What was the depreciation and amortization expense related to property and equipment recognized in 360 Painting's consolidated statement of operations for the year ended December 2023?

According to 360 Painting's 2025 Franchise Disclosure Document, the depreciation and amortization expense related to property and equipment recognized in the consolidated statement of operations was $348,175 for the year ended December 2023. In the previous year, 2022, the depreciation and amortization expense was $152,162.

Depreciation and amortization are accounting methods used to allocate the cost of tangible assets (like equipment) and intangible assets (like patents or trademarks) over their useful lives. This expense reflects the reduction in value of these assets over time as they are used in the business. For 360 Painting, this figure represents the expense recognized for the wear and tear or obsolescence of its property and equipment.

Prospective franchisees should understand that depreciation and amortization are non-cash expenses, meaning they don't represent actual cash outflows. However, they do reduce the company's reported profit. Monitoring these expenses can provide insights into 360 Painting's capital investments and asset management strategies. A significant increase in depreciation and amortization could indicate substantial investments in new equipment or assets, which may have implications for the company's future growth and profitability.