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Revenue Recognition
 9 Months Ended
Sep. 30, 2024
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) professional services 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 
   Nine months ended September 30, 2024   Nine months ended September 30, 2023 
   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  $15,172   $-   $          -   $15,172   $13,944   $-   $         -   $13,944 
Product sales   2,881    -    -    2,881    3,130    -    -    3,130 
Professional services   -    1,031    -    1,031    -    1,330    -    1,330 
Total revenues  $18,053   $1,031   $-   $19,084   $17,074   $1,330   $-   $18,404 

 

    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 September 30, 2024   Three months ended September 30, 2023 
   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  $5,486   $-   $-   $5,486   $5,359   $-   $-   $5,359 
Product sales   1,329    -    -    1,329    1,221    -    -    1,221 
Professional services   -    292    -    292    -    431    -    431 
Total revenues  $6,815   $292   $-   $7,107   $6,580   $431   $-   $7,011 

 

Contract Balances

 

As of September 30, 2024 and December 31, 2023, accounts receivable from contracts with customers, net of allowance for doubtful accounts, was approximately $2.2 million and $2.1 million, respectively.

 

 

Where Food Comes From, Inc.

Notes to the Consolidated Financial Statements

(Unaudited)

 

As of September 30, 2024 and December 31, 2023, deferred revenue from contracts with customers was approximately $2.1 million and $1.5 million, respectively. The balance of the contract liabilities at September 30, 2024 and December 31, 2023 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, 2024 (amounts in thousands):

  

Deferred revenue:     
Unearned revenue December 31, 2023  $1,485 
Unearned billings   3,246 
Revenue recognized   (2,585)
Unearned revenue September 30, 2024  $2,146