Where Food Comes From says lease control fixed
Amended Q1 2026 Form 10-Q updates WFCF’s internal control disclosure to reflect remediation of a prior lease-accounting material weakness.
Rhea-AI Filing Summary
Where Food Comes From, Inc. (WFCF) filed an amended quarterly report for the period ended March 31, 2026 to revise the description of Item 4, Controls and Procedures. The company clarifies that a previously identified material weakness in internal control over financial reporting related to the application of FASB ASC 842 (Leases) for the year ended December 31, 2025 had been remediated before those financial statements were released.
Management reports that disclosure controls and procedures were effective as of March 31, 2026, and that the material weakness was fully remediated by properly applying ASC 842 and testing the related remedial measures. The amendment does not change the financial statements or other disclosures from the original Form 10-Q, and adds only updated control disclosures and new Section 302 officer certifications.
Positive
- Company reports that the prior material weakness in internal control over financial reporting related to FASB ASC 842 was fully remediated as of March 31, 2026 and that disclosure controls and procedures were effective for the quarter.
Negative
- Management and the independent auditor previously identified a material weakness in internal control over financial reporting tied to improper application of FASB ASC 842 (Leases), which caused a material overstatement of right-of-use assets and other income for 2025 before remediation.
Key Figures
Common shares outstanding: 5,039,276 shares
Par value per common share: $0.001 per share
Commission File Number: 001-40314
3 metrics
Common shares outstanding
5,039,276 shares
Outstanding as of May 7, 2026
Par value per common share
$0.001 per share
Par value of WFCF common stock
Commission File Number
001-40314
SEC registration reference for WFCF
Key Terms
material weakness, internal control over financial reporting, disclosure controls and procedures, FASB ASC 842 (Leases), +1 more
5 terms
material weakness financial
"identified a material weakness in our internal control over financial reporting"
A material weakness is a significant flaw in the systems and checks a company uses to ensure its financial reports are accurate, meaning errors or fraud could happen and not be caught. For investors it matters because it raises the risk that reported results are unreliable—similar to finding a hole in a ship’s hull—potentially leading to corrected financials, regulatory action, reduced trust, and negative effects on stock value and borrowing costs.
internal control over financial reporting financial
"a material weakness in our internal control over financial reporting"
Internal control over financial reporting is a company’s system of procedures and checks designed to make sure its financial statements are accurate and complete, like a set of guardrails and verification steps that catch mistakes or fraud before numbers are published. Investors care because strong controls make reported results more trustworthy, lower the risk of surprise restatements or regulatory problems, and give greater confidence when valuing the company or comparing it to peers.
disclosure controls and procedures financial
"evaluation of the effectiveness of the design and operation of our disclosure controls and procedures"
Policies, routines and internal checks a public company uses to identify, collect and verify information that must appear in its financial reports and public filings, and to make sure that material news is disclosed accurately and on time. Investors care because effective controls increase confidence that the company’s reported numbers and disclosures are reliable and reduce the risk of surprises, much like a building’s inspection and alarm system helps occupants trust the structure’s safety.
FASB ASC 842 (Leases) financial
"improper application of FASB ASC 842 (Leases)"
Section 302 of the Sarbanes-Oxley Act of 2002 regulatory
"new certifications pursuant to Section 302 of the Sarbanes-Oxley Act of 2002"
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
What is the purpose of Where Food Comes From, Inc. (WFCF) filing this Form 10-Q/A?
The amendment is filed solely to replace Item 4, Controls and Procedures, to properly describe remediation of a prior material weakness and to include updated Section 302 officer certifications. It does not change the previously filed consolidated financial statements or other disclosures.
What material weakness did WFCF disclose in relation to its 2025 financial reporting?
Management and the independent registered public accounting firm identified a material weakness in internal control over financial reporting involving improper application of FASB ASC 842 (Leases). This led to a material overstatement of right-of-use assets and other income for the year ended December 31, 2025 before correction.
How did WFCF remediate the material weakness in its lease accounting controls?
Management remediated the weakness by properly applying FASB ASC 842 before releasing the 2025 financial statements and by performing additional analysis and procedures for the quarter ended March 31, 2026. Management concluded the remedial measures operated effectively for a sufficient period of time.
Are WFCF’s disclosure controls and procedures considered effective as of March 31, 2026?
Yes. Based on management’s evaluation, the principal executive and financial officers concluded that disclosure controls and procedures were effective as of March 31, 2026, and that the financial statements fairly present the company’s financial condition, results of operations, and cash flows in all material respects.
Does this WFCF Form 10-Q/A change any of the previously reported Q1 2026 financial results?
No. The company states that, except for updating Item 4 and adding new Section 302 certifications, no other changes are being made to the original Form 10-Q, including the consolidated financial statements and related footnotes for the quarter ended March 31, 2026.
AI-generated analysis. How Rhea-AI works. Not financial advice.
