Financial Data and Key Metrics Changes - The annual revenue for 2024 was 4% below the revenue in 2023, with Q4 revenue at $7.7 million compared to $8.7 million in Q4 2023, a decrease of $1 million [7][15] - Gross profit decreased by $0.5 million to $2.4 million in Q4 2024 versus $2.9 million in Q4 2023, with a gross margin of 32% in Q4 2024 compared to 33% in Q4 2023 [16][17] - Full-year gross margin improved to 36% in 2024 from 32% in 2023 [17] - The net loss for Q4 was $0.5 million, or a loss of $0.05 per diluted share, compared to net income of less than $0.1 million in Q4 2023 [18] Business Line Data and Key Metrics Changes - In the Precision Logistics segment, the number of proactive customers increased by 6% over 2023, but shipments by existing customers in the proactive service line were down 6% in 2024 [11][12] - The Authentication segment experienced a divestiture of the Trust Codes Global business, which had an operating loss of $1.2 million in 2024 [13] Market Data and Key Metrics Changes - The overall market conditions appear to be down slightly, with a decrease in the total number of shipments [32] - The loss of one significant customer continues to impact performance, particularly in the Premium services [31][36] Company Strategy and Development Direction - The company is focusing on reducing investments in areas that do not yield desired returns and is working on strategic investments to enhance shareholder value [8][10] - There is an emphasis on optimizing sales strategies and exploring avenues for expansion in the Precision Logistics segment [23] Management's Comments on Operating Environment and Future Outlook - Management indicated that 2024 was a transition year and expressed optimism about the foundation laid for future growth [45] - The company does not plan to provide guidance for 2025 due to unpredictable market conditions and the need to align costs with revenue changes [36][38] Other Important Information - The company completed a $4.7 million warrant inducement capital raise and retired its bank debt, reducing convertible debt from $1.1 million to $800,000 [8][9] - As of December 31, 2024, cash was $2.8 million, a decrease from $3.1 million on December 31, 2023 [19][20] Q&A Session Summary Question: Expected share count for Q1 - The expected share count for Q1 is about 12.5 million [29] Question: Commentary on logistics trends in Q1 - The loss of a significant customer will continue to impact Q1 and Q2, but the proactive business remains stable [31][32] Question: Guidance for 2025 - The company has not provided guidance for 2025 and does not plan to do so, citing stability in the business aside from the lost customer [36][38] Question: Modeling assumptions for Q1 and Q2 - It is reasonable to model a low double-digit decline on the topline through the first half due to the loss of the customer [39][40]