Where Food es From(WFCF)2023-05-15 16:23Financial Position - As of March 31, 2023, the company had cash and cash equivalents of approximately $3.4 million, down from $4.4 million at December 31, 2022[88] - The company’s working capital at March 31, 2023 was approximately $3.7 million, down from $4.9 million at December 31, 2022[88] - The company has a revolving line of credit agreement providing for $75,080 in working capital, with an effective interest rate of 9.5% as of March 31, 2023[96] Cash Flow - Net cash provided by operating activities for the three months ended March 31, 2023 was approximately $0.5 million, compared to $1.1 million during the same period in 2022[89] - Net cash used in investing activities for the three months ended March 31, 2023 was approximately $0.2 million, primarily related to an equity investment in BlueTrace[90] - Net cash used in financing activities for the three months ended March 31, 2023 was approximately $1.2 million, compared to $0.4 million in the same period in 2022, mainly due to the repurchase of common shares[91] Revenue Performance - For the three months ended March 31, 2023, total revenues were approximately $5.3 million, a decrease of 14.4% compared to $6.2 million for the same period in 2022[110] - Verification and certification service revenue for the three months ended March 31, 2023 was $3.8 million, slightly improved from $3.7 million in the same period in 2022[100] - Product sales decreased by 3.6% to $971,000 for the three months ended March 31, 2023, compared to $1.0 million in the same period in 2022[101] - Software and related consulting revenue decreased approximately 64.1% to $490,000 for the three months ended March 31, 2023, compared to $1.4 million in the same period in 2022[105] Profitability - Gross margin for the verification and certification segment was 42.1% for the three months ended March 31, 2023, down from 46.3% in 2022[102] - Gross margin for the software and related consulting segment improved to 26.5% for the three months ended March 31, 2023, compared to 13.1% in 2022[106] - Net income attributable to shareholders for the three months ended March 31, 2023 was approximately $0.1 million, down from $0.5 million in the same period in 2022[110] Expenses - Other operating expenses increased by approximately 15.4% for the three months ended March 31, 2023, primarily due to travel and marketing expenses[104] - The company recorded an income tax expense of approximately $90,000 for the three months ended March 31, 2023, compared to $163,000 for the same period in 2022[109] Strategic Focus - The company supports approximately 17,500 farmers and businesses through its verification services, indicating a broad market presence[72] - The company is focused on diversifying and bundling product offerings to capture growth opportunities in national and international markets[95] - The company’s verification solutions are the primary driver of operating cash flow, emphasizing the importance of revenue growth and gross margin[93] - The company monitors risks related to pandemics, inflation, and weather, indicating a proactive approach to risk management[76] Dividend Information - Dividend income from Progressive Beef for the three months ended March 31, 2023 was $50,000, consistent with the previous year[108]