WHERE FOOD COMES FROM, INC. Cautionary Note Regarding Forward-Looking Statements
This Annual Report on Form 10-K and other publicly available documents, including the documents incorporated herein and therein by reference, contain "forward-looking statements" within the meaning of the safe harbor provisions of theU.S. Private Securities Litigation Reform Act of 1995. Additionally, our officers and representatives may from time to time make forward-looking statements. Forward-looking statements can be identified by words such as "anticipate," "intend," "plan," "goal," "seek," "believe," "project," "estimate," "expect," "strategy," "future," "likely," "may," "should," "will" and similar references to future periods. Examples of forward-looking statements include, among others, statements we make regarding:
? our expectations and beliefs about the market and industry and competitive
landscape;
? our goals, plans, and expectations regarding our operations and properties and
results;
? our beliefs about our competitive advantages, the diversification of our
product offerings, and the keys to our success;
? plans regarding our Stock Buyback Plan;
? our beliefs and expectations regarding our financial position, ability to
finance operations and growth, and pay dividends;
? the amount of financing necessary to support operations; and
? our beliefs regarding the impact of the adoption of certain accounting
standards on our financial statements.
Forward-looking statements are neither historical facts nor assurances of future
performance. Instead, they are based only on our current beliefs, expectations
and assumptions regarding the future of our business, future plans and
strategies, projections, anticipated events and trends, the economy and other
future conditions. Because forward-looking statements relate to the future, they
are subject to inherent uncertainties, risks and changes in circumstances that
are difficult to predict and many of which are outside of our control. Our
actual results and financial condition may differ materially from those
indicated in the forward-looking statements. Therefore, you should not rely on
any of these forward-looking statements. Important factors that could cause our
actual results and financial condition to differ materially from those indicated
in the forward-looking statements include, among others, the following:
? changing technology and evolving standards in the livestock and food industry;
? consumer focus on social responsibility, sustainability, food safety and
assurance;
? competition from other providers serving the food and agriculture industry;
? economic and financial conditions in the livestock and food industry;
? international export market activities, including trade barriers to certain
beef and other livestock exports;
? market demand for beef and other livestock products;
? seasonal volatility in business activity;
? developments and changes in laws and regulations, including increasedregulation of the livestock and food industry through legislative action and
revised rules and standards;
? strategic actions, including acquisitions and our success in integrating
acquired businesses;
? enforceability of our patents, trademarks and other intellectual property
rights;
? continued service of key senior management personnel;
? the impact of COVID-19 on our business, customers, suppliers and employees;
? disruptions of inefficiencies in the supply chain, including any impact of
COVID-19; and
? such other factors as discussed throughout Part II, "Item 7. "Management's
Discussion and Analysis of Financial Condition and Results of Operations" and
in Part I, Item 1A. "Risk Factors."
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Any forward-looking statement made by us in this Annual Report on Form 10-K is based only on information currently available to us and speaks only as of the date on which it is made. We undertake no obligation to publicly update any forward-looking statement, whether written or oral, that may be made from time to time, whether as a result of new information, future developments or otherwise.
RESULTS OF OPERATIONS
Year Ended
The following table shows information for reportable operating business
segments:
Year ended December 31, 2022 Year ended December 31, 2021
Software Software
Verification Sales and Verification Sales and
and Related and Related
Certification Consulting Eliminations Consolidated Certification Consulting Eliminations Consolidated
Segment Segment and Other Totals Segment Segment and Other Totals
Assets:
Goodwill $ 1,947 $ 999 $ - $ 2,946 $ 1,947 $ 999 $ - $ 2,946 All other assets, net 9,949 3,182 2,219 15,350 14,267 3,848 (1,277 ) 16,838 Total assets$ 11,896 $ 4,181 $ 2,219 $ 18,296 $ 16,214 $ 4,847 $ (1,277 ) $ 19,784
Revenues:
Verification and certification service revenue$ 17,610 $ - $ -$ 17,610 $ 16,058 $ - $ -$ 16,058 Product sales 4,364 - - 4,364 3,830 - - 3,830 Software and related consulting revenue - 2,871 - 2,871 - 2,044 - 2,044 Total revenues$ 21,974 $ 2,871 $ -$ 24,845 $ 19,888 $ 2,044 $ -$ 21,932 Costs of revenues: Costs of verification and certification services 9,748 - - 9,748 8,402 - - 8,402 Costs of products 2,333 - - 2,333 2,441 - - 2,441 Costs of software and related consulting - 2,296 - 2,296 - 1,352 - 1,352 Total costs of revenues 12,081 2,296 - 14,377 10,843 1,352 - 12,195 Gross profit 9,893 575 - 10,468 9,045 692 - 9,737 Depreciation & amortization 582 183 - 765 597 202 - 799 Other operating expenses 6,805 246 - 7,051 6,324 311 - 6,635
Segment operating income/(loss) $ 2,506$ 146 $ -$ 2,652 $ 2,124$ 179 $ -$ 2,303 Other items to reconcile segment operating income/(loss) to net income/(loss): Other income/(loss) 202 (38 ) - 164 1,329 (12 ) - 1,317 Income tax benefit/(expense) - -
(822 ) (822 ) - - (659 ) (659 )
Net income/(loss) $ 2,708 $ 108 $ (822 ) $ 1,994 $ 3,453 $ 167 $ (659 ) $ 2,961 © Edgar Online, source
