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Segments
 12 Months Ended
Dec. 31, 2020
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 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 (in thousands):

 

    Year ended December 31, 2020     Year ended December 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:                                                                
Goodwill   $ 1,947     $ 999     $ -     $ 2,946     $ 1,133     $ 1,813     $ -     $ 2,946  
All other assets, net     17,576       3,089       (4,163 )     16,502       16,294       3,188       (4,191 )     15,291  
Total assets   $ 19,523     $ 4,088     $ (4,163 )   $ 19,448     $ 17,427     $ 5,001     $ (4,191 )   $ 18,237  
                                                                 
Revenues:                                                                
Verification and certification service revenue   $ 14,254     $ -     $ -     $ 14,254     $ 15,564     $ -     $ -     $ 15,564  
Product sales     3,859       -       -       3,859       3,300       -       -       3,300  
Software license, maintenance and support services revenue     -       957       (90 )     867       -       1,274       (207 )     1,067  
Software-related consulting service revenue     -       1,120       (24 )     1,096       -       948       (105 )     843  
Total revenues   $ 18,113     $ 2,077     $ (114 )   $ 20,076     $ 18,864     $ 2,222     $ (312 )   $ 20,774  
Costs of revenues:                                                                
Costs of verification and certification services     7,497       -       (90 )     7,407       8,628       -       (184 )     8,444  
Costs of products     2,508       -       -       2,508       2,149       -       -       2,149  
Costs of software license, maintenance and support services     -       520       -       520       -       615       -       615  
Costs of software-related consulting services     -       713       -       713       -       487       -       487  
Total costs of revenues     10,005       1,233       (90 )     11,148       10,777       1,102       (184 )     11,695  
Gross profit     8,108       844       (24 )     8,928       8,087       1,120       (128 )     9,079  
Depreciation & amortization     428       569       -       997       374       723       -       1,097  
Other operating expenses     5,664       604       (24 )     6,244       5,624       934       (128 )     6,430  
 Segment operating (loss)/income   $ 2,016     $ (329 )   $ -     $ 1,687     $ 2,089     $ (537 )   $ -     $ 1,552  
Other items to reconcile segment operating income (loss) to net income attributable to WFCF:                                                                
Other expense (income)     (162 )     2       -       (160 )     (93 )     162       -       69  
Income tax (benefit)/expense     -       -       462       462       -       -       460       460  
Net loss attributable to non-controlling interest     -       -       -       -       -       322       -       322  
Net (loss)/income attributable to WFCF   $ 2,178     $ (331 )   $ (462 )   $ 1,385     $ 2,182     $ (377 )   $ (460 )   $ 1,345