SEGMENT REPORTING

9 Months Ended

Sep. 30, 2024

Segment Reporting [Abstract]

SEGMENT REPORTING

NOTE 11 – SEGMENT REPORTING

As of September 30, 2024, we operated through two reportable business segments: (i) Precision Logistics and (ii) Authentication.

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, 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,
	2024			2023			2024			2023
Revenue:
Precision Logistics	$	5,303		$	5,457		$	16,161		$	16,085
Authentication		132			147			385			515
Total Revenue	$	5,435		$	5,604		$	16,546		$	16,600
Gross Profit:
Precision Logistics	$	1,777		$	1,909		$	5,903		$	4,748
Authentication		118			137			342			405
Total Gross Profit		1,895			2,046			6,245			5,153
Segment Management and Technology - Precision Logistics		1,013			1,029			3,259			2,895
Segment Management and Technology - Authentication		316			312			930			802
Sales and marketing - Precision Logistics		262			181			599			733
Sales and marketing - Authentication		139			196			400			670
General and administrative		778			1,178			2,780			3,393
Research and development		5			5			65			23
Goodwill and Intangible asset impairment		2,252			-			2,265			34
LOSS BEFORE OTHER INCOME (EXPENSE)		(2,870	)		(855	)		(4,053	)		(3,397	)
OTHER INCOME (EXPENSE)		446			(75	)		730			5
NET LOSS	$	(2,424	)	$	(930	)	$	(3,323	)	$	(3,392	)