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Where Food Comes From(R), Inc. Reports 34% Revenue Increase in First Quarter of 2014

CASTLE ROCK, CO -- (Marketwired) -- 05/05/14 -- Where Food Comes From, Inc. (d.b.a. IMI Global, Inc.) (OTCQB: WFCF), the trusted resource for third-party verification of food production practices, today announced financial results for its first quarter ended March 31, 2014.

Revenue in the first quarter was $1,376,400, up 34% from $1,025,500 in the first quarter last year. The growth was due to an increase in the number of customers using the Company's verification services, which more than offset lower-than-expected revenue associated with pork audits resulting from the Porcine Epidemic Diarrhea Virus (PEDV). Verification services revenue increased 41% to $1,205,200 in the first quarter from $853,600 in the same quarter last year. Hardware revenue consisting of cattle ear tags increased 5% to $135,400 from $129,000 year over year. Labeling revenue declined 16% year-over-year to $35,800 from $42,900.

Gross profit in the first quarter was $557,500, or 41% of revenue, up slightly from gross profit of $533,800, or 52% or revenue, in the first quarter last year. Selling, general and administrative expenses in the first quarter increased to $831,200 from $625,500 in the same quarter last year due primarily to absorption of a full quarter of overhead from the Validus subsidiary, which was acquired in the third quarter of 2013.

Net loss attributable to Where Food Comes From, Inc. in the first quarter was $133,600, or $0.01 per share, compared with net loss of $58,400, or less than $0.01 cent per share, in the same quarter a year ago. The 2014 net loss was substantially attributable to lower-than-expected revenue due to the aforementioned PEDV issue.

"We followed a strong fourth quarter with continued revenue growth momentum in the first quarter of 2014," said John Saunders, chairman and CEO. "This growth reflects the successful execution of an M&A strategy designed to increase the size and scope of our solutions portfolio while mitigating risk associated with changing market dynamics such as Japan's easing of import regulations in 2013, which resulted in a significant decline in Japanese age and source verification revenue in 2013. It is also worth noting that first quarter revenue growth -- as well as profitability -- was adversely impacted by the USDA's decision to discourage on-farm pork audits until the Porcine Epidemic Diarrhea Virus subsides in order to reduce the risk of spread. We believe we will eventually resume on-farm pork audits once the PEDV situation resolves."

Conference Call
The Company will conduct a conference call on Monday, May 5, 2014, at 10:00 a.m. Mountain Time.

Call-in numbers for the conference call:
Domestic Toll Free: 1-877-941-6009
International: 1-480-629-9819
Conference ID: 4681760

Phone replay:
A telephone replay of the conference call will be available through June 5, 2014, as follows:
Domestic Toll Free: 1-800-406-7325
International: 1-303-590-3030
Conference Code: 4681760

About Where Food Comes From, Inc.
Where Food Comes From, Inc. (d.b.a. IMI Global) is America's trusted resource for third party verification of food production practices. The Company supports more than 10,000 farmers, ranchers, processors, retailers and restaurants with a wide variety of value-added services through its IMI Global, International Certification Services, and Validus Verification Services units. In addition, the Company's Where Food Comes From® retail and restaurant labeling program utilizes the verification of product attributes to connect consumers to the sources of the food they purchase through product labeling and web-based information sharing and education. Go to 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 industry leadership; the ability of the Company's M&A strategy to mitigate market risks, expectations to resume pork audits, 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 and twelve-month period 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 Loss
(unaudited)
                                                    Three Months Ended
                                                         March 31,
                                                    2014           2013
                                               -------------  -------------

Revenues
  Service revenues                             $   1,205,173  $     853,606
  Product sales                                      135,420        129,009
  Other revenues                                      35,833         42,888
                                               -------------  -------------
    Total revenues                                 1,376,426      1,025,503
                                               -------------  -------------
Costs of revenues
  Labor and other costs of services                  717,171        405,792
  Costs of products                                  101,709         85,889
                                               -------------  -------------
    Total costs of revenues                          818,880        491,681
                                               -------------  -------------
Gross profit                                         557,546        533,822
Selling, general and administrative expenses         831,154        625,515
                                               -------------  -------------
Loss from operations                                (273,608)       (91,693)
Other expense (income):
  Interest expense                                     2,823          6,779
  Other income, net                                     (778)          (447)
                                               -------------  -------------
Loss before income taxes                            (275,653)       (98,025)
Income tax benefit                                   (78,368)       (34,288)
                                               -------------  -------------
Net loss                                            (197,285)       (63,737)
Net loss attributable to non-controlling
 interest                                             63,657          5,354
                                               -------------  -------------
Net loss attributable to Where Food Comes
 From, Inc.                                    $    (133,628) $     (58,383)
                                               =============  =============
Net loss per share:
  Basic                                        $       (0.01) $           *
                                               =============  =============
  Diluted                                      $       (0.01) $           *
                                               =============  =============
Weighted average number of common shares
 outstanding:
  Basic                                           22,692,859     21,439,355
                                               =============  =============
  Diluted                                         22,692,859     21,439,355
                                               =============  =============

* less than a penny ($0.01) per share


Where Food Comes From, Inc.
Balance Sheets

                                                 March 31,     December 31,
                                                    2014           2013
                                               -------------  -------------
ASSETS                                          (Unaudited)
Current Assets:
  Cash and cash equivalents                    $     876,601  $   1,067,537
  Accounts receivable, net                           570,680        683,800
  Prepaid expenses and other current assets          123,108        143,576
  Deferred tax assets                                190,184        190,184
                                               -------------  -------------
    Total current assets                           1,760,573      2,085,097
Property and equipment, net                          244,671        253,206
Intangible and other assets, net                   1,751,074      1,716,115
Goodwill                                           1,279,762      1,279,762
Long-term deferred tax assets                        558,662        480,294
                                               -------------  -------------
Total assets                                   $   5,594,742  $   5,814,474
                                               =============  =============

LIABILITIES AND EQUITY
Current liabilities:
  Accounts payable                             $     285,399  $     277,633
  Accrued expenses and other current
   liabilities                                        47,385         56,091
  Customer deposits                                   53,686         39,134
  Deferred revenue                                   290,280        149,660
  Short-term debt and current portion of notes
   payable                                            25,132         24,782
  Current portion of capital lease obligations         4,228          4,173
                                               -------------  -------------
    Total current liabilities                        706,110        551,473
Capital lease obligations, net of current
 portion                                               9,730         10,808
Notes payable and other long-term debt, net of
 current portion                                     159,302        165,755
                                               -------------  -------------
Total liabilities                                    875,142        728,036
Contingently redeemable non-controlling
 interest                                            942,222      1,018,396
Equity:
  Common stock                                        23,240         23,233
  Additional paid-in capital                       5,359,715      5,216,327
  Treasury stock                                    (150,849)      (150,849)
  Accumulated deficit                             (1,454,728)    (1,321,100)
                                               -------------  -------------
    Total Where Food Comes From, Inc. equity       3,777,378      3,767,611
    Non-controlling interest                               -        300,431
                                               -------------  -------------
Total equity                                       3,777,378      4,068,042
                                               -------------  -------------
Total liabilities and equity                   $   5,594,742  $   5,814,474
                                               =============  =============

Company Contacts:

John Saunders
Chief Executive Officer
303-895-3002

Jay Pfeiffer
Pfeiffer High Investor Relations, Inc.
303-393-7044

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