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Segments
 6 Months Ended
Jun. 30, 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, JVF Consulting, 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 Postelsia, 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 June 30, 2020     Three months ended June 30, 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   $ 1,405     $ 1,853     $ -     $ 3,258     $ 1,384     $ 2,164     $ -     $ 3,548  
Goodwill     1,133       1,813       -       2,946       1,133       2,011       -       3,144  
Total assets     18,596       5,287       (4,604 )     19,279       16,630       5,523       (3,388 )     18,765  
                                                                 
Revenues:                                                                
Verification and certification service revenue   $ 3,108     $ -     $ -     $ 3,108     $ 3,743     $ -     $ -     $ 3,743  
Product sales     796       -       -       796       635       -       -       635  
Software license, maintenance and support services revenue     -       237       -       237       -       339       (39 )     300  
Software-related consulting service revenue     -       275       -       275       -       243       (33 )     210  
Total revenues   $ 3,904     $ 512     $ -     $ 4,416     $ 4,378     $ 582     $ (72 )   $ 4,888  
Costs of revenues:                                                                
Costs of verification and certification services     1,516       -       -       1,516       2,127       -       (30 )     2,097  
Costs of products     501       -       -       501       398       -       -       398  
Costs of software license, maintenance and support services     -       109       -       109       -       162       -       162  
Costs of software-related consulting services     -       190       -       190       -       143       -       143  
Total costs of revenues     2,017       299       -       2,316       2,525       305       (30 )     2,800  
Gross profit     1,887       213       -       2,100       1,853       277       (42 )     2,088  
Depreciation & amortization     112       132       -       244       103       182       -       285  
Other operating expenses     1,266       121       -       1,387       1,205       237       (42 )     1,400  
Segment operating (loss)/income   $ 509     $ (40 )   $ -     $ 469     $ 545     $ (142 )   $ -     $ 403  
Other items to reconcile segment operating income (loss) to net income attributable to WFCF:                                                                
Other expense (income)     (29 )     2       -       (27 )     (30 )     -       -       (30 )
Income tax expense     -       -       145       145       -       -       129       129  
Net income attributable to non-controlling interest     -       -       -       -       -       57       -       57  
Net (loss)/income attributable to WFCF   $ 538     $ (42 )   $ (145 )   $ 351     $ 575     $ (85 )   $ (129 )   $ 361  

 

    Six months ended June 30, 2020     Six months ended June 30, 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   $ 1,405     $ 1,853     $ -     $ 3,258     $ 1,384     $ 2,164     $ -     $ 3,548  
Goodwill     1,133       1,813       -       2,946       1,133       2,011       -       3,144  
Total assets     18,596       5,287       (4,604 )     19,279       16,630       5,523       (3,388 )     18,765  
                                                                 
Revenues:                                                                
Verification and certification service revenue   $ 5,911     $ -     $ -     $ 5,911     $ 6,555     $ -     $ -     $ 6,555  
Product sales     1,521       -       -       1,521       1,276       -       -       1,276  
Software license, maintenance and support services revenue     -       470       (90 )     380       -       682       (87 )     595  
Software-related consulting service revenue     -       540       (24 )     516       -       464       (47 )     417  
Total revenues   $ 7,432     $ 1,010     $ (114 )   $ 8,328     $ 7,831     $ 1,146     $ (134 )   $ 8,843  
Costs of revenues:                                                                
Costs of verification and certification services     3,140       -       (90 )     3,050       3,722       -       (63 )     3,659  
Costs of products     1,003       -       -       1,003       841       -       -       841  
Costs of software license, maintenance and support services     -       255       -       255       -       316       -       316  
Costs of software-related consulting services     -       310       -       310       -       273       -       273  
Total costs of revenues     4,143       565       (90 )     4,618       4,563       589       (63 )     5,089  
Gross profit     3,289       445       (24 )     3,710       3,268       557       (71 )     3,754  
Depreciation & amortization     200       278       -       478       185       361       -       546  
Other operating expenses     2,803       338       (24 )     3,117       2,710       466       (71 )     3,105  
Segment operating (loss)/income   $ 286     $ (171 )   $ -     $ 115     $ 373     $ (270 )   $ -     $ 103  
Other items to reconcile segment operating income (loss) to net income attributable to WFCF:                                                                
Other expense (income)     (59 )     (1 )     -       (60 )     (60 )     (1 )     -       (61 )
Income tax expense     -       -       65       65       -       -       46       46  
Net income attributable to non-controlling interest     -       -       -       -       -       100       -       100  
Net (loss)/income attributable to WFCF   $ 345     $ (170 )   $ (65 )   $ 110     $ 433     $ (169 )   $ (46 )   $ 218