What was the amount of cash paid during the year for income taxes by Annex Brands in 2024?
Annex_Brands Franchise · 2025 FDDAnswer from 2025 FDD Document
| 2024 | 2023 | 2022 | ||
|---|---|---|---|---|
| Cash flows from operating activities: | ||||
| Net income | $ 7,357,000 | $ | 7,626,000 | $ 7,476,000 |
| Adjustments to reconcile net income to cash | ||||
| provided by operating activities: | ||||
| Depreciation and amortization | 691,000 | 718,000 | 1,134,000 | |
| Amortization of right-of-use-assets | 88,000 | - | ||
| Gain on sale of corporate location | - | - | (218,000) | |
| Loss on disposal of long-lived assets | 5,000 | - | 3,000 | |
| Provision for bad debts | - | 120,000 | 120,000 | |
| Changes in operating assets and liabilities: | ||||
| Accounts receivable | 265,000 | (805,000) | 48,000 | |
| Inventory | 2,000 | |||
| Prepaid expenses and other current assets | (516,000) | (66,000) | 112,000 | |
| Deposits and other noncurrent assets | 152,000 | 14,000 | (288,000) | |
| Accounts payable and accrued expenses | (529,000) | (26,000) | 92,000 | |
| Deferred franchise revenue | 41,000 | 134,000 | 30,000 | |
| Operating lease liabilities | (82,000) | - | - | |
| Net cash provided by operating activities | 7,472,000 | _ | 7,715,000 | 8,511,000 |
| Cash flows from investing activities: | ||||
| Purchase of equipment | (835,000) | (689,000) | (408,000) | |
| Issuance of notes receivable | (242,000) | (14,000) | (43,000) | |
| Receipt of payments on notes receivable | 126,000 | _ | 98,000 | 96,000 |
| Net cash used in investing activities | (951,000) | _ | (605,000) | (355,000) |
| Cook flows from financing activities. | ||||
| Cash flows from financing activities: Distributions to shareholders | (6,294,000) | (6,347,000) | (7,085,000) | |
| Proceeds from exercise of stock options | (0,294,000) | (0,347,000) | 93,000 | |
| Stock repurchase | _ | _ | (1,325,000) | - |
| Net cash used in financing activities | (6,294,000) | _ | (7,672,000) | (6,992,000) |
| Net increase (decrease) in cash | 227,000 | (562,000) | 1,164,000 | |
| Cash and cash equivalents at beginning of year | 11,992,000 | _ | 12,554,000 | 11,390,000 |
| Cash and cash equivalents at end of year | $ 12,219,000 | $ | 11,992,000 | $ 12,554,000 |
| Supplemental disclosure of cash flow information: | $ 111,000 | $ | 226,000 | $ 205,000 |
| Cash paid during the year for income taxes |
Source: Item 21 — Financial Statements (FDD page 109)
What This Means (2025 FDD)
According to Annex Brands' 2025 Franchise Disclosure Document, the cash paid during the year for income taxes in 2024 was $111,000. This figure is part of the supplemental disclosure of cash flow information within the consolidated financial statements. Franchisees should note that this reflects Annex Brands' payments, not necessarily their own individual tax obligations.
This information is useful for prospective franchisees as it provides insight into Annex Brands' financial practices and obligations. Understanding the company's tax payments can contribute to a broader understanding of its financial health and stability. Keep in mind that Annex Brands has elected to be taxed as an S Corporation, meaning that its taxable income or loss is included in the shareholders' personal federal and state income tax returns.
It's important for potential franchisees to consult with a financial advisor to understand the tax implications of investing in an Annex Brands franchise. While Annex Brands' corporate tax payments offer a glimpse into their financial operations, individual franchisees will have their own unique tax considerations based on their specific business circumstances.