SEGMENT REPORTING

6 Months Ended

Jun. 30, 2022

Segment Reporting [Abstract]

SEGMENT REPORTING

NOTE 13 – SEGMENT REPORTING

As of June 30, 2022, we operated through two reportable business segments: (i) VerifyMe Solutions and (ii) PeriShip Global Solutions.

VerifyMe Solutions. This segment specializes in solutions that connect brands with consumers through their products. Consumers can authenticate products with their smart phone prior to usage through our software allowing brand owners the ability to gather business intelligence while engaging directly with their consumers. Our solutions provide brand protection and supply chain functions such as counterfeit prevention, authentication, serialization, and track and trace features for labels, packaging and products. We offer consumer engagement capabilities, custom printing of tamper evident labels, and utilization of visible variable codes and invisible images and variable codes printed with our proprietary inks comprised of a rare earth mineral. We have developed and patented a dual-code technology that we believe can connect digital non-fungible (“NFTs”) to physical products.

PeriShip Global Solutions: This segment offers a value-added service provider for time and temperature sensitive parcel management. We provide shipping logistics services utilizing proprietary predictive analytics software and supporting call center services. 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.

We do not allocate the following items to the segments: general & administrative expenses, sales & marketing expenses, restructuring charges, other expense, interest expense, gain on equity investments and income tax 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 June 30,						Six Months Ended June 30,
	2022			2021			2022			2021
Revenue
VerifyMe Solutions	$	266			124		$	427			312
PeriShip Global Solutions		4,231			-			4,231			-
	$	4,497		$	124		$	4,658		$	312
Gross Profit
VerifyMe Solutions	$	176		$	98		$	299		$	243
PeriShip Global Solutions		1,509			-			1,509			-
		1,685			98			1,808			243
General and administrative (a)		2,535			1,217			4,000			2,325
Research and development		25			12			34			17
Sales and marketing (a)		447			297			746			544
LOSS BEFORE OTHER (EXPENSE) INCOME		(1,322	)		(1,428	)		(2,972	)		(2,643	)
OTHER (EXPENSE) INCOME		(11,233	)		70			(10,977	)		70
NET LOSS	$	(12,555	)	$	(1,358	)	$	(13,949	)	$	(2,573	)