Where  Food  Comes  From®,  Inc.  

MicroCapClub  Presenta2on  January  3,  2013  

Where  Food  Comes  From,  Inc.  

D.B.A.  IMI  Global,  Inc.  OTCQB:  WFCF  

     Forward-­‐Looking  Statements  

 This  presentaNon  contains  "forward-­‐looking  statements"  within  the  meaning  of  the  U.S.  Private  SecuriNes  LiNgaNon  Reform  Act  of  1995,  based  on  current  expectaNons,  esNmates  and  projecNons  that  are  subject  to  risk.    Forward-­‐looking  statements  are  inherently  uncertain,  and  actual  events  could  differ  materially  from  the  Company’s  predicNons.    Important  factors  that  could  cause  actual  events  to  vary  from  predicNons  include  those  discussed  in  our  SEC  filings.    Specifically,  statements  in  this  presentaNon  about  financial  performance,  new  business  development,  growth  potenNal,  market  leadership,  and  the  impact  and  potenNal  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;  compeNNon,  governmental  regulaNon  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  obligaNon  to  update  its  forward-­‐looking  statements  to  reflect  new  informaNon  or  developments.    For  a  more  extensive  discussion  of  the  Company’s  business,  please  refer  to  the  Company’s  SEC  filings  at  www.sec.gov.  

People  are  asking…                                    ”Where  does  my  food  come  from?”  

 “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  wanNng  to  know  where  their  food  comes  from…  

                   -­‐-­‐  McDonald’s  VP  Bob  Langert  

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

                   -­‐-­‐  Examiner.com  

     What’s  driving  this  trend?  

•  Food  Animal  Disease  and  Food  Safety  –  BSE  (Mad  Cow),  E-­‐coli,  Salmonella,  Foot  and  Mouth  Disease  (FMD)  

•  Truth  in  Labeling  –  Taco  Bell  Beef?,  “Pink  Slime”,  AnNbioNc  and  Hormone  Free  

•  RegulaNon  –  Food  Safety  ModernizaNon  Act,  GMO  Labeling  (CA  Prop  37),  

InternaNonal  Trade  (Free  Trade  Agreements),  Childhood  Obesity    

•  “Local”,  “Ethical”  and  “Sustainable”  Food  ProducNon  –  Family  Vs  Factory  Farms,  Omnivores  Dilemma,  Jamie  Oliver’s  Food  

RevoluNon,  Animal  Rights  Movements  (PETA),  Fair  Trade  CerNfied  

     The  SoluNon  

That’s  a  great  idea  for  a  startup  business…not  quite.  …this  is  17  years  in  the  making.  

•  #1  provider  of  third-­‐party  cerNficaNon  services  to  the  food  and  agricultural  industries  

•  6,000+  customers:  ranchers,  feed  yards,  packers,  retailers,  restaurants

•  USVerified™  brand  industry  standard  for  USDA  PVP  programs  •  Verify  markeNng  claims  for  half  of  all  U.S.  beef  exports  •  Recurring  revenue  model  generaNng  strong  cash  flows  to  support  growth  

Infrastructure,  know-­‐how,  solu3ons  por5olio,  USDA  rela3onship,  track  record  and  large  customer  base  create  significant  barriers  to  entry  and  support  long-­‐term  leadership  status  

     Core  VerificaNon  Services  

•  USVerified™  source  and  age  verifica2on  –  USDA  approved  program  addresses  country  of  origin  labeling  and  overseas  export  requirements  

•  Non-­‐Hormone  Treated  CaLle  (NHTC)  verifica2on  –  USDA  approved  program  verifies  hormone  free  claims  and  qualify  caple  for  export  to  European  Union  

•  Pork  for  European  Union  (PFEU)  –  USDA  approved  program  verifies  hormone  free  claims  and  qualify  pork  for  export  to  European  Union  

•  Verified  Natural  Beef™  –  USDA  approved  program  confirms  all-­‐natural  claims  and  USDA’s  NeverEver3  compliance  

•  Verified  Green™  –  Verifies  and  promotes  producers  pracNcing  sustainable  agriculture  

•  Verified  Humane™  –  Verifies  humane  handling  claims  

•  Verified  Grassfed™  –  Verifies  caple  raised  strictly  on  grass  diet  •  Farm  Verified  Organic,  NOP  Organic  •  Verified  Gluten  Free  

•  Where  Food  Comes  From®  –  New  retail  product  labeling  program    

     WFCF  Customers  

• Customers include retailers, restaurants, food distributors, meatpackers, feed yards and auction barns

• The company also provides products and services to more than 6,000 farms and ranches

High  Customer  RetenNon  

0  

1000  

2000  

3000  

4000  

5000  

6000  

7000  

2005   2006   2007   2008   2009   2010   2011  

New  Customers  

Repeat  Customers  

90% plus retention rate for USDA Process Verified Programs

Total Customers

     WFCF  Product  Launch  

Iden2fied  THREE  primary  target  customer  types  –  High  End  Retailer  

–  Regional  Family  Style  Chain  –  White  Table  Cloth  Restaurant  

M a i n C o u r s eG r i l l e d M e a t

D e l m o n i c o s S t e a kVintage All Natural Boneless Rib Eye

46

P r i m e N e w Y o r k S t r i pVintage All Natural Dry Aged Sirloin Strip

45

D o u b l e P o r t e r h o u s eVintage All Natural Dry Aged Short Loin Steak

95

D e l m o n i c o D o u b l e R i b C h o p “ J o h n K r u p a ”Vintage All Natural Dry Aged, Three Pound Bone In Rib Eye

95

F i l e t M i g n o nVintage All Natural Tenderloin Steak

45

S t e a k S t y l e O s c a r A u P o i v r e S u r f F o r T u r f21 8 19

S i d e s

G a r l i c – H e r b W h i p p e d P o t a t o e s 9

F r e n c h F r i e s, S p i c y M a y o 8

H a s h B r o w n s 9

D e l m o n i c o P o t a t o e s “S U M M E R “ 12

M a r k e t C a r r o t s, P e a s, C i p o l l i n i 10

C r e a m e d S p in a c h 10

F o r a g e d M u s h r o o m s 14

G r i l l e d A s p a r a g u s 14

K i n g C r a b M a c a r o n i & C h e e s e 18

S p a e t z l e 8

L o c a l G r e e n s, S w e e t C o r n, P o r k B e l l y 12

Heinen’s  Supermarket  

Heinen’s Fine Foods is a leading specialty grocer – family owned, 83 years old

18 high-end stores in Ohio and Illinois

www.wherefoodcomesfrom.com/heinens

Anderson’s  Frozen  Custard  

Anderson’s Frozen Custard becomes first regional restaurant chain to adopt Where Food Comes From

•  May 2012 rollout in 7 restaurants

•  Patrons can access information on select farms and families that raised Anderson’s all natural beef

Delmonico’s  Steak  House  -­‐  NY  

NY’s oldest steakhouse and one of America’s most renowned restaurants

What  do  shoppers  think  about  WFCF?  

February  2012  market  research  highlights:  94.5%  of  respondents  reacted  posiNvely  to  WFCF  labeling  

51%  of  respondents  “definitely  more  likely”  to  purchase  product  with  WFCF  brand  

     WFCF  Revenue  Model  

Recurring  Revenue  Model  

Retailers, distributors and restaurants who carry products displaying the WFCF brand pay us in the following ways:

•  License fees •  Per pound royalties

Customer for life mentality

     Market  Opportunity  

Very  Hard  to  Define  

Consider  these  facts…each  year  in  the  US  there    are:  

1.   Over  30  Billion  lbs  of  Beef  produced  

2.   Over  25  Billion  lbs  of  Pork  produced  

3.   Over  30  Billion  lbs  of  Chicken  produced  

Based  on  our  per  pound  model  alone,  the  addressable  market  for  the  Where  Food  Comes  From  labeling  program  for  these  three  meat  products  is  es3mated  at  $2.7  billion  

     Business  Strategy  

Our  goal  is  to  be  the  leading  provider  of  third-­‐party  verifica2on,  iden2fica2on  and  traceability  solu2ons  to  the  food  and  agriculture  industries  

Our  strategy  for  accomplishing  this  includes:  •   SoluNons  for  enNre  food  supply  chain  conNnuum,  including  feed  and  input  providers,  ranchers,  producers,  packers,  aucNon  barns,  processors,  distributors,  retailers  and  consumers  •   SoluNons  for  all  food  groups:  beef,  pork,  poultry,  produce,  dairy,  seafood,  beverages  •   Grow  our  large  and  diversified  customer  base  with  high  retenNon  rates  and  recurring  revenue  •   Preserve  and  expand  our  compeNNve  advantages  in  products,  soluNons  and  customer  service  •   Establish  Where  Food  Comes  From  as  industry  standard  soluNon  for  retail/consumer  market  •   Augment  organic  growth  with  select  acquisiNons  

     M&A  OpportuniNes  –  ICS,  Inc.  

In  Q1  2012  we  purchased  60%  of  the  outstanding  shares  of  Interna2onal  Cer2fica2on  Services  (ICS)  –  a  leader  in  organic  and  gluten  free  cer2fica2on  

Terms:  $350,000  cash,  172,840  shares  of  common  stock;  non-­‐diluNon  provisions;  right  of  first  refusal  on  remaining  40%.  

ICS  solu2ons:  

Farm  Verified  Organic;  CerNfied  Gluten  Free  

Synergies:  

Leaders  in  respecNve  fields;  broadens  soluNons  poryolio;  cross  markeNng  to  disNnct  customer  bases.  

Economic  impact:  

ICS  unaudited  2011  revenue  of  $1.0M;  60%  ICS  revenue/expense  accrues  to  WFCF.  

Revenue  Growth  

2006   2007   2008   2009   2010   2011  

$4M  

$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

Adjusted  EBITDA  

$1.0M  

2006   2007   2008  2009   2010   2011  

$1,470,000

$654,200

$67,700

$112,300

$442,900

$737,800

$0  

$1.0M  

2012  Year  To  Date  Highlights  

•  Q3  revenue  up  24%  to  $1.5  million  from  $1.3  million  

•  11th  straight  profitable  quarter  •  Nine-­‐month  revenue  up  24%  to  $4.0  million  from  $3.2  million  

•  Nine-­‐month  net  income  of  $730,200  versus  $558,300  year  over  year  

SG&A  as  %  of  Revenue  

2006   2007   2008   2009   2010   2011  

200%   192%

117%

60% 55% 44% 40%

150%  

100%  

50%  

 Balance  Sheet  Highlights  

•  Working  capital  of  $1.6  million  

•  Cash/cash  equivalents  &  short-­‐term  investments  of  $1.4  million  

•  Stockholders’  equity  of  $2.1  million  

As of September 30, 2012.

Management  Team  

John  Saunders  Chief  Execu2ve  Officer  and  Chairman  of  the  Board  

•  Founded  IMI  Global  in  1995;  deep  background  in  livestock/agricultural  industry  

•  BA  History,  BS  Environmental  Studies  –  Yale  University  

Leann  Saunders  President  

•  BS  Agriculture  Business,  MS  Beef  Industry  Leadership  –  Colorado  State  University  

•  McDonald’s  Corp.,  PM  Beef  Holdings,  Hudson  Foods  Corp.  

DanneLe  Henning  Chief  Financial  Officer,  Accoun2ng  Officer,  SEC  Compliance  

•  CerNfied  Public  Accountant  

•  Einstein  Noah  Restaurant  Group,  Sirenza  Microdevices,  Peat  Marwick  

Board  of  Directors  

John  Saunders  -­‐  Chairman  of  the  Board  

Leann  Saunders  -­‐  President  

Dr.  Gary  Smith,  PhD  •   Dept.  of  Animal  Science,  Colorado  State  Univ.  –  Ken  &  Myra  Monfort  endowed  chair,  meat  science  

•   PhD  Meat  Science  &  Muscle  Biology,  Texas  A&M;  Professor,  Washington  State  Univ.  &  Texas  A&M  

•   Instructor,  FSIS-­‐USDA  NaNonal  Meat  InspecNon  Training  Center  Pete  Lapaseotes  •   Co-­‐manager  Lapaseotes  family  farm  and  feeding  operaNon;  partner  in  five  John  Deere  dealerships  

•   Partner,  11  The  MercanNle  Farm,  Ranch  &  Home  retail  stores;  board  member,  Valley  Bank  &  Trust  

Adam  Larson  •   Member  and  manager  of  eight  caple  ranching  and  caple  feeding  operaNons  

•   Member  and  manager  of  caple  financing  company;  University  of  Colorado  

Robert  Van  Schoick  II  •   President  of  Med-­‐Pharmex  Animal  Health;  sales  and  markeNng  execuNve  of  Merck  &  Co.  

•   Merial  Merck  animal  health  joint  venture;  BA,  MA  AusNn  College,  BS  Animal  Science  Texas  A&M  

     Selected  Stock  Data  

•  Traded  –  OTCQB:  WFCF  

•  52  week  stock  price  range  –  $0.13  -­‐  $1.55  •  Average  daily  trading  volume  –  15,000  

•  Weighted  average  shares  outstanding  (diluted)  –  21,000,000  •  Management/board  ownership  –  11,500,000  

•  Approximate  float  –  9,300,000  

•  Market  Cap  –  $25  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, 2012. Investors are encouraged to read the Company’s SEC filings.

     Investment  Highlights  

•  Recurring  revenue  model  with  solid  track  record  of  profitable  growth  

•  Strong  balance  sheet  –  minimal  long-­‐term  debt  •  Where  Food  Comes  From  has  significant  upside  

•  Scalable  playorm  can  support  much  larger  revenue  stream  •  Expanding  market  opportunity  supported  by  long-­‐term  trends  

•  Organic  and  M&A  growth  opportuniNes  •  Management/Board  own  55%  of  outstanding  shares  

     Where  Food  Comes  From®  

OTCQB: WFCF