What was the provision for income taxes for Anago for the year ended December 31, 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 ended December 31, 2022, was $57,613. This amount is part of a larger context that includes income tax provisions for other years as well. Specifically, the provision for income taxes for the years ended December 31, 2024, and 2023 were $496,448 and $348,384, respectively.
This provision includes both current and deferred components. For 2022, the current provision totaled $99,694, while the deferred benefit was $42,081. The corresponding figures for 2024 were a current provision of $479,939 and a deferred benefit of $(16,509), and for 2023, the current provision was $216,922 with a deferred benefit of $(131,462).
The effective income tax rate for Anago varied from statutory federal and state income tax rates due to non-deductible expenses and business meals and entertainment. Additionally, as of December 31, 2022, 2023, and 2024, cumulative temporary differences included deferred tax assets (liability) associated with tax returns filed on a cash basis versus consolidated financial statements reported on an accrual basis, as well as unrealized gains (losses) on investments. For 2022, this totaled $82,115, while the amounts for 2023 and 2024 were $(49,347) and $65,045, respectively.
For a prospective franchisee, understanding these figures is crucial for assessing the financial health and tax strategies of Anago. It's important to note the fluctuations in income tax provisions and the factors influencing the effective tax rate, as these can impact the overall profitability and financial planning of the franchise.