v3.25.1
SEGMENT REPORTING
 3 Months Ended
Mar. 31, 2025
Segment Reporting [Abstract]  
SEGMENT REPORTING

NOTE 11 – SEGMENT REPORTING

 

As of March 31, 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 
  

March 31,

 

March 31,

 
   2025   2024 
   Precision Logistics   Authentication   Consolidated   Precision Logistics   Authentication   Consolidated 
                         
NET REVENUE  $4,429   $26   $4,455   $5,614   $145   $5,759 
                               
COST OF REVENUE   2,959    6    2,965    3,486    13    3,499 
                               
GROSS PROFIT   1,470    20    1,490    2,128    132    2,260 
                               
OPERATING EXPENSES                              
Management and technology   596    28    624    776    256    1,032 
Research and development   -    5    5    -    55    55 
Sales and marketing   268    2    270    183    127    310 
Other Segment Items   428    (100)   328    339    50    389 
                               

Total Segment expenses

   1,292    (65)   1,227    1,298    488    1,786 
                               
Segment Income  $178   $85   $263   $830   $(356)  $474 
                               

General and Administrative

             (856)             (1,121)
                               
Other Income (Expense)             22              94 
                               
NET LOSS           $(571)           $(553)