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Revenue Recognition
 9 Months Ended
Sep. 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).

                                 
   Three months ended September 30, 2023   Three months ended September 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  $5,359   $     -   $         -   $5,359   $5,169   $     -   $        -   $5,169 
Product sales   1,221    -    -    1,221    1,588    -    -    1,588 
Consulting revenue   -    431    -    431    -    508    -    508 
Total revenues  $6,580   $431   $-   $7,011   $6,757   $508   $-   $7,265 

 

                                 
   Nine months ended September 30, 2023   Nine months ended September 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  $13,944   $-   $          -   $13,944   $12,917   $-   $         -   $12,917 
Product sales   3,130    -    -    3,130    3,473    -    -    3,473 
Consulting revenue   -    1,330    -    1,330    -    2,362    -    2,362 
Total revenues  $17,074   $1,330   $-   $18,404   $16,390   $2,362   $-   $18,752 

 

Contract Balances

 

As of September 30, 2023 and December 31, 2022, accounts receivable from contracts with customers, net of allowance for doubtful accounts, was approximately $2.3 and $2.2 million, respectively.

 

As of September 30, 2023 and December 31, 2022, deferred revenue from contracts with customers was approximately $1.7 and $1.3 million, respectively. The balance of the contract liabilities at September 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 nine month period ended September 30, 2023 (amounts in thousands):

Deferred revenue:     
Unearned revenue December 31, 2022  $1,278 
Unearned billings   2,765 
Revenue recognized   (2,330)
Unearned revenue September 30, 2023  $1,713 

 

 

Where Food Comes From, Inc.

Notes to the Consolidated Financial Statements

(Unaudited)