What was the loss (gain) on disposal of fixed assets for 1 800 Packouts in 2023?
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 (gain) on the disposal of fixed assets in 2023 was a loss of $11,390. 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 indicates the financial activity related to the disposal of assets, which can include equipment or property. A loss on disposal suggests that the assets were sold for less than their book value.
Understanding these adjustments is crucial for assessing the overall financial health and cash flow management of 1 800 Packouts. Reviewing these figures over multiple years can provide insights into the company's asset management strategies and potential impacts on profitability.