SEGMENT REPORTING

9 Months Ended

Sep. 30, 2023

Segment Reporting [Abstract]

SEGMENT REPORTING

NOTE 12 – SEGMENT REPORTING

As of September 30, 2023, we operated through two reportable business segments: (i) Precision Logistics (formerly PeriShip Global Solutions) and (ii) Authentication (formerly VerifyMe Solutions).

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 solutions that connect brands with consumers through their products. Consumers can authenticate products with their smart phone prior to usage, and brand owners have the ability to gather business intelligence while engaging directly with their consumers. Our Authentication segment also provides brand protection and supply chain functions such as counterfeit prevention.

We do not allocate the following items to the segments: general & administrative expenses, sales & marketing expenses, research and development 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 September 30,						Nine months ended September 30,
	2023			2022			2023			2022
Revenue:
Precision Logistics	$	5,457		$	5,036		$	16,085		$	9,267
Authentication		147			179			515			606
Total Revenue	$	5,604		$	5,215		$	16,600		$	9,873
Gross Profit:
Precision Logistics	$	2,155		$	1,722		$	5,460		$	3,231
Authentication		137			133			406			432
Total Gross Profit		2,292			1,855			5,866			3,663
General and administrative		2,754			2,213			7,852			6,213
Research and development		5			39			23			73
Sales and marketing		388			478			1,388			1,224
LOSS BEFORE OTHER (EXPENSE) INCOME		(855	)		(875	)		(3,397	)		(3,847	)
OTHER (EXPENSE) INCOME		(75	)		318			5			(10,659	)
NET LOSS	$	(930	)	$	(557	)	$	(3,392	)	$	(14,506	)

Additional information relating to our business segments is as follows (in thousands):

Identifiable assets:

	As of
	September 30, 2023		December 31,2022
Precision Logistics	$	13,656	$	17,302
Authentication		5,150		3,450
Total Assets	$	18,806	$	20,752