NASDAQ: 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 professional services for most food groups and over 50 programs and
organizations. This growth has been achieved both organically and through the acquisition of other companies.

BUSINESS
OVERVIEW

What
We Do

The
Company is one of the nation’s largest independent, third-party traceability and verification providers. We use rigorous verification
processes on food production processes to ensure that claims made by food producers and processors 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. Our customers
include top-tier players in the food and wine space.

The
Company also provides a wide range of professional consulting services and technology solutions that generate incremental revenue specific
to the food and agricultural industry and drive sustainable value creation.

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The
Company’s business benefits from growing demand by consumers, retailers and government for increased transparency into food production
practices.

Consumers:
Due to concerns about social responsibility and sustainability, food safety, and an overall increase in health consciousness, consumers
are demanding more information about the food they purchase. Third-party verification means highly trained verification specialists reviewed
documentation and have sent independent auditors onsite to where the food came from to confirm if a claim is true.

Retailers:
Responding to consumer demands for increased transparency as well as to the negative impact food scandals have on their bottom lines,
retailers are requiring their suppliers to adhere to more stringent traceability and verification of product claims. Verification and
certification provide retailers and food service a way to differentiate themselves from their competitors. Ultimately, verification helps
build trust while communicating how much a retailer cares about the authenticity of the claims on their products.

Government
Regulation: Regulations including the U.S. Department of Agriculture’s (“USDA”) Animal Disease Traceability program,
international export requirements, non-GMO and gluten-free testing requirements, and ingredient labeling regulations are all impacting
product verification. Verification programs add value to products. In addition to adding value, they also enable access to new market
opportunities, which include international exports.

Growth
Strategy

Due
to organic growth in our portfolio of auditing standards, consumer demand and acquisitions, our sales have grown rapidly from $1.1 million
in 2006 to $24.9 million in 2025, a 19-year compounded annual growth rate (“CAGR”) of approximately 17.87%.

Our
growth strategy is as follows:

● To
cover more food groups than any other verification provider. Currently we verify to hundreds
of claims, programs and markets focusing on beef, lamb, pork, poultry, fish, dairy, eggs,
fresh produce, nuts and grains, wine and finished products. We continue to expand our scope
within beverages, seafood and other produce. We believe we offer the most comprehensive verification
solutions in the industry.

● To
offer solutions for all participants in the food supply chain, including feed and input ingredient
providers, farmers, producers, integrators, packers, auction barns, processors, handlers,
distributors, restaurants, retailers and consumers.

● To
continue organic growth. We leverage our bundling capability to aggressively pursue new customers,
while sustaining our recurring revenue model and high retention rates. We help new and existing
customers create a program specific to their brand. As long as their process or claim can
be standardized, we can create an audit platform to measure it accurately and authentically.

● To
continue growth through merger and acquisition opportunities. Through selective acquisitions,
we can expand our footprint by adding new customers, services, food groups and revenue streams.

INDUSTRY
BACKGROUND

The
value-added food industry has been growing rapidly for the past several years in response to increased consumer interest about social
responsibility, sustainability and food safety production practices. We continue to see a growing interest from consumers regarding how
their food is produced. We are in an increasingly global food market with food products traveling around the world, and brands differentiating
themselves in the market. These key drivers are increasing the number of food labeling claims made on food products.

Natural
and/or organic are examples of food labels that indicate that the food or other agricultural product has been produced in a certain way.
Natural and organic sales are only part of the story of how consumers look for the verification of practices tied to food labeling claims.
Other factors are also becoming increasingly more important to consumers, evidenced on menus and product labels. While not an exhaustive
list, some of the issues that farms, ranches, producers, processors, restaurants and retailers are addressing include how animals are
cared for and handled, how a product’s production impacts the environment and societies, and what inputs were used in the production
of food items (like antibiotics).

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As
consumers want more assurance about the trustworthiness of labeling claims, there is a growing trend for verification of practices around
sustainability. As the agriculture, livestock and food industries continue to mature and expand internationally, there is an increasing
need to record, manage, report and verify information regarding the source, age, genetic background, animal husbandry, environmental
stewardship, practices surrounding the people and community, and other credence attributes. We believe verification of labeling claims
by an independent third-party can meet consumer demands and expectations. Third-party verification also benefits producers, processors,
distributors, restaurants, and retailers by addressing marketplace differentiation and global competitiveness.

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
Steve Stouffer, group president of Tyson Fresh Meats, “We recognize the importance
of sustainable beef production practices that take care of people, the planet and animals.
Our goal is to work with ranchers to verify (via a third-party) and, when possible, improve
those practices so that we can be transparent with our customers and consumers about how
cattle in our supply chain are raised.” The March 9, 2023 blog page titled “Creating
a Pathway to a More Sustainable Beef Industry” written by Dr. Justin Ransom and Chad
Martin continues to repeat this idea, “Through the Climate-Smart Beef Program, we (Tyson)
can now track beef emissions at the individual animal level and work with our feedlot partners
to share the data with producers so they can continue to build on their sustainable agriculture
practices. To model these emissions, data – for example, farm management data and operational
information – is collected and verified through third-party auditors such as Where
Food Comes From, Inc. …At Tyson Foods, we believe the future of beef can be both climate-friendly
and consumer-friendly.”

● The
JanahCyle.org September 11, 2024 blog page titled “Building Trust in Food and Beverage
Brands through Purpose-Driven Marketing” states “…As consumer expectations
continue to shift, food and beverage brands must adapt. Purpose-driven marketing isn’t
just a trend - it’s a necessity. Brands that commit to transparency, sustainability,
and ethical practices will be the ones that thrive… In the end, consumers want to trust
that the brands they support are doing their part to make the world a better place. By staying
true to their purpose, food and beverage brands can rebuild and maintain the trust that is
essential to long-term success.

● Per
the Organic Food Global Market Report 2025 by The Business Research Company, “The organic
food market size has grown rapidly in recent years. It will grow from $279.19 billion in
2024 to $318.37 billion in 2025 at a compound annual growth rate (CAGR) of 14.0%.”
Furthermore, “The organic food market size is expected to …grow to $568.82 billion
in 2029 at a compound annual growth rate (CAGR) of 15.6%. The growth in the forecast period
can be attributed to the growing number of health-conscious consumers, demographic shifts
in emerging markets, rising penetration of organized retail and growth in specialist organic
food retailers in developed economies. Major trends in the forecast period include focusing
on improving labelling and packaging, exploring opportunities to invest in new product launches,
leveraging artificial intelligence (ai) for organic farming, developing zero-calorie soft
drinks, focusing on expanding product portfolio and focusing on upcycled food.” Major
companies operating in the organic food market include Danone S.A, The Kroger Co, General
Mills Inc, The Hain Celestial Group Inc, Organic Valley, United Natural Foods, Inc., Dole
Food Company, and Amy’s Kitchen, Inc.

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Market
Driver #2 - Global competitiveness and risk mitigation among producers, restaurants, and retailers

● Global
Food, Beverage and Agriculture Risk Report 2024 included a survey conducted by Coleman Parks
in January 2024. One key finding stated, “The primary focus of the sector (food, beverage
and agriculture) lies in mitigating disruptions, with business interruption and supply chain
issues being the top internal risks, and global instability exacerbating concerns about potential
disruptions.” The survey also noted that “Embracing sustainability, health and
wellness presents significant opportunities, reflecting consumer priorities. Businesses foresee
these areas as key for growth, with 53% seeing them as major opportunities over the next
two years.” We can assist companies by providing third party verification and other
technology solutions to help companies minimize risk and compete with brand innovation.

● Per
various experts in the LinkedIn article dated December 18, 2023, “Using third-party
certification programs for suppliers can offer several benefits for your business, such as
enhancing your reputation and credibility, reducing risks and liabilities, improving efficiency
and quality, and supporting innovation and differentiation. This can be achieved by demonstrating
a commitment to ethical and sustainable sourcing, avoiding suppliers that violate laws or
human rights, accessing new markets and opportunities, and creating value-added products
and services by working with high-performance suppliers.”

● Producers,
restaurant chains and retailers with dominant market shares and large buying power, like
Dannon, Tyson, McDonald’s, Chick-Fil-A, Costco, 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. We believe our technology
will play a key role in capturing data to improve processes, yields and communicate our customer’s
values, practices and other initiatives to consumers.

Market
Driver #3 - Government regulation

● On
July 15, 2019 the European Council approved an agreement to establish a duty-free tariff
rate quote (TRQ) exclusively for the United States for High Quality Beef (“HQB”).
HQB includes a restriction on hormones and must be third party verified. Under the agreement,
US ranchers are guaranteed an increasingly larger share of Europe’s beef market annually,
with annual duty-free exports. The annual quota will increase from 18,500 metric tons beginning
in 2020, growing annually, then stabilizing at 35,000 metric tons in 2026 and beyond. We
believe the EU quota will continue to fuel demand for non-hormone treated cattle (“NHTC”).

● Effective
on November 5, 2024, the Animal Disease Traceability (“ADT”) 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. Our traceability solutions
and EID tags can track animals from birth to slaughter using technology that offers a comprehensive
solution that meets and/or exceeds the USDA’s ADT Rule.

● Pressure
from financial markets has also been growing. Investment managers such as BlackRock, as well
as state and financial regulators including the State of California, the Securities and Exchange
Commission and the U.S. Federal Reserve, are pushing companies to disclose sustainability
metrics such as emissions across their supply chains and draw up plans to decarbonize their
operations. We believe our solutions and expertise within the agrifood supply chain can assist
companies in pursuing and reporting their sustainability strategies.

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● Producers,
packers, distributors and retailers understand that verification, identification and traceability
are key competitive differentiators. The January 2024 survey conducted by Coleman Parks for
the Global Food, Beverage and Agriculture Risk Report 2024 stated, “External economic
factors, geopolitical tensions, and regulatory burdens pose significant challenges to risk
management strategies. Oftentimes, our 3rd party verification and certification
expertise is necessary for export into international markets, including Korea, Russia, China
and the European Union.

REVENUES

We
offer a wide array of services, including verification, certification, consulting and other professional services, to help food producers,
brands and consumers differentiate certain attributes and production methods in the marketplace. We sell our services directly to customers
at various levels in the agriculture, food and livestock supply chain. Most of our service offerings can be bundled to provide a “one-stop
shop” for customers that have multiple levels of verification and certification needs, such as source verification and food safety
certification. Our customers include some of the largest U.S. beef and pork packers, organic producers and processors, and specialty
retail chains. No single customer generated more than 10% of the Company’s consolidated revenue in 2025 or 2024.

Verification
and Certification Revenue

Our
verification and certification service revenues consist of fees charged for verification audits and other verification and certification
related services 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. We are recognized and utilized by numerous
standard-setting bodies as an accredited verification or certification service provider. We enable food producers and brands to make
certain claims on live animals or packaged food products by verifying that they are meeting the standards or guidelines associated with
the claim(s) they are making. For the years ended December 31, 2025 and 2024, our third-party verification programs provided 80.8% and
79.8% of our total revenue, respectively.

Product
Sales

Our
product sales are an ancillary part of our verification and certification services and represent sales of cattle identification ear tags.
Our product sales allow us to offer our customers a comprehensive solution. Approximately 14.5% and 14.8% of our total revenue was generated
by the sale of product during the years ended December 31, 2025 and 2024, respectively.

Professional
Services Revenue

Professional
services include a wide range of professional consulting, data analysis, reporting and technology solutions that support our verification
business and generate incremental revenue specific to the food and agricultural industry.

MARKETING

Our
marketing strategy includes direct marketing, advertising, event sponsorship, and trade show participation. From a public relations perspective,
members of our staff are frequently quoted in industry trade journals and requested as speakers at various industry events as subject
matter experts on the topics of animal identification, traceability, branding, third-party verification and certification, and the USDA
verification programs.

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In
order to reach additional customers, we continually develop strategic marketing partnerships with leading companies in the industry with
complementary abilities and products. We do not currently rely on any third-party contracts with distributors, licensors or manufacturers
in conducting our business.

We
also use social media sites such as Facebook and X.com to help promote our business, market our product offerings, and connect consumers
with current topics in agriculture, livestock and food industries.

COMPETITION

The
competition for third-party verification services in the food and agriculture industry is growing more intense, especially within the
organic market. As of December 31, 2025, we estimate there are approximately eight key competitors serving the food and agricultural
industry, including Quality Assurance International, California Certified Organic Farmers, Oregon Tilth, Organic Crop Improvement Association,
Earth Claims, FoodChain ID, NSF International, SGS and SCS Global Services. Differentiation hinges upon understanding all facets of food
verification and the complex compliance challenges to make product verifications efficient, cost-effective, and seamless. Our core business
and expertise focus on the “on farm” verifications to a variety of standards, guidelines and criteria, including source verification,
natural, animal care and well-being, and sustainability verification.

SEASONALITY

Our
business is subject to seasonal fluctuations annually. Significant portions of our verification and certification service revenue is
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.

Additionally,
the cattle industry is cyclical by nature based on factors impacting current and future supplies such as drought-induced feedlot placements,
higher cow and heifer slaughter, and lower auction receipts. The production lags inherent to this industry lead to long-lasting impacts
of production decisions. For example, increased liquidation implies tighter supplies for next year. Similarly, times of herd expansion
are typically a multi-year period. Historically, these cycles typically lasted approximately 10 years. The beginning of 2025 marks the
eleventh year of the current cycle that began in 2014. We are currently in the contraction phase of the cycle after peaking in 2018-2019.
How long we continue to contract will be directly impacted by drought and pasture conditions.

INTELLECTUAL
PROPERTY

We
create, own and maintain a variety of intellectual property assets that we believe are among our most valuable assets. Our intellectual
property assets include our internally developed software, patents and patent applications related to our innovations, tradenames and
trademarks related to our brands, products and services, and other property rights. We also have licensing arrangements when features
from our programs are desirable to incorporate into either a new or an existing technology we offer. We seek to protect our intellectual
property right assets through patent, copyright, trade secret, trademark and other laws of the United States and other countries, and
through contractual provisions. Additional information regarding certain risks related to our intellectual property is included in Part
I, Item 1A “Risk Factors” of this Annual Report on Form 10-K.

EMPLOYEES

As
of December 31, 2025, we had 100 total employees, of which 89 were full-time employees. Approximately 84% of our workforce is comprised
of female and other minority employees. Our future success is substantially dependent upon the performance of our key senior management
personnel, as well as our ability to attract and retain highly qualified technical personnel. Additional information regarding certain
risks related to our employees is included in Part I, Item 1A “Risk Factors” of this Annual Report on Form 10-K.

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AVAILABLE
INFORMATION

Our
corporate website is located at www.wherefoodcomesfrom.com. We make available free of charge on our investor relations website under
“SEC Filings” our Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and any amendments
to those reports as soon as reasonably practicable after we electronically file or furnish such materials to the U.S. Securities and
Exchange Commission (the “SEC”). Further, a copy of this Annual Report on Form 10-K is located at the SEC’s Public
Reference Room at 100 F Street, NE, Room 1580, Washington, D.C. 20549. Information on the operation of the Public Reference Room can
be obtained by calling the SEC at 1-800-SEC-0330. The SEC maintains an Internet site that contains reports, proxy and information statements
and other information regarding our filings at http://www.sec.gov.

INFORMATION
ABOUT OUR EXECUTIVE OFFICERS

John
Saunders, 54, founded the Company in 1998 and has served as the Chief Executive Officer since then.
Mr. Saunders is also the Chairman of the Board of Directors of the Company and has served in this position since 1998. Previously, Mr.
Saunders was a partner and consultant for Pathfinder Consulting Services, Inc. in Parker, Colorado. An expert in both technology and
the livestock industry, Mr. Saunders is a graduate of Yale University.

Leann
Saunders, 55, began working for the Company in 2003 and has been the President of the Company since
2008. Mrs. Saunders is also a Director on our Board of Directors and has served in this position since January 2012. Prior to 2003, Mrs.
Saunders worked for PM Beef Holdings (“PM”), an integrated beef company, and developed a supply system for PM’s Ranch
to Retail product line and managed PM’s USDA Process Verified program. She then served as the company’s Vice President of
Marketing and Communications. Prior to joining PM in 1996, Mrs. Saunders worked for McDonald’s Corporation as a Purchasing Specialist,
and Hudson Foods Corporation. Mrs. Saunders graduated with a B.S. in Agriculture Business and an M.S. in Beef Industry Leadership from
Colorado State University. Mrs. Saunders currently sits on the Colorado State University Agriculture Dean’s Advisory Board, the
University of Nebraska’s Engler Agribusiness Entrepreneurship Program Advisory Board, the Board of Directors for the International
Stockmen’s Education Foundation and was the Chair for the United States Meat Export Federation for the 2015-2016 year.

Dannette
Henning, 56, has been the Chief Financial Officer of the Company since January 2008. Prior to her
appointment, she was engaged by the Company as a consultant beginning in November 2007. From 2004 to 2007, Mrs. Henning was the Corporate
Controller for Einstein Noah Restaurant Group. From 2001 to 2003, she served as the Controller for Vari-L Company. Mrs. Henning’s
previous experience includes financial management positions with KPMG Peat Marwick, DF&R Restaurant Company, and CSI/CDC Company.
Mrs. Henning is a Certified Public Accountant with more than 30 years of professional experience. She received a B.B.A. degree in Accounting
from the University of Texas at Arlington.

Jason
Franco, 49, has been the Chief Technology Officer of the Company since August 2021. Previously,
Mr. Franco served as Senior Vice President of Technology since September 2018 when WFCF acquired JVF Consulting, LLC, the consulting
firm Mr. Franco founded in 2004 serving as President. From 2000 to 2004, Mr. Franco worked as a technical application consultant and
integration specialist with Peoplesoft / Oracle. He began his career in 1998 as a software developer with John Deere Special Technologies
Group, where he specialized in traceability applications. He received his B.S. degree in Computer Science from the University of the
Pacific in Stockton, CA.

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Family
Relationships

John
Saunders, our CEO and Chairman of the Board, is married to Leann Saunders, our President. Both Mr. and Mrs. Saunders serve on our Board
of Directors.