VerifyMe (VRME) 10-Q 8 Nov 23 2023 Q3 Quarterly report Financial data

Cover

Cover - shares	9 Months Ended
	Sep. 30, 2023	Nov. 06, 2023
Document Type	10-Q
Amendment Flag	false
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Sep. 30, 2023
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2023
Current Fiscal Year End Date	--12-31
Entity File Number	001-39332
Entity Registrant Name	VERIFYME, INC.
Entity Central Index Key	0001104038
Entity Tax Identification Number	23-3023677
Entity Incorporation, State or Country Code	NV
Entity Address, Address Line One	801 International Parkway
Entity Address, Address Line Two	Fifth Floor
Entity Address, City or Town	Lake Mary
Entity Address, State or Province	FL
Entity Address, Postal Zip Code	32746
City Area Code	(585)
Local Phone Number	736-9400
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		9,991,806
Common Stock, par value $0.001 per share
Title of 12(b) Security	Common Stock, par value $0.001 per share
Trading Symbol	VRME
Security Exchange Name	NASDAQ
Warrants to Purchase Common Stock
Title of 12(b) Security	Warrants to Purchase Common Stock
Trading Symbol	VRMEW
Security Exchange Name	NASDAQ

Consolidated Balance Sheets (Un

Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
CURRENT ASSETS
Cash and cash equivalents including restricted cash	$ 3,007	$ 3,411
Accounts receivable, net of allowance for credit loss reserve, $76 and $37 as of September 30, 2023 and December 31, 2022, respectively	1,379	4,448
Unbilled revenue	885	1,185
Prepaid expenses and other current assets	302	333
Inventory	42	81
TOTAL CURRENT ASSETS	5,615	9,458
PROPERTY AND EQUIPMENT, NET	265	292
RIGHT OF USE ASSET	506	469
INTANGIBLE ASSETS, NET	7,107	6,545
GOODWILL	5,313	3,988
TOTAL ASSETS	18,806	20,752
CURRENT LIABILITIES
Debt, short-term	1,000	500
Accounts payable	1,497	3,912
Other accrued expense	815	902
Lease liability- current	160	115
Contingent liability-short term	162
TOTAL CURRENT LIABILITIES	3,634	5,429
LONG-TERM LIABILITIES
Contingent liability-long term	827
Long-term lease liability	346	359
Long-term derivative liability		3
Term note	1,000	1,375
Convertible Note – related party	425
Convertible Note	675
TOTAL LIABILITIES	6,907	7,166
STOCKHOLDERS' EQUITY
Common stock,  $0.001 par value; 675,000,000 authorized; 10,270,400 and 9,341,002 issued, 9,935,534 and 8,951,035 shares outstanding as of September 30, 2023 and December 31, 2022, respectively	10	10
Additional paid in capital	94,563	92,987
Treasury stock as cost; 334,866 and 389,967 shares at September 30, 2023 and December 31, 2022, respectively	(748)	(949)
Accumulated deficit	(81,851)	(78,459)
Accumulated other comprehensive loss	(75)	(3)
STOCKHOLDERS' EQUITY	11,899	13,586
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	18,806	20,752
Series A Preferred Stock [Member]
STOCKHOLDERS' EQUITY
Convertible preferred stock
Series B Preferred Stock [Member]
STOCKHOLDERS' EQUITY
Convertible preferred stock

Consolidated Balance Sheets (_2

Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Allowance for credit loss reserve	$ 76	$ 37
Common stock par value	$ 0.001	$ 0.001
Common stock, shares authorized	675,000,000	675,000,000
Common stock, shares issued	10,270,400	9,341,002
Common stock, shares outstanding	9,935,534	8,951,035
Treasury stock, shares	334,866	389,967
Series A Preferred Stock [Member]
Preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred stock, shares authorized	37,564,767	37,564,767
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Series B Preferred Stock [Member]
Preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred stock, shares authorized	85	85
Preferred stock, shares issued	0.85	0.85
Preferred stock, shares outstanding	0.85	0.85

Consolidated Statements of Oper

Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Income Statement [Abstract]
NET REVENUE	$ 5,604	$ 5,215	$ 16,600	$ 9,873
COST OF REVENUE	3,312	3,360	10,734	6,210
GROSS PROFIT	2,292	1,855	5,866	3,663
OPERATING EXPENSES
General and administrative (a)	2,754	2,213	7,852	6,213
Research and development	5	39	23	73
Sales and marketing (a)	388	478	1,388	1,224
Total Operating expenses	3,147	2,730	9,263	7,510
LOSS BEFORE OTHER (EXPENSE) INCOME	(855)	(875)	(3,397)	(3,847)
OTHER (EXPENSE) INCOME
Interest expenses, net	(39)	(32)	(127)	(54)
Loss on equity investment				(10,964)
Unrealized (loss) gain on equity investment		(1)	(2)	5
Change in fair value of contingent consideration	(36)		136
Other income (expense), net		25	(2)	28
Gain on extinguishment of debt		326		326
TOTAL OTHER (EXPENSE) INCOME, NET	(75)	318	5	(10,659)
NET LOSS	$ (930)	$ (557)	$ (3,392)	$ (14,506)
LOSS PER SHARE:
BASIC	$ (0.09)	$ (0.06)	$ (0.35)	$ (1.76)
DILUTED	$ (0.09)	$ (0.06)	$ (0.35)	$ (1.76)
WEIGHTED AVERAGE COMMON SHARE OUTSTANDING
BASIC	9,879,202	8,943,613	9,732,619	8,219,154
DILUTED	9,879,202	8,943,613	9,732,619	8,219,154

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Loss (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Income Statement [Abstract]
NET LOSS	$ (930)	$ (557)	$ (3,392)	$ (14,506)
Change in fair value of interest rate, Swap	3		4
Foreign currency translation adjustments	(28)		(76)
Total Comprehensive Loss	$ (955)	$ (557)	$ (3,464)	$ (14,506)

Consolidated Statements of Cash

Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss	$ (3,392)	$ (14,506)
Adjustments to reconcile net loss to net cash used in operating activities:
Allowance for bad debt	49	13
Stock based compensation	46	123
Unrealized loss (gain) on equity investment	2	(5)
Change in fair value of contingent consideration	(136)
Fair value of restricted stock awards and restricted stock units issued in exchange for services	1,053	972
Loss on disposal of equipment	2
Intangible asset impairment	34
Loss on equity investment		10,964
Gain on extinguishment of debt		(326)
Amortization and depreciation	835	504
Unrealized loss on foreign currency transactions	16
Changes in operating assets and liabilities:
Accounts receivable	3,015	(69)
Unbilled revenue	300	(695)
Inventory	38	(89)
Prepaid expenses and other current assets	51	(33)
Accounts payable, other accrued expenses and net change in operating leases	(2,512)	479
Net cash used in operating activities	(599)	(2,668)
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of patents	(51)	(33)
Leasehold improvements	(8)
Purchase of office equipment	(24)
Cash paid in business combination	(363)	(7,500)
Deferred implementation costs	(58)	(87)
Capitalized software costs	(576)	(127)
Net cash used in investing activities	(1,080)	(7,747)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from public offering of securities		4,528
Proceeds from line of credit	800
Proceeds from convertible debt	1,100
Proceeds from issuance of note payable		2,000
Proceeds from SPP Plan	80	102
Tax withholding payments for employee stock-based compensation in exchange for shares surrendered	(18)	(34)
Increase in treasury shares (share repurchase program)	(10)	(185)
Repayment of debt and line of credit	(675)
Settlement of debt and redemption of shares from PeriShip seller		(1,724)
Net cash provided by financing activities	1,277	4,687
Effect of exchange rate changes on cash	(2)
NET DECREASE CASH AND CASH EQUIVALENTS	(404)	(5,728)
CASH AND CASH EQUIVALENTS INCLUDING RESTRICTED CASH- BEGINNING OF PERIOD	3,411	9,422
CASH AND CASH EQUIVALENTS INCLUDING RESTRICTED CASH- END OF PERIOD	3,007	3,694
Cash paid during the period for:
Interest	129
Income taxes
SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES
Initial recognition of right-of-use asset and lease liability during the period		552
Change in fair value of interest rate, swap	4
Exercise of pre-funded warrants		$ 1

Consolidated Statements of Stoc

Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) $ in Thousands	Series A Convertible Preferred Stock [Member]	Series B Convertible Preferred Stock [Member]	Common Stock [Member]	Additional Paid-in Capital [Member]	Treasury Stocks [Member]	AOCI Attributable to Parent [Member]	Retained Earnings [Member]	Total
Beginning balance, value at Dec. 31, 2021			$ 7	$ 86,059	$ (838)		$ (64,061)	$ 21,167
Beginning balance, shares at Dec. 31, 2021		0.85	7,196,677		223,956
Restricted stock awards, net of shares withheld for employee tax				172				172
Restricted stock awards, net of shares withheld for employee tax, shares			29,688
Restricted Stock Units				766				766
Stock Purchase Plan				98				98
Common stock issued in relation to Stock Purchase Plan				(78)	$ 180			102
Common stock issued in relation to Stock Purchase Plan, shares			53,895		(53,895)
Common stock issued in relation to private placement			$ 2	4,526				4,528
Common stock issued in relation to private placement, shares			880,208
Common stock issued for services				96				96
Common stock issued for services, shares			30,000
Common stock issued in relation to Acquisition				974				974
Common stock issued in relation to Acquisition, shares			305,473
Repurchase of common stock					$ (185)			(185)
Repurchase of common stock, shares			(135,530)		135,530
Exercise of Pre-funded Warrants			$ 1					1
Exercise of Pre-funded Warrants, shares			675,000
Net loss							(14,506)	(14,506)
Ending balance, value at Sep. 30, 2022			$ 10	92,613	$ (843)		(78,567)	13,213
Ending balance, shares at Sep. 30, 2022		0.85	9,035,411		305,591
Beginning balance, value at Jun. 30, 2022			$ 9	92,347	$ (756)		(78,010)	13,590
Beginning balance, shares at Jun. 30, 2022		0.85	8,467,046		198,956
Restricted stock awards, net of shares withheld for employee tax				33				33
Restricted stock awards, net of shares withheld for employee tax, shares
Restricted Stock Units				289				289
Stock Purchase Plan				31				31
Common stock issued in relation to Stock Purchase Plan				(63)	$ 98			35
Common stock issued in relation to Stock Purchase Plan, shares			28,895		(28,895)
Common stock issued in relation to private placement				(24)				(24)
Common stock issued in relation to private placement, shares
Repurchase of common stock					$ (185)			(185)
Repurchase of common stock, shares			(135,530)		135,530
Exercise of Pre-funded Warrants			$ 1					1
Exercise of Pre-funded Warrants, shares			675,000
Net loss							(557)	(557)
Ending balance, value at Sep. 30, 2022			$ 10	92,613	$ (843)		(78,567)	13,213
Ending balance, shares at Sep. 30, 2022		0.85	9,035,411		305,591
Beginning balance, value at Dec. 31, 2022			$ 10	92,987	$ (949)	(3)	(78,459)	13,586
Beginning balance, shares at Dec. 31, 2022		0.85	8,951,035		389,967
Restricted stock awards, net of shares withheld for employee tax				317				317
Restricted stock awards, net of shares withheld for employee tax, shares			499,444
Restricted stock units, net of shares withheld for employee tax				718				718
Restricted Stock Units, net of shares withheld for employee tax, shares			67,717
Common stock issued in relation to Stock Purchase Plan				(84)	$ 211			127
Common stock issued in relation to Stock Purchase Plan, shares			70,047		(61,302)
Common stock issued in relation to Acquisition				625				625
Common stock issued in relation to Acquisition, shares			353,492
Repurchase of common stock					$ (10)			(10)
Repurchase of common stock, shares			(6,201)		6,201
Accumulated other comprehensive loss						(72)		(72)
Net loss							(3,392)	(3,392)
Ending balance, value at Sep. 30, 2023			$ 10	94,563	$ (748)	(75)	(81,851)	11,899
Ending balance, shares at Sep. 30, 2023		0.85	9,935,534		334,866
Beginning balance, value at Jun. 30, 2023			$ 10	94,111	$ (792)	(50)	(80,921)	12,358
Beginning balance, shares at Jun. 30, 2023		0.85	9,842,765		347,668
Restricted stock awards, net of shares withheld for employee tax				170				170
Restricted stock awards, net of shares withheld for employee tax, shares			14,000
Restricted stock units, net of shares withheld for employee tax				308				308
Restricted Stock Units, net of shares withheld for employee tax, shares			65,967
Common stock issued in relation to Stock Purchase Plan				(26)	$ 44			18
Common stock issued in relation to Stock Purchase Plan, shares			12,802		(12,802)
Accumulated other comprehensive loss						(25)		(25)
Net loss							(930)	(930)
Ending balance, value at Sep. 30, 2023			$ 10	$ 94,563	$ (748)	$ (75)	$ (81,851)	$ 11,899
Ending balance, shares at Sep. 30, 2023		0.85	9,935,534		334,866

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	9 Months Ended
	Sep. 30, 2023
Accounting Policies [Abstract]
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Nature of the Business VerifyMe, Inc. (“VerifyMe”) was incorporated in the State of Nevada November 10, 1999 VerifyMe, through PeriShip Global, is a software driven predictive analytics logistics provider of high-touch, end-to-end logistics management, which represents most of our current revenue stream. In addition, VerifyMe technologies provide product traceability and brand solutions. Our operations are split into two segments: Precision Logistics and Authentication. Through our Precision Logistics segment, we provide a value-added service for time and temperature sensitive parcel management driven by a proprietary software platform that provides predictive analytics from key metrics such as flight-tracking, weather, and traffic, all delivered to customers via a secure portal. The portal provides real-time visibility into shipment transit and last-mile events, with dynamic dashboards. All aspects of the shipping journey are managed by a dedicated service center. Using our proprietary logistics solution, 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. Through our Authentication segment, our technologies provide unit level traceability and brand solutions allowing brand owners to gather business intelligence, cross-sell products, monitor product diversion through the supply chain and build brand loyalty through interaction utilizing our unique dynamic codes which are read by consumers with their smart phones. The Company’s activities are subject to significant risks and uncertainties. See the “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections in this report. Reclassifications Certain amounts presented for the three and nine months ended September 30, 2022, reflect reclassifications made to conform to the presentation in our current reporting period. These reclassifications had no effect on the previously reported net loss. Basis of Presentation The accompanying unaudited interim consolidated financial statements (the “Interim Statements”) include the accounts of VerifyMe and its wholly owned subsidiaries PeriShip Global and Trust Codes Global. All significant intercompany balances and transactions have been eliminated upon consolidation. The consolidated financial statements have been prepared pursuant to the rules and regulations for reporting on Form 10-Q. Accordingly, certain information and disclosures required by U.S. generally accepted accounting principles (“GAAP”) for complete financial statements are not included herein. The Interim Statements should be read in conjunction with the financial statements and notes thereto included in the Company’s latest Annual Report on Form 10-K for the year ended December 31, 2022, as filed with the Securities and Exchange Commission (the “SEC”) on March 28, 2023. The accompanying Interim Statements are unaudited; however, in the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. The interim results for the three and nine months ended September 30, 2023, are not necessarily indicative of the results to be expected for the year ending December 31, 2023, or for any future interim periods. Restricted Cash The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the consolidated balance sheets that sum to the total of the same such amounts in the consolidated statements of cash flows (dollars in thousands): Schedule of cash, cash equivalents and restricted cash As of September 30, 2023 December 31,2022 Cash and cash equivalents $ 2,944 $ 3,348 Restricted cash 63 63 Total cash and cash equivalents including restricted cash $ 3,007 $ 3,411 The Company classifies cash and cash equivalents that are restricted from operating use for the next twelve months as restricted cash. As of September 30, 2023, and December 31, 2022, the Company held $ 63 Segment Reporting Operating segments are defined as components of an enterprise for which separate financial information is available and evaluated regularly by the chief operating decision maker, or decision-making group, in deciding the method by which to allocate resources and assess performance. The Company has two reportable segments, namely, (i) Precision Logistics (formerly PeriShip Global) and (ii) Authentication (formerly VerifyMe Solutions). See Note 12 Segment Reporting, for further discussion of the Company’s segment reporting structure. Foreign Currency Translation The functional currency of our New Zealand operations is the local currency, New Zealand dollar (NZD). The translation of the foreign currency into U. S. dollars is performed for balance sheet accounts using current exchange rates in effect at the balance sheet date and for revenue and expense accounts using the weighted average exchange rates prevailing during the year. The unrealized gains and losses resulting from such translation are included as a component of comprehensive income. Translation gains and losses arising from currency exchange rate fluctuations on transactions denominated in a currency other than the local functional currency are included in “General and administrative” on our Consolidated Statements of Operations. The foreign currency transaction losses for the three and nine months ended September 30, 2023, were $ 16 30 Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates. Recent Accounting Pronouncements In October 2021, the FASB issued Accounting Standards Update No. 2021-08, Accounting for Contract Assets and Contract Liabilities from Contracts with Customers Fair Value of Financial Instruments The Company’s financial instruments consist of accounts receivable, unbilled revenue, accounts payable, notes payable and accrued expenses, equity investment, contingent consideration and long-term derivative liabilities. The carrying value of accounts receivable, accounts payable and accrued expenses approximate their fair value because of their short maturities. The Company believes the carrying amount of its notes payable approximates fair value based on rates and other terms currently available to the Company for similar debt instruments. The Company follows FASB ASC 820, “Fair Value Measurements and Disclosures,” and applies it to all assets and liabilities that are being measured and reported on a fair value basis. The statement requires that assets and liabilities carried at fair value will be classified and disclosed in one of the following three categories: Level 1: Quoted market prices in active markets for identical assets or liabilities Level 2: Observable market-based inputs or unobservable inputs that are corroborated by market data Level 3: Unobservable inputs that are not corroborated by market data The level in the fair value within which a fair value measurement falls is based on the lowest level input that is significant to the fair value measurement in its entirety. The following table presents the Company’s financial instruments that are measured and recorded at fair value on the Company’s balance sheets on a recurring basis, and their level within the fair value hierarchy as of September 30, 2023 and December 31, 2022. Amounts in Thousands ('000) Schedule of fair value assets measured on recurring basis Short Term Investment Derivative Asset Contingent Consideration (Level 1) (Level 2) (Level 3) Balance as of December 31, 2022 $ 100 (3 ) - Unrealized loss on fair value recognized in other income (expense) (2 ) - - Contingent Consideration at issuance - - (1,125 ) Change in fair value of Contingent Consideration - - 136 Change in fair value to interest rate, SWAP, recognized in other comprehensive loss - 4 - Balance at September 30, 2023 $ 98 $ 1 $ (989 ) Equity Investments When the Company does not have a controlling financial interest in an entity but can exert influence over the entity’s operations and financial policies, the investment is accounted for either (i) under the equity method of accounting or (ii) at fair value by electing the fair value option available under applicable generally accepted accounting policies. The Company has elected the fair value option for its equity security under prepaid expenses and other current assets on the Consolidated Balance Sheets, as it has determined the fair value best reflects the economic performance of the equity investment. Changes in unrecognized gain or loss of the fair value of the equity investments are included in Other income (expense) on the accompanying Consolidated Statements of Operations. Revenue Recognition The Company accounts for revenues according to Accounting Standards Codification (“ASC”) Topic 606, “ Revenue from Contracts with Customers” The Company applies the following five steps, separated by reportable segments, in order to determine the appropriate amount of revenue to be recognized as it fulfills its obligations under each of its agreements. For more detailed information about reportable segments, see Note 12 – Segment reporting. · identify the contract with a customer; · identify the performance obligations in the contract; · determine the transaction price; · allocate the transaction price to performance obligations in the contract; and · recognize revenue as the performance obligation is satisfied. The Company generally considers completion of an agreement, or Statement of Work (“SOW”) and/or purchase order as a customer contract, provided collection is considered probable. Precision Logistics Our Precision Logistics segment consists of two service lines, Proactive and Premium. Under our Proactive service line, clients pay us directly for carrier service coupled with our proactive logistics service. Terms typically range 7 days and no longer than 30 days. The Company has determined it is the principal and recognizes shipment fees in gross revenue. Under our Premium service line, we provide complete white-glove shipping monitoring and predictive analytics services. This service includes customer web portal access, weather monitoring, temperature control, full service center support and last mile resolution. Payment terms are typically 30 days. Under both service lines in our Precision Logistics segment, our performance obligation is met, and revenue is recognized, when the packages are delivered. The transaction fees consist of fixed consideration made up of amounts contractually billed to the customer. There are no variable considerations in the transaction fee, in either service line. Authentication Our Authentication segment primarily consists of our brand protection service line which consists of a custom suite of products that offer clients traceability and brand solutions. Terms typically range between 30 and 90 days. Our performance obligation is met, and revenue is recognized, when our products are shipped or delivered depending on the specific agreement with the customer. The transaction fee is made up of fixed consideration based on the related purchase order or agreement. Warranties and other variable considerations are analyzed by the Company, in terms of historical warranties, current economic trends, and changes in customer demand, and have been determined to be insignificant in the nine months ended September 30, 2023. Goodwill Goodwill represents the excess of purchase price over the fair value of net assets acquired in business combinations. Pursuant to ASC 350, the Company tests goodwill for impairment on an annual basis in the fourth quarter, or between annual tests, in certain circumstances. Under authoritative guidance, the Company first assesses qualitative factors to determine whether it was necessary to perform the quantitative goodwill impairment test. The assessment considers factors such as, but not limited to, macroeconomic conditions, data showing other companies in the industry and our share price. An entity is not required to calculate the fair value of a reporting unit unless the entity determines, based on a qualitative assessment, that it is more likely than not that its fair value is less than its carrying amount. Events or changes in circumstances which could trigger an impairment review include macroeconomic conditions, industry and market conditions, cost factors, overall financial performance, other entity specific events and sustained decrease in share price. Business Combinations The Company applies the provisions of Accounting Standard Codification (“ASC”) Topic 805, Business Combinations, in the accounting for business acquisitions. ASC 805 requires the Company to recognize separately from goodwill the assets acquired and the liabilities assumed at their acquisition date fair values. Goodwill as of the acquisition date is measured as the excess of consideration transferred over the net of the acquisition date fair values of the identifiable assets acquired and the liabilities assumed. While the Company uses its best estimates and assumptions to accurately apply preliminary value to assets acquired and liabilities assumed at the acquisition date, where applicable, these estimates are inherently uncertain and subject to refinement. As a result, during the measurement period, which may be up to one year from the acquisition date, the Company records adjustments in the current period, rather than a revision to a prior period. Upon the conclusion of the measurement period or final determination of the values of the assets acquired or liabilities assumed, whichever comes first, any subsequent adjustments are recorded in the Consolidated Statements of Operations. Accounting for business combinations requires management to make significant estimates and assumptions, especially at the acquisition date, including estimates for intangible assets where applicable. Although the Company believes the assumptions and estimates made have been reasonable and appropriate, they are based in part on information obtained from management of the acquired companies and are inherently uncertain. Unanticipated events and circumstances may occur that may affect the accuracy or validity of such assumptions, estimates, or actual results. Basic and Diluted Net Loss per Share of Common Stock The Company follows Financial Accounting Standards Board (“FASB”) ASC 260, “Earnings Per Share,” when reporting earnings per share resulting in the presentation of basic and diluted earnings per share. Because the Company reported a net loss for each of the periods presented, common stock equivalents, including preferred stock, stock options and warrants were anti-dilutive; therefore, the amounts reported for basic and diluted loss per share were the same. For the nine months ended September 30, 2023, and 2022, there were shares potentially issuable, that could dilute basic earnings per share in the future that were excluded from the calculation of diluted earnings per share because their inclusion would have been anti-dilutive to the Company’s losses during the periods presented. For the three and nine months ended September 30, 2023, there were approximately 8,385,000 2,348,000 307,000 4,629,000 957,000 144,000 months ended September 30, 2022, 4,852,000 757,000 337,000 3,614,000 1,545,000 144,000 Stock-Based Compensation We account for stock-based compensation under the provisions of FASB ASC 718, “Compensation—Stock Compensation”, which requires the measurement and recognition of compensation expense for all stock-based awards made to employees and directors based on estimated fair values on the grant date. We estimate the fair value of stock options on the date of grant using the Black-Scholes model. The assumptions used in the Black-Scholes option pricing model include risk-free interest rates, expected volatility and expected life of the stock options. Changes in these assumptions can materially affect estimates of fair value stock-based compensation, and the compensation expense recorded in future periods. The value of the portion of the award that is ultimately expected to vest is recognized as an expense over the requisite service periods using the straight-line method. For performance restricted stock units with stock price appreciation targets (see Note 7 – Stock Options, Restricted Stock and Warrants), we applied a lattice approach that incorporated a Monte Carlo simulation, which involved random iterations that took different future price paths over the RSU’s contractual life based on the appropriate probability distributions (which are based on commonly applied Black Scholes inputs). The fair value was determined by taking the average of the grant date fair values under each Monte Carlo simulation trial. We recognize compensation expense on a straight-line basis over the performance period and there is no ongoing adjustment or reversal based on actual achievement during the period. We account for stock-based compensation awards to non-employees in accordance with ASU No. 2018-07, Compensation – Stock Based Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting (“ASU 2018-07”), which aligns accounting for share-based payments issued to nonemployees to that of employees under the existing guidance of Topic 718, with certain exceptions. This update supersedes previous guidance for equity-based payments to nonemployees under Subtopic 505-50, Equity – Equity-Based Payments to Non-Employees. All issuances of stock options or other equity instruments to non-employees as consideration for goods or services received by the Company are accounted for based on the fair value of the equity instruments issued. Non-employee equity-based payments are recorded as an expense over the service period, as if we had paid cash for the services. At the end of each financial reporting period, prior to vesting or prior to the completion of the services, the fair value of the equity-based payments will be re-measured, and the non-cash expense recognized during the period will be adjusted accordingly. Since the fair value of equity-based payments granted to non-employees is subject to change in the future, the amount of the future expense will include fair value re-measurements until the equity-based payments are fully vested or the service completed.

EQUITY INVESTMENTS

EQUITY INVESTMENTS	9 Months Ended
	Sep. 30, 2023
Equity Method Investments and Joint Ventures [Abstract]
EQUITY INVESTMENTS	NOTE 2 – EQUITY INVESTMENTS In December 2021, the Company acquired 8,841 10% 10.00 no 2 98 100

REVENUE

REVENUE	9 Months Ended
	Sep. 30, 2023
Revenue from Contract with Customer [Abstract]
REVENUE	NOTE 3 – REVENUE Revenue by Category The following series of tables present our revenue disaggregated by various categories (dollars in thousands). Schedule of disaggregation of revenue Authentication Precision Logistics Consolidated Revenue Three Months Ended Three Months Ended Three Months Ended 2023 2022 2023 2022 2023 2022 Proactive services $ - $ - $ 4,038 $ 4,026 $ 4,038 $ 4,026 Premium services - - 1,419 1,010 1,419 1,010 Brand protection services 147 179 - - 147 179 $ 147 $ 179 $ 5,457 $ 5,036 $ 5,604 $ 5,215 Authentication Precision Logistics Consolidated Revenue Nine Months Ended Nine Months Ended Nine Months Ended 2023 2022 2023 2022 2023 2022 Proactive services $ - $ - $ 12,742 $ 7,341 $ 12,742 $ 7,341 Premium services - - 3,343 1,926 3,343 1,926 Brand protection services 515 606 - - 515 606 $ 515 $ 606 $ 16,085 $ 9,267 $ 16,600 $ 9,873 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 nine-month period ended September 30, 2023, 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 September 30, 2023, 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: Schedule of contract assets from contracts with customers Contract Asset September 30, In Thousands 2023 2022 Beginning balance, January 1 $ 1,185 $ - Contract asset additions 2,316 1,317 Reclassification to accounts receivable, billed to customers (2,616 ) (622 ) Ending balance (1) $ 885 $ 695 ______________ (1) Included within "Unbilled revenue" on the accompanying Consolidated Balance sheets.

BUSINESS COMBINATIONS

BUSINESS COMBINATIONS	9 Months Ended
	Sep. 30, 2023
Business Combination and Asset Acquisition [Abstract]
BUSINESS COMBINATIONS	NOTE 4 – BUSINESS COMBINATIONS Trust Codes Global Limited On March 1, 2023, we acquired, through Trust Codes Global, the business and certain assets of Trust Codes Limited (“Trust Codes”), specializing in brand protection, anti-counterfeiting, and consumer engagement technology with an expertise in the food and agriculture industry. Trust Codes Global uses unique QR codes or IoT, coupled with GS1 standards to deliver cloud-based brand protection based on a unique per-item digital identity to protect brand and product authenticity, increase data visualization of a product through the end to end supply chain, and creates a data-drive engine to inform and educate consumers of the product. The Company accounted for the transaction as an acquisition of a business under ASC 805 – Business Combination. The purchase price was approximately $ 1.0 0.36 353,492 0.65 1.1 278 219 The following table summarizes the purchase price allocation for the acquisition (dollars in thousands). Schedule of business acquisitions Cash $ 363 Fair value of contingent consideration 1,125 Stock (issuance of 353,492 shares of common stock) (a) 625 Total purchase price $ 2,113 Amortization Period Purchase price allocation: Prepaid expenses $ 25 Property and Equipment, net 18 ROU Asset 171 Developed Technology 485 8 Trade Names/Trademarks 148 18 Customer Relationships 68 10 Goodwill 1,383 Accounts payable and other accrued expenses (14 ) Current lease liability (63 ) Long term lease liability (108 ) $ 2,113 (a) Stock issued was calculated based on the 15 day volume-weighted average price (“VWAP”) through February 28, 2023 calculated at $1.8388. Contingent Consideration ASC Topic 805 requires that contingent consideration to be recognized at fair value on the acquisition date and be re-measured each reporting period with subsequent adjustments recognized in the consolidated statement of operations. We estimate the fair value of contingent consideration liabilities using an appropriate valuation methodology, typically either an income-based approach or a simulation model, such as the Monte Carlo model, depending on the structure of the contingent consideration arrangement. Contingent consideration is valued using significant inputs that are not observable in the market which are defined as Level 3 inputs pursuant to fair value measurement accounting. We believe our estimates and assumptions are reasonable; however, there is significant judgment involved. At each reporting date, the contingent consideration obligation is revalued to estimated fair value, and changes in fair value subsequent to the acquisitions are reflected in income or expense in the consolidated statements of operations, and could cause a material impact to, and volatility in, our results. Changes in the fair value of contingent consideration obligations may result from changes in discount periods and rates and changes in the timing and amount of revenue and/or earnings projections. As of September 30, 2023, contingent consideration presented as current liability totaled $ 162 827

INTANGIBLE ASSETS AND GOODWILL

INTANGIBLE ASSETS AND GOODWILL	9 Months Ended
	Sep. 30, 2023
Goodwill and Intangible Assets Disclosure [Abstract]
INTANGIBLE ASSETS AND GOODWILL	NOTE 5 – INTANGIBLE ASSETS AND GOODWILL Goodwill Goodwill represents costs in excess of values assigned to the underlying net assets of acquired businesses. Intangible assets acquired are recorded at estimated fair value. Goodwill is deemed to have an indefinite life and is not amortized but is tested for impairment annually, and at any time when events suggest an impairment more likely than not has occurred. We test goodwill at the reporting unit level. ASC Topic 350, Intangibles - Goodwill and Other Determining the fair value of a reporting unit is judgmental in nature and involves the use of significant estimates and assumptions. These estimates and assumptions include revenue growth rates and operating margins used to calculate projected future cash flows, risk-adjusted discount rates, future economic and market conditions and determination of appropriate market comparables. We base our fair value estimates on assumptions we believe to be reasonable but are unpredictable and inherently uncertain. Actual future results may differ from those estimates. The timing and frequency of our goodwill impairment tests are based on an ongoing assessment of events and circumstances that would indicate a possible impairment. We will continue to monitor our goodwill and intangible assets for impairment and conduct formal tests when impairment indicators are present. Each of our two reportable segments represents an operating segment under ASC Topic 280, Segment Reporting Intangibles - Goodwill and Other Changes in the carrying amount of goodwill by reportable business segment for the nine months ended September 30, 2023, were as follows (in thousands): Schedule of goodwill by reportable business segment Authentication Precision Logistics Total Net book value at January 1, 2023 $ - $ 3,988 $ 3,988 2023 Activity Acquisition of Trust Codes Global 1,383 - 1,383 Foreign currency translation (58 ) - (58 ) Net book value at September 30, 2023 $ 1,325 $ 3,988 $ 5,313 Intangible Assets Subject to Amortization Our intangible assets include amounts recognized in connection with patents and trademarks, capitalized software and acquisitions, including customer relationships, tradenames, developed technology and non-compete agreements. Intangible assets are initially valued at fair market value using generally accepted valuation methods appropriate for the type of intangible asset. Amortization is recognized on a straight-line basis over the estimated useful life of the intangible assets. Intangible assets with definite lives are reviewed for impairment if indicators of impairment arise. Except for goodwill, we do not have any intangible assets with indefinite useful lives. Intangible assets with finite lives are subject to amortization over their estimated useful lives. The primary assets included in this category and their respective balances were as follows (in thousands): Schedule of intangible assets subject to amortization September 30, 2023 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Weighted Patents and Trademarks $ 2,045 $ (538 ) $ 1,507 13 Capitalized Software 161 (101 ) 60 2 Customer Relationships 1,904 (269 ) 1,635 9 Developed Technology 3,607 (789 ) 2,818 5 Internally Used Software 812 (40 ) 772 5 Non-Compete Agreement 191 (55 ) 136 4 Deferred Implementation 198 (19 ) 179 9 Total Intangible Assets $ 8,918 $ (1,811 ) $ 7,107 December 31, 2022 Patents and Trademarks $ 1,858 $ (445 ) $ 1,413 13 Capitalized Software 206 (91 ) 115 3 Customer Relationships 1,839 (133 ) 1,706 9 Developed Technology 3,143 (360 ) 2,783 5 Internally Used Software 236 (4 ) 232 6 Non-Compete Agreement 191 (28 ) 163 4 Deferred Implementation 140 (7 ) 133 10 Total Intangible Assets $ 7,613 $ (1,068 ) $ 6,545 Amortization expense for intangible assets was $ 266 248 761 446 28 6 Patents and Trademarks As of September 30, 2023, our current patent and trademark portfolios consist of nine granted U.S. patents and one granted European patent validated in four countries (France, Germany, United Kingdom, and Italy), five pending U.S. and foreign patent applications, twenty-six registered U.S. trademarks (of which seven trademarks were acquired through our wholly owned subsidiary, PeriShip Global), two EU trademark registrations, one Colombian trademark registration, one Australian trademark registration, one Japanese trademark registration, one Mexican trademark registration, one Singaporean trademark registration, two UK trademark registrations, six NZ trademark registration (in the name of Trust Codes Limited and/or Trust Codes Global Limited), one OAPI (African Intellectual Property Organization) trademark registration (in the name of Trust Codes Global Limited), and seven pending US and foreign trademark applications (of which one European trademark application is in the name of Trust Codes Limited). The Company abandoned three patents during the nine months ended September 30, 2023. The Company expects to record amortization expense of intangible assets over the next 5 years and thereafter as follows (in thousands): Schedule of future amortization expense Fiscal Year ending December 31, 2023 (three months remaining) $ 291 2024 1,137 2025 1,112 2026 1,108 2027 1,073 Thereafter 2,386 Total $ 7,107

STOCKHOLDERS_ EQUITY

STOCKHOLDERS’ EQUITY	9 Months Ended
	Sep. 30, 2023
Equity [Abstract]
STOCKHOLDERS’ EQUITY	NOTE 6 – STOCKHOLDERS’ EQUITY The Company expensed $ 177 325 33 206 The Company expensed $ 316 728 289 766 On February 28, 2023, 353,492 Non-Qualified Stock Purchase Plan On June 10, 2021, the stockholders of the Company approved a non-qualified stock purchase plan (the “2021 Plan”). The 2021 Plan provides eligible participants, including employees, directors and consultants of the Company, the opportunity to purchase shares of the Company’s common stock thereby increasing their interest in the Company’s continued success. The maximum number of common stock reserved and available for issuance under the 2021 Plan is 500,000 shares. The purchase price of shares of common stock acquired pursuant to the exercise of an option will be the lesser of 85% of the fair market value of a share (a) on the enrollment date, and (b) on the exercise date. The 2021 Plan is not intended to qualify as an employee stock purchase plan under Section 423 of the Internal Revenue Code of 1986, as amended (the “Code”). The Company applied FASB ASC 718, “Compensation-Stock Compensation” and estimated the fair value using the Black-Scholes model, as the 2021 Plan is considered compensatory. In relation to the 2021 Plan the Company expensed $ 5 46 31 98 80 102 Shares Held in Treasury As of September 30, 2023, and December 31, 2022, the Company had 334,866 389,967 748 949 On August 31, 2023, 6 participants exercised their option under the Company’s non-qualified stock purchase plan, and as a result, 12,802 0.96 On February 28, 2023, fourteen participants exercised their option under the Company’s non-qualified stock purchase plan, and as a result, 57,245 1.19 On August 31, 2022, four participants exercised their option under the Company’s non-qualified stock purchase plan, and as a result, 28,895 of $ 1.20 On February 28, 2022, five participants exercised their option under the Company’s non-qualified stock purchase plan, and as a result, 25,000 2.69 Shares Repurchase Program Effective July 1, 2022, the Company’s Board of Directors approved a share repurchase program to allow the Company to spend up to $ 1.5 6,201 10

STOCK OPTIONS, RESTRICTED STOCK

STOCK OPTIONS, RESTRICTED STOCK AND WARRANTS	9 Months Ended
	Sep. 30, 2023
Equity [Abstract]
STOCK OPTIONS, RESTRICTED STOCK AND WARRANTS	NOTE 7 – STOCK OPTIONS, RESTRICTED STOCK AND WARRANTS During 2013, the Company adopted the 2013 Omnibus Equity Compensation Plan (the “2013 Plan”). Under the 2013 Plan, the Company is authorized to grant awards of stock options, restricted stock, restricted stock units and other stock-based awards up to an aggregate of 400,000 On November 14, 2017, the Executive Committee of the Company’s Board of Directors adopted the 2017 Equity Incentive Plan (the “2017 Plan”) which covered the potential issuance of 260,000 On August 10, 2020, the Company’s Board of Directors adopted the 2020 Equity Incentive Plan (the “2020 Plan”), subject to stockholder approval, which authorizes the potential issuance of up to 1,069,110 On March 28, 2022, the Company’s Board of Directors adopted the First Amendment to the 2020 Plan, subject to stockholder approval, which increased the shares authorized for potential issuance under the 2020 Plan to 2,069,100 3,069,100 The 2020 Plan, as amended, is administered by the Compensation Committee which determines the persons to whom awards will be granted, the number of awards to be granted and the specific terms of each grant, including the vesting thereof, subject to the provisions of the plan. In connection with incentive stock options, the exercise price of each option may not be less than 100% of the fair market value of the common stock on the date of the grant (or 110% of the fair market value in the case of a grantee holding more than 10% of the outstanding stock of the Company). 1,000,000 The Company has issued non-qualified stock options pursuant to contractual agreements with non-employees. Options granted under the agreements are expensed when the related service or product is provided. Determining the appropriate fair value of stock-based awards requires the input of subjective assumptions. The Company uses the Black-Scholes option pricing model to value its stock option awards. The assumptions used in calculating the fair value represent management’s best estimates and involve inherent uncertainties and judgements. Stock Options The following table summarizes the activities for the Company’s stock options as of September 30, 2023: Schedule of stock options Options Outstanding Weighted - Average Remaining Aggregate Weighted- Contractual Intrinsic Number of Average Term Value Shares Exercise Price (in years) (in thousands) (1) Balance as of December 31, 2022 337,471 $ 4.63 Granted - - Forfeited/Cancelled/Expired (30,000 ) $ 4.67 Balance as of September 30, 2023 307,471 $ 4.62 Exercisable as of September 30, 2023 307,471 $ 4.62 1.4 $ - (1) The aggregate intrinsic value is calculated as the difference between the exercise price of the underlying awards and the quoted price of the Company’s common stock for options that were in-the-money at each respective period. As of September 30, 2023, the Company had no unvested stock options. During the three and nine months ended September 30, 2023, and 2022, the Company expensed $ 0 As of September 30, 2023, there was $ 0 Restricted Stock Awards and Restricted Stock Units The following table summarizes the unvested restricted stock awards as of September 30, 2023: Schedule of unvested restricted stock awards Weighted - Average Number of Grant Award Shares Date Fair Value Unvested at December 31, 2022 41,808 3.24 Granted 506,194 1.45 Vested (131,333 ) 2.06 Balance September 30, 2023 416,669 $ 1.44 As of September 30, 2023, total unrecognized share-based compensation cost related to unvested restricted stock awards is $ 411 The following table summarizes the unvested restricted stock units as of September 30, 2023: Schedule of unvested restricted stock units Weighted - Average Number of Grant Unit Shares Date Fair Value Unvested at December 31, 2022 413,626 2.14 Granted 272,941 1.35 Vested (221,933 ) 2.93 Balance September 30, 2023 464,634 $ 1.30 As of September 30, 2023, total unrecognized share-based compensation cost related to unvested restricted stock units was $ 401 1.4 For RSUs with stock price appreciation targets, we applied a lattice approach that incorporated a Monte Carlo simulation, which involved random iterations that took different future price paths over the RSU’s contractual life based on the appropriate probability distributions (which are based on commonly applied Black Scholes inputs). The fair value of each grant was determined by taking the average of the grant date fair values under each Monte Carlo simulation trial. We recognize compensation expense on a straight-line basis over the derived service period and there is no ongoing adjustment or reversal based on actual achievement during the period. The following table summarizes the unvested performance restricted stock units as of September 30, 2023: Schedule of unvested performance restricted stock units Weighted - Average Number of Number of Unit Shares Unit Shares Unvested at December 31, 2022 432,326 2.95 Granted 1,156,591 1.16 Forfeited/Cancelled (150,157 ) 2.95 Balance September 30, 2023 1,438,760 $ 1.51 As of September 30, 2023, total unrecognized share-based compensation cost related to unvested performance restricted stock units was $ 1,373 1.9 Warrants The following table summarizes the activities for the Company’s warrants for the nine months ended September 30, 2023: Schedule of warrants outstanding Number of Weighted- Average Exercise Price Weighted - Average Remaining Contractual Term in years) Aggregate Intrinsic Value (in thousands) (1) Balance as of December 31, 2022 5,103,455 $ 4.34 Granted - - Expired (474,869 ) 6.34 Balance as of September 30, 2023 4,628,586 $ 4.13 2.5 Exercisable as of September 30, 2023 4,628,586 $ 4.13 2.5 $ - (1) The aggregate intrinsic value is calculated as the difference between the exercise price of the underlying warrants and the closing stock price of $1.17 for our common stock on September 30, 2023.

DEBT

DEBT	9 Months Ended
	Sep. 30, 2023
Debt Disclosure [Abstract]
DEBT	NOTE 8— DEBT PeriShip Global is a party to a debt facility with PNC Bank, National Association (the “PNC Facility”). The PNC Facility includes a $1 million revolving line of credit (the “RLOC”) with a term of one-year which was extended to December 14, 2023. The RLOC has no scheduled payments of principal until maturity, and bears interest per annum at a rate equal to the sum of Daily SOFR plus 2.85% with monthly interest payments. The PNC Facility also includes a four-year term note (the “Term Note”) for $2 million which matures in September of 2026 and requires equal quarterly payments of principal and interest. The Term Note incurs interest per annum at a rate equal to the sum of Daily SOFR plus 3.1%. The RLOC and Term Note are guaranteed by VerifyMe and secured by the assets of PeriShip Global and VerifyMe. The PNC Facility includes a number of affirmative and restrictive covenants applicable to PeriShip Global, including, among others, a financial covenant to maintain a fixed charge coverage ratio of at least 1.10 to 1.00 at the end of each fiscal year, affirmative covenants regarding delivery of financial statements, payment of taxes, and establishing primary depository accounts with PNC Bank, and restrictive covenants regarding dispositions of property, acquisitions, incurrence of additional indebtedness or liens, investments and transactions with affiliates. PeriShip Global is also restricted from paying dividends or making other distributions or payments on its capital stock if an event of default (as defined in the PNC Facility) has occurred or would occur upon such declaration of dividend. PeriShip Global was in compliance with all affirmative and restrictive covenants under the PNC Facility at September 30, 2023. As of September 30, 2023, our short-term debt outstanding under the Term Note was $ 0.5 1.0 375 During the nine months ended September 30, 2023, $ 800 300 500 Effective October 17, 2022, the Company entered into an interest rate swap agreement, with a notional amount of $ 1,958 7.602% Convertible Debt On August 25, 2023, the Company entered into a Convertible Note Purchase Agreement with certain investors for the sale of convertible promissory notes for the aggregate principal amount of $ 1,100 425 purchased by related parties including certain members of management and the Board of Directors. The notes are subordinated unsecured obligations of the Company and accrue interest at a rate of 8% per year payable semiannually in arrears on February 25 and August 25 of each year, beginning on February 25, 2024. The notes will mature on August 25, 2026 unless earlier converted or repurchased at a conversion price of $1.15 per share of common stock. The Company may not redeem the notes prior to the maturity date. For the three and nine months ended September 30, 2023 interest expense related to the convertible debt was $ 9 9 1,100

INCOME TAXES

INCOME TAXES	9 Months Ended
	Sep. 30, 2023
Income Tax Disclosure [Abstract]
INCOME TAXES	NOTE 9— INCOME TAXES There are no taxes payable as of September 30, 2023, or December 31, 2022. Some of the federal tax carry forwards will expire at various dates through 2037. Generally, these can be carried forward and applied against future taxable income at the tax rate applicable at that time. We are currently using an effective income tax rate of 21% No Utilization of the net operating losses (NOL) carryforwards may be subject to a substantial annual limitation as required by Section 382 of the IRC, due to ownership changes of the company that could occur in the future, as well as similar state provisions. In general, an “ownership change” as defined by Section 382 results from a transaction or series of transactions over a three-year period resulting in an ownership change of more than 50 percentage points of the outstanding stock of a company by certain stockholders. These ownership changes may limit the amount of NOL carryforwards that can be utilized annually to offset future taxable income. In accordance with FASB ASC 740 “Income Taxes”, valuation allowances are provided against deferred tax assets, if based on the weight of available evidence, some or all, of the deferred tax assets may or will not be realized. The Company did not utilize any NOL deductions for the nine months ended September 30, 2023. The Company acquired certain assets and the business of Trust Codes Limited on March 1, 2023. Intangible assets have been established in the amount of $ 701 15 8 18 1,383

LEASES

LEASES	9 Months Ended
	Sep. 30, 2023
Leases
LEASES	NOTE 10– LEASES The Company accounts for its leases under Accounting Standard Codification (“ASC”) Topic 842, Leases. The Company determines at its inception whether an arrangement that provides us control over the use of an asset is a lease. We recognize at lease commencement a right-of-use (ROU) asset and lease liability based on the present value of the future lease payments over the lease term. We have elected not to recognize a ROU asset and lease liability for leases with terms of 12 months or less. Our current long-term leases include an option to extend the term of the lease prior to the end of the initial term. It is not reasonably certain that we will exercise the option and have not included the impact of the option in the lease term for purposes of determining total future lease payments. As our lease agreement does not explicitly state the discount rate implicit in the lease, we use our promissory note borrowing rate to calculate the present value of future payments. In addition to the base rent, real estate leases typically contain provisions for common-area maintenance and other similar services, which are considered non-lease components for accounting purposes. For our real estate leases, we apply a practical expedient to include these non-lease components in calculating the ROU asset and lease liability. For all other types of leases, non-lease components are excluded from our ROU assets and lease liabilities and expensed as incurred. We have operating leases for office facilities. We do not have any finance leases. Lease expenses are included in General & administrative expenses on the accompanying Consolidated Statements of Operations. The components of lease expense were as follows (in thousands): Schedule of components of lease expense Three months ended September 30, Nine months ended September 30, 2023 2022 2023 2022 Operating lease cost $ 47 $ 32 $ 132 $ 53 Short-term lease cost 5 4 23 11 Total lease costs $ 52 $ 36 $ 155 $ 64 Supplemental information related to leases was as follows (dollars in thousands): Schedule of supplemental information related to leases September 30, 2023 December 31, 2022 Operating Lease right-of-use asset $ 506 $ 469 Current portion of operating lease liabilities $ 160 $ 115 Non-current portion of operating lease liabilities 346 359 Total operating lease liabilities $ 506 $ 474 Cash paid for amounts included in the measurement of operating lease liabilities $ 138 $ 80 Right-of-use assets obtained in exchange for operating lease liabilities $ - $ 552 Weighted-average remaining lease term for operating leases (years) 3.3 Weighted average discount rate for operating leases 6.4 % The following is a reconciliation of future undiscounted cash flows to the operating lease liabilities on our consolidated balance sheets as of September 30, 2023 (in thousands): Schedule of operating lease liabilities maturities Year ended December 31, 2023 (Excluding nine months ended September 2023) $ 36 2024 188 2025 193 2026 139 2027 45 Thereafter Total future lease payments 601 Less: imputed interest (95 ) Present value of future lease payments 506 Less: current portion of lease liabilities (160 ) Long-term lease liabilities $ 346

CONCENTRATIONS

CONCENTRATIONS	9 Months Ended
	Sep. 30, 2023
Risks and Uncertainties [Abstract]
CONCENTRATIONS	NOTE 11– CONCENTRATIONS For the three months ended September 30, 2023 and 2022, one customer represented 23% 16% 18% 17% As of September 30, 2023, one customer made up 34% During the three and nine months ended September 30, 2023, one vendor accounted for 99%

SEGMENT REPORTING

SEGMENT REPORTING	9 Months Ended
	Sep. 30, 2023
Segment Reporting [Abstract]
SEGMENT REPORTING	NOTE 12 – SEGMENT REPORTING As of September 30, 2023, we operated through two reportable business segments: (i) Precision Logistics (formerly PeriShip Global Solutions) and (ii) Authentication (formerly VerifyMe Solutions). Precision Logistics: Authentication: We do not allocate the following items to the segments: general & administrative expenses, sales & marketing 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): Schedule of segment reporting information Three months ended Nine months ended 2023 2022 2023 2022 Revenue: Precision Logistics $ 5,457 $ 5,036 $ 16,085 $ 9,267 Authentication 147 179 515 606 Total Revenue $ 5,604 $ 5,215 $ 16,600 $ 9,873 Gross Profit: Precision Logistics $ 2,155 $ 1,722 $ 5,460 $ 3,231 Authentication 137 133 406 432 Total Gross Profit 2,292 1,855 5,866 3,663 General and administrative 2,754 2,213 7,852 6,213 Research and development 5 39 23 73 Sales and marketing 388 478 1,388 1,224 LOSS BEFORE OTHER (EXPENSE) INCOME (855 ) (875 ) (3,397 ) (3,847 ) OTHER (EXPENSE) INCOME (75 ) 318 5 (10,659 ) NET LOSS $ (930 ) $ (557 ) $ (3,392 ) $ (14,506 ) Additional information relating to our business segments is as follows (in thousands): Identifiable assets: Schedule of Identifiable assets As of September 30, 2023 December 31,2022 Precision Logistics $ 13,656 $ 17,302 Authentication 5,150 3,450 Total Assets $ 18,806 $ 20,752

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	9 Months Ended
	Sep. 30, 2023
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	NOTE 13 – SUBSEQUENT EVENTS On November 2, 2023 the Company issued 56,272 72,329 16,057 On November 3, 2023, PeriShip Global entered into a waiver and amendment to loan documents and received a waiver for certain events of default and entered into an amended and restated loan agreement with PNC effective October 31, 2023, which provided amendments to a number of affirmative and restrictive covenants applicable to PeriShip Global and extended the RLOC to September 30, 2024.

SUMMARY OF SIGNIFICANT ACCOUN_2

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	9 Months Ended
	Sep. 30, 2023
Accounting Policies [Abstract]
Nature of the Business	Nature of the Business VerifyMe, Inc. (“VerifyMe”) was incorporated in the State of Nevada November 10, 1999 VerifyMe, through PeriShip Global, is a software driven predictive analytics logistics provider of high-touch, end-to-end logistics management, which represents most of our current revenue stream. In addition, VerifyMe technologies provide product traceability and brand solutions. Our operations are split into two segments: Precision Logistics and Authentication. Through our Precision Logistics segment, we provide a value-added service for time and temperature sensitive parcel management driven by a proprietary software platform that provides predictive analytics from key metrics such as flight-tracking, weather, and traffic, all delivered to customers via a secure portal. The portal provides real-time visibility into shipment transit and last-mile events, with dynamic dashboards. All aspects of the shipping journey are managed by a dedicated service center. Using our proprietary logistics solution, 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. Through our Authentication segment, our technologies provide unit level traceability and brand solutions allowing brand owners to gather business intelligence, cross-sell products, monitor product diversion through the supply chain and build brand loyalty through interaction utilizing our unique dynamic codes which are read by consumers with their smart phones. The Company’s activities are subject to significant risks and uncertainties. See the “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections in this report.
Reclassifications	Reclassifications Certain amounts presented for the three and nine months ended September 30, 2022, reflect reclassifications made to conform to the presentation in our current reporting period. These reclassifications had no effect on the previously reported net loss.
Basis of Presentation	Basis of Presentation The accompanying unaudited interim consolidated financial statements (the “Interim Statements”) include the accounts of VerifyMe and its wholly owned subsidiaries PeriShip Global and Trust Codes Global. All significant intercompany balances and transactions have been eliminated upon consolidation. The consolidated financial statements have been prepared pursuant to the rules and regulations for reporting on Form 10-Q. Accordingly, certain information and disclosures required by U.S. generally accepted accounting principles (“GAAP”) for complete financial statements are not included herein. The Interim Statements should be read in conjunction with the financial statements and notes thereto included in the Company’s latest Annual Report on Form 10-K for the year ended December 31, 2022, as filed with the Securities and Exchange Commission (the “SEC”) on March 28, 2023. The accompanying Interim Statements are unaudited; however, in the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. The interim results for the three and nine months ended September 30, 2023, are not necessarily indicative of the results to be expected for the year ending December 31, 2023, or for any future interim periods.
Restricted Cash	Restricted Cash The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the consolidated balance sheets that sum to the total of the same such amounts in the consolidated statements of cash flows (dollars in thousands): Schedule of cash, cash equivalents and restricted cash As of September 30, 2023 December 31,2022 Cash and cash equivalents $ 2,944 $ 3,348 Restricted cash 63 63 Total cash and cash equivalents including restricted cash $ 3,007 $ 3,411 The Company classifies cash and cash equivalents that are restricted from operating use for the next twelve months as restricted cash. As of September 30, 2023, and December 31, 2022, the Company held $ 63
Segment Reporting	Segment Reporting Operating segments are defined as components of an enterprise for which separate financial information is available and evaluated regularly by the chief operating decision maker, or decision-making group, in deciding the method by which to allocate resources and assess performance. The Company has two reportable segments, namely, (i) Precision Logistics (formerly PeriShip Global) and (ii) Authentication (formerly VerifyMe Solutions). See Note 12 Segment Reporting, for further discussion of the Company’s segment reporting structure.
Foreign Currency Translation	Foreign Currency Translation The functional currency of our New Zealand operations is the local currency, New Zealand dollar (NZD). The translation of the foreign currency into U. S. dollars is performed for balance sheet accounts using current exchange rates in effect at the balance sheet date and for revenue and expense accounts using the weighted average exchange rates prevailing during the year. The unrealized gains and losses resulting from such translation are included as a component of comprehensive income. Translation gains and losses arising from currency exchange rate fluctuations on transactions denominated in a currency other than the local functional currency are included in “General and administrative” on our Consolidated Statements of Operations. The foreign currency transaction losses for the three and nine months ended September 30, 2023, were $ 16 30
Use of Estimates	Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates.
Recent Accounting Pronouncements	Recent Accounting Pronouncements In October 2021, the FASB issued Accounting Standards Update No. 2021-08, Accounting for Contract Assets and Contract Liabilities from Contracts with Customers
Fair Value of Financial Instruments	Fair Value of Financial Instruments The Company’s financial instruments consist of accounts receivable, unbilled revenue, accounts payable, notes payable and accrued expenses, equity investment, contingent consideration and long-term derivative liabilities. The carrying value of accounts receivable, accounts payable and accrued expenses approximate their fair value because of their short maturities. The Company believes the carrying amount of its notes payable approximates fair value based on rates and other terms currently available to the Company for similar debt instruments. The Company follows FASB ASC 820, “Fair Value Measurements and Disclosures,” and applies it to all assets and liabilities that are being measured and reported on a fair value basis. The statement requires that assets and liabilities carried at fair value will be classified and disclosed in one of the following three categories: Level 1: Quoted market prices in active markets for identical assets or liabilities Level 2: Observable market-based inputs or unobservable inputs that are corroborated by market data Level 3: Unobservable inputs that are not corroborated by market data The level in the fair value within which a fair value measurement falls is based on the lowest level input that is significant to the fair value measurement in its entirety. The following table presents the Company’s financial instruments that are measured and recorded at fair value on the Company’s balance sheets on a recurring basis, and their level within the fair value hierarchy as of September 30, 2023 and December 31, 2022. Amounts in Thousands ('000) Schedule of fair value assets measured on recurring basis Short Term Investment Derivative Asset Contingent Consideration (Level 1) (Level 2) (Level 3) Balance as of December 31, 2022 $ 100 (3 ) - Unrealized loss on fair value recognized in other income (expense) (2 ) - - Contingent Consideration at issuance - - (1,125 ) Change in fair value of Contingent Consideration - - 136 Change in fair value to interest rate, SWAP, recognized in other comprehensive loss - 4 - Balance at September 30, 2023 $ 98 $ 1 $ (989 )
Equity Investments	Equity Investments When the Company does not have a controlling financial interest in an entity but can exert influence over the entity’s operations and financial policies, the investment is accounted for either (i) under the equity method of accounting or (ii) at fair value by electing the fair value option available under applicable generally accepted accounting policies. The Company has elected the fair value option for its equity security under prepaid expenses and other current assets on the Consolidated Balance Sheets, as it has determined the fair value best reflects the economic performance of the equity investment. Changes in unrecognized gain or loss of the fair value of the equity investments are included in Other income (expense) on the accompanying Consolidated Statements of Operations.
Revenue Recognition	Revenue Recognition The Company accounts for revenues according to Accounting Standards Codification (“ASC”) Topic 606, “ Revenue from Contracts with Customers” The Company applies the following five steps, separated by reportable segments, in order to determine the appropriate amount of revenue to be recognized as it fulfills its obligations under each of its agreements. For more detailed information about reportable segments, see Note 12 – Segment reporting. · identify the contract with a customer; · identify the performance obligations in the contract; · determine the transaction price; · allocate the transaction price to performance obligations in the contract; and · recognize revenue as the performance obligation is satisfied. The Company generally considers completion of an agreement, or Statement of Work (“SOW”) and/or purchase order as a customer contract, provided collection is considered probable. Precision Logistics Our Precision Logistics segment consists of two service lines, Proactive and Premium. Under our Proactive service line, clients pay us directly for carrier service coupled with our proactive logistics service. Terms typically range 7 days and no longer than 30 days. The Company has determined it is the principal and recognizes shipment fees in gross revenue. Under our Premium service line, we provide complete white-glove shipping monitoring and predictive analytics services. This service includes customer web portal access, weather monitoring, temperature control, full service center support and last mile resolution. Payment terms are typically 30 days. Under both service lines in our Precision Logistics segment, our performance obligation is met, and revenue is recognized, when the packages are delivered. The transaction fees consist of fixed consideration made up of amounts contractually billed to the customer. There are no variable considerations in the transaction fee, in either service line. Authentication Our Authentication segment primarily consists of our brand protection service line which consists of a custom suite of products that offer clients traceability and brand solutions. Terms typically range between 30 and 90 days. Our performance obligation is met, and revenue is recognized, when our products are shipped or delivered depending on the specific agreement with the customer. The transaction fee is made up of fixed consideration based on the related purchase order or agreement. Warranties and other variable considerations are analyzed by the Company, in terms of historical warranties, current economic trends, and changes in customer demand, and have been determined to be insignificant in the nine months ended September 30, 2023.
Goodwill	Goodwill Goodwill represents the excess of purchase price over the fair value of net assets acquired in business combinations. Pursuant to ASC 350, the Company tests goodwill for impairment on an annual basis in the fourth quarter, or between annual tests, in certain circumstances. Under authoritative guidance, the Company first assesses qualitative factors to determine whether it was necessary to perform the quantitative goodwill impairment test. The assessment considers factors such as, but not limited to, macroeconomic conditions, data showing other companies in the industry and our share price. An entity is not required to calculate the fair value of a reporting unit unless the entity determines, based on a qualitative assessment, that it is more likely than not that its fair value is less than its carrying amount. Events or changes in circumstances which could trigger an impairment review include macroeconomic conditions, industry and market conditions, cost factors, overall financial performance, other entity specific events and sustained decrease in share price.
Business Combinations	Business Combinations The Company applies the provisions of Accounting Standard Codification (“ASC”) Topic 805, Business Combinations, in the accounting for business acquisitions. ASC 805 requires the Company to recognize separately from goodwill the assets acquired and the liabilities assumed at their acquisition date fair values. Goodwill as of the acquisition date is measured as the excess of consideration transferred over the net of the acquisition date fair values of the identifiable assets acquired and the liabilities assumed. While the Company uses its best estimates and assumptions to accurately apply preliminary value to assets acquired and liabilities assumed at the acquisition date, where applicable, these estimates are inherently uncertain and subject to refinement. As a result, during the measurement period, which may be up to one year from the acquisition date, the Company records adjustments in the current period, rather than a revision to a prior period. Upon the conclusion of the measurement period or final determination of the values of the assets acquired or liabilities assumed, whichever comes first, any subsequent adjustments are recorded in the Consolidated Statements of Operations. Accounting for business combinations requires management to make significant estimates and assumptions, especially at the acquisition date, including estimates for intangible assets where applicable. Although the Company believes the assumptions and estimates made have been reasonable and appropriate, they are based in part on information obtained from management of the acquired companies and are inherently uncertain. Unanticipated events and circumstances may occur that may affect the accuracy or validity of such assumptions, estimates, or actual results.
Basic and Diluted Net Loss per Share of Common Stock	Basic and Diluted Net Loss per Share of Common Stock The Company follows Financial Accounting Standards Board (“FASB”) ASC 260, “Earnings Per Share,” when reporting earnings per share resulting in the presentation of basic and diluted earnings per share. Because the Company reported a net loss for each of the periods presented, common stock equivalents, including preferred stock, stock options and warrants were anti-dilutive; therefore, the amounts reported for basic and diluted loss per share were the same. For the nine months ended September 30, 2023, and 2022, there were shares potentially issuable, that could dilute basic earnings per share in the future that were excluded from the calculation of diluted earnings per share because their inclusion would have been anti-dilutive to the Company’s losses during the periods presented. For the three and nine months ended September 30, 2023, there were approximately 8,385,000 2,348,000 307,000 4,629,000 957,000 144,000 months ended September 30, 2022, 4,852,000 757,000 337,000 3,614,000 1,545,000 144,000
Stock-Based Compensation	Stock-Based Compensation We account for stock-based compensation under the provisions of FASB ASC 718, “Compensation—Stock Compensation”, which requires the measurement and recognition of compensation expense for all stock-based awards made to employees and directors based on estimated fair values on the grant date. We estimate the fair value of stock options on the date of grant using the Black-Scholes model. The assumptions used in the Black-Scholes option pricing model include risk-free interest rates, expected volatility and expected life of the stock options. Changes in these assumptions can materially affect estimates of fair value stock-based compensation, and the compensation expense recorded in future periods. The value of the portion of the award that is ultimately expected to vest is recognized as an expense over the requisite service periods using the straight-line method. For performance restricted stock units with stock price appreciation targets (see Note 7 – Stock Options, Restricted Stock and Warrants), we applied a lattice approach that incorporated a Monte Carlo simulation, which involved random iterations that took different future price paths over the RSU’s contractual life based on the appropriate probability distributions (which are based on commonly applied Black Scholes inputs). The fair value was determined by taking the average of the grant date fair values under each Monte Carlo simulation trial. We recognize compensation expense on a straight-line basis over the performance period and there is no ongoing adjustment or reversal based on actual achievement during the period. We account for stock-based compensation awards to non-employees in accordance with ASU No. 2018-07, Compensation – Stock Based Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting (“ASU 2018-07”), which aligns accounting for share-based payments issued to nonemployees to that of employees under the existing guidance of Topic 718, with certain exceptions. This update supersedes previous guidance for equity-based payments to nonemployees under Subtopic 505-50, Equity – Equity-Based Payments to Non-Employees. All issuances of stock options or other equity instruments to non-employees as consideration for goods or services received by the Company are accounted for based on the fair value of the equity instruments issued. Non-employee equity-based payments are recorded as an expense over the service period, as if we had paid cash for the services. At the end of each financial reporting period, prior to vesting or prior to the completion of the services, the fair value of the equity-based payments will be re-measured, and the non-cash expense recognized during the period will be adjusted accordingly. Since the fair value of equity-based payments granted to non-employees is subject to change in the future, the amount of the future expense will include fair value re-measurements until the equity-based payments are fully vested or the service completed.

SUMMARY OF SIGNIFICANT ACCOUN_3

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)	9 Months Ended
	Sep. 30, 2023
Accounting Policies [Abstract]
Schedule of cash, cash equivalents and restricted cash	Schedule of cash, cash equivalents and restricted cash As of September 30, 2023 December 31,2022 Cash and cash equivalents $ 2,944 $ 3,348 Restricted cash 63 63 Total cash and cash equivalents including restricted cash $ 3,007 $ 3,411
Schedule of fair value assets measured on recurring basis	Schedule of fair value assets measured on recurring basis Short Term Investment Derivative Asset Contingent Consideration (Level 1) (Level 2) (Level 3) Balance as of December 31, 2022 $ 100 (3 ) - Unrealized loss on fair value recognized in other income (expense) (2 ) - - Contingent Consideration at issuance - - (1,125 ) Change in fair value of Contingent Consideration - - 136 Change in fair value to interest rate, SWAP, recognized in other comprehensive loss - 4 - Balance at September 30, 2023 $ 98 $ 1 $ (989 )

REVENUE (Tables)

REVENUE (Tables)	9 Months Ended
	Sep. 30, 2023
Revenue from Contract with Customer [Abstract]
Schedule of disaggregation of revenue	Schedule of disaggregation of revenue Authentication Precision Logistics Consolidated Revenue Three Months Ended Three Months Ended Three Months Ended 2023 2022 2023 2022 2023 2022 Proactive services $ - $ - $ 4,038 $ 4,026 $ 4,038 $ 4,026 Premium services - - 1,419 1,010 1,419 1,010 Brand protection services 147 179 - - 147 179 $ 147 $ 179 $ 5,457 $ 5,036 $ 5,604 $ 5,215 Authentication Precision Logistics Consolidated Revenue Nine Months Ended Nine Months Ended Nine Months Ended 2023 2022 2023 2022 2023 2022 Proactive services $ - $ - $ 12,742 $ 7,341 $ 12,742 $ 7,341 Premium services - - 3,343 1,926 3,343 1,926 Brand protection services 515 606 - - 515 606 $ 515 $ 606 $ 16,085 $ 9,267 $ 16,600 $ 9,873
Schedule of contract assets from contracts with customers	Schedule of contract assets from contracts with customers Contract Asset September 30, In Thousands 2023 2022 Beginning balance, January 1 $ 1,185 $ - Contract asset additions 2,316 1,317 Reclassification to accounts receivable, billed to customers (2,616 ) (622 ) Ending balance (1) $ 885 $ 695 ______________ (1) Included within "Unbilled revenue" on the accompanying Consolidated Balance sheets.

BUSINESS COMBINATIONS (Tables)

BUSINESS COMBINATIONS (Tables)	9 Months Ended
	Sep. 30, 2023
Business Combination and Asset Acquisition [Abstract]
Schedule of business acquisitions	Schedule of business acquisitions Cash $ 363 Fair value of contingent consideration 1,125 Stock (issuance of 353,492 shares of common stock) (a) 625 Total purchase price $ 2,113 Amortization Period Purchase price allocation: Prepaid expenses $ 25 Property and Equipment, net 18 ROU Asset 171 Developed Technology 485 8 Trade Names/Trademarks 148 18 Customer Relationships 68 10 Goodwill 1,383 Accounts payable and other accrued expenses (14 ) Current lease liability (63 ) Long term lease liability (108 ) $ 2,113 (a) Stock issued was calculated based on the 15 day volume-weighted average price (“VWAP”) through February 28, 2023 calculated at $1.8388.

INTANGIBLE ASSETS AND GOODWILL

INTANGIBLE ASSETS AND GOODWILL (Tables)	9 Months Ended
	Sep. 30, 2023
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of goodwill by reportable business segment	Schedule of goodwill by reportable business segment Authentication Precision Logistics Total Net book value at January 1, 2023 $ - $ 3,988 $ 3,988 2023 Activity Acquisition of Trust Codes Global 1,383 - 1,383 Foreign currency translation (58 ) - (58 ) Net book value at September 30, 2023 $ 1,325 $ 3,988 $ 5,313
Schedule of intangible assets subject to amortization	Schedule of intangible assets subject to amortization September 30, 2023 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Weighted Patents and Trademarks $ 2,045 $ (538 ) $ 1,507 13 Capitalized Software 161 (101 ) 60 2 Customer Relationships 1,904 (269 ) 1,635 9 Developed Technology 3,607 (789 ) 2,818 5 Internally Used Software 812 (40 ) 772 5 Non-Compete Agreement 191 (55 ) 136 4 Deferred Implementation 198 (19 ) 179 9 Total Intangible Assets $ 8,918 $ (1,811 ) $ 7,107 December 31, 2022 Patents and Trademarks $ 1,858 $ (445 ) $ 1,413 13 Capitalized Software 206 (91 ) 115 3 Customer Relationships 1,839 (133 ) 1,706 9 Developed Technology 3,143 (360 ) 2,783 5 Internally Used Software 236 (4 ) 232 6 Non-Compete Agreement 191 (28 ) 163 4 Deferred Implementation 140 (7 ) 133 10 Total Intangible Assets $ 7,613 $ (1,068 ) $ 6,545
Schedule of future amortization expense	Schedule of future amortization expense Fiscal Year ending December 31, 2023 (three months remaining) $ 291 2024 1,137 2025 1,112 2026 1,108 2027 1,073 Thereafter 2,386 Total $ 7,107

STOCK OPTIONS, RESTRICTED STO_2

STOCK OPTIONS, RESTRICTED STOCK AND WARRANTS (Tables)	9 Months Ended
	Sep. 30, 2023
Equity [Abstract]
Schedule of stock options	Schedule of stock options Options Outstanding Weighted - Average Remaining Aggregate Weighted- Contractual Intrinsic Number of Average Term Value Shares Exercise Price (in years) (in thousands) (1) Balance as of December 31, 2022 337,471 $ 4.63 Granted - - Forfeited/Cancelled/Expired (30,000 ) $ 4.67 Balance as of September 30, 2023 307,471 $ 4.62 Exercisable as of September 30, 2023 307,471 $ 4.62 1.4 $ - (1) The aggregate intrinsic value is calculated as the difference between the exercise price of the underlying awards and the quoted price of the Company’s common stock for options that were in-the-money at each respective period.
Schedule of unvested restricted stock awards	Schedule of unvested restricted stock awards Weighted - Average Number of Grant Award Shares Date Fair Value Unvested at December 31, 2022 41,808 3.24 Granted 506,194 1.45 Vested (131,333 ) 2.06 Balance September 30, 2023 416,669 $ 1.44
Schedule of unvested restricted stock units	Schedule of unvested restricted stock units Weighted - Average Number of Grant Unit Shares Date Fair Value Unvested at December 31, 2022 413,626 2.14 Granted 272,941 1.35 Vested (221,933 ) 2.93 Balance September 30, 2023 464,634 $ 1.30
Schedule of unvested performance restricted stock units	Schedule of unvested performance restricted stock units Weighted - Average Number of Number of Unit Shares Unit Shares Unvested at December 31, 2022 432,326 2.95 Granted 1,156,591 1.16 Forfeited/Cancelled (150,157 ) 2.95 Balance September 30, 2023 1,438,760 $ 1.51
Schedule of warrants outstanding	Schedule of warrants outstanding Number of Weighted- Average Exercise Price Weighted - Average Remaining Contractual Term in years) Aggregate Intrinsic Value (in thousands) (1) Balance as of December 31, 2022 5,103,455 $ 4.34 Granted - - Expired (474,869 ) 6.34 Balance as of September 30, 2023 4,628,586 $ 4.13 2.5 Exercisable as of September 30, 2023 4,628,586 $ 4.13 2.5 $ - (1) The aggregate intrinsic value is calculated as the difference between the exercise price of the underlying warrants and the closing stock price of $1.17 for our common stock on September 30, 2023.

LEASES (Tables)

LEASES (Tables)	9 Months Ended
	Sep. 30, 2023
Leases
Schedule of components of lease expense	Schedule of components of lease expense Three months ended September 30, Nine months ended September 30, 2023 2022 2023 2022 Operating lease cost $ 47 $ 32 $ 132 $ 53 Short-term lease cost 5 4 23 11 Total lease costs $ 52 $ 36 $ 155 $ 64
Schedule of supplemental information related to leases	Schedule of supplemental information related to leases September 30, 2023 December 31, 2022 Operating Lease right-of-use asset $ 506 $ 469 Current portion of operating lease liabilities $ 160 $ 115 Non-current portion of operating lease liabilities 346 359 Total operating lease liabilities $ 506 $ 474 Cash paid for amounts included in the measurement of operating lease liabilities $ 138 $ 80 Right-of-use assets obtained in exchange for operating lease liabilities $ - $ 552 Weighted-average remaining lease term for operating leases (years) 3.3 Weighted average discount rate for operating leases 6.4 %
Schedule of operating lease liabilities maturities	Schedule of operating lease liabilities maturities Year ended December 31, 2023 (Excluding nine months ended September 2023) $ 36 2024 188 2025 193 2026 139 2027 45 Thereafter Total future lease payments 601 Less: imputed interest (95 ) Present value of future lease payments 506 Less: current portion of lease liabilities (160 ) Long-term lease liabilities $ 346

SEGMENT REPORTING (Tables)

SEGMENT REPORTING (Tables)	9 Months Ended
	Sep. 30, 2023
Segment Reporting [Abstract]
Schedule of segment reporting information	Schedule of segment reporting information Three months ended Nine months ended 2023 2022 2023 2022 Revenue: Precision Logistics $ 5,457 $ 5,036 $ 16,085 $ 9,267 Authentication 147 179 515 606 Total Revenue $ 5,604 $ 5,215 $ 16,600 $ 9,873 Gross Profit: Precision Logistics $ 2,155 $ 1,722 $ 5,460 $ 3,231 Authentication 137 133 406 432 Total Gross Profit 2,292 1,855 5,866 3,663 General and administrative 2,754 2,213 7,852 6,213 Research and development 5 39 23 73 Sales and marketing 388 478 1,388 1,224 LOSS BEFORE OTHER (EXPENSE) INCOME (855 ) (875 ) (3,397 ) (3,847 ) OTHER (EXPENSE) INCOME (75 ) 318 5 (10,659 ) NET LOSS $ (930 ) $ (557 ) $ (3,392 ) $ (14,506 )
Schedule of Identifiable assets	Schedule of Identifiable assets As of September 30, 2023 December 31,2022 Precision Logistics $ 13,656 $ 17,302 Authentication 5,150 3,450 Total Assets $ 18,806 $ 20,752

SUMMARY OF SIGNIFICANT ACCOUN_4

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022	Sep. 30, 2022	Dec. 31, 2021
Accounting Policies [Abstract]
Cash and cash equivalents	$ 2,944	$ 3,348
Restricted cash	63	63
Total cash and cash equivalents including restricted cash	$ 3,007	$ 3,411	$ 3,694	$ 9,422

SUMMARY OF SIGNIFICANT ACCOUN_5

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 1) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022
Platform Operator, Crypto-Asset [Line Items]
Derivative liability at beginning	$ 3
Change in fair value of Contingent Consideration	136
Derivative liability at ending
Fair Value, Inputs, Level 1 [Member] | Fair Value, Recurring [Member]
Platform Operator, Crypto-Asset [Line Items]
Short term investment at beginning	100
Unrealized loss on fair value recognized in other income (expense)	(2)
Short term investment at ending	98
Fair Value, Inputs, Level 2 [Member] | Fair Value, Recurring [Member]
Platform Operator, Crypto-Asset [Line Items]
Derivative liability at beginning	(3)
Change in fair value to interest rate, SWAP, recognized in other comprehensive loss	4
Derivative liability at ending	1
Fair Value, Inputs, Level 3 [Member] | Fair Value, Recurring [Member]
Platform Operator, Crypto-Asset [Line Items]
Contingent Consideration at beginning
Contingent Consideration at issuance	(1,125)
Change in fair value of Contingent Consideration	136
Contingent consideration at ending	$ (989)

SUMMARY OF SIGNIFICANT ACCOUN_6

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022	Dec. 31, 2022
Restricted cash	$ 63		$ 63		$ 63
Foreign currency transaction losses	$ 16		$ 30
Anti-dilutive shares	8,385,000	4,852,000	8,385,000	4,852,000
Restricted Stock [Member]
Anti-dilutive shares	2,348,000	757,000	2,348,000	757,000
Share-Based Payment Arrangement, Option [Member]
Anti-dilutive shares	307,000	337,000	307,000	337,000
Warrant [Member]
Anti-dilutive shares	4,629,000	3,614,000	4,629,000	3,614,000
Conversion Convertible Debt [Member]
Anti-dilutive shares	957,000		957,000
Preferred Stock [Member]
Anti-dilutive shares	144,000	144,000	144,000	144,000
Warrants Not Exercisable [Member]
Anti-dilutive shares		1,545,000		1,545,000
Verify Me Inc [Member]
State of incorporation			Nevada
State of incorporation			Nov. 10, 1999

EQUITY INVESTMENTS (Details Nar

EQUITY INVESTMENTS (Details Narrative) $ / shares in Units, $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 30, 2023 USD ($)	Sep. 30, 2023 USD ($)	Dec. 31, 2022 USD ($)	Dec. 31, 2021 USD ($) $ / shares
Equity investments fair value	$ 0
Unrealized fair value loss		$ 2
Fair value of equity investment	$ 98	$ 98	$ 100
Series D Preferred Stock [Member]
Cumulative convertible preferred stock value				$ 8,841
Cumulative convertible preferred stock ratio				0.10
Cumulative convertible preferred stock price | $ / shares				$ 10

REVENUE (Details)

REVENUE (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Disaggregation of Revenue [Line Items]
Revenues	$ 5,604	$ 5,215	$ 16,600	$ 9,873
Proactive Services [Member]
Disaggregation of Revenue [Line Items]
Revenues	4,038	4,026	12,742	7,341
Premium Services [Member]
Disaggregation of Revenue [Line Items]
Revenues	1,419	1,010	3,343	1,926
Brand Protection Services [Member]
Disaggregation of Revenue [Line Items]
Revenues	147	179	515	606
Parent Company [Member]
Disaggregation of Revenue [Line Items]
Revenues	147	179	515	606
Parent Company [Member] | Proactive Services [Member]
Disaggregation of Revenue [Line Items]
Revenues
Parent Company [Member] | Premium Services [Member]
Disaggregation of Revenue [Line Items]
Revenues
Parent Company [Member] | Brand Protection Services [Member]
Disaggregation of Revenue [Line Items]
Revenues	147	179	515	606
Subsidiaries [Member]
Disaggregation of Revenue [Line Items]
Revenues	5,457	5,036	16,085	9,267
Subsidiaries [Member] | Proactive Services [Member]
Disaggregation of Revenue [Line Items]
Revenues	4,038	4,026	12,742	7,341
Subsidiaries [Member] | Premium Services [Member]
Disaggregation of Revenue [Line Items]
Revenues	1,419	1,010	3,343	1,926
Subsidiaries [Member] | Brand Protection Services [Member]
Disaggregation of Revenue [Line Items]
Revenues

REVENUE (Details 1)

REVENUE (Details 1) - USD ($) $ in Thousands		9 Months Ended
		Sep. 30, 2023	Sep. 30, 2022
Revenue from Contract with Customer [Abstract]
Beginning balance		$ 1,185
Contract asset additions		2,316	1,317
Reclassification to accounts receivable, billed to customers		(2,616)	(622)
Ending balance	[1]	$ 885	$ 695
[1]Included within "Unbilled revenue" on the accompanying Consolidated Balance sheets.

BUSINESS COMBINATIONS (Details)

BUSINESS COMBINATIONS (Details) - USD ($) $ in Thousands		Mar. 01, 2023	Sep. 30, 2023	Dec. 31, 2022
Business Acquisition [Line Items]
Goodwill		$ 1,383	$ 5,313	$ 3,988
Trust Codes Global Limited [Member]
Business Acquisition [Line Items]
Cash		363
Fair value of contingent consideration		1,125
Stock (issuance of 353,492 shares of restricted common stock)	[1]	625
Total purchase price		2,113
Prepaid expenses		25
Property and Equipment, net		18
ROU Asset		171
Goodwill		1,383
Accounts payable and other accrued expenses		(14)
Current lease liability		(63)
Long term lease liability		(108)
Total purchase price allocation		2,113
Trust Codes Global Limited [Member] | Developed Technology Rights [Member]
Business Acquisition [Line Items]
Intangible Assets		$ 485
Amortization Period		8 years
Trust Codes Global Limited [Member] | Trademarks [Member]
Business Acquisition [Line Items]
Intangible Assets		$ 148
Amortization Period		18 years
Trust Codes Global Limited [Member] | Customer Relationships [Member]
Business Acquisition [Line Items]
Intangible Assets		$ 68
Amortization Period		10 years
[1]Stock issued was calculated based on the 15 day volume-weighted average price (“VWAP”) through February 28, 2023 calculated at $1.8388.

BUSINESS COMBINATIONS (Details

BUSINESS COMBINATIONS (Details Narrative) - USD ($) $ in Thousands		9 Months Ended
	Mar. 01, 2023	Sep. 30, 2023	Dec. 31, 2022
Business Acquisition [Line Items]
Consideration transferred	$ 360
Common stock shares, issued		10,270,400	9,341,002
Earn-out consideration	1,100
Revenue from acquisitions		$ 219
Current liability	162
Long term contingent consideration	827
Business Combination [Member]
Business Acquisition [Line Items]
Purchase price	1,000
Stock consideration amount	650
Acquisition related costs	$ 278
Business Combination [Member] | Restricted Stock [Member]
Business Acquisition [Line Items]
Common stock shares, issued	353,492

INTANGIBLE ASSETS AND GOODWIL_2

INTANGIBLE ASSETS AND GOODWILL (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2023 USD ($)
Beginning balance	$ 3,988
Acquisition of Trust Codes Global	1,383
Foreign currency translation	(58)
Ending balance	5,313
Parent Company [Member]
Beginning balance
Acquisition of Trust Codes Global	1,383
Foreign currency translation	(58)
Ending balance	1,325
Subsidiaries [Member]
Beginning balance	3,988
Acquisition of Trust Codes Global
Foreign currency translation
Ending balance	$ 3,988

INTANGIBLE ASSETS AND GOODWIL_3

INTANGIBLE ASSETS AND GOODWILL (Details 1) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 8,918	$ 7,613
Accumulated Amortization	(1,811)	(1,068)
Net Carrying Amount	7,107	6,545
Trademarks [Member]
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	2,045	1,858
Accumulated Amortization	(538)	(445)
Net Carrying Amount	$ 1,507	$ 1,413
Weighted average useful life (years)	13 years	13 years
Capitalized Software [Member]
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 161	$ 206
Accumulated Amortization	(101)	(91)
Net Carrying Amount	$ 60	$ 115
Weighted average useful life (years)	2 years	3 years
Customer Relationships [Member]
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 1,904	$ 1,839
Accumulated Amortization	(269)	(133)
Net Carrying Amount	$ 1,635	$ 1,706
Weighted average useful life (years)	9 years	9 years
Developed Technology Rights [Member]
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 3,607	$ 3,143
Accumulated Amortization	(789)	(360)
Net Carrying Amount	$ 2,818	$ 2,783
Weighted average useful life (years)	5 years	5 years
Internally Used Software [Member]
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 812	$ 236
Accumulated Amortization	(40)	(4)
Net Carrying Amount	$ 772	$ 232
Weighted average useful life (years)	5 years	6 years
Noncompete Agreements [Member]
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 191	$ 191
Accumulated Amortization	(55)	(28)
Net Carrying Amount	$ 136	$ 163
Weighted average useful life (years)	4 years	4 years
Deferred Implementation [Member]
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 198	$ 140
Accumulated Amortization	(19)	(7)
Net Carrying Amount	$ 179	$ 133
Weighted average useful life (years)	9 years	10 years

INTANGIBLE ASSETS AND GOODWIL_4

INTANGIBLE ASSETS AND GOODWILL (Details 2) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Goodwill and Intangible Assets Disclosure [Abstract]
2023 (three months remaining)	$ 291
2024	1,137
2025	1,112
2026	1,108
2027	1,073
Thereafter	2,386
Total	$ 7,107	$ 6,545

INTANGIBLE ASSETS AND GOODWIL_5

INTANGIBLE ASSETS AND GOODWILL (Details Narrative) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Finite-Lived Intangible Assets [Line Items]
Amortization of intangible assets	$ 266	$ 248	$ 761	$ 446
Intangible asset impairment			34
Developed Technology Rights [Member]
Finite-Lived Intangible Assets [Line Items]
Intangible asset impairment			28
Patents [Member]
Finite-Lived Intangible Assets [Line Items]
Intangible asset impairment			$ 6

STOCKHOLDERS_ EQUITY (Details N

STOCKHOLDERS’ EQUITY (Details Narrative) - USD ($) $ / shares in Units, $ in Thousands		1 Months Ended	3 Months Ended		9 Months Ended
	Jul. 02, 2022	Feb. 28, 2023	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022	Aug. 31, 2023	Dec. 31, 2022	Aug. 31, 2022	Feb. 28, 2022
Accumulated Other Comprehensive Income (Loss) [Line Items]
Restricted stock award, expense			$ 177	$ 33	$ 325	$ 206
Restricted stock units, expense			316	289	728	766
Stock-based compensation expense			$ 5	$ 31	$ 46	98
Treasury stock share			334,866		334,866			389,967
Treasury stock value			$ 748		$ 748			$ 949
Non-qualified stock purchase plan		57,245					12,802		28,895	25,000
Non-qualified stock purchase exercise price		$ 1.19					$ 0.96		$ 1.20	$ 2.69
Share repurchase program	$ 1,500
Repurchased shares of common stock			6,201		6,201
Repurchased shares of common stock, amount			$ 10		$ 10
Plan 2021 [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Stock-based compensation expense					$ 80	$ 102
Common Stock [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Stock issued for services		353,492				30,000

STOCK OPTIONS, RESTRICTED STO_3

STOCK OPTIONS, RESTRICTED STOCK AND WARRANTS (Details) - Share-Based Payment Arrangement, Option [Member]	9 Months Ended
	Sep. 30, 2023 USD ($) $ / shares shares
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Balance at beginning | shares	337,471
Weighted average exercise price, balance at beginning | $ / shares	$ 4.63
Granted | shares
Weighted average exercise price, granted | $ / shares
Forfeited/cancelled/expired | shares	(30,000)
Weighted average exercise price, forfeited/cancelled/expired | $ / shares	$ 4.67
Balance at ending | shares	307,471
Balance at ending | $ / shares	$ 4.62
Vested and exercisable at ending | shares	307,471
Weighted average exercise price, balance at ending | $ / shares	$ 4.62
Weighted average remaining contractual term, exercisable at ending	1 year 4 months 24 days
Vested and exercisable at ending | $		[1]
[1]The aggregate intrinsic value is calculated as the difference between the exercise price of the underlying awards and the quoted price of the Company’s common stock for options that were in-the-money at each respective period.

STOCK OPTIONS, RESTRICTED STO_4

STOCK OPTIONS, RESTRICTED STOCK AND WARRANTS (Details 1) - Restricted Stock [Member]	9 Months Ended
	Sep. 30, 2023 $ / shares shares
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Balance at beginning | shares	41,808
Weighted - average grant date fair value, balance at beginning | $ / shares	$ 3.24
Granted | shares	506,194
Weighted - average grant date fair value, granted | $ / shares	$ 1.45
Vested | shares	(131,333)
Weighted - average grant date fair value, vested | $ / shares	$ 2.06
Balance at ending | shares	416,669
Weighted - average grant date fair value, balance at ending | $ / shares	$ 1.44

STOCK OPTIONS, RESTRICTED STO_5

STOCK OPTIONS, RESTRICTED STOCK AND WARRANTS (Details 2) - Restricted Stock Units [Member]	9 Months Ended
	Sep. 30, 2023 $ / shares shares
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Balance at beginning | shares	413,626
Weighted - average grant date fair value, balance at beginning | $ / shares	$ 2.14
Granted | shares	272,941
Weighted - average grant date fair value, granted | $ / shares	$ 1.35
Vested | shares	(221,933)
Weighted - average grant date fair value, vested | $ / shares	$ 2.93
Balance at ending | shares	464,634
Weighted - average grant date fair value, balance at ending | $ / shares	$ 1.30

STOCK OPTIONS, RESTRICTED STO_6

STOCK OPTIONS, RESTRICTED STOCK AND WARRANTS (Details 3) - Nonvested Stock Options [Member]	9 Months Ended
	Sep. 30, 2023 $ / shares shares
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Balance at beginning | shares	432,326
Balance at beginning, weighted average grant date fair value | $ / shares	$ 2.95
Granted | shares	1,156,591
Granted, weighted average grant date fair value | $ / shares	$ 1.16
Forfeited/Cancelled | shares	(150,157)
Forfeited/Cancelled, weighted average grant date fair value | $ / shares	$ 2.95
Balance at ending | shares	1,438,760
Balance at ending, weighted average grant date fair value | $ / shares	$ 1.51

STOCK OPTIONS, RESTRICTED STO_7

STOCK OPTIONS, RESTRICTED STOCK AND WARRANTS (Details 4)	9 Months Ended
	Sep. 30, 2023 USD ($) $ / shares shares
Equity [Abstract]
Number of warrants outstanding, beginning balance | shares	5,103,455
Weighted average exercise price, beginning balance | $ / shares	$ 4.34
Number of warrants outstanding, granted | shares
Weighted average exercise price, granted | $ / shares
Number of warrants outstanding, expired | shares	(474,869)
Weighted average exercise price, expired | $ / shares	$ 6.34
Number of warrants outstanding, ending Balance | shares	4,628,586
Weighted average exercise price, ending balance | $ / shares	$ 4.13
Weighted average remaining contractual terms	2 years 6 months
Number of warrants outstanding, exercisable | shares	4,628,586
Weighted average exercise price, exercisable | $ / shares	$ 4.13
Weighted average remaining contractual terms, exercisable	2 years 6 months
Aggregate intrinsic value, exercisable | $		[1]
[1]The aggregate intrinsic value is calculated as the difference between the exercise price of the underlying warrants and the closing stock price of $1.17 for our common stock on September 30, 2023.

STOCK OPTIONS, RESTRICTED STO_8

STOCK OPTIONS, RESTRICTED STOCK AND WARRANTS (Details Narrative) - USD ($) $ in Thousands				1 Months Ended	9 Months Ended
	Jun. 09, 2022	Aug. 10, 2020	Nov. 14, 2017	Mar. 28, 2022	Sep. 30, 2023	Sep. 30, 2022	Dec. 31, 2013
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Unrecognized compensation cost					$ 0
Equity Incentive Plan2017 [Member] | Board of Directors Chairman [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Shares authorized for potential issuance		1,069,110	260,000
Equity investments fair value | Board of Directors Chairman [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Shares authorized for potential issuance	3,069,100			2,069,100
Issued Under The 2020 Plan [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Incentive stock options granted					1,000,000
Stock Options Restricted Stockand Unitsand Other Stockbased Awards [Member] | Omnibus Equity Compensation Plan2013 [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Number of shares authorized to grand awards							400,000
Incentive Stock Options [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Exercise price, description					In connection with incentive stock options, the exercise price of each option may not be less than 100% of the fair market value of the common stock on the date of the grant (or 110% of the fair market value in the case of a grantee holding more than 10% of the outstanding stock of the Company).
Equity Option [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Stock or Unit Option Plan Expense					$ 0	$ 0
Restricted Stock [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Unvested restricted stock awards					411
Restricted Stock Units [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Unvested restricted stock awards					$ 401
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Vested and Expected to Vest, Exercisable, Weighted Average Remaining Contractual Term					1 year 4 months 24 days
Nonvested Stock Options [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Incentive stock options granted					1,156,591
Unvested restricted stock awards					$ 1,373
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Vested and Expected to Vest, Exercisable, Weighted Average Remaining Contractual Term					1 year 10 months 24 days

DEBT (Details Narrative)

DEBT (Details Narrative) - USD ($) $ in Thousands	1 Months Ended		3 Months Ended	9 Months Ended
	Aug. 25, 2023	Oct. 17, 2022	Sep. 30, 2023	Sep. 30, 2023
Debt Disclosure [Abstract]
Short term debt outstanding			$ 500	$ 500
Long-term debt outstanding			1,000	1,000
Principal outstanding				375
Drawn from RLOC			800	800
Repay to RLOC				300
Outstanding on RLOC				500
Notional amount		$ 1,958
Interest rate		7.602%
Principal amount	$ 1,100
Convertible promissory notes purchased by related party	$ 425
Interest expense			9	9
Convertible debt			$ 1,100	$ 1,100

INCOME TAXES (Details Narrative

INCOME TAXES (Details Narrative) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2023	Mar. 01, 2023	Dec. 31, 2022
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items]
Effective income tax rate	21%
Taxes payable	$ 0		$ 0
Intangible assets	$ 701
Amortization	15 years
Goodwill	$ 5,313	$ 1,383	$ 3,988
Minimum [Member]
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items]
Amortization	8 years
Maximum [Member]
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items]
Amortization	18 years

LEASES (Details)

LEASES (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Leases
Operating lease cost	$ 47	$ 32	$ 132	$ 53
Short-term lease cost	5	4	23	11
Total lease costs	$ 52	$ 36	$ 155	$ 64

LEASES (Details 1)

LEASES (Details 1) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Leases
Operating Lease right-of-use asset	$ 506	$ 469
Current portion of operating lease liabilities	160	115
Non-current portion of operating lease liabilities	346	359
Total operating lease liabilities	506	474
Cash paid for amounts included in the measurement of operating lease liabilities	138	80
Right-of-use assets obtained in exchange for operating lease liabilities		$ 552
Weighted-average remaining lease term for operating leases (years)	3 years 3 months 18 days
Weighted average discount rate for operating leases	6.40%

LEASES (Details 2)

LEASES (Details 2) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Leases
2023 (Excluding nine months ended September 2023)	$ 36
2024	188
2025	193
2026	139
2027	45
Total future lease payments	601
Less: imputed interest	(95)
Present value of future lease payments	506	$ 474
Less: current portion of lease liabilities	(160)	(115)
Long-term lease liabilities	$ 346	$ 359

CONCENTRATIONS (Details Narrati

CONCENTRATIONS (Details Narrative)	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Revenue Benchmark [Member] | Customer Concentration Risk [Member] | One Customer [Member]
Concentration Risk [Line Items]
Concentration risk, percentage	23%	16%	18%	17%
Accounts Receivable [Member] | Customer Concentration Risk [Member] | One Customer [Member]
Concentration Risk [Line Items]
Concentration risk, percentage			34%
Transportation Cost [Member] | Product Concentration Risk [Member] | One Vendor [Member]
Concentration Risk [Line Items]
Concentration risk, percentage	99%		99%

SEGMENT REPORTING (Details)

SEGMENT REPORTING (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Total Revenue	$ 5,604	$ 5,215	$ 16,600	$ 9,873
Gross Profit	2,292	1,855	5,866	3,663
General and administrative	2,754	2,213	7,852	6,213
Research and development	5	39	23	73
Sales and marketing	388	478	1,388	1,224
LOSS BEFORE OTHER (EXPENSE) INCOME	(855)	(875)	(3,397)	(3,847)
OTHER (EXPENSE) INCOME	(75)	318	5	(10,659)
NET LOSS	(930)	(557)	(3,392)	(14,506)
Precision Logistics [Member]
Total Revenue	5,457	5,036	16,085	9,267
Gross Profit	2,155	1,722	5,460	3,231
Authentication [Member]
Total Revenue	147	179	515	606
Gross Profit	$ 137	$ 133	$ 406	$ 432

SEGMENT REPORTING (Details 1)

SEGMENT REPORTING (Details 1) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Total Assets	$ 18,806	$ 20,752
Precision Logistics [Member]
Total Assets	13,656	17,302
Authentication [Member]
Total Assets	$ 5,150	$ 3,450

SUBSEQUENT EVENTS (Details Narr

SUBSEQUENT EVENTS (Details Narrative) - Subsequent Event [Member]	Nov. 02, 2023 shares
Subsequent Event [Line Items]
Shares issued	56,272
Shares vested	72,329
Shares withheld for taxes	16,057