Revenue and Income - Service revenues increased by 2.3% to 17.18 million in 2023, primarily due to increased commissions from model bookings[67][68] - Total revenues rose to 17.21 million in 2023, reflecting a growth of 2.3%[67] - Net income rose to 0.43 million in 2023, driven by increased interest income[80] - Gross billings increased by 2.0% to 65.94 million in 2023, attributed to higher Core model bookings[81] Expenses and Costs - Salaries and service costs increased by 5.7% to 11.48 million in 2023, mainly due to personnel hires and payroll adjustments[70] - Corporate overhead expenses decreased by 8.8% to 0.97 million in 2023, due to cost savings from auditor changes[73] Profitability Metrics - Operating income decreased slightly to 0.87 million in 2024, up from 8.5 million at December 31, 2024, from $6.1 million at December 31, 2023, primarily due to net cash provided by operating activities[82] - Cash and cash equivalents include cash on hand and short-term investments with maturities of three months or less[103] Taxation - The effective tax rate increased to 40.2% in 2024 from 37.3% in 2023, reflecting higher tax expenses[78] - The company is subject to income taxes in multiple jurisdictions, including the United States and the United Kingdom[100] Revenue Recognition and Accounting Policies - The company recognizes revenue when performance obligations are satisfied, typically on the day of the event, with fees agreed in advance[96] - Service revenues are reported on a net basis, reflecting gross amounts billed minus amounts owed to talent and related costs[97] - Accounts receivable are recorded at gross amounts billed to customers, leading to large balances relative to total revenue[98] - Share-based compensation expense is estimated at grant date and recognized over the requisite service period, influenced by stock price and various assumptions[99] - Deferred tax assets are recognized for unused tax losses and credits, with a valuation allowance established if future taxable income is uncertain[101] - The company performs annual impairment testing for goodwill and intangible assets, recognizing losses if carrying amounts exceed fair values[107] - Indefinite lived intangible assets are evaluated for impairment using the relief from royalty method, requiring various assumptions about future revenues and rates[109] - The company maintains an allowance for doubtful accounts to account for estimated losses from uncollectible accounts receivable[105]
Wilhelmina(WHLM) - 2024 Q4 - Annual Report