Business Context and Reporting Period
Where Food Comes From, Inc. (WFCF) filed this Form 8-K on December 17, 2019, to report a material corporate event. The company is incorporated in Colorado and operates in the food and agriculture sector.
Key Financial Metrics and Transaction Details
The filing details the exercise of a call option to acquire the remaining 40% equity interest in SureHarvest Services, LLC (SureHarvest). The total consideration for this transaction was approximately $1,547,000, structured as follows:
- Cash Component: $1,000,000
- Stock Component: 303,951 shares of WFCF common stock valued at approximately $547,000 (based on a closing price of $1.80 per share on December 17, 2019).
The transaction is financed using cash on hand. The filing does not provide updated consolidated revenue, profit, cash flow, margins, or debt figures for the reporting period.
Material Changes and Historical Context
This transaction completes WFCF's ownership of SureHarvest. Previously, on December 28, 2016, the company acquired a 60% interest in SureHarvest for approximately $2.8 million ($1,122,000 cash and 850,852 shares of stock valued at $1,710,000). The current filing represents the final step to achieve 100% ownership.
Guidance, Outlook, and Risks
The filing contains no forward-looking guidance, management commentary on future outlook, or specific risk factors beyond the standard disclosure of the transaction. No unusual items or contingencies were disclosed in this report.
Key Facts for Investor Verification
- WFCF now owns 100% of SureHarvest Services, LLC.
- The company utilized $1,000,000 of cash on hand to fund the acquisition.
- 303,951 new shares of WFCF common stock were issued as part of the consideration.
- The transaction was valued based on a stock price of $1.80 per share on the date of the report.