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Notes Payable and Lease Obligations
 12 Months Ended
Dec. 31, 2024
Debt Disclosure [Abstract]  
Notes Payable and Lease Obligations

Note 9 - Notes Payable and Lease Obligations

 

Unison Revolving Line of Credit

 

The Company has a revolving line of credit (“LOC”) agreement which matures on April 12, 2025. The LOC provides for $75,080 in working capital. The interest rate is at the Wall Street Journal prime rate plus 1.50% and is adjusted daily. Principal and interest are payable upon demand, but if demand is not made, then annual payments of accrued interest only are due, with the principal balance due upon maturity. As of December 31, 2024 and 2023, the effective interest rate was 9.5% and 10.0%, respectively. The LOC is collateralized by all the business assets of WFCFO. As of December 31, 2024 and 2023, there were no amounts outstanding under this LOC.

 

Lease Obligations

 

We have operating and finance leases for corporate offices, other regional offices, and certain equipment. Our leases have remaining lease terms of 1 year to 7 years, some of which include multiple options to extend the leases for up to 5 years each.

 

The components of lease expense were as follows (in thousands):

 

   2024   2023 
   Year Ended December 31, 
   2024   2023 
Operating lease cost  $448   $483 
Finance lease cost          
Amortization of assets   15    15 
Interest on finance lease obligations   4    5 
Variable lease cost   -    - 
Total net lease cost  $467   $503 

 

Included in the table above, is approximately $0.4 million for the years ended December 31, 2024 and 2023, of operating lease cost for our corporate headquarters. This space is being leased from The Move, LLC. Our CEO and President, each a related party to WFCF, have a 24.3% jointly-held ownership interest in The Move, LLC.

 

 

Where Food Comes From, Inc.

Notes to the Consolidated Financial Statements

 

Rent and lease expense for each of the years ended December 31, 2024 and 2023 was approximately $0.6 million and $0.7 million, respectively.

 

Supplemental balance sheet information related to leases was as follows (in thousands):

 

Operating leases:  Related Party   Other   Total   Related Party   Other   Total 
   December 31, 2024   December 31, 2023 
Operating leases:  Related Party   Other   Total   Related Party   Other   Total 
Operating lease ROU assets  $1,934   $97   $2,031   $2,158   $87   $2,245 
                               
Current operating lease liabilities   276    61    337    249    49    298 
Noncurrent operating lease liabilities   2,131    38    2,169    2,407    40    2,447 
Total operating lease liabilities  $2,407   $99   $2,506   $2,656   $89   $2,745 

 

Finance leases:  December 31, 2024   December 31, 2023 
Right of use asset, at cost  $76   $76 
Accumulated amortization   (40)   (25)
Right of use asset, net  $36   $51 
           
Current obligations of finance leases  $15   $14 
Finance leases, net of current obligations   25    41 
Total finance lease liabilities  $40   $55 
           
Weighted average remaining lease term (in years):          
Operating leases   6.4    7.4 
Finance leases   2.8    3.7 
           
Weighted average discount rate:          
Operating leases   5.8%   5.8%
Finance leases   8.5%   8.3%

 

Supplemental cash flow and other information related to leases was as follows (in thousands):

 

   2024   2023 
   Year Ended December 31,  
   2024   2023 
Cash paid for amounts included in the measurement of lease liabilities:          
Operating cash flows from operating leases  $472   $507 
Operating cash flows from finance leases  $4   $3 
Financing cash flows from finance leases  $14   $12 
           
Right of use assets obtained in exchange for lease liabilities:          
Operating leases  $80   $- 

 

 

Where Food Comes From, Inc.

Notes to the Consolidated Financial Statements

 

Maturities of lease liabilities were as follows (in thousands):

 

Years Ending December 31st,  Operating Leases   Finance Leases 
2025   471    18 
2026   456    14 
2027   430    13 
2028   443    - 
2029   456    - 
Thereafter   750    - 
Total lease payments   3,006    45 
Less amount representing interest   (500)   (5)
Total lease obligations   2,506    40 
Less current portion   (337)   (15)
Long-term lease obligations  $2,169   $25