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Revenue Recognition
 3 Months Ended
Mar. 31, 2023
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.

 

 

Where Food Comes From, Inc.

Notes to the Consolidated Financial Statements

(Unaudited)

 

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

 

                                         
   Three months ended March 31, 2023   Three months ended March 31, 2022 
   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  $3,806   $   -   $      -   $3,806   $3,784   $-   $-   $3,784 
Product sales   971    -    -    971    1,007    -    -    1,007 
Software and related consulting revenue   -    490    -    490    -    1,365    -    1,365 
Total revenues  $4,777   $490   $-   $5,267   $4,791   $1,365   $-   $6,156 

 

 

Contract Balances

 

As of March 31, 2023 and December 31, 2022, accounts receivable from contracts with customers, net of allowance for doubtful accounts, was approximately $2.1 and $2.2 million, respectively.

 

As of March 31, 2023 and December 31, 2022, deferred revenue from contracts with customers was approximately $1.3 million. The balance of the contract liabilities at March 31, 2023 and December 31, 2022 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 three month period ended March 31, 2023 (amounts in thousands):

 

Deferred revenue:    
Unearned revenue December 31, 2022  $1,278 
Unearned billings   648 
Revenue recognized   (670)
Unearned revenue March 31, 2023  $1,256