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Segments
 3 Months Ended
Mar. 31, 2020
Segment Reporting [Abstract]  
Segments

Note 13 - 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 (amounts in thousands):

 

    Three months ended March 31, 2020     Three months ended March 31, 2019  
    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   $ 1,266     $ 2,144     $ -     $ 3,410     $ 1,425     $ 2,273     $ -     $ 3,698  
Goodwill     1,133       1,813       -       2,946       1,133       2,011       -       3,144  
Total assets     16,999       5,524       (4,530 )     17,993       13,031       5,518       -       18,549  
                                                                 
Revenues:                                                                
Verification and certification service revenue   $ 2,803     $ -     $ -     $ 2,803     $ 2,812     $ -     $ -     $ 2,812  
Product sales     725       -       -       725       641       -       -       641  
Software license, maintenance and support services revenue     -       233       (90 )     143       -       344       (49 )     295  
Software-related consulting service revenue     -       265       (24 )     241       -       221       (14 )     207  
Total revenues   $ 3,528     $ 498     $ (114 )   $ 3,912     $ 3,453     $ 565     $ (63 )   $ 3,955  
Costs of revenues:                                                                
Costs of verification and certification services     1,624       -       (90 )     1,534       1,595       -       (33 )     1,562  
Costs of products     502       -       -       502       443       -       -       443  
Costs of software license, maintenance and support services     -       146       -       146       -       154       -       154  
Costs of software-related consulting services     -       120       -       120       -       130       -       130  
Total costs of revenues     2,126       266       (90 )     2,302       2,038       284       (33 )     2,289  
Gross profit     1,402       232       (24 )     1,610       1,415       281       (30 )     1,666  
Depreciation & amortization     88       146       -       234       82       178       -       260  
Other operating expenses     1,537       217       (24 )     1,730       1,511       226       (30 )     1,707  
 Segment operating (loss)/income   $ (223 )   $ (131 )   $ -     $ (354 )   $ (178 )   $ (123 )   $ -     $ (301 )
Other items to reconcile segment operating income (loss) to net income attributable to WFCF:                                                                
Other expense (income)     (30 )     (3 )     -       (33 )     -       -       (31 )     (31 )
Income tax (benefit)/expense     -       -       (80 )     (80 )     -       -       (83 )     (83 )
Net loss attributable to non-controlling interest     -       -       -       -       -       44       -       44  
Net (loss)/income attributable to WFCF   $ (193 )   $ (128 )   $ 80     $ (241 )   $ (178 )   $ (79 )   $ 114     $ (143 )