2023 Financial Report
Hey, we made a profit this past year!
The numbers are in for 2023 and they are good. I want to stress that these numbers are all being reported on a cash basis - so these numbers include income for games not yet delivered (The Halls of Montezuma Kickstarter and ~200 website pre-orders) and it includes expenses paid to our manufacturer for games not yet received. We also use a rather expansive definition of “Cost of Goods Sold” for internal accounting.
The bulk of our income was for selling a bit over 4000 of our own games - The Shores of Tripoli, The Halls of Montezuma and Votes for Women. I also sold off my Heroscape collection (FCI-9997) and a portion my personal game library (FCI-9999). But there are two new lines of revenue for the company - ticket sales to Circle DC (our annual convention) and international licensing of our games. Circle DC 2023 roughly broke even - more on that in a later post - but international licensing is something we are quite optimistic about. Our first foray is with Devir Games licensing Votes for Women for a Spanish-language printing. The upfront fee was €3000 ($3185), with annual royalties paid in the future. Now just if someone would publish Votes for Women in German!
Our top ten customers for 2023 was an interesting mix. Our Amazon and Shopify income would have been significantly higher had we not run out of stock of Votes for Women in September. The Kickstarter income was for the campaign for The Halls of Montezuma (delivering in Spring 2024). The All Things Heroscape, Circle DC and Devir Iberia income is pretty self explanatory. Spiral Galaxy (UK distributor), Labyrinth Game Shop (US retailer), BNW Distribution (EU distributor) and Board Game Bliss (Canada retailer) represent our largest distributor/retailer partners. We would love to find a good distribution partner for both Australia and Canada, but we are avoiding distribution in the United States for a variety of reasons - perhaps the topic of a future post.
Our overall profit and loss is still heavily weighted on the loss side, but I think this is the year that we turn to overall net profitability of the firm. The 2024 targets are 20,000 games sold, $1.1M income, $400,000 in gross profit and $250,000 in net income. Astute observers will note that $400,000 in gross profit divided by 20,000 games is AGPPU (Average Gross Profit Per Unit) of $20. The only real concern is cash flow - it would certainly be nice to have an extra $100,000 in the bank to hit our targets.
Best wishes for 2024!
UPDATED NUMBERS (February 20, 2024 update)
After a discussion with my accountant, we realized that ~$46,000 in costs of goods sold should have been in December 2023, not January 2024, so here are the updated numbers. I just don’t want anyone to be surprised when I post the 2024 numbers that this change occurred.
Thank you for the update! What are included in your expenses if you don't mind sharing?