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Revenue Recognition
 9 Months Ended
Sep. 30, 2025
Revenue from Contract with Customer [Abstract]  
Revenue Recognition

Note 10 - 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).

 

   2025   2024   2025   2024 
   Three months ended
September 30,		   Nine months ended
September 30,		 
   2025   2024   2025   2024 
Revenues:                    
Verification and certification service revenue  $5,556   $5,486   $15,070   $15,172 
Product sales   1,202    1,329    2,868    2,881 
Professional services   257    292    912    1,031 
Total revenues  $7,015   $7,107   $18,850   $19,084 

 

Contract Balances

 

As of September 30, 2025 and December 31, 2024, accounts receivable from contracts with customers, net of allowance for doubtful accounts, was approximately $2.3 million and $1.8 million, respectively.

 

As of September 30, 2025 and December 31, 2024, deferred revenue from contracts with customers was approximately $2.0 million and $1.7 million, respectively. The balance of the contract liabilities at September 30, 2025 and December 31, 2024 are expected to be recognized as revenue within one year or less of the invoice date.

 

 

Where Food Comes From, Inc.

Notes to the Consolidated Financial Statements

(Unaudited)

 

The following table reflects the changes in our contract liabilities during the nine month period ended September 30, 2025 (amounts in thousands):

 

Deferred revenue:     
Unearned revenue December 31, 2024  $1,748 
Unearned billings   3,157 
Revenue recognized   (2,877)
Unearned revenue September 30, 2025  $2,028