe has reported a big increase in second-quarter revenues, fuelled mainly by its acquisition of $10.5m logistics firm PeriShip in April.

The company booked $4.5m in sales in the quarter, up from $100,000 in the same period of 2021, contributed mainly by the PeriShip business, which provides shipping and logistics management for perishable foods and healthcare companies.

VerifyMe's authentication, serialisation and track and trace business – VerifyMe Solutions – brought in $266,000, an 115 per cent increase which came primarily from new customers.

When it bought PeriShip, VerifyMe said the acquisition would provide a new entry point in the pharma market for its Solutions business, as customers stive to meet the 2023 Drug Supply Chain Security Act (DSCSA) requirements on pharma traceability ahead of the key deadline of November 27, 2023.

"We are excited to share the impact that the acquisition of PeriShip has had on our financial results for the quarter in addition to our organic revenue growth," said chief executive Patrick White.

"Bear in mind that due to the timing of the acquisition PeriShip's results were roughly nine weeks of the 12-week quarter," he added. "In addition, historically PeriShip's largest quarters are in the third and fourth quarter which are heavily influenced by vaccine distribution and holiday gift season."

VerifyMe's net loss for the quarter swelled to $12.6m from $1.4m in the like period of 2021, although that included a non-cash write off of $11.2m in relation the liquidation of a blank cheque or special purpose acquisition company (SPAC) – G3 VRM Acquisition Corp.

The SPAC was set up last year when VerifyMe was considering a merger within the technology industry, for example within the software, technology-enabled and business services sector, but was unable to complete a transaction within 12 months of its public listing and was been wound down.