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Revenue Recognition
 6 Months Ended
Jun. 30, 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) consulting revenue.

 

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

 

   Verification and Certification Segment   Consulting Segment   Eliminations and Other   Consolidated Totals   Verification and Certification Segment   Consulting Segment   Eliminations and Other   Consolidated Totals 
   Three months ended June 30, 2023   Three months ended June 30, 2022 
   Verification and Certification Segment   Consulting Segment   Eliminations and Other   Consolidated Totals   Verification and Certification Segment   Consulting Segment   Eliminations and Other   Consolidated Totals 
Revenues:                                        
Verification and certification service revenue  $4,779   $-   $-   $4,779   $3,964   $-   $-   $3,964 
Product sales   938    -    -    938    878    -    -    878 
Consulting revenue   -    409    -    409    -    489    -    489 
Total revenues  $5,717   $409   $-   $6,126   $4,842   $489   $-   $5,331 

 

   Verification and Certification Segment   Consulting Segment   Eliminations and Other   Consolidated Totals   Verification and Certification Segment   Consulting Segment   Eliminations and Other   Consolidated Totals 
   Six months ended June 30, 2023   Six months ended June 30, 2022 
   Verification and Certification Segment   Consulting Segment   Eliminations and Other   Consolidated Totals   Verification and Certification Segment   Consulting Segment   Eliminations and Other   Consolidated Totals 
Revenues:                                        
Verification and certification service revenue  $8,585   $-   $-   $8,585   $7,748   $-   $-   $7,748 
Product sales   1,909    -    -    1,909    1,885    -    -    1,885 
Consulting revenue   -    899    -    899    -    1,854    -    1,854 
Total revenues  $10,494   $899   $-   $11,393   $9,633   $1,854   $-   $11,487 

 

Contract Balances

 

As of June 30, 2023 and December 31, 2022, accounts receivable from contracts with customers, net of allowance for doubtful accounts, was approximately $2.2 million.

 

As of June 30, 2023 and December 31, 2022, deferred revenue from contracts with customers was approximately $1.8 and $1.3 million, respectively. The balance of the contract liabilities at June 30, 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 six month period ended June 30, 2023 (amounts in thousands):

 

Deferred revenue:     
Unearned revenue December 31, 2022  $1,278 
Unearned billings   2,030 
Revenue recognized   (1,467)
Unearned revenue June 30, 2023  $1,841 

 

 

Where Food Comes From, Inc.

Notes to the Consolidated Financial Statements

(Unaudited)