What was the net increase or decrease in cash and cash equivalents for Amorino in 2023?
Amorino Franchise · 2025 FDDAnswer from 2025 FDD Document
s for the year ended December 31, 2023 | (59,523) | | Balance at December 31, 2023 | (142,465) | | Net loss for the year ended December 31, 2024 | (64,283) | | Balance at December 31, 2024 | $ (206,748) |
STATEMENTS OF CASH FLOWS
CPUSA LLC (A Wholly-Owned Subsidiary of Amorino USA Corp.)
| Year Ended December 31 | ||||
|---|---|---|---|---|
| 2024 | 2023 | 2022 | ||
| CASH FLOWS FROM OPERATING ACTIVITIES | ||||
| Net Loss | $ | (64,283) | $ (59,523) | $ (22,090) |
| Adjustments to reconcile net loss to net cash | ||||
| provided by (used in) operating activities: | ||||
| Accounting fees paid by affiliate | 2,982 | -0- | -0- | |
| Interest expense included in note payable | ||||
| to Parent, paid by affiliate | -0- | 1,608 | -0- | |
| (Increase) decrease in operating assets: | ||||
| Accounts receivable | (7,189) | (208) | -0- | |
| Accounts receivable related party | -0- | (7,140) | -0- | |
| Prepaid expenses | 2,167 | (2,167) | -0- | |
| Increase (decrease) in operating liabilities: | ||||
| Accounts payable | 1,590 | 2,690 | (935) | |
| Accounts payable related party | -0- | 25,550 | -0- | |
| Accrued Expenses | 10,211 | -0- | -0- | |
| Deferred revenue | 149,947 | (3,958) | 38,510 | |
| NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES | 95,425 | (43,148) | 15,485 | |
| CASH FLOWS FROM FINANCING ACTIVITIES | ||||
| Net (repayments to) advances from related party | -0- | -0- | (42,876) | |
| NET CA |
Source: Item 22 — CONTRACTS (FDD pages 80–81)
What This Means (2025 FDD)
According to Amorino's 2025 Franchise Disclosure Document, the net increase or decrease in cash and cash equivalents for the company in 2023 was a decrease of $43,148. The FDD also shows the cash and cash equivalents at the beginning of the year 2023 was $84,565 and the cash and cash equivalents at the end of the year was $41,417.
This decrease indicates that Amorino used more cash than it generated during the year. This can be due to various factors such as operating losses, investments in assets, or repayment of debt. For a prospective franchisee, this information is crucial as it provides insight into the financial stability and cash flow management of the franchisor.
It's important to note that while a decrease in cash and cash equivalents may raise concerns, it does not necessarily indicate financial instability. It is essential to analyze the reasons behind the decrease and consider other financial metrics to get a comprehensive understanding of the company's financial health. A potential franchisee should investigate the reasons for the decrease with Amorino.
Franchisees should also compare these figures with those of other franchise systems they are considering. Reviewing these trends over several years, as presented in the table, provides a more complete picture of Amorino's financial management and stability.