Treasurer’s Report 2023 - International Trademark Association

As I end my term as Treasurer, I am pleased to report that 2023 has been a successful year and that the Association is in sound financial standing.

For the prior 12 months ending September 30, 2023, assets and liabilities were $31.9 million. The change in assets of $8.7 million during the 12-month fiscal period is primarily due to an increase in our Reserve Fund balance of almost $1 million, resulting from positive market action. Additionally, the adoption of a new accounting policy at the end of 2022, related to the accounting for operating leases, had an impact of $8.0 million on both Assets and Liabilities. The Line of Credit outstanding balance is $1.9 million as of the end of September, down from $3.6 million one year ago. We expect to have the remaining balance paid off by mid-2024.

Revenues, both restricted and unrestricted, for the same 12-month period, were $22.0 million, and Expenses for the same period were $21.6 million.

Concerning Memberships, the number of memberships at the end of the fiscal period was 6,008 and at the end of the prior 12-month period 5,580, an increase of 429 members.

We maintained an overall 88 percent membership retention rate in 2023, added 1,245 new members and continue to have just over 6,000 members around the world. Our 2023 Membership Dues of $7.1 million continues to be a significant source of revenue for the Association.

The 2023 budget, adopted by the Board of Directors last November, projected a net profit (total revenue minus total expenses) of $53,000, which will be achieved; in fact, the forecast for 2023 is a net profit of $1.8 million. The primary variance was the results from the 2023 Singapore Annual Meeting which was budgeted to generate Net Revenue of $5.7 million but exceeded budget and generated net revenue of $7.1 million. Attendance for the Annual Meeting of just over 7,800 was higher than the budgeted 7,000.

Our Reserve Fund, which at the beginning of 2023 had a balance of $16.7 million, now has a balance of $17.5 million. We did not liquidate funds from the Reserve Fund in 2023 due to the strong cash flows generated by the Annual Meeting and Membership Dues. Additionally, we received $1.2 million from the U.S. Government, resulting from the Employee Retention Tax Credit, which is a refund resulting from INTA retaining staff throughout the pandemic as well as having significant revenue reductions during that period.

Our Association’s staff continued to demonstrate their ability to manage operating expenses during 2023. Total expenses for the Association forecasted to be $21.8 million are slightly higher than the original budget of $21.4 million. The expense variance was a result of higher interest expenses related to the Line of Credit as well as higher credit card transaction fees, which resulted from higher revenue generated by Annual Meeting registrations and Member Dues.

New revenue streams continue to be a focus for the Association staff and as you will hear during today’s budget presentation. These new revenue streams will continue to contribute to the Association’s revenue budget in 2024.

The 2024 budget, which will be presented to the Board of Directors meeting today, will reflect Membership retention of 87%, which is consistent with recent prior years’ results. Three budget scenarios for the Annual Meeting will be presented to the Board, each reflecting various registrant scenarios.

We continue to invest in the Association regarding legal resources, and public policy and advocacy. INTA’s representative office’s staff total nine, with estimated expenses of approximately $2.0 million. Staff in Europe, Latin America, China, and Asia Pacific continue their advocacy, membership development, and communications. Our Washington, D.C., area office will continue to enhance our presence and effectiveness in Washington, with the support of staff supplemented by expert lobbying and consulting support. We continue to be well served by our consultants in Delhi and the Africa Middle East regions. Underlying all these activities is the dedication to growing our membership base globally, and consistently enhancing our member benefits.

2024 will prove to be a very exciting time and an important year for INTA as we expect to continue to see a return to normalcy although considering global uncertainty. As Treasurer, it has been an honor to work with the Officers, Committee Members, the general membership, the staff, and the Chief Executive Officer, and I am confident in the continuing progress and growth of our Association.

Although every effort has been made to verify the accuracy of this article, readers are urged to check independently on matters of specific concern or interest.