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Digital Assets
 12 Months Ended
Dec. 31, 2024
Digital Assets  
Digital Assets

Note 5 – Digital Assets

 

Effective January 1, 2024, the Company early adopted ASU 2023-08, which required entities to measure digital assets or “cryptocurrencies” at fair value with changes recognized in the Consolidated Statements of Income each reporting period. The Company’s digital assets are within the scope of ASU 2023-08 and the transition guidance requires a cumulative-effect adjustment as of the beginning of the current fiscal year for any difference between the carrying amount of the Company’s digital assets and fair value. As a result of the Company’s early adoption of ASUC 2023-08, the Company recorded a $0.2 million increase to digital assets and a $0.1 million increase to retained earnings, net of tax effect, on the Consolidated Balance Sheets as of the beginning of the fiscal year ended December 31, 2024.

 

The following table presents the Company’s digital asset holdings as of December 31, 2024:

 

 Schedule of Consolidated Balance Sheets of Digital Asset

(in thousands, except for quantity)  Quantity   Cost Basis   Fair Value 
Bitcoin       7   $178   $654 
Total digital assets held as of December 31, 2024       $178   $654 

 

 

The following table presents a roll-forward of total digital assets for the year ended December 31, 2024, based on the fair value model under ASU 2023-08:

 

(in thousands)  Fair Value 
Digital assets at December 31, 2023  $116 
Cumulative effect of the adoption of ASU 2023-08   193 
Beginning balance: Digital assets January 1, 2024  $309 
Unrealized gain on digital assets   345 
Digital assets December 31, 2024  $654 

 

The following tables present summarized unaudited quarterly financial statement data for those impacted line items based on the Company’s adoption of ASU 2023-08:

 

Consolidated Balance Sheets (unaudited):  March 31, 2024   June 30, 2024   September 30, 2024 
(in thousands)  As of:  
Consolidated Balance Sheets (unaudited):  March 31, 2024   June 30, 2024   September 30, 2024 
Digital assets, net               
Before adoptions  $116   $116   $116 
Adjustments   370    323    327 
As adjusted  $486   $439   $443 
Deferred tax assets               
Before adoptions  $482   $477   $481 
Adjustments   (91)   (79)   (80)
As adjusted  $391   $398   $401 

 

 

Where Food Comes From, Inc.

Notes to the Consolidated Financial Statements

 

Consolidated Statements of Income (unaudited):  March 31, 2024   June 30, 2024   September 30, 2024 
(in thousands, except per share amounts)  Three Months Ended  
Consolidated Statements of Income (unaudited):  March 31, 2024   June 30, 2024   September 30, 2024 
Other income (expense), net               
Before adoption  $4   $4   $14 
Adjustments   177    (47)   4 
As adjusted  $181   $(43)  $18 
Provision for (benefit from) income taxes               
Before adoption  $87   $198   $181 
Adjustments   44    (12)   1 
As adjusted  $131   $186   $182 
Net income per share of common stock               
Basic               
Before adoption  $0.03   $0.09   $0.09 
Adjustments   0.02    (0.01)   - 
As adjusted  $0.05   $0.08   $0.09 
Diluted               
Before adoption  $0.03   $0.09   $0.09 
Adjustments   0.02    (0.01)   - 
As adjusted  $0.05   $0.08   $0.09 

 

Prior to the adoption of ASU 2023-08, digital assets were accounted for as indefinite-lived intangible assets and were initially measured in accordance with ASC 350 – Intangible -Goodwill and Other. Digital assets were not amortized, but were assessed for impairment annually, or more frequently, when events or changes in circumstances occur indicating it is more likely than not that the indefinite-lived intangible asset is impaired. Whenever the exchange-traded price of digital assets declined below its carrying value, the Company was required to determine if an impairment existed and to record an impairment equal to the amount by which the carrying value exceeded the fair value. The Company did not recognize any impairments during 2023.