What was the cash and cash equivalents at the beginning of 2023 for Annex Brands?
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 and cash equivalents at the beginning of the year (October 1, 2022) totaled $12,554,000. This figure represents the amount of readily available funds Annex Brands had at its disposal to start the fiscal year 2023.
Cash and cash equivalents are defined by Annex Brands as highly liquid debt instruments purchased with maturities of three months or less. This indicates that Annex Brands maintains a conservative approach to managing its liquid assets, focusing on investments that can be quickly converted to cash.
This information is relevant to potential franchisees as it provides insight into the financial stability and liquidity of Annex Brands. A healthy cash position suggests that Annex Brands is capable of meeting its short-term obligations and investing in future growth, which can be reassuring for individuals considering investing in an Annex Brands franchise.