What was the depreciation expense for Amerispec Inspection Services for the year ended December 31, 2024?

According to Amerispec Inspection Services's 2025 Franchise Disclosure Document, the depreciation expense for the year ended December 31, 2024, was approximately $98,000. In comparison, the depreciation expense for the period ended December 31, 2023, was approximately $7,500. This indicates a significant increase in depreciation expense from 2023 to 2024.

For a prospective franchisee, depreciation expense is an important factor to consider as it reflects the reduction in value of assets over time. Higher depreciation expenses can impact the profitability of the business, as it reduces the net income reported. Understanding the reasons behind the increase in depreciation expense, such as the acquisition of new assets or changes in accounting methods, is crucial for assessing the financial health of Amerispec Inspection Services.

It is also important to note that the document mentions 'Depreciation and amortization' together in another section, with a total of $2,361,412 for 2024. This suggests that the $98,000 figure refers specifically to depreciation, while amortization is accounted for separately. A potential franchisee should clarify with Amerispec Inspection Services what specific assets are being depreciated and what methods are used to calculate depreciation, to fully understand the financial implications.