Where Food Comes From(R), Inc. Reports First Quarter Financial Results

CASTLE ROCK, CO--(Marketwired - May 1, 2013) - Where Food Comes From, Inc. (d.b.a. IMI Global, Inc.) (OTCQB: WFCF), a leading provider of verification and Internet solutions for the agricultural/livestock industry, today announced financial results for its first quarter ended March 31, 2013.

Revenue in the first quarter was $1,025,500, down slightly as compared with revenue of $1,029,300 in the same quarter last year. The decline was due to reduced source and age verification activity associated with Japan recently having eased its beef important regulations. Lower source and age verification revenue was more than offset by increased revenue from other WFCF service offerings, including Non-Hormone Treated Cattle (NHTC) and Verified Natural Beef (VNB) programs. Total verification services revenue increased slightly to $853,600 in the first quarter from $845,800 in the same quarter last year. Hardware revenue consisting of cattle ear tags declined to $129,000 from $157,000 year over year, again a reflection of reduced source and age verification activity. Other revenue, primarily comprised of fees from the Where Food Comes From labeling program, grew 62% year-over-year to $42,900 from $26,500.

Selling, general and administrative expense in the first quarter increased 28% year over year to $625,500 from $488,100. This increase reflected expenses associated with the Company's 60% ownership interest in International Certification Services (ICS), which was acquired on February 29, 2012. Net loss attributable to Where Food Comes From, Inc. in the first quarter was $58,400, or less than one cent per share, versus net income of $362,100, or $0.02 per share, in same quarter last year.

"As anticipated, Japan's decision to ease import regulations affected our source and age verification activity in the first quarter and this, in turn, impacted revenue and profitability," said John Saunders, Chairman and CEO. "On the positive side, the majority of our source and age customers continue to subscribe to our verification services in order to differentiate their cattle and respond to ever increasing consumer demands for more information on the food they eat. We're also gratified that overall verification revenue increased year-over-year as demand for other services such as Non-Hormone Treated Cattle and Verified Natural Beef continued to grow. We have the industry's most diverse portfolio of services, which enables us to weather a short-term downturn in a particular service offering, and we continue to look for ways to further enhance that portfolio, both through internally developed programs and M&A activity. Meanwhile, our flagship Where Food Comes From consumer labeling program continues to show year-over-year revenue gains and holds tremendous potential for long-term growth as consumers demand more transparency into the food chain continuum. We remain confident about our long term prospects for profitable growth and look forward to another year of solid performance in 2013."

Conference Call
The Company will conduct a conference call today at 2:15 p.m. Mountain Time.

The call-in numbers for the conference call:
Domestic Toll Free: 1-877-941-1466
International: 1-480-629-9867
Conference Code: 4616473

Phone replay:
A telephone replay of the conference call will be available through May 15, 2013, as follows:
Domestic Toll Free: 1-800-406-7325
International: 1-303-590-3030
Conference Code: 4616473

About Where Food Comes From, Inc.
Where Food Comes From, Inc. (d.b.a. IMI Global) is America's leading provider of third-party identification, verification and traceability solutions for the livestock and agricultural industries. The Company supports more than 6,000 ranchers, farmers, feed yards, meatpackers, food retailers and restaurants with a wide range of solutions, including its USVerified™ brand -- the industry standard for USDA Process Verified (PVP) programs -- which annually verifies marketing claims for approximately one half of all U.S. beef exports; Where Food Comes From®, a unique retail and restaurant labeling program that connects consumers directly to the source of the food they purchase; and various organic and gluten free certification solutions through its International Certification Services (ICS) subsidiary. Go to www.IMIGlobal.com and www.wherefoodcomesfrom.com for additional information.

CAUTIONARY STATEMENT
This news release contains "forward-looking statements" within the meaning of the U.S. Private Securities Litigation Reform Act of 1995, based on current expectations, estimates and projections that are subject to risk. Forward-looking statements are inherently uncertain, and actual events could differ materially from the Company's predictions. Important factors that could cause actual events to vary from predictions include those discussed in our SEC filings. Specifically, statements in this news release about expectations to grow organically and through M&A; industry leadership; potential for exponential growth of the Where Food Comes From program; ability to weather short-term downturns in a revenue segment; and the demand for, and impact and efficacy of, the Company's and its subsidiaries' products and services on the marketplace are forward-looking statements that are subject to a variety of factors, including availability of capital, personnel and other resources; competition; governmental regulation of the agricultural industry; the market for beef and other commodities; and other factors. Financial results for the first quarter are not necessarily indicative of future results. Readers should not place undue reliance on these forward-looking statements. The Company assumes no obligation to update its forward-looking statements to reflect new information or developments. For a more extensive discussion of the Company's business, please refer to the Company's SEC filings at www.sec.gov.

Where Food Comes From, Inc.
Statements of Income
				Three Months Ended
				March 31,
				2013				2012
Revenues
	Service revenues			$	853,606			$	845,827
	Product sales				129,009				156,954
	Other revenues				42,888				26,503
		Total revenues			1,025,503				1,029,284
Costs of revenues
	Labor and other costs of services				405,792				355,453
	Costs of products				85,889				102,872
		Total costs of revenue			491,681				458,325
Gross profit					533,822				570,959
Selling, general and administrative expenses					625,515				488,137
Income (loss) from operations					(91,693	)			82,822
Other expense (income):
	Interest expense				6,779				7,872
	Other income, net				(447	)			(2,662	)
Income (loss) before income taxes					(98,025	)			77,612
Income tax benefit					(34,288	)			(282,090	)
Net income (loss)					(63,737	)			359,702
Net loss attributable tonon-controlling interest					5,354				2,431
Net income (loss) attributable to Where FoodComes From, Inc.				$	(58,383	)		$	362,133
Net income (loss) per share:
	Basic			$	-			$	0.02
	Diluted			$	-			$	0.02
Weighted average number of commonshares outstanding:
Basic					21,439,355				20,609,639
Diluted					21,439,355				21,105,614

Where Food Comes From, Inc.
Balance Sheets
				March 31,				December 31,
				2013				2012
ASSETS
Current Assets:
	Cash and cash equivalents			$	1,505,638			$	1,403,489
	Accounts receivable, net				329,850				377,072
	Prepaid expenses and other current assets				52,217				80,189
	Deferred tax assets				277,232				242,944
		Total current assets			2,164,937				2,103,694
Property and equipment, net					139,602				146,563
Intangible and other assets, net					293,776				303,810
Goodwill					532,997				532,997
Long-term deferred tax assets					277,177				277,177
Total assets				$	3,408,489			$	3,364,241
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
	Accounts payable			$	149,907			$	134,913
	Accrued expenses and other current liabilities				42,918				58,808
	Customer deposits				30,969				27,478
	Deferred revenue				207,990				139,022
	Short-term debt and current portion of notes payable				23,745				22,873
	Current portion of capital lease obligations				4,012				5,506
		Total current liabilities			459,541				388,600
Capital lease obligations, net of current portion					13,958				14,981
Notes payable and other long-term debt, net of current portion					184,465				191,106
Notes payable, related party					200,000				200,000
Total liabilities					857,964				794,687
Stockholders' equity:
	Common stock				21,977				21,837
	Additional paid-in capital				3,713,124				3,668,556
	Treasury stock				(121,294	)			(121,294	)
	Accumulated deficit				(1,345,923	)			(1,287,540	)
		Total Where Food Comes From, Inc. equity			2,267,884				2,281,559
		Non-controlling interest			282,641				287,995
Total equity					2,550,525				2,569,554
Total liabilities and stockholders' equity				$	3,408,489			$	3,364,241