What was the accumulated amortization for 360 Painting's intangible assets as of 2023?
360_Painting Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
Charlottesville, Virginia
April 22, 2025
| 2024 | 2023 | |
|---|---|---|
| Assets | ||
| Current assets | ||
| Cash and cash equivalents | $ 943,020 $ | 722,074 |
| Accounts receivable, net | 3,218,426 | 2,838,106 |
| Prepaid expenses and other current assets | 3,666,212 | 2,486,419 |
| Total current assets | 7,827,658 | 6,046,599 |
| Property and equipment, net |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 56)
What This Means (2025 FDD)
Based on the 2025 Franchise Disclosure Document, 360 Painting's financial statements as of December 31, 2023, show the net value of intangible assets. The FDD does not explicitly state the accumulated amortization. However, it does show the net value of intangible assets and the amortization expense for 2023.
Specifically, the balance sheet shows "Intangible assets, net" at $12,925,497 as of December 31, 2023. This "net" figure already reflects the deduction of accumulated amortization from the original cost of the intangible assets. The amortization expense for the year ended December 31, 2023, was $1,323,392. This figure represents only the amortization expense recognized during 2023, not the total accumulated amortization to that date.
To determine the accumulated amortization as of December 31, 2023, a prospective 360 Painting franchisee would need to know the original cost of the intangible assets when they were initially recorded on the balance sheet. Then, subtracting the $12,925,497 net value from that original cost would yield the accumulated amortization. Since the FDD only provides the net value and the current year's expense, this calculation cannot be performed with the information at hand.
Therefore, a potential franchisee should ask 360 Painting for the historical cost of intangible assets and the accumulated amortization schedule to fully understand the company's asset valuation and amortization practices. This information is essential for assessing the financial health and future profitability of a 360 Painting franchise.