v3.25.2
Segments
 6 Months Ended
Jun. 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.

 

 

Where Food Comes From, Inc.

Notes to the Consolidated Financial Statements

(Unaudited)

 

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.

 

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

  

             
   Three months ended June 30,   Six months ended June 30, 
   2025   2024   2025   2024 
Assets:                    
Goodwill  $2,946   $2,946   $2,946   $2,946 
All other assets, net   13,678    13,839    13,678    13,839 
Total assets  $16,624   $16,785   $16,624   $16,785 
                     
Revenues:                    
Verification and certification service revenue  $5,332   $5,252   $9,514   $9,686 
Product sales   964    819    1,666    1,552 
Professional services   266    324    655    739 
Total revenues  $6,562   $6,395   $11,835   $11,977 
Costs of revenues:                    
Costs of verification and certification services   3,282    3,028    5,677    5,543 
Costs of products   617    469    1,045    903 
Costs of professional services   203    240    458    544 
Total costs of revenues   4,102    3,737    7,180    6,990 
Gross profit   2,460    2,658    4,655    4,987 
Depreciation & amortization   159    156    332    311 
Other operating expenses:                    
Salaries and benefits   929    928    1,832    1,774 
Rent and lease expense   167    158    328    325 
Software and technology   201    199    408    405 
Legal and professional expenses   100    93    265    289 
Tradeshows and marketing   105    208    232    410 
Conferences and training   30    30    96    54 
Investor relations   34    33    71    74 
Other expenses   186    270    400    501 
Total Other operating expenses   1,752    1,919    3,632    3,832 
Operating income/(loss)  $549   $583   $691   $844 
Other items to reconcile operating income/(loss) to net income/(loss):                    
Other income/(loss)   223    104    150    108 
Income tax benefit/(expense)   (210)   (198)   (248)   (285)
Net income/(loss)  $562   $489   $593   $667 

 

 

Where Food Comes From, Inc.

Notes to the Consolidated Financial Statements

(Unaudited)