VerifyMe, Inc. Revenue Disclosure
NOTE 3 – REVENUE
Revenue by Category
The following series of tables present our revenue disaggregated by various categories (dollars in thousands).
| Precision Logistics | Authentication | Consolidated | ||||||||||||||||||||||
| Revenue | Year Ended December 31, | Year Ended December 31, | Year Ended December 31, | |||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | 2025 | 2024 | |||||||||||||||||||
| ProActive services | $ | 13,165 | $ | 19,365 | $ | $ | $ | 13,165 | $ | 19,365 | ||||||||||||||
| Premium services | 3,077 | 4,401 | 3,077 | 4,401 | ||||||||||||||||||||
| Brand protection services | 156 | 441 | 156 | 441 | ||||||||||||||||||||
| $ | 16,242 | $ | 23,766 | $ | 156 | $ | 441 | $ | 16,398 | $ | 24,207 | |||||||||||||
Contract Balances
The timing of revenue recognition, billings and cash collections results in unbilled revenue (contract assets) and deferred revenue (contract liabilities) on the consolidated balance sheets. Amounts charged to our clients become billable according to the contract terms, which usually consider the delivery completion. Unbilled amounts will generally be billed and collected within 30 days but typically no longer than 60 days. When we advance bill clients prior to the work being performed, generally, such amounts will be earned and recognized in revenue within twelve months. These assets and liabilities are reported on the consolidated balance sheets on a contract-by-contract basis at the end of each reporting period. Changes in the contract asset and liability balances during the year ended December 31, 2025, were not materially impacted by any other factors.
Applying the practical expedient in ASC Topic 606, we recognize the incremental costs of obtaining contracts (i.e., sales commissions) as an expense when incurred if the amortization period of the assets that we otherwise would have recognized is one year or less. As of December 31, 2025, we did not have any capitalized sales commissions.
For all periods presented, contract liabilities were not significant.
The following table provides information about contract assets from contracts with customers:
| Contract Asset | ||||||||
| December 31, | ||||||||
| In Thousands | 2025 | 2024 | ||||||
| Beginning balance, January 1 | $ | 733 | $ | 1,282 | ||||
| Contract asset additions | 5,841 | 8,572 | ||||||
| Reclassification to accounts receivable, billed to customers | (6,236 | ) | (9,121 | ) | ||||
| Ending balance (1) | $ | 338 | $ | 733 | ||||
______________
| (1) | Included within "Unbilled revenue" on the accompanying Consolidated Balance Sheets. |
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 31, 2026 | Showing above |
| 2024 | Mar 12, 2025 | |
| 2023 | Mar 29, 2024 | |
| 2022 | Mar 28, 2023 | |
| 2021 | Mar 14, 2022 | |
| 2020 | Mar 25, 2021 | |
About Revenue Disclosures
Revenue disclosures under ASC 606 explain how a company identifies performance obligations, allocates transaction prices, and determines when revenue is recognized. This section is essential for understanding whether reported revenue reflects genuine economic activity or aggressive accounting choices. Analysts examine the mix of point-in-time versus over-time recognition, which directly affects revenue timing and comparability.
Key signals: rising contract liabilities (deferred revenue) suggest strong future revenue visibility, while declining contract assets may indicate slowing project milestones. Watch for variable consideration estimates — rebates, returns, and performance bonuses that require management judgment. Significant changes in disaggregated revenue by geography or product line can reveal shifting business mix before it appears in headline numbers. Compare revenue growth against contract liability growth to assess sustainability, and scrutinize any changes in the timing of recognition that coincide with earnings pressure.