What were the capitalized software development costs for Amerispec Inspection Services in 2024?
Amerispec_Inspection_Services Franchise · 2025 FDDAnswer from 2025 FDD Document
| The Company’s notes payable consisted of the following as of December 31: | ||
|---|---|---|
| 2024 | 2023 |
TCB Services HoldCo, LLC and Subsidiaries Consolidated Statements of Cash Flows Year Ended December 31, 2024 and Period from March 31, 2023 to December 31, 2023
| 2024 | 2023 As Restated | |
|---|---|---|
| Operating Activities | ||
| Net loss | $ (5,984,064) | $ (3,176,320) |
| Adjustments to reconcile net loss to net cash used in | ||
| operating activities | ||
| Depreciation and amortization | 2,361,412 | 1,615,291 |
| Provision for credit losses | 356,794 | 4,167 |
| Share-based compensation | 96,094 | 51,165 |
| Deferred financing costs amortization | 22,347 | - |
| Paid-in-kind interest | 30,232 | - |
| Non-cash operating lease expense | 430,924 | - |
| Changes in assets and liabilities | 156,840 | (973,448) |
| Accounts receivable | ||
| Prepaid expenses and other current assets | (125,439) | (190,170) |
| Deferred tax assets | (94,570) | - |
| Accounts payable | 336,952 | 451,075 |
| Accrued expenses and other payables | (19,372) | 402,500 |
| Deferred revenue | 51,577 | - |
| Lease liabilities | (406,968) | - |
| Net Cash Used in Operating Activities | (2,787,241) | (1,815,740) |
| Investing Activities | ||
| Acquisitions | (3,098,429) | (25,646,102) |
| Purchases of property and equipment | (470,883) | - |
| Capitalized software development costs | (24,225) | - |
| Payments received on notes receivable | 119,485 | 116,016 |
| Net Cash Used in Investing Activities | (3,474,052) | (25,530,086) |
| Financing Activities | ||
| Borrowings on notes payable | 5,250,000 | - |
| Proceeds on revolving line of credit, net | 500,000 | - |
| Financing costs | (316,732) | - |
| Members' contributions | 750,000 | 29,200,000 |
| Net Cash |
Source: Item 23 — Receipts (FDD pages 47–172)
What This Means (2025 FDD)
According to Amerispec Inspection Services' 2025 Franchise Disclosure Document, the capitalized software development costs for 2024 were $24,225. This figure represents the company's investment in developing or enhancing its software during that year, which is treated as a capital asset on its balance sheet rather than an immediate expense.
For a prospective franchisee, this information provides insight into Amerispec Inspection Services' financial management and its commitment to technology. Capitalizing software development costs suggests that the company views these investments as having long-term value and contributing to future revenue generation.
However, it's important to note that this is a cost incurred by the franchisor, not directly by the franchisee. Franchisees should focus more on the costs they will incur for software licenses and support, as detailed elsewhere in the FDD. Understanding the franchisor's investment in technology can give franchisees confidence in the tools they will be using to operate their business.