How does 1 800 Packouts' total assets compare to its liabilities and members' equity?
1_800_Packouts Franchise · 2025 FDDAnswer from 2025 FDD Document
opinion on the effectiveness of the Company'sinternal 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.
April 23, 2025
| (1) | 2024 | 2023 | |
|---|---|---|---|
| Assets | |||
| Current assets: | |||
| Cash | $ | 3,690,691 | $ 1,455,349 |
| Restricted cash | - | 840,143 | |
| Accounts receivable, net of an allowance for credit losses | |||
| of $74,296 and $105,953, respectively | 6,102,611 | 3,565,178 | |
| Other | 820,000 | - | |
| current | |||
| receivable | |||
| Current | 1,797,429 | 1,382,859 | |
| portion | |||
| of | |||
| contract | |||
| assets | |||
| Prepaid and other current assets | 1,803,912 | 1,537,556 | |
| Total current assets | 14,214,643 | 8,781,085 | |
| Goodwill, net | 52,556,496 | 66,184,756 | |
| Intangible assets, net | 45,678,810 | 50,358,496 | |
| Contract assets, net of current portion | 13,317,603 | 10,981,453 | |
| Operating lease right-of-use assets | 1,603,081 | 1,272,436 | |
| Other assets | 2,206,748 | 828,551 | |
| Total assets | $ | 129,577,381 | $ 138,406,777 |
| Liabilities and Members' Equity | |||
| Current liabilities: | |||
| Accounts payable | $ | 1,515,669 | $ 713,523 |
| Accrued expenses | 2,383,578 | 2,656,030 | |
| Current | 3,227,336 | 2,517,756 | |
| portion | |||
| of | |||
| contract | |||
| liabilities | |||
| Current portion of operating lease liabilities | 360,394 | 256,163 | |
| Revolving credit facility | 1,100,000 | - | |
| Current portion of long-term debt, net of debt issuance costs | 206,519 | 851,000 | |
| Total current liabilities | 8,793,496 | 6,994,472 | |
| Contract | 20,994,540 | 17,393,479 | |
| liabilities, | |||
| net | |||
| of | |||
| current | |||
| portion | |||
| Operating lease liabilities, net of current portion | 1,321,919 | 1,070,182 | |
| Long-term debt, net of current portion and debt issuance costs | 46,197,321 | 46,148,366 | |
Source: Item 23 — RECEIPT (FDD pages 67–238)
What This Means (2025 FDD)
According to 1 800 Packouts's 2025 Franchise Disclosure Document, the company's total assets, liabilities, and members' equity are detailed in the provided balance sheets. As of December 31, 2024, 1 800 Packouts had total assets of $129,577,381. This figure is directly balanced by the sum of its total liabilities and members' equity, which also amounts to $129,577,381. The total liabilities were $82,249,343 and the members' equity was $47,328,038.
In the previous year, as of December 31, 2023, 1 800 Packouts reported total assets of $138,406,777, which was again equal to the sum of its total liabilities and members' equity. For 2023, total liabilities amounted to $77,113,904, while members' equity was $61,292,873.
These figures reflect the fundamental accounting equation where assets are always equal to the sum of liabilities and equity. This balance sheet provides a snapshot of 1 800 Packouts's financial position at these specific points in time, showing what the company owns (assets) and how those assets are financed (either through borrowing, i.e., liabilities, or through the owners' investments, i.e., equity). A prospective franchisee can review these figures to understand the financial structure and stability of 1 800 Packouts.