|
|
REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR (g) OF THE SECURITIES EXCHANGE ACT OF 1934
|
|
|
ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE FISCAL YEAR ENDED
|
|
|
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
|
|
SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
|
Large accelerated filer ☐
|
Accelerated filer ☐
|
|
|
|
International Financial Reporting Standards as issued by the International Accounting Standards Board ☐
|
Other ☐
|
|
Table of Contents
|
||
| 4 | ||
| 4 | ||
| 4 | ||
| 4 | ||
| 11 | ||
| 21 | ||
| 32 | ||
| 36 | ||
| 37 | ||
| 39 | ||
|
40 | ||
| 57 | ||
| 58 | ||
| 58 | ||
| 58 | ||
| 58 | ||
| 58 | ||
| 58 | ||
| 58 | ||
| 59 | ||
|
59 | ||
|
59 | ||
| 59 | ||
| 59 | ||
|
60 | ||
| 60 | ||
| 60 | ||
| 60 | ||
| 60 | ||
|
61 | ||
|
Exhibits |
61 | |
|
(U.S. Dollars in Thousands) |
||||||||||||||||||||
|
December 31, |
||||||||||||||||||||
|
2025 |
2024 |
2023 |
2022 |
2021 |
||||||||||||||||
|
Cash and cash equivalents |
$ |
16,890 |
$ |
64,668 |
$ |
55,222 |
$ |
50,937 |
$ |
88,753 |
||||||||||
|
Restricted cash |
1,110 |
2,858 |
9,766 |
15,867 |
14,699 |
|||||||||||||||
|
Bank deposits |
10,305 |
18,083 |
34,002 |
24,568 |
- |
|||||||||||||||
|
Term deposits |
30,763 |
- |
- |
- |
- |
|||||||||||||||
|
Total current assets |
143,839 |
161,633 |
176,557 |
155,483 |
174,562 |
|||||||||||||||
|
Total assets |
165,547 |
185,782 |
197,096 |
184,633 |
195,880 |
|||||||||||||||
|
Total current liabilities |
80,497 |
79,190 |
80,495 |
68,326 |
60,887 |
|||||||||||||||
|
Other liabilities |
12,518 |
13,966 |
22,038 |
29,214 |
40,867 |
|||||||||||||||
|
Total liabilities |
99,752 |
101,452 |
106,178 |
105,019 |
111,234 |
|||||||||||||||
|
Redeemable non-controlling interests |
87,023 |
90,737 |
93,521 |
89,974 |
90,478 |
|||||||||||||||
|
Shareholders' deficit |
21,228 |
6,407 |
2,603 |
10,360 |
5,832 |
|||||||||||||||
|
U.S. Dollars in Thousands for the Years ended December 31, |
||||||||||||||||||||
|
2025 |
2024 |
2023 |
2022 |
2021 |
||||||||||||||||
|
Revenue |
$ |
534,376 |
$ |
483,310 |
$ |
431,542 |
$ |
324,977 |
$ |
324,934 |
||||||||||
|
Cost of revenue |
474,634 |
413,469 |
351,558 |
261,181 |
209,771 |
|||||||||||||||
|
GROSS PROFIT |
59,742 |
69,841 |
79,984 |
63,796 |
115,163 |
|||||||||||||||
|
Operating expenses: |
||||||||||||||||||||
|
Research and development |
14,508 |
14,372 |
12,325 |
13,601 |
12,114 |
|||||||||||||||
|
Selling, general and administrative |
62,648 |
61,249 |
56,927 |
53,799 |
50,882 |
|||||||||||||||
|
Goodwill impairment |
- |
- |
- |
139 |
||||||||||||||||
|
Total operating expenses |
77,156 |
75,621 |
69,252 |
67,400 |
63,135 |
|||||||||||||||
|
OPERATING INCOME (LOSS) |
(17,414 |
) |
(5,780 |
) |
10,732 |
(3,604 |
) |
52,028 |
||||||||||||
|
Equity loss from investment in affiliates |
- |
- |
(97 |
) |
(983 |
) | ||||||||||||||
|
Other income (expenses), net |
577 |
1,427 |
1,584 |
113 |
(537 |
) | ||||||||||||||
|
INCOME (LOSS) BEFORE INCOME TAX EXPENSES |
(16,837 |
) |
(4,353 |
) |
12,316 |
(3,588 |
) |
50,508 |
||||||||||||
|
Income tax benefits (expenses) |
(1,644 |
) |
452 |
(1,745 |
) |
(1,646 |
) |
(9,220 |
) | |||||||||||
|
NET INCOME (LOSS) |
(18,481 |
) |
(3,901 |
) |
10,571 |
(5,234 |
) |
41,288 |
||||||||||||
|
Net income (loss) attributable to non-controlling interests
|
(4,133 |
) |
331 |
3,490 |
(509 |
) |
6,481 |
|||||||||||||
|
NET INCOME (LOSS) ATTRIBUTABLE TO ICTS INTERNATIONAL N.V.
|
$ |
(14,348 |
) |
$ |
(4,232 |
) |
$ |
7,081 |
$ |
(4,725 |
) |
$ |
34,807 |
|||||||
|
BASIC NET INCOME (LOSS) ATTRIBUTABLE TO ICTS INTERNATIONAL N.V.
PER SHARE |
||||||||||||||||||||
|
Net income (loss) |
$ |
(0.40 |
) |
$ |
(0.11 |
) |
$ |
0.19 |
$ |
(0.13 |
) |
$ |
0.66 |
|||||||
|
Basic weighted average number of shares |
36,175,799 |
37,433,333 |
37,433,333 |
37,433,333 |
37,433,333 |
|||||||||||||||
|
DILUTED NET INCOME (LOSS) ATTRIBUTABLE TO ICTS INTERNATIONAL
N.V. PER SHARE |
||||||||||||||||||||
|
Net income (loss) |
$ |
(0.40 |
) |
$ |
(0.11 |
) |
$ |
0.18 |
$ |
(0.13 |
) |
$ |
0.61 |
|||||||
|
Diluted weighted average number of shares |
36,175,799 |
37,433,333 |
39,423,506 |
37,433,333 |
40,237,340 |
|||||||||||||||
| • |
Evolving Regulatory Landscape. The evolving regulatory landscape surrounding AI, including potential restrictions on data usage,
transparency, and accountability, may limit our ability to deploy or expand these technologies. Such restrictions could also increase
our compliance costs. |
| • |
Inaccurate or Biased Outputs. AI systems can produce inaccurate, biased, or inappropriate outputs. Such errors may lead to operational
failures, reduced service quality, incorrect business decisions, or reputational harm, which could subject us to liability. |
| • |
Reliance on Third Parties. We rely on third-party AI platforms and services, which exposes us to risks related to their availability,
security, intellectual property rights, and compliance with applicable laws and ethical standards. |
| • |
AI Disruption to Services and Business Model. The rapid advancement of AI, both internally developed and commercially available
from third parties, may lead to technologies that can fully or partially replace certain services currently offered by the Company. The
obsolescence of existing services due to more advanced or cost-effective AI solutions could negatively impact our revenues and require
us to incur significant costs to rapidly re-align our business strategy, develop new offerings, or re-train our workforce. If we are unable
to adapt quickly or successfully, our competitive position will be harmed. |
| • |
Security Screening: |
| o |
Passenger and hand luggage |
| o |
Hold baggage |
| o |
Employees / Staff |
| o |
Access control and vehicles |
| • |
Behavior detection on crowds and queues |
| • |
Perimeter guarding / patrolling |
| • |
CCTV surveillance and/or alarm resolution |
| • |
Vehicle marshalling |
| • |
Security: |
| o |
Security interviewing |
| o |
Behavior detection |
| o |
Escort of valuables and weapons |
| • |
Handling (Check-in, Ticketing, Boarding, etc) |
| b. |
Below Wing Services:
|
| • |
Ramp guarding |
| • |
Door guarding |
| • |
Interior and exterior searches |
| • |
Catering guarding |
| • |
Bag room guarding |
| • |
Selectee search |
| • |
Cargo Screening |
| • |
Explosives Detection Dogs |
| • |
Access control (Guard duties and airside gate checks) |
| • |
Vehicle marshalling |
| • |
Security search and screening services |
| • |
Access control |
| • |
Perimeter guarding / patrolling (Including weapons and dogs) |
| • |
Security host & reception services |
| • |
CCTV surveillance and/or alarm resolution |
|
December 31, |
December 31, |
|||||||||||||||||||
|
2025 |
2024 |
|||||||||||||||||||
|
Measurement
Method |
Carrying
Value |
Ownership
Percentage |
Carrying
Value |
Ownership
Percentage |
||||||||||||||||
|
Manuka, Inc. (Previously Artemis Therapeutics, Inc.) (1) |
Measurement alternative |
$ |
- |
Less than 1% |
$ |
- |
Less than 1% |
|||||||||||||
|
Mesh Technologies, Inc. (2) |
Equity method |
36 |
Less than 1% |
36 |
Less than 1% |
|||||||||||||||
|
Arrow Ecology & Engineering Overseas (1999) (3) |
Measurement alternative |
- |
22.6 |
% |
- |
22.6 |
% | |||||||||||||
|
GreenFox Logistics LLC. (2) |
Measurement alternative |
100 |
Less than 1% |
100 |
Less than 1% |
|||||||||||||||
|
SardineAI Corp. (2) (4) |
Measurement alternative |
8 |
Less than 1% |
8 |
Less than 1% |
|||||||||||||||
|
Silver Circle One (2)(5) |
Measurement alternative |
88 |
Less than 1% |
58 |
Less than 1% |
|||||||||||||||
|
Bring it On Games Ltd (2) |
Measurement alternative |
50 |
Less than 1% |
- |
- |
|||||||||||||||
|
Justt Fintech Ltd (previously Acrocharge Ltd) (2) |
Measurement alternative |
50 |
Less than 1% |
50 |
Less than 1% |
|||||||||||||||
|
Nilus OS Ltd (2) |
Measurement alternative |
25 |
Less than 1% |
25 |
Less than 1% |
|||||||||||||||
|
Total investments in unconsolidated subsidiaries and affiliates |
$ |
357 |
$ |
277 |
||||||||||||||||
| (1) |
The market value of the Company’s investment in MNKA is $0 both as of December 31, 2025, and 2024. |
| (2) |
Private, closely held company, with no active market for the investment. Therefore, the Company applies the measurement alternative
and measures the investment at cost minus impairment. |
| (3) |
The investment includes various classes of shares representing 22.6% of Arrow’s equity and shareholders loans of $4.2 million
which were purchased for a total amount of $1.7 million. The Company suspended its use of the equity method for this investment in 2023
after its investment balance was reduced to zero. In March 2026, the Company purchased from a related party additional shareholders loans
for a total amount of $500. |
| (4) |
The Company has an agreement with an entity related to its main shareholder, according to which, if the value of the investment decrease,
the related party entity has guaranteed to repurchase this full investment at a minimum amount of $1.7 million. The guarantee is effective
immediately as of the date of purchase and terminates on January 1, 2027. Some Directors, managers and shareholders of Arrow are related
parties of the Company. |
| (5) |
On January 2023, the Company sold approximately 85% of its investment for a total amount of $0.8 million. |
| (6) |
A capital fund which aims to invest in private emerging companies with focus on consumer, commerce and technology companies. The
Company committed to invest up to $0.1 million in a collective investment fund. |
|
Years ended December 31, |
||||
|
2026 |
$ |
3.8 |
||
|
2027 |
2.9 |
|||
|
2028 |
1.8 |
|||
|
2029 |
0.7 |
|||
|
2030 |
0.5 |
|||
|
Thereafter |
2.0 |
|||
|
$ |
11.7 |
|||
|
U.S. Dollars in Thousands |
||||||||||||
|
For the Years ended December 31, |
||||||||||||
|
2025 |
2024 |
2023 |
||||||||||
|
Revenue |
$ |
534,376 |
$ |
483,310 |
$ |
431,542 |
||||||
|
Cost of revenue |
474,634 |
413,469 |
351,558 |
|||||||||
|
Gross profit |
59,742 |
69,841 |
79,984 |
|||||||||
|
Operating expenses: |
||||||||||||
|
Research and development |
14,508 |
14,372 |
12,325 |
|||||||||
|
Selling, general and administrative |
62,648 |
61,249 |
56,927 |
|||||||||
|
Total operating expenses |
77,156 |
75,621 |
69,252 |
|||||||||
|
OPERATING INCOME (LOSS) |
(17,414 |
) |
(5,780 |
) |
10,732 |
|||||||
|
Other income, net |
577 |
1,427 |
1,584 |
|||||||||
|
INCOME (LOSS) BEFORE INCOME TAX EXPENSES |
(16,837 |
) |
(4,353 |
) |
12,316 |
|||||||
|
Income tax benefits (expenses) |
(1,644 |
) |
452 |
(1,745 |
) | |||||||
|
NET INCOME (LOSS) |
(18,481 |
) |
(3,901 |
) |
10,571 |
|||||||
|
Less: Net income (loss) attributable to non-controlling interests |
(4,133 |
) |
331 |
3,490 |
||||||||
|
NET INCOME (LOSS) ATTRIBUTABLE TO ICTS INTERNATIONAL N.V |
$ |
(14,348 |
) |
$ |
(4,232 |
) |
$ |
7,081 |
||||
|
For the Years ended December 31, |
||||||||||||
|
2025 |
2024 |
2023 |
||||||||||
|
Revenue |
100.0 |
% |
100.0 |
% |
100.0 |
% | ||||||
|
Cost of revenue |
88.8 |
% |
85.5 |
% |
81.5 |
% | ||||||
|
Gross profit |
11.2 |
% |
14.5 |
% |
18.5 |
% | ||||||
|
Research and development |
2.8 |
% |
3.0 |
% |
2.9 |
% | ||||||
|
Selling, general and administrative |
11.7 |
% |
12.7 |
% |
13.1 |
% | ||||||
|
Total operating expenses |
14.5 |
% |
15.7 |
% |
16.0 |
% | ||||||
|
OPERATING INCOME (LOSS) |
(3.3 |
)% |
(1.2 |
)% |
2.5 |
% | ||||||
|
Other income, net |
0.1 |
% |
0.3 |
% |
0.4 |
% | ||||||
|
INCOME (LOSS) BEFORE INCOME TAX EXPENSES |
(3.2 |
)% |
(0.9 |
)% |
2.9 |
% | ||||||
|
Income tax benefits (expenses) |
(0.3 |
)% |
0.1 |
% |
(0.5 |
)% | ||||||
|
NET INCOME (LOSS) |
(3.5 |
)% |
(0.8 |
)% |
2.4 |
% | ||||||
|
Less: Net income (loss) attributable to non-controlling interests |
(0.8 |
)% |
(0.1 |
)% |
0.8 |
% | ||||||
|
NET INCOME (LOSS) ATTRIBUTABLE TO ICTS INTERNATIONAL N.V. |
(2.7 |
)% |
(0.9 |
)% |
1.6 |
% | ||||||
|
(U.S. Dollars in Thousands) |
||||||||||||
|
For the Years ended December 31, |
||||||||||||
|
2025 |
2024 |
2023 |
||||||||||
|
Germany |
$ |
158,224 |
$ |
128,278 |
$ |
114,176 |
||||||
|
Spain |
130,258 |
113,177 |
82,217 |
|||||||||
|
The Netherlands |
111,804 |
106,027 |
101,512 |
|||||||||
|
United States of America |
93,008 |
97,000 |
99,765 |
|||||||||
|
Other |
41,082 |
38,828 |
33,872 |
|||||||||
|
Total Revenue |
$ |
534,376 |
$ |
483,310 |
$ |
431,542 |
||||||
|
U.S. Dollars in Thousands |
||||||||||||||||||||
|
Unallocated Corporate |
Airport Security |
Other Aviation related Services |
Authentication Technology |
Total |
||||||||||||||||
|
Year ended December 31, 2025: |
||||||||||||||||||||
|
Revenue |
$ |
- |
$ |
421,818 |
$ |
81,106 |
$ |
31,452 |
$ |
534,376 |
||||||||||
|
Labor costs (1) |
1,261 |
393,624 |
68,082 |
25,208 |
488,175 |
|||||||||||||||
|
Depreciation and amortization |
53 |
839 |
326 |
883 |
2,101 |
|||||||||||||||
|
Other costs and expenses |
2,536 |
31,303 |
11,146 |
17,596 |
62,581 |
|||||||||||||||
|
Net income (loss) |
(3,850 |
) |
(3,948 |
) |
1,552 |
(12,235 |
) |
(18,481 |
) | |||||||||||
|
Goodwill |
- |
713 |
- |
- |
713 |
|||||||||||||||
|
Total assets |
9,682 |
81,138 |
19,723 |
55,004 |
165,547 |
|||||||||||||||
|
Year ended December 31, 2024: |
||||||||||||||||||||
|
Revenue |
$ |
- |
$ |
362,799 |
$ |
74,526 |
$ |
45,985 |
$ |
483,310 |
||||||||||
|
Labor costs (1) |
1,324 |
338,326 |
63,105 |
27,000 |
429,755 |
|||||||||||||||
|
Depreciation and amortization |
68 |
678 |
354 |
1,271 |
2,371 |
|||||||||||||||
|
Other costs and expenses |
2,472 |
25,612 |
10,513 |
16,488 |
55,085 |
|||||||||||||||
|
Net income (loss) |
(3,864 |
) |
(1,817 |
) |
554 |
1,226 |
(3,901 |
) | ||||||||||||
|
Goodwill |
- |
633 |
- |
- |
633 |
|||||||||||||||
|
Total assets |
19,791 |
80,422 |
18,832 |
66,737 |
185,782 |
|||||||||||||||
|
Year ended December 31, 2023: |
||||||||||||||||||||
|
Revenue |
$ |
- |
$ |
309,335 |
$ |
66,463 |
$ |
55,744 |
$ |
431,542 |
||||||||||
|
Labor costs (1) |
1,091 |
284,083 |
56,346 |
29,507 |
371,027 |
|||||||||||||||
|
Depreciation and amortization |
5 |
904 |
307 |
1,463 |
2,679 |
|||||||||||||||
|
Other costs and expenses |
2,215 |
21,771 |
9,796 |
13,483 |
47,265 |
|||||||||||||||
|
Net income (loss) |
(3,311 |
) |
2,577 |
14 |
11,291 |
10,571 |
||||||||||||||
|
Goodwill |
- |
668 |
- |
- |
668 |
|||||||||||||||
|
Total assets |
17,740 |
81,733 |
19,325 |
78,298 |
197,096 |
|||||||||||||||
| (1) |
Labor costs includes employee payroll, share-based compensation, bonus, and employee benefits, insurances and other. |
| Maximum Availability as of December 31, 2025* | Debt Balance as of December 31, 2025 | Interest Rate as of December 31, 2025 | Maximum Availability as of December 31, 2024* | Debt Balance as of December 31, 2024 | Interest Rate as of December 31, 2024 | |||||||||||||||||||
| Line of Credit | $ |
7,500 |
$ |
31 |
6.52 |
% |
$ |
7,500 |
$ |
- |
7.14 |
% | ||||||||||||
|
Factoring |
434 | 84 |
4.90 |
% |
363 |
201 |
5.30 |
% | ||||||||||||||||
|
Revolving Loans |
1,173 |
- |
3.73 |
% |
1,041 |
- |
3.20 |
% | ||||||||||||||||
|
Revolving Loans** |
1,760 |
392 |
3.07 |
% |
1,561 |
1,041 |
4.00 |
% | ||||||||||||||||
|
Revolving Loans** |
176
|
-
|
0.90 |
% | - |
- |
- |
|||||||||||||||||
| Factoring |
13,552 |
7,254 |
4.95 |
% |
12,123 |
1,939 |
5.89 |
% | ||||||||||||||||
| Total | $ |
24,595 |
$ |
7,761 |
4.86 |
% |
$ |
22,588 |
$ |
3,181 |
5.23 |
% | ||||||||||||
|
Contractual Obligations |
Payments due by Period (U.S. Dollars in Thousands) |
|||||||||||||||||||
|
Total |
Less than 1Year |
1-3 years |
4-5 years |
more than 5 years |
||||||||||||||||
|
Operating lease obligations |
$ |
11,685 |
$ |
3,787 |
$ |
5,423 |
$ |
1,006 |
$ |
1,469 |
||||||||||
|
Governmental payments in the Netherlands (VAT, social security, wage tax and interest) |
15,352 |
4,394 |
10,958 |
- |
- |
|||||||||||||||
|
$ |
27,037 |
$ |
8,181 |
$ |
16,381 |
$ |
1,006 |
$ |
1,469 |
|||||||||||
|
Contractual Obligations |
Payments due by Period (U.S. Dollars in Thousands) |
|||||||||||||||||||
|
Total |
Less than 1 Year |
1-3 years |
4-5 years |
more than 5 years |
||||||||||||||||
|
Guarantees and Letters of credit |
$ |
5,146 |
$ |
1,108 |
$ |
4,179 |
$ |
- |
$ |
- |
||||||||||
|
Age |
Position | ||
|
Menachem Atzmon |
81 |
Chairman of the Supervisory Board | |
|
Ron Atzmon |
52 |
Member of the Supervisory Board | |
|
Aya Atzmon Wandersman |
43 |
Member of the Supervisory Board | |
|
Gail F. Lieberman |
82 |
Member of the Supervisory Board, Chairwoman of the Audit Committee and member of the
Compensation Committee | |
|
Frans van Westen |
70 |
Member of the Supervisory Board, Member of the Audit Committee and member of the Compensation
Committee | |
|
Ilan Nir |
44 |
Member of the Supervisory Board, Chairman of the Compensation committee and member
of the Audit committee | |
|
Alexander Trager Lewis |
52 |
Member of the Supervisory Board | |
|
Gil Atzmon |
50 |
Managing Director | |
|
Alon Raich |
50 |
Managing Director and Chief Financial Officer |
|
Principal Position |
Year |
Salary, Fees, Grants and Bonus |
All Other Compensations |
Non-equity Incentive Plan Compensation |
Non qualified Deferred Compensation Earnings |
Number of Option Award (1) |
Number of Stock Awards |
Total |
||||||||||||||||||||||
|
$ |
$ |
$ |
$ |
$ |
||||||||||||||||||||||||||
|
Chairman of the ICTS and AU10TIX Boards |
2025 |
1,039 |
108 |
- |
- |
- |
- |
1,147 |
||||||||||||||||||||||
|
Managing Director and CFO |
2024 |
914 |
67 |
- |
- |
- |
- |
981 |
||||||||||||||||||||||
|
CEO of a subsidiary |
2023 |
1,513 |
106 |
- |
- |
420 |
- |
1,619 |
||||||||||||||||||||||
|
Salaries, Board fees, grants, commissions and bonuses |
Pension, retirement and other similar benefits |
|||||||
|
(in thousands) |
||||||||
|
Supervisory Directors as a group (8 persons) |
$ |
1,095 |
$ |
- |
||||
|
Officers as a group (8 persons) |
$ |
2,988 |
$ |
490 |
||||
|
Name Shareholders Holding Five Percent or More |
Percent of Amount Beneficially Owned (a) |
Shares Outstanding (a) |
||||||
|
MacPherson Trust and its beneficiaries (b) |
23,018,851 |
66.8 |
% | |||||
|
Menachem J. Atzmon |
4,050,000 |
11.8 |
% | |||||
|
Igal Tabori |
2,002,483 |
5.8 |
% | |||||
|
All officers and directors as a group, the MacPherson Trust
and its Beneficiaries (7 persons) |
28,020,214 |
81.2 |
% | |||||
| Item 8. |
Financial Information |
|
Period |
High |
Low |
||||||
|
October 2025 |
$ |
4.39 |
$ |
4.33 |
||||
|
November 2025 |
$ |
4.35 |
$ |
3.73 |
||||
|
December 2025 |
$ |
3.73 |
$ |
3.10 |
||||
|
January 2026 |
$ |
3.80 |
$ |
3.06 |
||||
|
February 2026 |
$ |
4.30 |
$ |
3.25 |
||||
|
March 2026 |
$ |
6.02 |
$ |
3.48 |
||||
|
April 1-29, 2026 |
$ |
4.60 |
$ |
3.70 |
||||
|
Year |
High |
Low |
||||||
|
2021 |
$ |
10.00 |
$ |
4.00 |
||||
|
2022 |
$ |
9.79 |
$ |
5.00 |
||||
|
2023 |
$ |
7.00 |
$ |
3.56 |
||||
|
2024 |
$ |
6.60 |
$ |
0.96 |
||||
|
2025 |
$ |
4.75 |
$ |
3.10 |
||||
|
2025 |
High |
Low |
||||||
|
First quarter |
$ |
4.67 |
$ |
3.15 |
||||
|
Second quarter |
$ |
4.00 |
$ |
3.25 |
||||
|
Third quarter |
$ |
4.75 |
$ |
3.50 |
||||
|
Fourth quarter |
$ |
3.73 |
$ |
3.10 |
||||
|
2024 |
High |
Low |
||||||
|
First quarter |
$ |
6.00 |
$ |
3.80 |
||||
|
Second quarter |
$ |
6.60 |
$ |
4.72 |
||||
|
Third quarter |
$ |
5.00 |
$ |
4.45 |
||||
|
Fourth quarter |
$ |
5.59 |
$ |
0.96 |
||||
|
2023 |
High |
Low |
||||||
|
First quarter |
$ |
6.00 |
$ |
3.76 |
||||
|
Second quarter |
$ |
5.30 |
$ |
3.56 |
||||
|
Third quarter |
$ |
7.00 |
$ |
3.75 |
||||
|
Fourth quarter |
$ |
5.60 |
$ |
4.01 |
||||
| • |
The excess distribution or gain will be allocated ratably over the U.S. Holder’s holding period for the shares, |
| • |
The amount allocated to the current taxable year, and any taxable year prior to the first taxable year in which the Company was a
PFIC, will be treated as ordinary income, and |
| • |
The amount allocated to each other year will be subject to tax at the highest tax rate in effect for that year and an interest charge
generally applicable to underpayments of tax will be imposed on the resulting tax attributable to each such year. |
|
2025 |
2024 |
|||||||
|
Audit fees |
$ |
460 |
$ |
470 |
||||
|
Audit related fees |
- |
- |
||||||
|
Tax fees |
- |
- |
||||||
|
Total fees |
$ |
460 |
$ |
470 |
||||
| 11. |
| 12.1 |
| 12.2 |
| 13.1 |
| 13.2 |
| * |
Incorporated by reference to the Company’s fillings.
|
|
By:
|
/s/ Gil Atzmon
|
|
|
Name:
|
Gil Atzmon
|
|
|
Title:
|
Managing Director
|
|
|
Date:
|
April 30, 2026
|
|
By:
|
/s/ Alon Raich
|
|
|
Name:
|
Alon Raich
|
|
|
Title:
|
Managing Director and Chief Financial Officer
|
|
|
Date:
|
April 30, 2026
|
ICTS INTERNATIONAL N.V. AND SUBSIDIARIES
|
|
Page
|
|
|
|
|
Consolidated Financial Statements:
|
|
|
|
|
|
Report of Independent Registered Public Accounting Firm (PCAOB Firm ID
|
F-2
|
|
Report of Independent Registered Public Accounting Firm (PCAOB Firm ID
|
F-3
|
|
|
|
|
F-4
|
|
|
F-5
|
|
|
F-6
|
|
|
|
|
|
F-8
|
|
|
|
|
|
F-10
|
|
|
Financial Statement Schedule:
|
|
|
|
|
|
F-42
|
|
December 31,
|
||||||||
|
2025
|
2024
|
|||||||
|
ASSETS
|
||||||||
|
CURRENT ASSETS:
|
||||||||
|
Cash and cash equivalents
|
$
|
|
$
|
|
||||
|
Restricted cash
|
|
|
||||||
|
Bank deposits
|
|
|
||||||
|
Term deposits
|
|
|
||||||
|
Accounts receivable, net
|
|
|
||||||
|
Prepaid expenses and other current assets
|
|
|
||||||
|
Total current assets
|
|
|
||||||
|
Deferred tax assets, net
|
|
|
||||||
|
Investments
|
|
|
||||||
|
Deposits with customers
|
|
|
||||||
|
Restricted cash
|
|
|
||||||
|
Property and equipment, net
|
|
|
||||||
|
Operating lease right of use assets
|
|
|
||||||
|
Goodwill
|
|
|
||||||
|
Other assets
|
|
|
||||||
|
Total assets
|
$
|
|
$
|
|
||||
|
LIABILITIES AND SHAREHOLDERS' DEFICIT
|
||||||||
|
CURRENT LIABILITIES:
|
||||||||
|
Financial institutions payable
|
$
|
|
$
|
|
||||
|
Accounts payable
|
|
|
||||||
|
Accrued expenses and other current liabilities
|
|
|
||||||
|
Value added tax (VAT) payable
|
|
|
||||||
|
Income tax and other taxes payable
|
|
|
||||||
|
Operating lease liabilities, current
|
|
|
||||||
|
Total current liabilities
|
|
|
||||||
|
Operating lease liabilities, non-current
|
|
|
||||||
|
Other liabilities
|
|
|
||||||
|
Total liabilities
|
|
|
||||||
|
COMMITMENTS AND CONTINGENCIES (NOTE 17)
|
||||||||
|
REDEEMABLE NON-CONTROLLING INTERESTS (NOTE 11)
|
|
|
||||||
|
SHAREHOLDERS' DEFICIT:
|
||||||||
|
Common stock, €
|
|
|
||||||
|
Additional paid-in capital
|
|
|
||||||
|
Accumulated deficit
|
(
|
)
|
(
|
)
|
||||
|
Accumulated other comprehensive loss
|
(
|
)
|
(
|
)
|
||||
|
Treasury stock at cost (3,000,000 common stock as of December 31, 2025 and 2024)
|
(
|
)
|
(
|
)
|
||||
|
Non-controlling interests in subsidiaries
|
(
|
)
|
|
|||||
|
Total shareholders' deficit
|
(
|
)
|
(
|
)
|
||||
|
Total liabilities and shareholders' deficit
|
$
|
|
$
|
|
||||
|
Years Ended December 31,
|
||||||||||||
|
2025
|
2024
|
2023
|
||||||||||
|
Revenue
|
$
|
|
$
|
|
$
|
|
||||||
|
Cost of revenue
|
|
|
|
|||||||||
|
GROSS PROFIT
|
|
|
|
|||||||||
|
Operating expenses:
|
||||||||||||
|
Research and development
|
|
|
|
|||||||||
|
Selling, general and administrative
|
|
|
|
|||||||||
|
Total operating expenses
|
|
|
|
|||||||||
|
OPERATING INCOME (LOSS)
|
(
|
)
|
(
|
)
|
|
|||||||
|
Other income, net
|
|
|
|
|||||||||
|
INCOME (LOSS) BEFORE INCOME TAX EXPENSES
|
(
|
)
|
(
|
)
|
|
|||||||
|
Income tax benefits (expenses)
|
(
|
)
|
|
(
|
)
|
|||||||
|
NET INCOME (LOSS)
|
(
|
)
|
(
|
)
|
|
|||||||
|
Net income (loss) attributable to non-controlling interests
|
(
|
)
|
|
|
||||||||
|
NET INCOME (LOSS) ATTRIBUTABLE TO ICTS INTERNATIONAL N.V.
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
|
||||
|
BASIC AND DILUTED NET INCOME (LOSS) ATTRIBUTABLE TO ICTS INTERNATIONAL N.V. PER SHARE
|
||||||||||||
|
Net income (loss) attributable to ICTS International N.V.
|
(
|
)
|
(
|
)
|
|
|||||||
|
Basic weighted average number of shares
|
|
|
|
|||||||||
|
Net income (loss) per share attributable to ICTS International N.V. - basic
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
|
||||
|
Diluted weighted average number of shares
|
|
|
|
|||||||||
|
Net income (loss) per share attributable to ICTS International N.V. - diluted
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
|
||||
|
COMPREHENSIVE INCOME (LOSS)
|
||||||||||||
|
Net income (loss)
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
|
||||
|
Other comprehensive income (loss) - Translation adjustments
|
(
|
)
|
(
|
)
|
|
|||||||
|
Unrealized gains (loss) on derivative instruments
|
|
(
|
)
|
|
||||||||
|
Comprehensive income (loss)
|
(
|
)
|
(
|
)
|
|
|||||||
|
Comprehensive income (loss) attributable to non-controlling interests
|
(
|
)
|
|
|
||||||||
|
COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO ICTS INTERNATIONAL N.V.
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
|
||||
|
Common Stock
|
Additional
Paid-In Capital
|
Accumulated
Deficit
|
Accumulated
Other Comprehensive Loss
|
Treasury
Shares
|
Non
Controlling
Interests
|
Total
Shareholders' Deficit
|
||||||||||||||||||||||||||
|
Shares
|
Amount
|
|||||||||||||||||||||||||||||||
|
BALANCE AT DECEMBER 31, 2022
|
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
|
$
|
|
$
|
(
|
)
|
||||||||||||||
|
Net income attributable to ICTS International N.V
|
-
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
|
Stock-based compensation – AU10TIX Technologies B.V.
|
-
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
|
Translation adjustment
|
-
|
|
|
|
(
|
)
|
|
|
|
|||||||||||||||||||||||
|
Unrealized gain on derivatives instruments
|
-
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
|
Additional payment for shares issued in previous years (see note 17)
|
-
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
|
Commitment to purchase shares from certain directors and officers (see note 17)
|
-
|
|
|
|
|
(
|
)
|
|
(
|
)
|
||||||||||||||||||||||
|
BALANCE AT DECEMBER 31, 2023
|
|
|
|
(
|
)
|
(
|
)
|
(
|
)
|
|
(
|
)
|
||||||||||||||||||||
|
Net loss attributable to ICTS International N.V
|
-
|
|
|
(
|
)
|
|
|
(
|
)
|
(
|
)
|
|||||||||||||||||||||
|
Reduce of nominal value shares
|
-
|
(
|
)
|
|
|
|
|
|
|
|||||||||||||||||||||||
|
Translation adjustment
|
-
|
|
|
|
(
|
)
|
|
|
(
|
)
|
||||||||||||||||||||||
|
Unrealized loss on derivatives instruments
|
-
|
|
|
|
(
|
)
|
|
|
(
|
)
|
||||||||||||||||||||||
|
Stock-based compensation – AU10TIX Technologies B.V.
|
-
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
|
Exercise of options – AU10TIX Technologies B.V
|
-
|
|
|
|
|
|
(
|
)
|
|
|||||||||||||||||||||||
|
Dividend to AU10TIX Technologies B.V shareholders
|
-
|
|
|
|
|
|
(
|
)
|
(
|
)
|
||||||||||||||||||||||
|
BALANCE AT DECEMBER 31, 2024
|
|
|
|
(
|
)
|
(
|
)
|
(
|
)
|
|
(
|
)
|
||||||||||||||||||||
|
Common Stock
|
Additional
Paid-In Capital
|
Accumulated
Deficit
|
Accumulated
Other Comprehensive Loss
|
Treasury
Shares
|
Non
Controlling
Interests
|
Total
Shareholders' Deficit
|
||||||||||||||||||||||||||
|
Shares
|
Amount
|
|||||||||||||||||||||||||||||||
|
BALANCE AT DECEMBER 31, 2024
|
|
|
|
(
|
)
|
(
|
)
|
(
|
)
|
|
(
|
)
|
||||||||||||||||||||
|
Net loss attributable to ICTS International N.V
|
-
|
|
|
(
|
)
|
|
|
(
|
)
|
(
|
)
|
|||||||||||||||||||||
|
Translation adjustment
|
-
|
|
|
|
(
|
)
|
|
|
(
|
)
|
||||||||||||||||||||||
|
Unrealized gain on derivatives instruments
|
-
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
|
Stock-based compensation – AU10TIX Technologies B.V.
|
-
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
|
Exercise of options – AU10TIX Technologies B.V
|
-
|
|
|
|
|
|
(
|
)
|
|
|||||||||||||||||||||||
|
BALANCE AT DECEMBER 31, 2025
|
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
(
|
)
|
$ |
(
|
)
|
$ |
(
|
)
|
$
|
(
|
)
|
||||||||||||
|
Years Ended December 31,
|
||||||||||||
|
2025
|
2024
|
2023
|
||||||||||
|
CASH FLOW FROM OPERATING ACTIVITIES:
|
||||||||||||
|
Net income (loss)
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
|
||||
|
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
|
||||||||||||
|
Depreciation and amortization
|
|
|
|
|||||||||
|
Gain from sale of investment
|
|
|
(
|
)
|
||||||||
|
Bad debt expense
|
|
|
|
|||||||||
|
Deferred income taxes
|
|
|
(
|
)
|
||||||||
|
Stock-based compensation
|
|
|
|
|||||||||
|
Changes in assets and liabilities:
|
||||||||||||
|
Accounts receivable
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||
|
Prepaid expenses and other current assets
|
|
(
|
)
|
|
||||||||
|
Deposits with customers
|
(
|
)
|
|
|
||||||||
|
Other assets
|
(
|
)
|
(
|
)
|
|
|||||||
|
Accounts payable
|
(
|
)
|
|
(
|
)
|
|||||||
|
Accrued expenses and other current liabilities
|
(
|
)
|
|
|
||||||||
|
VAT payable
|
(
|
)
|
(
|
)
|
|
|||||||
|
Income and other taxes payable
|
(
|
)
|
(
|
)
|
|
|||||||
|
Operating lease accounts, net
|
|
|
(
|
)
|
||||||||
|
Other liabilities
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||
|
Net cash provided by (used in) operating activities
|
(
|
)
|
(
|
)
|
|
|||||||
|
CASH FLOWS FROM INVESTING ACTIVITIES:
|
||||||||||||
|
Increase of term deposits
|
(
|
)
|
|
|
||||||||
|
Purchase of property and equipment
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||
|
Capitalization of software costs
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||
|
Proceeds from sale of investments
|
|
|
|
|||||||||
|
Purchase of investments
|
(
|
)
|
(
|
)
|
|
|||||||
|
Deposits (withdraws) regarding employees’ severance
|
(
|
)
|
(
|
)
|
|
|||||||
|
Net cash used in investing activities
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
(
|
)
|
|||
|
Years Ended December 31,
|
||||||||||||
|
2025
|
2024
|
2023
|
||||||||||
|
CASH FLOW FROM FINANCING ACTIVITIES:
|
||||||||||||
|
Loans received
|
$
|
|
$
|
|
$
|
|
||||||
|
Loans repaid
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||
|
Withdraws under factoring agreements
|
|
|
|
|||||||||
|
Repayments under factoring agreements
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||
|
Withdraws under line of credit
|
|
|
|
|||||||||
|
Dividend paid to AU10TIX shareholders
|
|
(
|
)
|
|
||||||||
|
Repayments of convertible notes payable to a related party
|
|
|
|
|||||||||
|
Net cash provided by (used in) financing activities
|
|
(
|
)
|
|
||||||||
|
EFFECT OF CHANGES IN FOREIGN CURRENCY EXCHANGE RATES ON CASH, CASH EQUIVALENTS, RESTRICTED CASH AND BANK DEPOSITS
|
|
(
|
)
|
|
||||||||
|
DECREASE IN CASH, CASH EQUIVALENTS, RESTRICTED CASH AND BANK DEPOSITS
|
(
|
)
|
(
|
)
|
|
|||||||
|
CASH, CASH EQUIVALENTS, RESTRICTED CASH AND BANK DEPOSITS BEGINNING OF YEAR
|
|
|
|
|||||||||
|
CASH, CASH EQUIVALENTS, RESTRICTED CASH AND BANK DEPOSITS END OF YEAR
|
$
|
|
$
|
|
$
|
|
||||||
|
SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES
|
||||||||||||
|
Additional payment for shares issued in previous years (see note 17)
|
$
|
|
$
|
|
$
|
|
||||||
|
Commitment to purchase shares from certain directors and officers (see note 17)
|
$
|
|
$
|
|
$
|
(
|
)
|
|||||
|
SUPPLEMENTAL DISCLOSURES OF CASH FLOW ACTIVITIES
|
||||||||||||
|
Cash paid during the year for:
|
||||||||||||
|
Interest
|
$
|
|
$
|
|
$
|
|
||||||
ICTS INTERNATIONAL N.V. AND SUBSIDIARIES
ICTS INTERNATIONAL N.V. AND SUBSIDIARIES
|
Year Ended December 31,
|
||||||||||||
|
2025
|
2024
|
2023
|
||||||||||
|
Cash and cash equivalents
|
$
|
|
$
|
|
$
|
|
||||||
|
Restricted cash - short term
|
|
|
|
|||||||||
|
Bank deposits
|
|
|
|
|||||||||
|
Restricted cash - long term
|
|
|
|
|||||||||
|
Total cash, cash equivalents, restricted cash and bank deposits shown in the statement of cash flows
|
$
|
|
$
|
|
$
|
|
||||||
| Level 1 - |
Inputs to the valuation methodology are unadjusted quoted prices for identical assets or liabilities in active markets that the Companies have the ability to access at the measurement date.
|
| Level 2 - |
Inputs to the valuation methodology include:
|
| • |
Quoted prices for similar assets or liabilities in active markets;
|
| • |
Quoted prices for identical or similar assets or liabilities in inactive markets;
|
| • |
Inputs other than quoted prices that are observable for the asset or liability;
|
| • |
Inputs that are derived principally from or corroborated by observable market data by correlation or other means.
|
ICTS INTERNATIONAL N.V. AND SUBSIDIARIES
| Level 3 - |
Inputs to the valuation methodology are unobservable and significant to the fair value measurement.
|
|
Years
|
|||
|
Equipment and furniture
|
|
||
|
Internal use software
|
|
||
|
Vehicles
|
|
ICTS INTERNATIONAL N.V. AND SUBSIDIARIES
ICTS INTERNATIONAL N.V. AND SUBSIDIARIES
ICTS INTERNATIONAL N.V. AND SUBSIDIARIES
|
Years ended December 31,
|
||||||||||||
|
2025
|
2024
|
2023
|
||||||||||
|
Airport security
|
$
|
|
$
|
|
$
|
|
||||||
|
Other aviation related services
|
|
|
|
|||||||||
|
Authentication technology
|
|
|
|
|||||||||
|
Total revenue
|
$
|
|
$
|
|
$
|
|
||||||
ICTS INTERNATIONAL N.V. AND SUBSIDIARIES
|
Years ended December 31,
|
||||||||||||||||||||||||
|
2025
|
2024
|
2023
|
||||||||||||||||||||||
|
Germany
|
$
|
|
|
%
|
$
|
|
|
%
|
$
|
|
|
%
|
||||||||||||
|
Spain
|
|
|
%
|
|
|
%
|
|
|
%
|
|||||||||||||||
|
The Netherlands
|
|
|
%
|
|
|
%
|
|
|
%
|
|||||||||||||||
|
United States
|
|
|
%
|
|
|
%
|
|
|
%
|
|||||||||||||||
|
Other countries
|
|
|
%
|
|
|
%
|
|
|
%
|
|||||||||||||||
|
Total revenue
|
$
|
|
|
%
|
$
|
|
|
%
|
$
|
|
|
%
|
||||||||||||
ICTS INTERNATIONAL N.V. AND SUBSIDIARIES
ICTS INTERNATIONAL N.V. AND SUBSIDIARIES
ICTS INTERNATIONAL N.V. AND SUBSIDIARIES
ICTS INTERNATIONAL N.V. AND SUBSIDIARIES
ICTS INTERNATIONAL N.V. AND SUBSIDIARIES
ICTS INTERNATIONAL N.V. AND SUBSIDIARIES
Recently Issued Accounting Pronouncements (Continued)
|
December 31,
|
||||||||
|
2025
|
2024
|
|||||||
|
Receivable from the German authorities (1)
|
$
|
|
$
|
|
||||
|
Income tax receivable
|
|
|
||||||
|
Interest from bank deposits
|
|
|
||||||
|
Value Added Tax (VAT) receivable
|
|
|
||||||
|
Prepaid uniforms
|
|
|
||||||
|
Prepaid insurance
|
|
|
||||||
|
Prepaid licenses
|
|
|
||||||
|
Prepaid rent
|
|
|
||||||
|
Other
|
|
|
||||||
|
Total prepaid expenses and other current assets
|
$
|
|
$
|
|
||||
| (1) |
In Germany, the employees are eligible for payroll support. The Company pays their full salary to its German employees and the Company is reimbursed by the German government for the payroll support amount.
|
ICTS INTERNATIONAL N.V. AND SUBSIDIARIES
|
December 31,
|
December 31,
|
|||||||||||||||
|
2025
|
2024
|
|||||||||||||||
|
Measurement Method
|
Carrying Value
|
Ownership Percentage
|
Carrying Value
|
Ownership Percentage
|
||||||||||||
|
Manuka, Inc. (Previously Artemis Therapeutics, Inc.) (1)
|
|
$
|
|
|
$
|
|
|
|||||||||
|
Mesh Technologies, Inc. (2)
|
|
|
|
|
|
|||||||||||
|
Arrow Ecology & Engineering Overseas (1999) (3)
|
|
|
|
|
|
|
|
|||||||||
|
GreenFox Logistics LLC. (2)
|
|
|
|
|
|
|||||||||||
|
SardineAI Corp. (2) (4)
|
|
|
|
|
|
|||||||||||
|
Silver Circle One (2)(5)
|
|
|
|
|
|
|||||||||||
|
Bring it On Games Ltd (2)
|
|
|
|
|
|
|||||||||||
|
Justt Fintech Ltd (previously Acrocharge Ltd) (2)
|
|
|
|
|
|
|||||||||||
|
Nilus OS Ltd (2)
|
|
|
|
|
|
|||||||||||
|
Total investments in unconsolidated subsidiaries and affiliates
|
$
|
|
$
|
|
||||||||||||
ICTS INTERNATIONAL N.V. AND SUBSIDIARIES
| (1) |
The market value of the Company’s investment in MNKA is $
|
| (2) |
Private, closely held company, with no active market for the investment. Therefore, the Company applies the measurement alternative and measures the investment at cost less impairment.
|
| (3) |
The investment includes various classes of shares representing
|
| (4) |
On January 2023, the Company sold approximately
|
| (5) |
A capital fund which aims to invest in private emerging companies with focus on consumer, commerce and technology companies. The Company committed to invest up to $
|
|
December 31,
|
||||||||
|
2025
|
2024
|
|||||||
|
Office, equipment and facilities
|
$
|
|
$
|
|
||||
|
Internal use software
|
|
|
||||||
|
Vehicles
|
|
|
||||||
|
Leasehold improvements
|
|
|
||||||
|
Total cost of property and equipment
|
|
|
||||||
|
Less: accumulated depreciation and amortization
|
|
|
||||||
|
Total property and equipment, net
|
$
|
|
$
|
|
||||
ICTS INTERNATIONAL N.V. AND SUBSIDIARIES
|
Year ended December 31,
|
||||||||||||
|
2025
|
2024
|
2023
|
||||||||||
|
Operating lease cost
|
$
|
|
$
|
|
$
|
|
||||||
|
Short term lease cost
|
|
|
|
|||||||||
|
Total lease cost
|
$
|
|
$
|
|
$
|
|
||||||
|
Year ended December 31,
|
||||||||||||
|
2025
|
2024
|
2023
|
||||||||||
|
Operating cash flows from operating leases
|
$
|
|
$
|
|
$
|
|
||||||
|
Right of use assets obtained in exchange for new operating lease liabilities
|
|
|
|
|||||||||
|
Weighted-average remaining lease term-operating leases
|
|
|
|
|||||||||
|
Weighted-average discount rate
|
|
%
|
|
%
|
|
%
|
||||||
|
December 31,
|
||||||||
|
2025
|
2024
|
|||||||
|
Operating lease ROU assets
|
$
|
|
$
|
|
||||
|
Operating lease liabilities - current
|
$
|
|
$
|
|
||||
|
Operating lease liabilities - non-current
|
|
|
||||||
|
Total operating lease liabilities
|
$
|
|
$
|
|
||||
ICTS INTERNATIONAL N.V. AND SUBSIDIARIES
|
Year ending December 31,
|
||||
|
2026
|
$
|
|
||
|
2027
|
|
|||
|
2028
|
|
|||
|
2029
|
|
|||
|
2030
|
|
|||
|
Thereafter
|
|
|||
|
Total future minimum lease payments
|
|
|||
|
Less: imputed interest
|
|
|||
|
Total
|
$
|
|
||
|
2025
|
2024
|
|||||||
|
Balance as of the beginning of the year
|
$
|
|
$
|
|
||||
|
Exchange rate effect
|
|
(
|
)
|
|||||
|
Balance as of the end of the year
|
$
|
|
$
|
|
||||
ICTS INTERNATIONAL N.V. AND SUBSIDIARIES
ICTS INTERNATIONAL N.V. AND SUBSIDIARIES
|
Maximum Availability as of December 31, 2025 *
|
Debt Balance as of December 31, 2025
|
Interest rate as of December 31, 2025
|
Maximum Availability as of December 31, 2024 *
|
Debt Balance as of December 31, 2024
|
Interest rate as of December 31, 2024
|
|||||||||||||||||||
|
Line of Credit
|
$
|
|
$
|
|
|
%
|
$
|
|
$
|
|
|
%
|
||||||||||||
|
Factoring
|
|
|
|
%
|
|
|
|
%
|
||||||||||||||||
|
Revolving Loans
|
|
|
|
%
|
|
|
|
%
|
||||||||||||||||
|
Revolving Loans **
|
|
|
|
%
|
|
|
|
%
|
||||||||||||||||
|
Revolving Loans**
|
|
|
|
%
|
|
|
|
|||||||||||||||||
|
Factoring
|
|
|
|
%
|
|
|
|
%
|
||||||||||||||||
|
Total
|
$
|
|
$
|
|
|
%
|
$
|
|
$
|
|
|
%
|
||||||||||||
ICTS INTERNATIONAL N.V. AND SUBSIDIARIES
|
December 31,
|
||||||||
|
2025
|
2024
|
|||||||
|
Accrued payroll and related costs
|
$
|
|
$
|
|
||||
|
Accrued vacation
|
|
|
||||||
|
Deferred revenue
|
|
|
||||||
|
Advanced payment from a customer
|
|
|
||||||
|
Commitment to purchase shares from directors and officers
|
|
|
||||||
|
Accrued VAT differences
|
|
|
||||||
|
Other
|
|
|
||||||
|
Total accrued expenses and other liabilities
|
$
|
|
$
|
|
||||
|
December 31,
|
||||||||
|
2025
|
2024
|
|||||||
|
Deferred wage tax and social security (1)
|
$
|
|
$
|
|
||||
|
Deferred VAT (1)
|
|
|
||||||
|
Severance pay liability
|
|
|
||||||
|
Total other liabilities
|
$
|
|
$
|
|
||||
| (1) |
Deferred VAT, deferred wage tax and social security relate to governmental support provided by the Dutch government, where they postponed all VAT payable for the years 2021 and 2020 and all wage tax and social security payable for the months March - December 2021 to be paid in 60 installments until October 2027. In January 2026, the Dutch authorities agreed to extend the monthly payments of the balance by two years until October 2029 (see note 12).
|
ICTS INTERNATIONAL N.V. AND SUBSIDIARIES
ICTS INTERNATIONAL N.V. AND SUBSIDIARIES
|
Year Ended December 31,
|
||||||||
|
2025
|
2024
|
|||||||
|
Balance as of the beginning of the year
|
$
|
|
$
|
|
||||
|
Net Income (loss)
|
(
|
)
|
|
|||||
|
Other Comprehensive Income - Translation adjustment
|
|
(
|
)
|
|||||
|
Paid dividend
|
|
(
|
)
|
|||||
|
Balance as of the end of the year
|
$
|
|
$
|
|
||||
ICTS INTERNATIONAL N.V. AND SUBSIDIARIES
|
Number of options
|
Weighted average exercise price
|
Weighted average remaining contractual term
|
|||||||
|
Options outstanding as of December 31, 2023
|
|
$
|
|
|
|||||
|
Options granted
|
|
|
|||||||
|
Options exercised
|
(
|
)
|
|
||||||
|
Forfeited
|
(
|
)
|
|
||||||
|
Options outstanding as of December 31, 2024
|
|
$
|
|
|
|||||
|
Options granted
|
|
|
|||||||
|
Options exercised
|
(
|
)
|
|
||||||
|
Forfeited
|
(
|
)
|
|
||||||
|
Options outstanding, as of December 31, 2025
|
|
$
|
|
|
|||||
ICTS INTERNATIONAL N.V. AND SUBSIDIARIES
|
Year ended December 31,
|
||||||||||||
|
2025
|
2024
|
2023
|
||||||||||
|
Interest expense to related parties
|
$
|
|
$
|
|
$
|
(
|
)
|
|||||
|
Interest expense and other bank charges
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||
|
Interest expense to tax authorities
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||
|
Interest income
|
|
|
|
|||||||||
|
Foreign currency gain (loss)
|
|
(
|
)
|
|
||||||||
|
Gain from sale of investments
|
|
|
|
|||||||||
|
Other income (expense)
|
|
|
(
|
)
|
||||||||
|
Total other income, net
|
$
|
|
$
|
|
$
|
|
||||||
|
Year Ended December 31,
|
||||||||||||
|
2025
|
2024
|
2023
|
||||||||||
|
The Netherlands
|
$
|
(
|
)
|
$
|
|
$
|
|
|||||
|
Germany
|
(
|
)
|
(
|
)
|
|
|||||||
|
United States of America
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||
|
Spain
|
(
|
)
|
|
|
||||||||
|
Israel
|
(
|
)
|
|
|
||||||||
|
Other locations
|
|
|
|
|||||||||
|
Income (loss) before income tax expenses
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
|
||||
ICTS INTERNATIONAL N.V. AND SUBSIDIARIES
|
December 31,
|
||||||||
|
2025
|
2024
|
|||||||
|
Deferred tax assets:
|
||||||||
|
Operating loss carry forwards
|
$
|
|
$
|
|
||||
|
Interest loss carry forward
|
|
|
||||||
|
Allowance for credit losses
|
|
|
||||||
|
Tax credit carry forwards
|
|
|
||||||
|
Accrued expenses
|
|
|
||||||
|
Research and development expenses, net
|
|
|
||||||
|
Other
|
|
|
||||||
|
Total deferred tax assets
|
|
|
||||||
|
Deferred tax liabilities:
|
||||||||
|
Depreciation of property and equipment
|
(
|
)
|
(
|
)
|
||||
|
|
|
|||||||
|
Valuation allowance
|
(
|
)
|
(
|
)
|
||||
|
Deferred tax assets, net
|
$
|
|
$
|
|
||||
ICTS INTERNATIONAL N.V. AND SUBSIDIARIES
|
Year Ended December 31,
|
||||||||||||||||||||||||
|
2025
|
2024
|
2023
|
||||||||||||||||||||||
|
Netherlands statutory tax rate
|
$
|
(
|
)
|
|
%
|
$
|
(
|
)
|
|
%
|
$
|
|
|
%
|
||||||||||
|
Foreign tax effects
|
||||||||||||||||||||||||
|
United States
|
||||||||||||||||||||||||
|
Changes in valuation allowance
|
(
|
)
|
|
%
|
|
(
|
)%
|
|
|
%
|
||||||||||||||
|
Other
|
|
(
|
)%
|
|
(
|
)%
|
|
|
%
|
|||||||||||||||
|
Germany
|
||||||||||||||||||||||||
|
Foreign tax rate differential
|
|
(
|
)%
|
|
(
|
)%
|
(
|
)
|
(
|
)%
|
||||||||||||||
|
State and local taxes
|
(
|
)
|
|
%
|
(
|
)
|
|
%
|
|
|
%
|
|||||||||||||
|
Changes in valuation allowance
|
|
(
|
)%
|
|
(
|
)%
|
|
|
%
|
|||||||||||||||
|
Other
|
(
|
)
|
|
%
|
|
(
|
)%
|
(
|
)
|
(
|
)%
|
|||||||||||||
|
Spain
|
||||||||||||||||||||||||
|
Changes in valuation allowance
|
|
(
|
)%
|
(
|
)
|
|
%
|
(
|
)
|
(
|
)%
|
|||||||||||||
|
Other
|
|
(
|
)%
|
|
(
|
)%
|
|
|
%
|
|||||||||||||||
|
Japan
|
||||||||||||||||||||||||
|
Changes in valuation allowance
|
|
|
(
|
)
|
|
%
|
(
|
)
|
(
|
)%
|
||||||||||||||
|
Other
|
|
(
|
)%
|
(
|
)
|
|
%
|
|
|
%
|
||||||||||||||
|
Israel
|
||||||||||||||||||||||||
|
Foreign tax rate differential
|
|
(
|
)%
|
(
|
)
|
|
%
|
(
|
)
|
(
|
)%
|
|||||||||||||
|
Preferred technological enterprise (1)
|
|
(
|
)%
|
(
|
)
|
|
%
|
(
|
)
|
(
|
)%
|
|||||||||||||
|
Changes in valuation allowance
|
|
(
|
)%
|
|
|
%
|
|
|
%
|
|||||||||||||||
|
Other
|
|
(
|
)%
|
|
(
|
)%
|
(
|
)
|
(
|
)%
|
||||||||||||||
|
Other foreign jurisdictions
|
|
(
|
)%
|
|
(
|
)%
|
(
|
)
|
(
|
)%
|
||||||||||||||
|
Changes in valuation allowances
|
|
(
|
)%
|
(
|
)
|
|
%
|
(
|
)
|
(
|
)%
|
|||||||||||||
|
Return to provision adjustments
|
|
|
%
|
(
|
)
|
|
%
|
|
|
%
|
||||||||||||||
|
Other
|
|
|
%
|
|
(
|
)%
|
(
|
)
|
(
|
)%
|
||||||||||||||
|
Income tax expense (benefit)
|
|
(
|
)%
|
$
|
(
|
)
|
|
%
|
$
|
|
|
%
|
||||||||||||
|
(1)
|
Preferred technological enterprise refers to deduction of 11% on the tax rate the Company has to pay in Israel, totaling 12% compared to regular tax rate of 23%.
|
ICTS INTERNATIONAL N.V. AND SUBSIDIARIES
|
Year Ended December 31,
|
||||||||||||
|
2025
|
2024
|
2023
|
||||||||||
|
The Netherlands
|
$
|
|
$
|
|
$
|
|
||||||
|
Foreign:
|
||||||||||||
|
Germany
|
|
|
|
|||||||||
|
Spain
|
(
|
)
|
|
|
||||||||
|
Israel
|
(
|
)
|
|
|
||||||||
|
Other foreign jurisdictions
|
|
|
|
|||||||||
|
Total cash paid for income taxes, net of refunds
|
$
|
(
|
)
|
$
|
|
$
|
|
|||||
|
December 31,
|
||||||||
|
2025
|
2024
|
|||||||
|
Balance at beginning of year
|
$
|
|
$
|
|
||||
|
Additions based on tax positions taken in prior years
|
|
|
||||||
|
Balance at end of year
|
$
|
|
$
|
|
||||
ICTS INTERNATIONAL N.V. AND SUBSIDIARIES
ICTS INTERNATIONAL N.V. AND SUBSIDIARIES
The Company is subject to various investigations, claims and legal proceedings covering a wide range of matters that arise in the ordinary course of its business activities. These claims are primarily related to grievances filed by current and former employees for unfair labor practices or discrimination and for passenger aviation claims. Management recognizes a liability for any matter when the likelihood of an unfavorable outcome is deemed to be probable and the amount is able to be reasonably estimated. Management has concluded that such claims, in the aggregate, are not reasonably possible to have a material adverse effect on the Company’s consolidated financial position, results of operations, or cash flows.
ICTS INTERNATIONAL N.V. AND SUBSIDIARIES
ICTS INTERNATIONAL N.V. AND SUBSIDIARIES
|
Unallocated Corporate
|
Airport
Security
|
Other
Aviation Related
Services
|
Authentication
Technology
|
Total
|
||||||||||||||||
|
Year ended December 31, 2025:
|
||||||||||||||||||||
|
Revenue
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||
|
Labor costs (1)
|
|
|
|
|
|
|||||||||||||||
|
Depreciation and amortization
|
|
|
|
|
|
|||||||||||||||
|
Other costs and expenses
|
|
|
|
|
|
|||||||||||||||
|
Net income (loss)
|
(
|
)
|
(
|
)
|
|
(
|
)
|
(
|
)
|
|||||||||||
|
Goodwill
|
|
|
|
|
|
|||||||||||||||
|
Total assets
|
|
|
|
|
|
|||||||||||||||
|
Year ended December 31, 2024:
|
||||||||||||||||||||
|
Revenue
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||
|
Labor costs (1)
|
|
|
|
|
|
|||||||||||||||
|
Depreciation and amortization
|
|
|
|
|
|
|||||||||||||||
|
Other costs and expenses
|
|
|
|
|
|
|||||||||||||||
|
Net income (loss)
|
(
|
)
|
(
|
)
|
|
|
(
|
)
|
||||||||||||
|
Goodwill
|
|
|
|
|
|
|||||||||||||||
|
Total assets
|
|
|
|
|
|
|||||||||||||||
|
Year ended December 31, 2023:
|
||||||||||||||||||||
|
Revenue
|
$
|
|
$
|
|
|
$
|
|
$
|
|
|||||||||||
|
Labor costs (1)
|
|
|
|
|
|
|||||||||||||||
|
Depreciation and amortization
|
|
|
|
|
|
|||||||||||||||
|
Other costs and expenses
|
|
|
|
|
|
|||||||||||||||
|
Net income (loss)
|
(
|
)
|
|
|
|
|
||||||||||||||
|
Goodwill
|
|
|
|
|
|
|||||||||||||||
|
Total assets
|
|
|
|
|
|
|||||||||||||||
| (1) |
Labor costs includes employee payroll, share-based compensation, bonus, and employee benefits, insurances and other.
|
|
Year Ended December 31,
|
||||||||||||
|
2025
|
2024
|
2023
|
||||||||||
|
Germany
|
$
|
|
$
|
|
$
|
|
||||||
|
Spain
|
|
|
|
|||||||||
|
The Netherlands
|
|
|
|
|||||||||
|
United States
|
|
|
|
|||||||||
|
Other countries
|
|
|
|
|||||||||
|
Total revenue
|
$
|
|
$
|
|
$
|
|
||||||
ICTS INTERNATIONAL N.V. AND SUBSIDIARIES
|
December 31,
|
||||||||
|
2025
|
2024
|
|||||||
|
Germany
|
$
|
|
$
|
|
||||
|
Spain
|
|
|
||||||
|
The Netherlands
|
|
|
||||||
|
United States
|
|
|
||||||
|
Other countries
|
|
|
||||||
|
Total property and equipment, net
|
$
|
|
$
|
|
||||
F - 41
|
Beginning
of year |
Charges
to Costs and Expenses |
Charges
to other accounts |
Deductions
|
End of
Year |
||||||||||||||||
|
Allowance for credit losses (1):
|
||||||||||||||||||||
|
Year ended December 31, 2023
|
$
|
|
|
(
|
)
|
|
$
|
|
||||||||||||
|
Year ended December 31, 2024
|
$
|
|
|
(
|
)
|
|
$
|
|
||||||||||||
|
Year ended December 31, 2025
|
$
|
|
|
(
|
)
|
|
$
|
|
||||||||||||
|
Allowance for net deferred tax assets:
|
||||||||||||||||||||
|
Year ended December 31, 2023
|
$
|
|
|
|
|
$
|
|
|||||||||||||
|
Year ended December 31, 2024
|
$
|
|
|
|
|
$
|
|
|||||||||||||
|
Year ended December 31, 2025
|
$
|
|
|
|
|
$
|
|
|||||||||||||
|
Dated: April 30, 2026
|
||
|
By:
|
/s/ Alon Raich
|
|
|
Alon Raich, Managing Director and Chief Financial Officer
|
||
|
Dated: April 30, 2026
|
||
|
By:
|
/s/ Gil Atzmon
|
|
|
Gil Atzmon, Managing Director
|
||
|
By:
|
/s/ Alon Raich
|
|
|
Alon Raich, Managing Director and Chief Financial Officer
|
||
|
Dated:
|
April 30, 2026
|
|
|
By:
|
/s/ Gil Atzmon
|
|
|
Gil Atzmon, Managing Director
|
||
|
Dated:
|
April 30, 2026
|
|
Document and Entity Information - shares |
12 Months Ended | |
|---|---|---|
Dec. 31, 2025 |
Dec. 31, 2023 |
|
| Entity Registrant Name | ICTS INTERNATIONAL N.V. | |
| Entity Central Index Key | 0001010134 | |
| Document Type | 20-F | |
| Document Period End Date | Dec. 31, 2025 | |
| Amendment Flag | false | |
| Current Fiscal Year End Date | --12-31 | |
| Is Entity a Well-known Seasoned Issuer | No | |
| Is Entity's Reporting Status Current | Yes | |
| Entity Filer Category | Non-accelerated Filer | |
| Entity Voluntary Filers | No | |
| Entity Emerging Growth Company | false | |
| Entity Shell Company | false | |
| Entity Common Stock, Shares Outstanding | 37,433,333 | |
| Document Fiscal Period Focus | FY | |
| Document Fiscal Year Focus | 2025 | |
| Entity Interactive Data Current | Yes | |
| Entity Incorporation, State or Country Code | P7 | |
| Document Annual Report | true | |
| Document Transition Report | false | |
| Document Shell Company Report | false | |
| Entity Address, Address Line One | Walaardt Sacr | |
| Document Accounting Standard | U.S. GAAP | |
| Document Registration Statement | false | |
| Entity Address, Postal Zip Code | 1117 BM | |
| Entity Address, City or Town | Schiphol-Oost | |
| Entity Address, Country | NL | |
| Entity File Number | 0-28542 | |
| Auditor Firm ID | 686 | 339 |
| Auditor Name | Forvis Mazars, LLP | Mazars USA LLP |
| Auditor Location | Jacksonville, FL | New York, NY |
| Document Financial Statement Error Correction [Flag] | false | |
| Auditor Opinion [Text Block] |
Opinion on the Consolidated Financial Statements
We have audited the accompanying consolidated balance sheets of ICTS International N.V. and subsidiaries (the “Company”) as of December 31, 2025 and 2024, the related consolidated statements of operations and comprehensive income (loss), shareholders’ deficit, and cash flows for each of the years in the two-year period ended December 31, 2025, and the related notes and schedule (collectively referred to as the “consolidated financial statements”). In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of the Company as of December 31, 2025 and 2024, and the results of its operations and its cash flows for each of the years in the two-year period ended December 31, 2025, in conformity with accounting principles generally accepted in the United States of America.
We also have audited the adjustments to the 2023 consolidated financial statements to retrospectively apply the Company’s adoption of ASU 2023‑07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures as presented in Note 18, the adoption of ASU 2023‑09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, as described in Note 2 and presented in Note 15, and the reclassification of cash flows as described in Note 2. In our opinion, such adjustments are appropriate and have been properly applied. We were not engaged to audit, review, or perform any procedures with respect to the Company’s 2023 consolidated financial statements other than those related to the adjustments described above, and, accordingly, we do not express an opinion or any other form of assurance on the 2023 consolidated financial statements taken as a whole.
|
|
| Business Contact [Member] | ||
| Entity Address, Address Line One | Walaardt Sacr | |
| Contact Personnel Name | Alon Raich | |
| Entity Address, Postal Zip Code | 1117 BM | |
| Entity Address, City or Town | Schiphol-Oost | |
| Entity Address, Country | NL | |
| Local Phone Number | 20-3471077 | |
| Contact Personnel Email Address | alon@ictsintl.com | |
| City Area Code | 31 | |
CONSOLIDATED BALANCE SHEETS (Parenthetical) - € / shares |
Dec. 31, 2025 |
Dec. 31, 2024 |
|---|---|---|
| Statement of Financial Position [Abstract] | ||
| Common stock, par value per share | € 0.01 | € 0.45 |
| Common stock, shares authorized | 150,000,000 | 150,000,000 |
| Common stock, shares issued | 37,433,333 | 37,433,333 |
| Common Stock, shares outstanding | 37,433,333 | 37,433,333 |
ORGANIZATION |
12 Months Ended |
|---|---|
Dec. 31, 2025 | |
| Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
| ORGANIZATION |
NOTE 1 - ORGANIZATION
Description of Business
ICTS International N.V. (“ICTS”) was registered at the Department of Justice in Amstelveen, Netherlands on October 9, 1992. ICTS and subsidiaries (collectively referred to as “ICTS” or the “Company”) operate in three reportable segments: (a) airport security (b) other aviation related services and (c) authentication technology. The Company also incurs general corporate expenses and costs which are not allocated to the reportable business segments but have been included in the “unallocated corporate” component which does not generate revenue from customers and contains primarily non-operational expenses. The Airport Security segment provides security services primarily to airport authorities and airlines, predominantly in Europe. The Other Aviation Services segment provides services primarily to airlines and airport authorities in the United States of America. The Authentication Technology segment provides authentication services to financial and other companies, predominantly in the United States of America and Singapore.
|
SIGNIFICANT ACCOUNTING POLICIES |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2025 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| SIGNIFICANT ACCOUNTING POLICIES |
NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES
The consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”). The significant accounting policies are as follows:
Functional Currency
The accompanying consolidated financial statements are presented in United States Dollars. The Company has determined that the functional currency of its subsidiaries is usually the local currency, except AU10TIX Technologies B.V. and its subsidiaries (“AU10TIX”) whose functional currency is United States Dollars. For financial reporting purposes, the assets and liabilities of such subsidiaries are translated into United States Dollars using exchange rates in effect at the balance sheet date. The revenue and expenses of such subsidiaries are translated into United States Dollars using average exchange rates in effect during the reporting period. Resulting translation adjustments are presented as a separate category in shareholders' deficit called accumulated other comprehensive loss.
Use of Estimates
The preparation of financial statements in conformity with US 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 revenue and expenses during the reporting period. Actual results could differ from these estimates.
Principles of Consolidation
The consolidated financial statements include the accounts of ICTS International N.V. and its wholly-owned and majority-owned subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation.
Cash and Cash Equivalents
The Company considers all highly liquid investments to be cash and cash equivalents with an original maturity of three months or less when purchased.
Restricted Cash and Bank Deposits
Short term restricted cash as of December 31, 2025 consists of: (a) $249 held in several bank accounts in the Netherlands, which is restricted for payments to local tax authorities, and (b) $861 short term bank deposits secured for derivative instruments.
Short term restricted cash as of December 31, 2024 consists of: (a) $142 held in bank accounts that serve as cash collateral for outstanding letters of credit and guarantees, (b) $1,872 held in several bank accounts in the Netherlands, which is restricted for payments to local tax authorities, and (c) $844 short term bank deposits secured for derivative instruments.
Long term restricted cash as at December 31, 2025 and 2024 consists of $1,669 and $1,795, respectively, held in bank accounts that serve as risk collateral for long term outstanding letters of credit and guarantees.
Bank deposits consist of short term interest-bearing deposits held in banks and financial institutions.
The following table provides a reconciliation of cash and restricted cash reported on the balance sheets that sum to the total of the same such amounts shown in the statements of cash flows.
Term Deposits
Term deposits consist of interest-bearing deposits held in banks and financial institutions.
Accounts Receivable
Accounts receivable represent amounts due to the Company for services rendered and are recorded net of an allowance for credit losses. The allowance for credit losses represents the current estimate of lifetime expected credit losses over the remaining duration of existing accounts receivable and is based on historical collection experience, factors related to specific customers, current economic trends and conditions as of the balance sheet date. The Company writes off accounts receivable when they are determined to be uncollectible and are recognized as a reduction to the allowance for credit losses. As of December 31, 2025 and 2024, the allowance for credit losses is $1,468 and $1,351, respectively.
The Company elected to apply the practical expedient provided in ASU 2025-05 with no material effect on the Company’s consolidated financial statements upon adoption.
Fair Value Measurements
The Company follows Financial Accounting Standards Board Accounting Standards Codification (“FASB ASC”) Topic 820, “Fair Value Measurement”. Topic 820 defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements. Topic 820 defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value should be based on assumptions that market participants would use.
In determining the fair value, the Company assesses the inputs used to measure fair value using a three-tier hierarchy, as follows:
If the asset or liability has a specified (contractual) term, the Level 2 input must be observable for substantially the full term of the asset or liability.
Deposits with Customers
Deposits with customers consist of long-term cash deposits provided to customers and suppliers which serve as cash collateral in order to guarantee the performance and quality of services provided to the customers or to secure the future payments to suppliers. The deposits are repaid to the Company at the end of the contract or the engagement with the customers or the suppliers.
Investments
The Company accounts for investments in the equity securities of companies which represent an ownership interest of 20% to 50% and the ability to exercise significant influence, provided that ability does not represent control, using the equity method. The equity method requires the Company to recognize its share of the net income (loss) of its investees in the consolidated statements of operations until the carrying value of the investment is zero.
Equity investments for which the Company does not have significant influence with readily determinable fair values are measured at fair value. Equity investments without readily determinable fair values are measured at cost with adjustments for observable changes in price or impairments (referred to as the measurement alternative).
The Company records investments in the equity securities of privately held companies which represent an ownership interest of less than 20% using the measurement alternative.
Derivative Instruments
Derivative instruments are measured at their fair value and recorded as either assets or liabilities. Changes in the fair value of derivatives designated as cash flow hedging instruments are initially recorded in other comprehensive income. A corresponding amount is reclassified out of other comprehensive income into earnings when the underlying transactions are recognized in the consolidated statements of operations and comprehensive income (loss).
The Company maintains a risk management strategy, that may incorporate the use of put options and forward exchange contracts, to minimize significant fluctuation in cash flows and/or earnings that are caused by exchange rate or interest rate volatility.
Property and Equipment
Equipment and furniture, leasehold improvements and vehicles are stated at cost less accumulated depreciation. Depreciation is computed using the straight-line method over the estimated useful lives of the assets. The estimated useful lives used in determining depreciation are as follows:
Leasehold improvements are amortized using the straight-line method over the shorter of the total term of the lease or the estimated useful lives of the assets.
Capitalized Internal-Use Software Costs
The Company capitalizes certain costs incurred in developing internal-use software when capitalization requirements have been met. Costs prior to meeting the capitalization requirements are expensed as incurred. Costs, such as maintenance and training are also expensed as incurred. Capitalized costs are included in property and equipment, and amortized on a straight-line basis over the estimated useful life of the software. Amortization expense, which is included in depreciation expense, amounted to $449, $782 and $947 during the years ended December 31, 2025, 2024 and 2023, respectively.
Goodwill
Goodwill represents the excess purchase price over the fair value of the net tangible and intangible assets of an acquired business. Goodwill is assessed for impairment by reporting unit on an annual basis or when events or changes in circumstances indicate that the fair value of a reporting unit is less than its carrying amount. The Company would record a goodwill impairment charge for the difference between the carrying value and the fair value of the goodwill, not to exceed the carrying amount of the goodwill. During the years ended December 31, 2025, 2024, and 2023, the Company has not recorded any impairment charges on its goodwill.
Long-Lived Assets
The Company reviews long-lived assets, other than goodwill, for impairment whenever events or changes in circumstances indicate that the carrying value of an asset may not be recoverable. The Company assesses recoverability by determining whether the net book value of the related asset will be recovered through the projected undiscounted future cash flows of the asset. If the Company determines that the carrying value of the asset is not recoverable, it measures any impairment based on the fair value of the asset as compared to its carrying value. During the years ended December 31, 2025, 2024, and 2023, the Company did not record any impairment charges on its long-lived assets.
Employee Rights Upon Severance
The Company is required to make severance payments to its Israeli employees upon dismissal of an employee or upon a termination of employment in certain circumstances. The Israeli pension and severance pay liability to the employees is covered mainly by deposits made at insurance companies. For its employees who are employed under the Section 14 of the Israeli Severance Pay Law, 1963 (“Section 14”), the Company makes deposits with certain insurance companies for accounts controlled by each applicable employee in order to secure the employees’ rights upon termination. In addition, the related obligation and amounts deposited on behalf of the applicable employees for such obligations are not presented on the Company’s consolidated balance sheets, as the amounts funded are not under the control of management of the Company and the Company is legally released from the obligation to pay any severance payments to the employees once the required deposit amounts have been paid.
For employees not covered under Section 14, severance liabilities are recorded based on the length of service and their latest monthly salary. The Company’s liabilities for the Israeli employees amounted to $1,507 and $1,385 as of December 31, 2025 and 2024, respectively, and are included in other liabilities in the Company’s consolidated balance sheets. The deposits made at insurance companies to cover these liabilities amounted to $1,190 and $938 as of December 31, 2025 and 2024, respectively, and are included in other assets in the Company’s consolidated balance sheets.
Leases
The Company as a lessee
Leases are classified as finance or operating, with classification affecting the pattern and classification of expense recognition in the statements of operations. A lease is a finance lease if it meets any one of the criteria below, otherwise the lease is an operating lease:
The lease transfers ownership of the underlying asset to the lessee by the end of the lease term.
The lease grants the lessee an option to purchase the underlying asset that the lessee is reasonably certain to exercise.
The lease term is for the major part of the remaining economic life of the underlying asset.
The present value of the sum of the lease payments and any residual value guaranteed by the lessee that is not already reflected in the lease payments equals or exceeds substantially all of the fair value of the underlying asset.
The underlying asset is of such a specialized nature that it is expected to have no alternative use to the lessor at the end of lease term.
Based on the criteria above, all of the Company's leases are classified as operating leases.
Operating lease Rights of Use (“ROU”) assets and liabilities are recognized at the commencement date based on the present value of lease payments over the lease term, while the ROU assets are also adjusted for any prepaid or accrued lease payments. The Company uses its incremental borrowing rate based on the information available at the commencement date to determine the present value of the lease payments. The Company does not recognize ROU assets or lease liabilities for leases with a term shorter than 12 months.
The lease term is the non-cancellable period of the lease plus periods covered by an extension or termination option if it reasonably certain that the Company will exercise the option.
After lease commencement, the Company measures the lease liability as the present value of the remaining lease payments using the discount rate determined at lease commencement (as long as the discount rate hasn’t been updated as a result of a reassessment event).
The Company subsequently measures the ROU asset as the present value of the remaining lease payments, adjusted for the remaining balance of any lease incentives received, any cumulative prepaid or accrued rent if relevant and any unamortized initial direct costs. Lease expenses are recognized on a straight-line basis over the lease term. Lease terms will include options to extend or terminate the lease when it is reasonably certain that the Company will exercise or not exercise the option to renew or terminate the lease.
Variable lease payments that depend on an index or a rate
On the commencement date, the lease payments shall include variable lease payments that depend on an index or a rate (such as the Consumer Price Index or a market interest rate), initially measured using the index or rate at the commencement date.
The Company does not remeasure the lease liability for changes in future lease payments arising from changes in an index or rate unless the lease liability is remeasured for another reason. Therefore, after initial recognition, such variable lease payments are recognized in profit or loss as they are incurred.
Convertible Debt Instruments
The Company evaluates convertible debt instruments at the time of issuance to determine whether the embedded conversion option needs to be bifurcated from the debt instrument and accounted for as a freestanding derivative instrument. An embedded conversion option is considered to be a freestanding derivative when: (a) the economic characteristics and risks of the embedded conversion option are not clearly and closely related to the economic characteristics and risks of the host instrument, (b) the hybrid instrument that embodies both the embedded conversion option and the host instrument is not re-measured at fair value under otherwise applicable US GAAP with changes in fair value reported in earnings as they occur, and (c) a separate instrument with the same terms as the embedded conversion option would be considered a derivative instrument subject to certain requirements.
Contingent Liabilities
The Company is subject to various investigations, claims and legal proceedings covering a wide range of matters that arise in the normal course of its business activities. Liabilities for such contingencies are recognized when: (a) information available prior to the issuance of the consolidated financial statements indicates that it is probable that a liability had been incurred at the date of the consolidated financial statements and (b) the amount of loss can reasonably be estimated.
Comprehensive Income (Loss) and Accumulated Other Comprehensive Loss
The Company's comprehensive income (loss) consists of the Company’s net income (loss), foreign currency translation adjustments and changes in fair value of derivative instruments as cash flow instruments. Accumulated other comprehensive loss consists of the Company’s accumulated foreign exchange currency translation adjustments and changes in fair value of derivative instruments.
Stock Based Compensation
Stock-based compensation to employees and non-employees, including stock options, are measured as the fair value of the award on the date of grant based on the estimated number of awards that are ultimately expected to vest. The compensation expense resulting from stock-based compensation to management and administrative employees is recorded over the vesting period of the award in selling, general and administrative expense on the accompanying consolidated statements of operations and comprehensive income (loss). Compensation expense resulting from stock-based compensation to operational employees is recorded over the vesting period of the award in cost of revenue.
Non-Controlling Interests
The Company’s non-controlling interests represent the minority shareholder’s ownership interests related to the Company’s subsidiaries. The Company reports its non-controlling interests in subsidiaries as a separate component of equity in the consolidated balance sheets and reports net income (loss) attributable to the non-controlling interests in the consolidated statements of operations and comprehensive income (loss).
Redeemable Non-Controlling Interests
When the Company or its subsidiaries issues preferred shares, it considers the provisions of FASB ASC 480 –“Distinguishing Liabilities from Equity” (Topic 480) in order to determine whether the preferred share should be classified as a liability. If the instrument is not within the scope of Topic 480, the Company further analyses the instruments characteristics in order to determine whether it should be classified within temporary equity (mezzanine) or within permanent equity in accordance with the provisions of Topic 480-10-S99. AU10TIX’s redeemable convertible preferred shares are not mandatorily or currently redeemable. However, it includes a liquidation or deemed liquidation events which constitutes a redemption event that is outside of the Company’s control. As such, all shares of redeemable preferred shares have been presented outside of permanent equity. The Company has not adjusted the carrying values of the redeemable preferred shares to the deemed liquidation values of such shares since a liquidation event was not probable at any of the balance sheet dates. Subsequent adjustments to increase or decrease the carrying values to the ultimate liquidation values will be made only if and when it becomes probable that such a liquidation event will occur.
Revenue Recognition
Revenue is recognized when the promised services are performed for the Company’s clients, and the amount that reflects the consideration the Company is entitled to receive in exchange for those services, is determined. The Company’s revenues are recorded net of any sales taxes.
In order to determine the revenue, the Company (1) identifies the contract with the client, (2) identifies the performance obligations, usually based on the hours spent, (3) determines the transaction price, (4) allocates the transaction price to the performance obligation and (5) recognizes revenue as the performance obligation is satisfied.
A performance obligation is a promise in a contract to transfer a distinct service to the client and it is the unit of account for revenue recognition. The majority of the Company’s contracts have a single performance obligation as the promise to transfer the individual services is not separately identifiable from other promises in the contracts and, therefore, is not distinct.
The following table presents the Company’s revenues according to the Company’s segments:
The following table presents the Company’s revenues generated from customers by geographical area based on the geographical location of the customers invoicing address:
Airport Security and Other Aviation Services Segments
In the airport security and other aviation services, for performance obligations that are satisfied over time, revenues are recognized by consistently applying a method of measuring hours spent on that performance obligation. ICTS generally utilizes an output method of time (hours and attendance for specific time framed service like specific flights) of the service provided. Performance obligations are satisfied over the course of each month and continue to be performed until the contract has been terminated or cancelled.
Pricing and Reduction to Revenues
The Company generally determines standalone selling prices based upon the prices included in the client contracts, using expected costs plus margin or other observable prices. The price as specified in client contracts is generally considered the standalone selling price as it is an observable input that depicts the price as if sold to a similar client in similar circumstances. Certain client contracts have variable provisions including quality thresholds or other similar items that could reduce the transaction price. These amounts may be constrained and revenue is recorded to the extent the Company does not expect a significant reversal or when the uncertainty associated with the variable provision is resolved. Variable provision amounts, if any, are not material, and the Company does not expect significant changes to its estimates.
Contracts
The Company’s client contracts generally include standard payment terms acceptable in each of the countries, states and territories in which it operates. The payment terms vary by the type and location of our clients and services offered. Client payments are typically due in 30 to 60 days after invoicing but may be a shorter or longer term depending on the contract. Our contracts with main customers are generally long-term between two to five years. The timing between satisfaction of the performance obligation, invoicing and payment is not significant.
Revenue Service Types
The following is a description of the Company’s revenue service types, including airport security, airline security, cargo security, other airport services, general security services and other services.
Airport Security
Staffing or manning for specialized airport security are usually based on a long-term contract issued via a public tender process. the Company recognizes revenue given the unit of measure (hours) provided in the given time period and the specific price for specific hours agreed upon in the contracts. Quality and criteria of staffing are described in the contracts and are measured in the given time period. Deviations, if any, are discussed with the customer before invoicing and are reflected in the invoice showing the approved hours and other cost elements as agreed upon price.
Most contracts have an hourly rate that reflects an all-in price based on a full cost price calculation. In some of the contracts, the hourly rates are split between a component based on hours and a component based on specific costs in a specific time period but always linked to the service provided in given time period. Revenue is recognized based on the realized hours and contractually agreed upon rate.
Airline Security
Staffing or manning for airline security is usually based on long-term contracts issued via a public tender procedure. The Company recognizes revenue according to the unit of measure provided (usually attendance for specific time framed service such as specific flights). When the manning for the security of these flights is delivered, the Company invoices the customer according to the agreed upon flight price.
Cargo Security
Staffing or manning for specialized cargo security are usually based on a long-term contract, sometimes publicly tendered. Contracts are based on hourly planned and executed screening services. Revenue is recognized based on the realized screening hours and contractually agreed upon hourly rate.
Other Airport Services
Other airport services include wheelchair attendants, pre-departure skycaps, bag-runners, agents, guards, charter security screening, janitorial, and cabin cleaning for major U.S. and foreign carriers in airports throughout the United States of America. The Company’s contracts may include either single or multiple performance obligations and vary by airport and airline. ICTS recognizes revenue given the unit of measure (usually hours) provided in the given time period and the specific price for specific hours or attendance for specific event, time framed service as agreed upon in the contracts.
General Security Services
General security services include providing armed and unarmed guards to private schools and places of worship, video surveillance and patrol. Contracts for general security services generally include only a single performance obligation. The Company recognizes revenue for security guard services given the unit of measure (hours) provided in the given time period. Revenue from video surveillance and patrol is recognized based upon a fixed monthly rate.
Other Services
Other services include revenues from incidental specialized security manning services, training services and ad hoc work performed on and off airports. Revenue is recognized over time as services are being performed, using the input of service delivered during the time period according to the contractual agreed price.
Authentication Technology Segment
In the authentication technology segment, the Company offers authentication services on a cost per click basis, with a minimum yearly commitment which means the customer pays the Company according to the higher of (a) number of times the customer used the system in order to authenticate IDs (recognized at a point of time) or (b) according to the yearly minimum commitment (recognized over time). According to the agreement with the customers, each chargeable click has an agreed price and revenue is being recognized accordingly.
Pricing and Reduction to Revenues
The Company determines standalone selling prices based upon the prices included in the client contracts using expected costs plus margin, or other observable prices. The price as specified in our client contracts is considered the selling price as agreed with the customer. The Company’s variable consideration amounts, if any, are not material, and the Company does not expect significant changes to our estimates. The Company does not expect a significant reversal when the uncertainty associated with the variable consideration is resolved. A customer may or may not be offered a tier-based pricing scheme but in any event of usage above the committed amount, the pricing will remain unchanged.
Contracts
Client contracts generally include standard payment terms acceptable in each of the countries, states and territories in which the company operates, and are typically set to a three-year duration. The payment terms vary by the type and location of our clients and services offered. The minimum commitment is usually paid in advance. Client payments are typically due 30 days after invoicing, but may be a shorter or longer term depending on the contract. Client contracts usually range from one to three years with a convenience exit every twelve months period, and at the end of the contract, there is a renewal option. The timing between satisfaction of the performance obligation, invoicing and payment is not significant.
Deferred Revenues
The Company records deferred revenues when cash payments are received or due in advance of our performance. Deferred revenues at December 31, 2025 and 2024 were $2,939 and $3,527, respectively shown as part of the accrued expenses. Revenue recognized for the years ended December 31, 2025, 2024 and 2023 that was included in the deferred revenue at the beginning of each year was $3,527, $4,938 and $3,570, respectively.
The Company’s payment terms vary by the type and location of the customer and the products or services offered. The term between invoicing and when payment is due is not significant.
Capitalized Contract Costs
As part of obtaining contracts with certain customers in the authentication technology segment, the Company incurs upfront costs such as sales commissions. The Company capitalizes these costs which are subsequently amortized on a straight-line basis over the estimated life of the relationship with the customer. The Company applies the practical expedient that allows it to determine this estimate for a portfolio of contracts that have similar characteristics in terms of type of service, contract term and pricing. This estimate is reviewed by management at the end of each reporting period as additional information becomes available. Capitalized contract costs as of December 31, 2025 and 2024 were $5 and $58, respectively. Amortization expense for capitalized contract costs for the years ended December 31, 2025, 2024 and 2023 were $53, $88 and $52, respectively.
Cost of Revenue
Cost of revenue represents primarily payroll and employee related costs associated with employees who provide services under the terms of the Company’s contractual arrangements, insurance and depreciation and amortization.
Research and Development Costs
Research and development costs are expensed as incurred and consist primarily of payroll and related costs, professional services, consulting services and non-capitalized costs associated with the development of technologies.
Advertising Costs
Advertising costs are expensed as incurred and consist of costs associated with promoting the Company, its products and services as well as participation in conferences and publication costs. Advertising costs during the years ended December 31, 2025, 2024 and 2023 were $2,288, $2,934 and $3,107, respectively.
Value Added Tax
Certain of the Company’s operations are subject to Value Added Tax (“VAT”) applied to the services sold in those respective countries. The Company is required to remit the VAT collected to the tax authorities but may deduct the VAT paid on certain eligible purchases.
Income Taxes
The Company accounts for income taxes using the liability method. Under this method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates applied to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities resulting from a change in tax rates is recognized in the period that includes the enactment date. A valuation allowance is established when realization of net deferred tax assets is unlikely to be considered more likely than not.
Uncertain income tax positions are determined based upon the likelihood of the positions being sustained upon examination by taxing authorities. The benefit of a tax position is recognized in the consolidated financial statements in the period during which management believes it is more-likely-than-not that the position will not be sustained. Income tax positions taken are not offset or aggregated with other positions. Income tax positions that meet the more-likely-than-not recognition threshold are measured as the largest amount of income tax benefit that is more than 50 percent likely of being realized if challenged by the applicable taxing authority. The portion of the benefits associated with income tax positions taken that exceeds the amount measured is reflected as income taxes payable.
Income (Loss) Per Share
Basic income (loss) per share is computed by dividing net income (loss) available to common shareholders by the weighted average number of shares of common stock outstanding during the period. Diluted income (loss) per share is determined in the same manner as basic income (loss) per share, except that the number of shares is increased to include potentially dilutive securities using the treasury stock method.
The Company had a net loss for the years ended December 31, 2025 and 2024. For periods of net loss, diluted loss per share is calculated similarly to basic loss per share because the impact of all dilutive potential common share is anti-dilutive due to the net loss. Due to the net loss during those years, potentially dilutive securities were excluded from the computation of diluted loss per share.
The Company had net income for the year ended December 31, 2023. Potentially dilutive securities were included in the computation of diluted income per share as the conversion rate of the convertible note payable to related party was lower than the weighted average computed price of the Company’s stock during 2023.
The number of shares of common stock attributable to potentially dilutive securities for the years ended December 31, 2025, 2024 and 2023 were 0, 5,566 and 1,990,173 shares. As of December 31, 2025 and 2024, potentially dilutive shares were excluded from the loss per share calculation due to being anti-dilutive. In computing diluted earnings per share in 2023, the Company took into its calculation additional conversion of the convertible note using the conversion method and 1,990,173 shares of common stock attributable to potentially dilutive securities that could occur upon the exercise of options granted under employee stock compensation plans using the treasury stock method.
Fair Value of Financial Instruments
The fair value of cash and cash equivalents, restricted cash, bank deposits, accounts receivable, prepaid expenses and other current assets, notes payable – financial institutions payable, accounts payable, accrued expenses and other current liabilities, income tax and other taxes payable and VAT payable approximate their carrying values due to the short-term nature of the instruments. The carrying value of the severance pay in other liabilities is not readily determinable because: (a) these instruments are not traded and, therefore, no quoted market prices exist upon which to base an estimate of fair value and (b) there were no readily determinable similar instruments on which to base an estimate of fair value.
Concentration of Credit Risk
Financial instruments which are subject to concentrations of credit risk consist primarily of cash and cash equivalents, restricted cash, bank deposits and accounts receivable.
The Company maintains cash, cash equivalents, restricted cash and bank deposits in accounts with financial institutions in the United States of America, Europe, Japan and Israel. As of December 31, 2025 and 2024, accounts at financial institutions located in the United States of America are insured by the Federal Deposit Insurance Corporation (“FDIC”) up to $250 per institution. As of December 31, 2025 and 2024, cash, cash equivalents, restricted cash and bank deposits of $1,507 and $1,128, respectively, are being held in the United States of America, of which $1,007 and $828, respectively, are uninsured. Cash, cash equivalents, restricted cash and bank deposits located in Europe, Japan and Israel, totaling $59,230 and $86,276 as of December 31, 2025 and 2024, respectively, are uninsured.
The Company renders services to a limited number of airlines and airports through service contracts and provides credit without collateral. Some of these airlines and airports may have difficulties in meeting their financial obligations, which can have a material adverse effect on the Company’s consolidated financial position, results of operations and cash flows. To mitigate this risk, the Company regularly reviews the creditworthiness of its customers through its credit evaluation process.
Revenue from three customers represented 50% of total revenue for the year ended December 31, 2025 and 37% of total accounts receivable as of December 31, 2025, of which customer A accounted for 20% from total revenue and 16% of total accounts receivable. Customer B accounted for 15% from total revenue and 10% of total accounts receivable and customer C accounted for 15% from total revenue and 11% of total accounts receivable. Accounts receivable from these three customers represented 37% of total accounts receivable as of December 31, 2025. Revenue from these three customers is presented under the airport security segment of the Company.
Revenue from three customers represented 47% of total revenue for the year ended December 31, 2024 and 24% of total accounts receivable as of December 31, 2024, of which customer A accounted for 18%, from total revenue and 13% of total accounts receivable. Customer B accounted for 17%, from total revenue and 1% of total accounts receivable and customer C accounted for 12% from total revenue and 9% of total accounts receivable. Revenue from these three customers is presented under the airport security segment of the Company.
Revenue from two customers represented 34% of total revenue for the year ended December 31, 2023 and 20% of total accounts receivable as of December 31, 2023, of which customer A accounted for 20% from total revenue and 13% of total accounts receivable, and customer B accounted for 14% of total revenue and 7% of total accounts receivable. Revenue from these two customers is presented under the airport security segment of the Company.
Risks and Uncertainties
The Company is currently engaged in direct operations in numerous countries and is therefore subject to risks associated with international operations (including economic and/or political instability, trade restrictions and strikes). Such risks can cause the Company to have significant difficulties in connection with the sale or provision of its services in international markets and have a material impact on the Company’s consolidated financial position, results of operations and cash flows.
The Company is subject to changes in interest rates based on Central Banks Federal Reserve actions and general market conditions. The Company does not utilize derivative instruments to manage its exposure to interest rate risk.
Furthermore, as a result of its international operations, the Company is subject to market risks associated with foreign currency exchange rate fluctuations. The Company does not utilize derivative instruments to manage its exposure to such market risk except in one of its subsidiaries. As such, significant foreign currency exchange rate fluctuations can have a material impact on the Company’s consolidated financial position, results of operations and cash flows.
Reclassification
Certain amounts have been reclassified within the year ended December 31, 2023 consolidated statements of cash flows to conform with current period presentation.
Recently Issued Accounting Pronouncements
Accounting Standards Update 2025-12
In December 2025, the FASB issued ASU 2025-12 “Codification Improvements” to address suggestions received from stakeholders on the Accounting Standards Codification and to make other incremental improvements to U.S. GAAP. The update represents changes to the Codification that (1) clarify, (2) correct errors, or (3) make minor improvements. The amendments make the Codification easier to understand and apply. The guidance is effective for fiscal years beginning after December 15, 2026, including interim periods within those fiscal years. The Company is currently evaluating this guidance to determine the impact it may have on its consolidated financial statements.
Accounting Standards Update 2025-11
In December 2025, the FASB issued ASU 2025-11, “Interim Reporting (Topic 270) Narrow-Scope Improvements.” The amendments in this Update clarify interim disclosure requirements and the applicability of Topic 270. The objective of the update is to provide clarity about current interim requirements. The amendments in this update also include a disclosure principle that requires entities to disclose events since the end of the last annual reporting period that have a material impact on the entity. The amendments in this ASU are required to be adopted for interim periods within annual reporting periods beginning after December 15, 2027. Early adoption is permitted. The Company is currently evaluating this guidance to determine the impact it may have on its consolidated financial statements.
Accounting Standards Update 2025-09
In November 2025, the FASB issued ASU 2025-09, Derivatives and Hedging (Topic 815): Hedge Accounting Improvements. The update expands the ability to apply hedge accounting to more diverse risk management strategies and simplifies the requirements for grouping forecasted transactions. The guidance is effective for the Company beginning January 1, 2027, with early adoption permitted. The Company has evaluated the amendments and determined that while they may simplify certain documentation procedures, the adoption of this update is not expected to have a material impact on its consolidated financial statements.
Accounting Standards Update 2025-08
In November 2025, the FASB issued ASU 2025-08, Financial Instruments—Credit Losses (Topic 326): Purchased Loans. This update introduces the "purchased seasoned loan" (PSL) category, which allows acquired loans that meet certain age and "involvement" criteria to use a gross-up approach for the credit loss allowance, rather than recording an immediate "Day 1" loss in earnings. The guidance is effective for fiscal years beginning after December 15, 2026. The adoption of this update is not expected to have a material impact on its consolidated financial statements.
Accounting Standards Update 2025-06
In September 2025, the FASB issued ASU 2025-06, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40). This update modernizes the accounting for software costs by removing legacy "development stages" and instead requiring capitalization to begin when it is probable that a software project will be completed and used for its intended function. The guidance is effective for the Company for annual periods beginning after December 15, 2026. The Company is evaluating the impact of this ASU in its financial statements.
Accounting Standards Update 2025-05
In July 2025, the FASB issued ASU 2025-05, Financial Instruments—Credit Losses (Topic 326): Practical Expedient for Estimating Expected Credit Losses. The update provides a practical expedient allowing entities to assume that current economic conditions at the balance sheet date will remain constant over the remaining life of the asset when estimating credit losses for trade receivables and contract assets. The guidance is effective for fiscal years beginning after December 15, 2025. The Company intends to elect this practical expedient upon early adoption and does not expect it to have a material impact on its allowance for credit losses or consolidated financial statements.
Accounting Standards Update 2024-03
In November 2024, the Financial Standards Accounting Board (FASB) issued Accounting Standards Update (ASU) 2024-03 "Income Statement – Reporting Comprehensive Income – Expense Disaggregation Disclosures (Subtopic 220-40)" which expands annual and interim disclosure requirements for certain costs and expenses, primarily through enhanced disclosures. ASU 2024-03 is effective for our annual periods beginning December 15, 2026, and for interim periods beginning December 15, 2027, with early adoption permitted. The Company is currently evaluating this guidance to determine the impact it may have on its consolidated financial statements disclosures.
Accounting Standards Update 2023-09
In December 2023, the FASB issued ASU 2023-09 Improvements to Income Tax Disclosures (“ASU 2023-09”). ASU 2023-09 improves the transparency of income tax disclosures by requiring (1) consistent categories and greater disaggregation of information in the rate reconciliation and (2) income taxes paid disaggregated by jurisdiction. It also includes certain other amendments to improve the effectiveness of income tax disclosures. For public business entities, the ASU is effective for annual periods beginning after December 15, 2024. The Company implemented the new income tax disclosures retrospectively. The implementation of ASU 2023-09 affected disclosures only and had no impact on the Company’s financial condition or results of operations (See Note 15 Income Taxes).
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PREPAID EXPENSES AND OTHER CURRENT ASSETS |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2025 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Prepaid Expenses And Other Current Assets Abstract | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| PREPAID EXPENSES AND OTHER CURRENT ASSETS |
NOTE 3 - PREPAID EXPENSES AND OTHER CURRENT ASSETS
Prepaid expenses and other current assets are as following:
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
INVESTMENTS |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2025 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Investments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| INVESTMENTS |
NOTE 4 - INVESTMENTS
A summary of investments in unconsolidated subsidiaries and affiliates as of December 31, 2025 and 2024 is as follows:
The Company has an agreement with an entity related to its main shareholder, according to which, if the value of the investment decreases, the related party entity has guaranteed to repurchase this full investment at a minimum amount of $1,750. The guarantee is effective immediately as of the date of purchase and terminates on January 1, 2027. Some Directors, managers and shareholders of Arrow are related parties of the Company.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PROPERTY AND EQUIPMENT |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2025 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Property, Plant and Equipment [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| PROPERTY AND EQUIPMENT |
NOTE 5 - PROPERTY AND EQUIPMENT
Property and equipment is as follows:
Depreciation and amortization expenses are $2,101, $2,371 and $2,679 for the years ended December 31, 2025, 2024 and 2023 respectively.
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
LEASES |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2025 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| LEASES |
NOTE 6 - LEASES
Lessee Arrangements
The Company enters into leases in the normal course of business primarily as part of its operations in the different airports, back-office operations, research and development offices and headquarters offices.
The table below presents the effects on the amounts relating to the Company’s total lease cost:
Other information:
Cash paid for amounts included in the measurement of lease liabilities:
Balance sheet information related to operating leases was as follows:
Future undiscounted lease payments for operating leases with initial terms of more than one year as of December 31, 2025 are as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
GOODWILL |
12 Months Ended | ||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2025 | |||||||||||||||||||||||||||||||||||||
| Goodwill Abstract | |||||||||||||||||||||||||||||||||||||
| GOODWILL |
NOTE 7 - GOODWILL
All of the Company’s goodwill relates to its airport security segment. The change in goodwill during the year is as follows:
At December 31, 2025 and 2024, the Company performed qualitative assessments to determine if it was more likely than not that the fair value of the reporting units exceeded carrying values, including goodwill. The qualitative assessments indicated that it was more likely than not that the fair value exceeded the carrying value of the reporting unit.
During the years ended December 31, 2025, 2024 and 2023, the Company did not recognize any impairment charges.
|
||||||||||||||||||||||||||||||||||||
FINANCIAL INSTITUTIONS PAYABLE |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2025 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Notes Payable to Bank [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| FINANCIAL INSTITUTIONS PAYABLE |
NOTE 8 - FINANCIAL INSTITUTIONS PAYABLE
United States of America
The Company’s U.S subsidiary secured a three-year credit facility with its primary bank in September 2023. The credit facility has a maximum borrowing base limit of $7,500. The borrowing base limitation is equivalent to: (i) 85% of eligible non-investment grade receivables and 90% of eligible investment grade receivables, plus (ii) 80% of direct labor payroll for the previous two pay periods plus 20%. The Company is required to maintain a fixed charge ratio of 1.00. Borrowings on the credit facility are subject to interest at SOFR plus 2.65% (6.52% as of December 31, 2025) and a minimum annual interest charge of $60. In April 2026 the credit facility was extended until April 2029. As of December 31, 2025 and 2024, the outstanding balances under the credit facility were $31 and $0, respectively and the unused available amount of the line is $7,469 and $7,500, respectively.
Europe
The Company has a factoring arrangement in Sweden to provide it with up to 4,000 SEK ($434 as of December 31, 2025) in borrowings. Borrowings under the agreement bear annual interest of 4.9% and are subject to an annual extension by the financial institution. The factoring agreement is secured by accounts receivable of the Swedish subsidiary. As of December 31, 2025 and 2024, the Company had 771 SEK and 2,212 SEK ($84 and $201 as of December 31, 2025 and 2024) respectively in outstanding borrowings under the credit facility. The weighted average interest rate for this loan during the years ended December 31, 2025, 2024 and 2023, was 4.9%, 5.3% and 2.8% respectively.
In November 2023, the Company entered into a loan agreement with a commercial bank in Spain to provide it with up to €1,000 ($1,173 as of December 31, 2025). The loan agreement is secured by accounts receivable of the Spanish subsidiary. The interest rate is determined by the bank at the time the loan is taken. The loan agreement was renewed in November 2024 and still in place. As of December 31, 2025 and 2024, the Company had no outstanding balances under the loan agreement.
In December 2023, an agreement was signed with the same commercial bank in Spain, to provide loans up to €1,500 ($1,760 as of December 31, 2025). These loans can be used only for paying different taxes to the Spanish tax authorities. The interest rate is determined at the time the loans are taken. During the periods ending December 31, 2025 and 2024 the loans taken ranged between €1,000 and €1,500 ($1,173 and $1,760 as of December 31, 2025) for periods of three months. As of December 31, 2025 and December 31, 2024 the outstanding balances were €334 and €1,000 ($392 and $1,041 respectively), with an average interest rate of 3.96% and 5.25%, respectively.
In June 2024, the Company signed a factoring agreement with a commercial bank in Germany for an unlimited period. According to the agreement, the Company factors accounts receivable related to invoices issued to certain customers up to the amount of €11,550 ($13,552 as of December 31, 2025). The amounts can be used only for payroll related costs in Germany. The Company is charged fees until the collection date equal to Euribor plus 3.00% (4.95% as of December 31, 2025). The Company is also subject to a 1.5% annual fee on the total factoring amount. As of December 31, 2025 and 2024, the outstanding balances were €6,207 and €1,863 ($7,254 and $1,939 as of December 31, 2025 and 2024), respectively. In February 2026, the financial institution agreed to increase the availability up to €15,850.
In July 2025, an agreement with a commercial bank in Spain was signed, to provide loans up to €150 ($176 as of December 31, 2025). These loans can be used only for paying different taxes to the Spanish tax authorities. The Company pays a commission that is determined at the time the loans are taken, without additional interest. As of December 31, 2025, there is no outstanding balance under the loan agreement.
The following table summarizes the different loans mentioned above and as reflected in the Company’s financial liabilities:
* Maximum availability is subject to terms and conditions according to the agreements with the different financial institutions.
** Loans can be used only for payment of taxes in Spain.
In March 2024, the Company signed a non-recourse factoring agreement with a commercial bank under which it factors certain accounts receivable related to invoices issued to a specific customer up to €3,000 ($3,519 as of December 31, 2025). The maximum amount provided by the bank cannot exceed 75% of the monthly invoice for that customer. In March 2025 the agreement was extended for one year and the facility was increased up to €4,000 ($4,692 as of December 31, 2025). Under the terms of this agreement, the factor assumes all rewards and credit risks associated with the purchased receivables and the Company has no further obligation related to their collection. Accordingly, the factored receivables are derecognized from the Company’s balance sheet once the funds are received by the Company. The arrangement does not create any liability and therefore no loan or financing obligation is recorded in the Company’s financial statements. The Company is also subject to a 0.2% fee for every factored invoice issued under the agreement and with interest equal Euribor plus 0.60% (2.55% as of December 31, 2025) until the date the payment is anticipated. In January 2026, the agreement was renewed for additional year under the same terms and conditions.
In July 2025, the Company signed a non-recourse factoring agreement with another commercial bank under which it factors certain accounts receivable related to invoices issued to a specific customer up to €750 ($880 as of December 31, 2025). Under the terms of this agreement, the factor assumes all rewards and credit risks associated with the purchased receivables and the Company has no further obligation related to their collection. Accordingly, the factored receivables are derecognized from the Company’s balance sheet once the funds are received by the Company. The arrangement does not create any liability and therefore no loan or financing obligation is recorded in the Company’s financial statements. The interest rate is Euribor of the month plus 0.90% (2.85% as of December 31, 2025).
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2025 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Payables and Accruals [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES |
NOTE 9 - ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES
Accrued expenses and other current liabilities are as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
OTHER LIABILITIES |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2025 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Other Liabilities [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| OTHER LIABILITIES |
NOTE 10 - OTHER LIABILITIES
Other liabilities are as follows:
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||
REDEEMABLE NON-CONTROLLING INTERESTS |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2025 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Noncontrolling Interest [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| REDEEMABLE NON-CONTROLLING INTERESTS |
NOTE 11 - REDEEMABLE NON-CONTROLLING INTERESTS
In 2019, AU10TIX entered into several agreements with certain investors, according to which AU10TIX has issued for a net consideration of approximately $74,000, a total of 4,000,000 Series A Preferred Shares ("Series A Shares") and 330,709 Series A-1 Preferred Shares ("Series A-1 Shares" and together with Series A Shares – "the Preferred Shares") representing approximately 31.401% of the outstanding share capital of AU10TIX and 30.22% of the fully-diluted share capital of AU10TIX as of the date of the agreements.
In 2021, certain investors purchased 2,267,717 AU10TIX Series A Preferred shares from other investors. In connection with such purchases, all outstanding AU10TIX’s Series A Preferred Shares and Series A-1 Preferred Shares were re-designated as New Series A Preferred Shares and the class A ordinary shares (“Ordinary Shares”) owned by ICTS were re-designated as Class B Ordinary Shares.
According to the agreements with the investors, AU10TIX had the right to issue up to 1,000,000 Class A Ordinary Shares under its existing employee stock option plan. In 2026 the amount increased to 1,400,000.
As of December 31, 2025 and following exercise of options by employees, the holdings in AU10TIX are as follows: : (i) ICTS owned 66.30% of the outstanding share capital of AU10TIX in the form of Class B Ordinary Shares; (ii) Oak owned 12.42% of the outstanding share capital of AU10TIX in the form of New Series A Preferred Shares; (iii) GF owned 10.55% of the outstanding share capital of AU10TIX in the form of New Series A Preferred Shares (iv) TPG owned 7.25% of the outstanding share capital of AU10TIX in the form of New Series A Preferred Shares and (v) Other shareholders owned 3.48% of the outstanding share capital of AU10TIX in the form of Class B Ordinary Shares.
The Share Holders Agreement (“SHA”) and the Articles (as amended by the Deed of Amendment) provide for the following material matters with respect to the rights attaching to the New Series A Preferred Shares and the Ordinary Shares and the ongoing governance of AU10TIX:
The New Series A Preferred Shares are entitled to one vote per share and rank equally with the Ordinary Shares in regards to dividends. The Ordinary Shares are divided into two classes: Class A Ordinary Shares and Class B Ordinary Shares, which rank equally as to dividends. The Class A Ordinary Shares are entitled to one vote per share. The Class B Ordinary Shares are entitled to three votes per share and may only be held by ICTS and its permitted transferees.
The holders of New Series A Preferred Shares (“Series A Holders”) are entitled to a liquidation preference upon the occurrence of a certain events (as defined in the SHA), The Ordinary Shares rank equally in liquidation. The New Series A Preferred Shares are subject to conversion into Class A Ordinary Shares on a 1:1 basis (subject to adjustments for certain events affecting the capital of AU10TIX) at the option of the New Series A Holder; and immediately prior to a qualifying IPO of AU10TIX. The Class B Ordinary Shares are convertible into Class A Ordinary Shares at any time upon the written request of a holder of Class B Ordinary Shares on a 1:1 basis, subject to adjustments for certain events affecting the capital of AU10TIX.
Exit Rights: At any time from and after July 3, 2026, upon written request by Series A Holders holding at least 60% of the then outstanding New Series A Preferred Shares (the “Preferred Majority”), AU10TIX is required to use reasonable endeavors to facilitate a sale of AU10TIX within six months after such written request, and, thereafter, the Preferred Majority has the right to step-in and require AU10TIX to facilitate a sale or IPO. On the exercise of such step-in right, each other shareholder (including ICTS) is required to cooperate with the Preferred Majority regarding such sale or IPO and the Preferred Majority has the right to exercise drag along rights over the shares held by other shareholders in order to facilitate such exit event.
Shares of redeemable convertible preferred stock are not mandatorily or currently redeemable. However, the Exit Right would constitute a contingent redemption event that is outside of AU10TIX’s control. As such, New Series A Shares have been presented outside of permanent equity as redeemable non-controlling interests.
The Preferred Shares Rights
The following table sets forth for the movement in the redeemable non-controlling interests:
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
GOVERNMENTAL SUPPORT |
12 Months Ended |
|---|---|
Dec. 31, 2025 | |
| Governmental Support [Abstract] | |
| GOVERNMENTAL SUPPORT |
NOTE 12 - GOVERNMENTAL SUPPORT
In the Netherlands, wage tax, social security and VAT payments for the period March 2020 until September 2021 were postponed as part of the government assistance regarding COVID - 19 and were set to be paid in 60 monthly installments beginning October 2022. Beginning July 2022, the debt incurs annual interest of 1% and increases every six months to a maximum of 4% subsequent to January 1, 2024. In November 2025, the Company filed a request with the tax authorities to extend the installments from 60 to 84 monthly installments. In January 2026, the request was approved. As of December 31, 2025 and 2024, the Company accumulated debt of €12,156 and €18,245 ($14,260 and $18,984 as of December 31, 2025 and 2024), respectively, to the Dutch tax authorities, of which €1,335 and €2,671 ($1,566 and $2,779 as of December 31, 2025 and 2024) is presented in VAT payable, €1,985 and €3,971 ($2,329 and $4,132 as of December 31, 2025 and 2024) is presented in income tax and other taxes payable and €8,836 and €11,603 ($10,379 and $12,085 as of December 31, 2025 and 2024) are presented as other liabilities.
|
STOCK-BASED COMPENSATION |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2025 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Share-based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| STOCK-BASED COMPENSATION |
NOTE 13 - STOCK-BASED COMPENSATION
AU10TIX Technologies B.V, has a Stock Option Plan which reserved 1,400,000 Ordinary Shares in the capital of AU10TIX Technologies B.V for its option issuances. The Plan grants rights to subscribe ordinary shares to employees, directors, consultants and service providers of AU10TIX Technologies B.V. and / or any related entity (as defined in the plan) at an exercise price as determined by the subsidiary’s board of directors with expiration terms of not more than ten years after the date such option is granted. Options granted under the plan generally vest over a period of four years.
The following is a summary of the AU10TIX Technologies B.V. stock options issued and outstanding:
Options exercisable as of December 31, 2025 and 2024 were 48,375 options and 191,900, respectively.
As of December 31, 2025 and 2024 the non-vested options are 52,000 and 475,450, respectively.
During the years ended December 31, 2025, 2024 and 2023, there was $58, $859 and $714 of compensation expenses.
As of December 31, 2025 and 2024, the Company has $135 and $1,816, respectively of unrecognized compensation cost related to stock options.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
OTHER INCOME, NET |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2025 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Other Income and Expenses [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| OTHER INCOME, NET |
NOTE 14 - OTHER INCOME, NET
Other income, net, is summarized as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
INCOME TAXES |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2025 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| INCOME TAXES |
NOTE 15 - INCOME TAXES
The components of income (loss) before income tax benefit (expense) are as follows:
The current income tax expense from subsidiaries outside of the Netherlands is $(408), $(357) and $(2,299), for the years ended December 31, 2025, 2024 and 2023, respectively. The current income tax expense for the Netherlands was $0, $0 and $248 for the years ended December 31, 2025, 2024 and 2023.
The deferred income tax benefit (expenses) from subsidiaries outside of the Netherlands is $(801), $(333) and $48, for the years ended December 31, 2025, 2024 and 2023, respectively. There was no deferred income tax expense for the Netherlands for the years ended December 31, 2025, 2024 and 2023.
Additionally, tax benefits (expenses) from subsidiaries outside the Netherlands include $(435), $800 and $754, for the years ended December 31, 2025, 2024 and 2023, respectively, of tax related to previous years. The tax benefits (expenses) for the Netherlands was $0, $248 and $0 for the years ended December 31, 2025, 2024 and 2023.
The components of deferred tax assets and liabilities are as follows:
The ultimate realization of the net deferred tax assets in each jurisdiction where the Company does business is dependent upon the generation of future taxable income in that jurisdiction during the periods in which net operating loss carry forwards are available and items that gave rise to the net deferred tax assets become deductible. At present, the Company does not have a sufficient history of generating taxable income in various jurisdictions where it does business or positive expected core earnings to conclude that it is more likely than not that the Company will be able to realize some of its net deferred tax assets in the near future. Therefore, a valuation allowance was established for the carrying value of those net deferred tax assets, with the exception of a few locations, which are currently generating taxable income. A valuation allowance will be maintained until sufficient positive evidence exists to support the reversal of any portion of the valuation allowance.
As of December 31, 2025, the Company has net operating losses carry forwards of $29,269 and carry forward interest of $2,689 in the Netherlands. These losses and interest can be carried forward and do not expire but the annual utilization is limited to one million Euro plus 50% of the excess taxable income. As of December 31, 2025, the Company has net operating loss carry forwards of $7,549 in the United States of America, which will expire in 2032 through 2037 except $3,476 which does not expire and can be used to offset up to 80% of taxable income every year. In addition, in the United States, the Company has interest expense of $4,986 which can be carried forward and does not expire.
As of December 31, 2025, the Company has $372 in tax credits for the welfare to work and work opportunity programs in the United States of America that expire in 2026 through 2029.
During the years ended December 31, 2025 and 2024, the valuation allowance increased by $3,294 and $3,268, respectively.
The difference between the tax provision at the statutory federal income tax rate of 25.8% for the years ended December 31, 2025, 2024 and 2023 and the benefit (provision) for income taxes as a percentage of income (loss) before income taxes (effective tax rate) for each year is as follows. The disclosure reflects the implementation of ASU 2023-09 retrospectively.
Cash paid for income taxes, net of refunds, were as follows:
Uncertain tax positions
The Company is subject to income taxes in the Netherlands, and numerous foreign jurisdictions. Significant judgment is required in evaluating the Company’s tax positions and determine its provision for income taxes. During the ordinary course of business, there are transactions and calculations for which the ultimate tax determination is uncertain. The Company establishes reserves for tax related uncertainties based on estimates of whether and the extent to which additional taxes will be due. These reserves are established when the Company believes that certain positions might be challenged despite evidence supporting the position. The Company adjusts this reserve in light of changing facts and circumstances, such as the outcome of income tax authority examinations. The Company recognizes tax benefits only when it is more likely than not that the tax position will be sustained upon examination by the relevant tax authorities, and the provision for income taxes includes the impact of reserve positions and changes to reserves based on this standard.
As of December 31, 2025 and 2024, there are $113 and $86, respectively of unrecognized tax benefits that if recognized would reduce the effective tax rate. Interest and penalties assessed by taxing authorities on an underpayment of income taxes are included as components of income tax provision in the consolidated statements of operations and comprehensive income (loss).
A reconciliation of the Company’s unrecognized tax benefits is as follows:
The Company files income tax returns in the Netherlands and other foreign jurisdictions. Income tax returns for the years since 2019 are subject to examination in the Netherlands. In the United States of America, income tax returns for the years since 2022 are subject to examination. Income tax returns for the tax years since 2020 are subject to examination in foreign jurisdictions.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
RELATED PARTY TRANSACTIONS |
12 Months Ended |
|---|---|
Dec. 31, 2025 | |
| Related Party Transactions [Abstract] | |
| RELATED PARTY TRANSACTIONS |
NOTE 16 – RELATED PARTY TRANSACTIONS
Legal services were provided to the Company by an entity related to one of the Company’s former Supervisory Board members who served until August 2024. Legal expense related to these services $26, $39 and $46 for the years ended December 31, 2025, 2024 and 2023, respectively.
The Chairman of the board is related to a trust which is an indirect main shareholder of the Company. The Company incurred expenses of $872, $60 and $50 for the years ended December 31, 2025, 2024 and 2023, respectively for his services as the Chairman including a one time grant of $625 in 2025. In addition, in 2025, 2024 and 2023, the Company incurred salary expenses of $268, $833 and $103, respectively for the services he provided to AU10TIX. The salary expenses of 2024 include retroactively salary adjustment since 2019 as approved by the AU10TIX board during 2024.
The Company engaged the services of an individual who is a beneficiary of a trust, which is an indirect main shareholder of the Company, to provide certain selling and management services to the authentication technology segment. The Company incurred expenses of $621, $723 and $929 for such services for the years ended December 31, 2025, 2024 and 2023, respectively. As of December 31, 2025 and 2024, the outstanding balances due for these services were $0 and $103, respectively, included in accrued expenses and other current liabilities. In January 2026, it was agreed between the Company and the individual that the employment agreement will be terminated as of December 31, 2027. In addition, the individual serves as a supervisory board member of the Company and was paid an amount of $52, $48 and $36 as supervisory board fees, for the years ended December 31, 2025, 2024 and 2023, respectively.
The Company engaged the services of an individual who is a beneficiary of a trust, which is an indirect main shareholder of the Company, to provide certain selling and administrative services to its authentication technology segment. The Company incurred expenses of $365, $345 and $341 for such services for the years ended December 31, 2025, 2024 and 2023, respectively. In addition, the individual served as a supervisory board member of the Company until July 2025 and was paid an amount of $29, $48 and $38 as supervisory board fees for the years ended December 31, 2025, 2024 and 2023, respectively. In July 2025, the individual was elected to be a joint managing director of the Company and was paid an amount of $88 for the year ended December 31, 2025.
The Company engages the services of an individual who is a beneficiary of a trust, which is an indirect main shareholder of the Company, to provide certain selling services to its authentication technology segment. The Company incurred expenses of $199, $198 and $176 for such services for the years ended December 31, 2025, 2024 and 2023, respectively. In addition, the individual served since July 2025 as a supervisory board member of the Company and was paid an amount of $24 as supervisory board fees, for the year ended December 31, 2025.
The Company engages the services of an individual which is a family member of the Chairman of the Board and the main shareholder, to provide services as a Managing Director of one of the Company’s subsidiaries. The Company incurred expenses of $473, $645 and $468 for such services for the years ended December 31, 2025, 2024 and 2023, respectively.
The Company engages the services of an individual who is a family member of a beneficiary of a trust which is an indirect main shareholder of the Company to provide certain administration services. The Company incurred expenses of $123, $115 and $114 for such services for the years ended December 31, 2025, 2024 and 2023, respectively.
The Company engaged the services of Spencer Corporation, a main shareholder of the Company to provide administrative services. The Company incurred expenses of $323, $0 and $0 for such services for the years ended December 31, 2025, 2024 and 2023, respectively. The expenses of 2025 include a one time expense of $215 approved in 2025, regarding costs incurred by Spencer in previous years.
The Company had an agreement with an entity which is related to the main shareholder of the Company to provide it with revolving loans up to $2,000 which expired in January 2026. Total interest expenses for the years ended December 31, 2025, 2024 and 2023 were $0, $0 and $21, respectively.
As of December 31, 2024, the Company included a liability for a purchase of shares from certain directors and officers of the Company in the amount of $1,518 (see note 17). The purchase transaction was completed in July 2025.
|
COMMITMENTS AND CONTINGENCIES |
12 Months Ended |
|---|---|
Dec. 31, 2025 | |
| Commitments and Contingencies Disclosure [Abstract] | |
| COMMITMENTS AND CONTINGENCIES |
NOTE 17 – COMMITMENTS AND CONTINGENCIES
Letters of Credit and Guarantees
As of December 31, 2025, the Company has $3,152 in outstanding letters of credit and guarantees. Letters of credit and guarantees are being secured either by the same amounts in restricted cash with commercial banks (see note 2) or with deposits provided to customers which serve as cash collateral in order to guarantee the performance and quality of services provided to the customers.
As of December 31, 2025, the Company has commercial guarantees of €1,700 ($1,994 as of December 31, 2025) which is not secured by restricted cash or deposits provided to a customer. The guarantee is part of an agreement between the Company and one of its customers to guarantee the performance and quality of the services provided to that customer.
Legal Proceedings
General
The Company is subject to various investigations, claims and legal proceedings covering a wide range of matters that arise in the ordinary course of its business activities. These claims are primarily related to grievances filed by current and former employees for unfair labor practices or discrimination and for passenger aviation claims. Management recognizes a liability for any matter when the likelihood of an unfavorable outcome is deemed to be probable and the amount is able to be reasonably estimated. Management has concluded that such claims, in the aggregate, are not reasonably possible to have a material adverse effect on the Company’s consolidated financial position, results of operations, or cash flows. Inquiry Proceedings
In June 2021, a minority shareholder initiated proceedings by requesting the Enterprise Chamber of the Amsterdam Court of Appeal to order an inquiry into seven aspects of the policy and affairs of the Company that have been previously disclosed by the Company in its periodic filings with the SEC for the fiscal years 2020 and 2019. In June 2022, the Enterprise Chamber rendered its judgment and (i) it accepted the Company’s defense on all items except two and ordered an investigation into those two aspects of the policy and affairs of the Company, being (a) the issuance of shares to directors and certain employees at USD 0.40 in May 2019 and (b) the adjustment of the conversion price under a convertible shareholder loan to USD 0.40 in May 2019, and (ii) appointed an investigator for this purpose.
Following the filing of the investigation report with the Enterprise Chamber in November 2023, the minority shareholder filed three new requests with the Enterprise Chamber, including a request to establish mismanagement on the basis of the investigation report and to order certain definitive measures at the Company. Each of these requests were dismissed in full.
As part of the above procedures the Company committed in 2023 to repurchase the shares issued under the May 2019 issuance for the same price they were issued, thereby undoing the issuance. As of December 31, 2024 the Company included a liability for this purchase in the amount of $1,518 in its balance sheet with a corresponding reduction to shareholders deficiency. In order to achieve this goal, in December 2024 the Company initiated a reduction of the Company’s issued share capital by reducing the nominal value of each of the shares in the Company from EUR 0.45 to EUR 0.01 per share in order to be able to purchase the shares. Consequently, the authorized capital of the Company was reduced to a total of EUR 1,500 resulting in a decrease of $18,760 in common stock and increase of the same amount in additional paid-in capital. The nominal value per share has been reduced as referred to in Section 2:99 paragraph 1 of the Dutch Civil Code without repayment to the shareholders. The Company concluded that the capital reduction did not result a value transfer to or from the shareholders. The Company recorded such capital reduction by a corresponding reduction in the common stock and an increase to additional paid-in capital. The purchase transaction was completed in July 2025.
In February 2025, the minority shareholder appealed the Enterprise Chamber’s judgment on its request to establish mismanagement on the basis of the investigation report and to order certain definitive measures at the Company to the Dutch Supreme Court. In March 2026 the Dutch Supreme Court dismissed the minority shareholder’s appeal. With the Supreme Court’s decision, the Enterprise Chamber’s judgment is now final, and the proceedings have been resolved in the Company’s favor.
Class Action Lawsuit
AU10TIX is currently named as a defendant in a class action lawsuit pending in U.S. federal court (Case No. 1:24-cv-08122, U.S. District Court for the Northern District of Illinois). The complaint asserts two claims. First, the plaintiff alleges that AU10TIX violated the Illinois Biometric Privacy Act, 740 ILCS 14/1 et seq. by collecting biometric information without obtaining necessary consent. Second, the plaintiff alleges that AU10TIX violated the Illinois Driver’s License Act, 625 ILCS 5/6-117.1 by using end-user driver’s licenses for machine learning to improve AU10TIX’s products. The plaintiff seeks to represent two classes consisting of Illinois residents in relation to both claims. AU10TIX denies that it violated either statute. On February 13, 2025, Au10tix filed a motion seeking dismissal of all claims.
Agency Agreement
In April 2013, prior to the purchase of one of the current subsidiaries in Europe, the Company entered into an agency agreement with a third party to assist it with this transaction. According to the agreement, in the event that the operations in that country are sold in the future, the third-party agent is entitled to a payment of €3,000 ($3,519 as of December 31, 2025).
|
SEGMENT AND GEOGRAPHICAL INFORMATION |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2025 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| SEGMENT AND GEOGRAPHICAL INFORMATION |
NOTE 18 – SEGMENT AND GEOGRAPHICAL INFORMATION
The Company operates in three reportable segments: (a) airport security (b) other aviation related services and (c) authentication technology. The Company also incurs general corporate expenses and costs which are not allocated to the reportable business segments but have been included in the “unallocated corporate” component which does not generate revenue and contains primarily non-operational expenses. The airport security segment includes the I-SEC International group. The airport security segment provides security services primarily to airlines and airport authorities in Europe. The other aviation related services segment includes Huntleigh USA. The other aviation related services segment provides various services to airlines within airports in the United States of America. The authentication technology represents the AU10TIX Technologies group. The authentication technology segment provides authentication services to financial and other companies, predominantly in the United States of America. The Company’s operating segments are the same as its reportable segments.
The Company’s Managing Directors and CFO are our chief operating decision makers (CODMs), who are the highest level of management responsible for assessing the Company’s overall performance. The CODMs allocate resources to and assess the performance of each operating segment using information about the operating segment's revenue and income (loss) from operations. Our CODMs do not evaluate operating segments using asset or liability information.
The CODMs consider monthly results and use that information when making decisions about the allocation of operating and capital resources to each segment. The CODMs are regularly provided with disaggregates expense information at the segment level which includes the corporate expenses, which are included in ‘other segment items’ in the following tables reconciliation purposes.
Revenue and costs and expenses are directly attributed to the segments they belong. All inter-segment transactions are eliminated in consolidation. The accounting policies of the segments are the same as the accounting policies of the Company as a whole.
The following table sets forth our segment information of revenue, labor costs, depreciation and amortization, other costs and expenses, net income (loss), goodwill and total assets:
The operating results of these reportable segments are regularly reviewed by the chief operating decision.
The following table sets forth, for the periods indicated, revenue generated from customers by geographical area based on the geographical location of the customer’s invoicing address:
The following table sets forth, for the periods indicated, property and equipment, net of accumulated depreciation and amortization, by country:
Property and equipment, net, in other countries include $1,438 and $1,479 property and equipment in Israel, as of December 31, 2025 and 2024, respectively.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pay vs Performance Disclosure - USD ($) $ in Thousands |
12 Months Ended | ||
|---|---|---|---|
Dec. 31, 2025 |
Dec. 31, 2024 |
Dec. 31, 2023 |
|
| Pay vs Performance Disclosure | |||
| Net Income (Loss) | $ (14,348) | $ (4,232) | $ 7,081 |
Insider Trading Policies and Procedures |
12 Months Ended |
|---|---|
Dec. 31, 2025 | |
| Insider Trading Policies and Procedures [Line Items] | |
| Insider Trading Policies and Procedures Adopted | true |
Cybersecurity Risk Management and Strategy Disclosure |
12 Months Ended |
|---|---|
Dec. 31, 2025 | |
| Cybersecurity Risk Management, Strategy, and Governance [Line Items] | |
| Cybersecurity Risk Management Processes for Assessing, Identifying, and Managing Threats [Text Block] |
As cybersecurity threats rapidly evolve in sophistication and become more prevalent, especially with the increasing use of artificial intelligence technology, we have implemented a cybersecurity risk management program as part of our oversight, evaluation and mitigation of enterprise-level risks. Our cybersecurity risk management program leverages a combination of processes, technologies and personnel with expertise in cybersecurity to comply with applicable regulations and detect and respond to cyber-attacks, data breaches, security incidents, and compromises of personal information, as well as to regularly and promptly inform management and our Board of Directors of any significant cybersecurity risks and developments. Our cybersecurity risk management program is led by our subsidiaries Chief Information Security Officers (“CISOs), who are directly responsible for establishing cybersecurity strategies, structures and managing ongoing cybersecurity risk management activities and are responsible for the day-to-day identification, monitoring and management of cybersecurity risks. Our CISOs have significant experience in managing cybersecurity risks.
In the ordinary course of our business, we collect and store confidential data, including intellectual property, proprietary business information and personally identifiable information (including of our employees, customers, suppliers and business partners). We rely extensively on information technology systems, including some systems that are managed by third-party service providers, to securely process, store and transmit such confidential data in order to conduct our business. These systems include programs and processes relating to internal and external communications, ordering and managing materials from suppliers, collecting, processing and storing data as processing transactions, processing payments to employees and vendors, generating our financial results for each reporting period, summarizing and reporting results of operations, and complying with information technology security compliance and other regulatory, legal or tax requirements.
We have not been materially impacted by risks from cybersecurity threats and we are not aware of any cybersecurity risks that are reasonably likely to materially affect our business. However, our systems and networks have been, and are expected to continue to be, the target of increasingly advanced and evolving cyber-attacks and cybersecurity incidents in the future may adversely impact our business, financial condition and results of operations, and we are continuing to actively monitor such threats.
|
| Cybersecurity Risk Management Processes Integrated [Flag] | true |
| Cybersecurity Risk Management Processes Integrated [Text Block] | we have implemented a cybersecurity risk management program as part of our oversight, evaluation and mitigation of enterprise-level risks. Our cybersecurity risk management program leverages a combination of processes, technologies and personnel with expertise in cybersecurity to comply with applicable regulations and detect and respond to cyber-attacks, data breaches, security incidents, and compromises of personal information, as well as to regularly and promptly inform management and our Board of Directors of any significant cybersecurity risks and developments. |
| Cybersecurity Risk Management Third Party Engaged [Flag] | true |
| Cybersecurity Risk Third Party Oversight and Identification Processes [Flag] | true |
| Cybersecurity Risk Materially Affected or Reasonably Likely to Materially Affect Registrant [Flag] | false |
| Cybersecurity Risk Materially Affected or Reasonably Likely to Materially Affect Registrant [Text Block] | We have not been materially impacted by risks from cybersecurity threats and we are not aware of any cybersecurity risks that are reasonably likely to materially affect our business. However, our systems and networks have been, and are expected to continue to be, the target of increasingly advanced and evolving cyber-attacks and cybersecurity incidents in the future may adversely impact our business, financial condition and results of operations, and we are continuing to actively monitor such threats. |
| Cybersecurity Risk Board of Directors Oversight [Text Block] |
In the event that we experience a cybersecurity incident, our subsidiaries have a cybersecurity incident response policy that sets forth the applicable processes, roles, engagements, escalations and notifications to be executed in order to promptly respond to such threats. Depending on its nature and scale, a cybersecurity threat may be managed within our CISOs or escalated to our management, and Board of Directors and Audit Committee, as appropriate.
As part of its overall risk oversight function, our Audit Committee, which is comprised entirely of independent directors, considers cybersecurity risks in connection with overseeing our overall enterprise risk management system. As part of our cybersecurity risk management, we maintain industry standard procedures and policies, which are reviewed and revised from time to time, to proactively assess, identify and manage potential cybersecurity risks and respond to any actual cybersecurity threats and incidents. Such procedures and policies include: actively monitoring our information technology systems to ensure compliance with applicable legal and regulatory requirements; engaging third-party consultants and other service providers to monitor and, as appropriate, respond to cybersecurity risks; requiring our service providers and our business partners who connect directly to our information technology systems, to comply with our cybersecurity standards, due diligence processes and be subject to our non-disclosure and other confidentiality agreements that include cybersecurity-related terms; providing and analyzing specialized industry sector intelligence on cybersecurity threats; regularly testing our cybersecurity systems and disaster preparedness, including our back-up information technology systems; developing and updating incident response plans to address potential cybersecurity threats; and maintaining and training our personnel on cybersecurity incident reporting procedures.
|
| Cybersecurity Risk Board Committee or Subcommittee Responsible for Oversight [Text Block] | As part of its overall risk oversight function, our Audit Committee, which is comprised entirely of independent directors, considers cybersecurity risks in connection with overseeing our overall enterprise risk management system. |
| Cybersecurity Risk Process for Informing Board Committee or Subcommittee Responsible for Oversight [Text Block] | As part of its overall risk oversight function, our Audit Committee, which is comprised entirely of independent directors, considers cybersecurity risks in connection with overseeing our overall enterprise risk management system. As part of our cybersecurity risk management, we maintain industry standard procedures and policies, which are reviewed and revised from time to time, to proactively assess, identify and manage potential cybersecurity risks and respond to any actual cybersecurity threats and incidents |
| Cybersecurity Risk Role of Management [Text Block] |
In the event that we experience a cybersecurity incident, our subsidiaries have a cybersecurity incident response policy that sets forth the applicable processes, roles, engagements, escalations and notifications to be executed in order to promptly respond to such threats. Depending on its nature and scale, a cybersecurity threat may be managed within our CISOs or escalated to our management, and Board of Directors and Audit Committee, as appropriate.
As part of its overall risk oversight function, our Audit Committee, which is comprised entirely of independent directors, considers cybersecurity risks in connection with overseeing our overall enterprise risk management system. As part of our cybersecurity risk management, we maintain industry standard procedures and policies, which are reviewed and revised from time to time, to proactively assess, identify and manage potential cybersecurity risks and respond to any actual cybersecurity threats and incidents. Such procedures and policies include: actively monitoring our information technology systems to ensure compliance with applicable legal and regulatory requirements; engaging third-party consultants and other service providers to monitor and, as appropriate, respond to cybersecurity risks; requiring our service providers and our business partners who connect directly to our information technology systems, to comply with our cybersecurity standards, due diligence processes and be subject to our non-disclosure and other confidentiality agreements that include cybersecurity-related terms; providing and analyzing specialized industry sector intelligence on cybersecurity threats; regularly testing our cybersecurity systems and disaster preparedness, including our back-up information technology systems; developing and updating incident response plans to address potential cybersecurity threats; and maintaining and training our personnel on cybersecurity incident reporting procedures.
|
| Cybersecurity Risk Management Positions or Committees Responsible [Flag] | true |
| Cybersecurity Risk Management Positions or Committees Responsible [Text Block] | Our cybersecurity risk management program is led by our subsidiaries Chief Information Security Officers (“CISOs), who are directly responsible for establishing cybersecurity strategies, structures and managing ongoing cybersecurity risk management activities and are responsible for the day-to-day identification, monitoring and management of cybersecurity risks. |
| Cybersecurity Risk Management Expertise of Management Responsible [Text Block] | Our CISOs have significant experience in managing cybersecurity risks. |
| Cybersecurity Risk Process for Informing Management or Committees Responsible [Text Block] | Depending on its nature and scale, a cybersecurity threat may be managed within our CISOs or escalated to our management, and Board of Directors and Audit Committee, as appropriate. |
| Cybersecurity Risk Management Positions or Committees Responsible Report to Board [Flag] | true |
SIGNIFICANT ACCOUNTING POLICIES (Policies) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2025 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Functional Currency |
Functional Currency
The accompanying consolidated financial statements are presented in United States Dollars. The Company has determined that the functional currency of its subsidiaries is usually the local currency, except AU10TIX Technologies B.V. and its subsidiaries (“AU10TIX”) whose functional currency is United States Dollars. For financial reporting purposes, the assets and liabilities of such subsidiaries are translated into United States Dollars using exchange rates in effect at the balance sheet date. The revenue and expenses of such subsidiaries are translated into United States Dollars using average exchange rates in effect during the reporting period. Resulting translation adjustments are presented as a separate category in shareholders' deficit called accumulated other comprehensive loss.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Use of Estimates |
Use of Estimates
The preparation of financial statements in conformity with US 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 revenue and expenses during the reporting period. Actual results could differ from these estimates.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Principles of Consolidation |
Principles of Consolidation
The consolidated financial statements include the accounts of ICTS International N.V. and its wholly-owned and majority-owned subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Cash and Cash Equivalents |
Cash and Cash Equivalents
The Company considers all highly liquid investments to be cash and cash equivalents with an original maturity of three months or less when purchased.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Restricted Cash and Bank Deposits |
Restricted Cash and Bank Deposits
Short term restricted cash as of December 31, 2025 consists of: (a) $249 held in several bank accounts in the Netherlands, which is restricted for payments to local tax authorities, and (b) $861 short term bank deposits secured for derivative instruments.
Short term restricted cash as of December 31, 2024 consists of: (a) $142 held in bank accounts that serve as cash collateral for outstanding letters of credit and guarantees, (b) $1,872 held in several bank accounts in the Netherlands, which is restricted for payments to local tax authorities, and (c) $844 short term bank deposits secured for derivative instruments.
Long term restricted cash as at December 31, 2025 and 2024 consists of $1,669 and $1,795, respectively, held in bank accounts that serve as risk collateral for long term outstanding letters of credit and guarantees.
Bank deposits consist of short term interest-bearing deposits held in banks and financial institutions.
The following table provides a reconciliation of cash and restricted cash reported on the balance sheets that sum to the total of the same such amounts shown in the statements of cash flows.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Term Deposits |
Term Deposits
Term deposits consist of interest-bearing deposits held in banks and financial institutions.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Accounts Receivable |
Accounts Receivable
Accounts receivable represent amounts due to the Company for services rendered and are recorded net of an allowance for credit losses. The allowance for credit losses represents the current estimate of lifetime expected credit losses over the remaining duration of existing accounts receivable and is based on historical collection experience, factors related to specific customers, current economic trends and conditions as of the balance sheet date. The Company writes off accounts receivable when they are determined to be uncollectible and are recognized as a reduction to the allowance for credit losses. As of December 31, 2025 and 2024, the allowance for credit losses is $1,468 and $1,351, respectively.
The Company elected to apply the practical expedient provided in ASU 2025-05 with no material effect on the Company’s consolidated financial statements upon adoption.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Fair Value Measurements |
Fair Value Measurements
The Company follows Financial Accounting Standards Board Accounting Standards Codification (“FASB ASC”) Topic 820, “Fair Value Measurement”. Topic 820 defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements. Topic 820 defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value should be based on assumptions that market participants would use.
In determining the fair value, the Company assesses the inputs used to measure fair value using a three-tier hierarchy, as follows:
If the asset or liability has a specified (contractual) term, the Level 2 input must be observable for substantially the full term of the asset or liability.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Deposits with Customers |
Deposits with Customers
Deposits with customers consist of long-term cash deposits provided to customers and suppliers which serve as cash collateral in order to guarantee the performance and quality of services provided to the customers or to secure the future payments to suppliers. The deposits are repaid to the Company at the end of the contract or the engagement with the customers or the suppliers.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Investments |
Investments
The Company accounts for investments in the equity securities of companies which represent an ownership interest of 20% to 50% and the ability to exercise significant influence, provided that ability does not represent control, using the equity method. The equity method requires the Company to recognize its share of the net income (loss) of its investees in the consolidated statements of operations until the carrying value of the investment is zero.
Equity investments for which the Company does not have significant influence with readily determinable fair values are measured at fair value. Equity investments without readily determinable fair values are measured at cost with adjustments for observable changes in price or impairments (referred to as the measurement alternative).
The Company records investments in the equity securities of privately held companies which represent an ownership interest of less than 20% using the measurement alternative.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Derivative Instruments |
Derivative Instruments
Derivative instruments are measured at their fair value and recorded as either assets or liabilities. Changes in the fair value of derivatives designated as cash flow hedging instruments are initially recorded in other comprehensive income. A corresponding amount is reclassified out of other comprehensive income into earnings when the underlying transactions are recognized in the consolidated statements of operations and comprehensive income (loss).
The Company maintains a risk management strategy, that may incorporate the use of put options and forward exchange contracts, to minimize significant fluctuation in cash flows and/or earnings that are caused by exchange rate or interest rate volatility.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Property and Equipment |
Property and Equipment
Equipment and furniture, leasehold improvements and vehicles are stated at cost less accumulated depreciation. Depreciation is computed using the straight-line method over the estimated useful lives of the assets. The estimated useful lives used in determining depreciation are as follows:
Leasehold improvements are amortized using the straight-line method over the shorter of the total term of the lease or the estimated useful lives of the assets.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Capitalized Internal-Use Software Costs |
Capitalized Internal-Use Software Costs
The Company capitalizes certain costs incurred in developing internal-use software when capitalization requirements have been met. Costs prior to meeting the capitalization requirements are expensed as incurred. Costs, such as maintenance and training are also expensed as incurred. Capitalized costs are included in property and equipment, and amortized on a straight-line basis over the estimated useful life of the software. Amortization expense, which is included in depreciation expense, amounted to $449, $782 and $947 during the years ended December 31, 2025, 2024 and 2023, respectively.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Goodwill |
Goodwill
Goodwill represents the excess purchase price over the fair value of the net tangible and intangible assets of an acquired business. Goodwill is assessed for impairment by reporting unit on an annual basis or when events or changes in circumstances indicate that the fair value of a reporting unit is less than its carrying amount. The Company would record a goodwill impairment charge for the difference between the carrying value and the fair value of the goodwill, not to exceed the carrying amount of the goodwill. During the years ended December 31, 2025, 2024, and 2023, the Company has not recorded any impairment charges on its goodwill.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Long-Lived Assets |
Long-Lived Assets
The Company reviews long-lived assets, other than goodwill, for impairment whenever events or changes in circumstances indicate that the carrying value of an asset may not be recoverable. The Company assesses recoverability by determining whether the net book value of the related asset will be recovered through the projected undiscounted future cash flows of the asset. If the Company determines that the carrying value of the asset is not recoverable, it measures any impairment based on the fair value of the asset as compared to its carrying value. During the years ended December 31, 2025, 2024, and 2023, the Company did not record any impairment charges on its long-lived assets.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Employee Rights Upon Severance |
Employee Rights Upon Severance
The Company is required to make severance payments to its Israeli employees upon dismissal of an employee or upon a termination of employment in certain circumstances. The Israeli pension and severance pay liability to the employees is covered mainly by deposits made at insurance companies. For its employees who are employed under the Section 14 of the Israeli Severance Pay Law, 1963 (“Section 14”), the Company makes deposits with certain insurance companies for accounts controlled by each applicable employee in order to secure the employees’ rights upon termination. In addition, the related obligation and amounts deposited on behalf of the applicable employees for such obligations are not presented on the Company’s consolidated balance sheets, as the amounts funded are not under the control of management of the Company and the Company is legally released from the obligation to pay any severance payments to the employees once the required deposit amounts have been paid.
For employees not covered under Section 14, severance liabilities are recorded based on the length of service and their latest monthly salary. The Company’s liabilities for the Israeli employees amounted to $1,507 and $1,385 as of December 31, 2025 and 2024, respectively, and are included in other liabilities in the Company’s consolidated balance sheets. The deposits made at insurance companies to cover these liabilities amounted to $1,190 and $938 as of December 31, 2025 and 2024, respectively, and are included in other assets in the Company’s consolidated balance sheets.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Leases |
Leases
The Company as a lessee
Leases are classified as finance or operating, with classification affecting the pattern and classification of expense recognition in the statements of operations. A lease is a finance lease if it meets any one of the criteria below, otherwise the lease is an operating lease:
The lease transfers ownership of the underlying asset to the lessee by the end of the lease term.
The lease grants the lessee an option to purchase the underlying asset that the lessee is reasonably certain to exercise.
The lease term is for the major part of the remaining economic life of the underlying asset.
The present value of the sum of the lease payments and any residual value guaranteed by the lessee that is not already reflected in the lease payments equals or exceeds substantially all of the fair value of the underlying asset.
The underlying asset is of such a specialized nature that it is expected to have no alternative use to the lessor at the end of lease term.
Based on the criteria above, all of the Company's leases are classified as operating leases.
Operating lease Rights of Use (“ROU”) assets and liabilities are recognized at the commencement date based on the present value of lease payments over the lease term, while the ROU assets are also adjusted for any prepaid or accrued lease payments. The Company uses its incremental borrowing rate based on the information available at the commencement date to determine the present value of the lease payments. The Company does not recognize ROU assets or lease liabilities for leases with a term shorter than 12 months.
The lease term is the non-cancellable period of the lease plus periods covered by an extension or termination option if it reasonably certain that the Company will exercise the option.
After lease commencement, the Company measures the lease liability as the present value of the remaining lease payments using the discount rate determined at lease commencement (as long as the discount rate hasn’t been updated as a result of a reassessment event).
The Company subsequently measures the ROU asset as the present value of the remaining lease payments, adjusted for the remaining balance of any lease incentives received, any cumulative prepaid or accrued rent if relevant and any unamortized initial direct costs. Lease expenses are recognized on a straight-line basis over the lease term. Lease terms will include options to extend or terminate the lease when it is reasonably certain that the Company will exercise or not exercise the option to renew or terminate the lease.
Variable lease payments that depend on an index or a rate
On the commencement date, the lease payments shall include variable lease payments that depend on an index or a rate (such as the Consumer Price Index or a market interest rate), initially measured using the index or rate at the commencement date.
The Company does not remeasure the lease liability for changes in future lease payments arising from changes in an index or rate unless the lease liability is remeasured for another reason. Therefore, after initial recognition, such variable lease payments are recognized in profit or loss as they are incurred.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Convertible Debt Instruments |
Convertible Debt Instruments
The Company evaluates convertible debt instruments at the time of issuance to determine whether the embedded conversion option needs to be bifurcated from the debt instrument and accounted for as a freestanding derivative instrument. An embedded conversion option is considered to be a freestanding derivative when: (a) the economic characteristics and risks of the embedded conversion option are not clearly and closely related to the economic characteristics and risks of the host instrument, (b) the hybrid instrument that embodies both the embedded conversion option and the host instrument is not re-measured at fair value under otherwise applicable US GAAP with changes in fair value reported in earnings as they occur, and (c) a separate instrument with the same terms as the embedded conversion option would be considered a derivative instrument subject to certain requirements.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Contingent Liabilities |
Contingent Liabilities
The Company is subject to various investigations, claims and legal proceedings covering a wide range of matters that arise in the normal course of its business activities. Liabilities for such contingencies are recognized when: (a) information available prior to the issuance of the consolidated financial statements indicates that it is probable that a liability had been incurred at the date of the consolidated financial statements and (b) the amount of loss can reasonably be estimated.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Comprehensive Income (Loss) and Accumulated Other Comprehensive Loss |
Comprehensive Income (Loss) and Accumulated Other Comprehensive Loss
The Company's comprehensive income (loss) consists of the Company’s net income (loss), foreign currency translation adjustments and changes in fair value of derivative instruments as cash flow instruments. Accumulated other comprehensive loss consists of the Company’s accumulated foreign exchange currency translation adjustments and changes in fair value of derivative instruments.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Stock Based Compensation |
Stock Based Compensation
Stock-based compensation to employees and non-employees, including stock options, are measured as the fair value of the award on the date of grant based on the estimated number of awards that are ultimately expected to vest. The compensation expense resulting from stock-based compensation to management and administrative employees is recorded over the vesting period of the award in selling, general and administrative expense on the accompanying consolidated statements of operations and comprehensive income (loss). Compensation expense resulting from stock-based compensation to operational employees is recorded over the vesting period of the award in cost of revenue.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Non-Controlling Interests |
Non-Controlling Interests
The Company’s non-controlling interests represent the minority shareholder’s ownership interests related to the Company’s subsidiaries. The Company reports its non-controlling interests in subsidiaries as a separate component of equity in the consolidated balance sheets and reports net income (loss) attributable to the non-controlling interests in the consolidated statements of operations and comprehensive income (loss).
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Redeemable Non-Controlling Interests |
Redeemable Non-Controlling Interests
When the Company or its subsidiaries issues preferred shares, it considers the provisions of FASB ASC 480 –“Distinguishing Liabilities from Equity” (Topic 480) in order to determine whether the preferred share should be classified as a liability. If the instrument is not within the scope of Topic 480, the Company further analyses the instruments characteristics in order to determine whether it should be classified within temporary equity (mezzanine) or within permanent equity in accordance with the provisions of Topic 480-10-S99. AU10TIX’s redeemable convertible preferred shares are not mandatorily or currently redeemable. However, it includes a liquidation or deemed liquidation events which constitutes a redemption event that is outside of the Company’s control. As such, all shares of redeemable preferred shares have been presented outside of permanent equity. The Company has not adjusted the carrying values of the redeemable preferred shares to the deemed liquidation values of such shares since a liquidation event was not probable at any of the balance sheet dates. Subsequent adjustments to increase or decrease the carrying values to the ultimate liquidation values will be made only if and when it becomes probable that such a liquidation event will occur.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Revenue Recognition |
Revenue Recognition
Revenue is recognized when the promised services are performed for the Company’s clients, and the amount that reflects the consideration the Company is entitled to receive in exchange for those services, is determined. The Company’s revenues are recorded net of any sales taxes.
In order to determine the revenue, the Company (1) identifies the contract with the client, (2) identifies the performance obligations, usually based on the hours spent, (3) determines the transaction price, (4) allocates the transaction price to the performance obligation and (5) recognizes revenue as the performance obligation is satisfied.
A performance obligation is a promise in a contract to transfer a distinct service to the client and it is the unit of account for revenue recognition. The majority of the Company’s contracts have a single performance obligation as the promise to transfer the individual services is not separately identifiable from other promises in the contracts and, therefore, is not distinct.
The following table presents the Company’s revenues according to the Company’s segments:
The following table presents the Company’s revenues generated from customers by geographical area based on the geographical location of the customers invoicing address:
Airport Security and Other Aviation Services Segments
In the airport security and other aviation services, for performance obligations that are satisfied over time, revenues are recognized by consistently applying a method of measuring hours spent on that performance obligation. ICTS generally utilizes an output method of time (hours and attendance for specific time framed service like specific flights) of the service provided. Performance obligations are satisfied over the course of each month and continue to be performed until the contract has been terminated or cancelled.
Pricing and Reduction to Revenues
The Company generally determines standalone selling prices based upon the prices included in the client contracts, using expected costs plus margin or other observable prices. The price as specified in client contracts is generally considered the standalone selling price as it is an observable input that depicts the price as if sold to a similar client in similar circumstances. Certain client contracts have variable provisions including quality thresholds or other similar items that could reduce the transaction price. These amounts may be constrained and revenue is recorded to the extent the Company does not expect a significant reversal or when the uncertainty associated with the variable provision is resolved. Variable provision amounts, if any, are not material, and the Company does not expect significant changes to its estimates.
Contracts
The Company’s client contracts generally include standard payment terms acceptable in each of the countries, states and territories in which it operates. The payment terms vary by the type and location of our clients and services offered. Client payments are typically due in 30 to 60 days after invoicing but may be a shorter or longer term depending on the contract. Our contracts with main customers are generally long-term between two to five years. The timing between satisfaction of the performance obligation, invoicing and payment is not significant.
Revenue Service Types
The following is a description of the Company’s revenue service types, including airport security, airline security, cargo security, other airport services, general security services and other services.
Airport Security
Staffing or manning for specialized airport security are usually based on a long-term contract issued via a public tender process. the Company recognizes revenue given the unit of measure (hours) provided in the given time period and the specific price for specific hours agreed upon in the contracts. Quality and criteria of staffing are described in the contracts and are measured in the given time period. Deviations, if any, are discussed with the customer before invoicing and are reflected in the invoice showing the approved hours and other cost elements as agreed upon price.
Most contracts have an hourly rate that reflects an all-in price based on a full cost price calculation. In some of the contracts, the hourly rates are split between a component based on hours and a component based on specific costs in a specific time period but always linked to the service provided in given time period. Revenue is recognized based on the realized hours and contractually agreed upon rate.
Airline Security
Staffing or manning for airline security is usually based on long-term contracts issued via a public tender procedure. The Company recognizes revenue according to the unit of measure provided (usually attendance for specific time framed service such as specific flights). When the manning for the security of these flights is delivered, the Company invoices the customer according to the agreed upon flight price.
Cargo Security
Staffing or manning for specialized cargo security are usually based on a long-term contract, sometimes publicly tendered. Contracts are based on hourly planned and executed screening services. Revenue is recognized based on the realized screening hours and contractually agreed upon hourly rate.
Other Airport Services
Other airport services include wheelchair attendants, pre-departure skycaps, bag-runners, agents, guards, charter security screening, janitorial, and cabin cleaning for major U.S. and foreign carriers in airports throughout the United States of America. The Company’s contracts may include either single or multiple performance obligations and vary by airport and airline. ICTS recognizes revenue given the unit of measure (usually hours) provided in the given time period and the specific price for specific hours or attendance for specific event, time framed service as agreed upon in the contracts.
General Security Services
General security services include providing armed and unarmed guards to private schools and places of worship, video surveillance and patrol. Contracts for general security services generally include only a single performance obligation. The Company recognizes revenue for security guard services given the unit of measure (hours) provided in the given time period. Revenue from video surveillance and patrol is recognized based upon a fixed monthly rate.
Other Services
Other services include revenues from incidental specialized security manning services, training services and ad hoc work performed on and off airports. Revenue is recognized over time as services are being performed, using the input of service delivered during the time period according to the contractual agreed price.
Authentication Technology Segment
In the authentication technology segment, the Company offers authentication services on a cost per click basis, with a minimum yearly commitment which means the customer pays the Company according to the higher of (a) number of times the customer used the system in order to authenticate IDs (recognized at a point of time) or (b) according to the yearly minimum commitment (recognized over time). According to the agreement with the customers, each chargeable click has an agreed price and revenue is being recognized accordingly.
Pricing and Reduction to Revenues
The Company determines standalone selling prices based upon the prices included in the client contracts using expected costs plus margin, or other observable prices. The price as specified in our client contracts is considered the selling price as agreed with the customer. The Company’s variable consideration amounts, if any, are not material, and the Company does not expect significant changes to our estimates. The Company does not expect a significant reversal when the uncertainty associated with the variable consideration is resolved. A customer may or may not be offered a tier-based pricing scheme but in any event of usage above the committed amount, the pricing will remain unchanged.
Contracts
Client contracts generally include standard payment terms acceptable in each of the countries, states and territories in which the company operates, and are typically set to a three-year duration. The payment terms vary by the type and location of our clients and services offered. The minimum commitment is usually paid in advance. Client payments are typically due 30 days after invoicing, but may be a shorter or longer term depending on the contract. Client contracts usually range from one to three years with a convenience exit every twelve months period, and at the end of the contract, there is a renewal option. The timing between satisfaction of the performance obligation, invoicing and payment is not significant.
Deferred Revenues
The Company records deferred revenues when cash payments are received or due in advance of our performance. Deferred revenues at December 31, 2025 and 2024 were $2,939 and $3,527, respectively shown as part of the accrued expenses. Revenue recognized for the years ended December 31, 2025, 2024 and 2023 that was included in the deferred revenue at the beginning of each year was $3,527, $4,938 and $3,570, respectively.
The Company’s payment terms vary by the type and location of the customer and the products or services offered. The term between invoicing and when payment is due is not significant.
Capitalized Contract Costs
As part of obtaining contracts with certain customers in the authentication technology segment, the Company incurs upfront costs such as sales commissions. The Company capitalizes these costs which are subsequently amortized on a straight-line basis over the estimated life of the relationship with the customer. The Company applies the practical expedient that allows it to determine this estimate for a portfolio of contracts that have similar characteristics in terms of type of service, contract term and pricing. This estimate is reviewed by management at the end of each reporting period as additional information becomes available. Capitalized contract costs as of December 31, 2025 and 2024 were $5 and $58, respectively. Amortization expense for capitalized contract costs for the years ended December 31, 2025, 2024 and 2023 were $53, $88 and $52, respectively.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Cost of Revenue |
Cost of Revenue
Cost of revenue represents primarily payroll and employee related costs associated with employees who provide services under the terms of the Company’s contractual arrangements, insurance and depreciation and amortization.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Research and Development Costs |
Research and Development Costs
Research and development costs are expensed as incurred and consist primarily of payroll and related costs, professional services, consulting services and non-capitalized costs associated with the development of technologies.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Advertising Costs |
Advertising Costs
Advertising costs are expensed as incurred and consist of costs associated with promoting the Company, its products and services as well as participation in conferences and publication costs. Advertising costs during the years ended December 31, 2025, 2024 and 2023 were $2,288, $2,934 and $3,107, respectively.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Value Added Tax |
Value Added Tax
Certain of the Company’s operations are subject to Value Added Tax (“VAT”) applied to the services sold in those respective countries. The Company is required to remit the VAT collected to the tax authorities but may deduct the VAT paid on certain eligible purchases.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Income Taxes |
Income Taxes
The Company accounts for income taxes using the liability method. Under this method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates applied to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities resulting from a change in tax rates is recognized in the period that includes the enactment date. A valuation allowance is established when realization of net deferred tax assets is unlikely to be considered more likely than not.
Uncertain income tax positions are determined based upon the likelihood of the positions being sustained upon examination by taxing authorities. The benefit of a tax position is recognized in the consolidated financial statements in the period during which management believes it is more-likely-than-not that the position will not be sustained. Income tax positions taken are not offset or aggregated with other positions. Income tax positions that meet the more-likely-than-not recognition threshold are measured as the largest amount of income tax benefit that is more than 50 percent likely of being realized if challenged by the applicable taxing authority. The portion of the benefits associated with income tax positions taken that exceeds the amount measured is reflected as income taxes payable.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Income (Loss) Per Share |
Income (Loss) Per Share
Basic income (loss) per share is computed by dividing net income (loss) available to common shareholders by the weighted average number of shares of common stock outstanding during the period. Diluted income (loss) per share is determined in the same manner as basic income (loss) per share, except that the number of shares is increased to include potentially dilutive securities using the treasury stock method.
The Company had a net loss for the years ended December 31, 2025 and 2024. For periods of net loss, diluted loss per share is calculated similarly to basic loss per share because the impact of all dilutive potential common share is anti-dilutive due to the net loss. Due to the net loss during those years, potentially dilutive securities were excluded from the computation of diluted loss per share.
The Company had net income for the year ended December 31, 2023. Potentially dilutive securities were included in the computation of diluted income per share as the conversion rate of the convertible note payable to related party was lower than the weighted average computed price of the Company’s stock during 2023.
The number of shares of common stock attributable to potentially dilutive securities for the years ended December 31, 2025, 2024 and 2023 were 0, 5,566 and 1,990,173 shares. As of December 31, 2025 and 2024, potentially dilutive shares were excluded from the loss per share calculation due to being anti-dilutive. In computing diluted earnings per share in 2023, the Company took into its calculation additional conversion of the convertible note using the conversion method and 1,990,173 shares of common stock attributable to potentially dilutive securities that could occur upon the exercise of options granted under employee stock compensation plans using the treasury stock method.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Fair Value of Financial Instruments |
Fair Value of Financial Instruments
The fair value of cash and cash equivalents, restricted cash, bank deposits, accounts receivable, prepaid expenses and other current assets, notes payable – financial institutions payable, accounts payable, accrued expenses and other current liabilities, income tax and other taxes payable and VAT payable approximate their carrying values due to the short-term nature of the instruments. The carrying value of the severance pay in other liabilities is not readily determinable because: (a) these instruments are not traded and, therefore, no quoted market prices exist upon which to base an estimate of fair value and (b) there were no readily determinable similar instruments on which to base an estimate of fair value.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Concentration of Credit Risk |
Concentration of Credit Risk
Financial instruments which are subject to concentrations of credit risk consist primarily of cash and cash equivalents, restricted cash, bank deposits and accounts receivable.
The Company maintains cash, cash equivalents, restricted cash and bank deposits in accounts with financial institutions in the United States of America, Europe, Japan and Israel. As of December 31, 2025 and 2024, accounts at financial institutions located in the United States of America are insured by the Federal Deposit Insurance Corporation (“FDIC”) up to $250 per institution. As of December 31, 2025 and 2024, cash, cash equivalents, restricted cash and bank deposits of $1,507 and $1,128, respectively, are being held in the United States of America, of which $1,007 and $828, respectively, are uninsured. Cash, cash equivalents, restricted cash and bank deposits located in Europe, Japan and Israel, totaling $59,230 and $86,276 as of December 31, 2025 and 2024, respectively, are uninsured.
The Company renders services to a limited number of airlines and airports through service contracts and provides credit without collateral. Some of these airlines and airports may have difficulties in meeting their financial obligations, which can have a material adverse effect on the Company’s consolidated financial position, results of operations and cash flows. To mitigate this risk, the Company regularly reviews the creditworthiness of its customers through its credit evaluation process.
Revenue from three customers represented 50% of total revenue for the year ended December 31, 2025 and 37% of total accounts receivable as of December 31, 2025, of which customer A accounted for 20% from total revenue and 16% of total accounts receivable. Customer B accounted for 15% from total revenue and 10% of total accounts receivable and customer C accounted for 15% from total revenue and 11% of total accounts receivable. Accounts receivable from these three customers represented 37% of total accounts receivable as of December 31, 2025. Revenue from these three customers is presented under the airport security segment of the Company.
Revenue from three customers represented 47% of total revenue for the year ended December 31, 2024 and 24% of total accounts receivable as of December 31, 2024, of which customer A accounted for 18%, from total revenue and 13% of total accounts receivable. Customer B accounted for 17%, from total revenue and 1% of total accounts receivable and customer C accounted for 12% from total revenue and 9% of total accounts receivable. Revenue from these three customers is presented under the airport security segment of the Company.
Revenue from two customers represented 34% of total revenue for the year ended December 31, 2023 and 20% of total accounts receivable as of December 31, 2023, of which customer A accounted for 20% from total revenue and 13% of total accounts receivable, and customer B accounted for 14% of total revenue and 7% of total accounts receivable. Revenue from these two customers is presented under the airport security segment of the Company.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Risks and Uncertainties |
Risks and Uncertainties
The Company is currently engaged in direct operations in numerous countries and is therefore subject to risks associated with international operations (including economic and/or political instability, trade restrictions and strikes). Such risks can cause the Company to have significant difficulties in connection with the sale or provision of its services in international markets and have a material impact on the Company’s consolidated financial position, results of operations and cash flows.
The Company is subject to changes in interest rates based on Central Banks Federal Reserve actions and general market conditions. The Company does not utilize derivative instruments to manage its exposure to interest rate risk.
Furthermore, as a result of its international operations, the Company is subject to market risks associated with foreign currency exchange rate fluctuations. The Company does not utilize derivative instruments to manage its exposure to such market risk except in one of its subsidiaries. As such, significant foreign currency exchange rate fluctuations can have a material impact on the Company’s consolidated financial position, results of operations and cash flows.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Reclassification |
Reclassification
Certain amounts have been reclassified within the year ended December 31, 2023 consolidated statements of cash flows to conform with current period presentation.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Recently Issued Accounting Pronouncements |
Recently Issued Accounting Pronouncements
Accounting Standards Update 2025-12
In December 2025, the FASB issued ASU 2025-12 “Codification Improvements” to address suggestions received from stakeholders on the Accounting Standards Codification and to make other incremental improvements to U.S. GAAP. The update represents changes to the Codification that (1) clarify, (2) correct errors, or (3) make minor improvements. The amendments make the Codification easier to understand and apply. The guidance is effective for fiscal years beginning after December 15, 2026, including interim periods within those fiscal years. The Company is currently evaluating this guidance to determine the impact it may have on its consolidated financial statements.
Accounting Standards Update 2025-11
In December 2025, the FASB issued ASU 2025-11, “Interim Reporting (Topic 270) Narrow-Scope Improvements.” The amendments in this Update clarify interim disclosure requirements and the applicability of Topic 270. The objective of the update is to provide clarity about current interim requirements. The amendments in this update also include a disclosure principle that requires entities to disclose events since the end of the last annual reporting period that have a material impact on the entity. The amendments in this ASU are required to be adopted for interim periods within annual reporting periods beginning after December 15, 2027. Early adoption is permitted. The Company is currently evaluating this guidance to determine the impact it may have on its consolidated financial statements.
Accounting Standards Update 2025-09
In November 2025, the FASB issued ASU 2025-09, Derivatives and Hedging (Topic 815): Hedge Accounting Improvements. The update expands the ability to apply hedge accounting to more diverse risk management strategies and simplifies the requirements for grouping forecasted transactions. The guidance is effective for the Company beginning January 1, 2027, with early adoption permitted. The Company has evaluated the amendments and determined that while they may simplify certain documentation procedures, the adoption of this update is not expected to have a material impact on its consolidated financial statements.
Accounting Standards Update 2025-08
In November 2025, the FASB issued ASU 2025-08, Financial Instruments—Credit Losses (Topic 326): Purchased Loans. This update introduces the "purchased seasoned loan" (PSL) category, which allows acquired loans that meet certain age and "involvement" criteria to use a gross-up approach for the credit loss allowance, rather than recording an immediate "Day 1" loss in earnings. The guidance is effective for fiscal years beginning after December 15, 2026. The adoption of this update is not expected to have a material impact on its consolidated financial statements.
Accounting Standards Update 2025-06
In September 2025, the FASB issued ASU 2025-06, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40). This update modernizes the accounting for software costs by removing legacy "development stages" and instead requiring capitalization to begin when it is probable that a software project will be completed and used for its intended function. The guidance is effective for the Company for annual periods beginning after December 15, 2026. The Company is evaluating the impact of this ASU in its financial statements.
Accounting Standards Update 2025-05
In July 2025, the FASB issued ASU 2025-05, Financial Instruments—Credit Losses (Topic 326): Practical Expedient for Estimating Expected Credit Losses. The update provides a practical expedient allowing entities to assume that current economic conditions at the balance sheet date will remain constant over the remaining life of the asset when estimating credit losses for trade receivables and contract assets. The guidance is effective for fiscal years beginning after December 15, 2025. The Company intends to elect this practical expedient upon early adoption and does not expect it to have a material impact on its allowance for credit losses or consolidated financial statements.
Accounting Standards Update 2024-03
In November 2024, the Financial Standards Accounting Board (FASB) issued Accounting Standards Update (ASU) 2024-03 "Income Statement – Reporting Comprehensive Income – Expense Disaggregation Disclosures (Subtopic 220-40)" which expands annual and interim disclosure requirements for certain costs and expenses, primarily through enhanced disclosures. ASU 2024-03 is effective for our annual periods beginning December 15, 2026, and for interim periods beginning December 15, 2027, with early adoption permitted. The Company is currently evaluating this guidance to determine the impact it may have on its consolidated financial statements disclosures.
Accounting Standards Update 2023-09
In December 2023, the FASB issued ASU 2023-09 Improvements to Income Tax Disclosures (“ASU 2023-09”). ASU 2023-09 improves the transparency of income tax disclosures by requiring (1) consistent categories and greater disaggregation of information in the rate reconciliation and (2) income taxes paid disaggregated by jurisdiction. It also includes certain other amendments to improve the effectiveness of income tax disclosures. For public business entities, the ASU is effective for annual periods beginning after December 15, 2024. The Company implemented the new income tax disclosures retrospectively. The implementation of ASU 2023-09 affected disclosures only and had no impact on the Company’s financial condition or results of operations (See Note 15 Income Taxes).
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
SIGNIFICANT ACCOUNTING POLICIES (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2025 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Reconciliation of Cash and Restricted Cash |
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Property and Equipment Estimated Useful Lives |
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Revenues Segments |
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Disaggregated by Geography and Percentage of Revenues |
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PREPAID EXPENSES AND OTHER CURRENT ASSETS (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2025 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Prepaid Expense, Current [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Prepaid Expenses and Other Current Assets |
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
INVESTMENTS (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2025 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Investments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Investments |
The Company has an agreement with an entity related to its main shareholder, according to which, if the value of the investment decreases, the related party entity has guaranteed to repurchase this full investment at a minimum amount of $1,750. The guarantee is effective immediately as of the date of purchase and terminates on January 1, 2027. Some Directors, managers and shareholders of Arrow are related parties of the Company.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PROPERTY AND EQUIPMENT (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2025 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Property, Plant and Equipment [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Property and Equipment |
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
LEASES (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2025 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Lessee Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Components of Lease Cost |
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Cash Paid for Amounts Included in Measurement of Lease Liabilities |
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Supplemental Balance Sheet Information Related to Leases |
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Future Minimum Lease Payment |
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
GOODWILL (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2025 | |||||||||||||||||||||||||||||||||||||
| Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||
| Schedule of Goodwill |
|
||||||||||||||||||||||||||||||||||||
FINANCIAL INSTITUTIONS PAYABLE (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2025 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Notes Payable to Bank [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Financial Liabilities |
* Maximum availability is subject to terms and conditions according to the agreements with the different financial institutions.
** Loans can be used only for payment of taxes in Spain.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2025 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Payables and Accruals [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Accrued Expenses and Other Current Liabilities |
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
OTHER LIABILITIES (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2025 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Other Liabilities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Other Liabilities |
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||
REDEEMABLE NON-CONTROLLING INTERESTS (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2025 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Noncontrolling Interest [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Redeemable Non-controlling Interests |
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
STOCK-BASED COMPENSATION (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2025 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Stock Option Activity |
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
OTHER INCOME, NET (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2025 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Other Income and Expenses [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Other Income (Expenses), Net |
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
INCOME TAXES (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2025 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Components of Income (Loss) before Income Tax Benefit (Expense) |
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Deferred Tax Assets and Liabilities |
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Effective Income Tax Rate Reconciliation |
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Cash Paid for Income Taxes, Net of Refunds |
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Reconciliation of Unrecognized Tax Benefits |
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
SEGMENT AND GEOGRAPHICAL INFORMATION (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2025 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Segment Reporting [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Operating Results by Segment |
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Revenues by Geographic Area |
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Property and Equipment, Net by Geographic Regions |
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
SIGNIFICANT ACCOUNTING POLICIES (Schedule of Reconciliation of Cash and Restricted Cash) (Details) - USD ($) $ in Thousands |
Dec. 31, 2025 |
Dec. 31, 2024 |
Dec. 31, 2023 |
Dec. 31, 2022 |
|---|---|---|---|---|
| Accounting Policies [Abstract] | ||||
| Cash and cash equivalents | $ 16,890 | $ 64,668 | $ 55,222 | |
| Restricted cash - short term | 1,110 | 2,858 | 9,766 | |
| Bank deposits | 10,305 | 18,083 | 34,002 | |
| Restricted cash - long term | 1,669 | 1,795 | 2,037 | |
| Total cash, cash equivalents, restricted cash and bank deposits shown in the statement of cash flows | $ 29,974 | $ 87,404 | $ 101,027 | $ 95,962 |
SIGNIFICANT ACCOUNTING POLICIES (Schedule of Property and Equipment Estimated Useful Lives) (Details) |
Dec. 31, 2025 |
|---|---|
| Equipment and furniture [Member] | Minimum [Member] | |
| Accounting Policies Line Items | |
| Estimated useful life | 3 years |
| Equipment and furniture [Member] | Maximum [Member] | |
| Accounting Policies Line Items | |
| Estimated useful life | 7 years |
| Internal use software [Member] | Minimum [Member] | |
| Accounting Policies Line Items | |
| Estimated useful life | 3 years |
| Internal use software [Member] | Maximum [Member] | |
| Accounting Policies Line Items | |
| Estimated useful life | 4 years |
| Vehicles [Member] | Minimum [Member] | |
| Accounting Policies Line Items | |
| Estimated useful life | 3 years |
| Vehicles [Member] | Maximum [Member] | |
| Accounting Policies Line Items | |
| Estimated useful life | 7 years |
SIGNIFICANT ACCOUNTING POLICIES (Schedule of Revenues Segments) (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
|---|---|---|---|
Dec. 31, 2025 |
Dec. 31, 2024 |
Dec. 31, 2023 |
|
| Accounting Policies Line Items | |||
| Total revenues | $ 534,376 | $ 483,310 | $ 431,542 |
| Airport security [Member] | |||
| Accounting Policies Line Items | |||
| Total revenues | 421,818 | 362,799 | 309,335 |
| Other aviation related services [Member] | |||
| Accounting Policies Line Items | |||
| Total revenues | 81,106 | 74,526 | 66,463 |
| Authentication technology [Member] | |||
| Accounting Policies Line Items | |||
| Total revenues | $ 31,452 | $ 45,985 | $ 55,744 |
SIGNIFICANT ACCOUNTING POLICIES (Schedule of Disaggregated by Geography and Percentage of Revenues) (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
|---|---|---|---|
Dec. 31, 2025 |
Dec. 31, 2024 |
Dec. 31, 2023 |
|
| Accounting Policies Line Items | |||
| Total revenues | $ 534,376 | $ 483,310 | $ 431,542 |
| Percentage of Revenues | 100.00% | 100.00% | 100.00% |
| Germany [Member] | |||
| Accounting Policies Line Items | |||
| Total revenues | $ 158,224 | $ 128,278 | $ 114,176 |
| Percentage of Revenues | 30.00% | 27.00% | 26.00% |
| Spain [Member] | |||
| Accounting Policies Line Items | |||
| Total revenues | $ 130,258 | $ 113,177 | $ 82,217 |
| Percentage of Revenues | 24.00% | 23.00% | 19.00% |
| The Netherlands [Member] | |||
| Accounting Policies Line Items | |||
| Total revenues | $ 111,804 | $ 106,027 | $ 101,512 |
| Percentage of Revenues | 21.00% | 22.00% | 24.00% |
| United States [Member] | |||
| Accounting Policies Line Items | |||
| Total revenues | $ 93,008 | $ 97,000 | $ 99,765 |
| Percentage of Revenues | 17.00% | 20.00% | 23.00% |
| Other countries [Member] | |||
| Accounting Policies Line Items | |||
| Total revenues | $ 41,082 | $ 38,828 | $ 33,872 |
| Percentage of Revenues | 8.00% | 8.00% | 8.00% |
PREPAID EXPENSES AND OTHER CURRENT ASSETS (Schedule of Prepaid Expenses and Other Current Assets Consist) (Details) - USD ($) $ in Thousands |
Dec. 31, 2025 |
Dec. 31, 2024 |
||
|---|---|---|---|---|
| Prepaid Expense, Current [Abstract] | ||||
| Receivable from the German authorities | [1] | $ 393 | $ 350 | |
| Income tax receivable | 509 | 2,123 | ||
| Interest from bank deposits | 718 | 459 | ||
| Value Added Tax (VAT) receivable | 600 | 404 | ||
| Prepaid uniforms | 828 | 814 | ||
| Prepaid insurance | 905 | 576 | ||
| Prepaid licenses | 858 | 685 | ||
| Prepaid rent | 657 | 412 | ||
| Other | 900 | 1,866 | ||
| Total prepaid expenses and other current assets | $ 6,368 | $ 7,689 | ||
| ||||
INVESTMENTS (Narrative) (Details) - USD ($) $ in Thousands |
12 Months Ended | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|
Jan. 01, 2023 |
Dec. 31, 2025 |
Dec. 31, 2024 |
Dec. 31, 2023 |
Mar. 31, 2026 |
Dec. 31, 2019 |
|||||
| Investments [Line Items] | ||||||||||
| Total investment | $ 357 | $ 277 | ||||||||
| Realized Investment Gain (Loss) | 0 | $ 0 | $ 707 | |||||||
| Arrow Ecology & Engineering Overseas (1999) [Member] | ||||||||||
| Investments [Line Items] | ||||||||||
| Price paid for debt | $ 4,146 | |||||||||
| Ownership interest | 22.60% | [1] | 22.60% | [1] | 22.60% | |||||
| Total investment | $ 1,750 | |||||||||
| Guaranteed to repurchase full investment | 1,750 | |||||||||
| Arrow Ecology & Engineering Overseas (1999) [Member] | Subsequent Event [Member] | ||||||||||
| Investments [Line Items] | ||||||||||
| Total investment | $ 500 | |||||||||
| Manuka, Inc. (Previously Artemis Therapeutics, Inc.) [Member] | ||||||||||
| Investments [Line Items] | ||||||||||
| Market value | 0 | $ 0 | ||||||||
| Capital Fund Aims To Invest In Private Emerging Companies With Focus On Consumer, Commerce And Technology Companies [Member] | ||||||||||
| Investments [Line Items] | ||||||||||
| Committed to invest | $ 100 | |||||||||
| Sardinai [Member] | ||||||||||
| Investments [Line Items] | ||||||||||
| Percentage of investment sold | 85.00% | |||||||||
| Investment sold | $ 756 | |||||||||
| ||||||||||
INVESTMENTS (Details) - USD ($) $ in Thousands |
12 Months Ended | ||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2025 |
Dec. 31, 2024 |
Dec. 31, 2019 |
|||||||||||||
| Investments [Line Items] | |||||||||||||||
| Carrying value | $ 357 | $ 277 | |||||||||||||
| Manuka, Inc. (Previously Artemis Therapeutics, Inc.) [Member] | |||||||||||||||
| Investments [Line Items] | |||||||||||||||
| Investments, Measurement Method | [1] | Measurement alternative | Measurement alternative | ||||||||||||
| Carrying value | [1] | $ 0 | $ 0 | ||||||||||||
| Ownership interest description | [1] | Less than 1% | Less than 1% | ||||||||||||
| Arrow Ecology & Engineering Overseas (1999) [Member] | |||||||||||||||
| Investments [Line Items] | |||||||||||||||
| Investments, Measurement Method | [2] | Equity method | Equity method | ||||||||||||
| Carrying value | [2] | $ 0 | $ 0 | ||||||||||||
| Ownership interest | 22.60% | [2] | 22.60% | [2] | 22.60% | ||||||||||
| Mesh Technologies, Inc. [Member] | |||||||||||||||
| Investments [Line Items] | |||||||||||||||
| Investments, Measurement Method | [3] | Measurement alternative | Measurement alternative | ||||||||||||
| Carrying value | [3] | $ 36 | $ 36 | ||||||||||||
| Ownership interest description | [3] | Less than 1% | Less than 1% | ||||||||||||
| GreenFox Logistics LLC. [Member] | |||||||||||||||
| Investments [Line Items] | |||||||||||||||
| Investments, Measurement Method | [3] | Measurement alternative | Measurement alternative | ||||||||||||
| Carrying value | [3] | $ 100 | $ 100 | ||||||||||||
| Ownership interest description | [3] | Less than 1% | Less than 1% | ||||||||||||
| SardineAI Corp. [Member] | |||||||||||||||
| Investments [Line Items] | |||||||||||||||
| Investments, Measurement Method | [3],[4] | Measurement alternative | Measurement alternative | ||||||||||||
| Carrying value | [3],[4] | $ 8 | $ 8 | ||||||||||||
| Ownership interest description | [3],[4] | Less than 1% | Less than 1% | ||||||||||||
| Silver Circle One [Member] | |||||||||||||||
| Investments [Line Items] | |||||||||||||||
| Investments, Measurement Method | [3],[5] | Measurement alternative | Measurement alternative | ||||||||||||
| Carrying value | [3],[5] | $ 88 | $ 58 | ||||||||||||
| Ownership interest description | [3],[5] | Less than 1% | Less than 1% | ||||||||||||
| Bring it On Games Ltd [Member] | |||||||||||||||
| Investments [Line Items] | |||||||||||||||
| Investments, Measurement Method | [3] | Measurement alternative | Measurement alternative | ||||||||||||
| Carrying value | [3] | $ 50 | $ 0 | ||||||||||||
| Ownership interest description | [3] | Less than 1% | - | ||||||||||||
| Justt Fintech Ltd (previously Acrocharge Ltd) [Member] | |||||||||||||||
| Investments [Line Items] | |||||||||||||||
| Investments, Measurement Method | [3] | Measurement alternative | Measurement alternative | ||||||||||||
| Carrying value | [3] | $ 50 | $ 50 | ||||||||||||
| Ownership interest description | [3] | Less than 1% | Less than 1% | ||||||||||||
| Nilus OS Ltd [Member] | |||||||||||||||
| Investments [Line Items] | |||||||||||||||
| Investments, Measurement Method | [3] | Measurement alternative | Measurement alternative | ||||||||||||
| Carrying value | [3] | $ 25 | $ 25 | ||||||||||||
| Ownership interest description | [3] | Less than 1% | Less than 1% | ||||||||||||
| |||||||||||||||
PROPERTY AND EQUIPMENT (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
|---|---|---|---|
Dec. 31, 2025 |
Dec. 31, 2024 |
Dec. 31, 2023 |
|
| Property, Plant and Equipment [Line Items] | |||
| Total property and equipment, gross | $ 15,815 | $ 14,559 | |
| Less: accumulated depreciation and amortization | 11,058 | 9,893 | |
| Total property and equipment, net | 4,757 | 4,666 | |
| Depreciation expense | 2,101 | 2,371 | $ 2,679 |
| Internal use software [Member] | |||
| Property, Plant and Equipment [Line Items] | |||
| Total property and equipment, gross | 3,529 | 3,396 | |
| Office, equipment and facilities [Member] | |||
| Property, Plant and Equipment [Line Items] | |||
| Total property and equipment, gross | 7,064 | 6,440 | |
| Vehicles [Member] | |||
| Property, Plant and Equipment [Line Items] | |||
| Total property and equipment, gross | 2,231 | 2,127 | |
| Leasehold Improvements [Member] | |||
| Property, Plant and Equipment [Line Items] | |||
| Total property and equipment, gross | $ 2,991 | $ 2,596 | |
LEASES (Schedule of Components of Lease Expense) (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
|---|---|---|---|
Dec. 31, 2025 |
Dec. 31, 2024 |
Dec. 31, 2023 |
|
| Lease Cost | |||
| Operating lease cost | $ 6,055 | $ 5,684 | $ 4,915 |
| Short term lease cost | 2,811 | 2,208 | 1,609 |
| Total lease cost | 8,866 | 7,892 | 6,524 |
| Cash paid for amounts included in the measurement of Lease liabilities: | |||
| Operating cash flows from operating leases | 6,117 | 5,672 | 4,902 |
| Right of use assets obtained in exchange for new operating lease liabilities | $ 794 | $ 10,680 | $ 1,655 |
| Weighted-average remaining lease term-operating leases | 4 years 7 months 6 days | 4 years 6 months | 2 years 7 months 6 days |
| Weighted-average discount rate | 7.35% | 7.33% | 5.94% |
LEASES (Schedule of Supplemental Balance Sheet Information Related to Leases) (Details) - USD ($) $ in Thousands |
Dec. 31, 2025 |
Dec. 31, 2024 |
|---|---|---|
| Lessee Disclosure [Abstract] | ||
| Operating lease ROU assets | $ 9,698 | $ 13,138 |
| Operating lease liabilities - current | 3,273 | 4,876 |
| Operating lease liabilities - non-current | 6,737 | 8,296 |
| Total operating lease liabilities | $ 10,010 | $ 13,172 |
LEASES (Schedule of Future Minimum Lease Payments) (Details) - USD ($) $ in Thousands |
Dec. 31, 2025 |
Dec. 31, 2024 |
|---|---|---|
| Operating leases | ||
| 2026 | $ 3,787 | |
| 2027 | 2,923 | |
| 2028 | 1,786 | |
| 2029 | 715 | |
| 2030 | 503 | |
| Thereafter | 1,973 | |
| Total future minimum lease payments | 11,687 | |
| Less: imputed interest | 1,677 | |
| Total | $ 10,010 | $ 13,172 |
GOODWILL (Schedule of Goodwill) (Details) - USD ($) $ in Thousands |
12 Months Ended | |
|---|---|---|
Dec. 31, 2025 |
Dec. 31, 2024 |
|
| Goodwill [Roll Forward] | ||
| Balance as of the beginning of the year | $ 633 | $ 668 |
| Exchange rate effect | 80 | (35) |
| Balance as of the end of the year | $ 713 | $ 633 |
FINANCIAL INSTITUTIONS PAYABLE - (Schedule of Financial Institutions) (Details) - USD ($) $ in Thousands |
Dec. 31, 2025 |
Dec. 31, 2024 |
||||
|---|---|---|---|---|---|---|
| Debt Instrument [Line Items] | ||||||
| Maximum Availability | [1] | $ 24,595 | $ 22,588 | |||
| Debt Balance | $ 7,761 | $ 3,181 | ||||
| Interest rate | 4.86% | 5.23% | ||||
| Line of Credit [Member] | ||||||
| Debt Instrument [Line Items] | ||||||
| Maximum Availability | [1] | $ 7,500 | $ 7,500 | |||
| Debt Balance | $ 31 | $ 0 | ||||
| Interest rate | 6.52% | 7.14% | ||||
| Factoring [Member] | ||||||
| Debt Instrument [Line Items] | ||||||
| Maximum Availability | [1] | $ 434 | $ 363 | |||
| Debt Balance | $ 84 | $ 201 | ||||
| Interest rate | 4.90% | 5.30% | ||||
| Revolving Loans [Member] | ||||||
| Debt Instrument [Line Items] | ||||||
| Maximum Availability | [1] | $ 1,173 | $ 1,041 | |||
| Debt Balance | $ 0 | $ 0 | ||||
| Interest rate | 3.73% | 3.20% | ||||
| Revolving Loans [Member] | ||||||
| Debt Instrument [Line Items] | ||||||
| Maximum Availability | [1],[2] | $ 1,760 | $ 1,561 | |||
| Debt Balance | [2] | $ 392 | $ 1,041 | |||
| Interest rate | [2] | 3.07% | 4.00% | |||
| Revolving Loans [Member] | ||||||
| Debt Instrument [Line Items] | ||||||
| Maximum Availability | [1],[2] | $ 176 | $ 0 | |||
| Debt Balance | [2] | $ 0 | $ 0 | |||
| Interest rate | [2] | 0.90% | 0.00% | |||
| Factoring [Member] | ||||||
| Debt Instrument [Line Items] | ||||||
| Maximum Availability | [1] | $ 13,552 | $ 12,123 | |||
| Debt Balance | $ 7,254 | $ 1,939 | ||||
| Interest rate | 4.95% | 5.89% | ||||
| ||||||
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Details) - USD ($) $ in Thousands |
Dec. 31, 2025 |
Dec. 31, 2024 |
|---|---|---|
| Payables and Accruals [Abstract] | ||
| Accrued payroll and related costs | $ 30,829 | $ 27,150 |
| Accrued vacation | 11,694 | 9,817 |
| Deferred revenue | 2,939 | 3,527 |
| Advanced payment from a customer | 0 | 4,783 |
| Commitment to purchase shares from directors and officers | 0 | 1,518 |
| Accrued VAT differences | 719 | 0 |
| Other | 4,182 | 4,020 |
| Total accrued expenses and other liabilities | $ 50,363 | $ 50,815 |
OTHER LIABILITIES (Schedule of Other Liabilities) (Details) - USD ($) $ in Thousands |
Dec. 31, 2025 |
Dec. 31, 2024 |
||
|---|---|---|---|---|
| Other Liabilities [Abstract] | ||||
| Deferred wage tax and social security | [1] | $ 6,211 | $ 7,227 | |
| Deferred VAT | [1] | 4,168 | 4,858 | |
| Severance pay liability | 2,139 | 1,881 | ||
| Total other liabilities | $ 12,518 | $ 13,966 | ||
| ||||
REDEEMABLE NON-CONTROLLING INTERESTS (Narrative) (Details) - USD ($) $ in Thousands |
12 Months Ended | ||||
|---|---|---|---|---|---|
Jul. 03, 2021 |
Dec. 31, 2026 |
Dec. 31, 2025 |
Dec. 31, 2021 |
Dec. 31, 2019 |
|
| Series A Preferred Stock [Member] | |||||
| Percentage of shareholders holding required for exit rights | 60.00% | ||||
| AU10TIX Technologies [Member] | |||||
| Net consideration related to preferred shares issued | $ 74,000 | ||||
| Subscription price of preferred shares represents percentage of held share capital | 31.401% | ||||
| Holdings percentage of outstanding share capital | 30.22% | ||||
| AU10TIX Technologies [Member] | Series A Preferred Stock [Member] | |||||
| Number of preferred stock issued | 4,000,000 | ||||
| Conversion basis | 1:1 | ||||
| Number of preferred stock purchased | 2,267,717 | ||||
| AU10TIX Technologies [Member] | Series A-1 Preferred Stock [Member] | |||||
| Number of preferred stock issued | 330,709 | ||||
| AU10TIX Technologies [Member] | Series B Preferred Shares [Member] | |||||
| Conversion basis | 1:1 | ||||
| AU10TIX Technologies [Member] | Common Class B [Member] | |||||
| Holdings percentage of outstanding share capital | 66.30% | ||||
| AU10TIX Technologies [Member] | Investor [Member] | Common Class A [Member] | |||||
| Right to issue shares up to | 1,000,000 | ||||
| AU10TIX Technologies [Member] | Investor [Member] | Common Class A [Member] | Forecast [Member] | |||||
| Right to issue shares up to | 1,400,000 | ||||
| TPG [Member] | Series A Preferred Stock [Member] | |||||
| Subscription price of preferred shares represents percentage of held share capital | 7.25% | ||||
| Oak [Member] | Series A Preferred Stock [Member] | |||||
| Subscription price of preferred shares represents percentage of held share capital | 12.42% | ||||
| GF [Member] | Series A Preferred Stock [Member] | |||||
| Subscription price of preferred shares represents percentage of held share capital | 10.55% | ||||
| Other Shareholders [Member] | Common Class B [Member] | |||||
| Subscription price of preferred shares represents percentage of held share capital | 3.48% | ||||
REDEEMABLE NON-CONTROLLING INTERESTS (Schedule of Redeemable Non-controlling Interests) (Details) - USD ($) $ in Thousands |
12 Months Ended | |
|---|---|---|
Dec. 31, 2025 |
Dec. 31, 2024 |
|
| Noncontrolling Interest [Abstract] | ||
| Balance as of the beginning of the year | $ 90,737 | $ 93,521 |
| Net Income (loss) | (3,780) | 341 |
| Other Comprehensive Income - Translation adjustment | 66 | (47) |
| Other | 0 | (3,078) |
| Balance as of the end of the year | $ 87,023 | $ 90,737 |
GOVERNMENTAL SUPPORT (Narrative) (Details) € in Thousands, $ in Thousands |
Dec. 31, 2025
EUR (€)
|
Dec. 31, 2025
USD ($)
|
Dec. 31, 2024
EUR (€)
|
Dec. 31, 2024
USD ($)
|
|---|---|---|---|---|
| Value added tax (VAT) payable | $ 9,507 | $ 9,138 | ||
| The Netherlands [Member] | ||||
| Accumulated debt to tax authorities | € 12,156 | 14,260 | € 18,245 | 18,984 |
| Value added tax (VAT) payable | 1,335 | 1,566 | 2,671 | 2,779 |
| Income tax and other taxes payable | 1,985 | 2,329 | 3,971 | 4,132 |
| Other Liabilities | € 8,836 | $ 10,379 | € 11,603 | $ 12,085 |
STOCK-BASED COMPENSATION (Narrative) (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
|---|---|---|---|
Dec. 31, 2025 |
Dec. 31, 2024 |
Dec. 31, 2023 |
|
| Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
| Options exercisable | 48,375 | 191,900 | |
| Non vested options | 52,000 | 475,450 | |
| Share-based compensation expense | $ 58 | $ 859 | $ 714 |
| Unrecognized compensation cost related to stock options granted | $ 135 | $ 1,816 | |
| AU10TIX Technologies B.V [Member] | |||
| Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
| Common stock reserved for issuance | 1,400,000 | ||
STOCK-BASED COMPENSATION (Schedule of Stock Option Activity for Subsidiary) (Details) - $ / shares |
12 Months Ended | ||
|---|---|---|---|
Dec. 31, 2025 |
Dec. 31, 2024 |
Dec. 31, 2023 |
|
| Number of options | |||
| Options exercisable at end of period | 48,375 | 191,900 | |
| AU10TIX Technologies B.V [Member] | |||
| Number of options | |||
| Options outstanding, beginning balance | 667,350 | 858,625 | |
| Options granted | 18,000 | 118,100 | |
| Options exercised | (258,125) | (241,000) | |
| Options Forfeited | (326,850) | (68,375) | |
| Options outstanding, ending balance | 100,375 | 667,350 | 858,625 |
| Stock Option, Weighted Average Exercise Price | |||
| Options outstanding, beginning balance | $ 0.94 | $ 0.67 | |
| Options granted | 4.75 | 2.78 | |
| Options exercised | 0.01 | 0.01 | |
| Forfeited | 0.8 | 3.92 | |
| Options outstanding, ending balance | $ 2.34 | $ 0.94 | $ 0.67 |
| Stock Option, Additional Disclosures | |||
| Weighted average remaining contractual term | 7 years | 7 years | 6 years |
OTHER INCOME, NET (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
|---|---|---|---|
Dec. 31, 2025 |
Dec. 31, 2024 |
Dec. 31, 2023 |
|
| Other Income and Expenses [Abstract] | |||
| Interest expense to related parties | $ 0 | $ 0 | $ (21) |
| Interest expense and other bank charges | (1,302) | (750) | (471) |
| Interest expense to tax authorities | (687) | (940) | (1,182) |
| Interest income | 2,385 | 3,079 | 2,227 |
| Foreign currency gain (loss) | 175 | (74) | 362 |
| Gain from sale of investments | 0 | 0 | 707 |
| Other income (expense) | 6 | 112 | (38) |
| Total other income (expense), net | $ 577 | $ 1,427 | $ 1,584 |
INCOME TAXES (Narrative) (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
|---|---|---|---|
Dec. 31, 2025 |
Dec. 31, 2024 |
Dec. 31, 2023 |
|
| Income tax benefit (expense) | |||
| Current: Subsidiaries outside of The Netherlands | $ (408) | $ (357) | $ (2,299) |
| Current income tax expense in the Netherlands | 0 | 0 | 248 |
| Deferred: Subsidiaries outside of the Netherlands | (801) | (333) | 48 |
| Previous: Subsidiaries outside of The Netherlands | (435) | 800 | 754 |
| Federal Tax Expense Benefit | $ 0 | $ 248 | $ 0 |
INCOME TAXES (Narrative) (Details 1) - USD ($) $ in Thousands |
12 Months Ended | ||
|---|---|---|---|
Dec. 31, 2025 |
Dec. 31, 2024 |
Dec. 31, 2023 |
|
| Operating Loss Carryforwards [Line Items] | |||
| Change in valuation allowance | $ 3,294 | $ 3,268 | |
| Unrecognized Tax Benefits | $ 113 | $ 86 | $ 86 |
| Effective income tax rate | 25.80% | 25.80% | 25.80% |
| Effective Income Tax Rate Reconciliation, Percent | (9.80%) | 10.40% | 14.20% |
| Netherlands [Member] | |||
| Operating Loss Carryforwards [Line Items] | |||
| Net operating loss carry forward | $ 29,269 | ||
| Amount of carry forward interest | 2,689 | ||
| United States [Member] | |||
| Operating Loss Carryforwards [Line Items] | |||
| Tax credits for the welfare to work | 372 | ||
| Net operating loss carry forward | 7,549 | ||
| Amount of non expirable operating loss carry forward | 3,476 | ||
| Amount of carry forward interest | $ 4,986 | ||
INCOME TAXES (Schedule of Components of Income (Loss) before Income Tax Benefit (Expense) (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
|---|---|---|---|
Dec. 31, 2025 |
Dec. 31, 2024 |
Dec. 31, 2023 |
|
| Income Taxes [Line Items] | |||
| Income (loss) before income tax expenses | $ (16,837) | $ (4,353) | $ 12,316 |
| Netherlands [Member] | |||
| Income Taxes [Line Items] | |||
| Income (loss) before income tax expenses | (3,226) | 292 | 2,164 |
| Germany [Member] | |||
| Income Taxes [Line Items] | |||
| Income (loss) before income tax expenses | (2,979) | (5,303) | 828 |
| United States [Member] | |||
| Income Taxes [Line Items] | |||
| Income (loss) before income tax expenses | (117) | (1,074) | (1,620) |
| Spain [Member] | |||
| Income Taxes [Line Items] | |||
| Income (loss) before income tax expenses | (280) | 673 | 362 |
| Israel [Member] | |||
| Income Taxes [Line Items] | |||
| Income (loss) before income tax expenses | (10,757) | 273 | 10,076 |
| Other locations [Member] | |||
| Income Taxes [Line Items] | |||
| Income (loss) before income tax expenses | $ 522 | $ 786 | $ 506 |
INCOME TAXES (Schedule of Deferred Tax Assets and Liabilities) (Details) - USD ($) $ in Thousands |
Dec. 31, 2025 |
Dec. 31, 2024 |
|---|---|---|
| Deferred tax assets: | ||
| Operating loss carry forwards | $ 17,400 | $ 14,725 |
| Interest loss carry forward | 1,991 | 2,044 |
| Allowance for credit losses | 286 | 185 |
| Tax credit carry forwards | 372 | 480 |
| Accrued expenses | 264 | 324 |
| Research and development expenses, net | 87 | 151 |
| Other | 385 | 414 |
| Total deferred tax assets | 20,785 | 18,323 |
| Deferred tax liabilities: | ||
| Depreciation of property and equipment | (125) | (199) |
| Deferred tax assets net of deferred tax liabilities before valuation allowance | 20,660 | 18,124 |
| Valuation allowance | (20,195) | (16,901) |
| Deferred tax assets, net | $ 465 | $ 1,223 |
INCOME TAXES (Schedule of Effective Income Tax Rate Reconciliation) (Details) - USD ($) $ in Thousands |
12 Months Ended | ||||
|---|---|---|---|---|---|
Dec. 31, 2025 |
Dec. 31, 2024 |
Dec. 31, 2023 |
|||
| Amount | |||||
| Netherlands statutory tax rate | $ (4,344) | $ (1,124) | $ 3,178 | ||
| Changes in valuation allowance | 829 | (203) | (131) | ||
| Return to provision adjustments | 0 | (248) | 0 | ||
| Other | 8 | 129 | (175) | ||
| Income tax expense (benefit) | $ 1,644 | $ (452) | $ 1,745 | ||
| Rate | |||||
| Netherlands statutory tax rate | 25.80% | 25.80% | 25.80% | ||
| Changes in valuation allowance | (4.90%) | 4.70% | (1.10%) | ||
| Return to provision adjustments | 0.00% | 5.60% | 0.00% | ||
| Other | 0.00% | (2.90%) | (1.30%) | ||
| Income tax expense (benefit) | (9.80%) | 10.40% | 14.20% | ||
| United States [Member] | |||||
| Amount | |||||
| Changes in valuation allowance | $ (174) | $ 191 | $ 337 | ||
| Other | $ 283 | $ 132 | $ 186 | ||
| Rate | |||||
| Changes in valuation allowance | 1.00% | (4.40%) | 2.70% | ||
| Other | (1.70%) | (3.00%) | 1.50% | ||
| Germany [Member] | |||||
| Amount | |||||
| Foreign tax rate differential | $ 296 | $ 529 | $ (83) | ||
| State and local taxes | (482) | (774) | 193 | ||
| Changes in valuation allowance | 2,274 | 907 | 328 | ||
| Other | $ (1,141) | $ 366 | $ (243) | ||
| Rate | |||||
| Foreign tax rate differential | (1.80%) | (12.20%) | (0.70%) | ||
| State and local taxes | 2.90% | 17.80% | 1.60% | ||
| Changes in valuation allowance | (13.50%) | (20.80%) | 2.70% | ||
| Other | 6.80% | (8.40%) | (2.00%) | ||
| Spain [Member] | |||||
| Amount | |||||
| Changes in valuation allowance | $ 248 | $ (251) | $ (68) | ||
| Other | $ 134 | $ 71 | $ 196 | ||
| Rate | |||||
| Changes in valuation allowance | (1.50%) | 5.80% | (0.60%) | ||
| Other | (0.80%) | (1.60%) | 1.60% | ||
| Japan [Member] | |||||
| Amount | |||||
| Changes in valuation allowance | $ 0 | $ (560) | $ (69) | ||
| Other | $ 41 | $ (17) | $ 75 | ||
| Rate | |||||
| Changes in valuation allowance | 0.00% | 12.90% | (0.60%) | ||
| Other | (0.20%) | 0.40% | 0.60% | ||
| Israel [Member] | |||||
| Amount | |||||
| Foreign tax rate differential | $ 301 | $ (8) | $ (282) | ||
| Preferred technological enterprise | [1] | 1,183 | (30) | (1,107) | |
| Changes in valuation allowance | 1,964 | 0 | 0 | ||
| Other | $ 58 | $ 121 | $ (118) | ||
| Rate | |||||
| Foreign tax rate differential | (1.80%) | 0.20% | (2.30%) | ||
| Preferred technological enterprise | [1] | (7.00%) | 0.70% | (9.00%) | |
| Changes in valuation allowance | (11.70%) | 0.00% | 0.00% | ||
| Other | (0.30%) | (2.80%) | (1.00%) | ||
| Other foreign jurisdictions [Member] | |||||
| Amount | |||||
| Income tax expense (benefit) | $ 166 | $ 317 | $ (472) | ||
| Rate | |||||
| Income tax expense (benefit) | (1.10%) | (7.40%) | (3.70%) | ||
| |||||
INCOME TAXES (Schedule of Cash paid for Income Taxes, Net of Refunds) (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
|---|---|---|---|
Dec. 31, 2025 |
Dec. 31, 2024 |
Dec. 31, 2023 |
|
| Effective Income Tax Rate Reconciliation [Line Items] | |||
| Total cash paid for income taxes, net of refunds | $ (879) | $ 5,196 | $ 6,009 |
| Netherlands [Member] | |||
| Effective Income Tax Rate Reconciliation [Line Items] | |||
| Total cash paid for income taxes, net of refunds | 0 | 0 | 0 |
| Germany [Member] | |||
| Effective Income Tax Rate Reconciliation [Line Items] | |||
| Total cash paid for income taxes, net of refunds | 318 | 2,182 | 2,178 |
| Spain [Member] | |||
| Effective Income Tax Rate Reconciliation [Line Items] | |||
| Total cash paid for income taxes, net of refunds | (83) | 591 | 141 |
| Israel [Member] | |||
| Effective Income Tax Rate Reconciliation [Line Items] | |||
| Total cash paid for income taxes, net of refunds | (1,268) | 2,240 | 3,587 |
| Other foreign jurisdictions [Member] | |||
| Effective Income Tax Rate Reconciliation [Line Items] | |||
| Total cash paid for income taxes, net of refunds | $ 154 | $ 183 | $ 103 |
INCOME TAXES (Schedule of Reconciliation of Unrecognized Tax Benefits) (Details) - USD ($) $ in Thousands |
12 Months Ended | |
|---|---|---|
Dec. 31, 2025 |
Dec. 31, 2024 |
|
| Income Tax Disclosure [Abstract] | ||
| Balance at beginning of year | $ 86 | $ 86 |
| Additions based on tax positions taken in prior years | 27 | 0 |
| Balance at end of year | $ 113 | $ 86 |
RELATED PARTY TRANSACTIONS (Narrative) (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
|---|---|---|---|
Dec. 31, 2025 |
Dec. 31, 2024 |
Dec. 31, 2023 |
|
| Related Party Transaction [Line Items] | |||
| Legal expense | $ 26 | $ 39 | $ 46 |
| Selling and administrative services | 62,648 | 61,249 | 56,927 |
| Loan, face amount | 2,000 | ||
| Commitment to purchase shares from directors and officers | 0 | 1,518 | |
| Related Party One [Member] | |||
| Related Party Transaction [Line Items] | |||
| Selling and management services | 621 | 723 | 929 |
| Accrued expenses and other current liabilities | 0 | 103 | |
| Board fees | 52 | 48 | 36 |
| Related Party Two [Member] | |||
| Related Party Transaction [Line Items] | |||
| Selling and management services | 199 | 198 | 176 |
| Board fees | 24 | ||
| Related Party Three [Member] | |||
| Related Party Transaction [Line Items] | |||
| Management | 473 | 645 | 468 |
| Related Party Four [Member] | |||
| Related Party Transaction [Line Items] | |||
| Selling and management services | 88 | ||
| Selling and administrative services | 365 | 345 | 341 |
| Related Party Five [Member] | |||
| Related Party Transaction [Line Items] | |||
| Selling and administrative services | 123 | 115 | 114 |
| Revolving Loans [Member] | |||
| Related Party Transaction [Line Items] | |||
| Loan, face amount | 2,000 | ||
| Interest expense | 0 | 0 | 21 |
| Spencer Corporation [Member] | |||
| Related Party Transaction [Line Items] | |||
| Expenses incurred for services | 323 | 0 | 0 |
| Selling and administrative services | 215 | ||
| Board of Directors [Member] | |||
| Related Party Transaction [Line Items] | |||
| Amount of bonus paid | 625 | ||
| Board fees | 872 | 60 | 50 |
| Salary expenses | 268 | 833 | 103 |
| Board of Directors [Member] | Related Party Four [Member] | |||
| Related Party Transaction [Line Items] | |||
| Board fees | $ 29 | $ 48 | $ 38 |
COMMITMENTS AND CONTINGENCIES (Narrative) (Details) € / shares in Units, $ / shares in Units, € in Thousands, $ in Thousands |
12 Months Ended | |||
|---|---|---|---|---|
|
Dec. 31, 2025
EUR (€)
€ / shares
|
Dec. 31, 2025
USD ($)
|
Dec. 31, 2024
USD ($)
|
Jun. 30, 2021
$ / shares
|
|
| Commitments And Contingencies [Line Items] | ||||
| Outstanding letters of credit | $ | $ 3,152 | |||
| Commercial guarantee | € 1,700 | 1,994 | ||
| Nominal value of issued share capital | € / shares | € 0.45 | |||
| Reduced nominal value of share capital | € / shares | € 0.01 | |||
| Related Party [Member] | ||||
| Commitments And Contingencies [Line Items] | ||||
| Liability for purchase of shares issued in 2019 | $ | 1,518 | $ 1,518 | ||
| Balance after reduction of authorized capital | € 1,500 | 18,760 | ||
| Conversion price | $ / shares | $ 0.4 | |||
| Directors And Certain Employees [Member] | ||||
| Commitments And Contingencies [Line Items] | ||||
| Conversion price | $ / shares | $ 0.4 | |||
| Agency Agreement [Member] | ||||
| Commitments And Contingencies [Line Items] | ||||
| Minimum agency fee payable | € 3,000 | $ 3,519 |
SEGMENT AND GEOGRAPHICAL INFORMATION (Narrative) (Details) $ in Thousands |
12 Months Ended | |
|---|---|---|
|
Dec. 31, 2025
USD ($)
Segments
|
Dec. 31, 2024
USD ($)
|
|
| Segment Reporting Information [Line Items] | ||
| Property and equipment, net | $ 4,757 | $ 4,666 |
| Number of Operating Segments | Segments | 3 | |
| Israel [Member] | ||
| Segment Reporting Information [Line Items] | ||
| Property and equipment, net | $ 1,438 | $ 1,479 |
SEGMENT AND GEOGRAPHICAL INFORMATION (Schedule of Operating Results by Segment) (Details) - USD ($) $ in Thousands |
12 Months Ended | ||||
|---|---|---|---|---|---|
Dec. 31, 2025 |
Dec. 31, 2024 |
Dec. 31, 2023 |
|||
| Segment Reporting Information [Line Items] | |||||
| Revenue | $ 534,376 | $ 483,310 | $ 431,542 | ||
| Labor Costs | [1] | 488,175 | 429,755 | 371,027 | |
| Depreciation and amortization | 2,101 | 2,371 | 2,679 | ||
| Other costs and expenses | 62,581 | 55,085 | 47,265 | ||
| Net income (loss) | (18,481) | (3,901) | 10,571 | ||
| Goodwill | 713 | 633 | 668 | ||
| Total assets | 165,547 | 185,782 | 197,096 | ||
| Unallocated Corporate [Member] | |||||
| Segment Reporting Information [Line Items] | |||||
| Revenue | 0 | 0 | 0 | ||
| Labor Costs | [1] | 1,261 | 1,324 | 1,091 | |
| Depreciation and amortization | 53 | 68 | 5 | ||
| Other costs and expenses | 2,536 | 2,472 | 2,215 | ||
| Net income (loss) | (3,850) | (3,864) | (3,311) | ||
| Goodwill | 0 | 0 | 0 | ||
| Total assets | 9,682 | 19,791 | 17,740 | ||
| Airport security [Member] | |||||
| Segment Reporting Information [Line Items] | |||||
| Revenue | 421,818 | 362,799 | 309,335 | ||
| Labor Costs | [1] | 393,624 | 338,326 | 284,083 | |
| Depreciation and amortization | 839 | 678 | 904 | ||
| Other costs and expenses | 31,303 | 25,612 | 21,771 | ||
| Net income (loss) | (3,948) | (1,817) | 2,577 | ||
| Goodwill | 713 | 633 | 668 | ||
| Total assets | 81,138 | 80,422 | 81,733 | ||
| Other aviation related services [Member] | |||||
| Segment Reporting Information [Line Items] | |||||
| Revenue | 81,106 | 74,526 | 66,463 | ||
| Labor Costs | [1] | 68,082 | 63,105 | 56,346 | |
| Depreciation and amortization | 326 | 354 | 307 | ||
| Other costs and expenses | 11,146 | 10,513 | 9,796 | ||
| Net income (loss) | 1,552 | 554 | 14 | ||
| Goodwill | 0 | 0 | 0 | ||
| Total assets | 19,723 | 18,832 | 19,325 | ||
| Authentication technology [Member] | |||||
| Segment Reporting Information [Line Items] | |||||
| Revenue | 31,452 | 45,985 | 55,744 | ||
| Labor Costs | [1] | 25,208 | 27,000 | 29,507 | |
| Depreciation and amortization | 883 | 1,271 | 1,463 | ||
| Other costs and expenses | 17,596 | 16,488 | 13,483 | ||
| Net income (loss) | (12,235) | 1,226 | 11,291 | ||
| Goodwill | 0 | 0 | 0 | ||
| Total assets | $ 55,004 | $ 66,737 | $ 78,298 | ||
| |||||
SEGMENT AND GEOGRAPHICAL INFORMATION (Schedule of Revenue by Country) (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
|---|---|---|---|
Dec. 31, 2025 |
Dec. 31, 2024 |
Dec. 31, 2023 |
|
| Segment Reporting Information [Line Items] | |||
| Revenues | $ 534,376 | $ 483,310 | $ 431,542 |
| Germany [Member] | |||
| Segment Reporting Information [Line Items] | |||
| Revenues | 158,224 | 128,278 | 114,176 |
| United States [Member] | |||
| Segment Reporting Information [Line Items] | |||
| Revenues | 93,008 | 97,000 | 99,765 |
| The Netherlands [Member] | |||
| Segment Reporting Information [Line Items] | |||
| Revenues | 111,804 | 106,027 | 101,512 |
| Spain [Member] | |||
| Segment Reporting Information [Line Items] | |||
| Revenues | 130,258 | 113,177 | 82,217 |
| Other countries [Member] | |||
| Segment Reporting Information [Line Items] | |||
| Revenues | $ 41,082 | $ 38,828 | $ 33,872 |
SEGMENT AND GEOGRAPHICAL INFORMATION (Schedule of Property and Equipment by Country) (Details) - USD ($) $ in Thousands |
Dec. 31, 2025 |
Dec. 31, 2024 |
|---|---|---|
| Segment Reporting Information [Line Items] | ||
| Property and equipment, net | $ 4,757 | $ 4,666 |
| Germany [Member] | ||
| Segment Reporting Information [Line Items] | ||
| Property and equipment, net | 595 | 567 |
| United States [Member] | ||
| Segment Reporting Information [Line Items] | ||
| Property and equipment, net | 431 | 541 |
| The Netherlands [Member] | ||
| Segment Reporting Information [Line Items] | ||
| Property and equipment, net | 1,810 | 1,101 |
| Spain [Member] | ||
| Segment Reporting Information [Line Items] | ||
| Property and equipment, net | 254 | 224 |
| Other countries [Member] | ||
| Segment Reporting Information [Line Items] | ||
| Property and equipment, net | $ 1,537 | $ 2,233 |
Valuation And Qualifying Accounts (Details) - USD ($) $ in Thousands |
12 Months Ended | ||||
|---|---|---|---|---|---|
Dec. 31, 2025 |
Dec. 31, 2024 |
Dec. 31, 2023 |
|||
| Allowance for Doubtful Accounts [Member] | |||||
| SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items] | |||||
| Beginning of year | [1] | $ 1,351 | $ 759 | $ 1,208 | |
| Charges to Costs and Expenses | [1] | 1,288 | 808 | 545 | |
| Charges to other accounts | [1] | (1,171) | (216) | (994) | |
| Deductions | [1] | 0 | 0 | 0 | |
| End of Year | [1] | 1,468 | 1,351 | 759 | |
| Allowance for Net Deferred Tax Assets [Member] | |||||
| SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items] | |||||
| Beginning of year | 16,901 | 13,633 | 13,502 | ||
| Charges to Costs and Expenses | 0 | 0 | 0 | ||
| Charges to other accounts | 3,294 | 3,268 | 131 | ||
| Deductions | 0 | 0 | 0 | ||
| End of Year | $ 20,195 | $ 16,901 | $ 13,633 | ||
| |||||
8,RPG5@PSKN%,.T^&C9J 2C;/+:VM#]>YRYMX+O%%,\U8^UE@@[
MJ[XUFYGA6,D6$JZNPB-T(8; -SK:(P)Y%13RK0>V;:-X%(_Z1/7@EA;$,E(^
M^_<,"+N9GTF1"D.FJ1[6.N)BBEWP-*\XZ%<*;%ON"U<@SPL>8;91'C='V5D0
MP^0(=]@=