UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q [X] QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Quarterly period ended September 30, 2020 [ ] TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ____________ to _____________ Commission File No. 333-133624 WHERE FOOD COMES FROM, INC. (exact name of registrant as specified in its charter) (State or other jurisdiction of ...

Where Food Comes From, Inc. (NASDAQ:WFCF) Q2 2020 Earnings Conference Call August 13, 2020 12:00 PM ET Company Participants Jay Pfeiffer - IR John Saunders - CEO Leann Saunders - President Dannette Henning - CFO Conference Call Participants Terry Thompson - Private Investor Chris Brown - Private Investor Alex Team - First Ballantyne Operator Greetings, and welcome to Where Food Comes From Second Quarter Earnings Conference Call. At this time all participants are in a listen-only mode. A question-and-answer ...

Washington, D.C. 20549 UNITED STATES SECURITIES AND EXCHANGE COMMISSION FORM 10-Q [X] QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Quarterly period ended June 30, 2020 [ ] TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ____________ to _____________ Commission File No. 333-133624 WHERE FOOD COMES FROM, INC. (exact name of registrant as specified in its charter) (State or other jurisdiction of incor ...

Where Food Comes From, Inc. (NASDAQ:WFCF) Q1 2020 Earnings Conference Call May 14, 2020 12:00 PM ET Company Participants Jay Pfeiffer - IR John Saunders - CEO Leann Saunders - President Dannette Henning - CFO Conference Call Participants Terry Thompson - Private Investor Andreas Aaen - Private Investor Chris Brown - Private Investor Operator Greetings, and welcome to the Where Food Comes From First Quarter Results. At this time all participants are in a listen-only mode. A question-and-answer session will f ...

Financial Position - As of March 31, 2020, the company had cash and cash equivalents of approximately $3.2 million, an increase from $2.9 million at December 31, 2019[87]. - The company has a revolving line of credit providing $75,080 in working capital, with an effective interest rate of 4.75% as of March 31, 2020[93]. - On April 17, 2020, the company received a $1.0 million loan under the PPP with an annual interest rate of 1.00%[94]. Cash Flow - Net cash provided by operating activities for the three months ended March 31, 2020, was approximately $0.9 million, down from $1.3 million during the same period in 2019[88]. - Net cash used in investing activities for the three months ended March 31, 2020, was approximately $0.4 million, primarily due to the acquisition of Postelsia Holdings, Ltd for $0.3 million[89]. Revenue Performance - For the three months ended March 31, 2020, total revenues were approximately $3.9 million, a slight decrease from $3.95 million in the same period in 2019[96]. - Verification and certification service revenue decreased less than 0.4% compared to the same period in 2019[97]. - Product sales increased by approximately $0.1 million, or 13.1%, compared to the same period in 2019, driven by the requirement for source and age verification for cattle[98]. - Software license, maintenance, and support services revenue decreased approximately 32.3% compared to the same period in 2019, mainly due to a reduction in billable hours[101]. - Software-related consulting service revenue increased approximately 19.9% compared to the same period in 2019, reflecting fluctuations in customer demand[102]. - The company recorded a net loss attributable to shareholders of approximately $0.2 million for the three months ended March 31, 2020, compared to a net loss of approximately $0.1 million in the same period in 2019[109]. - The company received dividend income of $30,000 from Progressive Beef for the three months ended March 31, 2020, consistent with the previous year[107]. Operational Insights - The company supports over 15,000 farmers and food producers through third-party verification services, enhancing credibility for product claims[76]. - The company employs a SaaS revenue model, bundling software licenses with ongoing enhancements and professional services[77]. - The business is subject to seasonal fluctuations, with significant revenue typically realized from late May through early October[86]. - The company has evaluated customer receivables in light of the COVID-19 pandemic and does not currently feel any are impaired[88]. - Gross margin for the verification and certification segment decreased to 39.7% in Q1 2020 from 41.0% in Q1 2019, primarily due to competitive pricing[99]. - Gross margin for the software sales and related consulting segment declined to 46.6% in Q1 2020 from 49.7% in Q1 2019[103]. - Other operating expenses for the verification and certification segment increased approximately 1.7% compared to the same period in 2019[100]. Future Outlook - The company plans to continue growth through verification bundling opportunities and acquisitions in national and international markets[92].

Where Food Comes From, Inc. (NASDAQ:WFCF) Q4 2019 Earnings Conference Call March 5, 2020 12:00 PM ET Corporate Participants Jay Pfeiffer - Investor Relations John Saunders - Chief Executive Officer Dannette Henning - Chief Financial Officer Conference Call participants Alex Team - First Ballantyne Operator Greetings. Welcome to the Where Food Comes From 2019 Year-End Earnings Conference Call. At this time all participants are in a listen-only mode. A question-and-answer session will follow the formal presen ...

Revenue Growth - Verification and certification service revenue for the year ended December 31, 2019 increased approximately $1.82 million, or 13.3% compared to 2018, driven by new verification customers and increased product offerings [129] - Product sales for the year ended December 31, 2019 increased approximately $1.0 million, or 45.6% compared to 2018, primarily due to the re-opening of the China export market [129] - Total revenues for the year ended December 31, 2019 were $20,774,416, an increase from $17,803,559 in 2018 [126] - Software license, maintenance and support services revenue increased approximately 7.4% over 2018, due to an increase in billable hours for software enhancements [132] - Software-related consulting service revenue increased approximately 5.3% over 2018, driven by growth in customer education and training services [133] Profitability - Gross profit for the year ended December 31, 2019 was $9,079,415, compared to $7,743,751 in 2018 [126] - Gross margin for the software sales and related consulting segment increased to 58.6% in 2019, compared to 41.1% in 2018 [134] - For the year ended December 31, 2019, net income attributable to WFCF shareholders was approximately $1,345,200, or $0.05 per share, compared to $800,700, or $0.03 per share in 2018, representing a 68% increase in net income [140] Expenses and Costs - Selling, general and administrative expenses for the year ended December 31, 2019 increased 5.5% compared to 2018, attributed to increased headcount and compliance costs [131] - Costs of revenues for the verification and certification segment were approximately $10.6 million in 2019, compared to $9.0 million in 2018 [130] Cash Flow and Liquidity - Cash, cash equivalents, and certificates of deposits totaled approximately $2.9 million as of December 31, 2019, up from approximately $2.0 million in 2018, indicating a 45% increase in liquidity [141] - Net cash provided by operating activities during 2019 was approximately $2.9 million, compared to $1.2 million in 2018, reflecting a 142% increase in cash flow from operations [142] - Net cash used in investing activities decreased to approximately $1.1 million in 2019 from approximately $2.0 million in 2018, primarily due to the acquisition of non-controlling interest in SureHarvest [143] - Net cash used in financing activities was approximately $0.6 million in 2019, compared to $0.4 million in 2018, primarily due to share repurchases [145] Deferred Revenue and Future Outlook - The company had deferred revenue of approximately $0.6 million at December 31, 2019, compared to $0.5 million in 2018, indicating a 20% increase in future revenue recognition [158] - The company plans to focus on diversification in product offerings and potential acquisitions to capitalize on growing consumer awareness and demand [149] Goodwill and Intangible Assets - As of December 31, 2019, the company had approximately $2.9 million of goodwill, with no impairment losses recognized during the year [178] - As of December 31, 2019, the fair value of SureHarvest did not exceed the carrying value of net assets by approximately 4.0%, resulting in a goodwill impairment of $0.2 million for the year [179] - Definite-lived intangible assets are amortized over useful lives ranging from two to fifteen years, based on the nature of the assets and historical experience [180] - The company evaluates the remaining useful life of indefinite-lived intangible assets each reporting period, concluding that no changes were necessary as of December 31, 2019 [188] Accounting Policies - The company adopted ASU 2016-02: Leases (Topic 842) as of January 1, 2019, impacting the accounting for operating and finance leases [183] - ROU assets and liabilities are recognized at the lease commencement date based on the estimated present value of lease payments over the lease term [185] - Business combinations are accounted for by allocating the purchase price to tangible and intangible assets based on their estimated fair values at the acquisition date [189] - The company uses various recognized valuation methods, including present value modeling, to determine the fair values of assets acquired in business combinations [190] - Deferred revenue is re-measured at the acquisition date to reflect the cost related to the associated legal performance obligation assumed during the acquisition [191] - Recent accounting pronouncements are detailed in Note 2 of the consolidated financial statements [193]

Where Food Comes From, Inc. (NASDAQ:WFCF) Q3 2019 Earnings Conference Call November 14, 2019 12:00 PM ET Company Participants Jay Pfeiffer - IR John Saunders - CEO Leann Saunders - President Dannette Henning - CFO Conference Call Participants Raphi Savitz - RYS Advisors Operator Greetings, welcome to the Where Food Comes From 2019 Third Quarter Earnings Call. At this time all participants are in a listen-only mode. A brief question and answer session will follow the formal presentation. [Operator Instructio ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q Commission File No. 333-133624 | Large accelerated filer: | ☐ | Accelerated filer: | ☐ | | --- | --- | --- | --- | | Non-accelerated filer: | ☐ | Smaller reporting company: | ☒ | | Emerging growth company | ☐ | | | If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to ...

Financial Performance - Total revenues for the three months ended June 30, 2019, were $4,888,259, an increase from $4,438,308 in the same period of 2018, representing a growth of approximately 10.1%[193] - Verification and certification service revenue reached $3,743,241 for Q2 2019, up from $3,507,757 in Q2 2018, indicating a year-over-year increase of about 6.7%[193] - Gross profit for the three months ended June 30, 2019, was $2,088,402, compared to $2,011,726 in the same period of 2018, reflecting a growth of approximately 3.8%[193] - Segment operating income for the three months ended June 30, 2019, was $403,214, an increase from $241,258 in Q2 2018, showing a significant improvement of about 67.2%[193] - Net income attributable to WFCF for the three months ended June 30, 2019, was $361,089, compared to a net loss of $80,000 in the same period of 2018, marking a substantial turnaround[193] - Net income attributable to WFCF shareholders for the six months ended June 30, 2019 was approximately $218,000, or $0.01 per basic and diluted common share[206] Cash Flow and Liquidity - As of June 30, 2019, the company had cash and cash equivalents of approximately $2,855,900, an increase from $1,981,000 at December 31, 2018, indicating improved liquidity[183] - Net cash provided by operating activities for the six months ended June 30, 2019, was approximately $1,379,100, compared to $1,118,800 during the same period in 2018, reflecting a growth of 23.3%[184] - The company reported net cash used in investing activities of approximately $1,600 for the six months ended June 30, 2019, a significant improvement from cash used of $614,200 in the same period of 2018[185] - Net cash used in financing activities for the six months ended June 30, 2019, was approximately $262,700, compared to $149,300 in 2018, primarily due to share repurchases[186] - The company has a revolving line of credit agreement providing $75,080 in working capital, with an effective interest rate of 7.0% as of June 30, 2019[191] - The company has no off-balance sheet arrangements as of June 30, 2019, indicating a straightforward financial position[192] Revenue Growth and Market Opportunities - The global organic food market was valued at $110.25 billion in 2016 and is projected to grow at a CAGR of 16.15%, reaching $262.85 billion by 2022, indicating a strong market opportunity for the company[181] - The company plans to continue growth through verification bundling opportunities and acquisitions in national and international markets, leveraging quality verification programs as a key differentiator[189] - Product sales for the six months ended June 30, 2019 increased by approximately $426,200, or 50.1%, compared to the same period in 2018, driven by growth in the China export market[196] Operating Expenses and Profitability - The company incurred other operating expenses of $1,400,080 for the three months ended June 30, 2019, down from $1,541,362 in the same period of 2018, indicating a reduction of about 9.2%[193] - Other operating expenses for the six months ended June 30, 2019 increased by approximately 0.9% compared to the same period in 2018[198] - The company reported a gross margin of approximately 42.7% for Q2 2019, compared to 45.2% in Q2 2018, reflecting a slight decline in profitability[193] Segment Performance - The company’s verification and certification services segment showed a strong performance, contributing significantly to overall revenue growth and profitability[193] - Verification and certification service revenue for the six months ended June 30, 2019 increased by approximately $251,000, or 4.0%, compared to the same period in 2018[195] - Costs of revenues for the verification and certification segment for the six months ended June 30, 2019 were approximately $4.6 million, compared to $3.8 million for the same period in 2018[197] - Gross margin for the verification and certification segment for the six months ended June 30, 2019 decreased to 41.7%, compared to 46.2% in 2018[197] - Software license, maintenance, and support services revenue for the six months ended June 30, 2019 increased by approximately 23.9% over 2018, primarily due to an increase in billable hours for software enhancements[199] - Software-related consulting service revenue for the six months ended June 30, 2019 increased by approximately 31.0% compared to the same period in 2018, driven by growth in customer education and training services[200] - Costs of revenues for the software sales and related consulting segment for the six months ended June 30, 2019 were approximately $588,000, compared to $469,000 for the same period in 2018[201] Stakeholder Engagement - The company supports over 15,000 stakeholders in the food production industry, enhancing its market presence and credibility through third-party verification services[173] - The company received dividend income of $60,000 from Progressive Beef for the six months ended June 30, 2019[204]