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Segments
 12 Months Ended
Dec. 31, 2022
Segment Reporting [Abstract]  
Segments

Note 16 - 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. 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.

 

 

Where Food Comes From, Inc.

Notes to the Consolidated Financial Statements

 

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, 2022   Year ended December 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   9,949    3,182    2,219    15,350    14,267    3,848    (1,277)   16,838 
Total assets  $11,896   $4,181   $2,219   $18,296   $16,214   $4,847   $(1,277)  $19,784 
                                         
Revenues:                                        
Verification and certification service revenue  $17,610   $-   $-   $17,610   $16,058   $-   $-   $16,058 
Product sales   4,364    -    -    4,364    3,830    -    -    3,830 
Software and related consulting revenue   -    2,871    -    2,871    -    2,044    -    2,044 
Total revenues  $21,974   $2,871   $-   $24,845   $19,888   $2,044   $-   $21,932 
Costs of revenues:                                        
Costs of verification and certification services   9,748    -    -    9,748    8,402    -    -    8,402 
Costs of products   2,333    -    -    2,333    2,441    -    -    2,441 
Costs of software and related consulting   -    2,296    -    2,296    -    1,352    -    1,352 
Total costs of revenues   12,081    2,296    -    14,377    10,843    1,352    -    12,195 
Gross profit   9,893    575    -    10,468    9,045    692    -    9,737 
Depreciation & amortization   582    183    -    765    597    202    -    799 
Other operating expenses   6,805    246    -    7,051    6,324    311    -    6,635 
Segment operating income/(loss)  $2,506   $146   $-   $2,652   $2,124   $179   $-   $2,303 
Other items to reconcile segment operating income/(loss) to net income/(loss):                                        
Other income/(loss)   202    (38)   -    164    1,329    (12)   -    1,317 
Income tax benefit/(expense)   -    -    (822)   (822)   -    -    (659)   (659)
Net income/(loss)  $2,708   $108   $(822)  $1,994   $3,453   $167   $(659)  $2,961