Where Food Comes From, Inc. (WFCF) reported its financial results for the nine months ended September 30, 2024, showing a total revenue of $19.1 million, an increase from $18.4 million in the same period of 2023. The growth was primarily driven by an 8.8% rise in verification and certification service revenue, which reached $15.2 million, up from $13.9 million in the prior year. However, product sales decreased to $2.9 million from $3.1 million, reflecting a challenging market environment.

Despite the revenue growth, the company experienced a decline in net income, which fell to $1.2 million for the nine months ended September 30, 2024, compared to $1.4 million in 2023. This decline was attributed to increased costs of revenues, which rose to $11.3 million from $10.9 million, and higher operating expenses, which increased by approximately $0.6 million year-over-year.

For the third quarter of 2024, total revenues were $7.1 million, slightly up from $7.0 million in the same quarter of 2023. However, net income for the quarter decreased to $0.5 million from $0.7 million in the prior year, with net income per share dropping to $0.09 from $0.13.

The company’s total assets as of September 30, 2024, were $16.9 million, down from $17.7 million a year earlier. Total current liabilities increased significantly to $5.2 million from $3.0 million, contributing to a rise in total liabilities to $7.5 million from $5.5 million. Retained earnings improved to $10.9 million from $9.7 million, while total equity decreased to $9.5 million from $10.8 million.

In terms of strategic developments, WFCF engaged in a common stock purchase in March 2024, acquiring 80,201 shares for approximately $1.0 million, which were immediately retired. The company also reported a dividend income of $150,000 from its investment in Progressive Beef for the nine months ended September 30, 2024, consistent with the previous year.

The company continues to navigate a cyclical cattle industry, currently in a contraction phase, influenced by factors such as drought and supply-demand dynamics. WFCF remains focused on growth through diversification and potential acquisitions, while maintaining a commitment to its stakeholders and workforce, which consists of 104 employees, with a significant representation of female and minority employees.