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Segments
 3 Months Ended
Mar. 31, 2022
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.

 

 

Where Food Comes From, Inc.

Notes to the Consolidated Financial Statements

(Unaudited)

 

The Company also determined that it has a software and related consulting reportable segment. SureHarvest, which includes Postelsia, is the sole operating unit under the software and related consulting reportable 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 (amounts in thousands):

 

                                         
   Three months ended March 31, 2022   Three months ended March 31, 2021 
     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   14,860    3,815    (1,267)   17,408    17,545    2,891    (3,694)   16,742 
Total assets  $16,807   $4,814   $(1,267)  $20,354   $19,492   $3,890   $(3,694)  $19,688 
                                         
Revenues:                                        
Verification and certification service revenue  $3,784   $-   $-   $3,784   $3,263   $-   $-   $3,263 
Product sales   1,007    -    -    1,007    724    -    -    724 
Software and related consulting revenue   -    1,365    -    1,365    -    453    -    453 
Total revenues  $4,791   $1,365   $-   $6,156   $3,987   $453   $-   $4,440 
Costs of revenues:                                        
Costs of verification and certification services   2,036    -    -    2,036    1,793    -    -    1,793 
Costs of products   537    -    -    537    457    -    -    457 
Costs of software and related consulting   -    1,186    -    1,186    -    328    -    328 
Total costs of revenues   2,573    1,186    -    3,759    2,250    328    -    2,578 
Gross profit   2,218    179    -    2,397    1,737    125    -    1,862 
Depreciation & amortization   145    50    -    195    151    51    -    202 
Other operating expenses   1,513    66    -    1,579    1,479    92    -    1,571 
Segment operating income/(loss)  $560   $63   $-   $623   $107   $(18)  $-   $89 
Other items to reconcile segment operating income (loss) to net income/(loss):                                        
Other income / (expense)   49    (12)   -    37    35    -    1,037    1,072 
Income tax expense   -    -    (163)   (163)   -    -    (11)   (11)
Net income/(loss)  $609   $51   $(163)  $497   $142   $(18)  $1,026   $1,150