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Revenue Recognition
 9 Months Ended
Sep. 30, 2021
Revenue from Contract with Customer [Abstract]  
Revenue Recognition

Note 9 - Revenue Recognition

 

Disaggregation of Revenue

 

We have identified three material revenue categories in our business: (i) verification and certification service revenue, (ii) product sales, (iii) software and related consulting revenue.

 

Revenue attributable to each of our identified revenue categories is disaggregated in the table below (amounts in thousands).

 

   Three months ended September 30, 2021   Three months ended September 30, 2020 
   Verification and Certification Segment   Software and Related Consulting Segment   Eliminations and Other   Consolidated   Verification and Certification Segment   Software and Related Consulting Segment   Eliminations and Other   Consolidated 
Verification and certification service revenue  $4,701   $-   $-   $4,701   $4,307   $-   $-   $4,307 
Product sales   1,383    -    -    1,383    1,362    -    -    1,362 
Software and related consulting revenue   -    461    -    461    -    528    -    528 
Total revenues  $6,084   $461   $-   $6,545   $5,669   $528   $-   $6,197 

 

   Nine months ended September 30, 2021   Nine months ended September 30, 2020 
   Verification and Certification Segment   Software and Related Consulting Segment   Eliminations and Other   Consolidated   Verification and Certification Segment   Software and Related Consulting Segment   Eliminations and Other   Consolidated 
Verification and certification service revenue  $11,659   $-   $-   $11,659   $10,218   $-   $-   $10,218 
Product sales   3,071    -    -    3,071    2,883    -    -    2,883 
Software and related consulting revenue   -    1,396    -    1,396    -    1,538    (114)   1,424 
Total revenues  $14,730   $1,396   $-   $16,126   $13,101   $1,538   $(114)  $14,525 

 

Contract Balances

 

As of September 30, 2021, and December 31, 2020, accounts receivable from contracts with customers, net of allowance for doubtful accounts, were approximately $2.3 and $2.5 million, respectively.

 

As of September 30, 2021, and December 31, 2020, deferred revenue from contracts with customers was approximately $1.6 and $1.1 million, respectively. The balance of the contract liabilities at September 30, 2021 and December 31, 2020 are expected to be recognized as revenue within one year or less of the invoice date.

 

The following table reflects the changes in our contract liabilities during the nine month period ended September 30, 2021

 

(amounts in thousands):    
     
Deferred revenue:     
Unearned revenue January 1, 2021  $1,132 
Unearned billings   3,320 
Revenue recognized   (2,888)
Unearned revenue September 30, 2021  $1,564 

 

 

Where Food Comes From, Inc.

Notes to the Consolidated Financial Statements

(Unaudited)