Financial Data and Key Metrics Changes - Total revenue in Q3 2025 was $7 million, a decline of $92,000 compared to the same quarter last year [3] - Revenue in the verification and certification segment grew by 1% to $5.6 million, driven by increased activity across the portfolio [3] - Net income increased to $1.1 million or $0.22 per share, compared to $500,000 or $0.09 per share a year ago [5] - Operating income was $575,000, down from $608,000 in the previous year [5] - Cash and cash equivalents rose to $4.8 million from $2 million at the end of 2024, with no debt reported [6] Business Line Data and Key Metrics Changes - Hardware sales declined to $1.2 million from $1.3 million year over year, attributed to lower tag volumes due to herd shrinkage [4] - Customer retention rates remained well above 90%, contributing to revenue stability [4] - The Care Certified program and certification activities for organic, non-GMO, gluten-free, and upcycled products all showed gains [4] Market Data and Key Metrics Changes - The company reported strength in various service offerings, which offset the impact of smaller herd sizes on core beef-related verification activities [3] - The company was ranked 74th in Time Magazine's America's Growth Leaders 2026, highlighting its position among innovative public companies [8] Company Strategy and Development Direction - The company aims to remain at the forefront of the trend for verified sourcing, addressing consumer demand for transparency in food origins [8] - There is a focus on innovation with new services expected to become meaningful revenue streams, including a labeling program that has gained traction [9] - The company is exploring new growth areas and technologies, including AI initiatives to improve efficiency and customer service [25] Management's Comments on Operating Environment and Future Outlook - Management acknowledged challenges such as tariffs, inflationary pressures, and smaller herd sizes impacting verification and hardware revenue [5] - There is cautious optimism regarding a potential build-up in cattle herds, although challenges remain due to border issues and drought conditions [12][13] - The company is positioned as a growth company, actively seeking opportunities to invest in new companies and technologies [25] Other Important Information - The sale of Progressive Beef generated cash proceeds of $1.8 million, contributing to a stronger balance sheet [6] - The company has returned over $14 million in value to shareholders through stock buybacks since the program's inception [6] Q&A Session Summary Question: When will product revenue see a material pickup relative to herd size growth? - Management indicated that cattle prices are starting to support herd rebuilding, but challenges remain due to border closures and other issues [12][13] Question: What other businesses and programs are expected to grow in the next year or two? - Management highlighted growth in dairy, poultry, and organic certification, as well as the unique position in upcycled certification [20] Question: How does the company view its capital structure and future growth? - Management confirmed the company is a growth-oriented entity, looking for opportunities to invest and expand while maintaining a strong balance sheet [25]