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Revenue Recognition
 9 Months Ended
Sep. 30, 2022
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, 2022   Three months ended September 30, 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 
Revenues:                                        
Verification and certification service revenue  $5,169   $-   $        -   $5,169   $4,701   $-   $       -   $4,701 
Product sales   1,588    -    -    1,588    1,383    -    -    1,383 
Software and related consulting revenue   -    508    -    508    -    461    -    461 
Total revenues  $6,757   $508   $-   $7,265   $6,084   $461   $-   $6,545 

 

                                         
   Nine months ended September 30, 2022   Nine months ended September 30, 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 
Revenues:                                        
Verification and certification service revenue  $12,917   $-   $         -   $12,917   $11,659   $-   $      -   $11,659 
Product sales   3,473    -    -    3,473    3,071    -    -    3,071 
Software and related consulting revenue   -    2,362    -    2,362    -    1,396    -    1,396 
Total revenues  $16,390   $2,362   $-   $18,752   $14,730   $1,396   $-   $16,126 

 

 

Contract Balances

 

As of September 30, 2022 and December 31, 2021, accounts receivable from contracts with customers, net of allowance for doubtful accounts, was approximately $2.9 and $2.2 million, respectively.

 

As of September 30, 2022 and December 31, 2021, deferred revenue from contracts with customers was approximately $1.8 and $1.5 million, respectively. The balance of the contract liabilities at September 30, 2022 and December 31, 2021 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, 2022 (amounts in thousands):

 

      
Deferred revenue:     
Unearned revenue December 31, 2021  $1,513 
Unearned billings   4,440 
Revenue recognized   (4,200)
Unearned revenue September 30, 2022  $1,753 

 

 

Where Food Comes From, Inc.

Notes to the Consolidated Financial Statements

(Unaudited)