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Segments
 12 Months Ended
Dec. 31, 2024
Segment Reporting [Abstract]  
Segments

Note 17 - 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.

 

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 (in thousands):

 

                                 
   Year ended December 31, 2024   Year ended December 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   (2,675)   2,705    12,330    12,360    3,501    2,707    7,132    13,340 
Total assets  $(728)  $3,704   $12,330   $15,306   $5,448   $3,706   $7,132   $16,286 
                                         
Revenues:                                        
Verification and certification service revenue  $20,552   $-   $-   $20,552   $19,413   $-   $-   $19,413 
Product sales   3,803    -    -    3,803    4,001    -    -    4,001 
Professional services   -    1,391    -    1,391    -    1,721    -    1,721 
Total revenues  $24,355   $1,391   $-   $25,746   $23,414   $1,721   $-   $25,135 
Costs of revenues:                                        
Costs of verification and certification services   11,849    -    -    11,849    10,986    -    -    10,986 
Costs of products   2,313    -    -    2,313    2,272    -    -    2,272 
Costs of professional services   -    1,022    -    1,022    -    1,355    -    1,355 
Total costs of revenues   14,162    1,022    -    15,184    13,258    1,355    -    14,613 
Gross profit   10,193    369    -    10,562    10,156    366    -    10,522 
Depreciation & amortization   481    166    -    647    466    168    -    634 
Other operating expenses:                                        
Salaries and benefits   3,643    9         3,652    3,480    9    -    3,489 
Rent and lease expense   595    46    -    641    586    82    -    668 
Software and technology   792    38    -    830    742    34    -    776 
Legal and professional expenses   144    7    398    549    145    9    403    557 
Tradeshows and marketing   755    22    -    777    308    35    -    343 
Conferences and training   91    23    -    114    149    45    -    194 
Investor relations   -    -    128    128    -    -    194    194 
Other expenses   969    48    -    1,017    879    91    -    970 
Total Other operating expenses   6,989    193    526    7,708    6,289    305    597    7,191 
Segment operating income/(loss)  $2,723   $10   $(526)  $2,207   $3,401   $(107)  $(597)  $2,697 
Other items to reconcile segment operating income/(loss) to net income/(loss):                                        
Other income/(loss)   776    (4)   -    772    374    (6)   -    368 
Income tax benefit/(expense)   -    -    (859)   (859)   -    -    (913)   (913)
Net income/(loss)  $3,499   $6   $(1,385)  $2,120   $3,775   $(113)  $(1,510)  $2,152