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SEGMENT REPORTING
 9 Months Ended
Sep. 30, 2025
Segment Reporting [Abstract]  
SEGMENT REPORTING

NOTE 12 – SEGMENT REPORTING

 

As of September 30, 2025, we operated through two reportable business segments: (i) Precision Logistics and (ii) Authentication. The Chief Executive Officer is the chief operating decision maker (“CODM”). These segments reflect the way the CODM evaluates the Company’s business performance and allocates resources. The CODM assesses performance by using revenue, gross margin, operating expenses and net earnings. These metrics are analyzed by reviewing budget and forecast versus actual and prior year versus current year reporting. The various income performance measures are reviewed to ensure proper pricing strategies, effective cost controls and cash management across the organization. Reported revenue includes only the revenue generated by sales to external customers.

 

Precision Logistics: This segment offers a value-added service provider for time and temperature sensitive parcel management. Through logistics management from a sophisticated IT platform with proprietary databases, package and flight-tracking software, weather, traffic, as well as dynamic dashboards with real-time visibility into shipment transit and last-mile events that are managed by a service center we provide our clients an end-to-end vertical approach for their most critical service delivery needs. Using our proprietary IT platform, we provide real-time information and analysis to mitigate supply chain flow interruption, delivering last-mile resolution for key markets, including the perishable healthcare and food industries.

 

Authentication: This segment specializes in anti-counterfeit and brand protection.

 

We do not allocate the following items to the segments: general & administrative expenses and other income (expense).

 

The following table sets forth the revenue and operating results attributable to each reportable segment and includes a reconciliation of segment revenue to consolidated revenue and operating results to consolidated loss before income tax expense (in thousands):

                              
   Three Months Ended   Three Months Ended 
   September 30,   September 30, 
   2025   2024 
   Precision Logistics   Authentication   Consolidated   Precision Logistics   Authentication   Consolidated 
                         
NET REVENUE  $4,973   $60   $5,033   $5,303   $132   $5,435 
                               
COST OF REVENUE   2,934    26    2,960    3,526    14    3,540 
                               
GROSS PROFIT   2,039    34    2,073    1,777    118    1,895 
                               
OPERATING EXPENSES                              
Management and technology   401    7    408    642    264    906 
Research and development   -    5    5    -    5    5 
Sales and marketing   214    3    217    245    140    385 
Other Segment Items   356    -    356    387    52    439 
Goodwill and Intangible asset impairment   3,850    -    3,850    -    2,252    2,252 
                               
Total Segment expenses   4,821    15    4,836    1,274    2,713    3,987 
                               
Segment (Expense) Income  $(2,782)  $19   $(2,763)  $503   $(2,595)  $(2,092)
                               
General and Administrative             (669)             (778)
                               
Other Income             76              446 
                               
NET LOSS            $(3,356)            $(2,424)

 

                               
   Nine Months Ended   Nine Months Ended 
   September 30,   September 30, 
   2025   2024 
   Precision Logistics   Authentication   Consolidated   Precision Logistics   Authentication   Consolidated 
                         
NET REVENUE  $13,895   $113   $14,008   $16,161   $385   $16,546 
                               
COST OF REVENUE   8,815    39    8,854    10,258    43    10,301 
                               
GROSS PROFIT   5,080    74    5,154    5,903    342    6,245 
                               
OPERATING EXPENSES                              
Management and technology   1,554    44    1,598    2,215    779    2,994 
Research and development   -    15    15    -    65    65 
Sales and marketing   729    6    735    667    401    1,068 
Other Segment Items   1,162    (100)   1,062    975    151    1,126 
Goodwill and Intangible asset impairment   3,850    -    3,850    -    2,265    2,265 
                               
Total Segment expenses (income)   7,295    (35)   7,260    3,857    3,661    7,518 
                               
Segment (Expense) Income  $(2,215)  $109   $(2,106)  $2,046   $(3,319)  $(1,273)
                               
General and Administrative             (2,241)             (2,780)
                               
Other Income             129              730 
                               
NET LOSS            $(4,218)            $(3,323)