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Segments
 9 Months Ended
Sep. 30, 2025
Segment Reporting [Abstract]  
Segments

Note 13 - Segments

 

Effective January 2025, our operations team implemented some internal restructuring and consolidation throughout the Company to better align business functions and improve efficiency, as well as promote stronger unity in our brand identity because of our many past acquisitions. With this reorganization, we also needed to reassess segment reporting, our new structure and what type of discrete information was reviewed by our middle managers and our Chief Operating Decision Maker (“CODM”). One aspect of our restructuring specifically addressed the activities and personnel, which were previously reported under our Professional Services Segment. All professional consulting services, which also includes data analysis and other reporting metrics, provide support to our primary activities of verification and certification. This segment now reports to the same management team under the Verification and Certification Segment. With our restructuring, we now only have one reportable segment. 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’s chief operating decision maker (the Company’s CEO) allocates resources and assesses the performance of its operating segment. Management makes decisions, measures performance, and manages the business utilizing internal reporting operating information. Performance of the operating segment is based on net sales, gross profit, selling, general and administrative expenses and most importantly, operating income.

 

 

Where Food Comes From, Inc.

Notes to the Consolidated Financial Statements

(Unaudited)

 

The following table shows information for the reportable operating segment (amounts in thousands):

 

   2025   2024   2025   2024 
  

Three months ended

September 30,

  

Nine months ended

September 30,

 
   2025   2024   2025   2024 
Assets:                    
Goodwill  $2,946   $2,946   $2,946   $2,946 
All other assets, net   13,908    14,000    13,908    14,000 
Total assets  $16,854   $16,946   $16,854   $16,946 
                     
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 
Costs of revenues:                    
Costs of verification and certification services   3,348    3,288    9,025    8,831 
Costs of products   781    841    1,826    1,744 
Costs of professional services   200    204    658    748 
Total costs of revenues   4,329    4,333    11,509    11,323 
Gross profit   2,686    2,774    7,341    7,761 
Depreciation & amortization   149    156    481    467 
Other operating expenses:                    
Salaries and benefits   942    914    2,774    2,688 
Rent and lease expense   152    158    480    483 
Software and technology   226    231    634    636 
Legal and professional expenses   125    193    390    482 
Tradeshows and marketing   169    195    401    605 
Conferences and training   15    20    111    74 
Investor relations   27    27    98    101 
Other expenses   306    272    706    773 
Total other operating expenses   1,962    2,010    5,594    5,842 
Operating income/(loss)  $575   $608   $1,266   $1,452 
Other items to reconcile operating income/(loss) to net income/(loss):                    
Other income/(loss)   1,051    65    1,201    173 
Income tax benefit/(expense)   (480)   (181)   (728)   (466)
Net income/(loss)  $1,146   $492   $1,739   $1,159