What was the reported non-cash lease expense for Alloy in 2022?

According to Alloy's 2025 Franchise Disclosure Document, the non-cash lease expense for the year ended December 31, 2022, was $94,354. This expense does not represent an actual cash outflow but rather an accounting adjustment to reflect the cost of using leased assets, such as property or equipment, over that period. It is a component of the overall operating expenses for Alloy.

For a prospective Alloy franchisee, understanding non-cash expenses like this is crucial for interpreting the company's financial statements accurately. While it doesn't affect the immediate cash position, it does impact the reported profitability and should be considered when evaluating the financial health of the franchise system. Franchisees should look at this figure in conjunction with other cash flow metrics to get a complete picture.

It's important to note that this non-cash lease expense is related to the operating lease that Alloy entered into for an office space. The FDD also mentions that Alloy recognized an operating lease expense of $114,313 for both 2024 and 2023, which includes common area maintenance, taxes, and insurance. This indicates that Alloy has ongoing lease obligations that franchisees should be aware of when assessing the franchisor's financial stability and operational costs.