What was the loss (gain) on disposal of fixed assets for 1 800 Packouts in 2022?
1_800_Packouts Franchise · 2025 FDDAnswer from 2025 FDD Document
----|--------------------| | Cost of revenues | | 10,001,056 | 5,463,228 | | Gross profit | | 24,596,601 | 20,563,296 | | Operating expenses: | | | | | Selling, general and administrative | | 20,522,378 | 18,837,743 | | Depreciation and amortization | | 11,307,800 | 10,597,574 | | Total operating expenses | _ | 31,830,178 | 29,435,317 | | Loss from operations | | (7,233,577) | (8,872,021) | | Other income (expense): | | | | | Interest expense | | (5,506,427) | (3,821,499) | | Gain on sale of unconsolidated subsidiary | | - | 1,025,637 | | Other income (expense) | | (204,868) | (51,463) | | Total other expense, net | | (5,711,295) | (2,847,325) | | Loss before income taxes | | (12,944,872) | (11,719,346) | | Income tax benefit (provision) | | (765,698) | 1,280,676 | | Net loss | $ | (13,710,570) | $ (10,438,670) |
| | | For the Year | s Ende | ed December 31, | |----------------------------------------------------------------------------------------
Source: Item 23 — RECEIPT (FDD pages 67–238)
What This Means (2025 FDD)
According to 1 800 Packouts's 2025 Franchise Disclosure Document, the loss on disposal of fixed assets for the year ending December 31, 2022, was $43,615. This figure is part of the adjustments made to reconcile the net loss to net cash used in operating activities.
For a prospective franchisee, this number reflects a specific non-cash transaction that affected 1 800 Packouts's cash flow during 2022. It indicates the amount of loss the company incurred when disposing of fixed assets, such as equipment or property. This loss is added back to the net loss when calculating cash flow from operating activities because it's a non-cash expense.
Understanding these adjustments can help a franchisee better interpret 1 800 Packouts's financial statements and assess the company's operational efficiency. While a single year's loss on disposal of fixed assets may not be significant on its own, consistent or unusually high losses in this area could indicate issues with asset management or operational challenges that a potential franchisee should investigate further.