v3.26.1
SEGMENT REPORTING
 3 Months Ended 12 Months Ended
Mar. 31, 2026
Dec. 31, 2025
Segment Reporting [Abstract]    
SEGMENT REPORTING

NOTE 2 - SEGMENT REPORTING

 

Prior to 2026, we reported two operating segments: Precision Logistics and Authentication. We are not actively pursuing authentication business but continue to service existing customers. As of January 1, 2026, the Authentication segment falls below segment reporting quantitative thresholds, and is therefore not required to be presented as a separate reportable segment. As a result, beginning in the first quarter of 2026, we changed our internal reporting to the CODM and combined Precision Logistics and Authentication into a single segment, leaving Precision Logistics. This represents a reduction in the number of reportable segments by aggregation, not a re-labeling. Following this change, the Company has one reportable consolidated segment. The CODM evaluates consolidated segment performance and makes resource allocation decisions based on consolidated results. Since the Company operates as one operating segment, financial segment information, including profit or loss and asset information, can be found in the consolidated financial statements.

 

NOTE 15 – SEGMENT REPORTING

 

As of December 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):

                              
   Year Ended   Year Ended 
   December 31,   December 31, 
   2025   2024 
  

Precision

Logistics

   Authentication   Consolidated  

Precision

Logistics

   Authentication   Consolidated 
                         
NET REVENUE  $16,242   $156   $16,398   $23,766   $441   $24,207 
                               
COST OF REVENUE   10,022    55    10,077    15,498    47    15,545 
                               
GROSS PROFIT   6,220    101    6,321    8,268    394    8,662 
                               
OPERATING EXPENSES                              
Management and technology   1,937    52    1,989    2,883    993    3,876 
Research and development   -    20    20    -    70    70 
Sales and marketing   879    8    887    944    459    1,403 
Other Segment Items   1,329    (100)   1,229    1,359    177    1,536 
Goodwill and Intangible asset impairment   3,850    -    3,850    49    2,266    2,315 
                               
Total Segment expenses   7,995    (20)   7,975    5,235    3,965    9,200 
                               
Segment (Expense) Income  $(1,775)  $121   $(1,654)  $3,033   $(3,571)  $(538)
                               
General and Administrative             (3,416)             (3,852)
                               
Other Income             165              566 
                               
NET LOSS            $(4,905)            $(3,824)

 

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

 

Identifiable assets:

 

   Years Ended
December 31,		 
   2025   2024 
         
Precision Logistics  $10,109   $15,795 
Authentication   2,909    272 
Total Assets  $13,018   $16,067