Where Food Comes From, Inc. (NASDAQ:WFCF), a Colorado-based company specializing in prepackaged software services, has announced a change in its independent registered public accounting firm. On Monday, Causey Demgen & Moore P.C. (Causey), the company's former accountant, resigned following an agreement with Haynie & Company (Haynie), which acquired certain operations of Causey. Subsequently, on Tuesday, Haynie was engaged as the new independent auditor with the approval of the company's Audit Committee.
The company's previous financial statements for the years ending December 31, 2023, and December 31, 2022, audited by Causey, did not contain any adverse opinions or disclaimers and were not qualified or modified in terms of uncertainty, audit scope, or accounting principles. Furthermore, there were no disagreements between Where Food Comes From, Inc. and Causey on matters of accounting principles or practices, financial statement disclosure, or auditing scope or procedures that would have required mention in Causey's reports.
In compliance with regulatory standards, Where Food Comes From, Inc. provided Causey with a copy of the report filed with the Securities and Exchange Commission (SEC) and has included Causey's letter dated August 12, 2024, as part of the 8-K filing, confirming their agreement with the statements made in the report.
The transition to Haynie as the new certifying accountant marks a significant change for Where Food Comes From, Inc. as it continues its operations. The company has not sought advice from Haynie on accounting principles or audit opinions prior to the engagement. This information is based on a press release statement.
In other recent news, Where Food Comes From, Inc. announced steady growth in its Q2 2024 financial results. The company reported a 4% increase in total revenue, rising to $6.4 million from $6.1 million last year. This growth was largely driven by a 10% increase in verification and certification services. Despite challenges such as cyclical cattle trends and a competitive labor market, the company maintained profitability and continued its share buyback program, repurchasing 33,347 shares at a cost of $389,000.
Gross profit rose to $2.7 million from $2.5 million, yet operating income declined to $0.6 million, with net income decreasing by 8%. Adjusted EBITDA also saw an 8% decrease to $0.8 million. Despite these figures, the company's diversified business model, which includes emerging growth areas such as Upcycled Certified and biosecurity services, continues to mitigate pressures from individual segments.
Additionally, Where Food Comes From is adapting to new USDA mandates regarding RFID tags for the ADT program, integrating free government-supplied tags into their system for a fee. These recent developments indicate the company's resilience and strategic investment in its long-term growth prospects.
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