Where Food es From(WFCF) - 2025 Q2 - Quarterly Report

Part I - Financial Information Item 1. Financial Statements Presents unaudited consolidated financial statements for periods ended June 30, 2025, and December 31, 2024, prepared under GAAP and SEC regulations Consolidated Balance Sheets Consolidated Balance Sheets (in thousands) | Metric (in thousands) | June 30, 2025 | December 31, 2024 | Change | | :-------------------- | :------------ | :---------------- | :----- | | Total Assets | $16,624 | $15,306 | +$1,318 | | Total Liabilities | $6,653 | $5,373 | +$1,280 | | Total Equity | $9,971 | $9,933 | +$38 | Consolidated Statements of Operations (Three Months Ended June 30) Consolidated Statements of Operations (Three Months Ended June 30, in thousands) | Metric (in thousands) | Q2 2025 | Q2 2024 | YoY Change | | :-------------------- | :------ | :------ | :--------- | | Total Revenues | $6,562 | $6,395 | +2.61% | | Gross Profit | $2,460 | $2,658 | -7.45% | | Income from Operations| $549 | $583 | -5.83% | | Net Income | $562 | $489 | +14.93% | | Basic EPS | $0.11 | $0.09 | +22.22% | | Diluted EPS | $0.11 | $0.09 | +22.22% | Consolidated Statements of Operations (Six Months Ended June 30) Consolidated Statements of Operations (Six Months Ended June 30, in thousands) | Metric (in thousands) | H1 2025 | H1 2024 | YoY Change | | :-------------------- | :------ | :------ | :--------- | | Total Revenues | $11,835 | $11,977 | -1.19% | | Gross Profit | $4,655 | $4,987 | -6.66% | | Income from Operations| $691 | $844 | -18.13% | | Net Income | $593 | $667 | -11.09% | | Basic EPS | $0.11 | $0.12 | -8.33% | | Diluted EPS | $0.11 | $0.12 | -8.33% | Consolidated Statements of Cash Flows Consolidated Statements of Cash Flows (in thousands) | Metric (in thousands) | H1 2025 | H1 2024 | YoY Change | | :-------------------- | :------ | :------ | :--------- | | Net cash from Operating Activities | $1,813 | $1,868 | -3.05% | | Net cash used in Investing Activities | $(63) | $(91) | +30.67% | | Net cash used in Financing Activities | $(561) | $(1,818) | +69.14% | | Net change in cash | $1,189 | $(41) | N/A | | Cash at end of period | $3,201 | $2,600 | +23.12% | Consolidated Statement of Equity (2025) Consolidated Statement of Equity (2025, in thousands) | Metric (in thousands) | Dec 31, 2024 | Mar 31, 2025 | Jun 30, 2025 | | :-------------------- | :----------- | :----------- | :----------- | | Common Stock Shares | 5,242 | 5,212 | 5,197 | | Total Equity | $9,933 | $9,591 | $9,971 | - In April 2025, the Company canceled 1,237,700 shares of outstanding common stock held as treasury shares, resulting in a transfer of approximately $13.8 million from Treasury stock to Additional paid-in capital ($11.4 million) and Retained earnings ($2.4 million)[55] Consolidated Statement of Equity (2024) Consolidated Statement of Equity (2024, in thousands) | Metric (in thousands) | Dec 31, 2023 | Mar 31, 2024 | Jun 30, 2024 | | :-------------------- | :----------- | :----------- | :----------- | | Common Stock Shares | 5,503 | 5,395 | 5,363 | | Total Equity | $10,819 | $9,576 | $9,686 | - During March 2024, the Company purchased 80,201 shares of its common stock from one shareholder for approximately $1.0 million, which were immediately retired[54] Notes to the Consolidated Financial Statements Provides detailed disclosures and explanations for consolidated financial statement figures, covering business, accounting policies, assets, liabilities, equity, revenue, leases, and subsequent events Note 1 - The Company and Basis of Presentation - Where Food Comes From, Inc. is an independent, third-party food verification company conducting on-site and desk audits to verify claims about livestock, food, specialty crops, and agricultural/aquaculture products[26] - The company also provides professional consulting services and operates the Where Food Comes From Source Verified® retail and restaurant labeling program[27] - The business experiences seasonal fluctuations, with significant verification and certification service revenue typically realized from late May through early October, coinciding with peak calf marketings and growing seasons. The cattle industry is also cyclical, and the company is currently in a contraction phase[32][33][34] Note 2 – Basic and Diluted Net Income per Share Basic and Diluted Net Income per Share (in thousands) | Shares (in thousands) | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :-------------------- | :------ | :------ | :------ | :------ | | Basic Weighted Average Shares Outstanding | 5,272 | 5,371 | 5,227 | 5,426 | | Diluted Weighted Average Shares Outstanding | 5,283 | 5,388 | 5,240 | 5,444 | | Antidilutive Securities | 17 | 17 | 17 | 17 | Note 3 – Equity Investments Dividend Income from Progressive Beef (in thousands) | Dividend Income (in thousands) | H1 2025 | H1 2024 | YoY Change | | :----------------------------- | :------ | :------ | :--------- | | From Progressive Beef | $50 | $100 | -50.00% | - On July 22, 2025, the Company entered into an agreement to redeem its 10% membership interests in Progressive Beef, LLC for approximately $1.8 million cash and the surrender of 12,585 shares of the Company's common stock by the buyer, effective June 30, 2025[41] Note 4 – Intangible and Other Assets Intangible and Other Assets (in thousands) | Asset (in thousands) | June 30, 2025 | December 31, 2024 | | :------------------- | :------------ | :---------------- | | Tradenames and trademarks | $818 | $818 | | Customer relationships | $3,470 | $3,470 | | Less accumulated amortization | $(2,699) | $(2,497) | | Intangible assets, net | $1,589 | $1,791 | | Other assets | $23 | $19 | | Total Intang