What was the balance of contract liabilities for 1 800 Packouts as of December 31, 2024?
1_800_Packouts Franchise · 2025 FDDAnswer from 2025 FDD Document
expressing an opinion on the\neffectiveness of the Company's internal control. Accordingly, no such opinion is expressed.
- Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.
- Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the Company's ability to continue as a going concern for a reasonable period of time.
We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control related matters that we identified during the audit.
Tanner LLC
April 30, 2023
| As of December 3: | ||||
|---|---|---|---|---|
| 2022 | 2021 | |||
| Assets | ||||
| Current assets: | ||||
| Cash | $ | 3,760,121 | $ | 1,614,389 |
| Restricted cash | 543,616 | 439,024 | ||
| Accounts receivable, net of an allowance for doubtful accounts | ||||
| of $58,660 and $32,710, respectively | 2,360,599 | 907,535 | ||
| Current portion of contract assets | 1,350,919 | 169,463 | ||
| Prepaid and other current assets | 792,682 | 33,886 | ||
| Total current assets | 8,807,937 | 3,164,297 | ||
| Goodwill, net | 63,918,327 | 39,262,725 | ||
| Intangible assets, net | 54,137,918 | 33,635,333 | ||
| Investment in unconsolidated subsidiary | - | 597,537 | ||
| Contract assets, net of current portion | 9,616,933 | 379,746 | ||
| Operating lease right-of-use asset | 1,153,787 | - | ||
| Other assets | _ | 703,934 | 293,037 | |
| Total assets | $ | 138,338,836 | $ | 77,332,675 |
| Liabilities and Members' Equity | ||||
| Current liabilities: | ||||
| Accounts payable | 602,708 | $ | 333,610 | |
Source: Item 23 — RECEIPT (FDD pages 67–238)
What This Means (2025 FDD)
According to 1 800 Packouts' 2025 Franchise Disclosure Document, the balance of contract liabilities as of December 31, 2024, is not explicitly detailed. However, the document does provide information on current and non-current portions of contract liabilities as of December 31, 2022.
Specifically, as of December 31, 2022, the current portion of contract liabilities was $1,960,914, and the non-current portion (net of the current portion) was $13,714,594. This distinction is important for understanding the timing of 1 800 Packouts' obligations. The current portion represents liabilities due within one year, while the non-current portion represents liabilities due beyond one year.
For a prospective franchisee, understanding the nature and timing of these liabilities is crucial. While the 2025 FDD does not provide the exact balance as of December 31, 2024, it would be prudent to request this information from 1 800 Packouts during the due diligence process. Knowing the current and non-current portions of contract liabilities will help in assessing the financial health and stability of the franchise system.