What was the net property and equipment for Annex Brands in 2024?
Annex_Brands Franchise · 2025 FDDAnswer from 2025 FDD Document
ember 30:
| 2024 | 2023 | |
|---|---|---|
| Equipment and software Furniture and fixtures Leasehold improvements | $ 5,165,000 | $ 4,400,000 |
| 509,000 | 449,000 | |
| 120,000 | 115,000 | |
| Lance and second description | 5,794,000 | 4,964,000 |
| Less: accumulated depreciation | (4,788,000) | (4,152,000) |
| and amortization | ||
| $ 1,006,000 | $ |
Source: Item 21 — Financial Statements (FDD page 109)
What This Means (2025 FDD)
According to Annex Brands' 2025 Franchise Disclosure Document, the net property and equipment for the company in 2024 was $1,006,000. This figure represents the value of Annex Brands' property and equipment after accounting for accumulated depreciation and amortization. In comparison, the net property and equipment in 2023 was $812,000, indicating an increase from the previous year.
Property and equipment typically include items such as equipment and software, furniture and fixtures, and leasehold improvements. For 2024, the total cost of equipment and software was $5,165,000, furniture and fixtures were valued at $509,000, and leasehold improvements amounted to $120,000. These assets are subject to depreciation, which is the allocation of the cost of tangible assets over their useful lives. Accumulated depreciation and amortization, which totaled $4,788,000 in 2024, reflects the total depreciation expense recognized on these assets up to that point.
The net property and equipment value is an important indicator of the company's investment in its physical assets and its capacity to support ongoing operations. A higher net value may suggest that Annex Brands has been investing in new equipment or upgrading existing facilities, which could enhance its operational efficiency and competitiveness. Prospective franchisees may want to understand the nature of these assets and how they contribute to the overall profitability and stability of the franchise system.
Understanding the composition and changes in property and equipment can provide valuable insights into Annex Brands' financial management and strategic investments. Franchisees may find it useful to compare these figures with those of other franchise systems to assess the relative capital intensity and investment strategies of Annex Brands. Further analysis of the depreciation methods and useful lives of the assets can also offer a more detailed understanding of the company's accounting practices and financial health.