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Segments
 3 Months Ended
Mar. 31, 2024
Segment Reporting [Abstract]  
Segments

Note 12 - 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.

 

 

Where Food Comes From, Inc.

Notes to the Consolidated Financial Statements

(Unaudited)

 

The Company also determined that it has a professional services reportable segment. SureHarvest, which includes Postelsia, is the sole operating segment. This segment includes consulting, data analysis and other reporting 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.

 

The Company eliminates intercompany transfers between segments for management reporting purposes. The following table shows information for reportable operating segments (amounts in thousands):

 

                                 
   Three months ended March 31, 2024   Three months ended March 31, 2023 
   Verification and Certification Segment   Professional Services Segment   Eliminations and Other   Consolidated Totals   Verification and Certification Segment   Professional Services Segment   Eliminations and Other   Consolidated Totals 
Assets:                                        
Goodwill  $1,947   $999   $-   $2,946   $1,947   $999   $-   $2,946 
All other assets, net   912    2,765    8,770    12,447    7,179    2,609    4,568    14,356 
Total assets  $2,859   $3,764   $8,770   $15,393   $9,126   $3,608   $4,568   $17,302 
                                         
Revenues:                                        
Verification and certification service revenue  $4,434   $-   $-   $4,434   $3,806   $-   $-   $3,806 
Product sales   733    -    -    733    971    -    -    971 
Professional services   -    415    -    415    -    490    -    490 
Total revenues  $5,167   $415   $-   $5,582   $4,777   $490   $-   $5,267 
Costs of revenues:                                        
Costs of verification and certification services   2,515    -    -    2,515    2,196    -    -    2,196 
Costs of products   434    -    -    434    568    -    -    568 
Costs of professional services   -    304    -    304    -    360    -    360 
Total costs of revenues   2,949    304    -    3,253    2,764    360    -    3,124 
Gross profit   2,218    111    -    2,329    2,013    130    -    2,143 
Depreciation & amortization   113    42    -    155    130    42    -    172 
Other operating expenses   1,843    70    -    1,913    1,746    70    -    1,816 
Segment operating income/(loss)  $262   $(1)  $-   $261   $137   $18   $-   $155 
Other items to reconcile segment operating income (loss) to net income/(loss):                                        
Other income / (expense)   6    (2)   -    4    57    (1)   -    56 
Income tax expense   -    -    (87)   (87)   -    -    (90)   (90)
Net income/(loss)  $268   $(3)  $(87)  $178   $194   $17   $(90)  $121