Where Food Comes From, Inc.

Where Food Comes From, Inc.

D.B.A. IMI Global, Inc.

Headquarters: Castle Rock, Colorado

Trading symbol: OTCQB: WFCF

Forward-Looking Statements

This presentation 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 presentation about financial performance, new business development, growth potential, market leadership, and the impact and potential of the Company’s products and services on the marketplace and customers 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 beef industry, the market for beef and other factors. 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.

Company Overview

• #1 provider of third-party certification services to the food and agricultural industries; 18 year track record

• Information company: collect & leverage information on when, where, how and by whom food was raised

• 10,000+ customers: ranchers, auction barns, feed yards, dairies, packers, retailers, restaurants

• Customers include top tier players in food industry• Recurring revenue model generating strong cash flows to

support profitable growth and fund M&A program

Our Customers

The Trend

“I’ve never seen a stronger desire for…..knowing where their food is coming from…”

-- Whole Foods CEO Walter Robb

“This trend of the global consumer really wanting to know where their food comes from…

-- McDonald’s VP Bob Langert

“Oprah explored the question on today’s show, ‘Do you know where your food comes from?’”

-- Examiner.com

Market Drivers

Growth strategy supported by long-term trends• Consumer demand for transparency due to food safety issues• Increasing consumer interest in humane handling, organic, gluten free,

antibiotic free, sustainable agriculture and other standards• Producers, packers, distributors and retailers view verification,

identification and traceability as key competitive differentiators• USDA’s Animal Disease Traceability program forcing all cattle producers to

comply with source and age verification standards• Mandatory verification, identification and traceability for key export

markets - Korea, Russia and the European Union• Technological advances, including RFID, are making verification,

identification and traceability solutions possible throughout the food chain continuum

Food Issues in the News

• BSE – Mad Cow Disease• E-coli• “Pink Slime”• Salmonella – Cantaloupes• Swine flu• Gestation crates• Taco Bell meat content• CA Proposition 37 – GMO labeling• European horse meat• Humane handling concerns• Health and wellness awareness• Mislabeled seafood

Business Strategy – Part 1

Become one-stop solution for:• All players in the food supply chain continuum:

feed and input providers, ranchers, producers, packers, auction barns, processors, distributors, retailers, consumers

• All food groups: beef, lamb, pork, poultry, produce, dairy, seafood, beverages

• All standards in food industry

Business Strategy – Part 2

4 Key Components• Grow customer base with high retention rates and

recurring revenue• Preserve and expand our competitive advantages

in products, solutions and customer service• Augment organic growth with selective

acquisitions• Establish Where Food Comes From as industry

standard solution for retail/consumer market

2 Lines of Business

Core Auditing Business• Auditors conduct on-site

audits of ranches, farms, feed yards and packing plants

• Verify a wide variety of credence claims

• Recurring revenue model• 10,000 customers &

growing• $100M addressable market

WFCF Labeling Program• Retailers and restaurants

display label and QR code that gives consumers info on food they purchase

• $.01 to $.03 per pound fees• 3 flagship customers in

grocery and restaurant• Heinen’s expanded to entire

meat case• $2.7B addressable market

Core Verification Services

• Source and Age Verification• Non-Hormone Treated Cattle• Pork for European Union• Verified Natural Beef™• Verified Green™• Verified Humane™• Verified Grassfed™• Farm Verified Organic• Non-GMO• Global Animal Partnership

• Never Fed Beta Agonists• Food Alliance• Flax Fed Verified• 100% Vegetarian Fed• EV Program Pork to Russia• Gluten Free• NOP Organic• United Egg Producers• National Dairy FARM Program• Where Food Comes From®

WFCF is the undisputed industry leader in the size and scope of its audit solutions portfolio

Audit Bundling Advantage

Certification in more than 20 auditing standards enables us to:• Cross train auditors in various standards• Offer customers one-stop-shop to eliminate audit

fatigue• 3 audits x $1,500 = $4,500• 1 audit x $3,500 = $3,500

Food Group Coverage

Today• Beef• Pork• Lamb• Poultry• Dairy• Eggs• Organic

Future• Seafood• Produce

Where Food Comes From®The addressable market for the Where Food Comes From labeling program is estimated by WFCF at $2.7 billion based on annual beef, pork and chicken production in the US.

Revenue Model

Retailers and distributors who carry products displaying the WFCF brand pay the Company in the following ways:

• Per pound royalties• License fees• Service fees• Web advertising fees

The Company launched its first major WFCF initiative with Heinen’s fine foods in Northern Ohio.

3 Initial Customers

Heinen’s Supermarkets Delmonico’s – New York

Anderson’s Restaurant Chain

Barriers to Entry

• 18 year head start on competition• Infrastructure, know-how, solutions portfolio, USDA

relationship, 10,000 customers, successful track record create significant barriers to entry and support long-term leadership status

• M&A program strengthening leadership position• New entry in industry would need 2 years of investment and

infrastructure creation before qualifying to conduct first audit

M&A Update

International Certification Services• Transaction in Q1 2012• 60% interest with remaining 40% scheduled for 2014• $350,000 cash, 173,000 shares• Farm Verified Organic, Certified Gluten Free, Non-GMO• 500 new customers• $1.0M in expected annual revenue

M&A Update #2

Validus Verification Services• Transaction in Q3 2013• 60% interest with remaining 40% expected in 2016• $565,000 cash, 709,000 shares• Pork, poultry and dairy – animal welfare, sustainability• 3,000 new customers• $1.4 million in expected annual revenue

M&A Update #3

Micro Technologies• Transaction in Q4 2013• Assume management of audits for division of MWI• 1,000 new customers• $600,000 in expected annual revenue

M&A Results

• 4,500 new customers• $3.0 million in additional annualized revenue• 6 new auditing standards• 4 new food groups• Further distance from competition• Lucrative, high margin services bundling• Additional M&A activity expected

Revenue Growth

2006 2007 2008 2009 2010 2011 2012

$4M

$5M

$1.1M

$1.7M

$2.4M$2.7M

$3.3M

$4.2M

$3M

$2M

$1M

Note: To more accurately illustrate results from continuing operations, the financial data presented excludes CattleNetwork and CattleStore operations that were divested in 2008.

30% CAGR since 2006

$5.3M$6M

Gross Profit

2006 2007 2008 2009 2010 2011 2012

$2.0M

$.7M

$1.2M$1.3M $1.3M

$1.8M

$2.3M

$1.0M

$2.8M$3.0M

SG&A as % of Revenue

2006 2007 2008 2009 2010 2011 2012

200% 192%

117%

60% 55%44% 40%

150%

100%

50% 45%

Adjusted EBITDA

$1.0M

2006 2007 20082009 2010 2011

$1,470,000

$654,200

$67,700

$112,300

$442,900

$737,800

$0

$1.0M

$601,700

2012

Balance Sheet Highlights

• Working capital: $1.5 million• Cash, cash equivalents: $1.0 million• Long term debt: $170,000• Stockholders’ equity: $3.9 million

Selected Stock Data

• Traded – OTCQB: WFCF• 52 week stock price range – $0.50 - $2.20• Average daily trading volume – 21,600• Common shares outstanding – 22,700,000• Management/board ownership – 11,500,000• Approximate float – 11,200,000• Market Cap – $42 million• Fiscal year – December 31

Note: Certain figures are rounded. Valuation and other data is subject to change on a daily basis and is presented as a general reference as of Q3, 2013.

Investment Considerations

• WFCF is the dominant verification industry player in the right place at the right time – consumer demand for food safety and origins has never been higher

• Executing on our strategy to be one-stop-shop for all certification standards in all food groups

• Gives us leverage with retailers and restaurants for labeling program

• Scalable recurring revenue model with large, growing customer base lends itself to long-term profitability growth

• Investors interested in this space must look at WFCF• Initial analyst coverage: Sidoti & Company• Close to qualification for NYSE MKT listing

Where Food Comes From®

OTCQB: WFCF