Where Food Comes From, Inc. D.B.A. IMI Global, Inc. Headquarters: Castle Rock, Colorado OTCQB: WFCF February 2015.

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Where Food Comes From, Inc. D.B.A. IMI Global, Inc. Headquarters: Castle Rock, Colorado Trading symbol: OTCQB: WFCF.
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Presentation transcript:

Where Food Comes From, Inc. D.B.A. IMI Global, Inc. Headquarters: Castle Rock, Colorado OTCQB: WFCF February 2015

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

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

Company Overview #1 provider of third-party traceability and certification services to the food and agriculture industries Collect and leverage information on when, where, how and by whom food was raised 10,000+ customers: ranchers, auction barns, feed yards, dairies, packers, distributors, retailers, restaurants Customers include top tier players in food industry Recurring revenue model generating strong cash flows to support profitable organic growth and fund M&A program

2 Complementary Lines of Business Core Auditing Business On-site audits of ranches, farms, feed yards and packing plants Industry’s largest portfolio of auditing standards 10,000 customers & growing Recurring revenue model Organic and M&A growth WFCF Labeling Program Retailers and restaurants display label and QR code that gives consumers source info on food they purchase $.01 to $.03 per pound fees Initial customers: grocery, restaurant, food distribution $2.7B addressable market $100M addressable market

Verification Services Source and Age Non-Hormone Treated Beef (NHTC) High Quality Beef Quota Never Fed Beta Agonists USDA NeverEver3 Natural Beef USDA Grass-Fed Beef American Grass-Fed Alliance Vegetarian Fed Flax Fed SO100 Feed Claims Tyson Natural Global Animal Partnership™ Non-GMO Project Verification USDA NOP Organic Food Alliance™ Certification Progressive Beef™ Standard Verified Green™ Animal Welfare and Worker Care Audits FarmCheck™ Program Beef Quality Assurance Verified American Humane™ Certified Gluten Free Certification National Chicken Council Audits National Turkey Federation Audits Whole Foods® Egg Laying Hens Standards United Egg Producers Certified Safe Feed / Safe Food Program Hazard Analysis Critical Control Point Safe Quality Food (SFQ) On-Farm Security Audits Good Environmental Livestock Production Practices Pork for the European Union

Food Group Coverage Current Coverage Beef Pork Lamb Bison Poultry Produce Dairy Eggs Grain Future Coverage Seafood Beverages Produce

Our Customers

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 Major QSR and retail chains adopting traceability following food scandals USDA’s Animal Disease Traceability program will force 800,000 cattle producers to implement source audits in next few years 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

Market Drivers - Continued BSE – Mad Cow Disease E-coli Pink Slime Salmonella – Cantaloupes Swine flu Gestation crates Taco Bell meat content GMO labeling - CA Prop 37 European horse meat Humane handling scandals Health and wellness awareness Mislabeled seafood Expired meat in supply chain McDonald’s in China Expired meat scandal has “significant negative impact” on sales in Asia – will cost company 20 cents in EPS in third quarter. Tesco in Europe Britain’s largest retailer reports 4.6% sales decline in Europe following horsemeat scandal.

Non-GMO Opportunity GMO – Genetically Modified Organisms Non-GMO Project is largest industry group – committed to building non-GMO food supply with verified product choices 32 US states have some kind of GMO ballot initiative Whole Foods committed to mandatory GMO labeling by 2018 Where Food Comes From is one of only three non- GMO approved auditors nationally

Growth Strategy Cover more food groups that any other provider –Currently: beef, lamb, pork, poultry, dairy, eggs, produce, grain –Future: seafood, beverages, produce Offer solutions for ALL players in food supply chain –Feed and input providers, ranchers, producers, packers, auction barns, processors, distributors, retailers, consumers Expand on industry’s largest solutions portfolio –Currently auditing to 32 certification standards – most in industry Continue organic growth –Leverage ‘bundling’ capability to aggressively pursue new customers; sustain recurring revenue model, high retention rates Continue M&A growth –Expand footprint, add new services, food groups and revenue streams through selective acquisitions

M&A Activity - Auditing

M&A Results Summary 3,700 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 anticipated

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

Labeling Customers Heinen’s Fine Foods 19 stores in Ohio and Illinois Adopted WFCF labeling program for all products in meat case Labatt Food Service New Mexico Beef Native American Beef

Revenue Growth $1.1M $1.7 M $2.4M $2.7M $3.3M $4.2M $2M Note: To more accurately illustrate results from continuing operations, the financial data presented excludes CattleNetwork and CattleStore operations that were divested in $5.3M $8M $10M

Gross Profit $.7M $1.2M $1.3M $1.8M $2.3M $1.0M $2.8M $3.0M $2.7M $3.8M

SG&A as % of Revenue 192% 117% 60% 55% 44% 40% 150% 100% 50% 45% 39%

Adjusted EBITDA $1,470,000 $654,200 $67,700 $112,300 $442,900 $737,800 $0 $1.0M $601,700 ‘12

Balance Sheet Highlights As of December 31, 2014 Working capital: $3,380,700 Cash: $2,833,000 Long term debt: $16,200 Stockholders’ equity: $6,210,200

Selected Stock Data Traded – OTCQB: WFCF 52 week stock price range – $ $3.83 Average daily trading volume – 10,000 Common shares outstanding – 23,735,139 Approx. management/board ownership – 8,700,000 Market Cap – $77,000,000 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 February 2015.

Investment Considerations WFCF is the dominant verification industry player – in the right place at the right time with consumer demand for, and government interest in, increased information and transparency in the food chain at an all-time high Company executing on strategy to be one-stop-shop for all certification standards in all food groups Scalable recurring revenue model with large, growing customer base positions company for long-term profit growth Well capitalized company with tight share structure and accomplished management team and board that owns significant stake in Company WFCF is only publicly traded pure play in food verification and traceability industry

Where Food Comes From For more information, contact: Pfeiffer High Investor Relations, Inc. Jay Pfeiffer or