VerifyMe, Inc. (VRME): Business Model Canvas [Dec-2025 Updated]

You're looking for a clear, no-fluff breakdown of VerifyMe, Inc.'s business model as of late 2025, especially after their Q3 earnings, so here is the canvas. Honestly, the core of their operation is balancing high-touch logistics for time-sensitive goods-which generated $5.0 million in Q3 revenue-with growing their Authentication segment. Given they ended September with just $4.0 million in cash and are actively managing a major shipping partner transition, their recent push to cut operating expenses to $1.7 million in Q3 is defintely a critical move. This canvas maps out the key partnerships and customer relationships that must hold up as they execute this strategic pivot; see below to understand the mechanics.

VerifyMe, Inc. (VRME) - Canvas Business Model: Key Partnerships

You're looking at the structure of VerifyMe, Inc. (VRME) as of late 2025, specifically focusing on the external relationships that make the business run. These partnerships are critical, especially given the ongoing service transition in the Precision Logistics segment.

New shipping partner for Proactive services transition

The shift away from the previous shipping arrangement is a major event for the Proactive services line. Effective September 24, 2025, the PeriShip Precision Logistics division stopped using FedEx for Proactive services customers and aligned with a new shipping partner, which was expected to commence services later that month. This change is material, as the top 5% of Precision Logistics customers account for over 60% of Proactive services revenue. The average tenure for these key customer relationships is over 7 years. Management noted this transition is expected to materially impact Q4 2025 and Q1 2026 revenues.

Major US parcel carrier for Precision Logistics services

VerifyMe, Inc. has been actively diversifying its carrier base. The CEO expressed pleasure regarding the 'new partnership with the other major parcel carrier in the US' during the Q3 2025 earnings call. This follows the finalization of technology integration with a second major U.S. parcel carrier in 2025, moving the company away from relying on a single provider for Precision Logistics.

Freight carriers for non-U.S. Postal Service partial shipments

To broaden service capability beyond the U.S. Postal Service, the company expanded relationships with two freight carriers that manage the majority of non-U.S. Postal Service parcel shipments in the US. The CEO indicated that integrating technology and services with this additional freight carrier is set to begin driving meaningful revenue contribution in 2026.

E-commerce technology partners for expanded reach

The strategy involves deeper integration with the digital side of commerce. The company finalized technology integrations for e-commerce platforms. This effort, alongside the new major parcel carrier partnership, is designed to reinforce confidence in future organic revenue growth by unlocking access to broader shipping ecosystems.

Zen Credit Ventures for a $2.0 million short-term note

As part of a treasury strategy to generate better interest income, VerifyMe, Inc. deployed capital into a short-term note with ZenCredit Ventures, LLC. This deployment converted a portion of liquidity into an income-producing asset. Here are the key figures for that deployment:

Metric	Value
Principal Loaned Amount	$2,000,000
Annual Interest Rate	16%
Initial Promissory Note Term	Nine months
First Quarterly Interest Payment Amount	$80,000
Date First Interest Payment Received	November 2025
Note Maturity Date (Initial Term)	May 11, 2026
Cash Balance (as of September 30, 2025)	$4.0 million

The company received its first quarterly interest payment in November 2025.

You should keep an eye on the customer concentration within the logistics segment, too. The top 5% of Precision Logistics customers generate over 60% of Proactive services revenue.

• Precision Logistics Segment accounted for 99% of Q3 2025 revenues.
• Q3 2025 Gross Margin reached 41%, up from 35% in Q3 2024.
• Adjusted EBITDA improved to $0.8 million in Q3 2025 from $0.2 million in Q3 2024.
• Cash provided by operations was $0.2 million in Q3 2025.

Finance: draft 13-week cash view by Friday.

VerifyMe, Inc. (VRME) - Canvas Business Model: Key Activities

You're looking at the core actions VerifyMe, Inc. (VRME) must execute to keep its business model running, especially now, late in 2025. This isn't about what they sell, but what they do every day to make that happen. The numbers tell a story of operational tightening alongside a major shift in their logistics focus.

Managing specialized logistics for time and temperature sensitive products

This is the bread and butter, primarily through the Precision Logistics segment, which accounted for 99% of VerifyMe, Inc.'s revenues in the third quarter of 2025. The activity centers on managing complex, sensitive parcel movements. For the quarter ended September 30, 2025, this segment generated revenue of $5.0 million, up from $5.03 million in the prior quarter (Q3 2024 revenue was $5.4 million). The focus on efficiency is clear in the gross margin, which improved to 41% in Q3 2025, up from 35% in Q3 2024, and up from 35% in Q2 2025. The relationship with these customers is sticky; the average tenure is over 7 years. However, this segment is undergoing a transition, as the loss of high-margin contracts and discontinued services for two Proactive customers resulted in a $0.8 million revenue decrease in Q3 2025. The company is actively integrating with a second major freight carrier, though management noted that material revenue impact from this change isn't expected until 2026.

Metric	Q2 2025	Q3 2025	Q3 2024
Precision Logistics Revenue	$4.5 million	$5.0 million	$5.4 million
Gross Margin Percentage	35%	41%	35%
Revenue Impact from Discontinued Services	N/A	$0.8 million decrease	N/A

Developing and commercializing Authentication segment technology

This activity has been significantly de-emphasized following the divestiture of the Trust Codes business in December 2024. The remaining Authentication segment revenue is now immaterial to the overall business. For the first quarter of 2025, revenue from this segment was only $26K, and in Q2 2025, it registered $27,000. Management is exploring synergies with ink technology but is primarily focused on logistics.

Executing strategic acquisitions to complement services

VerifyMe, Inc. is keeping capital deployment options open, actively pursuing both tuck-in and transformative acquisitions. The company maintains a strong balance sheet, reporting $6.1 million in cash as of June 30, 2025, though this dipped to $4.0 million by September 30, 2025. To enhance passive income while awaiting M&A opportunities, the company executed a $2 million short-term loan agreement in August 2025, boosting expected annualized interest income from approximately 4% to over 8%. For any bolt-on deals, the criteria are strict: they must be immediately accretive.

Implementing cost reduction and operational efficiency initiatives

This has been a major focus, successfully driving profitability improvements despite revenue headwinds. Operating Expenses (OpEx) saw significant cuts across the board in 2025. OpEx was $1.9 million in Q2 2025, a 27% reduction versus the prior year's $2.6 million. In Q3 2025, OpEx further dropped to $1.7 million from $2.5 million in Q3 2024. This discipline directly improved profitability metrics:

• Adjusted EBITDA improved to $0.3 million in Q2 2025, up from $0.2 million in Q2 2024.
• Adjusted EBITDA further improved to $0.8 million in Q3 2025, up from $0.2 million in Q3 2024.
• Cash flow from operations was $0.7 million in Q2 2025, up from $0.4 million in Q2 2024.
• Management projects continued positive cash flow from operations for the full year 2025.

Expanding direct sales and marketing for PeriShip customers

The strategy for organic growth hinges on shifting the customer mix. Management is prioritizing the expansion of directly contracted PeriShip customers to drive future growth, supported by enhanced marketing and business development activities. This is a direct response to customer losses in 2024 and early 2025. The company is targeting growth opportunities in the agriculture, food and beverage, pharmaceutical, and healthcare industries. Within the Precision Logistics business, the top 5% of customers currently generate over 60% of Proactive services revenue, showing a concentration that sales expansion aims to diversify.

VerifyMe, Inc. (VRME) - Canvas Business Model: Key Resources

You're looking at the core assets that make VerifyMe, Inc. (VRME) tick right now, late in 2025. These aren't just abstract concepts; they are the tangible and intangible things the business relies on to deliver its value propositions in brand protection and precision logistics.

Proprietary IT platform for predictive analytics and tracking

The technology backbone is critical here. VerifyMe, Inc. deploys specialized technology solutions across its two main segments. For the Precision Logistics segment, this includes technology to meet the complex demands of shipping perishable and non-perishable products in the food and healthcare industries. The platform supports the delivery of time and temperature sensitive logistics. This infrastructure is what helps manage the service delivery for clients, especially as they transition to new shipping partners, like the one they are moving to after the previous provider's insourcing decision.

The platform underpins the entire operation, helping manage the transition and service delivery, which was a key focus following the Q3 2025 contract changes. The company is actively working on integrating services with a new major freight carrier to handle the majority of U.S. partial shipments, a process that relies heavily on this existing IT framework.

Cash balance of $4.0 million as of September 30, 2025

Liquidity is always a key resource, especially when managing operational transitions. As of the end of the third quarter, VerifyMe, Inc. maintained a specific cash position. Honestly, managing this cash flow while transitioning customers is a tightrope walk, but the numbers give us a clear picture of the immediate financial footing.

Here's the quick math on the cash position reported for the period ending September 30, 2025:

Financial Metric	Amount (Millions USD)	Reporting Period
Cash Balance (Direct Quote)	$4.0	September 30, 2025
Cash & Cash Equivalents (Barchart)	$4.007	09-2025
Cash (Simply Wall St)	$4.01	Recent Update

What this estimate hides is the expected use of cash in Q4 2025 to fund operations during the customer transition phase, though management expected to remain cash flow positive for the full year of 2025.

Intellectual property for anti-counterfeit and brand protection solutions

For the Authentication Segment, the intellectual property is what separates their offering. This IP is what allows VerifyMe, Inc. to provide anti-diversion and anti-counterfeit protection, along with brand enhancement services to their global clientele. The core of this IP involves the combination of physical authentication technologies.

The specific IP assets that form the basis of their protection solutions include:

• Secure printing methods.
• Invisible inks.
• RFID/NFC tags.
• Direct part marking technologies.
• VerifyInk™, which acts as a forensic marker to confirm product authenticity.

The company recognized a one-time non-cash impairment expense of $3.9 million during Q3 2025 related to goodwill and intangible assets associated with its PeriShip business, which is an important data point regarding the valuation of these assets as of that period.

Dedicated employees and experienced management team

The human capital is centered around an experienced leadership group guiding the company through its strategic shifts. The President, CEO & Director, Adam Stedham, is the public face of the strategy, expressing confidence in operational efficiency and growth potential. This team is responsible for executing the cost-cutting measures and operational enhancements that led to an adjusted EBITDA of $0.8 million in Q3 2025, up from $0.2 million in Q3 2024.

The management team is focused on resource allocation, having extended the share repurchase authorization until December 31, 2025, allowing them to buy back up to $500,000 of common stock, funded from cash generated from operations. This shows a commitment to shareholder value creation while managing the day-to-day operations.

Finance: draft 13-week cash view by Friday.

VerifyMe, Inc. (VRME) - Canvas Business Model: Value Propositions

You're looking at the core value VerifyMe, Inc. delivers right now, late in 2025. Honestly, the numbers tell a clear story: the focus is almost entirely on the logistics side of the house.

High-touch, end-to-end logistics management for perishables

This is where the rubber meets the road for VerifyMe, Inc. The Precision Logistics segment is driving the business, accounting for a massive 99% of revenues for the quarter ended September 30, 2025. That kind of concentration means the value proposition here is mission-critical for their current customer base. For the third quarter of 2025, the revenue generated was $5.0 million. The operational efficiency they are achieving in this segment is improving, evidenced by the gross margin hitting 41% in Q3 2025, up from 35% in Q3 2024. This suggests tighter control over the high-touch delivery process.

Predictive analytics to optimize time and temperature sensitive delivery

While we don't have a direct metric showing the percentage of time/temperature deviations avoided, the financial results point to the effectiveness of their technology stack. Look at the gross margin progression: it was 33% in Q1 2025, then 35% in Q2 2025, and finally 41% in Q3 2025. That steady climb suggests that whatever predictive analytics they are deploying is successfully optimizing routes or handling, which directly translates to better profitability on those sensitive shipments. It aligns with the broader industry trend, where 50% of supply chain organizations planned investments in AI and advanced analytics applications through 2024.

Item-level traceability and anti-counterfeit protection for brand owners

To be fair, the emphasis here has shifted. VerifyMe, Inc. divested its Authentication segment, specifically the Trust Codes Global business, in December 2024. This move streamlined the value proposition toward logistics, but the core offering still includes brand protection and enhancement solutions. The remaining value proposition in this area is likely focused on integrating traceability data within the logistics flow, rather than standalone authentication sales. The company's Q3 2025 revenue decline of $0.4 million compared to Q3 2024 was primarily due to a decrease related to discontinued services in their Proactive services, which is distinct from the Authentication segment divestiture.

Reduced loss, risk, and spoilage for critical shipments

The impact of risk mitigation shows up in the bottom line and cash flow. The company managed to improve its Adjusted EBITDA to $0.8 million in Q3 2025, up from $0.2 million in Q3 2024. Furthermore, cash provided by operations was $0.2 million in Q3 2025, an improvement from $0.0 million in Q3 2024. This operational improvement suggests better management of variable costs associated with risk, like expedited shipping or product write-offs. The company also made the critical decision to retire all debt in 2025, except for $0.8 million of convertible notes held by affiliates. This de-risking of the balance sheet is a major value add for stakeholders.

Here's a quick look at the recent financial context supporting these value drivers:

Metric	Q3 2025 Value	Q2 2025 Value	Q1 2025 Value
Revenue	$5.0 million	$4.5 million	$4.5 million
Gross Profit Margin	41%	35%	33%
Adjusted EBITDA	$0.8 million	$0.3 million	N/A
Cash Balance (End of Period)	$4.0 million (Sept 30)	$6.1 million (June 30)	N/A

The operational focus is clear, with the Precision Logistics segment being the engine. You can see the tangible financial benefit of this focus in the rising gross margin percentage across the first three quarters of 2025.

• Logistics segment revenue share: 99% (Q3 2025).
• Gross Margin increase: From 33% (Q1 2025) to 41% (Q3 2025).
• Cash from operations: Positive at $0.2 million (Q3 2025) vs $0.0 million (Q3 2024).
• Debt reduction: All senior long-term debt retired in 2025, leaving $0.8 million in affiliate notes.

If onboarding takes 14+ days, churn risk rises, but the current data suggests operational leverage is being gained.

Finance: draft 13-week cash view by Friday.

VerifyMe, Inc. (VRME) - Canvas Business Model: Customer Relationships

You're looking at how VerifyMe, Inc. (VRME) manages its client base, which is heavily concentrated in its Precision Logistics segment. Honestly, the relationship strategy hinges on locking in the high-value shippers.

Dedicated, high-touch service model for Precision Logistics

The entire business model pivots around this segment; Precision Logistics accounted for 99% of VerifyMe's revenue in Q3 2025. This level of reliance means the service model has to be exceptionally tight for these clients. You see evidence of this focus in the operational improvements, even amidst revenue headwinds. For instance, the company's gross margin climbed to 41% in Q3 2025, up from 35% in Q3 2024, suggesting better negotiated rates or service efficiency with the remaining base. Also, Adjusted EBITDA improved to $0.8 million in Q3 2025, up from $0.2 million in Q3 2024, showing that the core customer relationships are becoming more profitable.

Long-term relationships averaging over 7 years for core customers

This is the anchor for the whole operation. The top 5% of Precision Logistics customers are responsible for over 60% of Proactive services revenue. These are the relationships you want to protect. The data shows an average customer relationship spanning more than 7 years for this critical group. Still, you have to note the recent turbulence; Q2 2025 revenue fell 14% year-over-year due to customer losses, and Q1 2025 saw a 23% YoY revenue drop, partly from a discontinued premium contract that represented about 53% of that quarter's revenue decline. The long tenure of the remaining core customers is a testament to the stickiness of the service, despite the recent attrition.

Here's a quick look at how the core segment performed through the first three quarters of 2025:

Metric	Q1 2025	Q2 2025	Q3 2025
Revenue (Millions USD)	$4.5	$4.52	$5.0
Gross Margin Percentage	33%	35%	41%
Adjusted EBITDA (Millions USD)	$0.0	$0.3	$0.8

Proactive customer service for shipment monitoring and last-mile resolution

The service component is delivered through technology, which helps manage the last mile. VerifyMe, Inc. (VRME) offers the PeriTrack customer dashboard. This is an integrated web portal tool that gives customers an in-depth look at their shipping activities based on real-time data. The company also specifically highlights its proactive services, where the gross profit percentage improved in Q2 2025 compared to Q2 2024. You're seeing a focus on service quality metrics that support the high-value logistics, which includes:

• Service center support.
• Pre-transit optimization.
• Post-delivery tracking.
• Weather/traffic monitoring integration.

Direct engagement with brand owners for business intelligence

While direct financial metrics on business intelligence sharing aren't public, the company's overall offering combines precision logistics with brand protection solutions. This dual offering inherently requires deep engagement with brand owners to secure their intellectual property and manage sensitive shipments. The strategic shift to a new shipping partner, announced to be effective around September 24, 2025, for Proactive services customers, definitely required direct, high-touch engagement to manage the transition and secure customer buy-in for the long term, even if it caused a temporary revenue decrease in Q4 2025 and Q1 2026.

Finance: draft the Q4 2025 customer concentration risk assessment by next Wednesday.

VerifyMe, Inc. (VRME) - Canvas Business Model: Channels

You're looking at how VerifyMe, Inc. (VRME) gets its services-logistics and brand protection-to the customer as of late 2025. The channels are a mix of direct engagement and critical third-party integrations, which is where we see some of the recent volatility in the top line.

Direct sales and business development team

The direct sales and business development efforts are clearly working to mitigate losses from contract changes, but they haven't fully closed the gap yet. For the third quarter of 2025, revenue was $5.0 million, which was a decrease of $0.4 million compared to the $5.4 million reported in Q3 2024. Management noted that sales and marketing efforts only partially offset the revenue loss from the previous shipping partner transition. Still, the focus on operational efficiency is showing up in the margins; gross profit increased by $0.2 million to $2.1 million in Q3 2025, pushing the gross margin up to 41% from 35% year-over-year. This suggests the new business being brought in, or the retained business, carries a better margin profile.

Integration with major freight carriers' systems

This is a make-or-break area for the Precision Logistics segment. VerifyMe, Inc. announced a new partnership with the other major parcel carrier in the US, which is intended to be the long-term replacement for the previous provider. The transition is the main story right now. The company explicitly stated that they expect Q4 2025 and Q1 2026 revenue to decrease compared to the prior year as a result of this transition. This reliance on a key strategic partner-or the change between them-directly impacts service delivery and revenue realization. The risk factor noted was the reliance on one key strategic partner for shipping services in that segment.

E-commerce shopping cart integration for logistics services

The Proactive services, which likely involve direct e-commerce integration for time and temperature-sensitive logistics, have seen customer churn. The Q3 2025 revenue decline of $0.4 million was primarily due to $0.8 million of previously disclosed discontinued services with two Proactive customers. This loss was partially offset by increased revenues from new and existing customers in the Precision Logistics segment. The company is setting the stage for organic revenue growth in 2026, which will depend on the successful onboarding and scaling through this new carrier channel.

Investor relations and public communications (e.g., earnings calls)

Public communications, like the Q3 2025 earnings call on November 17, 2025, serve as a channel to manage expectations and communicate strategic shifts. Key financial metrics shared through this channel reflect the channel performance:

• Cash balance as of September 30, 2025: $4.0 million.
• Cash provided by operations in Q3 2025: $0.2 million.
• Adjusted EBITDA improvement: To $0.8 million in Q3 2025 from $0.2 million in Q3 2024.
• Operating expenses (excluding impairment) reduction: To $1.7 million in Q3 2025 from $2.5 million in Q3 2024.
• Available under line of credit: $1 million.

The company is using these communications to signal a shift toward a higher margin profile and continued cash generation, despite near-term revenue headwinds.

Here's a look at the key financial results that frame the performance across these channels for the third quarter of 2025:

Metric	Q3 2025 Amount	Q3 2024 Amount	Change/Context
Consolidated Revenue	$5.0 million	$5.4 million	Decrease of $0.4 million
Gross Profit	$2.1 million	$1.9 million	Increase of $0.2 million
Gross Margin Percentage	41%	35%	Improvement due to negotiated rates
Adjusted EBITDA	$0.8 million	$0.2 million	Year-over-year growth
Cash from Operations	$0.2 million	$0.0 million	Positive cash generation

The operational discipline, evident in the $1.7 million operating expenses (excluding impairment) in Q3 2025 versus $2.5 million in Q3 2024, is a direct result of managing the cost structure associated with these distribution channels. Finance: draft 13-week cash view by Friday.

VerifyMe, Inc. (VRME) - Canvas Business Model: Customer Segments

You're looking at the customer base for VerifyMe, Inc. (VRME) as of late 2025. Honestly, the picture is quite concentrated, which is something you need to factor into any valuation work you're doing right now. The company operates through two reportable business segments: Precision Logistics and Authentication, as of March 31, 2025.

The vast majority of the business, and therefore the customer base, is tied up in the Precision Logistics segment, which handles time and temperature sensitive parcel management. For the third quarter of 2025, this segment accounted for 99% of revenue. This segment is where you find your customers with time and temperature sensitive products, which would include medium-to-large businesses in the perishable food sector and multinational industry leaders in the pharmaceuticals/healthcare space, as the company provides specialized logistics for these sensitive goods.

The other segment, Authentication, which covers brand protection and enhancement solutions, is currently immaterial to the top line. For instance, in the first quarter of 2025, Authentication revenue was only $26K. This lack of diversification in the revenue base means the customer segments for the Authentication offering are not driving the overall financial performance.

Here's a quick look at how the segments stacked up based on recent financial reporting:

Segment Name	Q3 2025 Revenue (Millions USD)	Revenue Concentration (Q3 2025)	Key Service Focus
Precision Logistics	~$5.0	99%	Time and temperature sensitive parcel management
Authentication	Immaterial (Q1 2025: $0.026M)	Negligible	Brand protection and enhancement technology

When you dig into customer relationships, you see some concentration risks, particularly within the dominant Precision Logistics segment. If onboarding takes 14+ days, churn risk rises, especially given recent customer losses.

• Revenue decline in Q3 2025 was primarily due to approximately $0.8M of discontinued services from two proactive customers.
• In Q2 2025, revenue loss was attributed to a discontinued $0.6M contract with one Premium services customer and a $0.5M decrease from two Proactive services customers.
• As of March 31, 2025, one customer represented 41% of accounts receivable, net.
• For the three months ended March 31, 2025, one customer represented 15% of total revenues.
• Within Precision Logistics, one vendor accounted for 99% of transportation cost as of March 31, 2025, indicating a critical supplier relationship for this core customer base.

The company is actively working to stabilize this base, noting a new partnership with another major US parcel carrier, which should help set the stage for organic revenue growth in 2026.

Finance: draft 13-week cash view by Friday.

VerifyMe, Inc. (VRME) - Canvas Business Model: Cost Structure

You're looking at the cost side of VerifyMe, Inc. (VRME) as of late 2025, focusing on the numbers reported for the third quarter ending September 30, 2025. This gives us a clear, if somewhat snapshot, view of where the money is going.

The core of the direct costs relates to the Precision Logistics Segment, which accounted for 99% of Q3 2025 revenue. The improved gross margin suggests better cost control here, even with the ongoing partner transition.

Cost Component	Q3 2025 Financial Figure	Context/Comparison
Gross Margin Percentage	41%	Up from 35% in Q3 2024
Gross Profit	$2.1 million	Up from $1.9 million in Q3 2024
Revenue (Consolidated)	$5.0 million	Down from $5.4 million in Q3 2024
Cost of Goods Sold (Implied)	$2.9 million	Calculated as Revenue ($5.0M) minus Gross Profit ($2.1M)

The operating expenses show a significant reduction, excluding the large one-time charge. This discipline is a key focus area for the company.

• Operating expenses (excluding impairment) were reduced to $1.7 million in Q3 2025.
• This represents a decrease from $2.5 million reported in Q3 2024.
• The reduction is partly due to the divestiture of the TrustCodes business in December 2024 and general cost-cutting within Precision Logistics.

A major, non-recurring cost hit the bottom line in the form of an impairment charge. This is a significant non-cash event that heavily influenced the GAAP net loss.

The non-cash goodwill and intangible asset impairment recorded in Q3 2025 totaled $3.9 million. This charge was specifically related to goodwill and intangible assets in the PeriShip business.

The costs associated with the transition to a new shipping partner are intertwined with this impairment. The company noted that the $3.9 million impairment charge included the accelerated amortization of certain supplier-specific technology development projects that are no longer going to be used. Management expects this shipping partner transition to cause material revenue impacts in Q4 2025 and Q1 2026.

Regarding ongoing technology costs, the only specific figure tied to development is embedded within the impairment. The accelerated amortization of supplier-specific technology development projects is part of the $3.9 million impairment. No separate, ongoing figure for technology development and maintenance costs outside of this one-time charge is explicitly detailed in the Q3 2025 summary data available.

Finance: draft 13-week cash view by Friday.

VerifyMe, Inc. (VRME) - Canvas Business Model: Revenue Streams

You're looking at the revenue streams for VerifyMe, Inc. as of the third quarter of 2025. Honestly, the picture is dominated by one area, but there are a few other smaller pieces contributing to the top line.

The bulk of the money comes from the logistics side of the house. For Q3 2025, the consolidated revenue hit \$5.0 million. That number reflects a slight dip from the prior year's \$5.4 million in Q3 2024, primarily due to losing some older Proactive services contracts totaling about \$0.8 million.

Here's a breakdown of where that \$5.0 million came from in the third quarter:

Revenue Stream Component	Q3 2025 Contribution Detail	Financial Metric
Precision Logistics Services	Accounted for 99% of total revenue	Approximately \$4.95 million (based on 99% of \$5.0M)
Authentication Segment	Minor portion, impacted by divestiture	Not explicitly quantified for Q3 2025
Interest Income	From short-term note investment	Amount not specified for Q3 2025
Directly Contracted PeriShip Revenue	Included within Precision Logistics growth	Contributed to offsetting revenue declines

The Precision Logistics services revenue is the engine here. It's what's keeping the lights on, and management is focused on growing this organically. The gross margin for this segment actually improved to 41% in Q3 2025, up from 35% year-over-year, thanks to better negotiated rates and cost reductions. That margin expansion is a key focus area for the business strategy.

The Authentication segment is definitely a minor portion of total revenue now. You should note that the TrustCodes business, which was part of this segment, was divested in December 2024, leading to a decrease in operating expenses in Q3 2025 when excluding one-time charges.

Regarding the interest income, VerifyMe, Inc. held a \$2.0 million short-term note investment as of September 30, 2025, which generates regular quarterly interest payments. While the principal amount is clear, the specific interest income earned in Q3 2025 isn't itemized separately from the total revenue figure.

Revenue from directly contracted PeriShip customers falls under the Precision Logistics umbrella, which is the primary organic focus for growth moving into 2026. The company is setting the stage for organic revenue growth in 2026, aiming for a higher margin profile.

Key drivers impacting the revenue profile include:

• Precision Logistics accounted for 99% of Q3 2025 revenue.
• Gross profit increased by \$0.2 million to \$2.1 million in Q3 2025.
• A new partnership with a major US parcel carrier is expected to support future growth.
• Management expects Q4 2025 and Q1 2026 revenue to decline versus the prior year due to a proactive shipping partner change and capacity constraints delaying customer migrations.

Finance: draft 13-week cash view by Friday.