Where Food Comes From, Inc. Files 2023 Annual Report (10-K)

TL;DR

<b>Where Food Comes From, Inc. has filed its annual 10-K report for the fiscal year ended December 31, 2023, detailing its financial performance and business operations.</b>

AI Summary

Where Food Comes From, Inc. (WFCF) filed a Annual Report (10-K) with the SEC on February 15, 2024. Where Food Comes From, Inc. filed its 10-K report for the fiscal year ending December 31, 2023. The company's principal executive offices are located at 202 6th Street, Suite 400, Castle Rock, CO 80104. The filing covers the period from January 1, 2023, to December 31, 2023. The company was formerly known as Integrated Management Information, Inc. until April 25, 2006. The filing includes financial data for the fiscal years ending December 31, 2023, and December 31, 2022.

Why It Matters

For investors and stakeholders tracking Where Food Comes From, Inc., this filing contains several important signals. This 10-K filing provides a comprehensive overview of Where Food Comes From, Inc.'s financial health, operational performance, and strategic direction for the fiscal year 2023, which is crucial for investors to assess the company's current standing and future prospects. The detailed financial statements and risk factors within the report offer insights into the company's revenue streams, profitability, and potential challenges, enabling stakeholders to make informed investment decisions.

Risk Assessment

Risk Level: medium — Where Food Comes From, Inc. shows moderate risk based on this filing. The company's business is subject to various risks, including market and operational factors, as indicated by the need for detailed risk factor disclosures in its 10-K filing.

Analyst Insight

Investors should review the detailed financial statements and risk factor disclosures in the 10-K to understand the company's performance and potential challenges.

Key Numbers

• 2023-12-31 — Fiscal Year End (Reporting period)
• 2024-02-15 — Filing Date (Date of submission)
• 001-40314 — SEC File Number (Company's SEC file number)

Key Players & Entities

• Where Food Comes From, Inc. (company) — Filer name
• Integrated Management Information, Inc. (company) — Former company name
• Castle Rock, CO (location) — Business and mailing address city and state
• 2024-02-15 (date) — Filing date
• 2023-12-31 (date) — Fiscal year end date
• 2022-12-31 (date) — Prior fiscal year end date

FAQ

Risk Factors

• Market Risks [medium — market]: The company's operations are subject to various market conditions and competitive pressures.
• Operational Risks [medium — operational]: Potential disruptions or inefficiencies in the company's operations could impact its performance.
• Regulatory Compliance [medium — regulatory]: Adherence to industry regulations and standards is critical for the company's business.

Key Dates

• 2023-12-31: Fiscal Year End — End of the reporting period for the 10-K filing.
• 2024-02-15: Filing Date — Date the 10-K report was officially filed with the SEC.

Key Financial Figures

• $0.001 — ction 12(g) of the Act: Common Stock, $0.001 par value (Title of Class) Indicate
• $13.83 — closing stock price on June 30, 2023 of $13.83. The number of shares of the registra
• $1.1 million — ions, our sales have grown rapidly from $1.1 million in 2006 to $25.1 million in 2023, an 18
• $25.1 million — wn rapidly from $1.1 million in 2006 to $25.1 million in 2023, an 18-year compounded annual g
• $259.06 billion — he global organic food market grew from $259.06 billion in 2022 to $294.54 billion in 2023 at a
• $294.54 billion — et grew from $259.06 billion in 2022 to $294.54 billion in 2023 at a CAGR of 13.7%. Major playe

Filing Documents

• form10-k.htm (10-K) — 1611KB
• ex21-1.htm (EX-21.1) — 3KB
• ex23-1.htm (EX-23.1) — 6KB
• ex31-1.htm (EX-31.1) — 13KB
• ex31-2.htm (EX-31.2) — 13KB
• ex32-1.htm (EX-32.1) — 6KB
• ex32-2.htm (EX-32.2) — 6KB
• ex97.htm (EX-97.CLAWBACK) — 32KB
• 0001493152-24-006846.txt (&nbsp;) — 7725KB
• wfcf-20231231.xsd (EX-101.SCH) — 45KB
• wfcf-20231231_cal.xml (EX-101.CAL) — 76KB
• wfcf-20231231_def.xml (EX-101.DEF) — 155KB
• wfcf-20231231_lab.xml (EX-101.LAB) — 388KB
• wfcf-20231231_pre.xml (EX-101.PRE) — 306KB
• form10-k_htm.xml (XML) — 1522KB

BUSINESS

BUSINESS 3 ITEM 1A. RISK FACTORS 10 ITEM 1B. UNRESOLVED STAFF COMMENTS 18 ITEM 1C. CYBERSECURITY 18 ITEM 2.

PROPERTIES

PROPERTIES 20 ITEM 3. LEGAL PROCEEDINGS 20 ITEM 4. MINE SAFETY DISCLOSURES 20 PART II ITEM 5. MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES 21 ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS 22 ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK 31 ITEM 8. FINANCIAL 31 ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE 59 ITEM 9A. CONTROLS AND PROCEDURES 59 ITEM 9B. OTHER INFORMATION 59 ITEM 9C. DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS 59 PART III ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE 60 ITEM 11. EXECUTIVE COMPENSATION 60 ITEM 12. SECURITY 60 ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE 60 ITEM 14. PRINCIPAL ACCOUNTING FEES AND SERVICES 60 ITEM 15. EXHIBITS, FINANCIAL STATEMENT SCHEDULES 61 ITEM 16. FORM 10-K SUMMARY 62

SIGNATURES

SIGNATURES 63 2 PART I ITEM 1. BUSINESS GENERAL Where Food Comes From, Inc. and its subsidiaries ("WFCF," the "Company," "our," "we," or "us") is a leading trusted resource for third-party verification of food production practices in North America. The Company estimates that is supports more than approximately 17,500 farmers, ranchers, vineyards, wineries, processors, retailers, distributors, trade associations, consumer brands, chefs and restaurants with a wide variety of value-added services provided through its family of verifiers, including IMI Global ("IMI"), Where Food Comes From Organic ("WFCFO" - previously International Certification Services and A Bee Organic), and Validus Verification Services ("Validus"). In order to have credibility, product claims such as gluten-free, non-GMO, non-hormone treated, humane handling, and others require verification by an independent third-party such as WFCF. The Company's principal business is conducting both on-site and desk audits to verify that claims being made about livestock, aquaculture, crops and other food products are accurate. Through SureHarvest Services LLC ("SureHarvest") and Postelsia Holdings, Ltd. ("Postelsia"), we primarily provide a wide range of professional services and technology solutions that generate incremental revenue specific to the food and agricultural industry and drive sustainable value creation. Finally, the Company's Where Food Comes From Source Verified retail and restaurant labeling program utilizes the verification of product attributes to connect consumers directly to the source of the food they purchase through product labeling and web-based information sharing and education. With the use of Quick Response Code ("QR") technology, consumers can instantly access information about the producers behind their food. WFCF was founded in 1996 and incorporated in the state of Colorado as a subchapter C corporation in 2006. The Company's shares of common stock trade on the NAS

BUSINESS

BUSINESS OVERVIEW What We Do The Company is one of the nation's largest independent, third-party traceability and verification providers. We use rigorous verification processes on food production processes to ensure that claims made by food producers and processors are accurate. We care about food and other agricultural products, how it is grown and raised, the quality of what we eat, what farmers and ranchers do, and authentically telling that story to the consumer. Our team visits farms and ranches and looks at their plants, animals, and records, and compares the information we collect to specific standards or claims that farms and ranches want to make about how they are producing food. Our customers include top-tier players in the food and wine space. 3 The Company also provides a wide range of professional consulting services and technology solutions that generate incremental revenue specific to the food and agricultural industry and drive sustainable value creation. The Company's business benefits from growing demand by consumers, retailers and government for increased transparency into food production practices. Consumers: Due to concerns about social responsibility and sustainability, food safety, and an overall increase in health consciousness, consumers are demanding more information about the food they purchase. Retailers: Responding to consumer demands for increased transparency as well as to the negative impact food scandals have on their bottom lines, retailers are requiring their suppliers to adhere to more stringent traceability and verification of product claims. Government Regulation: Regulations including the U.S. Department of Agriculture's ("USDA") Animal Disease Traceability program, international export requirements, non-GMO and gluten-free testing requirements, and ingredient labeling regulations are all impacting product verification. Growth Strategy Due to organic growth in our portfolio of auditing standards, consumer

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View this 10-K filing on SEC EDGAR