SEGMENT AND GEOGRAPHICAL INFORMATION

12 Months Ended

Dec. 31, 2024

Segment Reporting [Abstract]

SEGMENT AND GEOGRAPHICAL INFORMATION

NOTE 19 - SEGMENT AND GEOGRAPHICAL INFORMATION

The Company operates in three reportable segments: (a) airport security (b) other aviation related services and (c) authentication technology. The Company also incurs general corporate expenses and costs which are not allocated to the reportable business segments but have been included in the “unallocated corporate” component which does not generate revenue and contains primarily non-operational expenses. The airport security segment includes the I-SEC International group. The airport security segment provides security services primarily to airlines and airport authorities in Europe.  The other aviation related services segments include Huntleigh USA. The other aviation related services segment provides various services to airlines within airports in the United States of America. The authentication technology represents the AU10TIX Technologies group. The authentication technology segment provides authentication services to financial and other companies, predominantly in the United States of America. Our operating segments are the same as our reportable segments.

Our Managing Director and CFO is our chief operating decision maker (CODM), who is the highest level of management responsible for assessing the Company’s overall performance. The CODM allocates resources to and assesses the performance of each operating segment using information about the operating segment's revenue and income (loss) from operations. Our CODM does not evaluate operating segments using asset or liability information.

The CODM considers monthly results and uses that information when making decisions about the allocation of operating and capital resources to each segment. The CODM is regularly provided with disaggregates expense information at the segment level which includes the corporate expenses, which are included in ‘other segment items’ in the following tables reconciliation purposes.

Revenue and costs and expenses are directly attributed to the segments they belong. All inter-segment transactions are eliminated in consolidation. The accounting policies of the segments are the same as the accounting policies of the Company as a whole.

Beginning in 2024 annual reporting, we adopted ASU 2023-07 retrospectively. The following table sets forth our segment information of revenue, expenses, net income (loss), goodwill and total assets:

The operating results of these reportable segments are regularly reviewed by the chief operating decision.

	Unallocated Corporate			Airport Security			Other Aviation Related Services			Authentication Technology			Total
Year ended December 31, 2024:
Revenue	$	-		$	362,799		$	74,526		$	45,985		$	483,310
Labor costs (1)		1,324			338,326			63,105			27,000			429,755
Depreciation and amortization		68			678			354			1,271			2,371
Other costs and expenses		2,472			25,612			10,513			16,488			55,085
Net income (loss)		(3,864	)		(1,817	)		554			1,226			(3,901	)
Goodwill		-			633			-			-			633
Total assets		19,791			80,422			18,832			66,737			185,782
Year ended December 31, 2023:
Revenue	$	-		$	309,335		$	66,463		$	55,744		$	431,542
Labor costs (1)		1,091			284,083			56,346			29,507			371,027
Depreciation and amortization		5			904			307			1,463			2,679
Other costs and expenses		2,215			21,771			9,796			13,483			47,265
Net income (loss)		(3,311	)		2,577			14			11,291			10,571
Goodwill		-			668			-			-			668
Total assets		17,740			81,733			19,325			78,298			197,096
Year ended December 31, 2022:
Revenue	$	-		$	224,037			53,954		$	46,986		$	324,977
Labor costs (1)		1,174			201,371			47,144			32,953			282,642
Depreciation and amortization		71			779			286			1,318			2,454
Other costs and expenses		1,676			20,759			8,753			13,927			45,115
Net income (loss)		(2,921	)		1,128			(2,229	)		(1,212	)		(5,234	)
Goodwill		-			646			-			-			646
Total assets		8,698			82,016			25,072			68,847			184,633

(1) Labor costs includes employee payroll, share-based compensation, bonus, and employee benefits, insurances and other.

The following table sets forth, for the periods indicated, revenue generated from customers by geographical area based on the geographical location of the customer’s invoicing address:

	Year Ended December 31,
	2024		2023		2022
Germany	$	128,278	$	114,176	$	111,826
United States		97,000		99,765		88,333
The Netherlands		106,027		101,512		63,842
Spain		113,177		82,217		39,448
Other countries		38,828		33,872		21,528
Total revenue	$	483,310	$	431,542	$	324,977

The following table sets forth, for the periods indicated, property and equipment, net of accumulated depreciation and amortization, by country:

	December 31,
	2024		2023
Germany	$	567	$	510
United States		541		696
The Netherlands		1,101		482
Spain		224		120
Other countries		2,233		3,386
Total property and equipment, net	$	4,666	$	5,194

Property and equipment, net, in other countries include $1,479 and $3,125 property and equipment in Israel, as of December 31, 2024 and 2023, respectively.