VerifyMe, Inc. Segments Disclosure

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):

Schedule of segment reporting information
		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