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Segments
 12 Months Ended
Dec. 31, 2019
Segment Reporting [Abstract]  
Segments

Note 17 - Segments

 

With each acquisition, we assess the need to disclose discrete information related to our operating segments. Because of the similarities of certain of our acquisitions that provide certification and verification services, we aggregate operations into one verification and certification reportable segment. The operating segments included in the aggregated verification and certification segment include IMI Global, ICS, and Validus. The factors considered in determining this aggregated reporting segment include the economic similarity of the businesses, the nature of services provided, production processes, types of customers and distribution methods.

 

The Company also determined that it has a software sales and related consulting reportable segment. SureHarvest, which includes Sow Organic and JVF Consulting, is the sole operating segment. This segment includes software license, maintenance, support and software-related consulting service revenues.

 

The Company’s chief operating decision maker (the Company’s CEO) allocates resources and assesses the performance of its operating segments. Segment management makes decisions, measures performance, and manages the business utilizing internal reporting operating segment information. Performance of operating segments are based on net sales, gross profit, selling, general and administrative expenses and most importantly, operating income. 

 

The Company eliminates intercompany transfers between segments for management reporting purposes.  The following table shows information for reportable operating segments:

 

    Year ended December 31, 2019     Year ended December 31, 2018
    Verification
and
Certification
Segment		     Software
Sales and
Related
Consulting
Segment		     Eliminations
and Other		     Consolidated
Totals		     Verification
and
Certification
Segment		     Software
Sales and
Related
Consulting
Segment		     Eliminations
and Other		   Consolidated Totals  
Assets:                                                              
Intangible and other assets, net   $ 1,303,795     $ 1,943,900             $ 3,247,695     $ 1,464,435     $ 2,387,686     $ —   $ 3,852,121  
Goodwill     1,133,122       1,812,613               2,945,735       1,133,122       2,010,612       —     3,143,734  
Total assets     13,236,311       5,001,150               18,237,461       9,178,009       5,285,929       —     14,463,938  
                                                               
Revenues:                                                              
Verification and certification service revenue   $ 15,564,411     $ —     $ —     $ 15,564,411     $ 13,743,311     $ —     $ —   $ 13,743,311  
Product sales     3,300,799       —       —       3,300,799       2,266,771       —       —     2,266,771  
Software license, maintenance and support services revenue     —       1,273,820       (207,277 )     1,066,543       —       993,161       —     993,161  
Software-related consulting service revenue     —       947,524       (104,861 )     842,663       —       800,316       —     800,316  
Total revenues   $ 18,865,210     $ 2,221,344     $ (312,138 )   $ 20,774,416     $ 16,010,082     $ 1,793,477     $ —   $ 17,803,559  
Costs of revenues:                                                              
Costs of verification and certification services     8,628,292       —       (183,983 )     8,444,309       7,564,946       —       —     7,564,946  
Costs of products     2,148,564       —       —       2,148,564       1,438,648       —       —     1,438,648  
Costs of software license, maintenance and support services     —       615,248       —       615,248       —       644,746       —     644,746  
Costs of software-related consulting services     —       486,880       —       486,880       —       411,468       —     411,468  
Total costs of revenues     10,776,856       1,102,128       (183,983 )     11,695,001       9,003,594       1,056,214       —     10,059,808  
Gross profit     8,088,354       1,119,216       (128,155 )     9,079,415       7,006,488       737,263       —     7,743,751  
Depreciation & amortization     373,583       722,877       —       1,096,460       320,094       622,324       —     942,418  
Other operating expenses     5,624,489       934,250       (128,155 )     6,430,584       5,245,707       681,073       —     5,926,780  
Segment operating (loss)/income   $ 2,090,282     $ (537,911 )   $ —     $ 1,552,371     $ 1,440,687     $ (566,134 )   $ —   $ 874,553  
Other items to reconcile segment operating income (loss) to net income attributable to WFCF:                                                              
Other expense (income)     (92,584 )     161,985       —       69,401       —       —       (109,433)     (109,433)  
Income tax (benefit)/expense     —       —       460,000       460,000       —       —       309,008     309,008  
Net loss attributable to non-controlling interest     —       322,195       —       322,195       —       125,758       —     125,758  
Net (loss)/income attributable to WFCF   $ 2,182,866     $ (377,701 )   $ (460,000 )   $ 1,345,165     $ 1,440,687     $ (440,376 )   $ (199,575)   $ 800,736