What were the deposits and other noncurrent assets for Annex Brands in 2023?
Annex_Brands Franchise · 2025 FDDAnswer from 2025 FDD Document
| 2024 | 2023 | |
|---|---|---|
| ASSETS | ||
| Current assets: | ||
| Cash and cash equivalents | $ 12,219,000 | $ 11,992,000 |
| Accounts receivable, net of allowance for doubtful | ||
| accounts of $910,000 and $948,000, respectively | 1,377,000 | 1,642,000 |
| Prepaid expenses and other current assets | 1,220,000 | 704,000 |
| Total current assets | 14,816,000 | 14,338,000 |
| Property and equipment, net | 1,006,000 | 812,000 |
| Right of use assets - operating leases | 1,403,000 | - |
| Deposits and other noncurrent assets | 1,086,000 | 1,122,000 |
| Intangible assets, net | 223,000 | 278,000 |
| Total assets | $ 18,534,000 | $ 16,550,000 |
Source: Item 21 — Financial Statements (FDD page 109)
What This Means (2025 FDD)
According to Annex Brands's 2025 Franchise Disclosure Document, the company's deposits and other noncurrent assets totaled $1,122,000 in 2023. This figure is part of the company's consolidated balance sheet, reflecting their financial position at the end of their fiscal year. These assets are categorized as noncurrent, meaning they are not expected to be converted to cash within one year.
Deposits and other noncurrent assets can include various items, such as security deposits on leases, long-term investments, or restricted funds. For Annex Brands, a significant portion of these deposits relates to income taxes. Specifically, $763,000 was deposited with the IRS to cover estimated income taxes for the period from October through December, which is not reported on the shareholders' federal income tax returns for their current filing year.
For a prospective Annex Brands franchisee, understanding the nature and size of these noncurrent assets provides insight into the company's financial management and long-term planning. It demonstrates that Annex Brands has funds set aside for future obligations, such as income taxes. While this specific line item may not directly impact a franchisee's day-to-day operations, it contributes to the overall financial stability and health of the franchisor, which can be an important consideration when evaluating a franchise opportunity.