What was the current maturity of operating lease liability for All Team as of December 31, 2023?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
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Tampa, Florida March 24, 2025
ALL TEAM FRANCHISE CORPORATION BALANCE SHEETS
AS OF DECEMBER 31, 2024 AND 2023
| 2024 | 2023 | |
|---|---|---|
| CURRENT ASSETS | ||
| Cash | $ 629,272 | $ 1,015,879 |
| Accounts receivable-trade, pledged, | 589,672 | 1,075,420 |
| less credit losses of $63,416 and $57,416, respectively | ||
| Advances to related parties | 1,526,254 | 1,091,453 |
| Prepaid expenses | 81,663 | 20,368 |
| Due from IRS | - | 49,780 |
| Total Current Assets | 2,826,861 | 3,252,900 |
| PROPERTY AND EQUIPMENT, net | - | - |
| OTHER ASSETS | ||
| Operating lease right-of-use assets | 90,309 | 143,935 |
| Deposits | 34,537 | 34,537 |
| Intangible assets | 61,329 | 61,329 |
| Total Other Assets | 186,175 | 239,801 |
| TOTAL ASSETS | $ 3,013,036 | $ 3,492,701 |
| CURRENT LIABILITIES | ||
| Accounts payable - trade | $ 2,646 | $ 3,528 |
| Due to stockholder | 14,772 | 39,378 |
| Current maturity of operating lease liability | 58,709 | 53,626 |
| Credit line payable | 859,983 | 1,321,084 |
| Accrued expenses | 124,879 | 231,956 |
| Other funding liabilities | 1,133,303 | 919,887 |
| Total Current Liabilities | 2,194,292 | 2,569,459 |
| LONG TERM LIABILITY | ||
| Operating lease liability, net of current maturity | 31,600 | 90,309 |
| Total Long-Term Liability | 31,600 | 90,309 |
| Total Liabilities | 2,225,892 | 2,659,768 |
| STOCKHOLDER'S EQUITY | ||
| Common stock - $1 par value; |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 33)
What This Means (2025 FDD)
According to All Team's 2025 Franchise Disclosure Document, the current maturity of the operating lease liability as of December 31, 2023, was $53,626. This figure represents the portion of All Team's operating lease obligations due within the next 12 months. Operating leases are agreements where All Team uses an asset (likely real estate, as noted in NOTE 10) without owning it, and this liability reflects the short-term portion of those lease commitments. The total assets for All Team as of December 31, 2023 was $3,492,701. The operating lease right-of-use assets was $143,935.
This information is crucial for prospective franchisees because it provides insight into All Team's short-term financial obligations related to its leases. Understanding the current maturity of operating lease liabilities helps assess the company's liquidity and its ability to meet its upcoming lease payments. A higher current maturity relative to total assets or current assets could indicate a greater strain on All Team's short-term cash flow. The operating lease liability, net of current maturity was $90,309.
Furthermore, the FDD notes that All Team has an operating lease in place for a real estate lease that is set to expire in 2026. They are also party to other operating leases with terms less than 12 months and these are not recorded on the balance sheet; instead, the lease payments are recognized as rent expense as the lease payments are made. The fixed rent expense was $66,751. Reviewing these figures in conjunction with the company's overall financial health is essential for evaluating the financial stability of All Team.