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Segments
 6 Months Ended
Jun. 30, 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.

 

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.

 

 

Where Food Comes From, Inc.

Notes to the Consolidated Financial Statements

(Unaudited)

 

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 June 30, 2024   Three months ended June 30, 2023 
   Verification and Certification Segment   Consulting Segment   Eliminations and Other   Consolidated Totals   Verification and Certification Segment   Consulting Segment   Eliminations and Other   Consolidated Totals 
Assets:                                        
Goodwill  $1,947   $999   $-   $2,946   $1,947   $999   $-   $2,946 
All other assets, net   298    2,695    10,846    13,839    6,249    2,660    5,819    14,728 
Total assets  $2,245   $3,694   $10,846   $16,785   $8,196   $3,659   $5,819   $17,674 
                                         
Revenues:                                        
Verification and certification service revenue  $5,252   $-   $-   $5,252   $4,779   $-   $-   $4,779 
Product sales   819    -    -    819    938    -    -    938 
Professional services   -    324    -    324    -    409    -    409 
Total revenues  $6,071   $324   $-   $6,395   $5,717   $409   $-   $6,126 
Costs of revenues:                                        
Costs of verification and certification services   3,028    -    -    3,028    2,736    -    -    2,736 
Costs of products   469    -    -    469    555    -    -    555 
Costs of professional services   -    240    -    240    -    329    -    329 
Total costs of revenues   3,497    240    -    3,737    3,291    329    -    3,620 
Gross profit   2,574    84    -    2,658    2,426    80    -    2,506 
Depreciation & amortization   114    42    -    156    120    43    -    163 
Other operating expenses   1,870    49    -    1,919    1,599    71    -    1,670 
Segment operating income/(loss)  $590   $(7)  $-   $583   $707   $(34)  $-   $673 
Other items to reconcile segment operating income (loss) to net income/(loss):                                        
Other income / (expense)   106    (2)   -    104    65    (2)   -    63 
Income tax expense   -    -    (198)   (198)   -    -    (204)   (204)
Net income/(loss)  $696   $(9)  $(198)  $489   $772   $(36)  $(204)  $532 

 

 

Where Food Comes From, Inc.

Notes to the Consolidated Financial Statements

(Unaudited)

 

                                 
   Six months ended June 30, 2024   Six months ended June 30, 2023 
   Verification and Certification Segment   Consulting Segment   Eliminations and Other   Consolidated Totals   Verification and Certification Segment   Consulting Segment   Eliminations and Other   Consolidated Totals 
Assets:                                        
Goodwill  $1,947   $999   $-   $2,946   $1,947   $999   $-   $2,946 
All other assets, net   298    2,695    10,846    13,839    6,249    2,660    5,819    14,728 
Total assets  $2,245   $3,694   $10,846   $16,785   $8,196   $3,659   $5,819   $17,674 
                                         
Revenues:                                        
Verification and certification service revenue  $9,686   $-   $-   $9,686   $8,585   $-   $-   $8,585 
Product sales   1,552    -    -    1,552    1,909    -    -    1,909 
Professional services   -    739    -    739    -    899    -    899 
Total revenues  $11,238   $739   $-   $11,977   $10,494   $899   $-   $11,393 
Costs of revenues:                                        
Costs of verification and certification services   5,543    -    -    5,543    4,932    -    -    4,932 
Costs of products   903    -    -    903    1,123    -    -    1,123 
Costs of professional services   -    544    -    544    -    689    -    689 
Total costs of revenues   6,446    544    -    6,990    6,055    689    -    6,744 
Gross profit   4,792    195    -    4,987    4,439    210    -    4,649 
Depreciation & amortization   228    83    -    311    251    84    -    335 
Other operating expenses   3,712    120    -    3,832    3,343    143    -    3,486 
Segment operating income/(loss)  $852   $(8)  $-   $844   $845   $(17)  $-   $828 
Other items to reconcile segment operating income (loss) to net income/(loss):                                        
Other income / (expense)   112    (4)   -    108    122    (3)   -    119 
Income tax expense   -    -    (285)   (285)   -    -    (294)   (294)
Net income/(loss)  $964   $(12)  $(285)  $667   $967   $(20)  $(294)  $653