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Segments
 3 Months Ended
Mar. 31, 2021
Segment Reporting [Abstract]  
Segments

Note 12 - 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, WFCFO 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 under the software sales and related consulting reportable 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, 2021     Three months ended March 31, 2020  
    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     17,545       2,891       (3,694 )     16,742       15,866       3,711       (4,530 )     15,047  
Total assets   $ 19,492     $ 3,890     $ (3,694 )   $ 19,688     $ 16,999     $ 5,524     $ (4,530 )   $ 17,993  
                                                                 
Revenues:                                                                
Verification and certification service revenue   $ 3,263     $ -     $ -     $ 3,263     $ 2,803     $ -     $ -     $ 2,803  
Product sales     724       -       -       724       725       -       -       725  
Software license, maintenance and support services revenue     -       141       -       141       -       233       (90 )     143  
Software-related consulting service revenue     -       312       -       312       -       265       (24 )     241  
Total revenues   $ 3,987     $ 453     $ -     $ 4,440     $ 3,528     $ 498     $ (114 )   $ 3,912  
Costs of revenues:                                                                
Costs of verification and certification services     1,793       -       -       1,793       1,624       -       (90 )     1,534  
Costs of products     457       -       -       457       502       -       -       502  
Costs of software license, maintenance and support services     -       100       -       100       -       146       -       146  
Costs of software-related consulting services     -       228       -       228       -       120       -       120  
Total costs of revenues     2,250       328       -       2,578       2,126       266       (90 )     2,302  
Gross profit     1,737       125       -       1,862       1,402       232       (24 )     1,610  
Depreciation & amortization     151       51       -       202       88       146       -       234  
Other operating expenses     1,479       92       -       1,571       1,537       217       (24 )     1,730  
Segment operating income/(loss)   $ 107     $ (18 )   $ -     $ 89     $ (223 )   $ (131 )   $ -     $ (354 )
Other items to reconcile segment operating income (loss) to net income/(loss):                                                                
Other income     35       -       1,037       1,072       30       3       -       33  
Income tax (expense)/benefit     -       -       (11 )     (11 )     -       -       80       80  
Net income/(loss)   $ 142     $ (18 )   $ 1,026     $ 1,150     $ (193 )   $ (128 )   $ 80     $ (241 )