What was the income tax provision for Anago in 2022?
Anago Franchise · 2025 FDDAnswer from 2025 FDD Document
The provision for income taxes for the years ended December 31, 2024, 2023, and 2022 is $496,448, $348,384, and $57,613, respectively. This includes for the year ending December 31, 2024, 2023, and 2022 current provision totaling $479,939, $216,922 and $99,694, respectively, and deferred benefit (provision) totaling $(16,509),($131,462),and$42,081, respectively.
For the year ended December 31, 2024, 2023, and 2022, the Company’s effective income tax rate varied from statutory federal and state income tax rates principally due to non-deductible expenses and business meals and entertainment.
As of December 31, 2024, 2023, and 2022 the cumulative temporary differences includes a deferred tax assets (liability) associated with the tax returns which are filed based on the cash basis of accounting and the consolidated financial statements are reported based on the accrual basis of accounting and unrealized gain (loss) on investments totaled $65,045, $(49,347), and $82,115, respectively.
Source: Item 23 — RECEIPTS (FDD pages 62–298)
What This Means (2025 FDD)
According to Anago's 2025 Franchise Disclosure Document, the provision for income taxes for the year ending December 31, 2022, was $57,613. This amount includes a current provision of $99,694 and a deferred benefit of $42,081.
It's important to note that Anago's effective income tax rate can vary from statutory federal and state income tax rates due to factors like non-deductible expenses and business meals and entertainment. Additionally, the cumulative temporary differences include deferred tax assets or liabilities related to tax returns filed on a cash basis versus consolidated financial statements reported on an accrual basis, as well as unrealized gains or losses on investments. For the year ending December 31, 2022, the unrealized gain (loss) on investments totaled $82,115.
Prospective franchisees should understand these tax-related figures and how Anago's accounting practices might impact their own financial planning. Consulting with a financial advisor or accountant is recommended to fully grasp the implications of these tax provisions and deferred benefits.