Financial Data and Key Metrics Changes - The company's Q3 2025 revenue was $5.0 million, down from $5.4 million in Q3 2024, a decrease of $0.4 million primarily due to $0.8 million from discontinued services with two proactive customers [8] - Gross profit increased by $0.2 million to $2.1 million in Q3 2025 compared to $1.9 million in Q3 2024, with gross margin rising to 41% from 35% [8][10] - The net loss for Q3 2025 was $3.4 million, or $0.26 per diluted share, compared to a net loss of $2.9 million, or $0.23 per diluted share in Q3 2024 [10] Business Line Data and Key Metrics Changes - PeriShip revenue decreased approximately 14% in Q2 2025 compared to the previous year, but the gross margin improved to 35% from 33% in Q1 2025 [4] - In Q3 2025, revenue was down only approximately 7% from the prior year due to sales and marketing efforts, although these efforts only partially offset the impact of contract changes [4][5] Market Data and Key Metrics Changes - The transition to a new proactive shipping partner is expected to materially impact Q4 2025 and Q1 2026 revenues, with no guidance provided for 2026 at this time [5][9] - The company anticipates remaining cash flow positive for the full year of 2025 despite expected revenue decreases [12] Company Strategy and Development Direction - The company is focused on transitioning to a new proactive shipping partner, which is believed to provide a better long-term platform for sustained organic growth [5][13] - The management emphasizes the importance of maintaining customer loyalty during the transition period and is actively working to address customer concerns regarding the change [21][22] Management Comments on Operating Environment and Future Outlook - Management acknowledges the challenges posed by the transition from the previous shipping partner and the impact on revenue, but remains optimistic about future growth opportunities [5][13] - The company plans to provide specific guidance for 2026 during the next earnings call, indicating a commitment to transparency and strategic planning [5][34] Other Important Information - A one-time non-cash impairment expense of $3.9 million was recognized in Q3 2025, related to goodwill and intangible assets in the PeriShip business [9][10] - The company has a strong balance sheet with no bank debt and continues to explore potential M&A opportunities [12][27] Q&A Session Summary Question: Revenue contribution from the proactive business that ended in September - Management indicated that they do not have a precise figure for the revenue contribution from the proactive business that is no longer part of the mix, as it is a dynamic situation [19][24] Question: Transition of customers to the new shipping partner - Management stated that not all customers will transition to the new partner, and some may delay their transition until after the peak shipping season [20][21] Question: Cash on the balance sheet and potential M&A - Management confirmed ongoing discussions regarding potential acquisitions but emphasized the difficulty in predicting timing and outcomes [27] Question: Operating expense improvement related to TrustCodes - Approximately $500,000 of operating expenses in Q3 2024 were associated with TrustCodes, contributing to the overall improvement in operating expenses [29]

Financial Data and Key Metrics Changes - Revenue for Q1 2025 was $4.5 million, a decrease of approximately 23% compared to $5.8 million in Q1 2024, primarily due to the discontinuation of TrustCo's operations and a softening of customer shipments [4][12] - Gross profit decreased by $800,000 to $1.5 million in Q1 2025 from $2.3 million in Q1 2024, with gross margin at 33% compared to 39% in the prior year [12][13] - Operating expenses were reduced by approximately 28% to $2.1 million in Q1 2025 from $2.9 million in Q1 2024, helping to offset the decrease in gross margin [5][13] - The net loss for the quarter was $600,000, or a loss of $0.05 per diluted share, consistent with Q1 2024 [13] Business Line Data and Key Metrics Changes - The decline in revenue was most pronounced in premium services, which were down 47% compared to the same quarter last year [4] - Improvements in gross margin were noted in proactive services within the Precision Logistics segment, which is viewed as a key area for organic growth [5] Market Data and Key Metrics Changes - The overall market environment remains challenging, with a noted softening in customer demand across several proactive customers, particularly in e-commerce [46] - New customer additions have slowed down, and existing customers are experiencing a softening in demand, impacting overall revenue [45][46] Company Strategy and Development Direction - The company is focusing on three elements for organic growth: optimizing direct customer marketing and sales, developing relationships with additional freight carriers, and integrating with technology platforms related to e-commerce [7][9] - Strategic growth efforts include pursuing transformative and tuck-in acquisitions, leveraging the strong balance sheet and cash flow to create shareholder value [10][49] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the current macroeconomic challenges but remains optimistic about the company's ability to create shareholder value through strategic initiatives and a strong cash position [6][54] - The company is focused on maximizing upside opportunities in a changing logistics marketplace, which is becoming more receptive to new ideas and partnerships [55][56] Other Important Information - The company had a cash balance of $5.7 million at the end of Q1 2025, with no bank debt and only $800,000 remaining on convertible notes held by insiders [6][14] - Nancy Meyers, the CFO, announced her retirement, with Jennifer Colo set to take over the role [16][19] Q&A Session Summary Question: What are the capital allocation priorities moving forward? - The company is prioritizing organic growth investments funded by business operations, with a focus on integrating with e-commerce platforms and expanding customer relationships [24][26] Question: What is the revenue generation for the authentication business in the quarter? - The revenue for the authentication business was $26,000 [31] Question: Should revenue comparisons be expected to improve in the second half of the year? - Revenue comparisons are expected to remain challenging in Q2, with hopes for improvement in the second half of the year [35][38] Question: How are new customers performing and what is the outlook for existing customers? - New customer additions have slowed, and existing customers are experiencing a softening in demand, impacting overall revenue [45][46] Question: What is the latest update on the ink business and strategic discussions? - The company is exploring potential acquisitions that could synergize with its ink business, but the focus remains on opportunities within Precision Logistics [49]