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Segments
 12 Months Ended
Dec. 31, 2021
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, 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.

 

 

Where Food Comes From, Inc.

Notes to the Consolidated Financial Statements

 

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 and 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, 2021     Year ended December 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     $ 1,947     $ 999     $ -     $ 2,946  
All other assets, net     14,267       3,848       (1,277 )     16,838       17,576       3,089       (4,163 )     16,502  
Total assets   $ 16,214     $ 4,847     $ (1,277 )   $ 19,784     $ 19,523     $ 4,088     $ (4,163 )   $ 19,448  
                                                                 
Revenues:                                                                
Verification and certification service revenue   $ 16,058     $ -     $ -     $ 16,058     $ 14,254     $ -     $ -     $ 14,254  
Product sales     3,830       -       -       3,830       3,859       -       -       3,859  
Software and related consulting revenue     -       2,044       -       2,044       -       2,077       (114 )     1,963  
Total revenues   $ 19,888     $ 2,044     $ -     $ 21,932     $ 18,113     $ 2,077     $ (114 )   $ 20,076  
Costs of revenues:                                                                
Costs of verification and certification services     8,402       -       -       8,402       7,497       -       (90 )     7,407  
Costs of products     2,441       -       -       2,441       2,508       -       -       2,508  
Costs of software and related consulting     -       1,352       -       1,352       -       1,233       -       1,233  
Total costs of revenues     10,843       1,352       -       12,195       10,005       1,233       (90 )     11,148  
Gross profit     9,045       692       -       9,737       8,108       844       (24 )     8,928  
Depreciation & amortization     597       202       -       799       428       569       -       997  
Other operating expenses     6,324       311       -       6,635       5,664       604       (24 )     6,244  
 Segment operating income/(loss)   $ 2,124     $ 179     $ -     $ 2,303     $ 2,016     $ (329 )   $ -     $ 1,687  
Other items to reconcile segment operating income/(loss) to net income/(loss):                                                                
Other income/(loss)     1,329       (12 )     -       1,317       162       (2 )     -       160  
Income tax benefit/(expense)     -       -       (659 )     (659 )     -       -       (462 )     (462 )
Net income/(loss)   $ 3,453     $ 167     $ (659 )   $ 2,961     $ 2,178     $ (331 )   $ (462 )   $ 1,385