0001387131-19-008721.txt : 20191114 0001387131-19-008721.hdr.sgml : 20191114 20191114130203 ACCESSION NUMBER: 0001387131-19-008721 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 76 CONFORMED PERIOD OF REPORT: 20190930 FILED AS OF DATE: 20191114 DATE AS OF CHANGE: 20191114 FILER: COMPANY DATA: COMPANY CONFORMED NAME: Where Food Comes From, Inc. CENTRAL INDEX KEY: 0001360565 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-PREPACKAGED SOFTWARE [7372] IRS NUMBER: 431802805 FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 333-133624 FILM NUMBER: 191218447 BUSINESS ADDRESS: STREET 1: 202 6TH STREET STREET 2: SUITE 400 CITY: CASTLE ROCK STATE: CO ZIP: 80104 BUSINESS PHONE: (303) 895-3002 MAIL ADDRESS: STREET 1: 202 6TH STREET STREET 2: SUITE 400 CITY: CASTLE ROCK STATE: CO ZIP: 80104 FORMER COMPANY: FORMER CONFORMED NAME: Integrated Management Information, Inc. DATE OF NAME CHANGE: 20060425 10-Q 1 wfcf-10q_093019.htm QUARTERLY REPORT

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

☒	QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the Quarterly period ended September 30, 2019

☐	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)

Colorado

43-1802805

(State or other jurisdiction of

incorporation or organization)

(I.R.S. Employer Identification No.)

202 6^th Street, Suite 400

Castle Rock, CO 80104

(Address of principal executive offices, including zip code)

Registrant’s telephone number, including area code:

(303) 895-3002

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the preceding 12 months (or for such shorter period that the registrant was required to file such reports); and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act:

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 Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes ☐ No ☒

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, $0.001 par value	WFCF	OTC Markets Group

The number of shares of the registrant’s common stock, $0.001 par value per share, outstanding as of November 4, 2019, was 24,733,302.

Where Food Comes From, Inc.

Table of Contents

September 30, 2019

Part 1 - Financial Information

Item 1.	Financial Statements	3

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	32

Item 4.	Controls and Procedures	38

Part II - Other Information

Item 1.	Legal Proceedings	40

Item 1A.	Risk Factors	40

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	40

Item 6.	Exhibits	40

Where Food Comes From, Inc.

Consolidated Balance Sheets

	September 30,			December 31,
	2019			2018
Assets	(Unaudited)
Current assets:
Cash and cash equivalents	$	3,420,278		$	1,482,391
Accounts receivable, net of allowance		2,972,579			2,205,162
Short-term investments in certificates of deposit		256,802			245,597
Prepaid expenses and other current assets		205,841			439,424
Total current assets		6,855,500			4,372,574
Property and equipment, net		1,569,480			1,675,472
Right-of-use assets		3,331,344			—
Long-term investments in certificates of deposit		—			252,999
Investment in Progressive Beef		991,115			991,115
Intangible and other assets, net		3,397,797			3,852,121
Goodwill		3,143,734			3,143,734
Deferred tax assets, net		248,923			175,923
Total assets	$	19,537,893		$	14,463,938

Liabilities and Equity
Current liabilities:
Accounts payable	$	1,014,904		$	533,925
Accrued expenses and other current liabilities		1,133,594			492,601
Deferred revenue		951,826			654,872
Current portion of notes payable		10,689			10,173
Current portion of finance lease obligations		8,054			11,309
Current portion of operating lease obligations		232,903			—
Total current liabilities		3,351,970			1,702,880
Notes payable, net of current portion		24,966			32,220
Finance lease obligations, net of current portion		23,798			32,747
Operating lease obligation, net of current portion		3,588,040			—
Deferred rent liability		—			119,187
Lease incentive obligation		—			362,088
Total liabilities		6,988,774			2,249,122

Commitments and contingencies

Contingently redeemable non-controlling interest		1,267,178			1,449,007

Equity:
Preferred stock, $0.001 par value; 5,000,000 shares authorized; none issued or outstanding		—			—
Common stock, $0.001 par value; 95,000,000 shares authorized; 25,498,115 (2019) and 25,473,115 (2018) shares issued, and 24,784,625 (2019) and 24,968,256 (2018) shares outstanding		25,498			25,473
Additional paid-in-capital		11,159,709			11,031,264
Treasury stock of 713,490 (2019) and 504,859 (2018) shares		(1,480,281	)		(1,109,061	)
Retained earnings		1,577,015			818,133
Total equity		11,281,941			10,765,809
Total liabilities and stockholders' equity	$	19,537,893		$	14,463,938

The accompanying notes are an integral part of these consolidated financial statements.

Where Food Comes From, Inc.

Consolidated Statements of Operations

(Unaudited)

	Three months ended September 30,
	2019			2018
Revenues:
Verification and certification service revenue	$	4,759,383		$	3,906,996
Product sales		1,086,272			783,303
Software license, maintenance and support services revenue		226,816			208,541
Software-related consulting service revenue		160,011			226,538
Total revenues		6,232,482			5,125,378
Costs of revenues:
Costs of verification and certification services		2,673,200			2,098,462
Costs of products		696,579			489,149
Costs of software license, maintenance and support services		153,452			183,942
Costs of software-related consulting services		122,224			117,303
Total costs of revenues		3,645,455			2,888,856
Gross profit		2,587,027			2,236,522
Selling, general and administrative expenses		1,973,032			1,819,019
Income from operations		613,995			417,503
Other expense (income):
Dividend income from Progressive Beef		(30,000	)		(100,000	)
Other income, net		(2,028	)		(3,516	)
Interest expense		2,459			1,361
Income before income taxes		643,564			519,658
Income tax expense		184,001			169,000
Net income		459,563			350,658
Net loss attributable to non-controlling interest		81,359			26,691
Net income attributable to Where Food Comes From, Inc.	$	540,922		$	377,349

Per share - net income attributable to Where Food Comes From, Inc.:
Basic	$	0.02		$	0.02
Diluted	$	0.02		$	0.02

Weighted average number of common shares outstanding:
Basic		24,791,534			24,900,919
Diluted		24,971,625			25,074,477

The accompanying notes are an integral part of these consolidated financial statements.

Where Food Comes From, Inc.

Consolidated Statements of Operations

(Unaudited)

	Nine months ended September 30,
	2019			2018
Revenues:
Verification and certification service revenue	$	11,314,318		$	10,210,947
Product sales		2,362,663			1,633,509
Software license, maintenance and support services revenue		821,779			759,301
Software-related consulting service revenue		576,521			580,731
Total revenues		15,075,281			13,184,488
Costs of revenues:
Costs of verification and certification services		6,332,564			5,399,626
Costs of products		1,537,837			1,035,094
Costs of software license, maintenance and support services		469,065			489,887
Costs of software-related consulting services		394,660			280,310
Total costs of revenues		8,734,126			7,204,917
Gross profit		6,341,155			5,979,571
Selling, general and administrative expenses		5,624,559			5,293,961
Income from operations		716,596			685,610
Other expense (income):
Dividend income from Progressive Beef		(90,000	)		(100,000	)
Other income, net		(7,195	)		(11,556	)
Gain on sale of assets		(1,000	)		—
Interest expense		7,648			3,755
Income before income taxes		807,143			793,411
Income tax expense		230,090			257,000
Net income		577,053			536,411
Net loss attributable to non-controlling interest		181,829			53,261
Net income attributable to Where Food Comes From, Inc.	$	758,882		$	589,672

Per share - net income attributable to Where Food Comes From, Inc.:
Basic	$	0.03		$	0.02
Diluted	$	0.03		$	0.02

Weighted average number of common shares outstanding:
Basic		24,879,556			24,756,262
Diluted		25,062,349			24,938,699

The accompanying notes are an integral part of these consolidated financial statements.

Where Food Comes From, Inc.

Consolidated Statements of Cash Flows

(Unaudited)

	Nine months ended September 30,
	2019			2018

Operating activities:
Net income	$	577,053		$	536,411
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		802,416			742,780
Lease incentive obligation		—			(8,127	)
Gain on sale of assets		(1,000	)		—
Stock-based compensation expense		128,470			125,239
Deferred tax (benefit) expense		(73,000	)		57,376
Bad debt expense		26,803			10,000
Changes in operating assets and liabilities, net of effect from acquisitions:
Accounts receivable		(794,220	)		(674,398	)
Short-term investments		(11,205	)		(3,196	)
Prepaid expenses and other assets		233,583			(62,403	)
Accounts payable		480,979			278,425
Accrued expenses and other current liabilities		640,993			544,473
Deferred revenue		296,954			71,831
Right of use assets and liabilities, net		26,793			—
Net cash provided by operating activities		2,334,619			1,618,411

Investing activities:
Acquisition of Sow Organic		—			(450,000	)
Acquisition of JVF Consulting		—			(500,000	)
Investment in Progressive Beef		—			(900,000	)
Proceeds from sale of assets		1,000			—
Purchases of property, equipment and software development costs		(268,269	)		(325,227	)
Proceeds from maturity of short-term investments		252,999			250,000
Redemption (purchases) of other long-term assets		—			(1,350	)
Net cash used in investing activities		(14,270	)		(1,926,577	)

Financing activities:
Repayments of notes payable		(6,738	)		(7,062	)
Repayments of finance lease obligations		(4,504	)		(5,918	)
Stock repurchase under Stock Buyback Plan		(371,220	)		(140,850	)
Net cash used in financing activities		(382,462	)		(153,830	)
Net change in cash		1,937,887			(461,996	)
Cash at beginning of period		1,482,391			2,705,778
Cash at end of period	$	3,420,278		$	2,243,782

The accompanying notes are an integral part of these consolidated financial statements.

Where Food Comes From, Inc.

Consolidated Statement of Equity

(Unaudited)

						Additional
	Common Stock					Paid-in			Treasury			Retained
	Shares			Amount		Capital			Stock			Earnings		Total

Balance at January 1, 2018		24,652,895		$	24,972	$	10,353,037		$	(724,530	)	$	17,397	$	9,670,876

Stock-based compensation expense		—			—		37,902			—			—		37,902
Repurchase of common shares under Stock Buyback Plan		(15,680	)		—		—			(39,648	)		—		(39,648	)
Net income attributable to Where Food Comes From, Inc.		—			—		—			—			35,484		35,484
Balance at March 31, 2018		24,637,215		$	24,972	$	10,390,939		$	(764,178	)	$	52,881	$	9,704,614

Effect of acquisition fair value adjustment		—			—		(321,937	)		—			—		(321,937	)
Stock-based compensation expense		—			—		42,119			—			—		42,119
Issuance of common shares in acquisition of Sow Organic LLC		217,654			218		432,913			—			—		433,131
Repurchase of common shares under Stock Buyback Plan		(49,700	)		—		—			(101,202	)		—		(101,202	)
Net income attributable to Where Food Comes From, Inc.		—			—		—			—			176,839		176,839
Balance at June 30, 2018		24,805,169		$	25,190	$	10,544,034		$	(865,380	)	$	229,720	$	9,933,564

Stock-based compensation expense		—			—		45,218			—			—		45,218
Issuance of common shares for investment in Progressive Beef LLC		50,340			50		91,065			—			—		91,115
Issuance of common shares in acquisition of JVF Consulting LLC		158,437			159		315,132			—			—		315,291
Vesting of restricted shares issued to employees		74,000			74		(74	)		—			—		—
Net income attributable to Where Food Comes From, Inc.		—			—		—			—			377,349		377,349
Balance at September 30, 2018		25,087,946		$	25,473	$	10,995,375		$	(865,380	)	$	607,069	$	10,762,537

The accompanying notes are an integral part of these consolidated financial statements.

Where Food Comes From, Inc.

Consolidated Statement of Equity

(Unaudited)

						Additional
	Common Stock					Paid-in			Treasury			Retained
	Shares			Amount		Capital			Stock			Earnings			Total

Balance at January 1, 2019		24,968,256		$	25,473	$	11,031,264		$	(1,109,061	)	$	818,133		$	10,765,809

Stock-based compensation expense		—			—		44,702			—			—			44,702
Repurchase of common shares under Stock Buyback Plan		(46,758	)		—		—			(83,423	)		—			(83,423	)
Net loss attributable to Where Food Comes From, Inc.		—			—		—			—			(143,129	)		(143,129	)
Balance at March 31, 2019		24,921,498		$	25,473	$	11,075,966		$	(1,192,484	)	$	675,004		$	10,583,959

Stock-based compensation expense		—			—		47,096			—			—			47,096
Repurchase of common shares under Stock Buyback Plan		(95,348	)		—		—			(168,769	)		—			(168,769	)
Net income attributable to Where Food Comes From, Inc.		—			—		—			—			361,089			361,089
Balance at June 30, 2019		24,826,150		$	25,473	$	11,123,062		$	(1,361,253	)	$	1,036,093		$	10,823,375

Stock-based compensation expense		—			—		36,672			—			—			36,672
Vesting of restricted shares to Employees		25,000			25		(25	)		—			—			—
Repurchase of common shares under Stock Buyback Plan		(66,525	)		—		—			(119,028	)		—			(119,028	)
Net income attributable to Where Food Comes From, Inc.		—			—		—			—			540,922			540,922
Balance at September 30, 2019		24,784,625		$	25,498	$	11,159,709		$	(1,480,281	)	$	1,577,015		$	11,281,941

The accompanying notes are an integral part of these consolidated financial statements.

Where Food Comes From, Inc.

Notes to the Consolidated Financial Statements

(Unaudited)

Note 1 - The Company and Basis of Presentation

Business Overview

Where Food Comes From, Inc. is a Colorado corporation based in Castle Rock, Colorado (“WFCF”, the “Company,” “our,” “we,” or “us”). We are an independent, third-party food verification company conducting both on-site and desk audits to verify that claims being made about livestock, food, other high-value specialty crops and agricultural products 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. We strive to ensure that everyone involved in the food business - from growers and farmers to retailers and shoppers – can count on WFCF to provide authentic and transparent information about the food we eat and how, where, and by whom it is produced.

We also provide sustainability programs, compliance management and farming information management solutions to drive sustainable value creation. We employ a software-as-a-service (“SaaS”) revenue model that bundles annual software licenses with ongoing software enhancements and upgrades and a wide range of professional services that generate incremental revenue specific to the food and agricultural industry. 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.

Most of our customers are located throughout the United States.

Basis of Presentation

Our unaudited consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”) and include the results of operations, financial position and cash flows of Where Food Comes From, Inc. and its subsidiaries, International Certification Services, Inc. (“ICS”), Validus Verifications Services, LLC (“Validus”), Sterling Solutions (“Sterling”), SureHarvest Services, Inc. (“SureHarvest”), A Bee Organic, Sow Organic and JVF Consulting (collectively referred to as “we,” “us,” and “our” throughout this Form 10-Q). The preparation of financial statements in conformity with GAAP requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues, costs and expenses during the reporting period. All significant intercompany transactions and amounts have been eliminated. The results of businesses acquired are included in the consolidated financial statements from the date of the acquisition. Actual results could differ from the estimates.

The consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) and should be read in conjunction with our audited financial statements and footnotes thereto for the year ended December 31, 2018, included in our Form 10-K filed on March 29, 2019. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been omitted pursuant to such rules and regulations. However, we believe that the disclosures are adequate to make the information presented not misleading. Certain prior year amounts have been reclassified to conform to current year presentation. Net income and shareholders’ equity were not affected by these reclassifications. The financial statements reflect all adjustments (consisting primarily of normal recurring adjustments) that are, in the opinion of management, necessary for a fair presentation of our financial position and results of operations. The consolidated operating results for the three and nine months ended September 30, 2019 are not necessarily indicative of the results to be expected for any other interim period of any future year.

Where Food Comes From, Inc.

Notes to the Consolidated Financial Statements

(Unaudited)

Seasonality

Our business is subject to seasonal fluctuations. Significant portions of our verification and certification service revenue are typically realized during late May through early October when the calf marketings and the growing seasons are at their peak. Because of the seasonality of the business and our industry, results for any quarter are not necessarily indicative of the results that may be achieved for any other quarter or for the full fiscal year.

Recent Accounting Pronouncements

The Financial Accounting Standards Board (FASB) Accounting Standards Codification is the sole source of authoritative GAAP other than SEC issued rules and regulations that apply only to SEC registrants. The FASB issues an Accounting Standards Update (ASU) to communicate changes to the codification. The Company considers the applicability and impact of all ASU’s. ASU’s not listed below were assessed and determined to be either not applicable or are not expected to have a material impact on the consolidated financial statements.

Recently Adopted Accounting Pronouncements

In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), which requires lessees to recognize a right-of-use asset and a lease liability for all leases that are not short-term in nature. Accounting for finance leases is substantially unchanged. Topic 842 is effective for fiscal years beginning after December 15, 2018. We adopted the new lease standard as of January 1, 2019 using a modified retrospective transition. Under the effective date method, financial results reported in periods prior to 2019 are unchanged. We also elected the package of practical expedients, which among other things, does not require reassessment of lease classification.

To assist in quantifying the impact on our consolidated financial statements and supplementing our existing disclosures, we designed internal controls over the adoption and implemented a software solution to manage and account for our leases. The adoption had a significant impact on our consolidated balance sheet due to the recognition of approximately $3.90 million of operating lease liabilities with corresponding right-of-use (“ROU”) assets for operating leases of $3.44 million as of January 1, 2019. The difference between the lease liability and the ROU asset primarily represents the existing deferred rent liabilities balances before adoption, resulting from historical straight-lining of operating leases. Balances for deferred rent and lease incentive obligation, which were historically presented separately, were cleared to zero and reclassed to our operating ROU asset.

In September 2018, the FASB issued ASU 2018-07, Compensation-Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting, which simplifies the accounting for share-based payments made to nonemployees so the accounting for such payments is substantially the same as those made to employees. Under this ASU, share based awards to nonemployees will be measured at fair value on the grant date of the awards, entities will need to assess the probability of satisfying performance conditions if any are present, and awards will continue to be classified according to Accounting Standards Codification (“ASC”) 718 upon vesting which eliminates the need to reassess classification upon vesting, consistent with awards granted to employees. This ASU is effective for fiscal years beginning after December 15, 2018. The Company adopted the new guidance on January 1, 2019 and it did not have any effect on its consolidated financial statements.

Recently Issued Accounting Pronouncements

In September 2016 the FASB issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which adds a new Topic 326 to the Codification and removes the thresholds that companies apply to measure credit losses on financial instruments measured at amortized cost, such as loans, receivables, and held-to-maturity debt securities. Under current U.S. GAAP, companies generally recognize credit losses when it is probable that the loss has been incurred. The revised guidance will remove all recognition thresholds and will require companies to recognize an allowance for credit losses for the difference between the amortized cost basis of a financial instrument and the amount of amortized cost that the company expects to collect over the instrument’s contractual life. The Company is currently required to adopt the new standard in 2023.

Where Food Comes From, Inc.

Notes to the Consolidated Financial Statements

(Unaudited)

In April 2017, the FASB issued ASU 2017-04, “Simplifying the Test for Goodwill Impairment,” which removes Step 2 from the goodwill impairment test. As a result, under the ASU, an entity should perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount and should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. The Company is required to adopt the new standard in 2020.

In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 8420): Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement.” ASU 2018-13 modifies the requirements associated with the hierarchy associated with Level 1, Level 2 and Level 3 fair value measurements. The provisions of this ASU are effective for reporting periods after December 15, 2019; early adoption is permitted. We are currently evaluating the effect that this ASU will have on our consolidated financial statements.

In August 2018 the FASB issued ASU 2018-15, Intangibles - Goodwill and Other - Internal Use Software - Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract, which amends the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract to align with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. The update is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted. The company does not expect the new guidance to have an impact on its consolidated financial statements.

Note 2 – Business Acquisitions

Sow Organic Acquisition

On May 16, 2018, we acquired substantially all of the assets of Sow Organic for $450,000 in cash and 217,654 shares of common stock of WFCF valued at approximately $433,100. We believe the transaction further diversifies our offerings by adding complementary solutions and services available to new and existing customers. Sow Organic’s software as a service (SaaS) model allows organic certification bodies to automate and accelerate new customer onboarding by converting traditional paper-based processes to digital format, resulting in lower costs, improved workflow management and increased productivity. Sow Organic’s unique design allows certification bodies to digitize any certification scheme. Likewise, the software affords producers and handlers a more efficient way to become certified and to digitally manage their records on an ongoing basis, including completing annual certification requirements fully online. We intend to further develop the organic business opportunity and collaborate on a broader rollout of the solution to other certification markets where the tool is equally suited to improve efficiencies and reduce costs in the certification process. This transaction further strengthens our intellectual property portfolio, which we believe represents a distinct competitive advantage for the Company.

Where Food Comes From, Inc.

Notes to the Consolidated Financial Statements

(Unaudited)

We believe the impacts on proforma revenue and earnings are immaterial. The following table summarizes the final fair values assigned to the assets and liabilities acquired in addition to the excess of the purchase price over the net assets acquired at the acquisition date.

Sow Organic, LLC:	May 16, 2018
Software acquired	$	156,000
Identifiable intangible assets:		—
Tradenames and trademarks		48,000
Non-compete agreements		84,000
Customer relationships		162,000
Goodwill		433,131
Total consideration	$	883,131

Excess attributable to goodwill reflects the excess over the identifiable intangible assets acquired based on the final allocation of the purchase price. Goodwill is primarily attributable to the operational and financial benefits expected to be realized from the acquisition, including cost saving synergies from operating efficiencies, future growth in bundling opportunities across divisions and brands, realized savings from a more sophisticated information technology infrastructure, and strategic advances from expansion of our intellectual property.

JVF Consulting Acquisition

On August 30, 2018, we acquired substantially all of the assets of JVF Consulting, LLC (“Seller” or “JVF”) for $500,000 in cash and 158,437 shares of common stock of WFCF valued at approximately $315,300. We believe the transaction adds value to certain of our existing software solutions which are based on intellectual property built and owned by the Seller. JVF is currently the largest technology provider to our SureHarvest division. With this acquisition, WFCF controls the intellectual property associated with its current Software as a Service (SaaS) offerings. Additionally, WFCF employed three of the Seller’s employees who enhance our ability to address new markets and services with our SaaS Solutions.

JVF Consulting, LLC:	August 30, 2018
Software acquired	$	207,000
Identifiable intangible assets:
Tradenames and trademarks		87,000
Non-compete agreements		37,000
Customer relationships		104,000
Goodwill		380,290
Total consideration	$	815,290

Where Food Comes From, Inc.

Notes to the Consolidated Financial Statements

(Unaudited)

Note 3 – Basic and Diluted Net Income per Share

Basic net income per share was computed by dividing income available to common shareholders by the weighted average number of common shares outstanding during the period. Diluted net income per share is based on the assumption that all dilutive convertible shares and stock options were converted or exercised. Dilution is computed by applying the treasury stock method. Under this method, options and restricted stock awards are assumed to be exercised at the beginning of the period (or at the time of issuance, if later), and as if funds obtained thereby were used to purchase common stock at the average market price during the period.

The following is a reconciliation of the share data used in the basic and diluted income per share computations:

	Three months ended September 30,				Nine months ended September 30,
	2019		2018		2019		2018
Basic:
Weighted average shares outstanding		24,791,534		24,900,919		24,879,556		24,756,262

Diluted:
Weighted average shares outstanding		24,791,534		24,900,919		24,879,556		24,756,262
Weighted average effects of dilutive securities		180,091		173,558		182,793		182,437
Total		24,971,625		25,074,477		25,062,349		24,938,699

Antidilutive securities:		283,459		202,750		283,459		202,750

The effect of the inclusion of the antidilutive shares would have resulted in an increase in earnings per share. Accordingly, the weighted average shares outstanding have not been adjusted for antidilutive shares.

Note 4 - Investment in Progressive Beef, LLC

On August 9, 2018, the Company purchased a ten percent membership interest in Progressive Beef, LLC (“Progressive Beef”) for an aggregate purchase price of approximately $991,000. The purchase price was payable in cash of $900,000 and 50,340 shares of common stock of WFCF valued at approximately $91,100 based upon the closing price of our stock on August 9, 2018, of $1.81 per share. Where Food Comes From is the primary certifier for Progressive Beef. For the three months ended September 30, 2019, the Company received dividend income from Progressive Beef of $30,000 representing a distribution of their earnings. For the nine months ended September 30, 2019, the Company received dividend income totaling $90,000. The income is reflected within the “other (expense) income” section of the Company’s Consolidated Statement of Income for the three and nine months ended September 30, 2019. The investment is accounted for as a financial instrument under ASC 321 and the Company has elected to apply the practical expedient to value the investment at cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or similar investment of the same issuer. The Company completed a qualitative assessment and determined that there were no impairment indicators as of September 30, 2019.

Where Food Comes From, Inc.

Notes to the Consolidated Financial Statements

(Unaudited)

Note 5 – Intangible and Other Assets

The following table summarizes our intangible and other assets:

	September 30,		December 31,		Estimated
	2019		2018		Useful Life
Intangible assets subject to amortization:
Tradenames and trademarks	$	417,307	$	417,307	2.5 - 8.0 years
Accreditations		85,395		85,395	5.0 years
Customer relationships		3,350,551		3,350,551	3.0 - 15.0 years
Patents		970,100		970,100	4.0 years
Non-compete agreements		121,000		121,000	5.0 years
		4,944,353		4,944,353
Less accumulated amortization		2,031,882		1,577,558
		2,912,471		3,366,795
Tradenames/trademarks (not subject to amortization)		465,000		465,000
		3,377,471		3,831,795
Other assets		20,326		20,326
Intangible and other assets:	$	3,397,797	$	3,852,121

Note 6 – Accrued Expenses and Other Current Liabilities

The following table summarizes our accrued expenses and other current liabilities as of:

	September 30,		December 31,
	2019		2018
Income and sales taxes payable	$	36,616	$	19,978
Payroll related accruals		814,184		147,798
Customer deposits		113,279		72,982
Professional fees and other expenses		169,515		251,843
	$	1,133,594	$	492,601

Note 7 – Notes Payable

Notes Payable consist of the following:

	September 30,			December 31,
	2019			2018

Vehicle note	$	35,655		$	42,393
Less current portion of notes payable and other long-term debt		(10,689	)		(10,173	)
Notes payable and other long-term debt	$	24,966		$	32,220

Where Food Comes From, Inc.

Notes to the Consolidated Financial Statements

(Unaudited)

In September 2017, we entered into a note payable of $54,165 for the purchase of a vehicle. Interest and principal payments are due in equal monthly installments of $1,087 over five years beginning October 2017. This note bears an interest rate of 7.44% per annum and is fully secured by the vehicle.

Unison Revolving Line of Credit

The Company has a revolving line of credit (“LOC”) agreement which matures April 12, 2020. The LOC provides for $75,080 in working capital. The interest rate is at the Wall Street Journal prime rate plus 1.50% and is adjusted daily. Principal and interest are payable upon demand, but if demand is not made, then annual payments of accrued interest only are due, with the principal balance due on maturity. As of September 30, 2019 and December 31, 2018, the effective interest rate was 6.5% and 7.0%, respectively. The LOC is collateralized by all the business assets of ICS. As of September 30, 2019, and December 31, 2018, there were no amounts outstanding under this LOC.

Note 8 – Stock-Based Compensation

In addition to cash compensation, the Company may compensate certain service providers, including employees, directors, consultants, and other advisors, with equity-based compensation in the form of stock options and restricted stock awards. The Company recognizes all equity-based compensation as stock-based compensation expense based on the fair value of the compensation measured at the grant date. For stock options, fair value is calculated at the date of grant using the Black-Scholes-Merton option pricing model. For restricted stock awards, fair value is the closing stock price for the Company’s common stock on the grant date. The expense is recognized over the vesting period of the grant. For the periods presented, all stock-based compensation expense was classified as a component within selling, general and administrative expense in the Company’s consolidated statements of operations.

The amount of stock-based compensation expense is as follows:

	Three months ended September 30,				Nine months ended September 30,
	2019		2018		2019		2018
Stock options	$	33,975	$	28,445	$	113,857	$	64,820
Restricted stock awards		2,697		16,773		14,613		60,419
Total	$	36,672	$	45,218	$	128,470	$	125,239

During three months ended March 31, 2018, the Company awarded stock options to purchase 25,000 shares of the Company’s common stock at an exercise price of $2.55 per share to one of our business consultants. During the three months ended September 30, 2019, the Company awarded stock options to purchase 10,000 shares of the Company’s common stock at an exercise price of $1.71 per share to the members on the Company’s Board of Directors. No other stock options were awarded during the nine months ended September 30, 2019.

Where Food Comes From, Inc.

Notes to the Consolidated Financial Statements

(Unaudited)

The Company estimated the fair value of stock options using the Black-Scholes-Merton option pricing model with the following assumptions:

	Nine months ended September 30,
	2019		2018
Number of options awarded to purchase common shares		10,000		105,750
Risk-free interest rate		1.50%		2.6% - 2.8%
Expected volatility		100.3%		149.3 - 154.3%
Assumed dividend yield		N/A		N/A
Expected life of options from the date of grant		9.8 years		9.8 years

The estimated unrecognized compensation cost from unvested awards which will be recognized ratably over the remaining vesting phase is as follows:

Years ended December 31st:	Unvested stock options		Unvested restricted stock awards		Total unrecognized compensation expense
2019 (remaining three months)		36,909		1,061		37,970
2020		113,378		4,251		117,629
2021		70,896		706		71,602
2022		3,722		—		3,722
	$	224,905	$	6,018	$	230,923

Equity Incentive Plans

Our 2016 Equity Incentive Plan (the “Equity Incentive Plan”) provides for the issuance of stock-based awards to employees, officers, directors and consultants. The Plan permits the granting of stock awards and stock options. The vesting of stock-based awards is generally subject to the passage of time and continued employment through the vesting period.

Stock Option Activity

Stock option activity under our Equity Incentive Plan is summarized as follows:

								Weighted avg.
				Weighted avg.		Weighted avg.		remaining
	Number of			exercise price		grant date fair		contractual life		Aggregate
	awards			per share		value per share		(in years)		intrinsic value

Outstanding, December 31, 2018		434,451		$	1.49	$	1.47		6.91	$	230,039
Granted		10,000		$	1.53	$	1.71		10.00	$	—
Exercised		—		$	—	$	—		—	$	—
Expired/Forfeited		(7,325	)	$	1.83	$	1.86		—	$	—
Outstanding, September 30, 2019		437,126		$	1.46	$	1.49		6.23	$	148,775
Exercisable, September 30, 2019		256,919		$	1.21	$	1.22		4.43	$	148,775
Unvested, September 30, 2019		180,207		$	1.81	$	1.88		8.78	$	—

Where Food Comes From, Inc.

Notes to the Consolidated Financial Statements

(Unaudited)

The aggregate intrinsic value represents the total pre-tax intrinsic value (the aggregate difference between the closing price of our common stock on September 30, 2019 and the exercise price for the in-the-money options) that would have been received by the option holders if all the in-the-money options had been exercised on September 30, 2019.

Restricted Stock Activity

Restricted stock activity under our Equity Incentive Plan is summarized as follows:

				Weighted avg.
	Number of			grant date
	options			fair value
Non-vested restricted shares, December 31, 2018		30,000		$	2.38
Granted		—		$	—
Vested		(25,000	)	$	2.35
Forfeited		—		$	—
Non-vested restricted shares, September 30, 2019		5,000		$	2.55

Note 9 – Income Taxes

Deferred tax assets and liabilities have been determined based upon the differences between the financial statement amounts and the tax bases of assets and liabilities as measured by enacted tax rates expected to be in effect when these differences are expected to reverse. In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized.

The Company’s subsidiary, SureHarvest, is a California limited liability company (“LLC”). As an LLC, management believes SureHarvest is not subject to income taxes, and such taxes are the responsibility of the respective members. The Company is not providing for income taxes for the 40% interest owned by unrelated members of SureHarvest.

The provision or benefit for income taxes is recorded at the end of each interim period based on the Company’s best estimate of its effective income tax rate expected to be applicable for the full fiscal year. For the three and nine months ended September 30, 2019 we recorded an income tax expense of approximately $184,000 and $230,100, respectively, compared to income tax expense of $169,000 and $257,000 for the same 2018 periods.

Note 10 - Revenue Recognition

Verification and Certification Segment

We offer a range of products and services to maintain identification, traceability, and verification systems. We conduct both on-site and desk audits to verify that claims being made about livestock, food, other high-value specialty crops and agricultural products are accurate. We generate revenue primarily from the sale of our verification solutions, consulting services and hardware sales. We sell our products and services directly to customers at various levels in the livestock and agricultural supply chains.

Verification and certification service revenue primarily consists of fees charged for verification audits and other verification services that the Company performs for customers.

A more detailed summary of our verification and certification services is included in the subsections below.

Where Food Comes From, Inc.

Notes to the Consolidated Financial Statements

(Unaudited)

Animal Verification and Certification Services

Our animal verification and certification services contracts are generally structured in one of the following ways: (i) we commit to perform the required number of animal audits to verify a customer’s compliance with a standard or claim, or (ii) we commit to perform animal audit services at a fixed price by site or location type as requested by our customer during an annual period. These contract structures are discussed in more detail in the subsections below.

Contract to Provide Required Number of Animal Audit Services

For certain of our animal verification and certification services, we commit to perform the required number of location or site audits within our customer’s supply chain to verify customer’s compliance with a contractually-specified standard or claim. Each location or site audit is typically very short-term in nature, with a typical duration of one to two weeks. Upon completion of an audit, we provide the customer with an audit verification report for the specific site or location that was audited. Payment is made by customer upon completion of each site or location audit.

We generally enter into revenue contracts with a one-year term. Our customers generally have the right to terminate the contract without prejudice with thirty days’ written notice. We have determined that, as a result of the termination provisions present in these contracts, the accounting contract term is a thirty-day period, with each thirty-day time increment representing a separate accounting contract under ASC 606.

Furthermore, we have concluded that there is a single performance obligation that is a series comprised of each distinct location or site audit performed. Our customers are charged a standard daily rate for the provision of an audit based on the scale of site operations and geographical location. Consideration attributable to each audit within the series is variable, as the number of days required to complete each audit is not known until performance of that audit occurs. We have concluded that it is appropriate to allocate variable consideration (that is, the number of days required to complete an audit) to each audit within the series. This is because the consideration that we earn for each audit relates specifically to our efforts to transfer to our customer that discrete audit, and the resulting audit opinion or verification report, for that specified site or location, and this allocation is consistent with the allocation objective as defined in ASC 606. As a result, instances in which the Company evaluates and applies the constraint on variable consideration are immaterial.

We further concluded that over-time recognition is appropriate because: (i) our performance of audits does not create an asset with an alternative use, as the audit and related verification report relates to facts and circumstances that are specific to each customer site or location (that is, there is a practical limitation on our ability to readily direct the asset to another customer) and (ii) we have an enforceable right to payment, inclusive of a reasonable profit, for performance completed to date. We utilize an input method to measure over-time progress of each audit within the series based on the number of audit days performed.

We do, however, note that there are instances in which we only have an enforceable right to payment upon completion of an audit, and thus, over-time recognition is not permitted. For these contracts, revenue is recognized at the point in time at which an audit is completed. This does not result in a significant difference in the timing of revenue recognition (as compared to those audits that are recognized over time) due to the very short-term duration of an audit.

Our customers may also have the option to purchase incremental review services (for example, an investigative audit or video review services) that are unrelated to the audit services to verify compliance with a specified standard or claim. The incremental review services are also typically very short-term in nature (that is, one to two weeks). We have concluded that these optional purchases do not reflect a material right under ASC 606 because the incremental review services are performed at standard pricing that would be charged to other similarly situated customers. Upon customer request for an incremental review service, we believe that our customer has made a discrete purchasing decision that should be treated as a separate accounting contract under ASC 606.

Where Food Comes From, Inc.

Notes to the Consolidated Financial Statements

(Unaudited)

We charge a fixed fee for the incremental review service, and thus, upon customer request, we are entitled to fixed consideration for that service under ASC 606. We concluded that over-time revenue recognition is appropriate for incremental review services because: (i) our performance of incremental review services does not create an asset with an alternative use because that review service, and the associated customer deliverable, relates to facts and circumstances that are specific to each customer site or location (that is, there is a practical limitation on our ability to readily direct the asset to another customer) and (ii) we have an enforceable right to payment, inclusive of a reasonable profit, for performance completed to date on incremental review services. We utilize a time-based input method to measure progress toward complete satisfaction of an incremental review service, which is based on the number of hours performed on the incremental review service relative to the total number of hours required to complete that review service. As previously mentioned, our incremental review services are typically completed within one to two weeks of a customer request.

Contract to Provide Animal Audit Services at Customer Request

Other animal verification and certification services contracts are structured such that we commit to perform audit services at a fixed price by site or location type as requested by our customer during an annual period. Performance of an audit typically occurs within a one to two-week period. We invoice our customer upon completion of an audit, and payment is due from customer within thirty days or less of receipt of invoice.

Under this contract structure, the customer is, in effect, provided a pricing list for animal audit services, and pricing is effective over a one-year period. We have concluded that enforceable rights and obligations do not arise until a customer actually engages us to perform an audit service documented in the pricing list; therefore, each customer request represents a purchasing decision that is a separate accounting contract under ASC 606.

We note that the termination provisions specified in our pricing lists vary. In certain instances, a customer may only have the right to terminate in the event of non-performance. Alternatively, in other contracts, a customer may have the right to terminate without prejudice at any time or with thirty days’ written notice. However, regardless of the termination provision specified, we have concluded that the accounting contract term is equal to the duration of the requested audit service (that is, the termination provisions generally do not affect the accounting contract term for each requested audit service).

Upon a customer’s request for an audit service, consideration is fixed, as we charge the customer a fixed fee by audit type over the annual period per the pricing list.

We concluded that over-time revenue recognition is appropriate for a requested audit service because: (i) our performance of the requested audit service does not create an asset with an alternative use as that audit, and the associated audit report, relate to facts and circumstances that are specific to each customer site or location (that is, there is a practical limitation on our ability to readily direct the asset to another customer) and (ii) we have an enforceable right to payment, inclusive of a reasonable profit, for performance completed to date on a requested audit. A time-based input method is utilized to measure progress toward complete satisfaction of an audit based on the number of hours performed on that audit relative to the total number of hours expected to be required to complete the audit. As previously mentioned, our audit services are typically completed within one to two weeks of a customer request.

Where Food Comes From, Inc.

Notes to the Consolidated Financial Statements

(Unaudited)

Other Considerations for Animal Certification and Verification Services

In connection with the provision of on-site audits related to animal certification and verification services, reimbursable expenses are incurred and billed to customers, and such amounts are recognized on a gross basis as both revenue and cost of revenue.

Any amounts collected on behalf of a third-party and remitted in full to that third-party are excluded from the transaction price and, thus, revenue.

Crop and Other Processed Product Verification and Certification Services

Third-party crop and other processed product audits are generally structured such that we commit to perform an independent audit to verify that food producers and/or farmers comply with certain standards. We generally provide verification services related to organic, Non-GMO and gluten-free standards. Depending on the crop or product type, verification audit activities may take two months to one year to complete. During this assessment period, various integrated audit activities and/or input reviews are performed in accordance with the regulations specified by the relevant standard.

The fee structure is such that customers pay an annual assessment fee for a crop or other processed product to verify compliance with the specified standard. This fee is payable upfront on a nonrefundable basis. Our customers can typically terminate a crop or other processed product audit at any time without prejudice. However, given the nonrefundable upfront payment structure for the annual assessment service, we have concluded that the contract term is one year. We record the upfront payment made by the customer for the annual assessment service as deferred revenue.

The audit activities and input reviews required in the provision of an annual assessment are not distinct under ASC 606, and consequently, we account for an annual assessment as a single integrated performance obligation.

For certain of our third-party crop and other processed product audits, the annual assessment fee is fixed for the annual period. In other scenarios, the annual assessment fee may be variable due to increased review activities required for incremental inputs to a crop or processed product identified through the assessment process. At the time that an incremental input is identified, which generally occurs in the early stages of an annual assessment, the incremental consideration for the provision of review services related to that incremental input also becomes known.

We allocate the transaction price derived from the annual assessment fee to the single integrated performance obligation for that annual assessment. Revenue related to the annual assessment is recognized over time in accordance with ASC 606. This is because the annual assessment service does not create an asset with an alternative use, as it relates to facts and circumstances that are specific to a customer’s crop or processed product. Further, we have an enforceable right to payment for performance completed to date on the annual assessment due to the nonrefundable upfront payment made by customer. We utilize an input method to measure progress toward satisfaction of the annual assessment based on the percentage of activities/phases or input reviews completed under the annual assessment.

As it relates to the upfront payment for the annual assessment, we have utilized the practical expedient that exempts us from adjusting consideration for the effects of a significant financing component when we expect that the period between customer payment and the provision of the related service is one year or less.

In certain contracts, an independent third-party inspection may be required for a site or location in our customer’s supply chain in accordance with the regulations for a specified standard. An inspection is performed by an independent third-party inspector, and the customer is charged an hourly rate for these inspection services.

Where Food Comes From, Inc.

Notes to the Consolidated Financial Statements

(Unaudited)

Under this scenario, a separate accounting contract arises upon initiation and performance of an inspection, and we typically invoice our customer for the inspection upon completion of the inspection service. Given that the customer has the ability to terminate at any time without prejudice, we have concluded that the contract term for each inspection ends as control of an inspection service transfers. Inspections are generally short-term in nature with a term ranging from a few days to two weeks.

We have further determined that inspections are distinct from an annual assessment. Consideration attributable to an inspection is variable, as the inspector is only able to provide a high-level estimate of the cost of the inspection based on the inspector’s hourly rate until the inspector is at the relevant producer/supplier site to determine the time and level of effort required to complete the inspection. Given the very short-term nature of an inspection, variability related to an inspection generally resolves itself within a reporting period. However, we are typically required by certain regulations to provide an inspection cost estimate to our customer, and, if required, we utilize that estimate as our estimate of variable consideration. The cost estimate is generally derived from the cost to perform the prior-year inspection for that specific customer site or location or, when required, the historical cost to provide an inspection for a comparable site or location. In our experience, the historical cost of inspections has been predictive of the future cost of an inspection.

Other Considerations for Crop and Other Processed Product Verification Services

Reimbursable expenses incurred in the provision of an annual assessment or required inspection are billed to our customers, and such amounts are recognized on a gross basis as both revenue and cost of revenue.

In addition, any amounts collected on behalf of a third-party and remitted in full to that third-party are excluded from the transaction price and, thus, revenue.

Product Sales

Product sales are primarily generated from the sale of cattle identification ear tags. Each customer purchase request represents a purchasing decision made by customer. As such, enforceable rights and obligations (and, thus, a separate accounting contract under ASC 606) arise at the time a customer submits its purchase request to us. At the time of request, we are entitled to fixed consideration, as the sales quantity and related price of the product is known. All of our customers are charged the same fixed price per tag.

Revenue for product sales is recognized upon delivery of the goods to customer, at which point title, custody and risk of loss transfer to the customer. We typically deliver product to the customer within a few days of customer’s sales request. At the time of delivery, we invoice our customer for the related product sales and record invoiced amounts to accounts receivable. Payment is typically due by customer upon receipt of invoice.

In relation to our product sales, the sales taxes collected from customers and remitted to government authorities are excluded from revenue.

Additionally, we do not typically provide right of return or warranty on product sales.

Software Sales and Related Consulting Segment

We predominately offer software products via a SaaS model, which is an annual subscription-based model. Support services are generally included in the subscription. We also provide web-hosting services on an annual basis to all of our customers in conjunction with their software subscription. Customers have the ability to terminate without prejudice upon thirty days’ written notice; however, the subscription fee, inclusive of maintenance and support services, and the web-hosting fee are paid upfront by the customer on a nonrefundable basis. Consequently, we have concluded that the contract term for the annual software subscription and web-hosting services is one year.

Where Food Comes From, Inc.

Notes to the Consolidated Financial Statements

(Unaudited)

We have determined that a software license subscription and the related hosting service should be accounted for as a service transaction, as we provide the functionality of our software through the hosting arrangement. The SaaS arrangement provides customers with unlimited access to our software and, thus, is accounted for as a series of distinct daily service periods that provide substantially the same service (that is, continuous access to the hosted software) each day during the annual contract term. Further, the provision of basic technical support services also represents a stand-ready obligation that is a series of distinct daily service periods that provide substantially the same service (that is, access to our technical support infrastructure) during the annual contract term. Because the basic technical support services and SaaS each represent performance obligations that are a series of distinct daily service periods, we have elected to combine these performance obligations.

We are entitled to fixed consideration for the software license subscription, inclusive of support services, and the related hosting service. The software license subscription and hosting fees in our contracts represent the standalone selling price for that related service. This is because the fees charged for the software license subscription and hosting service represent the software license subscription and hosting service fees that are charged to other customers with a similar level of data loaded into the software (regardless of whether that customer contracts for professional services). Accordingly, the software license subscription and hosting fees are allocated to the combined SaaS performance obligation.

We recognize revenue related to the SaaS arrangement over time because a customer simultaneously receives and consumes the benefit from the provision of access to the hosted software over the annual subscription period. Accordingly, we utilize a time-based output measure of progress that results in a straight-line attribution of revenue. That is, revenue related to the combined SaaS obligation should be recognized daily on a straight-line basis over the one-year subscription term, as this reflects the direct measurement of value to a customer of the provision of access to the software via hosting each day.

As it relates to the upfront payment for the software subscription and hosting service, we have utilized the practical expedient that exempts us from adjusting consideration for the effects of a significant financing component when we expect that the period between customer payment and the provision of the related service is one year or less.

In addition, we record the upfront payment made by customer for the annual assessment service as deferred revenue.

In some of our SaaS contracts, we also provide software-related consulting services to our customers during an annual software subscription period. Consulting services fees are derived from a standard rate card by employee level, and we invoice for consulting services monthly on a time-incurred basis. Due to the termination provisions present in our SaaS contracts, our customers have an in-substance renewal decision each month for further consulting services (that is, via their decision not to terminate the contract each month). Accordingly, the contract term for consulting services is on a month-to-month basis within the annual subscription period.

We have concluded that consulting services are distinct from the SaaS arrangement. To the extent that consulting services result in a software enhancement or new functionality, we have determined that those consulting services are still distinct because added features typically provide new, discrete capabilities with independent value to a customer and a customer accesses the SaaS in a single-tenant architecture. Further, additional features and functionality are often made available to a customer substantially after the “go-live” date of the software (via the hosting service). As a result, our software-related consulting services represent distinct performance obligations.

We recognize revenue over time in accordance with ASC 606. This is because our performance does not create an asset with an alternative use, as consulting services, and, if applicable, any related software enhancements, are highly tailored to the farming industry specific to the given customer, and we have an enforceable right to payment, inclusive of profit, for performance completed to date. As a result, for our consulting services, we have elected to utilize the practical expedient that allows us to recognize revenue in the amount to which we have a right to invoice, as we believe that we have a right to consideration from a customer in an amount that corresponds directly with the value to the customer of our performance completed to date for the provision of consulting services.

Where Food Comes From, Inc.

Notes to the Consolidated Financial Statements

(Unaudited)

Principal versus Agent Considerations

Under certain of our verification and certification service contracts, a third-party inspector may be required to perform an independent inspection of a site or location within our customer’s supply chain in accordance with regulations of a certain standard or claim. In this scenario, we have concluded that we are the principal in the provision of inspection services to our customer, as we control the inspection service, and the related inspection report, before it is transferred to our customer. In accordance with this conclusion, we present revenue related to inspections on a gross basis, with customer payment for an inspection presented as revenue and the inspection cost paid to the third-party inspector presented as an expense.

In addition, we utilize a third-party to provide web-hosting services in the provision of our SaaS arrangements. In this scenario, we are primarily responsible for fulfilling the promise to provide web-hosting services to the customer, and we establish the fee that the customer is charged for the web-hosting services. Consequently, we have also concluded that we are the principal in the provision of web-hosting services under our SaaS arrangements. As such, we present revenue on a gross basis, with consideration received from our customer for the web-hosting service recorded as revenue and the cost paid to the third-party to provide those web-hosting services recorded as an expense.

Disaggregation of Revenue

We have identified four material revenue categories in our business: (i) verification and certification service revenue, (ii) product sales, (iii) software license, maintenance and support services revenue and (iv) software-related consulting service revenue.

Revenue attributable to each of our identified revenue categories is disaggregated in the table below.

	Three months ended September 30, 2019									Three months ended September 30, 2018
	Verification and Certification Segment		Software Sales and Related Consulting Segment		Eliminations and Other			Consolidated Totals		Verification and Certification Segment		Software Sales and Related Consulting Segment		Eliminations and Other		Consolidated Totals
Revenues:
Verification and certification service revenue	$	4,759,383	$	—	$	—		$	4,759,383	$	3,906,996	$	—	$	—	$	3,906,996
Product sales		1,086,272		—		—			1,086,272		783,303		—		—		783,303
Software license, maintenance and support services revenue		—		286,816		(60,000	)		226,816		—		208,541		—		208,541
Software-related consulting service revenue		—		196,723		(36,712	)		160,011		—		226,538		—		226,538
Total revenues	$	5,845,655	$	483,539	$	(96,712	)	$	6,232,482	$	4,690,299	$	435,079	$	—	$	5,125,378

	Nine months ended September 30, 2019									Nine months ended September 30, 2018
	Verification and Certification Segment		Software Sales and Related Consulting Segment		Eliminations and Other			Consolidated Totals		Verification and Certification Segment		Software Sales and Related Consulting Segment		Eliminations and Other		Consolidated Totals
Revenues:
Verification and certification service revenue	$	11,314,318	$	—	$	—		$	11,314,318	$	10,210,947	$	—	$	—	$	10,210,947
Product sales		2,362,663		—		—			2,362,663		1,633,509		—		—		1,633,509
Software license, maintenance and support services revenue		—		969,056		(147,277	)		821,779		—		759,301		—		759,301
Software-related consulting service revenue		—		660,755		(84,234	)		576,521		—		580,731		—		580,731
Total revenues	$	13,676,981	$	1,629,811	$	(231,511	)	$	15,075,281	$	11,844,456	$	1,340,032	$	—	$	13,184,488

Where Food Comes From, Inc.

Notes to the Consolidated Financial Statements

(Unaudited)

Transaction Price Allocated to Remaining Performance Obligations

We generally enter into revenue contracts with a one-year term. In certain instances, we have concluded that our contract term is less than one year because: (i) the termination provisions present in the contract impact the contract term under ASC 606 or (ii) a contract under ASC 606 arises at the time our customer requests the provision of a good or service that is delivered within or over a few days to a couple of weeks. As a result of our short-term contract structures, we have utilized the practical expedient in ASC 606-10-50-14 that exempts us from disclosure of the transaction price allocated to remaining performance obligations if the performance obligation is part of a contract that has an original expected duration of one year or less.

Contract Balances

Under our animal verification and certification services contracts, we invoice customers once the performance obligation for the provision of a site or location audit has been satisfied, at which point payment is unconditional. In addition, any product sales are invoiced upon delivery to the customer, at which point payment is also unconditional. Accordingly, our animal verification and certification services contracts do not give rise to a contract asset under ASC 606; rather, invoiced amounts reflect accounts receivable.

Under our crop and other processed product verification and certification services, a nonrefundable payment for an annual assessment of compliance with a standard is typically made by our customers upfront upon contract execution. That is, payment is made in advance of the provision of annual assessment services. Accordingly, we recognize deferred revenue upon receipt of the upfront payment from our customers for crop and other processed product audit assessment services. Revenue is subsequently recognized, and the related deferred revenue is reduced, over the one-year period during which assessment services are provided to the customer using the over-time measure of progress selected in accordance with ASC 606. To the extent that an inspection is required during the annual assessment period, we invoice customers once the performance obligation for the inspection has been satisfied, at which point payment is unconditional. As such, inspection services give rise to accounts receivable.

Our software subscriptions, web-hosting, and support services are paid by our customers upfront on a nonrefundable basis. That is, payment is made in advance of the provision of these services to our customers. As a result, we recognize deferred revenue upon receipt of the upfront payment from our customers for software subscriptions, web-hosting and maintenance and support services. Revenue is subsequently recognized, and the related deferred revenue is reduced, on a straight-line basis during the annual contract term that these stand-ready services are provided to customer.

Software-related consulting services are invoiced monthly on a time-incurred basis, at which point we have an enforceable right to payment for those services. Because payment is unconditional upon invoicing, our software-related consulting services are reflected as accounts receivable.

As of September 30, 2019, and December 31, 2018, accounts receivable from contracts with customers, net of allowance for doubtful accounts, were approximately $2,972,600 and $2,205,200, respectively.

As of September 30, 2019, and December 31, 2018, deposits and deferred revenue from contracts with customers were approximately $1,065,100 and $727,900, respectively. The balance of the contract liabilities at September 30, 2019 and December 31, 2018 are expected to be recognized as revenue within one year or less of the invoice date.

Where Food Comes From, Inc.

Notes to the Consolidated Financial Statements

(Unaudited)

The following table reflects the changes in our contract liabilities during the three month period ended September 30, 2019:

Deferred revenue:
Unearned revenue June 30, 2019	$	1,143,158
Unearned billings		434,005
Revenue recognized		(625,337	)
Unearned revenue September 30, 2019	$	951,826

The following table reflects the changes in our contract liabilities during the nine month period ended September 30, 2019:

Deferred revenue:
Unearned revenue January 1, 2019	$	654,872
Unearned billings		2,187,176
Revenue recognized		(1,890,222	)
Unearned revenue September 30, 2019	$	951,826

Costs to fulfill a contract

Prior to August 2018, we incurred a fixed cost, payable to JVF Consulting, LLC, a third-party provider, to perform set-up activities for new (or first-year) customers that contract for our software subscription and hosting services. As previously discussed in Note 2, on August 30, 2018, we acquired JVF Consulting, which included three key employees. We concluded that those set-up activities performed by JVF did not transfer a good or service as defined in ASC 606 to our customers.

We capitalize fixed set-up costs as an asset on the following basis: (i) the fixed set-up costs incurred relate specifically to a customer contract for our software subscription and hosting service, (ii) the fixed set-up costs incurred are expected to be recovered via provision of the software subscription and hosting service to that customer and (iii) the set-up costs generate or enhance resources of the Company by permitting us to provide software subscription and hosting services to our customer, which, in turn, generates revenues.

Capitalized costs related to those set-up activities are amortized on a straight-line basis over the one-year license subscription and hosting period.

The ending balance at September 30, 2019 and December 31, 2018 of capitalized assets attributable to the set-up costs incurred to fulfill software subscription and hosting contracts was not material. No set-up costs related to our software subscription and hosting services were incurred for the three months ended September 30, 2019 or the year-ended December 31, 2018.

In addition, amortization of capitalized set-up costs for the three months ended September 30, 2019 or the year ended December 31, 2018 was not material, and no impairment loss was incurred related to capitalized set-up costs.

Commissions and other costs to obtain a contract are expensed as incurred as our contracts are typically completed in one year or less, and where applicable, we generally would incur these costs whether or not we ultimately obtain the contract.

Where Food Comes From, Inc.

Notes to the Consolidated Financial Statements

(Unaudited)

Note 11 – Leases

We adopted ASU 2016-02: Leases (Topic 842) as of January 1, 2019. We determine if an arrangement is a lease at inception. Operating leases are included in the right-of-use (ROU) assets, current operating lease liabilities and noncurrent operating lease liabilities in our consolidated balance sheet. Finance leases are included in property and equipment, current finance lease obligations and long-term finance lease obligations in our consolidated balance sheet.

ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. ROU assets and liabilities are recognized at the lease commencement date based on the estimated present value of lease payments over the lease term.

As the discount rates in the Company’s lease are not implicit, the Company estimated the incremental borrowing rate based on the rate of interest the Company would have to pay to borrow a similar amount on a collateralized basis over a similar term.

Our lease term includes options to extend the lease when it is reasonably certain that we will exercise that option. Leases with a term of 12 months or less are not recorded on the balance sheet. Our lease agreements do not contain any residual value guarantees.

We have operating and finance leases for corporate offices, other regional offices, and certain equipment. Our leases have remaining lease terms of 1 year to 15 years, some of which include multiple options to extend the leases for up to 5 years each.

The components of lease expense were as follows:

	Three months ended September 30, 2019		Nine months ended September 30, 2019
Operating lease cost	$	115,674	$	353,267
Finance lease cost
Amortization of assets		2,025		6,558
Interest on finance lease obligations		1,763		5,723
Total net lease cost	$	119,462	$	365,548

Included in the table above, is $92,200 and $276,600 for the three and nine months ended September 30, 2019, respectively, of operating lease cost for our corporate headquarters. This space is being leased from The Move, LLC. Our CEO and President, each a related party to WFCF, have a 24.3% jointly-held ownership interest in The Move, LLC.

Rent expense for the three and nine months ended September 30, 2018 was $154,200 and $435,300, respectively.

Where Food Comes From, Inc.

Notes to the Consolidated Financial Statements

(Unaudited)

Supplemental balance sheet information related to leases was as follows:

	September 30, 2019
Operating leases:	Related Party		Other		Total
Right of use asset	$	2,975,520	$	332,869	$	3,308,389

Current operating lease liabilities		153,456		79,447		232,903
Noncurrent operating lease liabilities		3,301,204		286,836		3,588,040
Total operating lease liabilities	$	3,454,660	$	366,283	$	3,820,943

Finance leases:	September 30, 2019
Right of use asset, at cost	$	43,041
Accumulated amortization		(20,086	)
Right of use asset, net	$	22,955

Current obligations of finance leases	$	8,054
Finance leases, net of current obligations		23,798
Total finance lease liabilities	$	31,852

Weighted average remaining lease term (in years):
Operating leases		11.2
Finance leases		3.2

Weighted average discount rate:
Operating leases		5.8	%
Finance leases		20.8	%

Supplemental cash flow and other information related to leases was as follows:

	Nine months ended
	September 30, 2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	319,586
Operating cash flows from finance leases	$	5,723
Financing cash flows from finance leases	$	4,504

Where Food Comes From, Inc.

Notes to the Consolidated Financial Statements

(Unaudited)

Maturities of lease liabilities were as follows:

Years Ending December 31st,	Operating Leases			Finance Leases
2019 (remaining three months)	$	110,773		$	3,705
2020		448,992			13,597
2021		461,657			12,355
2022		465,758			10,050
2023		461,310			4,514
Thereafter		3,308,155			—
Total lease payments		5,256,645			44,221
Less amount representing interest		(1,435,702	)		(12,369	)
Total lease obligations		3,820,943			31,852
Less current portion		(232,903	)		(8,054	)
Long-term lease obligations	$	3,588,040		$	23,798

As previously reported in the 2018 Form 10-K under ASC Topic 840, future minimum lease payments under the Company’s operating lease agreements that had initial or remaining non-cancelable lease terms in excess of one year as of December 31, 2018 were as follows:

Years ended December 31st:	Total
2019	$	420,370
2020		421,590
2021		432,079
2022		447,264
2023		460,682
Thereafter		3,327,705
Total lease commitments	$	5,509,690

Note 12 – Commitments and Contingencies

Legal proceedings

From time to time, we may become involved in various legal actions, administrative proceedings and claims in the ordinary course of business. We generally record losses for claims in excess of the limits of purchased insurance in earnings at the time and to the extent they are probable and estimable. We are not aware of any legal actions currently pending against us.

Where Food Comes From, Inc.

Notes to the Consolidated Financial Statements

(Unaudited)

Contingently Redeemable Non-Controlling Interest

On December 28, 2016, we entered into an Asset Purchase Agreement (the “SureHarvest Purchase Agreement”), by and among the Company, SureHarvest Services LLC (the “Buyer” or “SureHarvest”); and SureHarvest, Inc., a California corporation (the “Seller”). We purchased the business assets of the Seller for total consideration of approximately $2.66 million, comprised of approximately $1,122,000 in cash and 850,852 shares of common stock of WFCF valued at approximately $1,534,900. Additionally, we issued the Seller a 40% membership interest in SureHarvest, with the Company holding a 60% interest.

Following the thirty-nine-month anniversary of the effective date of the SureHarvest Purchase Agreement, the Company shall have the option, but not the obligation, to purchase all the units (the 40% interest) of SureHarvest held by the Seller, and the Seller shall have the option, but not the obligation, to require the Company to purchase all the units of SureHarvest held by the Seller. The purchase price for the units shall be equal to the amount the selling holders of the units would be entitled to receive upon a liquidation of SureHarvest assuming all of the assets of SureHarvest are sold for a purchase price equal to the product of eight and half times trailing twelve-month earnings before income taxes, depreciation and amortization, as defined, subject to an $8 million ceiling.

Because SureHarvest, Inc. at its option, can require the Company to purchase its 40% interest in SureHarvest, the SureHarvest non-controlling interest meets the definition of a contingently redeemable non-controlling interest. Redeemable non-controlling interests are presented at the greater of their carrying amount or redemption value at the end of each reporting period and are shown as a separate caption between liabilities and equity (mezzanine section) in the accompanying consolidated balance sheet.

The table below reflects the activity of the contingently redeemable non-controlling interest:

Balance, December 31, 2018	$	1,449,007
Net loss attributable to non-controlling interest in SureHarvest for the year to date period ended September 30, 2019		(181,829	)
Balance, September 30, 2019	$	1,267,178

Note 13 - Segments

With each acquisition, we assess the need to disclose discrete information related to our operating segments. Because of the similarities of certain of our acquisitions that provide certification and verification services, we aggregate operations into one verification and certification reportable segment. The operating segments included in the aggregated verification and certification segment include IMI Global, ICS, and Validus. The factors considered in determining this aggregated reporting segment include the economic similarity of the businesses, the nature of services provided, production processes, types of customers and distribution methods.

The Company also determined that it has a software sales and related consulting reportable segment. SureHarvest, which includes Sow Organic and JVF Consulting, is the sole operating segment. This segment includes software license, maintenance, support and software-related consulting service revenues.

The Company’s chief operating decision maker (the Company’s CEO) allocates resources and assesses the performance of its operating segments. Segment management makes decisions, measures performance, and manages the business utilizing internal reporting operating segment information. Performance of operating segments are based on net sales, gross profit, selling, general and administrative expenses and most importantly, operating income.

Where Food Comes From, Inc.

Notes to the Consolidated Financial Statements

(Unaudited)

The Company eliminates intercompany transfers between segments for management reporting purposes. The following table shows information for reportable operating segments:

	Three months ended September 30, 2019												Three months ended September 30, 2018
		Verification and Certification Segment			Software Sales and Related Consulting Segment			Eliminations and Other			Consolidated Totals			Verification and Certification Segment			Software Sales and Related Consulting Segment			Eliminations and Other			Consolidated Totals
Assets:
Intangible and other assets, net	$	1,343,955		$	2,053,842		$	—		$	3,397,797		$	2,883,887		$	1,983,577		$	—		$	4,867,464
Goodwill		1,133,122			2,010,612			—			3,143,734			1,840,956			1,372,488			—			3,213,444
Total assets		14,214,110			5,323,783			—			19,537,893			14,274,121			1,229,225			—			15,503,346

Revenues:
Verification and certification service revenue	$	4,759,383		$	—		$	—		$	4,759,383		$	3,906,996		$	—		$	—		$	3,906,996
Product sales		1,086,272			—			—			1,086,272			783,303			—			—			783,303
Software license, maintenance and support services revenue		—			286,816			(60,000	)		226,816			—			208,541			—			208,541
Software-related consulting service revenue		—			196,723			(36,712	)		160,011			—			226,538			—			226,538
Total revenues	$	5,845,655		$	483,539		$	(96,712	)	$	6,232,482		$	4,690,299		$	435,079		$	—		$	5,125,378
Costs of revenues:
Costs of verification and certification services		2,733,350			—			(60,150	)		2,673,200			2,098,462			—			—			2,098,462
Costs of products		696,579			—			—			696,579			489,149			—			—			489,149
Costs of software license, maintenance and support services		—			153,452			—			153,452			—			183,942			—			183,942
Costs of software-related consulting services		—			122,224			—			122,224			—			117,303			—			117,303
Total costs of revenues		3,429,929			275,676			(60,150	)		3,645,455			2,587,611			301,245			—			2,888,856
Gross profit		2,415,726			207,863			(36,562	)		2,587,027			2,102,688			133,834			—			2,236,522
Depreciation & amortization		78,620			178,568			—			257,188			102,944			138,230			—			241,174
Other operating expenses		1,519,708			232,698			(36,562	)		1,715,844			1,442,568			135,277			—			1,577,845
Segment operating (loss)/income	$	817,398		$	(203,403	)	$	—		$	613,995		$	557,176		$	(139,673	)	$	—		$	417,503
Other items to reconcile segment operating income (loss) to net income attributable to WFCF:
Other expense (income)		(29,563	)		(6	)		—			(29,569	)		(102,155	)		—			—			(102,155	)
Income tax (benefit)/expense		—			—			184,001			184,001			—			—			169,000			169,000
Net loss attributable to non-controlling interest		—			81,359			—			81,359			—			26,691			—			26,691
Net (loss)/income attributable to WFCF	$	846,961		$	(122,038	)	$	(184,001	)	$	540,922		$	659,331		$	(112,982	)	$	(169,000	)	$	377,349

	Nine months ended September 30, 2019												Nine months ended September 30, 2018
		Verification and Certification Segment			Software Sales and Related Consulting Segment			Eliminations and Other			Consolidated Totals			Verification and Certification Segment			Software Sales and Related Consulting Segment			Eliminations and Other			Consolidated Totals
Assets:
Intangible and other assets, net	$	1,343,955		$	2,053,842		$	—		$	3,397,797		$	2,883,887		$	1,983,577		$	—		$	4,867,464
Goodwill		1,133,122			2,010,612			—			3,143,734			1,840,956			1,372,488			—			3,213,444
Total assets		14,214,110			5,323,783			—			19,537,893			14,274,121			1,229,225			—			15,503,346

Revenues:
Verification and certification service revenue	$	11,314,318		$	—		$	—		$	11,314,318		$	10,210,947		$	—		$	—		$	10,210,947
Product sales		2,362,663			—			—			2,362,663			1,633,509			—			—			1,633,509
Software license, maintenance and support services revenue		—			969,056			(147,277	)		821,779			—			759,301			—			759,301
Software-related consulting service revenue		—			660,755			(84,234	)		576,521			—			580,731			—			580,731
Total revenues	$	13,676,981		$	1,629,811		$	(231,511	)	$	15,075,281		$	11,844,456		$	1,340,032		$	—		$	13,184,488
Costs of revenues:
Costs of verification and certification services		6,455,687			—			(123,123	)		6,332,564			5,399,626			—			—			5,399,626
Costs of products		1,537,837			—			—			1,537,837			1,035,094			—			—			1,035,094
Costs of software license, maintenance and support services		—			469,065			—			469,065			—			489,887			—			489,887
Costs of software-related consulting services		—			394,660			—			394,660			—			280,310			—			280,310
Total costs of revenues		7,993,524			863,725			(123,123	)		8,734,126			6,434,720			770,197			—			7,204,917
Gross profit		5,683,457			766,086			(108,388	)		6,341,155			5,409,736			569,835			—			5,979,571
Depreciation & amortization		263,209			539,207			—			802,416			328,370			414,410			—			742,780
Other operating expenses		4,229,813			700,718			(108,388	)		4,822,143			4,127,982			423,199			—			4,551,181
Segment operating (loss)/income	$	1,190,435		$	(473,839	)	$	—		$	716,596		$	953,384		$	(267,774	)	$	—		$	685,610
Other items to reconcile segment operating income (loss) to net income attributable to WFCF:
Other expense (income)		(89,538	)		(1,009	)		—			(90,547	)		(108,661	)		860			—			(107,801	)
Income tax (benefit)/expense		—			—			230,090			230,090			—			—			257,000			257,000
Net loss attributable to non-controlling interest		—			181,829			—			181,829			—			53,261			—			53,261
Net (loss)/income attributable to WFCF	$	1,279,973		$	(291,001	)	$	(230,090	)	$	758,882		$	1,062,045		$	(215,373	)	$	(257,000	)	$	589,672

Where Food Comes From, Inc.

Notes to the Consolidated Financial Statements

(Unaudited)

Note 14 – Supplemental Cash Flow Information

	Nine months ended September 30,
	2019		2018
Cash paid during the year:
Interest expense	$	8,768	$	3,755
Income taxes	$	131,268	$	418,965

Non-cash investing and financing activites:
Common stock issued in connection with acquisition of Sow Organic	$	—	$	433,131
Common stock issued in connection with investment in Progressive Beef	$	—	$	91,115
Common Stock issued in connection with acquisition of JVF Consulting	$	—	$	315,291
Equipment acquired under a capital lease	$	—	$	19,809
Lease incentive obligation	$	—	$	230,220

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

General

This information should be read in conjunction with the consolidated financial statements and the notes included in Item 1 of Part I of this Quarterly Report and the audited consolidated financial statements and notes, and Management’s Discussion and Analysis of Financial Condition and Results of Operations, contained in the Form 10−K for the fiscal year ended December 31, 2018. The following discussion and analysis includes historical and certain forward−looking information that should be read together with the accompanying consolidated financial statements, related footnotes and the discussion below of certain risks and uncertainties that could cause future operating results to differ materially from historical results or from the expected results indicated by forward−looking statements.

Business Overview

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 supports more than 15,000 farmers, ranchers, vineyards, wineries, processors, retailers, distributors, trade associations, consumer brands and restaurants with a wide variety of value-added services provided through its family of verifiers, including IMI Global, International Certification Services, Validus Verification Services, Sterling Solutions, and A Bee Organic. 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, crops and other food products are accurate.

Through our more recent acquisitions, including SureHarvest Services LLC; Sow Organic, LLC; and JVF Consulting, LLC, we provide sustainability programs, compliance management and farming information management solutions to drive sustainable value creation. We employ a software-as-a-service (“SaaS”) revenue model that bundles annual software licenses with ongoing software enhancements and upgrades and a wide range of professional services that generate incremental revenue specific to the food and agricultural industry.

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 OTCQB marketplace under the stock ticker symbol, “WFCF.”

The Company’s original name – Integrated Management Information, Inc. (d.b.a. IMI Global) – was changed to Where Food Comes From, Inc. in 2012 to better reflect the Company’s mission. Early growth was attributable to source and age verification services for beef producers that wanted access to markets overseas following the discovery of “mad cow” disease in the U.S. Over the years, WFCF has expanded its portfolio to include verification and software services for most food groups and 40 standards. This growth has been achieved both organically and through the acquisition of other companies.

Current Marketplace Opportunities

Because of growing demand for increased transparency into food production practices, we believe there are three main market drivers to promote forward momentum for our business:

Market Driver #1 - Consumer awareness and expectations

●

Per the August 2017 edition of Global Organic Food Market produced by TechSci Research, the global organic food market stood at $110.25 billion in 2016 and is projected to grow at a compounded annual growth rate of 16.15%, in value terms, during 2017 – 2022, to reach $262.85 billion by 2022. Growing awareness regarding health benefits of organic food consumption, rising per capita spending on organic food products and increasing health concerns due to the growing number of chemical poisoning cases are expected to drive global organic food market in the coming years. In addition, continuing product innovations and aggressive marketing strategies adopted by major players and online retailers would positively influence the global organic food market during forecast period.

●

Per the 2018 U.S. Grocery Shopper Trends produced by the Food Marketing Institute, shoppers evaluate a food retailer by how well it supports an overarching goal of eating well. Eating well means meeting one’s needs, pleasures and values through food experiences delivering health, taste or discovery and mindful connections. As consumers navigate a landscape of increasing choice around their sources for food, shopping well has come to mean more than just meeting eating needs within budget. Shopping well affords engagement with food discovery and ethical sourcing, even as it prompts shoppers to evolve their eating well aspirations. Shoppers continue to look “beyond the shelf” in their purchase decisions. Grass-fed beef has seen more engagement since last year’s study, as have local and fair-trade products, amidst an otherwise consistent picture of sustainable and ethical shopper behaviors. Shoppers also report a higher reliance on their food store to ensure food safety, with less reliance on the Food and Drug Administration. Consumers believe it is especially important for retailers to provide detailed information (transparency) about the products they sell.

Market Driver #2 - Global competitiveness among retailers

●

Producers, restaurant chains and retailers with dominant market shares and large buying power, like Dannon, McDonald’s and Wal-Mart, are leading the way in prioritizing sustainable food supply initiatives in response to consumer demands. With information literally at our fingertips, Google searches and smart phone apps are making it easier to expose where sustainable food supply chains are, and where they are not.

●	Producers, packers, distributors and retailers understand that verification, identification and traceability are key competitive differentiators. Oftentimes, it is necessary for export into international markets, including Korea, Russia, China and the European Union.

Market Driver #3 - Government regulation

●

The Animal Disease Traceability Rule promulgated by the USDA primarily covers beef cattle 18 months of age or older. Under the final rule, unless specifically exempted, livestock moved interstate must be officially identified and accompanied by an interstate certificate of veterinary inspection or other documentation, such as owner-shipper statements or brand certificates. Although animal disease traceability does not prevent disease, an efficient and accurate traceability system reduces the number of animals and response time involved in a disease investigation.

●

Cattle export verification (“EV”) requirements to China include source and age verification with the use of a program compliant ear tag. In addition, China bans the use of synthetic growth promotants, including ractopamine. So, although there is not a formal non-hormone component to the EV requirements for the supply chain, due to China’s residue testing, packers seek non-hormone treated cattle and/or verified natural cattle to ensure continued market access. China is the world’s second largest buyer of beef.

●

The development of the U.S. Hemp Authority Certified program demonstrates commitment toward high standards and transparency with hemp cultivation. The 2014 Farm Bill allowed farmers to start pilot programs for hemp alongside their agricultural programs. As of 2018, a new bill allows farmers to grow hemp with all the protections traditional farming receives. This Farm Bill allows farmers to legally grow hemp, which means more CBD products on the shelves. Through this bill, hemp will no longer be considered a controlled substance but rather take its place alongside all other types of traditional farming.

Seasonality

Liquidity and Capital Resources

At September 30, 2019, we had cash, cash equivalents and certificates of deposits (classified as short-term and long-term investments) of approximately $3,677,100 compared to approximately $1,981,000 at December 31, 2018. Our working capital at September 30, 2019 was approximately $3,503,500 compared to $2,669,700 at December 31, 2018.

Net cash provided by operating activities for the nine months ended September 30, 2019 was approximately $2,334,600 compared to net cash provided of $1,618,400 during the same period in 2018. Net cash provided by operating activities is driven by our net income and adjusted by non-cash items. Non-cash adjustments primarily include depreciation, amortization of intangible assets, stock-based compensation expense, and deferred taxes.

Net cash used in investing activities for the nine months ended September 30, 2019, was approximately $14,300 compared to cash used in investing activities of $1,926,600 used in the 2018 period. Net cash used during the 2019 period was primarily attributable to routine purchases of property, equipment and software development costs offset by the redemption of a $250,000 certificate of deposit. The 2018 period net cash used was attributable to business acquisitions (Sow Organic and JVF Consulting) and other business investments (Progressive Beef) which utilized $1,850,000 of cash, $135,600 for the purchase of a 2,300-square foot building located in Medina, North Dakota, which was previously leased, approximately $140,300 for leasehold improvements for the expansion of our Corporate Office, and approximately $49,400 for other routine purchases of property and equipment, offset by $250,000 in proceeds from the maturity of a certificate of deposit.

Net cash used in financing activities for the nine months ended September 30, 2019, was approximately $382,500 compared to $153,800 used in the 2018 period. Net cash used in both the 2019 and 2018 periods was primarily due to the repurchase of common shares under the Stock Buyback Plan.

The primary driver of our operating cash flow is our third-party verification solutions, specifically the gross margin generated from services provided. Therefore, we focus on the elements of those operations, including revenue growth and long-term projects that ensure a steady stream of operating profits to enable us to meet our cash obligations. On a weekly basis, we review the performance of each of our revenue streams focusing on third-party verification solutions compared with prior periods and our operating plan. We believe that our various sources of capital, including cash flow from operating activities, overall improvement in our annual performance, and our ability to obtain additional financing, are adequate to finance current operations as well as the repayment of current debt obligations. We are not aware of any other event or trend that would negatively affect our liquidity. In the event such a trend develops, we believe that there are sufficient financing avenues available to us and from our internal cash-generating capabilities to adequately manage our ongoing business.

The culmination of all our efforts has brought significant opportunities to us, including increased investor confidence and renewed interest in our company, as well as the potential to develop business relationships with long-term strategic partners. In keeping with our core business, we will continue to review our business model with a focus on profitability, long-term capital solutions and the potential impact of acquisitions or divestitures, if such an opportunity arises. Additionally, we continually evaluate all funding options, including additional offerings of our securities to private, public and institutional investors and other credit facilities as they become available.

Our plan for continued growth is primarily based upon continued expansion of verification bundling opportunities, as well as acquisitions in national and international markets. We believe that there are significant growth opportunities available to us because often the only way to differentiate a product or brand, or overcome import/export restrictions is via a quality verification program.

Debt Facility

The Company has a revolving line of credit (“LOC”) agreement which matures April 12, 2020. The LOC provides for $75,080 in working capital. The interest rate is at the Wall Street Journal prime rate plus 1.50% and is adjusted daily. Principal and interest are payable upon demand, but if demand is not made, then annual payments of accrued interest only are due, with the principal balance due upon maturity. As of September 30, 2019, and December 31, 2018, the effective interest rate was 6.5% and 7.0%, respectively. The LOC is collateralized by all the business assets of International Certification Services, Inc. (“ICS”). As of September 30, 2019, and December 31, 2018, there were no amounts outstanding under this LOC.

Off-Balance Sheet Arrangements

As of September 30, 2019, we had no off-balance sheet arrangements of any type.

RESULTS OF OPERATIONS

Three and nine months ended September 30, 2019 compared to the same period in fiscal year 2018

The following table shows information for reportable operating segments:

	Three months ended September 30, 2019												Three months ended September 30, 2018
		Verification and Certification Segment			Software Sales and Related Consulting Segment			Eliminations and Other			Consolidated Totals			Verification and Certification Segment			Software Sales and Related Consulting Segment			Eliminations and Other			Consolidated Totals
Assets:
Intangible and other assets, net	$	1,343,955		$	2,053,842		$	—		$	3,397,797		$	2,883,887		$	1,983,577		$	—		$	4,867,464
Goodwill		1,133,122			2,010,612			—			3,143,734			1,840,956			1,372,488			—			3,213,444
Total assets		14,214,110			5,323,783			—			19,537,893			14,274,121			1,229,225			—			15,503,346

Revenues:
Verification and certification service revenue	$	4,759,383		$	—		$	—		$	4,759,383		$	3,906,996		$	—		$	—		$	3,906,996
Product sales		1,086,272			—			—			1,086,272			783,303			—			—			783,303
Software license, maintenance and support services revenue		—			286,816			(60,000	)		226,816			—			208,541			—			208,541
Software-related consulting service revenue		—			196,723			(36,712	)		160,011			—			226,538			—			226,538
Total revenues	$	5,845,655		$	483,539		$	(96,712	)	$	6,232,482		$	4,690,299		$	435,079		$	—		$	5,125,378
Costs of revenues:
Costs of verification and certification services		2,733,350			—			(60,150	)		2,673,200			2,098,462			—			—			2,098,462
Costs of products		696,579			—			—			696,579			489,149			—			—			489,149
Costs of software license, maintenance and support services		—			153,452			—			153,452			—			183,942			—			183,942
Costs of software-related consulting services		—			122,224			—			122,224			—			117,303			—			117,303
Total costs of revenues		3,429,929			275,676			(60,150	)		3,645,455			2,587,611			301,245			—			2,888,856
Gross profit		2,415,726			207,863			(36,562	)		2,587,027			2,102,688			133,834			—			2,236,522
Depreciation & amortization		78,620			178,568			—			257,188			102,944			138,230			—			241,174
Other operating expenses		1,519,708			232,698			(36,562	)		1,715,844			1,442,568			135,277			—			1,577,845
Segment operating (loss)/income	$	817,398		$	(203,403	)	$	—		$	613,995		$	557,176		$	(139,673	)	$	—		$	417,503
Other items to reconcile segment operating income (loss) to net income attributable to WFCF:
Other expense (income)		(29,563	)		(6	)		—			(29,569	)		(102,155	)		—			—			(102,155	)
Income tax (benefit)/expense		—			—			184,001			184,001			—			—			169,000			169,000
Net loss attributable to non-controlling interest		—			81,359			—			81,359			—			26,691			—			26,691
Net (loss)/income attributable to WFCF	$	846,961		$	(122,038	)	$	(184,001	)	$	540,922		$	659,331		$	(112,982	)	$	(169,000	)	$	377,349

	Nine months ended September 30, 2019												Nine months ended September 30, 2018
		Verification and Certification Segment			Software Sales and Related Consulting Segment			Eliminations and Other			Consolidated Totals			Verification and Certification Segment			Software Sales and Related Consulting Segment			Eliminations and Other			Consolidated Totals
Assets:
Intangible and other assets, net	$	1,343,955		$	2,053,842		$	—		$	3,397,797		$	2,883,887		$	1,983,577		$	—		$	4,867,464
Goodwill		1,133,122			2,010,612			—			3,143,734			1,840,956			1,372,488			—			3,213,444
Total assets		14,214,110			5,323,783			—			19,537,893			14,274,121			1,229,225			—			15,503,346

Revenues:
Verification and certification service revenue	$	11,314,318		$	—		$	—		$	11,314,318		$	10,210,947		$	—		$	—		$	10,210,947
Product sales		2,362,663			—			—			2,362,663			1,633,509			—			—			1,633,509
Software license, maintenance and support services revenue		—			969,056			(147,277	)		821,779			—			759,301			—			759,301
Software-related consulting service revenue		—			660,755			(84,234	)		576,521			—			580,731			—			580,731
Total revenues	$	13,676,981		$	1,629,811		$	(231,511	)	$	15,075,281		$	11,844,456		$	1,340,032		$	—		$	13,184,488
Costs of revenues:
Costs of verification and certification services		6,455,687			—			(123,123	)		6,332,564			5,399,626			—			—			5,399,626
Costs of products		1,537,837			—			—			1,537,837			1,035,094			—			—			1,035,094
Costs of software license, maintenance and support services		—			469,065			—			469,065			—			489,887			—			489,887
Costs of software-related consulting services		—			394,660			—			394,660			—			280,310			—			280,310
Total costs of revenues		7,993,524			863,725			(123,123	)		8,734,126			6,434,720			770,197			—			7,204,917
Gross profit		5,683,457			766,086			(108,388	)		6,341,155			5,409,736			569,835			—			5,979,571
Depreciation & amortization		263,209			539,207			—			802,416			328,370			414,410			—			742,780
Other operating expenses		4,229,813			700,718			(108,388	)		4,822,143			4,127,982			423,199			—			4,551,181
Segment operating (loss)/income	$	1,190,435		$	(473,839	)	$	—		$	716,596		$	953,384		$	(267,774	)	$	—		$	685,610
Other items to reconcile segment operating income (loss) to net income attributable to WFCF:
Other expense (income)		(89,538	)		(1,009	)		—			(90,547	)		(108,661	)		860			—			(107,801	)
Income tax (benefit)/expense		—			—			230,090			230,090			—			—			257,000			257,000
Net loss attributable to non-controlling interest		—			181,829			—			181,829			—			53,261			—			53,261
Net (loss)/income attributable to WFCF	$	1,279,973		$	(291,001	)	$	(230,090	)	$	758,882		$	1,062,045		$	(215,373	)	$	(257,000	)	$	589,672

Verification and Certification Segment

Verification and certification service revenues consist of fees charged for verification audits and other verification and certification related services that the Company performs for customers. Fees earned from our WFCF labeling program are also included in our verification and certification revenues as it represents a value-added extension of our source verification. Verification and certification service revenue for the three and nine months ended September 30, 2019 increased approximately $852,400, or 21.8% and $1,103,400 or 10.8%, respectively, compared to 2018. The increase is due to an increase in new verification customers, as well as an increase in product offerings.

Our product sales are an ancillary part of our verification and certification services and represent sales of cattle identification ear tags. Product sales for the three and nine months ended September 30, 2019 increased approximately $303,000, or 38.7% and $729,200 or 44.6%, respectively, compared to the same period in 2018. Overall, our product sales have increased primarily in response to the growth of the China export market and the requirement for source and age verification using an identification tag at birth for cattle.

Costs of revenues for our verification and certification segment for the three and nine months ended September 30, 2019 were approximately $2.7 million and $6.5 million, respectively, compared to approximately $2.1 million and $5.4 million for the same period in 2018. Gross margin for the three and nine months ended September 30, 2019 decreased to 41.3% and 41.6%, respectively, compared to 44.8% and 45.7% in 2018 primarily due to competitive pricing offered to dairy calf ranches for significantly higher purchase volumes of cattle identification ear tags. Our margins are generally impacted by various costs such as cost of products, salaries and benefits, insurance, and taxes.

Other operating expenses for the three months ended September 30, 2019 increased approximately 5.3% while the nine months ended September 30, 2019 increased 2.5%, compared to the same three and nine month periods in 2018. Overall, the increase in our selling, general and administrative expenses is due in part to continued increase in head count and increasing public company compliance costs.

Software Sales and Related Consulting Segment

Software license, maintenance and support services revenue is a revenue stream specific to our acquisitions of SureHarvest, Sow Organic and JVF Consulting. We employ a SaaS revenue model that bundles annual software licenses with ongoing software enhancements and upgrades and a wide range of professional services that generate incremental revenue specific to the food and agricultural industry. For the three and nine months ended September 30, 2019, software license, maintenance and support services revenue increased approximately 37.6% and 27.6%, respectively, over 2018 predominately due to a significant increase in the number of billable hours of staff focused on software enhancements and upgrades.

Software-related consulting service revenue primarily represents fees earned from professional appearances, customer education and training related services. Software-related consulting service revenue for the three months ended September 30, 2019 decreased approximately 13.2% while the same revenue for the nine months ended September 30, 2019 increased 13.8%, compared to the same period in 2018. The three month decrease is due to fluctuations in customer demand for consulting services. The nine month increase is predominately due to growth in customer education and training services.

Costs of revenues for our software sales and related consulting segment for the three and nine months ended September 30, 2019 were approximately $275,700 and $863,700, respectively, compared to approximately $301,200 and $770,200 for the same period in 2018. Gross margin for the three and nine months ended September 30, 2019 improved to 43.0% and 47.0%, respectively, compared to 30.8% and 42.5% for the same period in 2018. The three and nine month increase in gross margin is due to efficiency gains realized after consolidating business acquisitions during 2019.

Other operating expenses for the three and nine months ended September 30, 2019 increased approximately 72.0% and 65.6%, respectively, compared to the same period in 2018. The increase is predominately due to additional fixed costs absorbed from the Sow Organic and JVF acquisitions.

As with all of our acquisitions, we continue to identify synergies and implement best practices. We focus our efforts to create value in various ways such as improving the performance of our acquired businesses, removing excess capacity, creating market access for products, acquiring skills and technologies more quickly or at a lower cost than we can build in-house, exploiting our industry-specific scalability and bundling opportunities, and picking winners early and helping them develop their businesses. Achieving any or all of these strategies take time to implement. We have learned that it can take two to three years after an acquisition to fully understand the complexities, at which time, we have seen solid improvements in revenues and/or costs.

Dividend Income from Progressive Beef

On August 9, 2018, the Company purchased a ten percent membership interest in Progressive Beef, LLC (“Progressive Beef”) for an aggregate purchase price of approximately $991,000. For the three and nine months ended September 30, 2019, the Company received dividend income of $30,000 and $90,000, respectively, from Progressive Beef representing a distribution of their earnings.

Income Tax Expense

The provision for income taxes is recorded at the end of each interim period based on the Company’s best estimate of its effective income tax rate expected to be applicable for the full fiscal year. For the three and nine months ended September 30, 2019, we recorded income tax expense of approximately $184,000 and $230,100 compared to income tax expense of $169,000 and $257,000 for the same period in 2018.

Net Income and Per Share Information

As a result of the foregoing, net income attributable to WFCF shareholders for the three and nine months ended September 30, 2019 was approximately $540,900 and $758,900, respectively, or $0.02 and $0.03 per basic and diluted common share, respectively, compared to net income of approximately $377,300 and $589,700, or $0.02 and $0.02 per basic and diluted common share for the same periods in 2018.

ITEM 4. CONTROLS AND PROCEDURES

Evaluation of Disclosure Controls and Procedures

Our management, including our principal executive and financial officers, have conducted an evaluation of the effectiveness of the design and operation of our “disclosure controls and procedures,” as such term is defined under Rules 13a-15(e) and 15d-15(e) of the Exchange Act, to ensure that information we are required to disclose in the reports we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms, and include controls and procedures designed to ensure that information we are required to disclose in such reports is accumulated and communicated to management, including our principal executive and financial officers, as appropriate, to allow timely decisions regarding required disclosure. Based on that evaluation, our principal executive and financial officers concluded, as a result of the material weaknesses in internal control over financial reporting discussed below, that our disclosure controls and procedures were not effective as of the end of the period covered by this report. However, we believe that the financial statements included in this report fairly present in all material respects our financial condition, results of operations and cash flows for the periods presented.

Material Weaknesses in Internal Control over Financial Reporting and Remediation Plan

In connection with the audit of our consolidated financial statements for the year ended December 31, 2018, we and our independent registered public accounting firm identified material weaknesses in our internal control over financial reporting. A material weakness is a deficiency, or a combination of deficiencies, in internal control over financial reporting, such that there is a reasonable possibility that a material misstatement of our annual or interim financial statements will not be prevented or detected on a timely basis.

●

As a smaller reporting company, we have limited accounting and financial reporting personnel and other resources with which to address our internal controls over financial reporting. Due to limited accounting personnel, we did not apply the appropriate level of review, oversight and segregation of duties to the accounting and financial reporting function. This resulted in the identification of a material weakness in our internal control over financial reporting. As of September 30, 2019, we have hired additional accounting personnel. Additionally, we have implemented a more robust review, supervision and monitoring of the financial reporting process also intended to remediate the identified material weakness.

●

The Company lacked effective procedures for ensuring review and approval related to journal entries. Due to the related risks associated with financial reporting, this deficiency has been deemed an individual material weakness. As of September 30, 2019, we have strengthened controls around the journal entry process, including limiting access and ensuring all journal entries are reviewed and approved by appropriate personnel.

●

We also identified a material weakness related to general information technology controls in the areas of user access to systems that support the Company’s financial reporting processes. We did not implement a procedure or control to periodically review the access granted in order to ensure that users of our information systems had the appropriate access relative to the user’s job responsibilities. We did not restrict and maintain network access accounts to only employees in the information technology department and had no compensating controls. With the acquisition of JVF Consulting in August 2018, we added 3 additional information technology professionals with knowledge of security, networking and infrastructure. These individuals ensure user access is documented, properly approved and routinely monitored to determine appropriateness.

The material weaknesses will not be considered remediated until the applicable controls operate for a sufficient period of time and management has concluded, through testing, that these controls are operating effectively. The Company expects that the remediation of these material weaknesses will be completed prior to the end of fiscal year 2019.

In light of these material weaknesses, in preparing our financial statements for the three months ended September 30, 2019, we performed additional analyses and procedures to ensure that our consolidated financial statements included in this Form 10-Q have been prepared in accordance with U.S. GAAP. There have been no material misstatements identified in the financial statements as a result of these deficiencies.

Management believes that the foregoing efforts will effectively remediate the material weaknesses. As we continue to evaluate and work to improve our internal control over financial reporting, management may determine to take additional measures to address the material weaknesses or to modify the remediation plans described above.

Internal Control Over Financial Reporting

Our management is responsible for establishing and maintaining adequate internal control over financial reporting as defined in Rule 13a-15(f) of the Exchange Act. Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements and can only provide reasonable assurance with respect to financial statement preparation. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

The changes in our internal control over financial reporting that occurred prior to and during the three months ended September 30, 2019, that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting are described above under the heading “Material Weakness in Internal Control over Financial Reporting and Remediation Plan.”

Except as described above, there have not been any other changes in the Company’s internal control over financial reporting (as such term is defined in Rule 13a-15(f) under the Exchange Act) during the most recent fiscal quarter that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.

PART II – OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

ITEM 1A. RISK FACTORS

Our business is subject to a number of risks, including those identified in Item 1A. — “Risk Factors” of our 2018 Annual Report on Form 10−K, that could have a material effect on our business, results of operations, financial condition and/or liquidity and that could cause our operating results to vary significantly from period to period. As of September 30, 2019, there have been no material changes to the risks disclosed in our most recent Annual Report on Form 10−K. We may also disclose changes to such factors or disclose additional factors from time to time in our future filings with the SEC.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

Issuer Purchases of Equity Securities

On January 7, 2008, we announced our intention to buy back up to one million shares of our common stock from the open market (“Stock Buyback Plan”). Our Stock Buyback Plan has been and will be used to return capital to shareholders and to minimize the dilutive impact of stock options and other share-based awards. In the future, we may consider additional share repurchases under our plan based on several factors, including our cash position, share price, operational liquidity, and planned investment and financing needs.

Activity for the three months ended September 30, 2019 is as follows:

	Number of Shares		Cost of Shares		Average Cost per Share

Shares purchased - July 2019		31,604		57,105	$	1.81
Shares purchased - August 2019		23,964		43,323	$	1.81
Shares purchased - September 2019		10,957		18,600	$	1.70
Total		66,525		119,028	$	1.79

ITEM 6. EXHIBITS

(a) Exhibits

	Number		Description
	31.1		Certification of CEO pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
	31.2		Certification of CFO pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
	32.1		Certification of CEO pursuant to 18 U.S.C. Section 1350, as adopted by Section 906 of the Sarbanes-Oxley Act of 2002
	32.2		Certification of CFO pursuant to 18 U.S.C. Section 1350, as adopted by Section 906 of the Sarbanes-Oxley Act of 2002


	101.INS		XBRL Instance Document
	101.SCH		XBRL Taxonomy Extension Schema Document
	101.CAL		XBRL Taxonomy Extension Calculation Linkbase Document
	101.DEF		XBRL Taxonomy Extension Definition Linkbase Document
	101.LAB		XBRL Taxonomy Extension Label Linkbase Document
	101.PRE		XBRL Taxonomy Extension Presentation Linkbase Document

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

Date: November 14, 2019	Where Food Comes From, Inc.
	By:	/s/ John K. Saunders
		Chief Executive Officer

	By:	/s/ Dannette Henning
		Chief Financial Officer

EX-31.1 2 ex31-1.htm CERTIFICATION OF CEO

Where Food Comes From, Inc.

EXHIBIT 31.1

I, John Saunders, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Where Food Comes From, Inc.

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the consolidated financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a)

Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiary, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)

Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)

Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d)

Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a)

All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b)

Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: November 14, 2019

/s/ John Saunders

John Saunders, Chief Executive Officer

EX-31.2 3 ex31-2.htm CERTIFICATION OF CFO

Where Food Comes From, Inc.

EXHIBIT 31.2

I, Dannette Henning, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Where Food Comes From, Inc.

(a)

(b)

(c)

(d)

(a)

(b)

Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: November 14, 2019

/s/ Dannette Henning

Dannette Henning, Chief Financial Officer

EX-32.1 4 ex32-1.htm CERTIFICATION OF CEO

Where Food Comes From, Inc.

EXHIBIT 32.1

Certification of Periodic Financial Report

Pursuant to 18 U.S.C. Section 1350

For purposes of 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, the undersigned, John Saunders the Chief Executive Officer of Where Food Comes From, Inc. (the “Company”), hereby certifies that, to his knowledge:

(i)

the Quarterly Report on Form 10-Q of the Company for the quarterly period ended September 30, 2019, as filed with the Securities and Exchange Commission on the date hereof (the “Report”) fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(ii)

the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: November 14, 2019

/s/ John Saunders

John Saunders, Chief Executive Officer

EX-32.2 5 ex32-2.htm CERTIFICATION OF CFO

Where Food Comes From, Inc.

EXHIBIT 32.2

Certification of Periodic Financial Report

Pursuant to 18 U.S.C. Section 1350

For purposes of 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, the undersigned, Dannette Henning, the Chief Financial Officer of Where Food Comes From, Inc. (the “Company”), hereby certifies that, to her knowledge:

(i)

(ii)

the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: November 14, 2019

/s/ Dannette Henning

Dannette Henning, Chief Financial Officer

EX-101.INS 6 wfcf-20190930.xml XBRL INSTANCE DOCUMENT 0001360565 2019-06-30 0001360565 2019-03-31 0001360565 2018-12-31 0001360565 2018-09-30 0001360565 2018-06-30 0001360565 2018-03-31 0001360565 2017-12-31 0001360565 us-gaap:CommonStockMember 2018-01-01 2018-03-31 0001360565 us-gaap:CommonStockMember 2017-12-31 0001360565 us-gaap:CommonStockMember 2018-03-31 0001360565 us-gaap:AdditionalPaidInCapitalMember 2018-01-01 2018-03-31 0001360565 us-gaap:AdditionalPaidInCapitalMember 2017-12-31 0001360565 us-gaap:AdditionalPaidInCapitalMember 2018-03-31 0001360565 us-gaap:TreasuryStockMember 2018-01-01 2018-03-31 0001360565 us-gaap:TreasuryStockMember 2017-12-31 0001360565 us-gaap:TreasuryStockMember 2018-03-31 0001360565 us-gaap:RetainedEarningsMember 2018-01-01 2018-03-31 0001360565 us-gaap:RetainedEarningsMember 2017-12-31 0001360565 us-gaap:RetainedEarningsMember 2018-03-31 0001360565 2018-01-01 2018-03-31 0001360565 us-gaap:CommonStockMember 2018-07-01 2018-09-30 0001360565 us-gaap:CommonStockMember 2018-06-30 0001360565 us-gaap:CommonStockMember 2018-09-30 0001360565 us-gaap:AdditionalPaidInCapitalMember 2018-07-01 2018-09-30 0001360565 us-gaap:AdditionalPaidInCapitalMember 2018-06-30 0001360565 us-gaap:AdditionalPaidInCapitalMember 2018-09-30 0001360565 us-gaap:TreasuryStockMember 2018-06-30 0001360565 us-gaap:RetainedEarningsMember 2018-07-01 2018-09-30 0001360565 us-gaap:RetainedEarningsMember 2018-06-30 0001360565 2018-07-01 2018-09-30 0001360565 us-gaap:CommonStockMember 2019-01-01 2019-03-31 0001360565 us-gaap:CommonStockMember 2018-12-31 0001360565 us-gaap:CommonStockMember 2019-03-31 0001360565 us-gaap:AdditionalPaidInCapitalMember 2019-01-01 2019-03-31 0001360565 us-gaap:AdditionalPaidInCapitalMember 2018-12-31 0001360565 us-gaap:AdditionalPaidInCapitalMember 2019-03-31 0001360565 us-gaap:TreasuryStockMember 2019-01-01 2019-03-31 0001360565 us-gaap:TreasuryStockMember 2018-12-31 0001360565 us-gaap:TreasuryStockMember 2019-03-31 0001360565 us-gaap:RetainedEarningsMember 2019-01-01 2019-03-31 0001360565 us-gaap:RetainedEarningsMember 2018-12-31 0001360565 us-gaap:RetainedEarningsMember 2019-03-31 0001360565 2019-01-01 2019-03-31 0001360565 us-gaap:CommonStockMember 2018-04-01 2018-06-30 0001360565 us-gaap:AdditionalPaidInCapitalMember 2018-04-01 2018-06-30 0001360565 us-gaap:TreasuryStockMember 2018-04-01 2018-06-30 0001360565 us-gaap:RetainedEarningsMember 2018-04-01 2018-06-30 0001360565 2018-04-01 2018-06-30 0001360565 us-gaap:CommonStockMember 2019-04-01 2019-06-30 0001360565 us-gaap:CommonStockMember 2019-06-30 0001360565 us-gaap:AdditionalPaidInCapitalMember 2019-04-01 2019-06-30 0001360565 us-gaap:AdditionalPaidInCapitalMember 2019-06-30 0001360565 us-gaap:TreasuryStockMember 2019-04-01 2019-06-30 0001360565 us-gaap:TreasuryStockMember 2019-06-30 0001360565 us-gaap:RetainedEarningsMember 2019-04-01 2019-06-30 0001360565 us-gaap:RetainedEarningsMember 2019-06-30 0001360565 2019-04-01 2019-06-30 0001360565 us-gaap:CommonStockMember 2019-07-01 2019-09-30 0001360565 us-gaap:CommonStockMember 2019-09-30 0001360565 us-gaap:AdditionalPaidInCapitalMember 2019-07-01 2019-09-30 0001360565 us-gaap:AdditionalPaidInCapitalMember 2019-09-30 0001360565 us-gaap:TreasuryStockMember 2019-07-01 2019-09-30 0001360565 us-gaap:RetainedEarningsMember 2019-07-01 2019-09-30 0001360565 2019-07-01 2019-09-30 0001360565 2019-09-30 0001360565 us-gaap:TreasuryStockMember 2018-09-30 0001360565 us-gaap:TreasuryStockMember 2019-09-30 0001360565 us-gaap:RetainedEarningsMember 2018-09-30 0001360565 us-gaap:RetainedEarningsMember 2019-09-30 0001360565 2018-01-01 2018-09-30 0001360565 2019-01-01 2019-09-30 0001360565 us-gaap:ServiceMember 2019-07-01 2019-09-30 0001360565 us-gaap:ServiceMember 2018-07-01 2018-09-30 0001360565 us-gaap:ServiceMember 2018-01-01 2018-09-30 0001360565 us-gaap:ServiceMember 2019-01-01 2019-09-30 0001360565 us-gaap:ProductMember 2019-07-01 2019-09-30 0001360565 us-gaap:ProductMember 2018-07-01 2018-09-30 0001360565 us-gaap:ProductMember 2018-01-01 2018-09-30 0001360565 us-gaap:ProductMember 2019-01-01 2019-09-30 0001360565 us-gaap:TechnologyServiceMember 2019-07-01 2019-09-30 0001360565 us-gaap:TechnologyServiceMember 2018-07-01 2018-09-30 0001360565 us-gaap:TechnologyServiceMember 2018-01-01 2018-09-30 0001360565 us-gaap:TechnologyServiceMember 2019-01-01 2019-09-30 0001360565 us-gaap:LicenseAndServiceMember 2019-07-01 2019-09-30 0001360565 us-gaap:LicenseAndServiceMember 2018-07-01 2018-09-30 0001360565 us-gaap:LicenseAndServiceMember 2018-01-01 2018-09-30 0001360565 us-gaap:LicenseAndServiceMember 2019-01-01 2019-09-30 0001360565 2019-11-04 0001360565 us-gaap:AccountingStandardsUpdate201602Member 2019-01-02 0001360565 wfcf:SowOrganicMember wfcf:SoftwareAcquiredMember 2018-05-16 0001360565 wfcf:SowOrganicMember us-gaap:TrademarksMember 2018-05-16 0001360565 wfcf:SowOrganicMember us-gaap:NoncompeteAgreementsMember 2018-05-16 0001360565 wfcf:SowOrganicMember us-gaap:CustomerRelationshipsMember 2018-05-16 0001360565 wfcf:SowOrganicMember 2018-05-16 0001360565 wfcf:SowOrganicMember 2018-05-15 2018-05-16 0001360565 wfcf:JVFConsultingLLCMember wfcf:SoftwareAcquiredMember 2018-08-30 0001360565 wfcf:JVFConsultingLLCMember us-gaap:TrademarksMember 2018-08-30 0001360565 wfcf:JVFConsultingLLCMember us-gaap:NoncompeteAgreementsMember 2018-08-30 0001360565 wfcf:JVFConsultingLLCMember us-gaap:CustomerRelationshipsMember 2018-08-30 0001360565 wfcf:JVFConsultingLLCMember 2018-08-30 0001360565 wfcf:JVFConsultingLLCMember 2018-08-29 2018-08-30 0001360565 wfcf:JVFConsultingMember 2018-08-28 2018-08-30 0001360565 wfcf:ProgressiveBeefLLCMember 2018-08-08 2018-08-09 0001360565 wfcf:ProgressiveBeefLLCMember 2018-08-09 0001360565 wfcf:ProgressiveBeefLLCMember 2019-01-01 2019-09-30 0001360565 wfcf:ProgressiveBeefLLCMember 2019-07-01 2019-09-30 0001360565 us-gaap:TrademarksMember 2018-12-31 0001360565 wfcf:AccreditationsMember 2018-12-31 0001360565 us-gaap:CustomerRelationshipsMember 2018-12-31 0001360565 us-gaap:PatentsMember 2018-12-31 0001360565 us-gaap:NoncompeteAgreementsMember 2018-12-31 0001360565 us-gaap:TrademarksMember 2019-09-30 0001360565 wfcf:AccreditationsMember 2019-09-30 0001360565 us-gaap:CustomerRelationshipsMember 2019-09-30 0001360565 us-gaap:PatentsMember 2019-09-30 0001360565 us-gaap:NoncompeteAgreementsMember 2019-09-30 0001360565 us-gaap:TrademarksMember srt:MinimumMember 2019-01-01 2019-09-30 0001360565 us-gaap:TrademarksMember srt:MaximumMember 2019-01-01 2019-09-30 0001360565 wfcf:AccreditationsMember 2019-01-01 2019-09-30 0001360565 us-gaap:CustomerRelationshipsMember srt:MaximumMember 2019-01-01 2019-09-30 0001360565 us-gaap:CustomerRelationshipsMember srt:MinimumMember 2019-01-01 2019-09-30 0001360565 us-gaap:PatentsMember 2019-01-01 2019-09-30 0001360565 us-gaap:NoncompeteAgreementsMember 2019-01-01 2019-09-30 0001360565 wfcf:VehicleNoteMember 2017-09-30 0001360565 wfcf:VehicleNoteMember 2017-09-01 2017-09-30 0001360565 us-gaap:LineOfCreditMember 2019-01-01 2019-09-30 0001360565 us-gaap:LineOfCreditMember 2019-09-30 0001360565 us-gaap:LineOfCreditMember 2018-12-31 0001360565 us-gaap:EmployeeStockOptionMember 2019-01-01 2019-09-30 0001360565 us-gaap:RestrictedStockMember 2019-01-01 2019-09-30 0001360565 us-gaap:EmployeeStockOptionMember 2018-01-01 2018-09-30 0001360565 us-gaap:RestrictedStockMember 2018-01-01 2018-09-30 0001360565 us-gaap:EmployeeStockOptionMember 2019-07-01 2019-09-30 0001360565 us-gaap:RestrictedStockMember 2019-07-01 2019-09-30 0001360565 us-gaap:RestrictedStockMember 2018-07-01 2018-09-30 0001360565 us-gaap:EmployeeStockOptionMember 2018-07-01 2018-09-30 0001360565 us-gaap:ShareBasedCompensationAwardTrancheOneMember 2019-09-30 0001360565 us-gaap:ShareBasedCompensationAwardTrancheTwoMember 2019-09-30 0001360565 us-gaap:ShareBasedCompensationAwardTrancheThreeMember 2019-09-30 0001360565 wfcf:ShareBasedCompensationAwardTrancheFourMember 2019-09-30 0001360565 us-gaap:RestrictedStockMember 2018-12-31 0001360565 us-gaap:RestrictedStockMember 2019-09-30 0001360565 wfcf:SureharvestMember 2019-09-30 0001360565 us-gaap:OperatingSegmentsMember wfcf:VerificationAndCertificationSegmentMember us-gaap:ServiceMember 2019-07-01 2019-09-30 0001360565 us-gaap:OperatingSegmentsMember wfcf:VerificationAndCertificationSegmentMember us-gaap:ServiceMember 2018-07-01 2018-09-30 0001360565 us-gaap:OperatingSegmentsMember wfcf:VerificationAndCertificationSegmentMember us-gaap:ProductMember 2019-07-01 2019-09-30 0001360565 us-gaap:OperatingSegmentsMember wfcf:VerificationAndCertificationSegmentMember us-gaap:ProductMember 2018-07-01 2018-09-30 0001360565 us-gaap:OperatingSegmentsMember wfcf:SoftwareSalesAndRelatedConsultingSegmentMember us-gaap:TechnologyServiceMember 2019-07-01 2019-09-30 0001360565 us-gaap:IntersegmentEliminationMember us-gaap:TechnologyServiceMember 2019-07-01 2019-09-30 0001360565 us-gaap:OperatingSegmentsMember wfcf:SoftwareSalesAndRelatedConsultingSegmentMember us-gaap:TechnologyServiceMember 2018-07-01 2018-09-30 0001360565 us-gaap:OperatingSegmentsMember wfcf:SoftwareSalesAndRelatedConsultingSegmentMember us-gaap:LicenseAndServiceMember 2019-07-01 2019-09-30 0001360565 us-gaap:IntersegmentEliminationMember us-gaap:LicenseAndServiceMember 2019-07-01 2019-09-30 0001360565 us-gaap:OperatingSegmentsMember wfcf:SoftwareSalesAndRelatedConsultingSegmentMember us-gaap:LicenseAndServiceMember 2018-07-01 2018-09-30 0001360565 us-gaap:OperatingSegmentsMember wfcf:VerificationAndCertificationSegmentMember 2019-07-01 2019-09-30 0001360565 us-gaap:OperatingSegmentsMember wfcf:SoftwareSalesAndRelatedConsultingSegmentMember 2019-07-01 2019-09-30 0001360565 us-gaap:IntersegmentEliminationMember 2019-07-01 2019-09-30 0001360565 us-gaap:OperatingSegmentsMember wfcf:VerificationAndCertificationSegmentMember 2018-07-01 2018-09-30 0001360565 us-gaap:OperatingSegmentsMember wfcf:SoftwareSalesAndRelatedConsultingSegmentMember 2018-07-01 2018-09-30 0001360565 us-gaap:OperatingSegmentsMember wfcf:VerificationAndCertificationSegmentMember us-gaap:ServiceMember 2019-01-01 2019-09-30 0001360565 us-gaap:OperatingSegmentsMember wfcf:VerificationAndCertificationSegmentMember us-gaap:ServiceMember 2018-01-01 2018-09-30 0001360565 us-gaap:OperatingSegmentsMember wfcf:VerificationAndCertificationSegmentMember us-gaap:ProductMember 2019-01-01 2019-09-30 0001360565 us-gaap:OperatingSegmentsMember wfcf:SoftwareSalesAndRelatedConsultingSegmentMember us-gaap:TechnologyServiceMember 2019-01-01 2019-09-30 0001360565 us-gaap:IntersegmentEliminationMember us-gaap:TechnologyServiceMember 2019-01-01 2019-09-30 0001360565 us-gaap:OperatingSegmentsMember wfcf:SoftwareSalesAndRelatedConsultingSegmentMember us-gaap:TechnologyServiceMember 2018-01-01 2018-09-30 0001360565 us-gaap:OperatingSegmentsMember wfcf:SoftwareSalesAndRelatedConsultingSegmentMember us-gaap:LicenseAndServiceMember 2019-01-01 2019-09-30 0001360565 us-gaap:IntersegmentEliminationMember us-gaap:LicenseAndServiceMember 2019-01-01 2019-09-30 0001360565 us-gaap:OperatingSegmentsMember wfcf:SoftwareSalesAndRelatedConsultingSegmentMember us-gaap:LicenseAndServiceMember 2018-01-01 2018-09-30 0001360565 us-gaap:OperatingSegmentsMember wfcf:VerificationAndCertificationSegmentMember 2019-01-01 2019-09-30 0001360565 us-gaap:OperatingSegmentsMember wfcf:SoftwareSalesAndRelatedConsultingSegmentMember 2019-01-01 2019-09-30 0001360565 us-gaap:IntersegmentEliminationMember 2019-01-01 2019-09-30 0001360565 us-gaap:OperatingSegmentsMember wfcf:VerificationAndCertificationSegmentMember 2018-01-01 2018-09-30 0001360565 us-gaap:OperatingSegmentsMember wfcf:SoftwareSalesAndRelatedConsultingSegmentMember 2018-01-01 2018-09-30 0001360565 wfcf:DeferredRevenueMember 2019-09-30 0001360565 wfcf:DeferredRevenueMember 2018-12-31 0001360565 wfcf:RelatedPartyMember 2019-09-30 0001360565 wfcf:OtherMember 2019-09-30 0001360565 wfcf:CorporateHeadquarterMember 2019-07-01 2019-09-30 0001360565 wfcf:CorporateHeadquarterMember 2019-01-01 2019-09-30 0001360565 srt:MinimumMember 2019-09-30 0001360565 srt:MaximumMember 2019-09-30 0001360565 wfcf:SureharvestMember 2016-12-27 2016-12-28 0001360565 wfcf:SureharvestMember 2016-12-28 0001360565 us-gaap:OperatingSegmentsMember wfcf:VerificationAndCertificationSegmentMember us-gaap:ProductMember 2018-01-01 2018-09-30 0001360565 wfcf:TheMoveLLCMember wfcf:CeoAndPresidentMember 2019-01-01 2019-09-30 0001360565 us-gaap:OperatingSegmentsMember wfcf:VerificationAndCertificationSegmentMember 2019-09-30 0001360565 us-gaap:OperatingSegmentsMember wfcf:SoftwareSalesAndRelatedConsultingSegmentMember 2019-09-30 0001360565 us-gaap:OperatingSegmentsMember wfcf:VerificationAndCertificationSegmentMember 2018-09-30 0001360565 us-gaap:OperatingSegmentsMember wfcf:SoftwareSalesAndRelatedConsultingSegmentMember 2018-09-30 0001360565 us-gaap:IntersegmentEliminationMember wfcf:SoftwareLicenseMaintenanceAndSupportServicesRevenueMember 2019-07-01 2019-09-30 0001360565 us-gaap:IntersegmentEliminationMember wfcf:SoftwareRelatedConsultingServiceRevenueMember 2019-07-01 2019-09-30 0001360565 us-gaap:IntersegmentEliminationMember us-gaap:ServiceMember 2019-07-01 2019-09-30 0001360565 us-gaap:IntersegmentEliminationMember 2018-07-01 2018-09-30 0001360565 us-gaap:IntersegmentEliminationMember 2018-01-01 2018-09-30 iso4217:USD xbrli:shares iso4217:USD xbrli:shares xbrli:pure

10823375

10583959

10765809

10762537

9933564

9704614

9670876

24972

10353037

10390939

-724530

-764178

17397

52881

25190

25473

10544034

10995375

-865380

229720

25473

11031264

11075966

-1109061

-1192484

818133

675004

25473

11123062

-1361253

1036093

25498

11159709

11281941

-865380

-1480281

607069

1577015

24968256

24652895

24637215

24805169

25087946

24968256

24921498

24826150

24784625

37902

45218

44702

42119

47096

36672

15680

46758

49700

95348

66525

35484

377349

-143129

176839

361089

540922

589672

758882

846961

-122038

-184001

659331

-112982

1279973

-291001

-230090

-215373

-169000

-257000

39648

83423

101202

168769

119028

321937 321937

218

432913

433131

433100

315300

91100

1534900

50 91065 91115 91115 50340 159 315132 315291 158437

-74

-25

74000

25000

3143734

3213444

3143734

433131

380290

1133122

2010612

1840956

1372488

3852121

3397797

991115 991115

252999

3331344

1675472

1569480

439424

205841

245597

256802

2205162

2972579

362088

119187

3588040

3301204

286836

32747

23798

32220

24966

232903

153456

79447

11309

8054

10173

10689

1143158

654872

951826

492601

1133594

533925

1014904

1449007

1267178

818133

1577015

1109061

1480281

11031264

11159709

25473

25498

0.001

5000000

0.001

95000000

25473115

25498115

504859

713490

5125378

6232482

13184488

15075281

4759383

3906996

10210947

11314318

1086272

783303

1633509

2362663

226816

208541

759301

821779

160011

226538

580731

576521

4759383

3906996

1086272

783303

286816

-60000

208541

196723

-36712

226538

5845655

483539

-96712

4690299

435079

11314318

10210947

2362663

969056

-147277

759301

660755

-84234

580731

13676981

1629811

-231511

11844456

1340032

1633509

-60000

-36712

2888856

3645455

7204917

8734126

2673200

2098462

5399626

6332564

696579

489149

1035094

1537837

153452

183942

489887

469065

122224

117303

280310

394660

2733350

2098462

696579

489149

153452

183942

122224

117303

3429929

275676

-60150

2587611

301245

6455687

5399626

1537837

469065

-123123

489887

394660

580731

7993524

863725

-123123

6434720

770197

1035094

-60150

1819019

1973032

5293961

5624559

-26691

-81359

-53261

-181829

-81359

-26691

-181829

-1062045

-53261

169000

184001

257000

230090

184001

230090

169000

257000

1361

2459

3755

7648

3516

2028

11556

7195

-100000 -30000 -100000 -90000

0.02

0.03

0.02

0.03

25074477

24971625

24938699

25062349

24900919

24791534

24756262

24879556

1000

10000

26803

57376

-73000

45218

36672

125239

128470

113857

14613

64820

60419

33975

2697

16773

28445

1000

8127

241174

257188

742780

802416

78620

178568

102944

138230

263209

539207

328370

414410

-26793

71831

296954

544473

640993

278425

480979

62403

-233583

3196

11205

674398

794220

1350

250000

252999

325227

268269

1000

900000

500000

450000

1482391

2243782

2705778

3420278

140850

371220

5918

4504

7062

6738

Note 2 – Business Acquisitions    Sow Organic Acquisition   On May 16, 2018, we acquired substantially all of the assets of Sow Organic for $450,000 in cash and 217,654 shares of common stock of WFCF valued at approximately $433,100. We believe the transaction further diversifies our offerings by adding complementary solutions and services available to new and existing customers. Sow Organic’s software as a service (SaaS) model allows organic certification bodies to automate and accelerate new customer onboarding by converting traditional paper-based processes to digital format, resulting in lower costs, improved workflow management and increased productivity.  Sow Organic’s unique design allows certification bodies to digitize any certification scheme.  Likewise, the software affords producers and handlers a more efficient way to become certified and to digitally manage their records on an ongoing basis, including completing annual certification requirements fully online. We intend to further develop the organic business opportunity and collaborate on a broader rollout of the solution to other certification markets where the tool is equally suited to improve efficiencies and reduce costs in the certification process. This transaction further strengthens our intellectual property portfolio, which we believe represents a distinct competitive advantage for the Company.    We believe the impacts on proforma revenue and earnings are immaterial. The following table summarizes the final fair values assigned to the assets and liabilities acquired in addition to the excess of the purchase price over the net assets acquired at the acquisition date.   <table cellspacing="0" cellpadding="0" align="center" style="width: 80%; border-collapse: collapse; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td>Sow Organic, LLC:</td> <td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center">May 16, 2018</td> <td style="padding-bottom: 1pt"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 83%; text-align: left">Software acquired</td> <td style="width: 1%"> </td> <td style="width: 1%; text-align: left">$</td> <td style="width: 14%; text-align: right">156,000</td> <td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="text-align: left">Identifiable intangible assets:</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">—</td> <td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-left: 10pt">Tradenames and trademarks</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">48,000</td> <td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="text-align: left; padding-left: 10pt">Non-compete agreements</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">84,000</td> <td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-left: 10pt">Customer relationships</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">162,000</td> <td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="padding-bottom: 1pt">Goodwill</td> <td style="padding-bottom: 1pt"> </td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">433,131</td> <td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 2.5pt; text-align: left; padding-left: 10pt">Total consideration</td> <td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: black 2.5pt double; text-align: left">$</td> <td style="border-bottom: black 2.5pt double; text-align: right">883,131</td> <td style="text-align: left"> </td></tr> </table>    Excess attributable to goodwill reflects the excess over the identifiable intangible assets acquired based on the final allocation of the purchase price. Goodwill is primarily attributable to the operational and financial benefits expected to be realized from the acquisition, including cost saving synergies from operating efficiencies, future growth in bundling opportunities across divisions and brands, realized savings from a more sophisticated information technology infrastructure, and strategic advances from expansion of our intellectual property.   JVF Consulting Acquisition   On August 30, 2018, we acquired substantially all of the assets of JVF Consulting, LLC (“Seller” or “JVF”) for $500,000 in cash and 158,437 shares of common stock of WFCF valued at approximately $315,300. We believe the transaction adds value to certain of our existing software solutions which are based on intellectual property built and owned by the Seller. JVF is currently the largest technology provider to our SureHarvest division. With this acquisition, WFCF controls the intellectual property associated with its current Software as a Service (SaaS) offerings. Additionally, WFCF employed three of the Seller’s employees who enhance our ability to address new markets and services with our SaaS Solutions.   We believe the impacts on proforma revenue and earnings are immaterial. The following table summarizes the final fair values assigned to the assets and liabilities acquired in addition to the excess of the purchase price over the net assets acquired at the acquisition date.    <table cellspacing="0" cellpadding="0" align="center" style="width: 80%; border-collapse: collapse; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td>JVF Consulting, LLC:</td> <td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center">August 30, 2018</td> <td style="padding-bottom: 1pt"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 83%; text-align: left">Software acquired</td> <td style="width: 1%"> </td> <td style="width: 1%; text-align: left">$</td> <td style="width: 14%; text-align: right">207,000</td> <td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="text-align: left">Identifiable intangible assets:</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-left: 10pt">Tradenames and trademarks</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">87,000</td> <td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="text-align: left; padding-left: 10pt">Non-compete agreements</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">37,000</td> <td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-left: 10pt">Customer relationships</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">104,000</td> <td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="padding-bottom: 1pt">Goodwill</td> <td style="padding-bottom: 1pt"> </td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">380,290</td> <td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 2.5pt; text-align: left; padding-left: 10pt">Total consideration</td> <td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: black 2.5pt double; text-align: left">$</td> <td style="border-bottom: black 2.5pt double; text-align: right">815,290</td> <td style="text-align: left"> </td></tr> </table>    Excess attributable to goodwill reflects the excess over the identifiable intangible assets acquired based on the final allocation of the purchase price. Goodwill is primarily attributable to the operational and financial benefits expected to be realized from the acquisition, including cost saving synergies from operating efficiencies, future growth in bundling opportunities across divisions and brands, realized savings from a more sophisticated information technology infrastructure, and strategic advances from expansion of our intellectual property.

Note 3 – Basic and Diluted Net Income per Share   Basic net income per share was computed by dividing income available to common shareholders by the weighted average number of common shares outstanding during the period. Diluted net income per share is based on the assumption that all dilutive convertible shares and stock options were converted or exercised. Dilution is computed by applying the treasury stock method. Under this method, options and restricted stock awards are assumed to be exercised at the beginning of the period (or at the time of issuance, if later), and as if funds obtained thereby were used to purchase common stock at the average market price during the period.   The following is a reconciliation of the share data used in the basic and diluted income per share computations:    <table cellspacing="0" cellpadding="0" style="width: 100%; border-collapse: collapse; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td> </td> <td style="padding-bottom: 1pt"> </td> <td colspan="6" style="border-bottom: black 1pt solid; text-align: center">Three months ended September 30,</td> <td style="padding-bottom: 1pt"> </td> <td style="padding-bottom: 1pt"> </td> <td colspan="6" style="border-bottom: black 1pt solid; text-align: center">Nine months ended September 30,</td> <td style="padding-bottom: 1pt"> </td></tr> <tr style="vertical-align: bottom"> <td> </td> <td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center">2019</td> <td style="padding-bottom: 1pt"> </td> <td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center">2018</td> <td style="padding-bottom: 1pt"> </td> <td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center">2019</td> <td style="padding-bottom: 1pt"> </td> <td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center">2018</td> <td style="padding-bottom: 1pt"> </td></tr> <tr style="vertical-align: bottom"> <td>Basic:</td> <td> </td> <td colspan="2"> </td> <td> </td> <td> </td> <td colspan="2"> </td> <td> </td> <td> </td> <td colspan="2"> </td> <td> </td> <td> </td> <td colspan="2"> </td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 40%; padding-bottom: 2.5pt; padding-left: 10pt">Weighted average shares outstanding</td> <td style="width: 1%; padding-bottom: 2.5pt"> </td> <td style="width: 1%; border-bottom: black 2.5pt double; text-align: left"> </td> <td style="width: 12%; border-bottom: black 2.5pt double; text-align: right">24,791,534</td> <td style="width: 1%; text-align: left"> </td> <td style="width: 1%; padding-bottom: 2.5pt"> </td> <td style="width: 1%; border-bottom: black 2.5pt double; text-align: left"> </td> <td style="width: 12%; border-bottom: black 2.5pt double; text-align: right">24,900,919</td> <td style="width: 1%; text-align: left"> </td> <td style="width: 1%; padding-bottom: 2.5pt"> </td> <td style="width: 1%; border-bottom: black 2.5pt double; text-align: left"> </td> <td style="width: 12%; border-bottom: black 2.5pt double; text-align: right">24,879,556</td> <td style="width: 1%; text-align: left"> </td> <td style="width: 1%; padding-bottom: 2.5pt"> </td> <td style="width: 1%; border-bottom: black 2.5pt double; text-align: left"> </td> <td style="width: 12%; border-bottom: black 2.5pt double; text-align: right">24,756,262</td> <td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Diluted:</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="padding-left: 10pt">Weighted average shares outstanding</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">24,791,534</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">24,900,919</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">24,879,556</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">24,756,262</td> <td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 1pt; padding-left: 10pt">Weighted average effects of dilutive securities</td> <td style="padding-bottom: 1pt"> </td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">180,091</td> <td style="text-align: left"> </td> <td style="padding-bottom: 1pt"> </td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">173,558</td> <td style="text-align: left"> </td> <td style="padding-bottom: 1pt"> </td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">182,793</td> <td style="text-align: left"> </td> <td style="padding-bottom: 1pt"> </td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">182,437</td> <td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="padding-bottom: 2.5pt; padding-left: 20pt">Total</td> <td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: black 2.5pt double; text-align: left"> </td> <td style="border-bottom: black 2.5pt double; text-align: right">24,971,625</td> <td style="text-align: left"> </td> <td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: black 2.5pt double; text-align: left"> </td> <td style="border-bottom: black 2.5pt double; text-align: right">25,074,477</td> <td style="text-align: left"> </td> <td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: black 2.5pt double; text-align: left"> </td> <td style="border-bottom: black 2.5pt double; text-align: right">25,062,349</td> <td style="text-align: left"> </td> <td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: black 2.5pt double; text-align: left"> </td> <td style="border-bottom: black 2.5pt double; text-align: right">24,938,699</td> <td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="padding-bottom: 2.5pt; text-align: left">Antidilutive securities:</td> <td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: black 2.5pt double; text-align: left"> </td> <td style="border-bottom: black 2.5pt double; text-align: right">283,459</td> <td style="text-align: left"> </td> <td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: black 2.5pt double; text-align: left"> </td> <td style="border-bottom: black 2.5pt double; text-align: right">202,750</td> <td style="text-align: left"> </td> <td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: black 2.5pt double; text-align: left"> </td> <td style="border-bottom: black 2.5pt double; text-align: right">283,459</td> <td style="text-align: left"> </td> <td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: black 2.5pt double; text-align: left"> </td> <td style="border-bottom: black 2.5pt double; text-align: right">202,750</td> <td style="text-align: left"> </td></tr> </table>    The effect of the inclusion of the antidilutive shares would have resulted in an increase in earnings per share. Accordingly, the weighted average shares outstanding have not been adjusted for antidilutive shares.

Note 1 - The Company and Basis of Presentation   Business Overview   Where Food Comes From, Inc. is a Colorado corporation based in Castle Rock, Colorado (“WFCF”, the “Company,” “our,” “we,” or “us”). We are an independent, third-party food verification company conducting both on-site and desk audits to verify that claims being made about livestock, food, other high-value specialty crops and agricultural products 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. We strive to ensure that everyone involved in the food business - from growers and farmers to retailers and shoppers – can count on WFCF to provide authentic and transparent information about the food we eat and how, where, and by whom it is produced.   We also provide sustainability programs, compliance management and farming information management solutions to drive sustainable value creation. We employ a software-as-a-service (“SaaS”) revenue model that bundles annual software licenses with ongoing software enhancements and upgrades and a wide range of professional services that generate incremental revenue specific to the food and agricultural industry. 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.    Most of our customers are located throughout the United States.   Basis of Presentation   Our unaudited consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”) and include the results of operations, financial position and cash flows of Where Food Comes From, Inc. and its subsidiaries, International Certification Services, Inc. (“ICS”), Validus Verifications Services, LLC (“Validus”), Sterling Solutions (“Sterling”), SureHarvest Services, Inc. (“SureHarvest”), A Bee Organic, Sow Organic and JVF Consulting (collectively referred to as “we,” “us,” and “our” throughout this Form 10-Q). The preparation of financial statements in conformity with GAAP requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues, costs and expenses during the reporting period. All significant intercompany transactions and amounts have been eliminated. The results of businesses acquired are included in the consolidated financial statements from the date of the acquisition. Actual results could differ from the estimates.    The consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) and should be read in conjunction with our audited financial statements and footnotes thereto for the year ended December 31, 2018, included in our Form 10-K filed on March 29, 2019. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been omitted pursuant to such rules and regulations. However, we believe that the disclosures are adequate to make the information presented not misleading. Certain prior year amounts have been reclassified to conform to current year presentation. Net income and shareholders’ equity were not affected by these reclassifications. The financial statements reflect all adjustments (consisting primarily of normal recurring adjustments) that are, in the opinion of management, necessary for a fair presentation of our financial position and results of operations. The consolidated operating results for the three and nine months ended September 30, 2019 are not necessarily indicative of the results to be expected for any other interim period of any future year.   Seasonality   Our business is subject to seasonal fluctuations. Significant portions of our verification and certification service revenue are typically realized during late May through early October when the calf marketings and the growing seasons are at their peak. Because of the seasonality of the business and our industry, results for any quarter are not necessarily indicative of the results that may be achieved for any other quarter or for the full fiscal year.   Recent Accounting Pronouncements   The Financial Accounting Standards Board (FASB) Accounting Standards Codification is the sole source of authoritative GAAP other than SEC issued rules and regulations that apply only to SEC registrants. The FASB issues an Accounting Standards Update (ASU) to communicate changes to the codification. The Company considers the applicability and impact of all ASU’s. ASU’s not listed below were assessed and determined to be either not applicable or are not expected to have a material impact on the consolidated financial statements.   Recently Adopted Accounting Pronouncements   In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), which requires lessees to recognize a right-of-use asset and a lease liability for all leases that are not short-term in nature. Accounting for finance leases is substantially unchanged. Topic 842 is effective for fiscal years beginning after December 15, 2018. We adopted the new lease standard as of January 1, 2019 using a modified retrospective transition. Under the effective date method, financial results reported in periods prior to 2019 are unchanged. We also elected the package of practical expedients, which among other things, does not require reassessment of lease classification.   To assist in quantifying the impact on our consolidated financial statements and supplementing our existing disclosures, we designed internal controls over the adoption and implemented a software solution to manage and account for our leases. The adoption had a significant impact on our consolidated balance sheet due to the recognition of approximately $3.90 million of operating lease liabilities with corresponding right-of-use (“ROU”) assets for operating leases of $3.44 million as of January 1, 2019. The difference between the lease liability and the ROU asset primarily represents the existing deferred rent liabilities balances before adoption, resulting from historical straight-lining of operating leases. Balances for deferred rent and lease incentive obligation, which were historically presented separately, were cleared to zero and reclassed to our operating ROU asset.   In September 2018, the FASB issued ASU 2018-07, Compensation-Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting, which simplifies the accounting for share-based payments made to nonemployees so the accounting for such payments is substantially the same as those made to employees. Under this ASU, share based awards to nonemployees will be measured at fair value on the grant date of the awards, entities will need to assess the probability of satisfying performance conditions if any are present, and awards will continue to be classified according to Accounting Standards Codification (“ASC”) 718 upon vesting which eliminates the need to reassess classification upon vesting, consistent with awards granted to employees. This ASU is effective for fiscal years beginning after December 15, 2018. The Company adopted the new guidance on January 1, 2019 and it did not have any effect on its consolidated financial statements.   Recently Issued Accounting Pronouncements   In September 2016 the FASB issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which adds a new Topic 326 to the Codification and removes the thresholds that companies apply to measure credit losses on financial instruments measured at amortized cost, such as loans, receivables, and held-to-maturity debt securities. Under current U.S. GAAP, companies generally recognize credit losses when it is probable that the loss has been incurred. The revised guidance will remove all recognition thresholds and will require companies to recognize an allowance for credit losses for the difference between the amortized cost basis of a financial instrument and the amount of amortized cost that the company expects to collect over the instrument’s contractual life. The Company is currently required to adopt the new standard in 2023.   In April 2017, the FASB issued ASU 2017-04, “Simplifying the Test for Goodwill Impairment,” which removes Step 2 from the goodwill impairment test. As a result, under the ASU, an entity should perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount and should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit.  The Company is required to adopt the new standard in 2020.   In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 8420): Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement.” ASU 2018-13 modifies the requirements associated with the hierarchy associated with Level 1, Level 2 and Level 3 fair value measurements. The provisions of this ASU are effective for reporting periods after December 15, 2019; early adoption is permitted. We are currently evaluating the effect that this ASU will have on our consolidated financial statements.   In August 2018 the FASB issued ASU 2018-15, Intangibles - Goodwill and Other - Internal Use Software - Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract, which amends the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract to align with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. The update is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted. The company does not expect the new guidance to have an impact on its consolidated financial statements.

Note 5 – Intangible and Other Assets   The following table summarizes our intangible and other assets:    <table cellspacing="0" cellpadding="0" style="width: 100%; border-collapse: collapse; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td> </td> <td> </td> <td colspan="2" style="text-align: center">September 30,</td> <td> </td> <td> </td> <td colspan="2" style="text-align: center">December 31,</td> <td> </td> <td> </td> <td style="text-align: center">Estimated</td></tr> <tr style="vertical-align: bottom"> <td> </td> <td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center">2019</td> <td style="padding-bottom: 1pt"> </td> <td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center">2018</td> <td style="padding-bottom: 1pt"> </td> <td style="padding-bottom: 1pt"> </td> <td style="border-bottom: black 1pt solid; text-align: center">Useful Life</td></tr> <tr style="vertical-align: bottom"> <td>Intangible assets subject to amortization: </td> <td> </td> <td colspan="2"> </td> <td> </td> <td> </td> <td colspan="2"> </td> <td> </td> <td> </td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 56%; text-align: left; padding-left: 10pt">Tradenames and trademarks</td> <td style="width: 1%"> </td> <td style="width: 1%; text-align: left">$</td> <td style="width: 11%; text-align: right">417,307</td> <td style="width: 1%; text-align: left"> </td> <td style="width: 1%"> </td> <td style="width: 1%; text-align: left">$</td> <td style="width: 11%; text-align: right">417,307</td> <td style="width: 1%; text-align: left"> </td> <td style="width: 1%"> </td> <td style="width: 15%; text-align: center; padding-left: 5.4pt">2.5  - 8.0 years</td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="padding-left: 10pt">Accreditations</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">85,395</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">85,395</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: center; padding-left: 5.4pt">5.0 years</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-left: 10pt">Customer relationships</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">3,350,551</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">3,350,551</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: center; padding-left: 5.4pt">3.0 - 15.0 years</td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="padding-left: 10pt">Patents</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">970,100</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">970,100</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: center; padding-left: 5.4pt">4.0 years</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 1pt; text-align: left; padding-left: 10pt">Non-compete agreements</td> <td style="padding-bottom: 1pt"> </td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">121,000</td> <td style="text-align: left"> </td> <td style="padding-bottom: 1pt"> </td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">121,000</td> <td style="text-align: left"> </td> <td style="padding-bottom: 1pt"> </td> <td style="padding-bottom: 1pt; text-align: center; padding-left: 5.4pt">5.0 years</td></tr> <tr style="vertical-align: bottom; background-color: white"> <td> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">4,944,353</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">4,944,353</td> <td style="text-align: left"> </td> <td> </td> <td style="padding-left: 5.4pt"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 1pt; text-align: left; padding-left: 20pt">Less accumulated amortization</td> <td style="padding-bottom: 1pt"> </td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">2,031,882</td> <td style="text-align: left"> </td> <td style="padding-bottom: 1pt"> </td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">1,577,558</td> <td style="text-align: left"> </td> <td style="padding-bottom: 1pt"> </td> <td style="padding-bottom: 1pt; padding-left: 5.4pt"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">2,912,471</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">3,366,795</td> <td style="text-align: left"> </td> <td> </td> <td style="padding-left: 5.4pt"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 1pt; text-align: left; padding-left: 10pt">Tradenames/trademarks (not subject to amortization)</td> <td style="padding-bottom: 1pt"> </td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">465,000</td> <td style="text-align: left"> </td> <td style="padding-bottom: 1pt"> </td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">465,000</td> <td style="text-align: left"> </td> <td style="padding-bottom: 1pt"> </td> <td style="padding-bottom: 1pt; padding-left: 5.4pt"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">3,377,471</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">3,831,795</td> <td style="text-align: left"> </td> <td> </td> <td style="padding-left: 5.4pt"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 1pt; text-align: left; padding-left: 10pt">Other assets</td> <td style="padding-bottom: 1pt"> </td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">20,326</td> <td style="text-align: left"> </td> <td style="padding-bottom: 1pt"> </td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">20,326</td> <td style="text-align: left"> </td> <td style="padding-bottom: 1pt"> </td> <td style="padding-bottom: 1pt; padding-left: 5.4pt"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="padding-bottom: 2.5pt; text-align: left; padding-left: 20pt">    Intangible and other assets:</td> <td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: black 2.5pt double; text-align: left">$</td> <td style="border-bottom: black 2.5pt double; text-align: right">3,397,797</td> <td style="text-align: left"> </td> <td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: black 2.5pt double; text-align: left">$</td> <td style="border-bottom: black 2.5pt double; text-align: right">3,852,121</td> <td style="text-align: left"> </td> <td style="padding-bottom: 2.5pt"> </td> <td style="padding-bottom: 2.5pt; padding-left: 5.4pt"> </td></tr> </table>

Note 4 - Investment in Progressive Beef, LLC   On August 9, 2018, the Company purchased a ten percent membership interest in Progressive Beef, LLC (“Progressive Beef”) for an aggregate purchase price of approximately $991,000. The purchase price was payable in cash of $900,000 and 50,340 shares of common stock of WFCF valued at approximately $91,100 based upon the closing price of our stock on August 9, 2018, of $1.81 per share. Where Food Comes From is the primary certifier for Progressive Beef. For the three months ended September 30, 2019, the Company received dividend income from Progressive Beef of $30,000 representing a distribution of their earnings. For the nine months ended September 30, 2019, the Company received dividend income totaling $90,000.  The income is reflected within the “other (expense) income” section of the Company’s Consolidated Statement of Income for the three and nine months ended September 30, 2019. The investment is accounted for as a financial instrument under ASC 321 and the Company has elected to apply the practical expedient to value the investment at cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or similar investment of the same issuer. The Company completed a qualitative assessment and determined that there were no impairment indicators as of September 30, 2019.

Note 6 – Accrued Expenses and Other Current Liabilities   The following table summarizes our accrued expenses and other current liabilities as of:   <table cellspacing="0" cellpadding="0" style="width: 70%; border-collapse: collapse; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td> </td> <td> </td> <td colspan="2" style="text-align: center">September 30,</td> <td> </td> <td> </td> <td colspan="2" style="text-align: center">December 31,</td> <td> </td></tr> <tr style="vertical-align: bottom"> <td> </td> <td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center">2019</td> <td style="padding-bottom: 1pt"> </td> <td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center">2018</td> <td style="padding-bottom: 1pt"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%; text-align: left">Income and sales taxes payable</td> <td style="width: 1%"> </td> <td style="width: 1%; text-align: left">$</td> <td style="width: 17%; text-align: right">36,616</td> <td style="width: 1%; text-align: left"> </td> <td style="width: 1%"> </td> <td style="width: 1%; text-align: left">$</td> <td style="width: 17%; text-align: right">19,978</td> <td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="text-align: left">Payroll related accruals</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">814,184</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">147,798</td> <td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Customer deposits</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">113,279</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">72,982</td> <td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="padding-bottom: 1pt; text-align: left">Professional fees and other expenses</td> <td style="padding-bottom: 1pt"> </td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">169,515</td> <td style="padding-bottom: 1pt; text-align: left"> </td> <td style="padding-bottom: 1pt"> </td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">251,843</td> <td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 2.5pt"> </td> <td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: black 2.5pt double; text-align: left">$</td> <td style="border-bottom: black 2.5pt double; text-align: right">1,133,594</td> <td style="padding-bottom: 2.5pt; text-align: left"> </td> <td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: black 2.5pt double; text-align: left">$</td> <td style="border-bottom: black 2.5pt double; text-align: right">492,601</td> <td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table>

Note 7 – Notes Payable   Notes Payable consist of the following:    <table cellspacing="0" cellpadding="0" style="width: 75%; border-collapse: collapse; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td> </td> <td> </td> <td colspan="2" style="text-align: center">September 30,</td> <td> </td> <td> </td> <td colspan="2" style="text-align: center">December 31,</td> <td> </td></tr> <tr style="vertical-align: bottom"> <td> </td> <td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center">2019</td> <td style="padding-bottom: 1pt"> </td> <td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center">2018</td> <td style="padding-bottom: 1pt"> </td></tr> <tr style="vertical-align: bottom"> <td> </td> <td> </td> <td colspan="2"> </td> <td> </td> <td> </td> <td colspan="2"> </td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 64%; text-align: left">Vehicle note</td> <td style="width: 1%"> </td> <td style="width: 1%; text-align: left">$</td> <td style="width: 15%; text-align: right">35,655</td> <td style="width: 1%; text-align: left"> </td> <td style="width: 1%"> </td> <td style="width: 1%; text-align: left">$</td> <td style="width: 15%; text-align: right">42,393</td> <td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="padding-bottom: 1pt; text-align: left">Less current portion of notes payable and other long-term debt</td> <td style="padding-bottom: 1pt"> </td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">(10,689</td> <td style="padding-bottom: 1pt; text-align: left">)</td> <td style="padding-bottom: 1pt"> </td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">(10,173</td> <td style="padding-bottom: 1pt; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 2.5pt; text-align: left">Notes payable and other long-term debt</td> <td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: black 2.5pt double; text-align: left">$</td> <td style="border-bottom: black 2.5pt double; text-align: right">24,966</td> <td style="padding-bottom: 2.5pt; text-align: left"> </td> <td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: black 2.5pt double; text-align: left">$</td> <td style="border-bottom: black 2.5pt double; text-align: right">32,220</td> <td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table>   In September 2017, we entered into a note payable of $54,165 for the purchase of a vehicle. Interest and principal payments are due in equal monthly installments of $1,087 over five years beginning October 2017. This note bears an interest rate of 7.44% per annum and is fully secured by the vehicle.   Unison Revolving Line of Credit   The Company has a revolving line of credit (“LOC”) agreement which matures April 12, 2020.  The LOC provides for $75,080 in working capital. The interest rate is at the Wall Street Journal prime rate plus 1.50% and is adjusted daily.  Principal and interest are payable upon demand, but if demand is not made, then annual payments of accrued interest only are due, with the principal balance due on maturity.  As of September 30, 2019 and December 31, 2018, the effective interest rate was 6.5% and 7.0%, respectively. The LOC is collateralized by all the business assets of ICS.  As of September 30, 2019, and December 31, 2018, there were no amounts outstanding under this LOC.

Note 8 – Stock-Based Compensation    In addition to cash compensation, the Company may compensate certain service providers, including employees, directors, consultants, and other advisors, with equity-based compensation in the form of stock options and restricted stock awards.  The Company recognizes all equity-based compensation as stock-based compensation expense based on the fair value of the compensation measured at the grant date. For stock options, fair value is calculated at the date of grant using the Black-Scholes-Merton option pricing model.  For restricted stock awards, fair value is the closing stock price for the Company’s common stock on the grant date. The expense is recognized over the vesting period of the grant.  For the periods presented, all stock-based compensation expense was classified as a component within selling, general and administrative expense in the Company’s consolidated statements of operations.   The amount of stock-based compensation expense is as follows:    <table cellspacing="0" cellpadding="0" align="center" style="width: 95%; border-collapse: collapse; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td> </td> <td> </td> <td colspan="6" style="text-align: center">Three months ended September 30,</td> <td> </td> <td> </td> <td colspan="6" style="text-align: center">Nine months ended September 30,</td> <td> </td></tr> <tr style="vertical-align: bottom"> <td> </td> <td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center">2019</td> <td style="padding-bottom: 1pt"> </td> <td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center">2018</td> <td style="padding-bottom: 1pt"> </td> <td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center">2019</td> <td style="padding-bottom: 1pt"> </td> <td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center">2018</td> <td style="padding-bottom: 1pt"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 40%; text-align: left">Stock options</td> <td style="width: 1%"> </td> <td style="width: 1%; text-align: left">$</td> <td style="width: 12%; text-align: right">33,975</td> <td style="width: 1%; text-align: left"> </td> <td style="width: 1%"> </td> <td style="width: 1%; text-align: left">$</td> <td style="width: 12%; text-align: right">28,445</td> <td style="width: 1%; text-align: left"> </td> <td style="width: 1%"> </td> <td style="width: 1%; text-align: left">$</td> <td style="width: 12%; text-align: right">113,857</td> <td style="width: 1%; text-align: left"> </td> <td style="width: 1%"> </td> <td style="width: 1%; text-align: left">$</td> <td style="width: 12%; text-align: right">64,820</td> <td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="padding-bottom: 1pt; text-align: left">Restricted stock awards</td> <td style="padding-bottom: 1pt"> </td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">2,697</td> <td style="padding-bottom: 1pt; text-align: left"> </td> <td style="padding-bottom: 1pt"> </td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">16,773</td> <td style="padding-bottom: 1pt; text-align: left"> </td> <td style="padding-bottom: 1pt"> </td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">14,613</td> <td style="padding-bottom: 1pt; text-align: left"> </td> <td style="padding-bottom: 1pt"> </td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">60,419</td> <td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 2.5pt; padding-left: 10pt">Total</td> <td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: black 2.5pt double; text-align: left">$</td> <td style="border-bottom: black 2.5pt double; text-align: right">36,672</td> <td style="padding-bottom: 2.5pt; text-align: left"> </td> <td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: black 2.5pt double; text-align: left">$</td> <td style="border-bottom: black 2.5pt double; text-align: right">45,218</td> <td style="padding-bottom: 2.5pt; text-align: left"> </td> <td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: black 2.5pt double; text-align: left">$</td> <td style="border-bottom: black 2.5pt double; text-align: right">128,470</td> <td style="padding-bottom: 2.5pt; text-align: left"> </td> <td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: black 2.5pt double; text-align: left">$</td> <td style="border-bottom: black 2.5pt double; text-align: right">125,239</td> <td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table>    During three months ended March 31, 2018, the Company awarded stock options to purchase 25,000 shares of the Company’s common stock at an exercise price of $2.55 per share to one of our business consultants. During the three months ended September 30, 2019, the Company awarded stock options to purchase 10,000 shares of the Company’s common stock at an exercise price of $1.71 per share to the members on the Company’s Board of Directors.  No other stock options were awarded during the nine months ended September 30, 2019.   The Company estimated the fair value of stock options using the Black-Scholes-Merton option pricing model with the following assumptions:    <table cellspacing="0" cellpadding="0" align="center" style="width: 90%; border-collapse: collapse; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td> </td> <td> </td> <td colspan="6" style="text-align: center">Nine months ended September 30,</td> <td> </td></tr> <tr style="vertical-align: bottom"> <td> </td> <td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center">2019</td> <td style="padding-bottom: 1pt"> </td> <td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center">2018</td> <td style="padding-bottom: 1pt"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 68%; text-align: left">Number of options awarded to purchase common shares</td> <td style="width: 1%"> </td> <td style="width: 1%; text-align: left"> </td> <td style="width: 13%; text-align: right">10,000</td> <td style="width: 1%; text-align: left"> </td> <td style="width: 1%"> </td> <td style="width: 1%; text-align: left"> </td> <td style="width: 13%; text-align: right">105,750</td> <td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="text-align: left">Risk-free interest rate</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">1.50%</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">2.6% - 2.8%</td> <td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Expected volatility</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">100.3%</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">149.3 - 154.3%</td> <td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="text-align: left">Assumed dividend yield</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">N/A</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">N/A</td> <td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Expected life of options from the date of grant</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">9.8 years</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">9.8 years</td> <td style="text-align: left"> </td></tr> </table>    The estimated unrecognized compensation cost from unvested awards which will be recognized ratably over the remaining vesting phase is as follows:    <table cellspacing="0" cellpadding="0" align="center" style="width: 80%; border-collapse: collapse; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td style="border-bottom: black 1pt solid; text-align: left">Years ended December 31st:</td> <td style="padding-bottom: 1pt"> </td> <td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center">Unvested stock options</td> <td style="padding-bottom: 1pt"> </td> <td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center">Unvested restricted stock awards</td> <td style="padding-bottom: 1pt"> </td> <td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center">Total unrecognized compensation expense</td> <td style="padding-bottom: 1pt"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 45%; text-align: left">2019 (remaining three months)</td> <td style="width: 1%; text-align: left"> </td> <td style="width: 1%"> </td> <td style="width: 1%; text-align: left"> </td> <td style="width: 15%; text-align: right">36,909</td> <td style="width: 1%; text-align: left"> </td> <td style="width: 1%"> </td> <td style="width: 1%; text-align: left"> </td> <td style="width: 15%; text-align: right">1,061</td> <td style="width: 1%; text-align: left"> </td> <td style="width: 1%"> </td> <td style="width: 1%; text-align: left"> </td> <td style="width: 15%; text-align: right">37,970</td> <td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="text-align: left">2020</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">113,378</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">4,251</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">117,629</td> <td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">2021</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">70,896</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">706</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">71,602</td> <td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="text-align: left">2022</td> <td style="padding-bottom: 1pt; text-align: left"> </td> <td style="padding-bottom: 1pt"> </td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">3,722</td> <td style="padding-bottom: 1pt; text-align: left"> </td> <td style="padding-bottom: 1pt"> </td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">—</td> <td style="padding-bottom: 1pt; text-align: left"> </td> <td style="padding-bottom: 1pt"> </td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">3,722</td> <td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left"> </td> <td style="padding-bottom: 2.5pt; text-align: left"> </td> <td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: black 2.5pt double; text-align: left">$</td> <td style="border-bottom: black 2.5pt double; text-align: right">224,905</td> <td style="padding-bottom: 2.5pt; text-align: left"> </td> <td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: black 2.5pt double; text-align: left">$</td> <td style="border-bottom: black 2.5pt double; text-align: right">6,018</td> <td style="padding-bottom: 2.5pt; text-align: left"> </td> <td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: black 2.5pt double; text-align: left">$</td> <td style="border-bottom: black 2.5pt double; text-align: right">230,923</td> <td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table>    Equity Incentive Plans   Our 2016 Equity Incentive Plan (the “Equity Incentive Plan”) provides for the issuance of stock-based awards to employees, officers, directors and consultants. The Plan permits the granting of stock awards and stock options.  The vesting of stock-based awards is generally subject to the passage of time and continued employment through the vesting period.   Stock Option Activity   Stock option activity under our Equity Incentive Plan is summarized as follows:    <table cellspacing="0" cellpadding="0" style="width: 100%; border-collapse: collapse; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td style="text-align: left"> </td> <td> </td> <td> </td> <td colspan="2"> </td> <td> </td> <td> </td> <td colspan="2"> </td> <td> </td> <td> </td> <td colspan="2"> </td> <td> </td> <td> </td> <td colspan="2" style="text-align: center">Weighted avg.</td> <td> </td> <td> </td> <td colspan="2"> </td> <td> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: left"> </td> <td> </td> <td> </td> <td colspan="2"> </td> <td> </td> <td> </td> <td colspan="2" style="text-align: center">Weighted avg.</td> <td> </td> <td> </td> <td colspan="2" style="text-align: center">Weighted avg.</td> <td> </td> <td> </td> <td colspan="2" style="text-align: center">remaining</td> <td> </td> <td> </td> <td colspan="2"> </td> <td> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: left"> </td> <td> </td> <td> </td> <td colspan="2" style="text-align: center">Number of</td> <td> </td> <td> </td> <td colspan="2" style="text-align: center">exercise price</td> <td> </td> <td> </td> <td colspan="2" style="text-align: center">grant date fair</td> <td> </td> <td> </td> <td colspan="2" style="text-align: center">contractual life</td> <td> </td> <td> </td> <td colspan="2" style="text-align: center">Aggregate</td> <td> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: left"> </td> <td style="padding-bottom: 1pt"> </td> <td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center">awards</td> <td style="padding-bottom: 1pt"> </td> <td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center">per share</td> <td style="padding-bottom: 1pt"> </td> <td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center">value per share</td> <td style="padding-bottom: 1pt"> </td> <td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center">(in years)</td> <td style="padding-bottom: 1pt"> </td> <td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center">intrinsic value</td> <td style="padding-bottom: 1pt"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: left"> </td> <td> </td> <td> </td> <td colspan="2"> </td> <td> </td> <td> </td> <td colspan="2"> </td> <td> </td> <td> </td> <td colspan="2"> </td> <td> </td> <td> </td> <td colspan="2"> </td> <td> </td> <td> </td> <td colspan="2"> </td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 34%; text-align: left">Outstanding, December 31, 2018</td> <td style="width: 1%; padding-bottom: 2.5pt; text-align: left"> </td> <td style="width: 1%; padding-bottom: 2.5pt"> </td> <td style="width: 1%; text-align: left"> </td> <td style="width: 10%; text-align: right">434,451</td> <td style="width: 1%; padding-bottom: 2.5pt; text-align: left"> </td> <td style="width: 1%; padding-bottom: 2.5pt"> </td> <td style="width: 1%; text-align: left">$</td> <td style="width: 10%; text-align: right">1.49</td> <td style="width: 1%; padding-bottom: 2.5pt; text-align: left"> </td> <td style="width: 1%; padding-bottom: 2.5pt"> </td> <td style="width: 1%; text-align: left">$</td> <td style="width: 10%; text-align: right">1.47</td> <td style="width: 1%; padding-bottom: 2.5pt; text-align: left"> </td> <td style="width: 1%; padding-bottom: 2.5pt"> </td> <td style="width: 1%; text-align: left"> </td> <td style="width: 10%; text-align: right">6.91</td> <td style="width: 1%; padding-bottom: 2.5pt; text-align: left"> </td> <td style="width: 1%; padding-bottom: 2.5pt"> </td> <td style="width: 1%; border-bottom: black 2.5pt double; text-align: left">$</td> <td style="width: 10%; border-bottom: black 2.5pt double; text-align: right">230,039</td> <td style="width: 1%; padding-bottom: 2.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="text-align: left; padding-left: 10pt">Granted</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">10,000</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left">$</td> <td style="text-align: right">1.53</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left">$</td> <td style="text-align: right">1.71</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">10.00</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left">$</td> <td style="text-align: right">—</td> <td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-left: 10pt">Exercised</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">—</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left">$</td> <td style="text-align: right">—</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left">$</td> <td style="text-align: right">—</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">—</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left">$</td> <td style="text-align: right">—</td> <td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="text-align: left; padding-left: 10pt">Expired/Forfeited</td> <td style="padding-bottom: 1pt; text-align: left"> </td> <td style="padding-bottom: 1pt"> </td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">(7,325</td> <td style="padding-bottom: 1pt; text-align: left">)</td> <td style="padding-bottom: 1pt"> </td> <td style="border-bottom: black 1pt solid; text-align: left">$</td> <td style="border-bottom: black 1pt solid; text-align: right">1.83</td> <td style="padding-bottom: 1pt; text-align: left"> </td> <td style="padding-bottom: 1pt"> </td> <td style="border-bottom: black 1pt solid; text-align: left">$</td> <td style="border-bottom: black 1pt solid; text-align: right">1.86</td> <td style="padding-bottom: 1pt; text-align: left"> </td> <td style="padding-bottom: 1pt"> </td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">—</td> <td style="padding-bottom: 1pt; text-align: left"> </td> <td style="padding-bottom: 1pt"> </td> <td style="border-bottom: black 1pt solid; text-align: left">$</td> <td style="border-bottom: black 1pt solid; text-align: right">—</td> <td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Outstanding, September 30, 2019</td> <td style="padding-bottom: 2.5pt; text-align: left"> </td> <td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: black 2.5pt double; text-align: left"> </td> <td style="border-bottom: black 2.5pt double; text-align: right">437,126</td> <td style="padding-bottom: 2.5pt; text-align: left"> </td> <td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: black 2.5pt double; text-align: left">$</td> <td style="border-bottom: black 2.5pt double; text-align: right">1.46</td> <td style="padding-bottom: 2.5pt; text-align: left"> </td> <td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: black 2.5pt double; text-align: left">$</td> <td style="border-bottom: black 2.5pt double; text-align: right">1.49</td> <td style="padding-bottom: 2.5pt; text-align: left"> </td> <td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: black 2.5pt double; text-align: left"> </td> <td style="border-bottom: black 2.5pt double; text-align: right">6.23</td> <td style="padding-bottom: 2.5pt; text-align: left"> </td> <td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: black 2.5pt double; text-align: left">$</td> <td style="border-bottom: black 2.5pt double; text-align: right">148,775</td> <td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="text-align: left">Exercisable, September 30, 2019</td> <td style="padding-bottom: 2.5pt; text-align: left"> </td> <td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: black 2.5pt double; text-align: left"> </td> <td style="border-bottom: black 2.5pt double; text-align: right">256,919</td> <td style="padding-bottom: 2.5pt; text-align: left"> </td> <td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: black 2.5pt double; text-align: left">$</td> <td style="border-bottom: black 2.5pt double; text-align: right">1.21</td> <td style="padding-bottom: 2.5pt; text-align: left"> </td> <td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: black 2.5pt double; text-align: left">$</td> <td style="border-bottom: black 2.5pt double; text-align: right">1.22</td> <td style="padding-bottom: 2.5pt; text-align: left"> </td> <td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: black 2.5pt double; text-align: left"> </td> <td style="border-bottom: black 2.5pt double; text-align: right">4.43</td> <td style="padding-bottom: 2.5pt; text-align: left"> </td> <td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: black 2.5pt double; text-align: left">$</td> <td style="border-bottom: black 2.5pt double; text-align: right">148,775</td> <td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Unvested, September 30, 2019</td> <td style="padding-bottom: 2.5pt; text-align: left"> </td> <td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: black 2.5pt double; text-align: left"> </td> <td style="border-bottom: black 2.5pt double; text-align: right">180,207</td> <td style="padding-bottom: 2.5pt; text-align: left"> </td> <td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: black 2.5pt double; text-align: left">$</td> <td style="border-bottom: black 2.5pt double; text-align: right">1.81</td> <td style="padding-bottom: 2.5pt; text-align: left"> </td> <td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: black 2.5pt double; text-align: left">$</td> <td style="border-bottom: black 2.5pt double; text-align: right">1.88</td> <td style="padding-bottom: 2.5pt; text-align: left"> </td> <td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: black 2.5pt double; text-align: left"> </td> <td style="border-bottom: black 2.5pt double; text-align: right">8.78</td> <td style="padding-bottom: 2.5pt; text-align: left"> </td> <td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: black 2.5pt double; text-align: left">$</td> <td style="border-bottom: black 2.5pt double; text-align: right">—</td> <td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table>    The aggregate intrinsic value represents the total pre-tax intrinsic value (the aggregate difference between the closing price of our common stock on September 30, 2019 and the exercise price for the in-the-money options) that would have been received by the option holders if all the in-the-money options had been exercised on September 30, 2019.   Restricted Stock Activity   Restricted stock activity under our Equity Incentive Plan is summarized as follows:    <table cellspacing="0" cellpadding="0" align="center" style="width: 76%; border-collapse: collapse; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td style="text-align: left"> </td> <td> </td> <td> </td> <td colspan="2"> </td> <td> </td> <td> </td> <td colspan="2" style="text-align: center">Weighted avg.</td> <td> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: left"> </td> <td> </td> <td> </td> <td colspan="2" style="text-align: center">Number of</td> <td> </td> <td> </td> <td colspan="2" style="text-align: center">grant date</td> <td> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: left"> </td> <td style="padding-bottom: 1pt"> </td> <td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center">options</td> <td style="padding-bottom: 1pt"> </td> <td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center">fair value</td> <td style="padding-bottom: 1pt"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 63%; text-align: left">Non-vested restricted shares, December 31, 2018</td> <td style="width: 1%; text-align: left"> </td> <td style="width: 1%"> </td> <td style="width: 1%; text-align: left"> </td> <td style="width: 15%; text-align: right">30,000</td> <td style="width: 1%; text-align: left"> </td> <td style="width: 1%"> </td> <td style="width: 1%; text-align: left">$</td> <td style="width: 15%; text-align: right">2.38</td> <td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="text-align: left; padding-left: 10pt">Granted</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">—</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left">$</td> <td style="text-align: right">—</td> <td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-left: 10pt">Vested</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">(25,000</td> <td style="text-align: left">)</td> <td> </td> <td style="text-align: left">$</td> <td style="text-align: right">2.35</td> <td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="text-align: left; padding-left: 10pt">Forfeited</td> <td style="padding-bottom: 1pt; text-align: left"> </td> <td style="padding-bottom: 1pt"> </td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">—</td> <td style="padding-bottom: 1pt; text-align: left"> </td> <td style="padding-bottom: 1pt"> </td> <td style="text-align: left">$</td> <td style="text-align: right">—</td> <td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Non-vested restricted shares, September 30, 2019</td> <td style="padding-bottom: 2.5pt; text-align: left"> </td> <td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: black 2.5pt double; text-align: left"> </td> <td style="border-bottom: black 2.5pt double; text-align: right">5,000</td> <td style="padding-bottom: 2.5pt; text-align: left"> </td> <td style="padding-bottom: 2.5pt"> </td> <td style="text-align: left">$</td> <td style="text-align: right">2.55</td> <td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table>

Note 9 – Income Taxes   Deferred tax assets and liabilities have been determined based upon the differences between the financial statement amounts and the tax bases of assets and liabilities as measured by enacted tax rates expected to be in effect when these differences are expected to reverse. In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized.   The Company’s subsidiary, SureHarvest, is a California limited liability company (“LLC”). As an LLC, management believes SureHarvest is not subject to income taxes, and such taxes are the responsibility of the respective members. The Company is not providing for income taxes for the 40% interest owned by unrelated members of SureHarvest.   The provision or benefit for income taxes is recorded at the end of each interim period based on the Company’s best estimate of its effective income tax rate expected to be applicable for the full fiscal year.  For the three and nine months ended September 30, 2019 we recorded an income tax expense of approximately $184,000 and $230,100, respectively, compared to income tax expense of $169,000 and $257,000 for the same 2018 periods.

Note 10 - Revenue Recognition   Verification and Certification Segment   We offer a range of products and services to maintain identification, traceability, and verification systems. We conduct both on-site and desk audits to verify that claims being made about livestock, food, other high-value specialty crops and agricultural products are accurate. We generate revenue primarily from the sale of our verification solutions, consulting services and hardware sales. We sell our products and services directly to customers at various levels in the livestock and agricultural supply chains.   Verification and certification service revenue primarily consists of fees charged for verification audits and other verification services that the Company performs for customers.   A more detailed summary of our verification and certification services is included in the subsections below.   Animal Verification and Certification Services   Our animal verification and certification services contracts are generally structured in one of the following ways: (i) we commit to perform the required number of animal audits to verify a customer’s compliance with a standard or claim, or (ii) we commit to perform animal audit services at a fixed price by site or location type as requested by our customer during an annual period. These contract structures are discussed in more detail in the subsections below.    Contract to Provide Required Number of Animal Audit Services   For certain of our animal verification and certification services, we commit to perform the required number of location or site audits within our customer’s supply chain to verify customer’s compliance with a contractually-specified standard or claim. Each location or site audit is typically very short-term in nature, with a typical duration of one to two weeks. Upon completion of an audit, we provide the customer with an audit verification report for the specific site or location that was audited. Payment is made by customer upon completion of each site or location audit.   We generally enter into revenue contracts with a one-year term. Our customers generally have the right to terminate the contract without prejudice with thirty days’ written notice. We have determined that, as a result of the termination provisions present in these contracts, the accounting contract term is a thirty-day period, with each thirty-day time increment representing a separate accounting contract under ASC 606.   Furthermore, we have concluded that there is a single performance obligation that is a series comprised of each distinct location or site audit performed. Our customers are charged a standard daily rate for the provision of an audit based on the scale of site operations and geographical location. Consideration attributable to each audit within the series is variable, as the number of days required to complete each audit is not known until performance of that audit occurs. We have concluded that it is appropriate to allocate variable consideration (that is, the number of days required to complete an audit) to each audit within the series. This is because the consideration that we earn for each audit relates specifically to our efforts to transfer to our customer that discrete audit, and the resulting audit opinion or verification report, for that specified site or location, and this allocation is consistent with the allocation objective as defined in ASC 606. As a result, instances in which the Company evaluates and applies the constraint on variable consideration are immaterial.   We further concluded that over-time recognition is appropriate because: (i) our performance of audits does not create an asset with an alternative use, as the audit and related verification report relates to facts and circumstances that are specific to each customer site or location (that is, there is a practical limitation on our ability to readily direct the asset to another customer) and (ii) we have an enforceable right to payment, inclusive of a reasonable profit, for performance completed to date. We utilize an input method to measure over-time progress of each audit within the series based on the number of audit days performed.   We do, however, note that there are instances in which we only have an enforceable right to payment upon completion of an audit, and thus, over-time recognition is not permitted. For these contracts, revenue is recognized at the point in time at which an audit is completed. This does not result in a significant difference in the timing of revenue recognition (as compared to those audits that are recognized over time) due to the very short-term duration of an audit.   Our customers may also have the option to purchase incremental review services (for example, an investigative audit or video review services) that are unrelated to the audit services to verify compliance with a specified standard or claim. The incremental review services are also typically very short-term in nature (that is, one to two weeks). We have concluded that these optional purchases do not reflect a material right under ASC 606 because the incremental review services are performed at standard pricing that would be charged to other similarly situated customers. Upon customer request for an incremental review service, we believe that our customer has made a discrete purchasing decision that should be treated as a separate accounting contract under ASC 606.    We charge a fixed fee for the incremental review service, and thus, upon customer request, we are entitled to fixed consideration for that service under ASC 606. We concluded that over-time revenue recognition is appropriate for incremental review services because: (i) our performance of incremental review services does not create an asset with an alternative use because that review service, and the associated customer deliverable, relates to facts and circumstances that are specific to each customer site or location (that is, there is a practical limitation on our ability to readily direct the asset to another customer) and (ii) we have an enforceable right to payment, inclusive of a reasonable profit, for performance completed to date on incremental review services. We utilize a time-based input method to measure progress toward complete satisfaction of an incremental review service, which is based on the number of hours performed on the incremental review service relative to the total number of hours required to complete that review service. As previously mentioned, our incremental review services are typically completed within one to two weeks of a customer request.   Contract to Provide Animal Audit Services at Customer Request   Other animal verification and certification services contracts are structured such that we commit to perform audit services at a fixed price by site or location type as requested by our customer during an annual period. Performance of an audit typically occurs within a one to two-week period. We invoice our customer upon completion of an audit, and payment is due from customer within thirty days or less of receipt of invoice.   Under this contract structure, the customer is, in effect, provided a pricing list for animal audit services, and pricing is effective over a one-year period. We have concluded that enforceable rights and obligations do not arise until a customer actually engages us to perform an audit service documented in the pricing list; therefore, each customer request represents a purchasing decision that is a separate accounting contract under ASC 606.    We note that the termination provisions specified in our pricing lists vary. In certain instances, a customer may only have the right to terminate in the event of non-performance. Alternatively, in other contracts, a customer may have the right to terminate without prejudice at any time or with thirty days’ written notice. However, regardless of the termination provision specified, we have concluded that the accounting contract term is equal to the duration of the requested audit service (that is, the termination provisions generally do not affect the accounting contract term for each requested audit service).   Upon a customer’s request for an audit service, consideration is fixed, as we charge the customer a fixed fee by audit type over the annual period per the pricing list.   We concluded that over-time revenue recognition is appropriate for a requested audit service because: (i) our performance of the requested audit service does not create an asset with an alternative use as that audit, and the associated audit report, relate to facts and circumstances that are specific to each customer site or location (that is, there is a practical limitation on our ability to readily direct the asset to another customer) and (ii) we have an enforceable right to payment, inclusive of a reasonable profit, for performance completed to date on a requested audit. A time-based input method is utilized to measure progress toward complete satisfaction of an audit based on the number of hours performed on that audit relative to the total number of hours expected to be required to complete the audit. As previously mentioned, our audit services are typically completed within one to two weeks of a customer request.    Other Considerations for Animal Certification and Verification Services   In connection with the provision of on-site audits related to animal certification and verification services, reimbursable expenses are incurred and billed to customers, and such amounts are recognized on a gross basis as both revenue and cost of revenue.   Any amounts collected on behalf of a third-party and remitted in full to that third-party are excluded from the transaction price and, thus, revenue.   Crop and Other Processed Product Verification and Certification Services   Third-party crop and other processed product audits are generally structured such that we commit to perform an independent audit to verify that food producers and/or farmers comply with certain standards. We generally provide verification services related to organic, Non-GMO and gluten-free standards. Depending on the crop or product type, verification audit activities may take two months to one year to complete. During this assessment period, various integrated audit activities and/or input reviews are performed in accordance with the regulations specified by the relevant standard.   The fee structure is such that customers pay an annual assessment fee for a crop or other processed product to verify compliance with the specified standard. This fee is payable upfront on a nonrefundable basis. Our customers can typically terminate a crop or other processed product audit at any time without prejudice. However, given the nonrefundable upfront payment structure for the annual assessment service, we have concluded that the contract term is one year. We record the upfront payment made by the customer for the annual assessment service as deferred revenue.   The audit activities and input reviews required in the provision of an annual assessment are not distinct under ASC 606, and consequently, we account for an annual assessment as a single integrated performance obligation.   For certain of our third-party crop and other processed product audits, the annual assessment fee is fixed for the annual period. In other scenarios, the annual assessment fee may be variable due to increased review activities required for incremental inputs to a crop or processed product identified through the assessment process. At the time that an incremental input is identified, which generally occurs in the early stages of an annual assessment, the incremental consideration for the provision of review services related to that incremental input also becomes known.    We allocate the transaction price derived from the annual assessment fee to the single integrated performance obligation for that annual assessment. Revenue related to the annual assessment is recognized over time in accordance with ASC 606. This is because the annual assessment service does not create an asset with an alternative use, as it relates to facts and circumstances that are specific to a customer’s crop or processed product. Further, we have an enforceable right to payment for performance completed to date on the annual assessment due to the nonrefundable upfront payment made by customer. We utilize an input method to measure progress toward satisfaction of the annual assessment based on the percentage of activities/phases or input reviews completed under the annual assessment.   As it relates to the upfront payment for the annual assessment, we have utilized the practical expedient that exempts us from adjusting consideration for the effects of a significant financing component when we expect that the period between customer payment and the provision of the related service is one year or less.   In certain contracts, an independent third-party inspection may be required for a site or location in our customer’s supply chain in accordance with the regulations for a specified standard. An inspection is performed by an independent third-party inspector, and the customer is charged an hourly rate for these inspection services.    Under this scenario, a separate accounting contract arises upon initiation and performance of an inspection, and we typically invoice our customer for the inspection upon completion of the inspection service. Given that the customer has the ability to terminate at any time without prejudice, we have concluded that the contract term for each inspection ends as control of an inspection service transfers. Inspections are generally short-term in nature with a term ranging from a few days to two weeks.   We have further determined that inspections are distinct from an annual assessment. Consideration attributable to an inspection is variable, as the inspector is only able to provide a high-level estimate of the cost of the inspection based on the inspector’s hourly rate until the inspector is at the relevant producer/supplier site to determine the time and level of effort required to complete the inspection. Given the very short-term nature of an inspection, variability related to an inspection generally resolves itself within a reporting period. However, we are typically required by certain regulations to provide an inspection cost estimate to our customer, and, if required, we utilize that estimate as our estimate of variable consideration. The cost estimate is generally derived from the cost to perform the prior-year inspection for that specific customer site or location or, when required, the historical cost to provide an inspection for a comparable site or location. In our experience, the historical cost of inspections has been predictive of the future cost of an inspection.   Other Considerations for Crop and Other Processed Product Verification Services   Reimbursable expenses incurred in the provision of an annual assessment or required inspection are billed to our customers, and such amounts are recognized on a gross basis as both revenue and cost of revenue.   In addition, any amounts collected on behalf of a third-party and remitted in full to that third-party are excluded from the transaction price and, thus, revenue.   Product Sales   Product sales are primarily generated from the sale of cattle identification ear tags. Each customer purchase request represents a purchasing decision made by customer. As such, enforceable rights and obligations (and, thus, a separate accounting contract under ASC 606) arise at the time a customer submits its purchase request to us. At the time of request, we are entitled to fixed consideration, as the sales quantity and related price of the product is known. All of our customers are charged the same fixed price per tag.   Revenue for product sales is recognized upon delivery of the goods to customer, at which point title, custody and risk of loss transfer to the customer. We typically deliver product to the customer within a few days of customer’s sales request. At the time of delivery, we invoice our customer for the related product sales and record invoiced amounts to accounts receivable. Payment is typically due by customer upon receipt of invoice.   In relation to our product sales, the sales taxes collected from customers and remitted to government authorities are excluded from revenue.   Additionally, we do not typically provide right of return or warranty on product sales.   Software Sales and Related Consulting Segment   We predominately offer software products via a SaaS model, which is an annual subscription-based model. Support services are generally included in the subscription. We also provide web-hosting services on an annual basis to all of our customers in conjunction with their software subscription. Customers have the ability to terminate without prejudice upon thirty days’ written notice; however, the subscription fee, inclusive of maintenance and support services, and the web-hosting fee are paid upfront by the customer on a nonrefundable basis. Consequently, we have concluded that the contract term for the annual software subscription and web-hosting services is one year.   We have determined that a software license subscription and the related hosting service should be accounted for as a service transaction, as we provide the functionality of our software through the hosting arrangement. The SaaS arrangement provides customers with unlimited access to our software and, thus, is accounted for as a series of distinct daily service periods that provide substantially the same service (that is, continuous access to the hosted software) each day during the annual contract term. Further, the provision of basic technical support services also represents a stand-ready obligation that is a series of distinct daily service periods that provide substantially the same service (that is, access to our technical support infrastructure) during the annual contract term. Because the basic technical support services and SaaS each represent performance obligations that are a series of distinct daily service periods, we have elected to combine these performance obligations.   We are entitled to fixed consideration for the software license subscription, inclusive of support services, and the related hosting service. The software license subscription and hosting fees in our contracts represent the standalone selling price for that related service. This is because the fees charged for the software license subscription and hosting service represent the software license subscription and hosting service fees that are charged to other customers with a similar level of data loaded into the software (regardless of whether that customer contracts for professional services). Accordingly, the software license subscription and hosting fees are allocated to the combined SaaS performance obligation.   We recognize revenue related to the SaaS arrangement over time because a customer simultaneously receives and consumes the benefit from the provision of access to the hosted software over the annual subscription period. Accordingly, we utilize a time-based output measure of progress that results in a straight-line attribution of revenue. That is, revenue related to the combined SaaS obligation should be recognized daily on a straight-line basis over the one-year subscription term, as this reflects the direct measurement of value to a customer of the provision of access to the software via hosting each day.   As it relates to the upfront payment for the software subscription and hosting service, we have utilized the practical expedient that exempts us from adjusting consideration for the effects of a significant financing component when we expect that the period between customer payment and the provision of the related service is one year or less.   In addition, we record the upfront payment made by customer for the annual assessment service as deferred revenue.   In some of our SaaS contracts, we also provide software-related consulting services to our customers during an annual software subscription period. Consulting services fees are derived from a standard rate card by employee level, and we invoice for consulting services monthly on a time-incurred basis. Due to the termination provisions present in our SaaS contracts, our customers have an in-substance renewal decision each month for further consulting services (that is, via their decision not to terminate the contract each month). Accordingly, the contract term for consulting services is on a month-to-month basis within the annual subscription period.   We have concluded that consulting services are distinct from the SaaS arrangement. To the extent that consulting services result in a software enhancement or new functionality, we have determined that those consulting services are still distinct because added features typically provide new, discrete capabilities with independent value to a customer and a customer accesses the SaaS in a single-tenant architecture. Further, additional features and functionality are often made available to a customer substantially after the “go-live” date of the software (via the hosting service). As a result, our software-related consulting services represent distinct performance obligations.   We recognize revenue over time in accordance with ASC 606. This is because our performance does not create an asset with an alternative use, as consulting services, and, if applicable, any related software enhancements, are highly tailored to the farming industry specific to the given customer, and we have an enforceable right to payment, inclusive of profit, for performance completed to date. As a result, for our consulting services, we have elected to utilize the practical expedient that allows us to recognize revenue in the amount to which we have a right to invoice, as we believe that we have a right to consideration from a customer in an amount that corresponds directly with the value to the customer of our performance completed to date for the provision of consulting services.    Principal versus Agent Considerations   Under certain of our verification and certification service contracts, a third-party inspector may be required to perform an independent inspection of a site or location within our customer’s supply chain in accordance with regulations of a certain standard or claim. In this scenario, we have concluded that we are the principal in the provision of inspection services to our customer, as we control the inspection service, and the related inspection report, before it is transferred to our customer. In accordance with this conclusion, we present revenue related to inspections on a gross basis, with customer payment for an inspection presented as revenue and the inspection cost paid to the third-party inspector presented as an expense.   In addition, we utilize a third-party to provide web-hosting services in the provision of our SaaS arrangements. In this scenario, we are primarily responsible for fulfilling the promise to provide web-hosting services to the customer, and we establish the fee that the customer is charged for the web-hosting services. Consequently, we have also concluded that we are the principal in the provision of web-hosting services under our SaaS arrangements. As such, we present revenue on a gross basis, with consideration received from our customer for the web-hosting service recorded as revenue and the cost paid to the third-party to provide those web-hosting services recorded as an expense.   Disaggregation of Revenue   We have identified four material revenue categories in our business: (i) verification and certification service revenue, (ii) product sales, (iii) software license, maintenance and support services revenue and (iv) software-related consulting service revenue.   Revenue attributable to each of our identified revenue categories is disaggregated in the table below.      <table cellspacing="0" cellpadding="0" style="width: 100%; border-collapse: collapse; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td> </td> <td style="padding-bottom: 1pt"> </td> <td colspan="14" style="border-bottom: black 1pt solid; text-align: center">Three months ended September 30, 2019</td> <td style="padding-bottom: 1pt"> </td> <td style="padding-bottom: 1pt"> </td> <td colspan="14" style="border-bottom: black 1pt solid; text-align: center">Three months ended September 30, 2018</td> <td style="padding-bottom: 1pt"> </td></tr> <tr style="vertical-align: bottom"> <td> </td> <td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center">Verification and Certification Segment</td> <td style="padding-bottom: 1pt"> </td> <td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center">Software Sales and Related Consulting Segment</td> <td style="padding-bottom: 1pt"> </td> <td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center">Eliminations and Other</td> <td style="padding-bottom: 1pt"> </td> <td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center">Consolidated Totals</td> <td style="padding-bottom: 1pt"> </td> <td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center">Verification and Certification Segment</td> <td style="padding-bottom: 1pt"> </td> <td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center">Software Sales and Related Consulting Segment</td> <td style="padding-bottom: 1pt"> </td> <td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center">Eliminations and Other</td> <td style="padding-bottom: 1pt"> </td> <td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center">Consolidated Totals</td> <td style="padding-bottom: 1pt"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="text-align: left">Revenues:</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 12%; text-align: left; padding-left: 10pt">Verification and certification service revenue</td> <td style="width: 1%"> </td> <td style="width: 1%; text-align: left">$</td> <td style="width: 8%; text-align: right">4,759,383</td> <td style="width: 1%; text-align: left"> </td> <td style="width: 1%"> </td> <td style="width: 1%; text-align: left">$</td> <td style="width: 8%; text-align: right">—</td> <td style="width: 1%; text-align: left"> </td> <td style="width: 1%"> </td> <td style="width: 1%; text-align: left">$</td> <td style="width: 8%; text-align: right">—</td> <td style="width: 1%; text-align: left"> </td> <td style="width: 1%"> </td> <td style="width: 1%; text-align: left">$</td> <td style="width: 8%; text-align: right">4,759,383</td> <td style="width: 1%; text-align: left"> </td> <td style="width: 1%"> </td> <td style="width: 1%; text-align: left">$</td> <td style="width: 8%; text-align: right">3,906,996</td> <td style="width: 1%; text-align: left"> </td> <td style="width: 1%"> </td> <td style="width: 1%; text-align: left">$</td> <td style="width: 8%; text-align: right">—</td> <td style="width: 1%; text-align: left"> </td> <td style="width: 1%"> </td> <td style="width: 1%; text-align: left">$</td> <td style="width: 8%; text-align: right">—</td> <td style="width: 1%; text-align: left"> </td> <td style="width: 1%"> </td> <td style="width: 1%; text-align: left">$</td> <td style="width: 8%; text-align: right">3,906,996</td> <td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="text-align: left; padding-left: 10pt">Product sales</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">1,086,272</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">—</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">—</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">1,086,272</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">783,303</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">—</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">—</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">783,303</td> <td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-left: 10pt">Software license, maintenance and support services revenue</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">—</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">286,816</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">(60,000</td> <td style="text-align: left">)</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">226,816</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">—</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">208,541</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">—</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">208,541</td> <td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="padding-bottom: 1pt; text-align: left; padding-left: 10pt">Software-related consulting service revenue</td> <td style="padding-bottom: 1pt"> </td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">—</td> <td style="padding-bottom: 1pt; text-align: left"> </td> <td style="padding-bottom: 1pt"> </td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">196,723</td> <td style="padding-bottom: 1pt; text-align: left"> </td> <td style="padding-bottom: 1pt"> </td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">(36,712</td> <td style="padding-bottom: 1pt; text-align: left">)</td> <td style="padding-bottom: 1pt"> </td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">160,011</td> <td style="padding-bottom: 1pt; text-align: left"> </td> <td style="padding-bottom: 1pt"> </td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">—</td> <td style="padding-bottom: 1pt; text-align: left"> </td> <td style="padding-bottom: 1pt"> </td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">226,538</td> <td style="padding-bottom: 1pt; text-align: left"> </td> <td style="padding-bottom: 1pt"> </td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">—</td> <td style="padding-bottom: 1pt; text-align: left"> </td> <td style="padding-bottom: 1pt"> </td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">226,538</td> <td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 1pt; text-align: left; padding-left: 20pt">Total revenues</td> <td style="padding-bottom: 1pt"> </td> <td style="border-bottom: black 1pt solid; text-align: left">$</td> <td style="border-bottom: black 1pt solid; text-align: right">5,845,655</td> <td style="padding-bottom: 1pt; text-align: left"> </td> <td style="padding-bottom: 1pt"> </td> <td style="border-bottom: black 1pt solid; text-align: left">$</td> <td style="border-bottom: black 1pt solid; text-align: right">483,539</td> <td style="padding-bottom: 1pt; text-align: left"> </td> <td style="padding-bottom: 1pt"> </td> <td style="border-bottom: black 1pt solid; text-align: left">$</td> <td style="border-bottom: black 1pt solid; text-align: right">(96,712</td> <td style="padding-bottom: 1pt; text-align: left">)</td> <td style="padding-bottom: 1pt"> </td> <td style="border-bottom: black 1pt solid; text-align: left">$</td> <td style="border-bottom: black 1pt solid; text-align: right">6,232,482</td> <td style="padding-bottom: 1pt; text-align: left"> </td> <td style="padding-bottom: 1pt"> </td> <td style="border-bottom: black 1pt solid; text-align: left">$</td> <td style="border-bottom: black 1pt solid; text-align: right">4,690,299</td> <td style="padding-bottom: 1pt; text-align: left"> </td> <td style="padding-bottom: 1pt"> </td> <td style="border-bottom: black 1pt solid; text-align: left">$</td> <td style="border-bottom: black 1pt solid; text-align: right">435,079</td> <td style="padding-bottom: 1pt; text-align: left"> </td> <td style="padding-bottom: 1pt"> </td> <td style="border-bottom: black 1pt solid; text-align: left">$</td> <td style="border-bottom: black 1pt solid; text-align: right">—</td> <td style="padding-bottom: 1pt; text-align: left"> </td> <td style="padding-bottom: 1pt"> </td> <td style="border-bottom: black 1pt solid; text-align: left">$</td> <td style="border-bottom: black 1pt solid; text-align: right">5,125,378</td> <td style="padding-bottom: 1pt; text-align: left"> </td></tr> </table>   <table cellspacing="0" cellpadding="0" style="width: 100%; border-collapse: collapse; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td> </td> <td style="padding-bottom: 1pt"> </td> <td colspan="14" style="border-bottom: black 1pt solid; text-align: center">Nine months ended September 30, 2019</td> <td style="padding-bottom: 1pt"> </td> <td style="padding-bottom: 1pt"> </td> <td colspan="14" style="border-bottom: black 1pt solid; text-align: center">Nine months ended September 30, 2018</td> <td style="padding-bottom: 1pt"> </td></tr> <tr style="vertical-align: bottom"> <td> </td> <td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center">Verification and Certification Segment</td> <td style="padding-bottom: 1pt"> </td> <td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center">Software Sales and Related Consulting Segment</td> <td style="padding-bottom: 1pt"> </td> <td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center">Eliminations and Other</td> <td style="padding-bottom: 1pt"> </td> <td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center">Consolidated Totals</td> <td style="padding-bottom: 1pt"> </td> <td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center">Verification and Certification Segment</td> <td style="padding-bottom: 1pt"> </td> <td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center">Software Sales and Related Consulting Segment</td> <td style="padding-bottom: 1pt"> </td> <td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center">Eliminations and Other</td> <td style="padding-bottom: 1pt"> </td> <td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center">Consolidated Totals</td> <td style="padding-bottom: 1pt"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="text-align: left">Revenues:</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 12%; text-align: left; padding-left: 10pt">Verification and certification service revenue</td> <td style="width: 1%"> </td> <td style="width: 1%; text-align: left">$</td> <td style="width: 8%; text-align: right">11,314,318</td> <td style="width: 1%; text-align: left"> </td> <td style="width: 1%"> </td> <td style="width: 1%; text-align: left">$</td> <td style="width: 8%; text-align: right">—</td> <td style="width: 1%; text-align: left"> </td> <td style="width: 1%"> </td> <td style="width: 1%; text-align: left">$</td> <td style="width: 8%; text-align: right">—</td> <td style="width: 1%; text-align: left"> </td> <td style="width: 1%"> </td> <td style="width: 1%; text-align: left">$</td> <td style="width: 8%; text-align: right">11,314,318</td> <td style="width: 1%; text-align: left"> </td> <td style="width: 1%"> </td> <td style="width: 1%; text-align: left">$</td> <td style="width: 8%; text-align: right">10,210,947</td> <td style="width: 1%; text-align: left"> </td> <td style="width: 1%"> </td> <td style="width: 1%; text-align: left">$</td> <td style="width: 8%; text-align: right">—</td> <td style="width: 1%; text-align: left"> </td> <td style="width: 1%"> </td> <td style="width: 1%; text-align: left">$</td> <td style="width: 8%; text-align: right">—</td> <td style="width: 1%; text-align: left"> </td> <td style="width: 1%"> </td> <td style="width: 1%; text-align: left">$</td> <td style="width: 8%; text-align: right">10,210,947</td> <td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="text-align: left; padding-left: 10pt">Product sales</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">2,362,663</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">—</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">—</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">2,362,663</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">1,633,509</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">—</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">—</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">1,633,509</td> <td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-left: 10pt">Software license, maintenance and support services revenue</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">—</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">969,056</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">(147,277</td> <td style="text-align: left">)</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">821,779</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">—</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">759,301</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">—</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">759,301</td> <td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="padding-bottom: 1pt; text-align: left; padding-left: 10pt">Software-related consulting service revenue</td> <td style="padding-bottom: 1pt"> </td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">—</td> <td style="padding-bottom: 1pt; text-align: left"> </td> <td style="padding-bottom: 1pt"> </td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">660,755</td> <td style="padding-bottom: 1pt; text-align: left"> </td> <td style="padding-bottom: 1pt"> </td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">(84,234</td> <td style="padding-bottom: 1pt; text-align: left">)</td> <td style="padding-bottom: 1pt"> </td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">576,521</td> <td style="padding-bottom: 1pt; text-align: left"> </td> <td style="padding-bottom: 1pt"> </td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">—</td> <td style="padding-bottom: 1pt; text-align: left"> </td> <td style="padding-bottom: 1pt"> </td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">580,731</td> <td style="padding-bottom: 1pt; text-align: left"> </td> <td style="padding-bottom: 1pt"> </td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">—</td> <td style="padding-bottom: 1pt; text-align: left"> </td> <td style="padding-bottom: 1pt"> </td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">580,731</td> <td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 1pt; text-align: left; padding-left: 20pt">Total revenues</td> <td style="padding-bottom: 1pt"> </td> <td style="border-bottom: black 1pt solid; text-align: left">$</td> <td style="border-bottom: black 1pt solid; text-align: right">13,676,981</td> <td style="padding-bottom: 1pt; text-align: left"> </td> <td style="padding-bottom: 1pt"> </td> <td style="border-bottom: black 1pt solid; text-align: left">$</td> <td style="border-bottom: black 1pt solid; text-align: right">1,629,811</td> <td style="padding-bottom: 1pt; text-align: left"> </td> <td style="padding-bottom: 1pt"> </td> <td style="border-bottom: black 1pt solid; text-align: left">$</td> <td style="border-bottom: black 1pt solid; text-align: right">(231,511</td> <td style="padding-bottom: 1pt; text-align: left">)</td> <td style="padding-bottom: 1pt"> </td> <td style="border-bottom: black 1pt solid; text-align: left">$</td> <td style="border-bottom: black 1pt solid; text-align: right">15,075,281</td> <td style="padding-bottom: 1pt; text-align: left"> </td> <td style="padding-bottom: 1pt"> </td> <td style="border-bottom: black 1pt solid; text-align: left">$</td> <td style="border-bottom: black 1pt solid; text-align: right">11,844,456</td> <td style="padding-bottom: 1pt; text-align: left"> </td> <td style="padding-bottom: 1pt"> </td> <td style="border-bottom: black 1pt solid; text-align: left">$</td> <td style="border-bottom: black 1pt solid; text-align: right">1,340,032</td> <td style="padding-bottom: 1pt; text-align: left"> </td> <td style="padding-bottom: 1pt"> </td> <td style="border-bottom: black 1pt solid; text-align: left">$</td> <td style="border-bottom: black 1pt solid; text-align: right">—</td> <td style="padding-bottom: 1pt; text-align: left"> </td> <td style="padding-bottom: 1pt"> </td> <td style="border-bottom: black 1pt solid; text-align: left">$</td> <td style="border-bottom: black 1pt solid; text-align: right">13,184,488</td> <td style="padding-bottom: 1pt; text-align: left"> </td></tr> </table>      Transaction Price Allocated to Remaining Performance Obligations   We generally enter into revenue contracts with a one-year term. In certain instances, we have concluded that our contract term is less than one year because: (i) the termination provisions present in the contract impact the contract term under ASC 606 or (ii) a contract under ASC 606 arises at the time our customer requests the provision of a good or service that is delivered within or over a few days to a couple of weeks. As a result of our short-term contract structures, we have utilized the practical expedient in ASC 606-10-50-14 that exempts us from disclosure of the transaction price allocated to remaining performance obligations if the performance obligation is part of a contract that has an original expected duration of one year or less.   Contract Balances   Under our animal verification and certification services contracts, we invoice customers once the performance obligation for the provision of a site or location audit has been satisfied, at which point payment is unconditional. In addition, any product sales are invoiced upon delivery to the customer, at which point payment is also unconditional. Accordingly, our animal verification and certification services contracts do not give rise to a contract asset under ASC 606; rather, invoiced amounts reflect accounts receivable.   Under our crop and other processed product verification and certification services, a nonrefundable payment for an annual assessment of compliance with a standard is typically made by our customers upfront upon contract execution. That is, payment is made in advance of the provision of annual assessment services. Accordingly, we recognize deferred revenue upon receipt of the upfront payment from our customers for crop and other processed product audit assessment services. Revenue is subsequently recognized, and the related deferred revenue is reduced, over the one-year period during which assessment services are provided to the customer using the over-time measure of progress selected in accordance with ASC 606. To the extent that an inspection is required during the annual assessment period, we invoice customers once the performance obligation for the inspection has been satisfied, at which point payment is unconditional. As such, inspection services give rise to accounts receivable.   Our software subscriptions, web-hosting, and support services are paid by our customers upfront on a nonrefundable basis. That is, payment is made in advance of the provision of these services to our customers. As a result, we recognize deferred revenue upon receipt of the upfront payment from our customers for software subscriptions, web-hosting and maintenance and support services. Revenue is subsequently recognized, and the related deferred revenue is reduced, on a straight-line basis during the annual contract term that these stand-ready services are provided to customer.   Software-related consulting services are invoiced monthly on a time-incurred basis, at which point we have an enforceable right to payment for those services. Because payment is unconditional upon invoicing, our software-related consulting services are reflected as accounts receivable.   As of September 30, 2019, and December 31, 2018, accounts receivable from contracts with customers, net of allowance for doubtful accounts, were approximately $2,972,600 and $2,205,200, respectively.   As of September 30, 2019, and December 31, 2018, deposits and deferred revenue from contracts with customers were approximately $1,065,100 and $727,900, respectively. The balance of the contract liabilities at September 30, 2019 and December 31, 2018 are expected to be recognized as revenue within one year or less of the invoice date.     The following table reflects the changes in our contract liabilities during the three month period ended September 30, 2019:   <table cellspacing="0" cellpadding="0" style="width: 60%; border-collapse: collapse; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td style="text-align: left; padding-left: 10pt">Deferred revenue:</td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 79%; padding-left: 20pt">Unearned revenue June 30, 2019</td> <td style="width: 1%; text-align: left">$</td> <td style="width: 19%; text-align: right">1,143,158</td> <td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="text-align: left; padding-left: 20pt">Unearned billings</td> <td style="text-align: left"> </td> <td style="text-align: right">434,005</td> <td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 1pt; text-align: left; padding-left: 20pt">Revenue recognized</td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">(625,337</td> <td style="padding-bottom: 1pt; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="padding-bottom: 2pt; padding-left: 20pt">Unearned revenue September 30, 2019</td> <td style="border-bottom: black 2pt double; text-align: left">$</td> <td style="border-bottom: black 2pt double; text-align: right">951,826</td> <td style="padding-bottom: 2pt; text-align: left"> </td></tr> </table>   The following table reflects the changes in our contract liabilities during the nine month period ended September 30, 2019:         <table cellspacing="0" cellpadding="0" style="width: 60%; border-collapse: collapse; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td style="width: 79%; text-align: left; padding-left: 10pt">Deferred revenue:</td> <td style="width: 1%; text-align: left"> </td> <td style="width: 19%; text-align: right"> </td> <td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 20pt">Unearned revenue January 1, 2019</td> <td style="text-align: left">$</td> <td style="text-align: right">654,872</td> <td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="text-align: left; padding-left: 20pt">Unearned billings</td> <td style="text-align: left"> </td> <td style="text-align: right">2,187,176</td> <td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 1pt; text-align: left; padding-left: 20pt">Revenue recognized</td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">(1,890,222</td> <td style="padding-bottom: 1pt; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="padding-bottom: 2pt; padding-left: 20pt">Unearned revenue September 30, 2019</td> <td style="border-bottom: black 2pt double; text-align: left">$</td> <td style="border-bottom: black 2pt double; text-align: right">951,826</td> <td style="padding-bottom: 2pt; text-align: left"> </td></tr> </table>    Costs to fulfill a contract   Prior to August 2018, we incurred a fixed cost, payable to JVF Consulting, LLC, a third-party provider, to perform set-up activities for new (or first-year) customers that contract for our software subscription and hosting services. As previously discussed in Note 2, on August 30, 2018, we acquired JVF Consulting, which included three key employees. We concluded that those set-up activities performed by JVF did not transfer a good or service as defined in ASC 606 to our customers.    We capitalize fixed set-up costs as an asset on the following basis: (i) the fixed set-up costs incurred relate specifically to a customer contract for our software subscription and hosting service, (ii) the fixed set-up costs incurred are expected to be recovered via provision of the software subscription and hosting service to that customer and (iii) the set-up costs generate or enhance resources of the Company by permitting us to provide software subscription and hosting services to our customer, which, in turn, generates revenues.   Capitalized costs related to those set-up activities are amortized on a straight-line basis over the one-year license subscription and hosting period.   The ending balance at September 30, 2019 and December 31, 2018 of capitalized assets attributable to the set-up costs incurred to fulfill software subscription and hosting contracts was not material. No set-up costs related to our software subscription and hosting services were incurred for the three months ended September 30, 2019 or the year-ended December 31, 2018.   In addition, amortization of capitalized set-up costs for the three months ended September 30, 2019 or the year ended December 31, 2018 was not material, and no impairment loss was incurred related to capitalized set-up costs.   Commissions and other costs to obtain a contract are expensed as incurred as our contracts are typically completed in one year or less, and where applicable, we generally would incur these costs whether or not we ultimately obtain the contract.

Note 11 – Leases   We adopted ASU 2016-02: Leases (Topic 842) as of January 1, 2019. We determine if an arrangement is a lease at inception. Operating leases are included in the right-of-use (ROU) assets, current operating lease liabilities and noncurrent operating lease liabilities in our consolidated balance sheet. Finance leases are included in property and equipment, current finance lease obligations and long-term finance lease obligations in our consolidated balance sheet.   ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. ROU assets and liabilities are recognized at the lease commencement date based on the estimated present value of lease payments over the lease term.   As the discount rates in the Company’s lease are not implicit, the Company estimated the incremental borrowing rate based on the rate of interest the Company would have to pay to borrow a similar amount on a collateralized basis over a similar term.   Our lease term includes options to extend the lease when it is reasonably certain that we will exercise that option. Leases with a term of 12 months or less are not recorded on the balance sheet. Our lease agreements do not contain any residual value guarantees.   We have operating and finance leases for corporate offices, other regional offices, and certain equipment. Our leases have remaining lease terms of 1 year to 15 years, some of which include multiple options to extend the leases for up to 5 years each.   The components of lease expense were as follows:    <table cellspacing="0" cellpadding="0" style="width: 100%; border-collapse: collapse; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td> </td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center">Three months ended September 30, 2019</td> <td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center">Nine months ended September 30, 2019</td> <td style="padding-bottom: 1pt"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 74%; text-align: left">Operating lease cost</td> <td style="width: 1%; text-align: left">$</td> <td style="width: 11%; text-align: right">115,674</td> <td style="width: 1%; text-align: left"> </td> <td style="width: 1%; text-align: left">$</td> <td style="width: 11%; text-align: right">353,267</td> <td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="text-align: left">Finance lease cost</td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 10pt">Amortization of assets</td> <td style="text-align: left"> </td> <td style="text-align: right">2,025</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">6,558</td> <td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="padding-bottom: 1pt; text-align: left; padding-left: 10pt">Interest on finance lease obligations</td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">1,763</td> <td style="padding-bottom: 1pt; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">5,723</td> <td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 2pt; text-align: left">Total net lease cost</td> <td style="border-bottom: black 2pt double; text-align: left">$</td> <td style="border-bottom: black 2pt double; text-align: right">119,462</td> <td style="padding-bottom: 2pt; text-align: left"> </td> <td style="border-bottom: black 2pt double; text-align: left">$</td> <td style="border-bottom: black 2pt double; text-align: right">365,548</td> <td style="padding-bottom: 2pt; text-align: left"> </td></tr> </table>     Included in the table above, is $92,200 and $276,600 for the three and nine months ended September 30, 2019, respectively, of operating lease cost for our corporate headquarters. This space is being leased from The Move, LLC. Our CEO and President, each a related party to WFCF, have a 24.3% jointly-held ownership interest in The Move, LLC.   Rent expense for the three and nine months ended September 30, 2018 was $154,200 and $435,300, respectively.    Supplemental balance sheet information related to leases was as follows:    <table cellspacing="0" cellpadding="0" style="width: 100%; border-collapse: collapse; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td style="text-align: center"> </td> <td colspan="8" style="border-bottom: black 1pt solid; text-align: center">September 30, 2019</td> <td style="text-align: center"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: center">Operating leases:  </td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center">Related Party</td> <td style="text-align: center"> </td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center">Other</td> <td style="text-align: center"> </td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center">Total </td> <td style="text-align: center"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 61%; text-align: left; padding-left: 10pt">Right of use asset</td> <td style="width: 1%; text-align: left">$</td> <td style="width: 11%; text-align: right">2,975,520</td> <td style="width: 1%; text-align: left"> </td> <td style="width: 1%; text-align: left">$</td> <td style="width: 11%; text-align: right">332,869</td> <td style="width: 1%; text-align: left"> </td> <td style="width: 1%; text-align: left">$</td> <td style="width: 11%; text-align: right">3,308,389</td> <td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-left: 10pt">Current operating lease liabilities</td> <td style="text-align: left"> </td> <td style="text-align: right">153,456</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">79,447</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">232,903</td> <td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="padding-bottom: 1pt; text-align: left; padding-left: 10pt">Noncurrent operating lease liabilities</td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">3,301,204</td> <td style="padding-bottom: 1pt; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">286,836</td> <td style="padding-bottom: 1pt; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">3,588,040</td> <td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 2pt; text-align: left; padding-left: 20pt">Total operating lease liabilities</td> <td style="border-bottom: black 2pt double; text-align: left">$</td> <td style="border-bottom: black 2pt double; text-align: right">3,454,660</td> <td style="padding-bottom: 2pt; text-align: left"> </td> <td style="border-bottom: black 2pt double; text-align: left">$</td> <td style="border-bottom: black 2pt double; text-align: right">366,283</td> <td style="padding-bottom: 2pt; text-align: left"> </td> <td style="border-bottom: black 2pt double; text-align: left">$</td> <td style="border-bottom: black 2pt double; text-align: right">3,820,943</td> <td style="padding-bottom: 2pt; text-align: left"> </td></tr> </table>   <table cellspacing="0" cellpadding="0" style="width: 70%; border-collapse: collapse; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td style="padding-bottom: 1pt; text-align: left">Finance leases:</td> <td colspan="3" style="border-bottom: black 1pt solid; text-align: center">September 30, 2019</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 81%; text-align: left; padding-left: 10pt">Right of use asset, at cost</td> <td style="width: 1%; text-align: left">$</td> <td style="width: 17%; text-align: right">43,041</td> <td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="padding-bottom: 1pt; text-align: left; padding-left: 10pt">Accumulated amortization</td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">(20,086</td> <td style="padding-bottom: 1pt; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 2pt; text-align: left; padding-left: 20pt">Right of use asset, net</td> <td style="border-bottom: black 2pt double; text-align: left">$</td> <td style="border-bottom: black 2pt double; text-align: right">22,955</td> <td style="padding-bottom: 2pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Current obligations of finance leases</td> <td style="text-align: left">$</td> <td style="text-align: right">8,054</td> <td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="padding-bottom: 1pt; text-align: left">Finance leases, net of current obligations</td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">23,798</td> <td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 2pt; text-align: left; padding-left: 10pt">Total finance lease liabilities</td> <td style="border-bottom: black 2pt double; text-align: left">$</td> <td style="border-bottom: black 2pt double; text-align: right">31,852</td> <td style="padding-bottom: 2pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Weighted average remaining lease term (in years):</td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="text-align: left; padding-left: 10pt">Operating leases</td> <td style="text-align: left"> </td> <td style="text-align: right">11.2</td> <td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-left: 10pt">Finance leases</td> <td style="text-align: left"> </td> <td style="text-align: right">3.2</td> <td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Weighted average discount rate:</td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="text-align: left; padding-left: 10pt">Operating leases</td> <td style="text-align: left"> </td> <td style="text-align: right">5.8</td> <td style="text-align: left">%</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-left: 10pt">Finance leases</td> <td style="text-align: left"> </td> <td style="text-align: right">20.8</td> <td style="text-align: left">%</td></tr> </table>    Supplemental cash flow and other information related to leases was as follows:    <table cellspacing="0" cellpadding="0" style="width: 80%; border-collapse: collapse; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td> </td> <td colspan="2" style="text-align: center">Nine months ended</td> <td> </td></tr> <tr style="vertical-align: bottom"> <td> </td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center">September 30, 2019</td> <td style="padding-bottom: 1pt"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: left">Cash paid for amounts included in the measurement of lease liabilities:</td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 84%; text-align: left; padding-left: 10pt">Operating cash flows from operating leases</td> <td style="width: 1%; text-align: left">$</td> <td style="width: 14%; text-align: right">319,586</td> <td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="text-align: left; padding-left: 10pt">Operating cash flows from finance leases</td> <td style="text-align: left">$</td> <td style="text-align: right">5,723</td> <td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-left: 10pt">Financing cash flows from finance leases</td> <td style="text-align: left">$</td> <td style="text-align: right">4,504</td> <td style="text-align: left"> </td></tr> </table>    Maturities of lease liabilities were as follows:   <table cellspacing="0" cellpadding="0" style="width: 80%; border-collapse: collapse; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td style="border-bottom: black 1pt solid; text-align: left">Years Ending December 31st,</td> <td> </td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center">Operating Leases</td> <td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center">Finance Leases</td> <td style="padding-bottom: 1pt"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 67%; text-align: left">2019 (remaining three months)</td> <td style="width: 1%"> </td> <td style="width: 1%; text-align: left">$</td> <td style="width: 14%; text-align: right">110,773</td> <td style="width: 1%; text-align: left"> </td> <td style="width: 1%; text-align: left">$</td> <td style="width: 14%; text-align: right">3,705</td> <td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="text-align: left">2020</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">448,992</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">13,597</td> <td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">2021</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">461,657</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">12,355</td> <td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="text-align: left">2022</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">465,758</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">10,050</td> <td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">2023</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">461,310</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">4,514</td> <td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="padding-bottom: 1pt; text-align: left">Thereafter</td> <td> </td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">3,308,155</td> <td style="padding-bottom: 1pt; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">—</td> <td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-left: 10pt">Total lease payments</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">5,256,645</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">44,221</td> <td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="padding-bottom: 1pt; text-align: left">Less amount representing interest</td> <td> </td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">(1,435,702</td> <td style="padding-bottom: 1pt; text-align: left">)</td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">(12,369</td> <td style="padding-bottom: 1pt; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-left: 10pt">Total lease obligations</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">3,820,943</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">31,852</td> <td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="padding-bottom: 1pt; text-align: left">Less current portion</td> <td> </td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">(232,903</td> <td style="padding-bottom: 1pt; text-align: left">)</td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">(8,054</td> <td style="padding-bottom: 1pt; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 2pt; text-align: left; padding-left: 10pt">Long-term lease obligations</td> <td> </td> <td style="border-bottom: black 2pt double; text-align: left">$</td> <td style="border-bottom: black 2pt double; text-align: right">3,588,040</td> <td style="padding-bottom: 2pt; text-align: left"> </td> <td style="border-bottom: black 2pt double; text-align: left">$</td> <td style="border-bottom: black 2pt double; text-align: right">23,798</td> <td style="padding-bottom: 2pt; text-align: left"> </td></tr> </table>    As previously reported in the 2018 Form 10-K under ASC Topic 840, future minimum lease payments under the Company’s operating lease agreements that had initial or remaining non-cancelable lease terms in excess of one year as of December 31, 2018 were as follows:   <table cellspacing="0" cellpadding="0" align="center" style="width: 50%; border-collapse: collapse; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td style="border-bottom: black 1pt solid; text-align: center">Years ended December 31st:</td> <td style="text-align: center"> </td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center">Total</td> <td style="text-align: center"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 74%; text-align: left">2019</td> <td style="width: 1%; text-align: left"> </td> <td style="width: 1%; text-align: left">$</td> <td style="width: 23%; text-align: right">420,370</td> <td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="text-align: left">2020</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">421,590</td> <td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">2021</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">432,079</td> <td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="text-align: left">2022</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">447,264</td> <td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">2023</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">460,682</td> <td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="text-align: left">Thereafter</td> <td style="padding-bottom: 1pt; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">3,327,705</td> <td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Total lease commitments</td> <td style="padding-bottom: 2pt; text-align: left"> </td> <td style="border-bottom: black 2pt double; text-align: left">$</td> <td style="border-bottom: black 2pt double; text-align: right">5,509,690</td> <td style="padding-bottom: 2pt; text-align: left"> </td></tr> </table>

Note 12 – Commitments and Contingencies   Legal proceedings   From time to time, we may become involved in various legal actions, administrative proceedings and claims in the ordinary course of business.  We generally record losses for claims in excess of the limits of purchased insurance in earnings at the time and to the extent they are probable and estimable. We are not aware of any legal actions currently pending against us.   Contingently Redeemable Non-Controlling Interest   On December 28, 2016, we entered into an Asset Purchase Agreement (the “SureHarvest Purchase Agreement”), by and among the Company, SureHarvest Services LLC (the “Buyer” or “SureHarvest”); and SureHarvest, Inc., a California corporation (the “Seller”). We purchased the business assets of the Seller for total consideration of approximately $2.66 million, comprised of approximately $1,122,000 in cash and 850,852 shares of common stock of WFCF valued at approximately $1,534,900. Additionally, we issued the Seller a 40% membership interest in SureHarvest, with the Company holding a 60% interest.   Following the thirty-nine-month anniversary of the effective date of the SureHarvest Purchase Agreement, the Company shall have the option, but not the obligation, to purchase all the units (the 40% interest) of SureHarvest held by the Seller, and the Seller shall have the option, but not the obligation, to require the Company to purchase all the units of SureHarvest held by the Seller.  The purchase price for the units shall be equal to the amount the selling holders of the units would be entitled to receive upon a liquidation of SureHarvest assuming all of the assets of SureHarvest are sold for a purchase price equal to the product of eight and half times trailing twelve-month earnings before income taxes, depreciation and amortization, as defined, subject to an $8 million ceiling.     Because SureHarvest, Inc. at its option, can require the Company to purchase its 40% interest in SureHarvest, the SureHarvest non-controlling interest meets the definition of a contingently redeemable non-controlling interest. Redeemable non-controlling interests are presented at the greater of their carrying amount or redemption value at the end of each reporting period and are shown as a separate caption between liabilities and equity (mezzanine section) in the accompanying consolidated balance sheet.   The table below reflects the activity of the contingently redeemable non-controlling interest:    <table cellspacing="0" cellpadding="0" style="width: 80%; border-collapse: collapse; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 84%; padding-left: 10pt; text-indent: -10pt">Balance, December 31, 2018</td> <td style="width: 1%; text-align: left">$</td> <td style="width: 14%; text-align: right">1,449,007</td> <td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="padding-bottom: 1pt; padding-left: 20pt; text-indent: -20pt">Net loss attributable to non-controlling interest in SureHarvest for the year to date period ended September 30, 2019</td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">(181,829</td> <td style="padding-bottom: 1pt; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 2pt; padding-left: 10pt; text-indent: -10pt">Balance, September 30, 2019</td> <td style="border-bottom: black 2pt double; text-align: left">$</td> <td style="border-bottom: black 2pt double; text-align: right">1,267,178</td> <td style="padding-bottom: 2pt; text-align: left"> </td></tr> </table>

Note 13 - Segments   With each acquisition, we assess the need to disclose discrete information related to our operating segments. Because of the similarities of certain of our acquisitions that provide certification and verification services, we aggregate operations into one verification and certification reportable segment. The operating segments included in the aggregated verification and certification segment include IMI Global, ICS, and Validus. The factors considered in determining this aggregated reporting segment include the economic similarity of the businesses, the nature of services provided, production processes, types of customers and distribution methods.   The Company also determined that it has a software sales and related consulting reportable segment. SureHarvest, which includes Sow Organic and JVF Consulting, is the sole operating segment. This segment includes software license, maintenance, support and software-related consulting service revenues.   The Company’s chief operating decision maker (the Company’s CEO) allocates resources and assesses the performance of its operating segments. Segment management makes decisions, measures performance, and manages the business utilizing internal reporting operating segment information. Performance of operating segments are based on net sales, gross profit, selling, general and administrative expenses and most importantly, operating income.    The Company eliminates intercompany transfers between segments for management reporting purposes.  The following table shows information for reportable operating segments:   <table cellspacing="0" cellpadding="0" style="width: 100%; border-collapse: collapse; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td style="padding-left: 10pt; text-indent: -10pt"> </td> <td colspan="11" style="border-bottom: black 1pt solid; text-align: center">Three months ended September 30, 2019</td> <td style="padding-bottom: 1pt"> </td> <td colspan="11" style="border-bottom: black 1pt solid; text-align: center">Three months ended September 30, 2018</td> <td style="padding-bottom: 1pt"> </td></tr> <tr style="vertical-align: bottom"> <td style="padding-bottom: 1pt; text-align: center; padding-left: 10pt; text-indent: -10pt"> </td> <td style="border-bottom: black 1pt solid; text-align: center"> </td> <td style="border-bottom: black 1pt solid; text-align: center"> Verification and Certification Segment</td> <td style="padding-bottom: 1pt; text-align: center"> </td> <td style="border-bottom: black 1pt solid; text-align: center"> </td> <td style="border-bottom: black 1pt solid; text-align: center"> Software Sales and Related Consulting Segment </td> <td style="padding-bottom: 1pt; text-align: center"> </td> <td style="border-bottom: black 1pt solid; text-align: center"> </td> <td style="border-bottom: black 1pt solid; text-align: center"> Eliminations and Other </td> <td style="padding-bottom: 1pt; text-align: center"> </td> <td style="border-bottom: black 1pt solid; text-align: center"> </td> <td style="border-bottom: black 1pt solid; text-align: center"> Consolidated Totals </td> <td style="padding-bottom: 1pt; text-align: center"> </td> <td style="border-bottom: black 1pt solid; text-align: center"> </td> <td style="border-bottom: black 1pt solid; text-align: center"> Verification and Certification Segment </td> <td style="padding-bottom: 1pt; text-align: center"> </td> <td style="border-bottom: black 1pt solid; text-align: center"> </td> <td style="border-bottom: black 1pt solid; text-align: center"> Software Sales and Related Consulting Segment </td> <td style="padding-bottom: 1pt; text-align: center"> </td> <td style="border-bottom: black 1pt solid; text-align: center"> </td> <td style="border-bottom: black 1pt solid; text-align: center"> Eliminations and Other </td> <td style="padding-bottom: 1pt; text-align: center"> </td> <td style="border-bottom: black 1pt solid; text-align: center"> </td> <td style="border-bottom: black 1pt solid; text-align: center"> Consolidated Totals </td> <td style="padding-bottom: 1pt; text-align: center"> </td></tr> <tr style="vertical-align: bottom"> <td style="padding-left: 10pt; text-indent: -10pt">Assets:</td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 20%; text-align: left; padding-left: 20pt; text-indent: -10pt">Intangible and other assets, net</td> <td style="width: 1%; text-align: left">$</td> <td style="width: 8%; text-align: right">1,343,955</td> <td style="width: 1%; text-align: left"> </td> <td style="width: 1%; text-align: left">$</td> <td style="width: 8%; text-align: right">2,053,842</td> <td style="width: 1%; text-align: left"> </td> <td style="width: 1%; text-align: left">$</td> <td style="width: 8%; text-align: right">—</td> <td style="width: 1%; text-align: left"> </td> <td style="width: 1%; text-align: left">$</td> <td style="width: 8%; text-align: right">3,397,797</td> <td style="width: 1%; text-align: left"> </td> <td style="width: 1%; text-align: left">$</td> <td style="width: 8%; text-align: right">2,883,887</td> <td style="width: 1%; text-align: left"> </td> <td style="width: 1%; text-align: left">$</td> <td style="width: 8%; text-align: right">1,983,577</td> <td style="width: 1%; text-align: left"> </td> <td style="width: 1%; text-align: left">$</td> <td style="width: 8%; text-align: right">—</td> <td style="width: 1%; text-align: left"> </td> <td style="width: 1%; text-align: left">$</td> <td style="width: 8%; text-align: right">4,867,464</td> <td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="padding-left: 20pt; text-indent: -10pt">Goodwill</td> <td style="text-align: left"> </td> <td style="text-align: right">1,133,122</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">2,010,612</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">—</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">3,143,734</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">1,840,956</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">1,372,488</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">—</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">3,213,444</td> <td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-left: 20pt; text-indent: -10pt">Total assets</td> <td style="text-align: left"> </td> <td style="text-align: right">14,214,110</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">5,323,783</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">—</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">19,537,893</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">14,274,121</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">1,229,225</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">—</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">15,503,346</td> <td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="padding-left: 10pt; text-indent: -10pt"> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 10pt; text-indent: -10pt">Revenues:</td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="text-align: left; padding-left: 20pt; text-indent: -10pt">Verification and certification service revenue</td> <td style="text-align: left">$</td> <td style="text-align: right">4,759,383</td> <td style="text-align: left"> </td> <td style="text-align: left">$</td> <td style="text-align: right">—</td> <td style="text-align: left"> </td> <td style="text-align: left">$</td> <td style="text-align: right">—</td> <td style="text-align: left"> </td> <td style="text-align: left">$</td> <td style="text-align: right">4,759,383</td> <td style="text-align: left"> </td> <td style="text-align: left">$</td> <td style="text-align: right">3,906,996</td> <td style="text-align: left"> </td> <td style="text-align: left">$</td> <td style="text-align: right">—</td> <td style="text-align: left"> </td> <td style="text-align: left">$</td> <td style="text-align: right">—</td> <td style="text-align: left"> </td> <td style="text-align: left">$</td> <td style="text-align: right">3,906,996</td> <td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-left: 20pt; text-indent: -10pt">Product sales</td> <td style="text-align: left"> </td> <td style="text-align: right">1,086,272</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">—</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">—</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">1,086,272</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">783,303</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">—</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">—</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">783,303</td> <td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="text-align: left; padding-left: 20pt; text-indent: -10pt">Software license, maintenance and support services revenue</td> <td style="text-align: left"> </td> <td style="text-align: right">—</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">286,816</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">(60,000</td> <td style="text-align: left">)</td> <td style="text-align: left"> </td> <td style="text-align: right">226,816</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">—</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">208,541</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">—</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">208,541</td> <td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 1pt; text-align: left; padding-left: 20pt; text-indent: -10pt">Software-related consulting service revenue</td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">—</td> <td style="padding-bottom: 1pt; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">196,723</td> <td style="padding-bottom: 1pt; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">(36,712</td> <td style="padding-bottom: 1pt; text-align: left">)</td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">160,011</td> <td style="padding-bottom: 1pt; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">—</td> <td style="padding-bottom: 1pt; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">226,538</td> <td style="padding-bottom: 1pt; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">—</td> <td style="padding-bottom: 1pt; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">226,538</td> <td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="padding-bottom: 1pt; text-align: left; padding-left: 30pt; text-indent: -10pt">Total revenues</td> <td style="border-bottom: black 1pt solid; text-align: left">$</td> <td style="border-bottom: black 1pt solid; text-align: right">5,845,655</td> <td style="padding-bottom: 1pt; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: left">$</td> <td style="border-bottom: black 1pt solid; text-align: right">483,539</td> <td style="padding-bottom: 1pt; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: left">$</td> <td style="border-bottom: black 1pt solid; text-align: right">(96,712</td> <td style="padding-bottom: 1pt; text-align: left">)</td> <td style="border-bottom: black 1pt solid; text-align: left">$</td> <td style="border-bottom: black 1pt solid; text-align: right">6,232,482</td> <td style="padding-bottom: 1pt; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: left">$</td> <td style="border-bottom: black 1pt solid; text-align: right">4,690,299</td> <td style="padding-bottom: 1pt; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: left">$</td> <td style="border-bottom: black 1pt solid; text-align: right">435,079</td> <td style="padding-bottom: 1pt; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: left">$</td> <td style="border-bottom: black 1pt solid; text-align: right">—</td> <td style="padding-bottom: 1pt; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: left">$</td> <td style="border-bottom: black 1pt solid; text-align: right">5,125,378</td> <td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 10pt; text-indent: -10pt">Costs of revenues:</td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="text-align: left; padding-left: 20pt; text-indent: -10pt">Costs of verification and certification services</td> <td style="text-align: left"> </td> <td style="text-align: right">2,733,350</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">—</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">(60,150</td> <td style="text-align: left">)</td> <td style="text-align: left"> </td> <td style="text-align: right">2,673,200</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">2,098,462</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">—</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">—</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">2,098,462</td> <td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 20pt; text-indent: -10pt">Costs of products</td> <td style="text-align: left"> </td> <td style="text-align: right">696,579</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">—</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">—</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">696,579</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">489,149</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">—</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">—</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">489,149</td> <td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="text-align: left; padding-left: 20pt; text-indent: -10pt">Costs of software license, maintenance and support services</td> <td style="text-align: left"> </td> <td style="text-align: right">—</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">153,452</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">—</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">153,452</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">—</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">183,942</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">—</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">183,942</td> <td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 1pt; text-align: left; padding-left: 20pt; text-indent: -10pt">Costs of software-related consulting services</td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">—</td> <td style="padding-bottom: 1pt; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">122,224</td> <td style="padding-bottom: 1pt; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">—</td> <td style="padding-bottom: 1pt; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">122,224</td> <td style="padding-bottom: 1pt; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">—</td> <td style="padding-bottom: 1pt; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">117,303</td> <td style="padding-bottom: 1pt; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">—</td> <td style="padding-bottom: 1pt; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">117,303</td> <td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="padding-bottom: 1pt; text-align: left; padding-left: 30pt; text-indent: -10pt">Total costs of revenues</td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">3,429,929</td> <td style="padding-bottom: 1pt; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">275,676</td> <td style="padding-bottom: 1pt; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">(60,150</td> <td style="padding-bottom: 1pt; text-align: left">)</td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">3,645,455</td> <td style="padding-bottom: 1pt; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">2,587,611</td> <td style="padding-bottom: 1pt; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">301,245</td> <td style="padding-bottom: 1pt; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">—</td> <td style="padding-bottom: 1pt; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">2,888,856</td> <td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-left: 20pt; text-indent: -10pt">Gross profit</td> <td style="text-align: left"> </td> <td style="text-align: right">2,415,726</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">207,863</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">(36,562</td> <td style="text-align: left">)</td> <td style="text-align: left"> </td> <td style="text-align: right">2,587,027</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">2,102,688</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">133,834</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">—</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">2,236,522</td> <td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="text-align: left; padding-left: 10pt; text-indent: -10pt">Depreciation & amortization</td> <td style="text-align: left"> </td> <td style="text-align: right">78,620</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">178,568</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">—</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">257,188</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">102,944</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">138,230</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">—</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">241,174</td> <td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 1pt; text-align: left; padding-left: 10pt; text-indent: -10pt">Other operating expenses</td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">1,519,708</td> <td style="padding-bottom: 1pt; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">232,698</td> <td style="padding-bottom: 1pt; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">(36,562</td> <td style="padding-bottom: 1pt; text-align: left">)</td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">1,715,844</td> <td style="padding-bottom: 1pt; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">1,442,568</td> <td style="padding-bottom: 1pt; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">135,277</td> <td style="padding-bottom: 1pt; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">—</td> <td style="padding-bottom: 1pt; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">1,577,845</td> <td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="padding-bottom: 1pt; text-align: left; padding-left: 20pt; text-indent: -10pt"> Segment operating (loss)/income</td> <td style="border-bottom: black 1pt solid; text-align: left">$</td> <td style="border-bottom: black 1pt solid; text-align: right">817,398</td> <td style="padding-bottom: 1pt; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: left">$</td> <td style="border-bottom: black 1pt solid; text-align: right">(203,403</td> <td style="padding-bottom: 1pt; text-align: left">)</td> <td style="border-bottom: black 1pt solid; text-align: left">$</td> <td style="border-bottom: black 1pt solid; text-align: right">—</td> <td style="padding-bottom: 1pt; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: left">$</td> <td style="border-bottom: black 1pt solid; text-align: right">613,995</td> <td style="padding-bottom: 1pt; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: left">$</td> <td style="border-bottom: black 1pt solid; text-align: right">557,176</td> <td style="padding-bottom: 1pt; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: left">$</td> <td style="border-bottom: black 1pt solid; text-align: right">(139,673</td> <td style="padding-bottom: 1pt; text-align: left">)</td> <td style="border-bottom: black 1pt solid; text-align: left">$</td> <td style="border-bottom: black 1pt solid; text-align: right">—</td> <td style="padding-bottom: 1pt; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: left">$</td> <td style="border-bottom: black 1pt solid; text-align: right">417,503</td> <td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-left: 10pt; text-indent: -10pt">Other items to reconcile segment operating income (loss) to net income attributable to WFCF:</td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="text-align: left; padding-left: 20pt; text-indent: -10pt">Other expense (income)</td> <td style="text-align: left"> </td> <td style="text-align: right">(29,563</td> <td style="text-align: left">)</td> <td style="text-align: left"> </td> <td style="text-align: right">(6</td> <td style="text-align: left">)</td> <td style="text-align: left"> </td> <td style="text-align: right">—</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">(29,569</td> <td style="text-align: left">)</td> <td style="text-align: left"> </td> <td style="text-align: right">(102,155</td> <td style="text-align: left">)</td> <td style="text-align: left"> </td> <td style="text-align: right">—</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">—</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">(102,155</td> <td style="text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-left: 20pt; text-indent: -10pt">Income tax (benefit)/expense</td> <td style="text-align: left"> </td> <td style="text-align: right">—</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">—</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">184,001</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">184,001</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">—</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">—</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">169,000</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">169,000</td> <td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="padding-bottom: 1pt; text-align: left; padding-left: 20pt; text-indent: -10pt">Net loss attributable to non-controlling interest</td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">—</td> <td style="padding-bottom: 1pt; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">81,359</td> <td style="padding-bottom: 1pt; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">—</td> <td style="padding-bottom: 1pt; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">81,359</td> <td style="padding-bottom: 1pt; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">—</td> <td style="padding-bottom: 1pt; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">26,691</td> <td style="padding-bottom: 1pt; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">—</td> <td style="padding-bottom: 1pt; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">26,691</td> <td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 2pt; text-align: left; padding-left: 10pt; text-indent: -10pt">Net (loss)/income attributable to WFCF</td> <td style="border-bottom: black 2pt double; text-align: left">$</td> <td style="border-bottom: black 2pt double; text-align: right">846,961</td> <td style="padding-bottom: 2pt; text-align: left"> </td> <td style="border-bottom: black 2pt double; text-align: left">$</td> <td style="border-bottom: black 2pt double; text-align: right">(122,038</td> <td style="padding-bottom: 2pt; text-align: left">)</td> <td style="border-bottom: black 2pt double; text-align: left">$</td> <td style="border-bottom: black 2pt double; text-align: right">(184,001</td> <td style="padding-bottom: 2pt; text-align: left">)</td> <td style="border-bottom: black 2pt double; text-align: left">$</td> <td style="border-bottom: black 2pt double; text-align: right">540,922</td> <td style="padding-bottom: 2pt; text-align: left"> </td> <td style="border-bottom: black 2pt double; text-align: left">$</td> <td style="border-bottom: black 2pt double; text-align: right">659,331</td> <td style="padding-bottom: 2pt; text-align: left"> </td> <td style="border-bottom: black 2pt double; text-align: left">$</td> <td style="border-bottom: black 2pt double; text-align: right">(112,982</td> <td style="padding-bottom: 2pt; text-align: left">)</td> <td style="border-bottom: black 2pt double; text-align: left">$</td> <td style="border-bottom: black 2pt double; text-align: right">(169,000</td> <td style="padding-bottom: 2pt; text-align: left">)</td> <td style="border-bottom: black 2pt double; text-align: left">$</td> <td style="border-bottom: black 2pt double; text-align: right">377,349</td> <td style="padding-bottom: 2pt; text-align: left"> </td></tr> </table>     <table cellspacing="0" cellpadding="0" style="width: 100%; border-collapse: collapse; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td style="padding-left: 10pt; text-indent: -10pt"> </td> <td colspan="11" style="border-bottom: black 1pt solid; text-align: center">Nine months ended September 30, 2019</td> <td style="padding-bottom: 1pt"> </td> <td colspan="11" style="border-bottom: black 1pt solid; text-align: center">Nine months ended September 30, 2018</td> <td style="padding-bottom: 1pt"> </td></tr> <tr style="vertical-align: bottom"> <td style="padding-bottom: 1pt; text-align: center; padding-left: 10pt; text-indent: -10pt"> </td> <td style="border-bottom: black 1pt solid; text-align: center"> </td> <td style="border-bottom: black 1pt solid; text-align: center">Verification and Certification Segment</td> <td style="padding-bottom: 1pt; text-align: center"> </td> <td style="border-bottom: black 1pt solid; text-align: center"> </td> <td style="border-bottom: black 1pt solid; text-align: center">Software Sales and Related Consulting Segment</td> <td style="padding-bottom: 1pt; text-align: center"> </td> <td style="border-bottom: black 1pt solid; text-align: center"> </td> <td style="border-bottom: black 1pt solid; text-align: center">Eliminations and Other</td> <td style="padding-bottom: 1pt; text-align: center"> </td> <td style="border-bottom: black 1pt solid; text-align: center"> </td> <td style="border-bottom: black 1pt solid; text-align: center">Consolidated Totals</td> <td style="padding-bottom: 1pt; text-align: center"> </td> <td style="border-bottom: black 1pt solid; text-align: center"> </td> <td style="border-bottom: black 1pt solid; text-align: center">Verification and Certification Segment</td> <td style="padding-bottom: 1pt; text-align: center"> </td> <td style="border-bottom: black 1pt solid; text-align: center"> </td> <td style="border-bottom: black 1pt solid; text-align: center">Software Sales and Related Consulting Segment</td> <td style="padding-bottom: 1pt; text-align: center"> </td> <td style="border-bottom: black 1pt solid; text-align: center"> </td> <td style="border-bottom: black 1pt solid; text-align: center">Eliminations and Other</td> <td style="padding-bottom: 1pt; text-align: center"> </td> <td style="border-bottom: black 1pt solid; text-align: center"> </td> <td style="border-bottom: black 1pt solid; text-align: center">Consolidated Totals</td> <td style="padding-bottom: 1pt; text-align: center"> </td></tr> <tr style="vertical-align: bottom"> <td style="padding-left: 10pt; text-indent: -10pt">Assets:</td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 20%; text-align: left; padding-left: 20pt; text-indent: -10pt">Intangible and other assets, net</td> <td style="width: 1%; text-align: left">$</td> <td style="width: 8%; text-align: right">1,343,955</td> <td style="width: 1%; text-align: left"> </td> <td style="width: 1%; text-align: left">$</td> <td style="width: 8%; text-align: right">2,053,842</td> <td style="width: 1%; text-align: left"> </td> <td style="width: 1%; text-align: left">$</td> <td style="width: 8%; text-align: right">—</td> <td style="width: 1%; text-align: left"> </td> <td style="width: 1%; text-align: left">$</td> <td style="width: 8%; text-align: right">3,397,797</td> <td style="width: 1%; text-align: left"> </td> <td style="width: 1%; text-align: left">$</td> <td style="width: 8%; text-align: right">2,883,887</td> <td style="width: 1%; text-align: left"> </td> <td style="width: 1%; text-align: left">$</td> <td style="width: 8%; text-align: right">1,983,577</td> <td style="width: 1%; text-align: left"> </td> <td style="width: 1%; text-align: left">$</td> <td style="width: 8%; text-align: right">—</td> <td style="width: 1%; text-align: left"> </td> <td style="width: 1%; text-align: left">$</td> <td style="width: 8%; text-align: right">4,867,464</td> <td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="padding-left: 20pt; text-indent: -10pt">Goodwill</td> <td style="text-align: left"> </td> <td style="text-align: right">1,133,122</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">2,010,612</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">—</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">3,143,734</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">1,840,956</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">1,372,488</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">—</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">3,213,444</td> <td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-left: 20pt; text-indent: -10pt">Total assets</td> <td style="text-align: left"> </td> <td style="text-align: right">14,214,110</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">5,323,783</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">—</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">19,537,893</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">14,274,121</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">1,229,225</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">—</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">15,503,346</td> <td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="padding-left: 10pt; text-indent: -10pt"> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 10pt; text-indent: -10pt">Revenues:</td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="text-align: left; padding-left: 20pt; text-indent: -10pt">Verification and certification service revenue</td> <td style="text-align: left">$</td> <td style="text-align: right">11,314,318</td> <td style="text-align: left"> </td> <td style="text-align: left">$</td> <td style="text-align: right">—</td> <td style="text-align: left"> </td> <td style="text-align: left">$</td> <td style="text-align: right">—</td> <td style="text-align: left"> </td> <td style="text-align: left">$</td> <td style="text-align: right">11,314,318</td> <td style="text-align: left"> </td> <td style="text-align: left">$</td> <td style="text-align: right">10,210,947</td> <td style="text-align: left"> </td> <td style="text-align: left">$</td> <td style="text-align: right">—</td> <td style="text-align: left"> </td> <td style="text-align: left">$</td> <td style="text-align: right">—</td> <td style="text-align: left"> </td> <td style="text-align: left">$</td> <td style="text-align: right">10,210,947</td> <td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-left: 20pt; text-indent: -10pt">Product sales</td> <td style="text-align: left"> </td> <td style="text-align: right">2,362,663</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">—</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">—</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">2,362,663</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">1,633,509</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">—</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">—</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">1,633,509</td> <td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="text-align: left; padding-left: 20pt; text-indent: -10pt">Software license, maintenance and support services revenue</td> <td style="text-align: left"> </td> <td style="text-align: right">—</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">969,056</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">(147,277</td> <td style="text-align: left">)</td> <td style="text-align: left"> </td> <td style="text-align: right">821,779</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">—</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">759,301</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">—</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">759,301</td> <td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 1pt; text-align: left; padding-left: 20pt; text-indent: -10pt">Software-related consulting service revenue</td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">—</td> <td style="padding-bottom: 1pt; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">660,755</td> <td style="padding-bottom: 1pt; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">(84,234</td> <td style="padding-bottom: 1pt; text-align: left">)</td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">576,521</td> <td style="padding-bottom: 1pt; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">—</td> <td style="padding-bottom: 1pt; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">580,731</td> <td style="padding-bottom: 1pt; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">—</td> <td style="padding-bottom: 1pt; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">580,731</td> <td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="padding-bottom: 1pt; text-align: left; padding-left: 30pt; text-indent: -10pt">Total revenues</td> <td style="border-bottom: black 1pt solid; text-align: left">$</td> <td style="border-bottom: black 1pt solid; text-align: right">13,676,981</td> <td style="padding-bottom: 1pt; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: left">$</td> <td style="border-bottom: black 1pt solid; text-align: right">1,629,811</td> <td style="padding-bottom: 1pt; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: left">$</td> <td style="border-bottom: black 1pt solid; text-align: right">(231,511</td> <td style="padding-bottom: 1pt; text-align: left">)</td> <td style="border-bottom: black 1pt solid; text-align: left">$</td> <td style="border-bottom: black 1pt solid; text-align: right">15,075,281</td> <td style="padding-bottom: 1pt; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: left">$</td> <td style="border-bottom: black 1pt solid; text-align: right">11,844,456</td> <td style="padding-bottom: 1pt; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: left">$</td> <td style="border-bottom: black 1pt solid; text-align: right">1,340,032</td> <td style="padding-bottom: 1pt; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: left">$</td> <td style="border-bottom: black 1pt solid; text-align: right">—</td> <td style="padding-bottom: 1pt; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: left">$</td> <td style="border-bottom: black 1pt solid; text-align: right">13,184,488</td> <td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 10pt; text-indent: -10pt">Costs of revenues:</td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="text-align: left; padding-left: 20pt; text-indent: -10pt">Costs of verification and certification services</td> <td style="text-align: left"> </td> <td style="text-align: right">6,455,687</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">—</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">(123,123</td> <td style="text-align: left">)</td> <td style="text-align: left"> </td> <td style="text-align: right">6,332,564</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">5,399,626</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">—</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">—</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">5,399,626</td> <td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 20pt; text-indent: -10pt">Costs of products</td> <td style="text-align: left"> </td> <td style="text-align: right">1,537,837</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">—</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">—</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">1,537,837</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">1,035,094</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">—</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">—</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">1,035,094</td> <td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="text-align: left; padding-left: 20pt; text-indent: -10pt">Costs of software license, maintenance and support services</td> <td style="text-align: left"> </td> <td style="text-align: right">—</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">469,065</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">—</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">469,065</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">—</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">489,887</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">—</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">489,887</td> <td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 1pt; text-align: left; padding-left: 20pt; text-indent: -10pt">Costs of software-related consulting services</td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">—</td> <td style="padding-bottom: 1pt; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">394,660</td> <td style="padding-bottom: 1pt; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">—</td> <td style="padding-bottom: 1pt; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">394,660</td> <td style="padding-bottom: 1pt; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">—</td> <td style="padding-bottom: 1pt; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">280,310</td> <td style="padding-bottom: 1pt; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">—</td> <td style="padding-bottom: 1pt; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">280,310</td> <td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="padding-bottom: 1pt; text-align: left; padding-left: 30pt; text-indent: -10pt">Total costs of revenues</td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">7,993,524</td> <td style="padding-bottom: 1pt; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">863,725</td> <td style="padding-bottom: 1pt; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">(123,123</td> <td style="padding-bottom: 1pt; text-align: left">)</td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">8,734,126</td> <td style="padding-bottom: 1pt; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">6,434,720</td> <td style="padding-bottom: 1pt; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">770,197</td> <td style="padding-bottom: 1pt; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">—</td> <td style="padding-bottom: 1pt; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">7,204,917</td> <td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-left: 20pt; text-indent: -10pt">Gross profit</td> <td style="text-align: left"> </td> <td style="text-align: right">5,683,457</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">766,086</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">(108,388</td> <td style="text-align: left">)</td> <td style="text-align: left"> </td> <td style="text-align: right">6,341,155</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">5,409,736</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">569,835</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">—</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">5,979,571</td> <td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="text-align: left; padding-left: 10pt; text-indent: -10pt">Depreciation & amortization</td> <td style="text-align: left"> </td> <td style="text-align: right">263,209</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">539,207</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">—</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">802,416</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">328,370</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">414,410</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">—</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">742,780</td> <td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 1pt; text-align: left; padding-left: 10pt; text-indent: -10pt">Other operating expenses</td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">4,229,813</td> <td style="padding-bottom: 1pt; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">700,718</td> <td style="padding-bottom: 1pt; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">(108,388</td> <td style="padding-bottom: 1pt; text-align: left">)</td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">4,822,143</td> <td style="padding-bottom: 1pt; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">4,127,982</td> <td style="padding-bottom: 1pt; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">423,199</td> <td style="padding-bottom: 1pt; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">—</td> <td style="padding-bottom: 1pt; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">4,551,181</td> <td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="padding-bottom: 1pt; text-align: left; padding-left: 20pt; text-indent: -10pt">Segment operating (loss)/income</td> <td style="border-bottom: black 1pt solid; text-align: left">$</td> <td style="border-bottom: black 1pt solid; text-align: right">1,190,435</td> <td style="padding-bottom: 1pt; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: left">$</td> <td style="border-bottom: black 1pt solid; text-align: right">(473,839</td> <td style="padding-bottom: 1pt; text-align: left">)</td> <td style="border-bottom: black 1pt solid; text-align: left">$</td> <td style="border-bottom: black 1pt solid; text-align: right">—</td> <td style="padding-bottom: 1pt; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: left">$</td> <td style="border-bottom: black 1pt solid; text-align: right">716,596</td> <td style="padding-bottom: 1pt; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: left">$</td> <td style="border-bottom: black 1pt solid; text-align: right">953,384</td> <td style="padding-bottom: 1pt; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: left">$</td> <td style="border-bottom: black 1pt solid; text-align: right">(267,774</td> <td style="padding-bottom: 1pt; text-align: left">)</td> <td style="border-bottom: black 1pt solid; text-align: left">$</td> <td style="border-bottom: black 1pt solid; text-align: right">—</td> <td style="padding-bottom: 1pt; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: left">$</td> <td style="border-bottom: black 1pt solid; text-align: right">685,610</td> <td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-left: 10pt; text-indent: -10pt">Other items to reconcile segment operating income (loss) to net income attributable to WFCF:</td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="text-align: left; padding-left: 20pt; text-indent: -10pt">Other expense (income)</td> <td style="text-align: left"> </td> <td style="text-align: right">(89,538</td> <td style="text-align: left">)</td> <td style="text-align: left"> </td> <td style="text-align: right">(1,009</td> <td style="text-align: left">)</td> <td style="text-align: left"> </td> <td style="text-align: right">—</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">(90,547</td> <td style="text-align: left">)</td> <td style="text-align: left"> </td> <td style="text-align: right">(108,661</td> <td style="text-align: left">)</td> <td style="text-align: left"> </td> <td style="text-align: right">860</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">—</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">(107,801</td> <td style="text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-left: 20pt; text-indent: -10pt">Income tax (benefit)/expense</td> <td style="text-align: left"> </td> <td style="text-align: right">—</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">—</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">230,090</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">230,090</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">—</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">—</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">257,000</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">257,000</td> <td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="padding-bottom: 1pt; text-align: left; padding-left: 20pt; text-indent: -10pt">Net loss attributable to non-controlling interest</td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">—</td> <td style="padding-bottom: 1pt; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">181,829</td> <td style="padding-bottom: 1pt; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">—</td> <td style="padding-bottom: 1pt; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">181,829</td> <td style="padding-bottom: 1pt; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">—</td> <td style="padding-bottom: 1pt; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">53,261</td> <td style="padding-bottom: 1pt; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">—</td> <td style="padding-bottom: 1pt; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">53,261</td> <td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 2pt; text-align: left; padding-left: 10pt; text-indent: -10pt">Net (loss)/income attributable to WFCF</td> <td style="border-bottom: black 2pt double; text-align: left">$</td> <td style="border-bottom: black 2pt double; text-align: right">1,279,973</td> <td style="padding-bottom: 2pt; text-align: left"> </td> <td style="border-bottom: black 2pt double; text-align: left">$</td> <td style="border-bottom: black 2pt double; text-align: right">(291,001</td> <td style="padding-bottom: 2pt; text-align: left">)</td> <td style="border-bottom: black 2pt double; text-align: left">$</td> <td style="border-bottom: black 2pt double; text-align: right">(230,090</td> <td style="padding-bottom: 2pt; text-align: left">)</td> <td style="border-bottom: black 2pt double; text-align: left">$</td> <td style="border-bottom: black 2pt double; text-align: right">758,882</td> <td style="padding-bottom: 2pt; text-align: left"> </td> <td style="border-bottom: black 2pt double; text-align: left">$</td> <td style="border-bottom: black 2pt double; text-align: right">1,062,045</td> <td style="padding-bottom: 2pt; text-align: left"> </td> <td style="border-bottom: black 2pt double; text-align: left">$</td> <td style="border-bottom: black 2pt double; text-align: right">(215,373</td> <td style="padding-bottom: 2pt; text-align: left">)</td> <td style="border-bottom: black 2pt double; text-align: left">$</td> <td style="border-bottom: black 2pt double; text-align: right">(257,000</td> <td style="padding-bottom: 2pt; text-align: left">)</td> <td style="border-bottom: black 2pt double; text-align: left">$</td> <td style="border-bottom: black 2pt double; text-align: right">589,672</td> <td style="padding-bottom: 2pt; text-align: left"> </td></tr> </table>

Note 14 – Supplemental Cash Flow Information                                                                          <table cellspacing="0" cellpadding="0" style="width: 100%; border-collapse: collapse; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td> </td> <td colspan="5" style="border-bottom: black 1pt solid; text-align: center">Nine months ended September 30,</td> <td style="padding-bottom: 1pt"> </td></tr> <tr style="vertical-align: bottom"> <td> </td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center">2019</td> <td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center">2018</td> <td style="padding-bottom: 1pt"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: left">Cash paid during the year:</td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 74%; text-align: left; padding-left: 10pt">Interest expense</td> <td style="width: 1%; text-align: left">$</td> <td style="width: 11%; text-align: right">8,768</td> <td style="width: 1%; text-align: left"> </td> <td style="width: 1%; text-align: left">$</td> <td style="width: 11%; text-align: right">3,755</td> <td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="text-align: left; padding-left: 10pt">Income taxes</td> <td style="text-align: left">$</td> <td style="text-align: right">131,268</td> <td style="text-align: left"> </td> <td style="text-align: left">$</td> <td style="text-align: right">418,965</td> <td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="text-align: left">Non-cash investing and financing activites:</td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-left: 10pt">Common stock issued in connection with acquisition of Sow Organic</td> <td style="text-align: left">$</td> <td style="text-align: right">—</td> <td style="text-align: left"> </td> <td style="text-align: left">$</td> <td style="text-align: right">433,131</td> <td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="text-align: left; padding-left: 10pt">Common stock issued in connection with investment in Progressive Beef</td> <td style="text-align: left">$</td> <td style="text-align: right">—</td> <td style="text-align: left"> </td> <td style="text-align: left">$</td> <td style="text-align: right">91,115</td> <td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-left: 10pt">Common Stock issued in connection with acquisition of JVF Consulting</td> <td style="text-align: left">$</td> <td style="text-align: right">—</td> <td style="text-align: left"> </td> <td style="text-align: left">$</td> <td style="text-align: right">315,291</td> <td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="text-align: left; padding-left: 10pt">Equipment acquired under a capital lease</td> <td style="text-align: left">$</td> <td style="text-align: right">—</td> <td style="text-align: left"> </td> <td style="text-align: left">$</td> <td style="text-align: right">19,809</td> <td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-left: 10pt">Lease incentive obligation</td> <td style="text-align: left">$</td> <td style="text-align: right">—</td> <td style="text-align: left"> </td> <td style="text-align: left">$</td> <td style="text-align: right">230,220</td> <td style="text-align: left"> </td></tr> </table>

The following table summarizes the final fair values assigned to the assets and liabilities acquired in addition to the excess of the purchase price over the net assets acquired at the acquisition date.   <table cellspacing="0" cellpadding="0" align="center" style="width: 80%; border-collapse: collapse; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td>Sow Organic, LLC:</td> <td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center">May 16, 2018</td> <td style="padding-bottom: 1pt"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 83%; text-align: left">Software acquired</td> <td style="width: 1%"> </td> <td style="width: 1%; text-align: left">$</td> <td style="width: 14%; text-align: right">156,000</td> <td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="text-align: left">Identifiable intangible assets:</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">—</td> <td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-left: 10pt">Tradenames and trademarks</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">48,000</td> <td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="text-align: left; padding-left: 10pt">Non-compete agreements</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">84,000</td> <td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-left: 10pt">Customer relationships</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">162,000</td> <td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="padding-bottom: 1pt">Goodwill</td> <td style="padding-bottom: 1pt"> </td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">433,131</td> <td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 2.5pt; text-align: left; padding-left: 10pt">Total consideration</td> <td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: black 2.5pt double; text-align: left">$</td> <td style="border-bottom: black 2.5pt double; text-align: right">883,131</td> <td style="text-align: left"> </td></tr> </table>    The following table summarizes the final fair values assigned to the assets and liabilities acquired in addition to the excess of the purchase price over the net assets acquired at the acquisition date.    <table cellspacing="0" cellpadding="0" align="center" style="width: 80%; border-collapse: collapse; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td>JVF Consulting, LLC:</td> <td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center">August 30, 2018</td> <td style="padding-bottom: 1pt"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 83%; text-align: left">Software acquired</td> <td style="width: 1%"> </td> <td style="width: 1%; text-align: left">$</td> <td style="width: 14%; text-align: right">207,000</td> <td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="text-align: left">Identifiable intangible assets:</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-left: 10pt">Tradenames and trademarks</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">87,000</td> <td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="text-align: left; padding-left: 10pt">Non-compete agreements</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">37,000</td> <td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-left: 10pt">Customer relationships</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">104,000</td> <td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="padding-bottom: 1pt">Goodwill</td> <td style="padding-bottom: 1pt"> </td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">380,290</td> <td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 2.5pt; text-align: left; padding-left: 10pt">Total consideration</td> <td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: black 2.5pt double; text-align: left">$</td> <td style="border-bottom: black 2.5pt double; text-align: right">815,290</td> <td style="text-align: left"> </td></tr> </table>

The following is a reconciliation of the share data used in the basic and diluted income per share computations:    <table cellspacing="0" cellpadding="0" style="width: 100%; border-collapse: collapse; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td> </td> <td style="padding-bottom: 1pt"> </td> <td colspan="6" style="border-bottom: black 1pt solid; text-align: center">Three months ended September 30,</td> <td style="padding-bottom: 1pt"> </td> <td style="padding-bottom: 1pt"> </td> <td colspan="6" style="border-bottom: black 1pt solid; text-align: center">Nine months ended September 30,</td> <td style="padding-bottom: 1pt"> </td></tr> <tr style="vertical-align: bottom"> <td> </td> <td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center">2019</td> <td style="padding-bottom: 1pt"> </td> <td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center">2018</td> <td style="padding-bottom: 1pt"> </td> <td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center">2019</td> <td style="padding-bottom: 1pt"> </td> <td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center">2018</td> <td style="padding-bottom: 1pt"> </td></tr> <tr style="vertical-align: bottom"> <td>Basic:</td> <td> </td> <td colspan="2"> </td> <td> </td> <td> </td> <td colspan="2"> </td> <td> </td> <td> </td> <td colspan="2"> </td> <td> </td> <td> </td> <td colspan="2"> </td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 40%; padding-bottom: 2.5pt; padding-left: 10pt">Weighted average shares outstanding</td> <td style="width: 1%; padding-bottom: 2.5pt"> </td> <td style="width: 1%; border-bottom: black 2.5pt double; text-align: left"> </td> <td style="width: 12%; border-bottom: black 2.5pt double; text-align: right">24,791,534</td> <td style="width: 1%; text-align: left"> </td> <td style="width: 1%; padding-bottom: 2.5pt"> </td> <td style="width: 1%; border-bottom: black 2.5pt double; text-align: left"> </td> <td style="width: 12%; border-bottom: black 2.5pt double; text-align: right">24,900,919</td> <td style="width: 1%; text-align: left"> </td> <td style="width: 1%; padding-bottom: 2.5pt"> </td> <td style="width: 1%; border-bottom: black 2.5pt double; text-align: left"> </td> <td style="width: 12%; border-bottom: black 2.5pt double; text-align: right">24,879,556</td> <td style="width: 1%; text-align: left"> </td> <td style="width: 1%; padding-bottom: 2.5pt"> </td> <td style="width: 1%; border-bottom: black 2.5pt double; text-align: left"> </td> <td style="width: 12%; border-bottom: black 2.5pt double; text-align: right">24,756,262</td> <td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Diluted:</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="padding-left: 10pt">Weighted average shares outstanding</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">24,791,534</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">24,900,919</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">24,879,556</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">24,756,262</td> <td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 1pt; padding-left: 10pt">Weighted average effects of dilutive securities</td> <td style="padding-bottom: 1pt"> </td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">180,091</td> <td style="text-align: left"> </td> <td style="padding-bottom: 1pt"> </td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">173,558</td> <td style="text-align: left"> </td> <td style="padding-bottom: 1pt"> </td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">182,793</td> <td style="text-align: left"> </td> <td style="padding-bottom: 1pt"> </td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">182,437</td> <td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="padding-bottom: 2.5pt; padding-left: 20pt">Total</td> <td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: black 2.5pt double; text-align: left"> </td> <td style="border-bottom: black 2.5pt double; text-align: right">24,971,625</td> <td style="text-align: left"> </td> <td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: black 2.5pt double; text-align: left"> </td> <td style="border-bottom: black 2.5pt double; text-align: right">25,074,477</td> <td style="text-align: left"> </td> <td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: black 2.5pt double; text-align: left"> </td> <td style="border-bottom: black 2.5pt double; text-align: right">25,062,349</td> <td style="text-align: left"> </td> <td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: black 2.5pt double; text-align: left"> </td> <td style="border-bottom: black 2.5pt double; text-align: right">24,938,699</td> <td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="padding-bottom: 2.5pt; text-align: left">Antidilutive securities:</td> <td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: black 2.5pt double; text-align: left"> </td> <td style="border-bottom: black 2.5pt double; text-align: right">283,459</td> <td style="text-align: left"> </td> <td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: black 2.5pt double; text-align: left"> </td> <td style="border-bottom: black 2.5pt double; text-align: right">202,750</td> <td style="text-align: left"> </td> <td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: black 2.5pt double; text-align: left"> </td> <td style="border-bottom: black 2.5pt double; text-align: right">283,459</td> <td style="text-align: left"> </td> <td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: black 2.5pt double; text-align: left"> </td> <td style="border-bottom: black 2.5pt double; text-align: right">202,750</td> <td style="text-align: left"> </td></tr></table>

The following table summarizes our intangible and other assets:    <table cellspacing="0" cellpadding="0" style="width: 100%; border-collapse: collapse; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td> </td> <td> </td> <td colspan="2" style="text-align: center">September 30,</td> <td> </td> <td> </td> <td colspan="2" style="text-align: center">December 31,</td> <td> </td> <td> </td> <td style="text-align: center">Estimated</td></tr> <tr style="vertical-align: bottom"> <td> </td> <td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center">2019</td> <td style="padding-bottom: 1pt"> </td> <td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center">2018</td> <td style="padding-bottom: 1pt"> </td> <td style="padding-bottom: 1pt"> </td> <td style="border-bottom: black 1pt solid; text-align: center">Useful Life</td></tr> <tr style="vertical-align: bottom"> <td>Intangible assets subject to amortization: </td> <td> </td> <td colspan="2"> </td> <td> </td> <td> </td> <td colspan="2"> </td> <td> </td> <td> </td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 56%; text-align: left; padding-left: 10pt">Tradenames and trademarks</td> <td style="width: 1%"> </td> <td style="width: 1%; text-align: left">$</td> <td style="width: 11%; text-align: right">417,307</td> <td style="width: 1%; text-align: left"> </td> <td style="width: 1%"> </td> <td style="width: 1%; text-align: left">$</td> <td style="width: 11%; text-align: right">417,307</td> <td style="width: 1%; text-align: left"> </td> <td style="width: 1%"> </td> <td style="width: 15%; text-align: center; padding-left: 5.4pt">2.5  - 8.0 years</td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="padding-left: 10pt">Accreditations</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">85,395</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">85,395</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: center; padding-left: 5.4pt">5.0 years</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-left: 10pt">Customer relationships</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">3,350,551</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">3,350,551</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: center; padding-left: 5.4pt">3.0 - 15.0 years</td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="padding-left: 10pt">Patents</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">970,100</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">970,100</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: center; padding-left: 5.4pt">4.0 years</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 1pt; text-align: left; padding-left: 10pt">Non-compete agreements</td> <td style="padding-bottom: 1pt"> </td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">121,000</td> <td style="text-align: left"> </td> <td style="padding-bottom: 1pt"> </td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">121,000</td> <td style="text-align: left"> </td> <td style="padding-bottom: 1pt"> </td> <td style="padding-bottom: 1pt; text-align: center; padding-left: 5.4pt">5.0 years</td></tr> <tr style="vertical-align: bottom; background-color: white"> <td> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">4,944,353</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">4,944,353</td> <td style="text-align: left"> </td> <td> </td> <td style="padding-left: 5.4pt"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 1pt; text-align: left; padding-left: 20pt">Less accumulated amortization</td> <td style="padding-bottom: 1pt"> </td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">2,031,882</td> <td style="text-align: left"> </td> <td style="padding-bottom: 1pt"> </td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">1,577,558</td> <td style="text-align: left"> </td> <td style="padding-bottom: 1pt"> </td> <td style="padding-bottom: 1pt; padding-left: 5.4pt"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">2,912,471</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">3,366,795</td> <td style="text-align: left"> </td> <td> </td> <td style="padding-left: 5.4pt"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 1pt; text-align: left; padding-left: 10pt">Tradenames/trademarks (not subject to amortization)</td> <td style="padding-bottom: 1pt"> </td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">465,000</td> <td style="text-align: left"> </td> <td style="padding-bottom: 1pt"> </td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">465,000</td> <td style="text-align: left"> </td> <td style="padding-bottom: 1pt"> </td> <td style="padding-bottom: 1pt; padding-left: 5.4pt"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">3,377,471</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">3,831,795</td> <td style="text-align: left"> </td> <td> </td> <td style="padding-left: 5.4pt"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 1pt; text-align: left; padding-left: 10pt">Other assets</td> <td style="padding-bottom: 1pt"> </td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">20,326</td> <td style="text-align: left"> </td> <td style="padding-bottom: 1pt"> </td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">20,326</td> <td style="text-align: left"> </td> <td style="padding-bottom: 1pt"> </td> <td style="padding-bottom: 1pt; padding-left: 5.4pt"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="padding-bottom: 2.5pt; text-align: left; padding-left: 20pt">    Intangible and other assets:</td> <td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: black 2.5pt double; text-align: left">$</td> <td style="border-bottom: black 2.5pt double; text-align: right">3,397,797</td> <td style="text-align: left"> </td> <td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: black 2.5pt double; text-align: left">$</td> <td style="border-bottom: black 2.5pt double; text-align: right">3,852,121</td> <td style="text-align: left"> </td></tr></table>

The following table summarizes our accrued expenses and other current liabilities as of:   <table cellspacing="0" cellpadding="0" style="width: 70%; border-collapse: collapse; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td> </td> <td> </td> <td colspan="2" style="text-align: center">September 30,</td> <td> </td> <td> </td> <td colspan="2" style="text-align: center">December 31,</td> <td> </td></tr> <tr style="vertical-align: bottom"> <td> </td> <td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center">2019</td> <td style="padding-bottom: 1pt"> </td> <td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center">2018</td> <td style="padding-bottom: 1pt"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%; text-align: left">Income and sales taxes payable</td> <td style="width: 1%"> </td> <td style="width: 1%; text-align: left">$</td> <td style="width: 17%; text-align: right">36,616</td> <td style="width: 1%; text-align: left"> </td> <td style="width: 1%"> </td> <td style="width: 1%; text-align: left">$</td> <td style="width: 17%; text-align: right">19,978</td> <td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="text-align: left">Payroll related accruals</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">814,184</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">147,798</td> <td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Customer deposits</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">113,279</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">72,982</td> <td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="padding-bottom: 1pt; text-align: left">Professional fees and other expenses</td> <td style="padding-bottom: 1pt"> </td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">169,515</td> <td style="padding-bottom: 1pt; text-align: left"> </td> <td style="padding-bottom: 1pt"> </td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">251,843</td> <td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 2.5pt"> </td> <td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: black 2.5pt double; text-align: left">$</td> <td style="border-bottom: black 2.5pt double; text-align: right">1,133,594</td> <td style="padding-bottom: 2.5pt; text-align: left"> </td> <td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: black 2.5pt double; text-align: left">$</td> <td style="border-bottom: black 2.5pt double; text-align: right">492,601</td> <td style="padding-bottom: 2.5pt; text-align: left"> </td></tr></table>

Notes Payable consist of the following:    <table cellspacing="0" cellpadding="0" style="width: 75%; border-collapse: collapse; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td> </td> <td> </td> <td colspan="2" style="text-align: center">September 30,</td> <td> </td> <td> </td> <td colspan="2" style="text-align: center">December 31,</td> <td> </td></tr> <tr style="vertical-align: bottom"> <td> </td> <td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center">2019</td> <td style="padding-bottom: 1pt"> </td> <td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center">2018</td> <td style="padding-bottom: 1pt"> </td></tr> <tr style="vertical-align: bottom"> <td> </td> <td> </td> <td colspan="2"> </td> <td> </td> <td> </td> <td colspan="2"> </td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 64%; text-align: left">Vehicle note</td> <td style="width: 1%"> </td> <td style="width: 1%; text-align: left">$</td> <td style="width: 15%; text-align: right">35,655</td> <td style="width: 1%; text-align: left"> </td> <td style="width: 1%"> </td> <td style="width: 1%; text-align: left">$</td> <td style="width: 15%; text-align: right">42,393</td> <td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="padding-bottom: 1pt; text-align: left">Less current portion of notes payable and other long-term debt</td> <td style="padding-bottom: 1pt"> </td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">(10,689</td> <td style="padding-bottom: 1pt; text-align: left">)</td> <td style="padding-bottom: 1pt"> </td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">(10,173</td> <td style="padding-bottom: 1pt; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 2.5pt; text-align: left">Notes payable and other long-term debt</td> <td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: black 2.5pt double; text-align: left">$</td> <td style="border-bottom: black 2.5pt double; text-align: right">24,966</td> <td style="padding-bottom: 2.5pt; text-align: left"> </td> <td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: black 2.5pt double; text-align: left">$</td> <td style="border-bottom: black 2.5pt double; text-align: right">32,220</td> <td style="padding-bottom: 2.5pt; text-align: left"> </td></tr></table>

The amount of stock-based compensation expense is as follows:    <table cellspacing="0" cellpadding="0" align="center" style="width: 95%; border-collapse: collapse; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td> </td> <td> </td> <td colspan="6" style="text-align: center">Three months ended September 30,</td> <td> </td> <td> </td> <td colspan="6" style="text-align: center">Nine months ended September 30,</td> <td> </td></tr> <tr style="vertical-align: bottom"> <td> </td> <td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center">2019</td> <td style="padding-bottom: 1pt"> </td> <td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center">2018</td> <td style="padding-bottom: 1pt"> </td> <td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center">2019</td> <td style="padding-bottom: 1pt"> </td> <td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center">2018</td> <td style="padding-bottom: 1pt"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 40%; text-align: left">Stock options</td> <td style="width: 1%"> </td> <td style="width: 1%; text-align: left">$</td> <td style="width: 12%; text-align: right">33,975</td> <td style="width: 1%; text-align: left"> </td> <td style="width: 1%"> </td> <td style="width: 1%; text-align: left">$</td> <td style="width: 12%; text-align: right">28,445</td> <td style="width: 1%; text-align: left"> </td> <td style="width: 1%"> </td> <td style="width: 1%; text-align: left">$</td> <td style="width: 12%; text-align: right">113,857</td> <td style="width: 1%; text-align: left"> </td> <td style="width: 1%"> </td> <td style="width: 1%; text-align: left">$</td> <td style="width: 12%; text-align: right">64,820</td> <td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="padding-bottom: 1pt; text-align: left">Restricted stock awards</td> <td style="padding-bottom: 1pt"> </td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">2,697</td> <td style="padding-bottom: 1pt; text-align: left"> </td> <td style="padding-bottom: 1pt"> </td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">16,773</td> <td style="padding-bottom: 1pt; text-align: left"> </td> <td style="padding-bottom: 1pt"> </td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">14,613</td> <td style="padding-bottom: 1pt; text-align: left"> </td> <td style="padding-bottom: 1pt"> </td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">60,419</td> <td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 2.5pt; padding-left: 10pt">Total</td> <td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: black 2.5pt double; text-align: left">$</td> <td style="border-bottom: black 2.5pt double; text-align: right">36,672</td> <td style="padding-bottom: 2.5pt; text-align: left"> </td> <td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: black 2.5pt double; text-align: left">$</td> <td style="border-bottom: black 2.5pt double; text-align: right">45,218</td> <td style="padding-bottom: 2.5pt; text-align: left"> </td> <td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: black 2.5pt double; text-align: left">$</td> <td style="border-bottom: black 2.5pt double; text-align: right">128,470</td> <td style="padding-bottom: 2.5pt; text-align: left"> </td> <td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: black 2.5pt double; text-align: left">$</td> <td style="border-bottom: black 2.5pt double; text-align: right">125,239</td> <td style="padding-bottom: 2.5pt; text-align: left"> </td></tr></table>

The Company estimated the fair value of stock options using the Black-Scholes-Merton option pricing model with the following assumptions:    <table cellspacing="0" cellpadding="0" align="center" style="width: 90%; border-collapse: collapse; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td> </td> <td> </td> <td colspan="6" style="text-align: center">Nine months ended September 30,</td> <td> </td></tr> <tr style="vertical-align: bottom"> <td> </td> <td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center">2019</td> <td style="padding-bottom: 1pt"> </td> <td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center">2018</td> <td style="padding-bottom: 1pt"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 68%; text-align: left">Number of options awarded to purchase common shares</td> <td style="width: 1%"> </td> <td style="width: 1%; text-align: left"> </td> <td style="width: 13%; text-align: right">10,000</td> <td style="width: 1%; text-align: left"> </td> <td style="width: 1%"> </td> <td style="width: 1%; text-align: left"> </td> <td style="width: 13%; text-align: right">105,750</td> <td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="text-align: left">Risk-free interest rate</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">1.50%</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">2.6% - 2.8%</td> <td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Expected volatility</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">100.3%</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">149.3 - 154.3%</td> <td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="text-align: left">Assumed dividend yield</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">N/A</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">N/A</td> <td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Expected life of options from the date of grant</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">9.8 years</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">9.8 years</td> <td style="text-align: left"> </td></tr></table>

The estimated unrecognized compensation cost from unvested awards which will be recognized ratably over the remaining vesting phase is as follows:    <table cellspacing="0" cellpadding="0" align="center" style="width: 80%; border-collapse: collapse; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td style="border-bottom: black 1pt solid; text-align: left">Years ended December 31st:</td> <td style="padding-bottom: 1pt"> </td> <td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center">Unvested stock options</td> <td style="padding-bottom: 1pt"> </td> <td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center">Unvested restricted stock awards</td> <td style="padding-bottom: 1pt"> </td> <td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center">Total unrecognized compensation expense</td> <td style="padding-bottom: 1pt"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 45%; text-align: left">2019 (remaining three months)</td> <td style="width: 1%; text-align: left"> </td> <td style="width: 1%"> </td> <td style="width: 1%; text-align: left"> </td> <td style="width: 15%; text-align: right">36,909</td> <td style="width: 1%; text-align: left"> </td> <td style="width: 1%"> </td> <td style="width: 1%; text-align: left"> </td> <td style="width: 15%; text-align: right">1,061</td> <td style="width: 1%; text-align: left"> </td> <td style="width: 1%"> </td> <td style="width: 1%; text-align: left"> </td> <td style="width: 15%; text-align: right">37,970</td> <td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="text-align: left">2020</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">113,378</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">4,251</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">117,629</td> <td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">2021</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">70,896</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">706</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">71,602</td> <td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="text-align: left">2022</td> <td style="padding-bottom: 1pt; text-align: left"> </td> <td style="padding-bottom: 1pt"> </td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">3,722</td> <td style="padding-bottom: 1pt; text-align: left"> </td> <td style="padding-bottom: 1pt"> </td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">—</td> <td style="padding-bottom: 1pt; text-align: left"> </td> <td style="padding-bottom: 1pt"> </td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">3,722</td> <td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left"> </td> <td style="padding-bottom: 2.5pt; text-align: left"> </td> <td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: black 2.5pt double; text-align: left">$</td> <td style="border-bottom: black 2.5pt double; text-align: right">224,905</td> <td style="padding-bottom: 2.5pt; text-align: left"> </td> <td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: black 2.5pt double; text-align: left">$</td> <td style="border-bottom: black 2.5pt double; text-align: right">6,018</td> <td style="padding-bottom: 2.5pt; text-align: left"> </td> <td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: black 2.5pt double; text-align: left">$</td> <td style="border-bottom: black 2.5pt double; text-align: right">230,923</td> <td style="padding-bottom: 2.5pt; text-align: left"> </td></tr></table>

Stock option activity under our Equity Incentive Plan is summarized as follows:    <table cellspacing="0" cellpadding="0" style="width: 100%; border-collapse: collapse; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td style="text-align: left"> </td> <td> </td> <td> </td> <td colspan="2"> </td> <td> </td> <td> </td> <td colspan="2"> </td> <td> </td> <td> </td> <td colspan="2"> </td> <td> </td> <td> </td> <td colspan="2" style="text-align: center">Weighted avg.</td> <td> </td> <td> </td> <td colspan="2"> </td> <td> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: left"> </td> <td> </td> <td> </td> <td colspan="2"> </td> <td> </td> <td> </td> <td colspan="2" style="text-align: center">Weighted avg.</td> <td> </td> <td> </td> <td colspan="2" style="text-align: center">Weighted avg.</td> <td> </td> <td> </td> <td colspan="2" style="text-align: center">remaining</td> <td> </td> <td> </td> <td colspan="2"> </td> <td> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: left"> </td> <td> </td> <td> </td> <td colspan="2" style="text-align: center">Number of</td> <td> </td> <td> </td> <td colspan="2" style="text-align: center">exercise price</td> <td> </td> <td> </td> <td colspan="2" style="text-align: center">grant date fair</td> <td> </td> <td> </td> <td colspan="2" style="text-align: center">contractual life</td> <td> </td> <td> </td> <td colspan="2" style="text-align: center">Aggregate</td> <td> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: left"> </td> <td style="padding-bottom: 1pt"> </td> <td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center">awards</td> <td style="padding-bottom: 1pt"> </td> <td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center">per share</td> <td style="padding-bottom: 1pt"> </td> <td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center">value per share</td> <td style="padding-bottom: 1pt"> </td> <td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center">(in years)</td> <td style="padding-bottom: 1pt"> </td> <td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center">intrinsic value</td> <td style="padding-bottom: 1pt"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: left"> </td> <td> </td> <td> </td> <td colspan="2"> </td> <td> </td> <td> </td> <td colspan="2"> </td> <td> </td> <td> </td> <td colspan="2"> </td> <td> </td> <td> </td> <td colspan="2"> </td> <td> </td> <td> </td> <td colspan="2"> </td> <td> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 34%; text-align: left">Outstanding, December 31, 2018</td> <td style="width: 1%; padding-bottom: 2.5pt; text-align: left"> </td> <td style="width: 1%; padding-bottom: 2.5pt"> </td> <td style="width: 1%; text-align: left"> </td> <td style="width: 10%; text-align: right">434,451</td> <td style="width: 1%; padding-bottom: 2.5pt; text-align: left"> </td> <td style="width: 1%; padding-bottom: 2.5pt"> </td> <td style="width: 1%; text-align: left">$</td> <td style="width: 10%; text-align: right">1.49</td> <td style="width: 1%; padding-bottom: 2.5pt; text-align: left"> </td> <td style="width: 1%; padding-bottom: 2.5pt"> </td> <td style="width: 1%; text-align: left">$</td> <td style="width: 10%; text-align: right">1.47</td> <td style="width: 1%; padding-bottom: 2.5pt; text-align: left"> </td> <td style="width: 1%; padding-bottom: 2.5pt"> </td> <td style="width: 1%; text-align: left"> </td> <td style="width: 10%; text-align: right">6.91</td> <td style="width: 1%; padding-bottom: 2.5pt; text-align: left"> </td> <td style="width: 1%; padding-bottom: 2.5pt"> </td> <td style="width: 1%; border-bottom: black 2.5pt double; text-align: left">$</td> <td style="width: 10%; border-bottom: black 2.5pt double; text-align: right">230,039</td> <td style="width: 1%; padding-bottom: 2.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="text-align: left; padding-left: 10pt">Granted</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">10,000</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left">$</td> <td style="text-align: right">1.53</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left">$</td> <td style="text-align: right">1.71</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">10.00</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left">$</td> <td style="text-align: right">—</td> <td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-left: 10pt">Exercised</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">—</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left">$</td> <td style="text-align: right">—</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left">$</td> <td style="text-align: right">—</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">—</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left">$</td> <td style="text-align: right">—</td> <td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="text-align: left; padding-left: 10pt">Expired/Forfeited</td> <td style="padding-bottom: 1pt; text-align: left"> </td> <td style="padding-bottom: 1pt"> </td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">(7,325</td> <td style="padding-bottom: 1pt; text-align: left">)</td> <td style="padding-bottom: 1pt"> </td> <td style="border-bottom: black 1pt solid; text-align: left">$</td> <td style="border-bottom: black 1pt solid; text-align: right">1.83</td> <td style="padding-bottom: 1pt; text-align: left"> </td> <td style="padding-bottom: 1pt"> </td> <td style="border-bottom: black 1pt solid; text-align: left">$</td> <td style="border-bottom: black 1pt solid; text-align: right">1.86</td> <td style="padding-bottom: 1pt; text-align: left"> </td> <td style="padding-bottom: 1pt"> </td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">—</td> <td style="padding-bottom: 1pt; text-align: left"> </td> <td style="padding-bottom: 1pt"> </td> <td style="border-bottom: black 1pt solid; text-align: left">$</td> <td style="border-bottom: black 1pt solid; text-align: right">—</td> <td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Outstanding, September 30, 2019</td> <td style="padding-bottom: 2.5pt; text-align: left"> </td> <td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: black 2.5pt double; text-align: left"> </td> <td style="border-bottom: black 2.5pt double; text-align: right">437,126</td> <td style="padding-bottom: 2.5pt; text-align: left"> </td> <td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: black 2.5pt double; text-align: left">$</td> <td style="border-bottom: black 2.5pt double; text-align: right">1.46</td> <td style="padding-bottom: 2.5pt; text-align: left"> </td> <td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: black 2.5pt double; text-align: left">$</td> <td style="border-bottom: black 2.5pt double; text-align: right">1.49</td> <td style="padding-bottom: 2.5pt; text-align: left"> </td> <td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: black 2.5pt double; text-align: left"> </td> <td style="border-bottom: black 2.5pt double; text-align: right">6.23</td> <td style="padding-bottom: 2.5pt; text-align: left"> </td> <td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: black 2.5pt double; text-align: left">$</td> <td style="border-bottom: black 2.5pt double; text-align: right">148,775</td> <td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="text-align: left">Exercisable, September 30, 2019</td> <td style="padding-bottom: 2.5pt; text-align: left"> </td> <td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: black 2.5pt double; text-align: left"> </td> <td style="border-bottom: black 2.5pt double; text-align: right">256,919</td> <td style="padding-bottom: 2.5pt; text-align: left"> </td> <td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: black 2.5pt double; text-align: left">$</td> <td style="border-bottom: black 2.5pt double; text-align: right">1.21</td> <td style="padding-bottom: 2.5pt; text-align: left"> </td> <td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: black 2.5pt double; text-align: left">$</td> <td style="border-bottom: black 2.5pt double; text-align: right">1.22</td> <td style="padding-bottom: 2.5pt; text-align: left"> </td> <td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: black 2.5pt double; text-align: left"> </td> <td style="border-bottom: black 2.5pt double; text-align: right">4.43</td> <td style="padding-bottom: 2.5pt; text-align: left"> </td> <td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: black 2.5pt double; text-align: left">$</td> <td style="border-bottom: black 2.5pt double; text-align: right">148,775</td> <td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Unvested, September 30, 2019</td> <td style="padding-bottom: 2.5pt; text-align: left"> </td> <td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: black 2.5pt double; text-align: left"> </td> <td style="border-bottom: black 2.5pt double; text-align: right">180,207</td> <td style="padding-bottom: 2.5pt; text-align: left"> </td> <td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: black 2.5pt double; text-align: left">$</td> <td style="border-bottom: black 2.5pt double; text-align: right">1.81</td> <td style="padding-bottom: 2.5pt; text-align: left"> </td> <td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: black 2.5pt double; text-align: left">$</td> <td style="border-bottom: black 2.5pt double; text-align: right">1.88</td> <td style="padding-bottom: 2.5pt; text-align: left"> </td> <td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: black 2.5pt double; text-align: left"> </td> <td style="border-bottom: black 2.5pt double; text-align: right">8.78</td> <td style="padding-bottom: 2.5pt; text-align: left"> </td> <td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: black 2.5pt double; text-align: left">$</td> <td style="border-bottom: black 2.5pt double; text-align: right">—</td> <td style="padding-bottom: 2.5pt; text-align: left"> </td></tr></table>

Restricted stock activity under our Equity Incentive Plan is summarized as follows:    <table cellspacing="0" cellpadding="0" align="center" style="width: 76%; border-collapse: collapse; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td style="text-align: left"> </td> <td> </td> <td> </td> <td colspan="2"> </td> <td> </td> <td> </td> <td colspan="2" style="text-align: center">Weighted avg.</td> <td> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: left"> </td> <td> </td> <td> </td> <td colspan="2" style="text-align: center">Number of</td> <td> </td> <td> </td> <td colspan="2" style="text-align: center">grant date</td> <td> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: left"> </td> <td style="padding-bottom: 1pt"> </td> <td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center">options</td> <td style="padding-bottom: 1pt"> </td> <td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center">fair value</td> <td style="padding-bottom: 1pt"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 63%; text-align: left">Non-vested restricted shares, December 31, 2018</td> <td style="width: 1%; text-align: left"> </td> <td style="width: 1%"> </td> <td style="width: 1%; text-align: left"> </td> <td style="width: 15%; text-align: right">30,000</td> <td style="width: 1%; text-align: left"> </td> <td style="width: 1%"> </td> <td style="width: 1%; text-align: left">$</td> <td style="width: 15%; text-align: right">2.38</td> <td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="text-align: left; padding-left: 10pt">Granted</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">—</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left">$</td> <td style="text-align: right">—</td> <td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-left: 10pt">Vested</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">(25,000</td> <td style="text-align: left">)</td> <td> </td> <td style="text-align: left">$</td> <td style="text-align: right">2.35</td> <td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="text-align: left; padding-left: 10pt">Forfeited</td> <td style="padding-bottom: 1pt; text-align: left"> </td> <td style="padding-bottom: 1pt"> </td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">—</td> <td style="padding-bottom: 1pt; text-align: left"> </td> <td style="padding-bottom: 1pt"> </td> <td style="text-align: left">$</td> <td style="text-align: right">—</td> <td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Non-vested restricted shares, September 30, 2019</td> <td style="padding-bottom: 2.5pt; text-align: left"> </td> <td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: black 2.5pt double; text-align: left"> </td> <td style="border-bottom: black 2.5pt double; text-align: right">5,000</td> <td style="padding-bottom: 2.5pt; text-align: left"> </td> <td style="padding-bottom: 2.5pt"> </td> <td style="text-align: left">$</td> <td style="text-align: right">2.55</td> <td style="padding-bottom: 2.5pt; text-align: left"> </td></tr></table>

Revenue attributable to each of our identified revenue categories is disaggregated in the table below.      <table cellspacing="0" cellpadding="0" style="width: 100%; border-collapse: collapse; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td> </td> <td style="padding-bottom: 1pt"> </td> <td colspan="14" style="border-bottom: black 1pt solid; text-align: center">Three months ended September 30, 2019</td> <td style="padding-bottom: 1pt"> </td> <td style="padding-bottom: 1pt"> </td> <td colspan="14" style="border-bottom: black 1pt solid; text-align: center">Three months ended September 30, 2018</td> <td style="padding-bottom: 1pt"> </td></tr> <tr style="vertical-align: bottom"> <td> </td> <td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center">Verification and Certification Segment</td> <td style="padding-bottom: 1pt"> </td> <td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center">Software Sales and Related Consulting Segment</td> <td style="padding-bottom: 1pt"> </td> <td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center">Eliminations and Other</td> <td style="padding-bottom: 1pt"> </td> <td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center">Consolidated Totals</td> <td style="padding-bottom: 1pt"> </td> <td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center">Verification and Certification Segment</td> <td style="padding-bottom: 1pt"> </td> <td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center">Software Sales and Related Consulting Segment</td> <td style="padding-bottom: 1pt"> </td> <td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center">Eliminations and Other</td> <td style="padding-bottom: 1pt"> </td> <td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center">Consolidated Totals</td> <td style="padding-bottom: 1pt"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="text-align: left">Revenues:</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 12%; text-align: left; padding-left: 10pt">Verification and certification service revenue</td> <td style="width: 1%"> </td> <td style="width: 1%; text-align: left">$</td> <td style="width: 8%; text-align: right">4,759,383</td> <td style="width: 1%; text-align: left"> </td> <td style="width: 1%"> </td> <td style="width: 1%; text-align: left">$</td> <td style="width: 8%; text-align: right">—</td> <td style="width: 1%; text-align: left"> </td> <td style="width: 1%"> </td> <td style="width: 1%; text-align: left">$</td> <td style="width: 8%; text-align: right">—</td> <td style="width: 1%; text-align: left"> </td> <td style="width: 1%"> </td> <td style="width: 1%; text-align: left">$</td> <td style="width: 8%; text-align: right">4,759,383</td> <td style="width: 1%; text-align: left"> </td> <td style="width: 1%"> </td> <td style="width: 1%; text-align: left">$</td> <td style="width: 8%; text-align: right">3,906,996</td> <td style="width: 1%; text-align: left"> </td> <td style="width: 1%"> </td> <td style="width: 1%; text-align: left">$</td> <td style="width: 8%; text-align: right">—</td> <td style="width: 1%; text-align: left"> </td> <td style="width: 1%"> </td> <td style="width: 1%; text-align: left">$</td> <td style="width: 8%; text-align: right">—</td> <td style="width: 1%; text-align: left"> </td> <td style="width: 1%"> </td> <td style="width: 1%; text-align: left">$</td> <td style="width: 8%; text-align: right">3,906,996</td> <td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="text-align: left; padding-left: 10pt">Product sales</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">1,086,272</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">—</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">—</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">1,086,272</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">783,303</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">—</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">—</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">783,303</td> <td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-left: 10pt">Software license, maintenance and support services revenue</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">—</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">286,816</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">(60,000</td> <td style="text-align: left">)</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">226,816</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">—</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">208,541</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">—</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">208,541</td> <td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="padding-bottom: 1pt; text-align: left; padding-left: 10pt">Software-related consulting service revenue</td> <td style="padding-bottom: 1pt"> </td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">—</td> <td style="padding-bottom: 1pt; text-align: left"> </td> <td style="padding-bottom: 1pt"> </td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">196,723</td> <td style="padding-bottom: 1pt; text-align: left"> </td> <td style="padding-bottom: 1pt"> </td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">(36,712</td> <td style="padding-bottom: 1pt; text-align: left">)</td> <td style="padding-bottom: 1pt"> </td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">160,011</td> <td style="padding-bottom: 1pt; text-align: left"> </td> <td style="padding-bottom: 1pt"> </td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">—</td> <td style="padding-bottom: 1pt; text-align: left"> </td> <td style="padding-bottom: 1pt"> </td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">226,538</td> <td style="padding-bottom: 1pt; text-align: left"> </td> <td style="padding-bottom: 1pt"> </td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">—</td> <td style="padding-bottom: 1pt; text-align: left"> </td> <td style="padding-bottom: 1pt"> </td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">226,538</td> <td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 1pt; text-align: left; padding-left: 20pt">Total revenues</td> <td style="padding-bottom: 1pt"> </td> <td style="border-bottom: black 1pt solid; text-align: left">$</td> <td style="border-bottom: black 1pt solid; text-align: right">5,845,655</td> <td style="padding-bottom: 1pt; text-align: left"> </td> <td style="padding-bottom: 1pt"> </td> <td style="border-bottom: black 1pt solid; text-align: left">$</td> <td style="border-bottom: black 1pt solid; text-align: right">483,539</td> <td style="padding-bottom: 1pt; text-align: left"> </td> <td style="padding-bottom: 1pt"> </td> <td style="border-bottom: black 1pt solid; text-align: left">$</td> <td style="border-bottom: black 1pt solid; text-align: right">(96,712</td> <td style="padding-bottom: 1pt; text-align: left">)</td> <td style="padding-bottom: 1pt"> </td> <td style="border-bottom: black 1pt solid; text-align: left">$</td> <td style="border-bottom: black 1pt solid; text-align: right">6,232,482</td> <td style="padding-bottom: 1pt; text-align: left"> </td> <td style="padding-bottom: 1pt"> </td> <td style="border-bottom: black 1pt solid; text-align: left">$</td> <td style="border-bottom: black 1pt solid; text-align: right">4,690,299</td> <td style="padding-bottom: 1pt; text-align: left"> </td> <td style="padding-bottom: 1pt"> </td> <td style="border-bottom: black 1pt solid; text-align: left">$</td> <td style="border-bottom: black 1pt solid; text-align: right">435,079</td> <td style="padding-bottom: 1pt; text-align: left"> </td> <td style="padding-bottom: 1pt"> </td> <td style="border-bottom: black 1pt solid; text-align: left">$</td> <td style="border-bottom: black 1pt solid; text-align: right">—</td> <td style="padding-bottom: 1pt; text-align: left"> </td> <td style="padding-bottom: 1pt"> </td> <td style="border-bottom: black 1pt solid; text-align: left">$</td> <td style="border-bottom: black 1pt solid; text-align: right">5,125,378</td> <td style="padding-bottom: 1pt; text-align: left"> </td></tr> </table>   <table cellspacing="0" cellpadding="0" style="width: 100%; border-collapse: collapse; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td> </td> <td style="padding-bottom: 1pt"> </td> <td colspan="14" style="border-bottom: black 1pt solid; text-align: center">Nine months ended September 30, 2019</td> <td style="padding-bottom: 1pt"> </td> <td style="padding-bottom: 1pt"> </td> <td colspan="14" style="border-bottom: black 1pt solid; text-align: center">Nine months ended September 30, 2018</td> <td style="padding-bottom: 1pt"> </td></tr> <tr style="vertical-align: bottom"> <td> </td> <td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center">Verification and Certification Segment</td> <td style="padding-bottom: 1pt"> </td> <td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center">Software Sales and Related Consulting Segment</td> <td style="padding-bottom: 1pt"> </td> <td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center">Eliminations and Other</td> <td style="padding-bottom: 1pt"> </td> <td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center">Consolidated Totals</td> <td style="padding-bottom: 1pt"> </td> <td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center">Verification and Certification Segment</td> <td style="padding-bottom: 1pt"> </td> <td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center">Software Sales and Related Consulting Segment</td> <td style="padding-bottom: 1pt"> </td> <td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center">Eliminations and Other</td> <td style="padding-bottom: 1pt"> </td> <td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center">Consolidated Totals</td> <td style="padding-bottom: 1pt"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="text-align: left">Revenues:</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 12%; text-align: left; padding-left: 10pt">Verification and certification service revenue</td> <td style="width: 1%"> </td> <td style="width: 1%; text-align: left">$</td> <td style="width: 8%; text-align: right">11,314,318</td> <td style="width: 1%; text-align: left"> </td> <td style="width: 1%"> </td> <td style="width: 1%; text-align: left">$</td> <td style="width: 8%; text-align: right">—</td> <td style="width: 1%; text-align: left"> </td> <td style="width: 1%"> </td> <td style="width: 1%; text-align: left">$</td> <td style="width: 8%; text-align: right">—</td> <td style="width: 1%; text-align: left"> </td> <td style="width: 1%"> </td> <td style="width: 1%; text-align: left">$</td> <td style="width: 8%; text-align: right">11,314,318</td> <td style="width: 1%; text-align: left"> </td> <td style="width: 1%"> </td> <td style="width: 1%; text-align: left">$</td> <td style="width: 8%; text-align: right">10,210,947</td> <td style="width: 1%; text-align: left"> </td> <td style="width: 1%"> </td> <td style="width: 1%; text-align: left">$</td> <td style="width: 8%; text-align: right">—</td> <td style="width: 1%; text-align: left"> </td> <td style="width: 1%"> </td> <td style="width: 1%; text-align: left">$</td> <td style="width: 8%; text-align: right">—</td> <td style="width: 1%; text-align: left"> </td> <td style="width: 1%"> </td> <td style="width: 1%; text-align: left">$</td> <td style="width: 8%; text-align: right">10,210,947</td> <td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="text-align: left; padding-left: 10pt">Product sales</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">2,362,663</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">—</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">—</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">2,362,663</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">1,633,509</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">—</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">—</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">1,633,509</td> <td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-left: 10pt">Software license, maintenance and support services revenue</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">—</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">969,056</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">(147,277</td> <td style="text-align: left">)</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">821,779</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">—</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">759,301</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">—</td> <td style="text-align: left"> </td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">759,301</td> <td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="padding-bottom: 1pt; text-align: left; padding-left: 10pt">Software-related consulting service revenue</td> <td style="padding-bottom: 1pt"> </td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">—</td> <td style="padding-bottom: 1pt; text-align: left"> </td> <td style="padding-bottom: 1pt"> </td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">660,755</td> <td style="padding-bottom: 1pt; text-align: left"> </td> <td style="padding-bottom: 1pt"> </td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">(84,234</td> <td style="padding-bottom: 1pt; text-align: left">)</td> <td style="padding-bottom: 1pt"> </td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">576,521</td> <td style="padding-bottom: 1pt; text-align: left"> </td> <td style="padding-bottom: 1pt"> </td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">—</td> <td style="padding-bottom: 1pt; text-align: left"> </td> <td style="padding-bottom: 1pt"> </td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">580,731</td> <td style="padding-bottom: 1pt; text-align: left"> </td> <td style="padding-bottom: 1pt"> </td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">—</td> <td style="padding-bottom: 1pt; text-align: left"> </td> <td style="padding-bottom: 1pt"> </td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">580,731</td> <td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 1pt; text-align: left; padding-left: 20pt">Total revenues</td> <td style="padding-bottom: 1pt"> </td> <td style="border-bottom: black 1pt solid; text-align: left">$</td> <td style="border-bottom: black 1pt solid; text-align: right">13,676,981</td> <td style="padding-bottom: 1pt; text-align: left"> </td> <td style="padding-bottom: 1pt"> </td> <td style="border-bottom: black 1pt solid; text-align: left">$</td> <td style="border-bottom: black 1pt solid; text-align: right">1,629,811</td> <td style="padding-bottom: 1pt; text-align: left"> </td> <td style="padding-bottom: 1pt"> </td> <td style="border-bottom: black 1pt solid; text-align: left">$</td> <td style="border-bottom: black 1pt solid; text-align: right">(231,511</td> <td style="padding-bottom: 1pt; text-align: left">)</td> <td style="padding-bottom: 1pt"> </td> <td style="border-bottom: black 1pt solid; text-align: left">$</td> <td style="border-bottom: black 1pt solid; text-align: right">15,075,281</td> <td style="padding-bottom: 1pt; text-align: left"> </td> <td style="padding-bottom: 1pt"> </td> <td style="border-bottom: black 1pt solid; text-align: left">$</td> <td style="border-bottom: black 1pt solid; text-align: right">11,844,456</td> <td style="padding-bottom: 1pt; text-align: left"> </td> <td style="padding-bottom: 1pt"> </td> <td style="border-bottom: black 1pt solid; text-align: left">$</td> <td style="border-bottom: black 1pt solid; text-align: right">1,340,032</td> <td style="padding-bottom: 1pt; text-align: left"> </td> <td style="padding-bottom: 1pt"> </td> <td style="border-bottom: black 1pt solid; text-align: left">$</td> <td style="border-bottom: black 1pt solid; text-align: right">—</td> <td style="padding-bottom: 1pt; text-align: left"> </td> <td style="padding-bottom: 1pt"> </td> <td style="border-bottom: black 1pt solid; text-align: left">$</td> <td style="border-bottom: black 1pt solid; text-align: right">13,184,488</td> </tr></table>

The following table reflects the changes in our contract liabilities during the three month period ended September 30, 2019:   <table cellspacing="0" cellpadding="0" style="width: 60%; border-collapse: collapse; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td style="text-align: left; padding-left: 10pt">Deferred revenue:</td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 79%; padding-left: 20pt">Unearned revenue June 30, 2019</td> <td style="width: 1%; text-align: left">$</td> <td style="width: 19%; text-align: right">1,143,158</td> <td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="text-align: left; padding-left: 20pt">Unearned billings</td> <td style="text-align: left"> </td> <td style="text-align: right">434,005</td> <td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 1pt; text-align: left; padding-left: 20pt">Revenue recognized</td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">(625,337</td> <td style="padding-bottom: 1pt; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="padding-bottom: 2pt; padding-left: 20pt">Unearned revenue September 30, 2019</td> <td style="border-bottom: black 2pt double; text-align: left">$</td> <td style="border-bottom: black 2pt double; text-align: right">951,826</td> <td style="padding-bottom: 2pt; text-align: left"> </td></tr> </table>   The following table reflects the changes in our contract liabilities during the nine month period ended September 30, 2019:         <table cellspacing="0" cellpadding="0" style="width: 60%; border-collapse: collapse; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td style="width: 79%; text-align: left; padding-left: 10pt">Deferred revenue:</td> <td style="width: 1%; text-align: left"> </td> <td style="width: 19%; text-align: right"> </td> <td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 20pt">Unearned revenue January 1, 2019</td> <td style="text-align: left">$</td> <td style="text-align: right">654,872</td> <td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="text-align: left; padding-left: 20pt">Unearned billings</td> <td style="text-align: left"> </td> <td style="text-align: right">2,187,176</td> <td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 1pt; text-align: left; padding-left: 20pt">Revenue recognized</td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">(1,890,222</td> <td style="padding-bottom: 1pt; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="padding-bottom: 2pt; padding-left: 20pt">Unearned revenue September 30, 2019</td> <td style="border-bottom: black 2pt double; text-align: left">$</td> <td style="border-bottom: black 2pt double; text-align: right">951,826</td> <td style="padding-bottom: 2pt; text-align: left"> </td></tr></table>

The components of lease expense were as follows:    <table cellspacing="0" cellpadding="0" style="width: 100%; border-collapse: collapse; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td> </td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center">Three months ended September 30, 2019</td> <td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center">Nine months ended September 30, 2019</td> <td style="padding-bottom: 1pt"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 74%; text-align: left">Operating lease cost</td> <td style="width: 1%; text-align: left">$</td> <td style="width: 11%; text-align: right">115,674</td> <td style="width: 1%; text-align: left"> </td> <td style="width: 1%; text-align: left">$</td> <td style="width: 11%; text-align: right">353,267</td> <td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="text-align: left">Finance lease cost</td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 10pt">Amortization of assets</td> <td style="text-align: left"> </td> <td style="text-align: right">2,025</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">6,558</td> <td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="padding-bottom: 1pt; text-align: left; padding-left: 10pt">Interest on finance lease obligations</td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">1,763</td> <td style="padding-bottom: 1pt; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">5,723</td> <td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 2pt; text-align: left">Total net lease cost</td> <td style="border-bottom: black 2pt double; text-align: left">$</td> <td style="border-bottom: black 2pt double; text-align: right">119,462</td> <td style="padding-bottom: 2pt; text-align: left"> </td> <td style="border-bottom: black 2pt double; text-align: left">$</td> <td style="border-bottom: black 2pt double; text-align: right">365,548</td> <td style="padding-bottom: 2pt; text-align: left"> </td></tr></table>

Supplemental balance sheet information related to leases was as follows:    <table cellspacing="0" cellpadding="0" style="width: 100%; border-collapse: collapse; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td style="text-align: center"> </td> <td colspan="8" style="border-bottom: black 1pt solid; text-align: center">September 30, 2019</td> <td style="text-align: center"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: center">Operating leases:  </td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center">Related Party</td> <td style="text-align: center"> </td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center">Other</td> <td style="text-align: center"> </td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center">Total </td> <td style="text-align: center"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 61%; text-align: left; padding-left: 10pt">Right of use asset</td> <td style="width: 1%; text-align: left">$</td> <td style="width: 11%; text-align: right">2,975,520</td> <td style="width: 1%; text-align: left"> </td> <td style="width: 1%; text-align: left">$</td> <td style="width: 11%; text-align: right">332,869</td> <td style="width: 1%; text-align: left"> </td> <td style="width: 1%; text-align: left">$</td> <td style="width: 11%; text-align: right">3,308,389</td> <td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-left: 10pt">Current operating lease liabilities</td> <td style="text-align: left"> </td> <td style="text-align: right">153,456</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">79,447</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">232,903</td> <td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="padding-bottom: 1pt; text-align: left; padding-left: 10pt">Noncurrent operating lease liabilities</td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">3,301,204</td> <td style="padding-bottom: 1pt; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">286,836</td> <td style="padding-bottom: 1pt; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">3,588,040</td> <td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 2pt; text-align: left; padding-left: 20pt">Total operating lease liabilities</td> <td style="border-bottom: black 2pt double; text-align: left">$</td> <td style="border-bottom: black 2pt double; text-align: right">3,454,660</td> <td style="padding-bottom: 2pt; text-align: left"> </td> <td style="border-bottom: black 2pt double; text-align: left">$</td> <td style="border-bottom: black 2pt double; text-align: right">366,283</td> <td style="padding-bottom: 2pt; text-align: left"> </td> <td style="border-bottom: black 2pt double; text-align: left">$</td> <td style="border-bottom: black 2pt double; text-align: right">3,820,943</td> <td style="padding-bottom: 2pt; text-align: left"> </td></tr> </table>   <table cellspacing="0" cellpadding="0" style="width: 70%; border-collapse: collapse; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td style="padding-bottom: 1pt; text-align: left">Finance leases:</td> <td colspan="3" style="border-bottom: black 1pt solid; text-align: center">September 30, 2019</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 81%; text-align: left; padding-left: 10pt">Right of use asset, at cost</td> <td style="width: 1%; text-align: left">$</td> <td style="width: 17%; text-align: right">43,041</td> <td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="padding-bottom: 1pt; text-align: left; padding-left: 10pt">Accumulated amortization</td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">(20,086</td> <td style="padding-bottom: 1pt; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 2pt; text-align: left; padding-left: 20pt">Right of use asset, net</td> <td style="border-bottom: black 2pt double; text-align: left">$</td> <td style="border-bottom: black 2pt double; text-align: right">22,955</td> <td style="padding-bottom: 2pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Current obligations of finance leases</td> <td style="text-align: left">$</td> <td style="text-align: right">8,054</td> <td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="padding-bottom: 1pt; text-align: left">Finance leases, net of current obligations</td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">23,798</td> <td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 2pt; text-align: left; padding-left: 10pt">Total finance lease liabilities</td> <td style="border-bottom: black 2pt double; text-align: left">$</td> <td style="border-bottom: black 2pt double; text-align: right">31,852</td> <td style="padding-bottom: 2pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Weighted average remaining lease term (in years):</td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="text-align: left; padding-left: 10pt">Operating leases</td> <td style="text-align: left"> </td> <td style="text-align: right">11.2</td> <td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-left: 10pt">Finance leases</td> <td style="text-align: left"> </td> <td style="text-align: right">3.2</td> <td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Weighted average discount rate:</td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="text-align: left; padding-left: 10pt">Operating leases</td> <td style="text-align: left"> </td> <td style="text-align: right">5.8</td> <td style="text-align: left">%</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-left: 10pt">Finance leases</td> <td style="text-align: left"> </td> <td style="text-align: right">20.8</td> <td style="text-align: left">%</td></tr></table> Supplemental cash flow and other information related to leases was as follows:    <table cellspacing="0" cellpadding="0" style="width: 80%; border-collapse: collapse; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td> </td> <td colspan="2" style="text-align: center">Nine months ended</td> <td> </td></tr> <tr style="vertical-align: bottom"> <td> </td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center">September 30, 2019</td> <td style="padding-bottom: 1pt"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: left">Cash paid for amounts included in the measurement of lease liabilities:</td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 84%; text-align: left; padding-left: 10pt">Operating cash flows from operating leases</td> <td style="width: 1%; text-align: left">$</td> <td style="width: 14%; text-align: right">319,586</td> <td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="text-align: left; padding-left: 10pt">Operating cash flows from finance leases</td> <td style="text-align: left">$</td> <td style="text-align: right">5,723</td> <td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-left: 10pt">Financing cash flows from finance leases</td> <td style="text-align: left">$</td> <td style="text-align: right">4,504</td> <td style="text-align: left"> </td></tr></table>

Maturities of lease liabilities were as follows:   <table cellspacing="0" cellpadding="0" style="width: 80%; border-collapse: collapse; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td style="border-bottom: black 1pt solid; text-align: left">Years Ending December 31st,</td> <td> </td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center">Operating Leases</td> <td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center">Finance Leases</td> <td style="padding-bottom: 1pt"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 67%; text-align: left">2019 (remaining three months)</td> <td style="width: 1%"> </td> <td style="width: 1%; text-align: left">$</td> <td style="width: 14%; text-align: right">110,773</td> <td style="width: 1%; text-align: left"> </td> <td style="width: 1%; text-align: left">$</td> <td style="width: 14%; text-align: right">3,705</td> <td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="text-align: left">2020</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">448,992</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">13,597</td> <td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">2021</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">461,657</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">12,355</td> <td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="text-align: left">2022</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">465,758</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">10,050</td> <td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">2023</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">461,310</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">4,514</td> <td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="padding-bottom: 1pt; text-align: left">Thereafter</td> <td> </td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">3,308,155</td> <td style="padding-bottom: 1pt; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">—</td> <td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-left: 10pt">Total lease payments</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">5,256,645</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">44,221</td> <td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="padding-bottom: 1pt; text-align: left">Less amount representing interest</td> <td> </td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">(1,435,702</td> <td style="padding-bottom: 1pt; text-align: left">)</td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">(12,369</td> <td style="padding-bottom: 1pt; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-left: 10pt">Total lease obligations</td> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right">3,820,943</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">31,852</td> <td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="padding-bottom: 1pt; text-align: left">Less current portion</td> <td> </td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">(232,903</td> <td style="padding-bottom: 1pt; text-align: left">)</td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">(8,054</td> <td style="padding-bottom: 1pt; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 2pt; text-align: left; padding-left: 10pt">Long-term lease obligations</td> <td> </td> <td style="border-bottom: black 2pt double; text-align: left">$</td> <td style="border-bottom: black 2pt double; text-align: right">3,588,040</td> <td style="padding-bottom: 2pt; text-align: left"> </td> <td style="border-bottom: black 2pt double; text-align: left">$</td> <td style="border-bottom: black 2pt double; text-align: right">23,798</td> <td style="padding-bottom: 2pt; text-align: left"> </td></tr> </table>    As previously reported in the 2018 Form 10-K under ASC Topic 840, future minimum lease payments under the Company’s operating lease agreements that had initial or remaining non-cancelable lease terms in excess of one year as of December 31, 2018 were as follows:   <table cellspacing="0" cellpadding="0" align="center" style="width: 50%; border-collapse: collapse; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td style="border-bottom: black 1pt solid; text-align: center">Years ended December 31st:</td> <td style="text-align: center"> </td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center">Total</td> <td style="text-align: center"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 74%; text-align: left">2019</td> <td style="width: 1%; text-align: left"> </td> <td style="width: 1%; text-align: left">$</td> <td style="width: 23%; text-align: right">420,370</td> <td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="text-align: left">2020</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">421,590</td> <td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">2021</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">432,079</td> <td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="text-align: left">2022</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">447,264</td> <td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">2023</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">460,682</td> <td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="text-align: left">Thereafter</td> <td style="padding-bottom: 1pt; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">3,327,705</td> <td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Total lease commitments</td> <td style="padding-bottom: 2pt; text-align: left"> </td> <td style="border-bottom: black 2pt double; text-align: left">$</td> <td style="border-bottom: black 2pt double; text-align: right">5,509,690</td> <td style="padding-bottom: 2pt; text-align: left"> </td></tr></table>

The table below reflects the activity of the contingently redeemable non-controlling interest:    <table cellspacing="0" cellpadding="0" style="width: 80%; border-collapse: collapse; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 84%; padding-left: 10pt; text-indent: -10pt">Balance, December 31, 2018</td> <td style="width: 1%; text-align: left">$</td> <td style="width: 14%; text-align: right">1,449,007</td> <td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="padding-bottom: 1pt; padding-left: 20pt; text-indent: -20pt">Net loss attributable to non-controlling interest in SureHarvest for the year to date period ended September 30, 2019</td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">(181,829</td> <td style="padding-bottom: 1pt; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 2pt; padding-left: 10pt; text-indent: -10pt">Balance, September 30, 2019</td> <td style="border-bottom: black 2pt double; text-align: left">$</td> <td style="border-bottom: black 2pt double; text-align: right">1,267,178</td> <td style="padding-bottom: 2pt; text-align: left"> </td></tr></table>

The following table shows information for reportable operating segments:   <table cellspacing="0" cellpadding="0" style="width: 100%; border-collapse: collapse; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td style="padding-left: 10pt; text-indent: -10pt"> </td> <td colspan="11" style="border-bottom: black 1pt solid; text-align: center">Three months ended September 30, 2019</td> <td style="padding-bottom: 1pt"> </td> <td colspan="11" style="border-bottom: black 1pt solid; text-align: center">Three months ended September 30, 2018</td> <td style="padding-bottom: 1pt"> </td></tr> <tr style="vertical-align: bottom"> <td style="padding-bottom: 1pt; text-align: center; padding-left: 10pt; text-indent: -10pt"> </td> <td style="border-bottom: black 1pt solid; text-align: center"> </td> <td style="border-bottom: black 1pt solid; text-align: center"> Verification and Certification Segment</td> <td style="padding-bottom: 1pt; text-align: center"> </td> <td style="border-bottom: black 1pt solid; text-align: center"> </td> <td style="border-bottom: black 1pt solid; text-align: center"> Software Sales and Related Consulting Segment </td> <td style="padding-bottom: 1pt; text-align: center"> </td> <td style="border-bottom: black 1pt solid; text-align: center"> </td> <td style="border-bottom: black 1pt solid; text-align: center"> Eliminations and Other </td> <td style="padding-bottom: 1pt; text-align: center"> </td> <td style="border-bottom: black 1pt solid; text-align: center"> </td> <td style="border-bottom: black 1pt solid; text-align: center"> Consolidated Totals </td> <td style="padding-bottom: 1pt; text-align: center"> </td> <td style="border-bottom: black 1pt solid; text-align: center"> </td> <td style="border-bottom: black 1pt solid; text-align: center"> Verification and Certification Segment </td> <td style="padding-bottom: 1pt; text-align: center"> </td> <td style="border-bottom: black 1pt solid; text-align: center"> </td> <td style="border-bottom: black 1pt solid; text-align: center"> Software Sales and Related Consulting Segment </td> <td style="padding-bottom: 1pt; text-align: center"> </td> <td style="border-bottom: black 1pt solid; text-align: center"> </td> <td style="border-bottom: black 1pt solid; text-align: center"> Eliminations and Other </td> <td style="padding-bottom: 1pt; text-align: center"> </td> <td style="border-bottom: black 1pt solid; text-align: center"> </td> <td style="border-bottom: black 1pt solid; text-align: center"> Consolidated Totals </td> <td style="padding-bottom: 1pt; text-align: center"> </td></tr> <tr style="vertical-align: bottom"> <td style="padding-left: 10pt; text-indent: -10pt">Assets:</td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 20%; text-align: left; padding-left: 20pt; text-indent: -10pt">Intangible and other assets, net</td> <td style="width: 1%; text-align: left">$</td> <td style="width: 8%; text-align: right">1,343,955</td> <td style="width: 1%; text-align: left"> </td> <td style="width: 1%; text-align: left">$</td> <td style="width: 8%; text-align: right">2,053,842</td> <td style="width: 1%; text-align: left"> </td> <td style="width: 1%; text-align: left">$</td> <td style="width: 8%; text-align: right">—</td> <td style="width: 1%; text-align: left"> </td> <td style="width: 1%; text-align: left">$</td> <td style="width: 8%; text-align: right">3,397,797</td> <td style="width: 1%; text-align: left"> </td> <td style="width: 1%; text-align: left">$</td> <td style="width: 8%; text-align: right">2,883,887</td> <td style="width: 1%; text-align: left"> </td> <td style="width: 1%; text-align: left">$</td> <td style="width: 8%; text-align: right">1,983,577</td> <td style="width: 1%; text-align: left"> </td> <td style="width: 1%; text-align: left">$</td> <td style="width: 8%; text-align: right">—</td> <td style="width: 1%; text-align: left"> </td> <td style="width: 1%; text-align: left">$</td> <td style="width: 8%; text-align: right">4,867,464</td> <td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="padding-left: 20pt; text-indent: -10pt">Goodwill</td> <td style="text-align: left"> </td> <td style="text-align: right">1,133,122</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">2,010,612</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">—</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">3,143,734</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">1,840,956</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">1,372,488</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">—</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">3,213,444</td> <td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-left: 20pt; text-indent: -10pt">Total assets</td> <td style="text-align: left"> </td> <td style="text-align: right">14,214,110</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">5,323,783</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">—</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">19,537,893</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">14,274,121</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">1,229,225</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">—</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">15,503,346</td> <td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="padding-left: 10pt; text-indent: -10pt"> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 10pt; text-indent: -10pt">Revenues:</td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="text-align: left; padding-left: 20pt; text-indent: -10pt">Verification and certification service revenue</td> <td style="text-align: left">$</td> <td style="text-align: right">4,759,383</td> <td style="text-align: left"> </td> <td style="text-align: left">$</td> <td style="text-align: right">—</td> <td style="text-align: left"> </td> <td style="text-align: left">$</td> <td style="text-align: right">—</td> <td style="text-align: left"> </td> <td style="text-align: left">$</td> <td style="text-align: right">4,759,383</td> <td style="text-align: left"> </td> <td style="text-align: left">$</td> <td style="text-align: right">3,906,996</td> <td style="text-align: left"> </td> <td style="text-align: left">$</td> <td style="text-align: right">—</td> <td style="text-align: left"> </td> <td style="text-align: left">$</td> <td style="text-align: right">—</td> <td style="text-align: left"> </td> <td style="text-align: left">$</td> <td style="text-align: right">3,906,996</td> <td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-left: 20pt; text-indent: -10pt">Product sales</td> <td style="text-align: left"> </td> <td style="text-align: right">1,086,272</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">—</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">—</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">1,086,272</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">783,303</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">—</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">—</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">783,303</td> <td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="text-align: left; padding-left: 20pt; text-indent: -10pt">Software license, maintenance and support services revenue</td> <td style="text-align: left"> </td> <td style="text-align: right">—</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">286,816</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">(60,000</td> <td style="text-align: left">)</td> <td style="text-align: left"> </td> <td style="text-align: right">226,816</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">—</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">208,541</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">—</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">208,541</td> <td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 1pt; text-align: left; padding-left: 20pt; text-indent: -10pt">Software-related consulting service revenue</td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">—</td> <td style="padding-bottom: 1pt; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">196,723</td> <td style="padding-bottom: 1pt; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">(36,712</td> <td style="padding-bottom: 1pt; text-align: left">)</td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">160,011</td> <td style="padding-bottom: 1pt; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">—</td> <td style="padding-bottom: 1pt; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">226,538</td> <td style="padding-bottom: 1pt; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">—</td> <td style="padding-bottom: 1pt; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">226,538</td> <td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="padding-bottom: 1pt; text-align: left; padding-left: 30pt; text-indent: -10pt">Total revenues</td> <td style="border-bottom: black 1pt solid; text-align: left">$</td> <td style="border-bottom: black 1pt solid; text-align: right">5,845,655</td> <td style="padding-bottom: 1pt; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: left">$</td> <td style="border-bottom: black 1pt solid; text-align: right">483,539</td> <td style="padding-bottom: 1pt; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: left">$</td> <td style="border-bottom: black 1pt solid; text-align: right">(96,712</td> <td style="padding-bottom: 1pt; text-align: left">)</td> <td style="border-bottom: black 1pt solid; text-align: left">$</td> <td style="border-bottom: black 1pt solid; text-align: right">6,232,482</td> <td style="padding-bottom: 1pt; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: left">$</td> <td style="border-bottom: black 1pt solid; text-align: right">4,690,299</td> <td style="padding-bottom: 1pt; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: left">$</td> <td style="border-bottom: black 1pt solid; text-align: right">435,079</td> <td style="padding-bottom: 1pt; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: left">$</td> <td style="border-bottom: black 1pt solid; text-align: right">—</td> <td style="padding-bottom: 1pt; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: left">$</td> <td style="border-bottom: black 1pt solid; text-align: right">5,125,378</td> <td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 10pt; text-indent: -10pt">Costs of revenues:</td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="text-align: left; padding-left: 20pt; text-indent: -10pt">Costs of verification and certification services</td> <td style="text-align: left"> </td> <td style="text-align: right">2,733,350</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">—</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">(60,150</td> <td style="text-align: left">)</td> <td style="text-align: left"> </td> <td style="text-align: right">2,673,200</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">2,098,462</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">—</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">—</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">2,098,462</td> <td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 20pt; text-indent: -10pt">Costs of products</td> <td style="text-align: left"> </td> <td style="text-align: right">696,579</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">—</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">—</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">696,579</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">489,149</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">—</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">—</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">489,149</td> <td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="text-align: left; padding-left: 20pt; text-indent: -10pt">Costs of software license, maintenance and support services</td> <td style="text-align: left"> </td> <td style="text-align: right">—</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">153,452</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">—</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">153,452</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">—</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">183,942</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">—</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">183,942</td> <td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 1pt; text-align: left; padding-left: 20pt; text-indent: -10pt">Costs of software-related consulting services</td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">—</td> <td style="padding-bottom: 1pt; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">122,224</td> <td style="padding-bottom: 1pt; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">—</td> <td style="padding-bottom: 1pt; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">122,224</td> <td style="padding-bottom: 1pt; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">—</td> <td style="padding-bottom: 1pt; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">117,303</td> <td style="padding-bottom: 1pt; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">—</td> <td style="padding-bottom: 1pt; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">117,303</td> <td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="padding-bottom: 1pt; text-align: left; padding-left: 30pt; text-indent: -10pt">Total costs of revenues</td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">3,429,929</td> <td style="padding-bottom: 1pt; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">275,676</td> <td style="padding-bottom: 1pt; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">(60,150</td> <td style="padding-bottom: 1pt; text-align: left">)</td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">3,645,455</td> <td style="padding-bottom: 1pt; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">2,587,611</td> <td style="padding-bottom: 1pt; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">301,245</td> <td style="padding-bottom: 1pt; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">—</td> <td style="padding-bottom: 1pt; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">2,888,856</td> <td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-left: 20pt; text-indent: -10pt">Gross profit</td> <td style="text-align: left"> </td> <td style="text-align: right">2,415,726</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">207,863</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">(36,562</td> <td style="text-align: left">)</td> <td style="text-align: left"> </td> <td style="text-align: right">2,587,027</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">2,102,688</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">133,834</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">—</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">2,236,522</td> <td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="text-align: left; padding-left: 10pt; text-indent: -10pt">Depreciation & amortization</td> <td style="text-align: left"> </td> <td style="text-align: right">78,620</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">178,568</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">—</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">257,188</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">102,944</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">138,230</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">—</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">241,174</td> <td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 1pt; text-align: left; padding-left: 10pt; text-indent: -10pt">Other operating expenses</td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">1,519,708</td> <td style="padding-bottom: 1pt; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">232,698</td> <td style="padding-bottom: 1pt; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">(36,562</td> <td style="padding-bottom: 1pt; text-align: left">)</td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">1,715,844</td> <td style="padding-bottom: 1pt; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">1,442,568</td> <td style="padding-bottom: 1pt; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">135,277</td> <td style="padding-bottom: 1pt; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">—</td> <td style="padding-bottom: 1pt; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">1,577,845</td> <td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="padding-bottom: 1pt; text-align: left; padding-left: 20pt; text-indent: -10pt"> Segment operating (loss)/income</td> <td style="border-bottom: black 1pt solid; text-align: left">$</td> <td style="border-bottom: black 1pt solid; text-align: right">817,398</td> <td style="padding-bottom: 1pt; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: left">$</td> <td style="border-bottom: black 1pt solid; text-align: right">(203,403</td> <td style="padding-bottom: 1pt; text-align: left">)</td> <td style="border-bottom: black 1pt solid; text-align: left">$</td> <td style="border-bottom: black 1pt solid; text-align: right">—</td> <td style="padding-bottom: 1pt; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: left">$</td> <td style="border-bottom: black 1pt solid; text-align: right">613,995</td> <td style="padding-bottom: 1pt; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: left">$</td> <td style="border-bottom: black 1pt solid; text-align: right">557,176</td> <td style="padding-bottom: 1pt; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: left">$</td> <td style="border-bottom: black 1pt solid; text-align: right">(139,673</td> <td style="padding-bottom: 1pt; text-align: left">)</td> <td style="border-bottom: black 1pt solid; text-align: left">$</td> <td style="border-bottom: black 1pt solid; text-align: right">—</td> <td style="padding-bottom: 1pt; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: left">$</td> <td style="border-bottom: black 1pt solid; text-align: right">417,503</td> <td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-left: 10pt; text-indent: -10pt">Other items to reconcile segment operating income (loss) to net income attributable to WFCF:</td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="text-align: left; padding-left: 20pt; text-indent: -10pt">Other expense (income)</td> <td style="text-align: left"> </td> <td style="text-align: right">(29,563</td> <td style="text-align: left">)</td> <td style="text-align: left"> </td> <td style="text-align: right">(6</td> <td style="text-align: left">)</td> <td style="text-align: left"> </td> <td style="text-align: right">—</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">(29,569</td> <td style="text-align: left">)</td> <td style="text-align: left"> </td> <td style="text-align: right">(102,155</td> <td style="text-align: left">)</td> <td style="text-align: left"> </td> <td style="text-align: right">—</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">—</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">(102,155</td> <td style="text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-left: 20pt; text-indent: -10pt">Income tax (benefit)/expense</td> <td style="text-align: left"> </td> <td style="text-align: right">—</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">—</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">184,001</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">184,001</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">—</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">—</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">169,000</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">169,000</td> <td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="padding-bottom: 1pt; text-align: left; padding-left: 20pt; text-indent: -10pt">Net loss attributable to non-controlling interest</td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">—</td> <td style="padding-bottom: 1pt; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">81,359</td> <td style="padding-bottom: 1pt; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">—</td> <td style="padding-bottom: 1pt; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">81,359</td> <td style="padding-bottom: 1pt; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">—</td> <td style="padding-bottom: 1pt; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">26,691</td> <td style="padding-bottom: 1pt; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">—</td> <td style="padding-bottom: 1pt; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">26,691</td> <td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 2pt; text-align: left; padding-left: 10pt; text-indent: -10pt">Net (loss)/income attributable to WFCF</td> <td style="border-bottom: black 2pt double; text-align: left">$</td> <td style="border-bottom: black 2pt double; text-align: right">846,961</td> <td style="padding-bottom: 2pt; text-align: left"> </td> <td style="border-bottom: black 2pt double; text-align: left">$</td> <td style="border-bottom: black 2pt double; text-align: right">(122,038</td> <td style="padding-bottom: 2pt; text-align: left">)</td> <td style="border-bottom: black 2pt double; text-align: left">$</td> <td style="border-bottom: black 2pt double; text-align: right">(184,001</td> <td style="padding-bottom: 2pt; text-align: left">)</td> <td style="border-bottom: black 2pt double; text-align: left">$</td> <td style="border-bottom: black 2pt double; text-align: right">540,922</td> <td style="padding-bottom: 2pt; text-align: left"> </td> <td style="border-bottom: black 2pt double; text-align: left">$</td> <td style="border-bottom: black 2pt double; text-align: right">659,331</td> <td style="padding-bottom: 2pt; text-align: left"> </td> <td style="border-bottom: black 2pt double; text-align: left">$</td> <td style="border-bottom: black 2pt double; text-align: right">(112,982</td> <td style="padding-bottom: 2pt; text-align: left">)</td> <td style="border-bottom: black 2pt double; text-align: left">$</td> <td style="border-bottom: black 2pt double; text-align: right">(169,000</td> <td style="padding-bottom: 2pt; text-align: left">)</td> <td style="border-bottom: black 2pt double; text-align: left">$</td> <td style="border-bottom: black 2pt double; text-align: right">377,349</td> <td style="padding-bottom: 2pt; text-align: left"> </td></tr> </table>     <table cellspacing="0" cellpadding="0" style="width: 100%; border-collapse: collapse; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td style="padding-left: 10pt; text-indent: -10pt"> </td> <td colspan="11" style="border-bottom: black 1pt solid; text-align: center">Nine months ended September 30, 2019</td> <td style="padding-bottom: 1pt"> </td> <td colspan="11" style="border-bottom: black 1pt solid; text-align: center">Nine months ended September 30, 2018</td> <td style="padding-bottom: 1pt"> </td></tr> <tr style="vertical-align: bottom"> <td style="padding-bottom: 1pt; text-align: center; padding-left: 10pt; text-indent: -10pt"> </td> <td style="border-bottom: black 1pt solid; text-align: center"> </td> <td style="border-bottom: black 1pt solid; text-align: center">Verification and Certification Segment</td> <td style="padding-bottom: 1pt; text-align: center"> </td> <td style="border-bottom: black 1pt solid; text-align: center"> </td> <td style="border-bottom: black 1pt solid; text-align: center">Software Sales and Related Consulting Segment</td> <td style="padding-bottom: 1pt; text-align: center"> </td> <td style="border-bottom: black 1pt solid; text-align: center"> </td> <td style="border-bottom: black 1pt solid; text-align: center">Eliminations and Other</td> <td style="padding-bottom: 1pt; text-align: center"> </td> <td style="border-bottom: black 1pt solid; text-align: center"> </td> <td style="border-bottom: black 1pt solid; text-align: center">Consolidated Totals</td> <td style="padding-bottom: 1pt; text-align: center"> </td> <td style="border-bottom: black 1pt solid; text-align: center"> </td> <td style="border-bottom: black 1pt solid; text-align: center">Verification and Certification Segment</td> <td style="padding-bottom: 1pt; text-align: center"> </td> <td style="border-bottom: black 1pt solid; text-align: center"> </td> <td style="border-bottom: black 1pt solid; text-align: center">Software Sales and Related Consulting Segment</td> <td style="padding-bottom: 1pt; text-align: center"> </td> <td style="border-bottom: black 1pt solid; text-align: center"> </td> <td style="border-bottom: black 1pt solid; text-align: center">Eliminations and Other</td> <td style="padding-bottom: 1pt; text-align: center"> </td> <td style="border-bottom: black 1pt solid; text-align: center"> </td> <td style="border-bottom: black 1pt solid; text-align: center">Consolidated Totals</td> <td style="padding-bottom: 1pt; text-align: center"> </td></tr> <tr style="vertical-align: bottom"> <td style="padding-left: 10pt; text-indent: -10pt">Assets:</td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 20%; text-align: left; padding-left: 20pt; text-indent: -10pt">Intangible and other assets, net</td> <td style="width: 1%; text-align: left">$</td> <td style="width: 8%; text-align: right">1,343,955</td> <td style="width: 1%; text-align: left"> </td> <td style="width: 1%; text-align: left">$</td> <td style="width: 8%; text-align: right">2,053,842</td> <td style="width: 1%; text-align: left"> </td> <td style="width: 1%; text-align: left">$</td> <td style="width: 8%; text-align: right">—</td> <td style="width: 1%; text-align: left"> </td> <td style="width: 1%; text-align: left">$</td> <td style="width: 8%; text-align: right">3,397,797</td> <td style="width: 1%; text-align: left"> </td> <td style="width: 1%; text-align: left">$</td> <td style="width: 8%; text-align: right">2,883,887</td> <td style="width: 1%; text-align: left"> </td> <td style="width: 1%; text-align: left">$</td> <td style="width: 8%; text-align: right">1,983,577</td> <td style="width: 1%; text-align: left"> </td> <td style="width: 1%; text-align: left">$</td> <td style="width: 8%; text-align: right">—</td> <td style="width: 1%; text-align: left"> </td> <td style="width: 1%; text-align: left">$</td> <td style="width: 8%; text-align: right">4,867,464</td> <td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="padding-left: 20pt; text-indent: -10pt">Goodwill</td> <td style="text-align: left"> </td> <td style="text-align: right">1,133,122</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">2,010,612</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">—</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">3,143,734</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">1,840,956</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">1,372,488</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">—</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">3,213,444</td> <td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-left: 20pt; text-indent: -10pt">Total assets</td> <td style="text-align: left"> </td> <td style="text-align: right">14,214,110</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">5,323,783</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">—</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">19,537,893</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">14,274,121</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">1,229,225</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">—</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">15,503,346</td> <td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="padding-left: 10pt; text-indent: -10pt"> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 10pt; text-indent: -10pt">Revenues:</td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="text-align: left; padding-left: 20pt; text-indent: -10pt">Verification and certification service revenue</td> <td style="text-align: left">$</td> <td style="text-align: right">11,314,318</td> <td style="text-align: left"> </td> <td style="text-align: left">$</td> <td style="text-align: right">—</td> <td style="text-align: left"> </td> <td style="text-align: left">$</td> <td style="text-align: right">—</td> <td style="text-align: left"> </td> <td style="text-align: left">$</td> <td style="text-align: right">11,314,318</td> <td style="text-align: left"> </td> <td style="text-align: left">$</td> <td style="text-align: right">10,210,947</td> <td style="text-align: left"> </td> <td style="text-align: left">$</td> <td style="text-align: right">—</td> <td style="text-align: left"> </td> <td style="text-align: left">$</td> <td style="text-align: right">—</td> <td style="text-align: left"> </td> <td style="text-align: left">$</td> <td style="text-align: right">10,210,947</td> <td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-left: 20pt; text-indent: -10pt">Product sales</td> <td style="text-align: left"> </td> <td style="text-align: right">2,362,663</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">—</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">—</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">2,362,663</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">1,633,509</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">—</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">—</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">1,633,509</td> <td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="text-align: left; padding-left: 20pt; text-indent: -10pt">Software license, maintenance and support services revenue</td> <td style="text-align: left"> </td> <td style="text-align: right">—</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">969,056</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">(147,277</td> <td style="text-align: left">)</td> <td style="text-align: left"> </td> <td style="text-align: right">821,779</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">—</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">759,301</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">—</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">759,301</td> <td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 1pt; text-align: left; padding-left: 20pt; text-indent: -10pt">Software-related consulting service revenue</td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">—</td> <td style="padding-bottom: 1pt; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">660,755</td> <td style="padding-bottom: 1pt; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">(84,234</td> <td style="padding-bottom: 1pt; text-align: left">)</td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">576,521</td> <td style="padding-bottom: 1pt; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">—</td> <td style="padding-bottom: 1pt; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">580,731</td> <td style="padding-bottom: 1pt; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">—</td> <td style="padding-bottom: 1pt; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">580,731</td> <td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="padding-bottom: 1pt; text-align: left; padding-left: 30pt; text-indent: -10pt">Total revenues</td> <td style="border-bottom: black 1pt solid; text-align: left">$</td> <td style="border-bottom: black 1pt solid; text-align: right">13,676,981</td> <td style="padding-bottom: 1pt; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: left">$</td> <td style="border-bottom: black 1pt solid; text-align: right">1,629,811</td> <td style="padding-bottom: 1pt; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: left">$</td> <td style="border-bottom: black 1pt solid; text-align: right">(231,511</td> <td style="padding-bottom: 1pt; text-align: left">)</td> <td style="border-bottom: black 1pt solid; text-align: left">$</td> <td style="border-bottom: black 1pt solid; text-align: right">15,075,281</td> <td style="padding-bottom: 1pt; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: left">$</td> <td style="border-bottom: black 1pt solid; text-align: right">11,844,456</td> <td style="padding-bottom: 1pt; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: left">$</td> <td style="border-bottom: black 1pt solid; text-align: right">1,340,032</td> <td style="padding-bottom: 1pt; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: left">$</td> <td style="border-bottom: black 1pt solid; text-align: right">—</td> <td style="padding-bottom: 1pt; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: left">$</td> <td style="border-bottom: black 1pt solid; text-align: right">13,184,488</td> <td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 10pt; text-indent: -10pt">Costs of revenues:</td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="text-align: left; padding-left: 20pt; text-indent: -10pt">Costs of verification and certification services</td> <td style="text-align: left"> </td> <td style="text-align: right">6,455,687</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">—</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">(123,123</td> <td style="text-align: left">)</td> <td style="text-align: left"> </td> <td style="text-align: right">6,332,564</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">5,399,626</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">—</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">—</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">5,399,626</td> <td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 20pt; text-indent: -10pt">Costs of products</td> <td style="text-align: left"> </td> <td style="text-align: right">1,537,837</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">—</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">—</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">1,537,837</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">1,035,094</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">—</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">—</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">1,035,094</td> <td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="text-align: left; padding-left: 20pt; text-indent: -10pt">Costs of software license, maintenance and support services</td> <td style="text-align: left"> </td> <td style="text-align: right">—</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">469,065</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">—</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">469,065</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">—</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">489,887</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">—</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">489,887</td> <td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 1pt; text-align: left; padding-left: 20pt; text-indent: -10pt">Costs of software-related consulting services</td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">—</td> <td style="padding-bottom: 1pt; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">394,660</td> <td style="padding-bottom: 1pt; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">—</td> <td style="padding-bottom: 1pt; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">394,660</td> <td style="padding-bottom: 1pt; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">—</td> <td style="padding-bottom: 1pt; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">280,310</td> <td style="padding-bottom: 1pt; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">—</td> <td style="padding-bottom: 1pt; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">280,310</td> <td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="padding-bottom: 1pt; text-align: left; padding-left: 30pt; text-indent: -10pt">Total costs of revenues</td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">7,993,524</td> <td style="padding-bottom: 1pt; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">863,725</td> <td style="padding-bottom: 1pt; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">(123,123</td> <td style="padding-bottom: 1pt; text-align: left">)</td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">8,734,126</td> <td style="padding-bottom: 1pt; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">6,434,720</td> <td style="padding-bottom: 1pt; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">770,197</td> <td style="padding-bottom: 1pt; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">—</td> <td style="padding-bottom: 1pt; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">7,204,917</td> <td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-left: 20pt; text-indent: -10pt">Gross profit</td> <td style="text-align: left"> </td> <td style="text-align: right">5,683,457</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">766,086</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">(108,388</td> <td style="text-align: left">)</td> <td style="text-align: left"> </td> <td style="text-align: right">6,341,155</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">5,409,736</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">569,835</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">—</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">5,979,571</td> <td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="text-align: left; padding-left: 10pt; text-indent: -10pt">Depreciation & amortization</td> <td style="text-align: left"> </td> <td style="text-align: right">263,209</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">539,207</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">—</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">802,416</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">328,370</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">414,410</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">—</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">742,780</td> <td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 1pt; text-align: left; padding-left: 10pt; text-indent: -10pt">Other operating expenses</td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">4,229,813</td> <td style="padding-bottom: 1pt; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">700,718</td> <td style="padding-bottom: 1pt; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">(108,388</td> <td style="padding-bottom: 1pt; text-align: left">)</td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">4,822,143</td> <td style="padding-bottom: 1pt; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">4,127,982</td> <td style="padding-bottom: 1pt; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">423,199</td> <td style="padding-bottom: 1pt; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">—</td> <td style="padding-bottom: 1pt; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">4,551,181</td> <td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="padding-bottom: 1pt; text-align: left; padding-left: 20pt; text-indent: -10pt">Segment operating (loss)/income</td> <td style="border-bottom: black 1pt solid; text-align: left">$</td> <td style="border-bottom: black 1pt solid; text-align: right">1,190,435</td> <td style="padding-bottom: 1pt; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: left">$</td> <td style="border-bottom: black 1pt solid; text-align: right">(473,839</td> <td style="padding-bottom: 1pt; text-align: left">)</td> <td style="border-bottom: black 1pt solid; text-align: left">$</td> <td style="border-bottom: black 1pt solid; text-align: right">—</td> <td style="padding-bottom: 1pt; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: left">$</td> <td style="border-bottom: black 1pt solid; text-align: right">716,596</td> <td style="padding-bottom: 1pt; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: left">$</td> <td style="border-bottom: black 1pt solid; text-align: right">953,384</td> <td style="padding-bottom: 1pt; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: left">$</td> <td style="border-bottom: black 1pt solid; text-align: right">(267,774</td> <td style="padding-bottom: 1pt; text-align: left">)</td> <td style="border-bottom: black 1pt solid; text-align: left">$</td> <td style="border-bottom: black 1pt solid; text-align: right">—</td> <td style="padding-bottom: 1pt; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: left">$</td> <td style="border-bottom: black 1pt solid; text-align: right">685,610</td> <td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-left: 10pt; text-indent: -10pt">Other items to reconcile segment operating income (loss) to net income attributable to WFCF:</td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="text-align: left; padding-left: 20pt; text-indent: -10pt">Other expense (income)</td> <td style="text-align: left"> </td> <td style="text-align: right">(89,538</td> <td style="text-align: left">)</td> <td style="text-align: left"> </td> <td style="text-align: right">(1,009</td> <td style="text-align: left">)</td> <td style="text-align: left"> </td> <td style="text-align: right">—</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">(90,547</td> <td style="text-align: left">)</td> <td style="text-align: left"> </td> <td style="text-align: right">(108,661</td> <td style="text-align: left">)</td> <td style="text-align: left"> </td> <td style="text-align: right">860</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">—</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">(107,801</td> <td style="text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-left: 20pt; text-indent: -10pt">Income tax (benefit)/expense</td> <td style="text-align: left"> </td> <td style="text-align: right">—</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">—</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">230,090</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">230,090</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">—</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">—</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">257,000</td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right">257,000</td> <td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="padding-bottom: 1pt; text-align: left; padding-left: 20pt; text-indent: -10pt">Net loss attributable to non-controlling interest</td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">—</td> <td style="padding-bottom: 1pt; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">181,829</td> <td style="padding-bottom: 1pt; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">—</td> <td style="padding-bottom: 1pt; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">181,829</td> <td style="padding-bottom: 1pt; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">—</td> <td style="padding-bottom: 1pt; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">53,261</td> <td style="padding-bottom: 1pt; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">—</td> <td style="padding-bottom: 1pt; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: left"> </td> <td style="border-bottom: black 1pt solid; text-align: right">53,261</td> <td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 2pt; text-align: left; padding-left: 10pt; text-indent: -10pt">Net (loss)/income attributable to WFCF</td> <td style="border-bottom: black 2pt double; text-align: left">$</td> <td style="border-bottom: black 2pt double; text-align: right">1,279,973</td> <td style="padding-bottom: 2pt; text-align: left"> </td> <td style="border-bottom: black 2pt double; text-align: left">$</td> <td style="border-bottom: black 2pt double; text-align: right">(291,001</td> <td style="padding-bottom: 2pt; text-align: left">)</td> <td style="border-bottom: black 2pt double; text-align: left">$</td> <td style="border-bottom: black 2pt double; text-align: right">(230,090</td> <td style="padding-bottom: 2pt; text-align: left">)</td> <td style="border-bottom: black 2pt double; text-align: left">$</td> <td style="border-bottom: black 2pt double; text-align: right">758,882</td> <td style="padding-bottom: 2pt; text-align: left"> </td> <td style="border-bottom: black 2pt double; text-align: left">$</td> <td style="border-bottom: black 2pt double; text-align: right">1,062,045</td> <td style="padding-bottom: 2pt; text-align: left"> </td> <td style="border-bottom: black 2pt double; text-align: left">$</td> <td style="border-bottom: black 2pt double; text-align: right">(215,373</td> <td style="padding-bottom: 2pt; text-align: left">)</td> <td style="border-bottom: black 2pt double; text-align: left">$</td> <td style="border-bottom: black 2pt double; text-align: right">(257,000</td> <td style="padding-bottom: 2pt; text-align: left">)</td> <td style="border-bottom: black 2pt double; text-align: left">$</td> <td style="border-bottom: black 2pt double; text-align: right">589,672</td> <td style="padding-bottom: 2pt; text-align: left"> </td></tr></table>

<table cellspacing="0" cellpadding="0" style="width: 100%; border-collapse: collapse; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td> </td> <td colspan="5" style="border-bottom: black 1pt solid; text-align: center">Nine months ended September 30,</td> <td style="padding-bottom: 1pt"> </td></tr> <tr style="vertical-align: bottom"> <td> </td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center">2019</td> <td style="padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center">2018</td> <td style="padding-bottom: 1pt"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: left">Cash paid during the year:</td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 74%; text-align: left; padding-left: 10pt">Interest expense</td> <td style="width: 1%; text-align: left">$</td> <td style="width: 11%; text-align: right">8,768</td> <td style="width: 1%; text-align: left"> </td> <td style="width: 1%; text-align: left">$</td> <td style="width: 11%; text-align: right">3,755</td> <td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="text-align: left; padding-left: 10pt">Income taxes</td> <td style="text-align: left">$</td> <td style="text-align: right">131,268</td> <td style="text-align: left"> </td> <td style="text-align: left">$</td> <td style="text-align: right">418,965</td> <td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="text-align: left">Non-cash investing and financing activites:</td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td> <td style="text-align: left"> </td> <td style="text-align: right"> </td> <td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-left: 10pt">Common stock issued in connection with acquisition of Sow Organic</td> <td style="text-align: left">$</td> <td style="text-align: right">—</td> <td style="text-align: left"> </td> <td style="text-align: left">$</td> <td style="text-align: right">433,131</td> <td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="text-align: left; padding-left: 10pt">Common stock issued in connection with investment in Progressive Beef</td> <td style="text-align: left">$</td> <td style="text-align: right">—</td> <td style="text-align: left"> </td> <td style="text-align: left">$</td> <td style="text-align: right">91,115</td> <td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-left: 10pt">Common Stock issued in connection with acquisition of JVF Consulting</td> <td style="text-align: left">$</td> <td style="text-align: right">—</td> <td style="text-align: left"> </td> <td style="text-align: left">$</td> <td style="text-align: right">315,291</td> <td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="text-align: left; padding-left: 10pt">Equipment acquired under a capital lease</td> <td style="text-align: left">$</td> <td style="text-align: right">—</td> <td style="text-align: left"> </td> <td style="text-align: left">$</td> <td style="text-align: right">19,809</td> <td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-left: 10pt">Lease incentive obligation</td> <td style="text-align: left">$</td> <td style="text-align: right">—</td> <td style="text-align: left"> </td> <td style="text-align: left">$</td> <td style="text-align: right">230,220</td> <td style="text-align: left"> </td></tr> </table>

Where Food Comes From, Inc. 0001360565 10-Q 2019-09-30 333-133624 CO false --12-31 Yes Yes Non-accelerated Filer true false false Q3 2019

3820943

3900000

3454660

366283

3308389

3440000

2975520

332869

156000

48000

84000

162000

207000

87000

37000

104000

883131

815290

991000

2660000

450000

500000

1122000

217654

158437

50340

850852

24900919 24791534 24756262 24879556

173558

180091

182437

182793

202750

283459

202750

283459

0.60

1.81

90000

30000

4944353

417307

85395

3350551

970100

121000

417307

85395

3350551

970100

121000

1577558

2031882

3366795

2912471

465000

3831795 3377471 20326 20326

P2Y6M

P8Y

P5Y

P15Y

P3Y

P4Y

P5Y

19978

36616

147798

814184

72982

113279

251843

169515

492601

1133594

42393

35655

54165

75080

1087

0.0744

2020-04-12

0.065

0.070

0.0150

1.003

P9Y9M18D

224905

36909

113378

70896

3722

6018

1061

4251

706

230923

37970

117629

71602

3722

434451

437126

25000

10000

105750

10000

7325

256919

180207

1.49

1.46

2.55

1.71

1.53

1.83

1.21

1.81 1.47 1.49

1.71

1.86 1.22

1.88

P6Y10M28D

P10Y P6Y2M23D

P4Y5M5D

P8Y9M11D

230039

148775

30000

5000

25000

2.38

2.55

2.35

0.40

434005 2187176

625337

1890222

2205200

2972600

1065100

727900

115674

353267

92200

276600

2025

6558

1763

5723

119462

365548

31852

P11Y2M12D

P3Y2M12D

0.058

0.208

319586

4504

110773

448992

461657

465758

461310

3308155

5256645

1435702

3705

13597

12355

10050

4514

44221

P1Y

P15Y

true

P5Y

154200

435300

181829

0.40 8000000

3755

8768

418965

131268

19809 315291 230220

12369

0.10

0.243

24733302

14463938

15503346

19537893

14214110

5323783

14274121

1229225

2236522

2587027

5979571

6341155

2415726

207863

-36562

2102688

133834

5683457

766086

-108388

5409736

569835

417503

613995

685610

716596

817398

-203403

557176

-139673

1190435

-473839

953384

-267774

4867464

3397797

1343955

2053842

2883887

1983577

1577845

1715844

4551181

4822143

1519708

232698

-36562

1442568

135277

4229813

700718

-108388

4127982

423199

102155

29569

107801

90547

29563

102155

89538

1009

108661

-860

4372574

6855500

1702880

3351970

2249122

6988774

14463938

19537893

519658

643564

793411

807143

350658

459563

536411

577053

1618411

2334619

-1926577

-14270

-153830

-382462

-461996

1937887

175923

248923

0.026

0.028

1.493

1.543

5723

43041 20086

22955

420370

421590

432079

447264

460682

3327705

5509690

EX-101.SCH 7 wfcf-20190930.xsd XBRL TAXONOMY EXTENSION SCHEMA DOCUMENT 00000001 - Document - Document and Entity Information link:presentationLink link:calculationLink link:definitionLink 00000002 - Statement - Consolidated Balance Sheets (Unaudited) link:presentationLink link:calculationLink link:definitionLink 00000003 - Statement - Consolidated Balance Sheets (Unaudited) (Parenthetical) link:presentationLink link:calculationLink link:definitionLink 00000004 - Statement - Consolidated Statements of Operations (Unaudited) link:presentationLink link:calculationLink link:definitionLink 00000005 - Statement - Consolidated Statements of Cash Flows (Unaudited) link:presentationLink link:calculationLink link:definitionLink 00000006 - Statement - Consolidated Statement of Equity (Unaudited) link:presentationLink link:calculationLink link:definitionLink 00000007 - Disclosure - The Company and Basis of Presentation link:presentationLink link:calculationLink link:definitionLink 00000008 - Disclosure - Business Acquisitions link:presentationLink link:calculationLink link:definitionLink 00000009 - Disclosure - Basic and Diluted Net Income per Share link:presentationLink link:calculationLink link:definitionLink 00000010 - Disclosure - Investment in Progressive Beef, LLC link:presentationLink link:calculationLink link:definitionLink 00000011 - Disclosure - Intangible and Other Assets link:presentationLink link:calculationLink link:definitionLink 00000012 - Disclosure - Accrued Expenses and Other Current Liabilities link:presentationLink link:calculationLink link:definitionLink 00000013 - Disclosure - Notes Payable link:presentationLink link:calculationLink link:definitionLink 00000014 - Disclosure - Stock-Based Compensation link:presentationLink link:calculationLink link:definitionLink 00000015 - Disclosure - Income Taxes link:presentationLink link:calculationLink link:definitionLink 00000016 - Disclosure - Revenue Recognition link:presentationLink link:calculationLink link:definitionLink 00000017 - Disclosure - Leases link:presentationLink link:calculationLink link:definitionLink 00000018 - Disclosure - Commitments and Contingencies link:presentationLink link:calculationLink link:definitionLink 00000019 - Disclosure - Segments link:presentationLink link:calculationLink link:definitionLink 00000020 - Disclosure - Supplemental Cash Flow Information link:presentationLink link:calculationLink link:definitionLink 00000021 - Disclosure - Business Acquisitions (Tables) link:presentationLink link:calculationLink link:definitionLink 00000022 - Disclosure - Basic and Diluted Net Income per Share (Tables) link:presentationLink link:calculationLink link:definitionLink 00000023 - Disclosure - Intangible and Other Assets (Tables) link:presentationLink link:calculationLink link:definitionLink 00000024 - Disclosure - Accrued Expenses and Other Current Liabilities (Tables) link:presentationLink link:calculationLink link:definitionLink 00000025 - Disclosure - Notes Payable (Tables) link:presentationLink link:calculationLink link:definitionLink 00000026 - Disclosure - Stock-Based Compensation (Tables) link:presentationLink link:calculationLink link:definitionLink 00000027 - Disclosure - Revenue Recognition (Tables) link:presentationLink link:calculationLink link:definitionLink 00000028 - Disclosure - Leases (Tables) link:presentationLink link:calculationLink link:definitionLink 00000029 - Disclosure - Commitments and Contingencies (Tables) link:presentationLink link:calculationLink link:definitionLink 00000030 - Disclosure - Segments (Tables) link:presentationLink link:calculationLink link:definitionLink 00000031 - Disclosure - Supplemental Cash Flow Information (Tables) link:presentationLink link:calculationLink link:definitionLink 00000032 - Disclosure - The Company and Basis of Presentation (Details Narrative) link:presentationLink link:calculationLink link:definitionLink 00000033 - Disclosure - Business Acquisitions (Details) link:presentationLink link:calculationLink link:definitionLink 00000034 - Disclosure - Business Acquisitions (Details Narrative) link:presentationLink link:calculationLink link:definitionLink 00000035 - Disclosure - Basic and Diluted Net Income per Share (Details) link:presentationLink link:calculationLink link:definitionLink 00000036 - Disclosure - Investment in Progressive Beef, LLC (Details Narrative) link:presentationLink link:calculationLink link:definitionLink 00000037 - Disclosure - Intangible and Other Assets (Details) link:presentationLink link:calculationLink link:definitionLink 00000038 - Disclosure - Accrued Expenses and Other Current Liabilities (Details) link:presentationLink link:calculationLink link:definitionLink 00000039 - Disclosure - Notes Payable (Details) link:presentationLink link:calculationLink link:definitionLink 00000040 - Disclosure - Notes Payable (Details Narrative) link:presentationLink link:calculationLink link:definitionLink 00000041 - Disclosure - Stock-Based Compensation (Details) link:presentationLink link:calculationLink link:definitionLink 00000042 - Disclosure - Stock-Based Compensation (Details 1) link:presentationLink link:calculationLink link:definitionLink 00000043 - Disclosure - Stock-Based Compensation (Details 2) link:presentationLink link:calculationLink link:definitionLink 00000044 - Disclosure - Stock-Based Compensation (Details 3) link:presentationLink link:calculationLink link:definitionLink 00000045 - Disclosure - Stock-Based Compensation (Details 4) link:presentationLink link:calculationLink link:definitionLink 00000046 - Disclosure - Stock-Based Compensation (Details Narrative) link:presentationLink link:calculationLink link:definitionLink 00000047 - Disclosure - Income Taxes (Details Narrative) link:presentationLink link:calculationLink link:definitionLink 00000048 - Disclosure - Revenue Recognition (Details) link:presentationLink link:calculationLink link:definitionLink 00000049 - Disclosure - Revenue Recognition (Details 1) link:presentationLink link:calculationLink link:definitionLink 00000050 - Disclosure - Revenue Recognition (Details Narrative) link:presentationLink link:calculationLink link:definitionLink 00000051 - Disclosure - Leases (Details) link:presentationLink link:calculationLink link:definitionLink 00000052 - Disclosure - Leases (Details 1) link:presentationLink link:calculationLink link:definitionLink 00000053 - Disclosure - Leases (Details 2) link:presentationLink link:calculationLink link:definitionLink 00000054 - Disclosure - Leases (Details 3) link:presentationLink link:calculationLink link:definitionLink 00000055 - Disclosure - Leases (Details 4) link:presentationLink link:calculationLink link:definitionLink 00000056 - Disclosure - Leases (Details Narrative) link:presentationLink link:calculationLink link:definitionLink 00000057 - Disclosure - Commitments and Contingencies (Details) link:presentationLink link:calculationLink link:definitionLink 00000058 - Disclosure - Commitments and Contingencies (Details Narrative) link:presentationLink link:calculationLink link:definitionLink 00000059 - Disclosure - Segments (Details) link:presentationLink link:calculationLink link:definitionLink 00000060 - Disclosure - Supplemental Cash Flow Information (Details) link:presentationLink link:calculationLink link:definitionLink EX-101.CAL 8 wfcf-20190930_cal.xml XBRL TAXONOMY EXTENSION CALCULATION LINKBASE DOCUMENT EX-101.DEF 9 wfcf-20190930_def.xml XBRL TAXONOMY EXTENSION DEFINITION LINKBASE DOCUMENT EX-101.LAB 10 wfcf-20190930_lab.xml XBRL TAXONOMY EXTENSION LABEL LINKBASE DOCUMENT Equity Components [Axis] Common Stock [Member] Additional Paid-in Capital [Member] Treasury Stock [Member] Retained Earnings [Member] Product and Service [Axis] Verification and Certification Service Revenue [Member] Product Sales [Member] Software License, Maintenance and Support Services Revenue [Member] Software-Related Consulting Service Revenue [Member] Prospective Adoption of New Accounting Pronouncements [Axis] Accounting Standards Update 2016-02 [Member] Business Acquisition [Axis] Sow Organic [Member] Finite-Lived Intangible Assets by Major Class [Axis] Software Acquired [Member] Tradenames and Trademarks [Member] Non-Compete Agreements [Member] Customer Relationships [Member] JVF Consulting LLC [Member] JVF Consulting [Member] Ownership [Axis] Progressive Beef, LLC [Member] Accreditations [Member] Patents [Member] Range [Axis] Minimum [Member] Maximum [Member] Debt Instrument [Axis] Note Payable - Vehicle [Member] Credit Facility [Axis] Revolving Line of Credit [Member] Award Type [Axis] Stock Options [Member] Restricted Stock Awards [Member] Vesting [Axis] 2019 (Remaining Three Months) [Member] 2020 [Member] 2021 [Member] 2022 [Member] Sure Harvest [Member] Consolidation Items [Axis] Operating Segments [Member] Segments [Axis] Verification and Certification Segment [Member] Software Sales and Related Consulting Segment [Member] Eliminations and Other [Member] Balance Sheet Location [Axis] Deposits and Deferred Revenue [Member] Related Party [Axis] Related Party [Member] Other [Member] Lease Arrangement, Type [Axis] Corporate Headquarters [Member] The Move, LLC [Member] Title of Individual [Axis] CEO and President [Member] Verification and Certification Service Revenue [Member] Software Related Consulting Service Revenue [Member] Cover [Abstract] Entity Registrant Name Entity Central Index Key Document Type Document Period End Date Entity File Number Entity Incorporation, State or Country Code Amendment Flag Current Fiscal Year End Date Entity Reporting Status Current Entity Interactive Data Current Entity Filer Category Entity Small Business Entity Emerging Growth Company Entity Shell Company Entity Common Stock, Shares Outstanding Document Fiscal Period Focus Document Fiscal Year Focus Statement of Financial Position [Abstract] Assets Current assets: Cash and cash equivalents Accounts receivable, net of allowance Short-term investments in certificates of deposit Prepaid expenses and other current assets Total current assets Property and equipment, net Right-of-use assets Long-term investments in certificates of deposit Investment in Progressive Beef Intangible and other assets, net Goodwill Deferred tax assets, net Total assets Liabilities and Equity Current liabilities: Accounts payable Accrued expenses and other current liabilities Deferred revenue Current portion of notes payable Current portion of finance lease obligations Current portion of operating lease obligations Total current liabilities Notes payable, net of current portion Finance lease obligations, net of current portion Operating lease obligation, net of current portion Deferred rent liability Lease incentive obligation Total liabilities Commitments and contingencies Contingently redeemable non-controlling interest Equity: Preferred stock, $0.001 par value; 5,000,000 shares authorized; none issued or outstanding Common stock, $0.001 par value; 95,000,000 shares authorized; 25,498,115 (2019) and 25,473,115 (2018) shares issued, and 24,784,625 (2019) and 24,968,256 (2018) shares outstanding Additional paid-in-capital Treasury stock of 713,490 (2019) and 504,859 (2018) shares Retained earnings Total equity Total liabilities and stockholders' equity Preferred stock, par value (in dollars per share) Preferred stock, authorized Preferred stock, issued Preferred stock, outstanding Common stock, par value (in dollars per share) Common stock, authorized Common stock, issued Common stock, outstanding Treasury stock, shares Statement [Table] Statement [Line Items] Revenues: Total revenues Costs of revenues: Total costs of revenues Gross profit Selling, general and administrative expenses Income from operations Other expense (income): Dividend income from Progressive Beef Other income, net Gain on sale of assets Interest expense Income before income taxes Income tax expense Net income Net loss attributable to non-controlling interest Net income attributable to Where Food Comes From, Inc. Per share - net income attributable to Where Food Comes From, Inc.: Basic (in dollars per share) Diluted (in dollars per share) Weighted average number of common shares outstanding: Basic (in shares) Diluted (in shares) Statement of Cash Flows [Abstract] Operating activities: Net income Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization Lease incentive obligation Gain on sale of assets Stock-based compensation expense Deferred tax (benefit) expense Bad debt expense Changes in operating assets and liabilities, net of effect from acquisitions: Accounts receivable Short-term investments Prepaid expenses and other assets Accounts payable Accrued expenses and other current liabilities Deferred revenue Right of use assets and liabilities, net Net cash provided by operating activities Investing activities: Acquisition of Sow Organic Acquisition of JVF Consulting Investment in Progressive Beef Proceeds from sale of assets Purchases of property, equipment and software development costs Proceeds from maturity of short-term investments Redemption (purchases) of other long-term assets Net cash used in investing activities Financing activities: Repayments of notes payable Repayments of finance lease obligations Stock repurchase under Stock Buyback Plan Net cash used in financing activities Net change in cash Cash at beginning of period Cash at end of period Increase (Decrease) in Stockholders' Equity [Roll Forward] Balance, beginning Balance, beginning, (in shares) Effect of acquisition fair value adjustment Stock-based compensation expense EX-101.PRE 11 wfcf-20190930_pre.xml XBRL TAXONOMY EXTENSION PRESENTATION LINKBASE DOCUMENT XML 12 R25.htm IDEA: XBRL DOCUMENT

Notes Payable (Tables)

9 Months Ended

Sep. 30, 2019

Notes Payable [Abstract]

Schedule of notes payable

Notes Payable consist of the following:

	September 30,			December 31,
	2019			2018

Vehicle note	$	35,655		$	42,393
Less current portion of notes payable and other long-term debt		(10,689	)		(10,173	)
Notes payable and other long-term debt	$	24,966		$	32,220

XML 13 R21.htm IDEA: XBRL DOCUMENT

Business Acquisitions (Tables)

9 Months Ended

Sep. 30, 2019

Business Combinations [Abstract]

Schedule of acquisitions

The following table summarizes the final fair values assigned to the assets and liabilities acquired in addition to the excess of the purchase price over the net assets acquired at the acquisition date.

Sow Organic, LLC:	May 16, 2018
Software acquired	$	156,000
Identifiable intangible assets:		—
Tradenames and trademarks		48,000
Non-compete agreements		84,000
Customer relationships		162,000
Goodwill		433,131
Total consideration	$	883,131

JVF Consulting, LLC:	August 30, 2018
Software acquired	$	207,000
Identifiable intangible assets:
Tradenames and trademarks		87,000
Non-compete agreements		37,000
Customer relationships		104,000
Goodwill		380,290
Total consideration	$	815,290

XML 14 R29.htm IDEA: XBRL DOCUMENT

Commitments and Contingencies (Tables)

9 Months Ended

Sep. 30, 2019

Commitments and Contingencies Disclosure [Abstract]

Schedule of redeemable noncontrolling interest

The table below reflects the activity of the contingently redeemable non-controlling interest:

Balance, December 31, 2018	$	1,449,007
Net loss attributable to non-controlling interest in SureHarvest for the year to date period ended September 30, 2019		(181,829	)
Balance, September 30, 2019	$	1,267,178

XML 15 R5.htm IDEA: XBRL DOCUMENT

Consolidated Statements of Cash Flows (Unaudited) - USD ($)	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Operating activities:
Net income	$ 577,053	$ 536,411
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	802,416	742,780
Lease incentive obligation		(8,127)
Gain on sale of assets	(1,000)
Stock-based compensation expense	128,470	125,239
Deferred tax (benefit) expense	(73,000)	57,376
Bad debt expense	26,803	10,000
Changes in operating assets and liabilities, net of effect from acquisitions:
Accounts receivable	(794,220)	(674,398)
Short-term investments	(11,205)	(3,196)
Prepaid expenses and other assets	233,583	(62,403)
Accounts payable	480,979	278,425
Accrued expenses and other current liabilities	640,993	544,473
Deferred revenue	296,954	71,831
Right of use assets and liabilities, net	26,793
Net cash provided by operating activities	2,334,619	1,618,411
Investing activities:
Acquisition of Sow Organic		(450,000)
Acquisition of JVF Consulting		(500,000)
Investment in Progressive Beef		(900,000)
Proceeds from sale of assets	1,000
Purchases of property, equipment and software development costs	(268,269)	(325,227)
Proceeds from maturity of short-term investments	252,999	250,000
Redemption (purchases) of other long-term assets		(1,350)
Net cash used in investing activities	(14,270)	(1,926,577)
Financing activities:
Repayments of notes payable	(6,738)	(7,062)
Repayments of finance lease obligations	(4,504)	(5,918)
Stock repurchase under Stock Buyback Plan	(371,220)	(140,850)
Net cash used in financing activities	(382,462)	(153,830)
Net change in cash	1,937,887	(461,996)
Cash at beginning of period	1,482,391	2,705,778
Cash at end of period	$ 3,420,278	$ 2,243,782

XML 16 R1.htm IDEA: XBRL DOCUMENT

Document and Entity Information - shares	9 Months Ended
Document and Entity Information - shares	Sep. 30, 2019	Nov. 04, 2019
Cover [Abstract]
Entity Registrant Name	Where Food Comes From, Inc.
Entity Central Index Key	0001360565
Document Type	10-Q
Document Period End Date	Sep. 30, 2019
Entity File Number	333-133624
Entity Incorporation, State or Country Code	CO
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Reporting Status Current	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		24,733,302
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2019

XML 17 R9.htm IDEA: XBRL DOCUMENT

Basic and Diluted Net Income per Share

9 Months Ended

Sep. 30, 2019

Earnings Per Share [Abstract]

Basic and Diluted Net Income per Share

Note 3 – Basic and Diluted Net Income per Share

The following is a reconciliation of the share data used in the basic and diluted income per share computations:

	Three months ended September 30,				Nine months ended September 30,
	2019		2018		2019		2018
Basic:
Weighted average shares outstanding		24,791,534		24,900,919		24,879,556		24,756,262

Diluted:
Weighted average shares outstanding		24,791,534		24,900,919		24,879,556		24,756,262
Weighted average effects of dilutive securities		180,091		173,558		182,793		182,437
Total		24,971,625		25,074,477		25,062,349		24,938,699

Antidilutive securities:		283,459		202,750		283,459		202,750

XML 18 R48.htm IDEA: XBRL DOCUMENT

Revenue Recognition (Details) - USD ($)	3 Months Ended		9 Months Ended
Revenue Recognition (Details) - USD ($)	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Segment Reporting Information [Line Items]
Total revenues	$ 6,232,482	$ 5,125,378	$ 15,075,281	$ 13,184,488
Verification and Certification Service Revenue [Member]
Segment Reporting Information [Line Items]
Total revenues	4,759,383	3,906,996	11,314,318	10,210,947
Product Sales [Member]
Segment Reporting Information [Line Items]
Total revenues	1,086,272	783,303	2,362,663	1,633,509
Software License, Maintenance and Support Services Revenue [Member]
Segment Reporting Information [Line Items]
Total revenues	226,816	208,541	821,779	759,301
Software-Related Consulting Service Revenue [Member]
Segment Reporting Information [Line Items]
Total revenues	160,011	226,538	576,521	580,731
Operating Segments [Member] \| Verification and Certification Segment [Member]
Segment Reporting Information [Line Items]
Total revenues	5,845,655	4,690,299	13,676,981	11,844,456
Operating Segments [Member] \| Verification and Certification Segment [Member] \| Verification and Certification Service Revenue [Member]
Segment Reporting Information [Line Items]
Total revenues	4,759,383	3,906,996	11,314,318	10,210,947
Operating Segments [Member] \| Verification and Certification Segment [Member] \| Product Sales [Member]
Segment Reporting Information [Line Items]
Total revenues	1,086,272	783,303	2,362,663	1,633,509
Operating Segments [Member] \| Software Sales and Related Consulting Segment [Member]
Segment Reporting Information [Line Items]
Total revenues	483,539	435,079	1,629,811	1,340,032
Operating Segments [Member] \| Software Sales and Related Consulting Segment [Member] \| Software License, Maintenance and Support Services Revenue [Member]
Segment Reporting Information [Line Items]
Total revenues	286,816	208,541	969,056	759,301
Operating Segments [Member] \| Software Sales and Related Consulting Segment [Member] \| Software-Related Consulting Service Revenue [Member]
Segment Reporting Information [Line Items]
Total revenues	196,723	$ 226,538	660,755	$ 580,731
Eliminations and Other [Member]
Segment Reporting Information [Line Items]
Total revenues	(96,712)		(231,511)
Eliminations and Other [Member] \| Software License, Maintenance and Support Services Revenue [Member]
Segment Reporting Information [Line Items]
Total revenues	(60,000)		(147,277)
Eliminations and Other [Member] \| Software-Related Consulting Service Revenue [Member]
Segment Reporting Information [Line Items]
Total revenues	$ (36,712)		$ (84,234)

XML 19 R40.htm IDEA: XBRL DOCUMENT

Notes Payable (Details Narrative) - USD ($)	1 Months Ended	9 Months Ended
Notes Payable (Details Narrative) - USD ($)	Sep. 30, 2017	Sep. 30, 2019	Dec. 31, 2018
Revolving Line of Credit [Member]
Debt instrument, face amount		$ 75,080
Maturity date on debt		Apr. 12, 2020
Effective interest rate		6.50%	7.00%
Interest rate, basis spread		1.50%
Note Payable - Vehicle [Member]
Debt instrument, face amount	$ 54,165
Interest and principal payments	$ 1,087
Interest rate	7.44%

XML 20 R44.htm IDEA: XBRL DOCUMENT

Stock-Based Compensation (Details 3) - USD ($)	3 Months Ended		9 Months Ended
Stock-Based Compensation (Details 3) - USD ($)	Sep. 30, 2019	Mar. 31, 2018	Sep. 30, 2019	Sep. 30, 2018
Number of awards
Balance at beginning			434,451
Granted	10,000	25,000	10,000	105,750
Expired/Forfeited			(7,325)
Balance at ending	437,126		437,126
Exercisable at ending	256,919		256,919
Unvested at ending	180,207		180,207
Weighted avg. exercise price per share
Balance at beginning			$ 1.49
Granted	$ 1.71	$ 2.55	1.53
Expired/Forfeited			1.83
Balance at ending	1.46		1.46
Exercisable at ending	1.21		1.21
Unvested at ending	1.81		1.81
Weighted avg. grant date fair value per share
Balance at beginning			1.47
Granted			1.71
Expired/Forfeited			1.86
Balance, ending	1.49		1.49
Exercisable at ending	1.22		1.22
Unvested at ending	$ 1.88		$ 1.88
Weighted avg. remaining contractual life (in years)
Balance at beginning			6 years 10 months 28 days
Granted			10 years
Balance at ending			6 years 2 months 23 days
Exercisable at ending			4 years 5 months 5 days
Unvested at ending			8 years 9 months 11 days
Aggregate intrinsic value
Balance at beginning			$ 230,039
Balance at ending	$ 148,775		148,775
Exercisable at ending	$ 148,775		$ 148,775

XML 21 R55.htm IDEA: XBRL DOCUMENT

Leases (Details 4)	Dec. 31, 2018 USD ($)
Lessee Disclosure [Abstract]
2019	$ 420,370
2020	421,590
2021	432,079
2022	447,264
2023	460,682
Thereafter	3,327,705
Total lease commitments	$ 5,509,690

XML 22 R51.htm IDEA: XBRL DOCUMENT

Leases (Details) - USD ($)	3 Months Ended	9 Months Ended
Leases (Details) - USD ($)	Sep. 30, 2019	Sep. 30, 2019
Lessee Disclosure [Abstract]
Operating lease cost	$ 115,674	$ 353,267
Finance lease cost amortization of assets	2,025	6,558
Interest on finance lease obligations	1,763	5,723
Total net lease cost	$ 119,462	$ 365,548

XML 23 R59.htm IDEA: XBRL DOCUMENT

Segments (Details) - USD ($)	3 Months Ended						9 Months Ended
Segments (Details) - USD ($)	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2018
Assets:
Intangible and other assets, net	$ 3,397,797			$ 4,867,464			$ 3,397,797	$ 4,867,464
Goodwill	3,143,734			3,213,444			3,143,734	3,213,444	$ 3,143,734
Total assets	19,537,893			15,503,346			19,537,893	15,503,346	$ 14,463,938
Revenues:
Total revenues	6,232,482			5,125,378			15,075,281	13,184,488
Costs of revenues:
Total costs of revenues	3,645,455			2,888,856			8,734,126	7,204,917
Gross profit	2,587,027			2,236,522			6,341,155	5,979,571
Depreciation & amortization	257,188			241,174			802,416	742,780
Other operating expenses	1,715,844			1,577,845			4,822,143	4,551,181
Segment operating (loss)/income	613,995			417,503			716,596	685,610
Other items to reconcile segment operating income (loss) to net income attributable to WFCF:
Other expense (income)	(29,569)			(102,155)			(90,547)	(107,801)
Income tax (benefit)/expense	184,001			169,000			230,090	257,000
Net loss attributable to non-controlling interest	81,359			26,691			181,829	53,261
Net (loss)/income attributable to WFCF	540,922	$ 361,089	$ (143,129)	377,349	$ 176,839	$ 35,484	758,882	589,672
Verification and Certification Service Revenue [Member]
Revenues:
Total revenues	4,759,383			3,906,996			11,314,318	10,210,947
Costs of revenues:
Total costs of revenues	2,673,200			2,098,462			6,332,564	5,399,626
Product Sales [Member]
Revenues:
Total revenues	1,086,272			783,303			2,362,663	1,633,509
Costs of revenues:
Total costs of revenues	696,579			489,149			1,537,837	1,035,094
Software License, Maintenance and Support Services Revenue [Member]
Revenues:
Total revenues	226,816			208,541			821,779	759,301
Costs of revenues:
Total costs of revenues	153,452			183,942			469,065	489,887
Software-Related Consulting Service Revenue [Member]
Revenues:
Total revenues	160,011			226,538			576,521	580,731
Costs of revenues:
Total costs of revenues	122,224			117,303			394,660	280,310
Operating Segments [Member] \| Verification and Certification Segment [Member]
Assets:
Intangible and other assets, net	1,343,955			2,883,887			1,343,955	2,883,887
Goodwill	1,133,122			1,840,956			1,133,122	1,840,956
Total assets	14,214,110			14,274,121			14,214,110	14,274,121
Revenues:
Total revenues	5,845,655			4,690,299			13,676,981	11,844,456
Costs of revenues:
Total costs of revenues	3,429,929			2,587,611			7,993,524	6,434,720
Gross profit	2,415,726			2,102,688			5,683,457	5,409,736
Depreciation & amortization	78,620			102,944			263,209	328,370
Other operating expenses	1,519,708			1,442,568			4,229,813	4,127,982
Segment operating (loss)/income	817,398			557,176			1,190,435	953,384
Other items to reconcile segment operating income (loss) to net income attributable to WFCF:
Other expense (income)	(29,563)			(102,155)			(89,538)	(108,661)
Net loss attributable to non-controlling interest								1,062,045
Net (loss)/income attributable to WFCF	846,961			659,331			1,279,973
Operating Segments [Member] \| Verification and Certification Segment [Member] \| Verification and Certification Service Revenue [Member]
Revenues:
Total revenues	4,759,383			3,906,996			11,314,318	10,210,947
Costs of revenues:
Total costs of revenues	2,733,350			2,098,462			6,455,687	5,399,626
Operating Segments [Member] \| Verification and Certification Segment [Member] \| Product Sales [Member]
Revenues:
Total revenues	1,086,272			783,303			2,362,663	1,633,509
Costs of revenues:
Total costs of revenues	696,579			489,149			1,537,837	1,035,094
Operating Segments [Member] \| Software Sales and Related Consulting Segment [Member]
Assets:
Intangible and other assets, net	2,053,842			1,983,577			2,053,842	1,983,577
Goodwill	2,010,612			1,372,488			2,010,612	1,372,488
Total assets	5,323,783			1,229,225			5,323,783	1,229,225
Revenues:
Total revenues	483,539			435,079			1,629,811	1,340,032
Costs of revenues:
Total costs of revenues	275,676			301,245			863,725	770,197
Gross profit	207,863			133,834			766,086	569,835
Depreciation & amortization	178,568			138,230			539,207	414,410
Other operating expenses	232,698			135,277			700,718	423,199
Segment operating (loss)/income	(203,403)			(139,673)			(473,839)	(267,774)
Other items to reconcile segment operating income (loss) to net income attributable to WFCF:
Other expense (income)	(6)						(1,009)	860
Net loss attributable to non-controlling interest	81,359			26,691			181,829	53,261
Net (loss)/income attributable to WFCF	(122,038)			(112,982)			(291,001)	(215,373)
Operating Segments [Member] \| Software Sales and Related Consulting Segment [Member] \| Software License, Maintenance and Support Services Revenue [Member]
Revenues:
Total revenues	286,816			208,541			969,056	759,301
Costs of revenues:
Total costs of revenues	153,452			183,942			469,065	489,887
Operating Segments [Member] \| Software Sales and Related Consulting Segment [Member] \| Software-Related Consulting Service Revenue [Member]
Revenues:
Total revenues	196,723			226,538			660,755	580,731
Costs of revenues:
Total costs of revenues	122,224			117,303			394,660	580,731
Eliminations and Other [Member]
Revenues:
Total revenues	(96,712)						(231,511)
Costs of revenues:
Total costs of revenues	(60,150)						(123,123)
Gross profit	(36,562)						(108,388)
Other operating expenses	(36,562)						(108,388)
Other items to reconcile segment operating income (loss) to net income attributable to WFCF:
Income tax (benefit)/expense	184,001			169,000			230,090	257,000
Net (loss)/income attributable to WFCF	(184,001)			$ (169,000)			(230,090)	$ (257,000)
Eliminations and Other [Member] \| Verification and Certification Service Revenue [Member]
Costs of revenues:
Total costs of revenues	(60,150)
Eliminations and Other [Member] \| Software License, Maintenance and Support Services Revenue [Member]
Revenues:
Total revenues	(60,000)						(147,277)
Costs of revenues:
Total costs of revenues							(123,123)
Eliminations and Other [Member] \| Verification and Certification Service Revenue [Member]
Revenues:
Total revenues	(60,000)
Eliminations and Other [Member] \| Software-Related Consulting Service Revenue [Member]
Revenues:
Total revenues	(36,712)						$ (84,234)
Eliminations and Other [Member] \| Software Related Consulting Service Revenue [Member]
Revenues:
Total revenues	$ (36,712)

XML 24 R38.htm IDEA: XBRL DOCUMENT

Accrued Expenses and Other Current Liabilities (Details) - USD ($)	Sep. 30, 2019	Dec. 31, 2018
Payables and Accruals [Abstract]
Income and sales taxes payable	$ 36,616	$ 19,978
Payroll related accruals	814,184	147,798
Customer deposits	113,279	72,982
Professional fees and other expenses	169,515	251,843
Accrued Expenses and Other Current Liabilities	$ 1,133,594	$ 492,601

XML 25 R30.htm IDEA: XBRL DOCUMENT

Segments (Tables)

9 Months Ended

Sep. 30, 2019

Segment Reporting [Abstract]

Schedule of operating segments

The following table shows information for reportable operating segments:

	Three months ended September 30, 2019												Three months ended September 30, 2018
		Verification and Certification Segment			Software Sales and Related Consulting Segment			Eliminations and Other			Consolidated Totals			Verification and Certification Segment			Software Sales and Related Consulting Segment			Eliminations and Other			Consolidated Totals
Assets:
Intangible and other assets, net	$	1,343,955		$	2,053,842		$	—		$	3,397,797		$	2,883,887		$	1,983,577		$	—		$	4,867,464
Goodwill		1,133,122			2,010,612			—			3,143,734			1,840,956			1,372,488			—			3,213,444
Total assets		14,214,110			5,323,783			—			19,537,893			14,274,121			1,229,225			—			15,503,346

Revenues:
Verification and certification service revenue	$	4,759,383		$	—		$	—		$	4,759,383		$	3,906,996		$	—		$	—		$	3,906,996
Product sales		1,086,272			—			—			1,086,272			783,303			—			—			783,303
Software license, maintenance and support services revenue		—			286,816			(60,000	)		226,816			—			208,541			—			208,541
Software-related consulting service revenue		—			196,723			(36,712	)		160,011			—			226,538			—			226,538
Total revenues	$	5,845,655		$	483,539		$	(96,712	)	$	6,232,482		$	4,690,299		$	435,079		$	—		$	5,125,378
Costs of revenues:
Costs of verification and certification services		2,733,350			—			(60,150	)		2,673,200			2,098,462			—			—			2,098,462
Costs of products		696,579			—			—			696,579			489,149			—			—			489,149
Costs of software license, maintenance and support services		—			153,452			—			153,452			—			183,942			—			183,942
Costs of software-related consulting services		—			122,224			—			122,224			—			117,303			—			117,303
Total costs of revenues		3,429,929			275,676			(60,150	)		3,645,455			2,587,611			301,245			—			2,888,856
Gross profit		2,415,726			207,863			(36,562	)		2,587,027			2,102,688			133,834			—			2,236,522
Depreciation & amortization		78,620			178,568			—			257,188			102,944			138,230			—			241,174
Other operating expenses		1,519,708			232,698			(36,562	)		1,715,844			1,442,568			135,277			—			1,577,845
Segment operating (loss)/income	$	817,398		$	(203,403	)	$	—		$	613,995		$	557,176		$	(139,673	)	$	—		$	417,503
Other items to reconcile segment operating income (loss) to net income attributable to WFCF:
Other expense (income)		(29,563	)		(6	)		—			(29,569	)		(102,155	)		—			—			(102,155	)
Income tax (benefit)/expense		—			—			184,001			184,001			—			—			169,000			169,000
Net loss attributable to non-controlling interest		—			81,359			—			81,359			—			26,691			—			26,691
Net (loss)/income attributable to WFCF	$	846,961		$	(122,038	)	$	(184,001	)	$	540,922		$	659,331		$	(112,982	)	$	(169,000	)	$	377,349

	Nine months ended September 30, 2019												Nine months ended September 30, 2018
		Verification and Certification Segment			Software Sales and Related Consulting Segment			Eliminations and Other			Consolidated Totals			Verification and Certification Segment			Software Sales and Related Consulting Segment			Eliminations and Other			Consolidated Totals
Assets:
Intangible and other assets, net	$	1,343,955		$	2,053,842		$	—		$	3,397,797		$	2,883,887		$	1,983,577		$	—		$	4,867,464
Goodwill		1,133,122			2,010,612			—			3,143,734			1,840,956			1,372,488			—			3,213,444
Total assets		14,214,110			5,323,783			—			19,537,893			14,274,121			1,229,225			—			15,503,346

Revenues:
Verification and certification service revenue	$	11,314,318		$	—		$	—		$	11,314,318		$	10,210,947		$	—		$	—		$	10,210,947
Product sales		2,362,663			—			—			2,362,663			1,633,509			—			—			1,633,509
Software license, maintenance and support services revenue		—			969,056			(147,277	)		821,779			—			759,301			—			759,301
Software-related consulting service revenue		—			660,755			(84,234	)		576,521			—			580,731			—			580,731
Total revenues	$	13,676,981		$	1,629,811		$	(231,511	)	$	15,075,281		$	11,844,456		$	1,340,032		$	—		$	13,184,488
Costs of revenues:
Costs of verification and certification services		6,455,687			—			(123,123	)		6,332,564			5,399,626			—			—			5,399,626
Costs of products		1,537,837			—			—			1,537,837			1,035,094			—			—			1,035,094
Costs of software license, maintenance and support services		—			469,065			—			469,065			—			489,887			—			489,887
Costs of software-related consulting services		—			394,660			—			394,660			—			280,310			—			280,310
Total costs of revenues		7,993,524			863,725			(123,123	)		8,734,126			6,434,720			770,197			—			7,204,917
Gross profit		5,683,457			766,086			(108,388	)		6,341,155			5,409,736			569,835			—			5,979,571
Depreciation & amortization		263,209			539,207			—			802,416			328,370			414,410			—			742,780
Other operating expenses		4,229,813			700,718			(108,388	)		4,822,143			4,127,982			423,199			—			4,551,181
Segment operating (loss)/income	$	1,190,435		$	(473,839	)	$	—		$	716,596		$	953,384		$	(267,774	)	$	—		$	685,610
Other items to reconcile segment operating income (loss) to net income attributable to WFCF:
Other expense (income)		(89,538	)		(1,009	)		—			(90,547	)		(108,661	)		860			—			(107,801	)
Income tax (benefit)/expense		—			—			230,090			230,090			—			—			257,000			257,000
Net loss attributable to non-controlling interest		—			181,829			—			181,829			—			53,261			—			53,261
Net (loss)/income attributable to WFCF	$	1,279,973		$	(291,001	)	$	(230,090	)	$	758,882		$	1,062,045		$	(215,373	)	$	(257,000	)	$	589,672

XML 26 R34.htm IDEA: XBRL DOCUMENT

Business Acquisitions (Details Narrative) - USD ($)			3 Months Ended	9 Months Ended
Business Acquisitions (Details Narrative) - USD ($)	Aug. 30, 2018	May 16, 2018	Jun. 30, 2018	Sep. 30, 2018
Value of shares issued upon acquisition			$ 433,131	$ 433,131
JVF Consulting [Member]
Cash payments for acquisition	$ 500,000
Number of shares issued upon acquisition, shares	158,437
Value of shares issued upon acquisition	$ 315,300
Sow Organic [Member]
Cash payments for acquisition		$ 450,000
Number of shares issued upon acquisition, shares		217,654
Value of shares issued upon acquisition		$ 433,100

XML 27 R17.htm IDEA: XBRL DOCUMENT

Leases

9 Months Ended

Sep. 30, 2019

Lessee Disclosure [Abstract]

Leases

Note 11 – Leases

The components of lease expense were as follows:

	Three months ended September 30, 2019		Nine months ended September 30, 2019
Operating lease cost	$	115,674	$	353,267
Finance lease cost
Amortization of assets		2,025		6,558
Interest on finance lease obligations		1,763		5,723
Total net lease cost	$	119,462	$	365,548

Rent expense for the three and nine months ended September 30, 2018 was $154,200 and $435,300, respectively.

Supplemental balance sheet information related to leases was as follows:

	September 30, 2019
Operating leases:	Related Party		Other		Total
Right of use asset	$	2,975,520	$	332,869	$	3,308,389

Current operating lease liabilities		153,456		79,447		232,903
Noncurrent operating lease liabilities		3,301,204		286,836		3,588,040
Total operating lease liabilities	$	3,454,660	$	366,283	$	3,820,943

Finance leases:	September 30, 2019
Right of use asset, at cost	$	43,041
Accumulated amortization		(20,086	)
Right of use asset, net	$	22,955

Current obligations of finance leases	$	8,054
Finance leases, net of current obligations		23,798
Total finance lease liabilities	$	31,852

Weighted average remaining lease term (in years):
Operating leases		11.2
Finance leases		3.2

Weighted average discount rate:
Operating leases		5.8	%
Finance leases		20.8	%

Supplemental cash flow and other information related to leases was as follows:

	Nine months ended
	September 30, 2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	319,586
Operating cash flows from finance leases	$	5,723
Financing cash flows from finance leases	$	4,504

Maturities of lease liabilities were as follows:

Years Ending December 31st,	Operating Leases			Finance Leases
2019 (remaining three months)	$	110,773		$	3,705
2020		448,992			13,597
2021		461,657			12,355
2022		465,758			10,050
2023		461,310			4,514
Thereafter		3,308,155			—
Total lease payments		5,256,645			44,221
Less amount representing interest		(1,435,702	)		(12,369	)
Total lease obligations		3,820,943			31,852
Less current portion		(232,903	)		(8,054	)
Long-term lease obligations	$	3,588,040		$	23,798

Years ended December 31st:	Total
2019	$	420,370
2020		421,590
2021		432,079
2022		447,264
2023		460,682
Thereafter		3,327,705
Total lease commitments	$	5,509,690

XML 28 R13.htm IDEA: XBRL DOCUMENT

Notes Payable

9 Months Ended

Sep. 30, 2019

Notes Payable [Abstract]

Notes Payable

Note 7 – Notes Payable

Notes Payable consist of the following:

	September 30,			December 31,
	2019			2018

Vehicle note	$	35,655		$	42,393
Less current portion of notes payable and other long-term debt		(10,689	)		(10,173	)
Notes payable and other long-term debt	$	24,966		$	32,220

Unison Revolving Line of Credit

XML 29 R58.htm IDEA: XBRL DOCUMENT

Commitments and Contingencies (Details Narrative) - USD ($)		3 Months Ended	9 Months Ended
	Dec. 28, 2016	Jun. 30, 2018	Sep. 30, 2018
Value of shares issued upon acquisition		$ 433,131	$ 433,131
Sure Harvest [Member]
Percentage of business acquired	60.00%
Total consideration for acquisition	$ 2,660,000
Cash payments for acquisition	$ 1,122,000
Number of shares issued upon acquisition, shares	850,852
Value of shares issued upon acquisition	$ 1,534,900
Percentage of remaining ownership interest	40.00%
Assumed purchase price of remaining ownership interest	$ 8,000,000

XML 30 R54.htm IDEA: XBRL DOCUMENT

Leases (Details 3) - USD ($)	Sep. 30, 2019	Dec. 31, 2018
Operating Leases
2019 (remaining three months)	$ 110,773
2020	448,992
2021	461,657
2022	465,758
2023	461,310
Thereafter	3,308,155
Total lease payments	5,256,645
Less amount representing interest	(1,435,702)
Total lease obligations	3,820,943
Less current portion	(232,903)
Long-term lease obligations	3,588,040
Finance Leases
2019 (remaining three months)	3,705
2020	13,597
2021	12,355
2022	10,050
2023	4,514
Total lease payments	44,221
Less amount representing interest	(12,369)
Total lease obligations	31,852
Less current portion	(8,054)	$ (11,309)
Long-term lease obligations	$ 23,798	$ 32,747

XML 31 R50.htm IDEA: XBRL DOCUMENT

Revenue Recognition (Details Narrative) - USD ($)	Sep. 30, 2019	Dec. 31, 2018
Accounts receivable from contract with customers	$ 2,972,600	$ 2,205,200
Deposits and Deferred Revenue [Member]
Contract of customer liability	$ 1,065,100	$ 727,900

XML 32 R31.htm IDEA: XBRL DOCUMENT

Supplemental Cash Flow Information (Tables)

9 Months Ended

Sep. 30, 2019

Supplemental Cash Flow Information [Abstract]

Schedule of supplemental cash flow information

	Nine months ended September 30,
	2019		2018
Cash paid during the year:
Interest expense	$	8,768	$	3,755
Income taxes	$	131,268	$	418,965

Non-cash investing and financing activites:
Common stock issued in connection with acquisition of Sow Organic	$	—	$	433,131
Common stock issued in connection with investment in Progressive Beef	$	—	$	91,115
Common Stock issued in connection with acquisition of JVF Consulting	$	—	$	315,291
Equipment acquired under a capital lease	$	—	$	19,809
Lease incentive obligation	$	—	$	230,220

XML 33 R35.htm IDEA: XBRL DOCUMENT

Basic and Diluted Net Income per Share (Details) - $ / shares	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Basic:
Weighted average shares outstanding	24,791,534	24,900,919	24,879,556	24,756,262
Diluted:
Weighted average shares outstanding	24,791,534	24,900,919	24,879,556	24,756,262
Weighted average effects of dilutive securities	180,091	173,558	182,793	182,437
Total	24,971,625	25,074,477	25,062,349	24,938,699
Antidilutive securities:	$ 283,459	$ 202,750	$ 283,459	$ 202,750

XML 34 R39.htm IDEA: XBRL DOCUMENT

Notes Payable (Details) - USD ($)	Sep. 30, 2019	Dec. 31, 2018
Notes Payable [Abstract]
Vehicle note	$ 35,655	$ 42,393
Less current portion of notes payable and other long-term debt	(10,689)	(10,173)
Notes payable and other long-term debt	$ 24,966	$ 32,220

XML 35 R16.htm IDEA: XBRL DOCUMENT

Revenue Recognition

9 Months Ended

Sep. 30, 2019

Revenue from Contract with Customer [Abstract]

Revenue Recognition