What were the prepaid expenses and other current assets for Annex Brands in 2024?
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 |
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 prepaid expenses and other current assets totaled $1,220,000 in 2024. This figure is part of the company's current assets, which also include cash and cash equivalents, and accounts receivable. The total current assets for Annex Brands in 2024 were $14,816,000.
Prepaid expenses are costs that Annex Brands has paid in advance for goods or services that it will receive in the future, while other current assets may include items such as inventory or short-term investments. These assets are expected to be converted into cash or used up within one year.
For a prospective franchisee, understanding the composition of Annex Brands's assets can provide insights into the company's financial health and how it manages its resources. A higher value of prepaid expenses and other current assets compared to previous years, as seen from $704,000 in 2023 to $1,220,000 in 2024, may indicate changes in the company's operational strategies or investment decisions. It is important to note that of the $1,220,000 in prepaid expenses and other current assets, $160,000 was deposited with the IRS for estimated income taxes.
It is important for potential franchisees to review the complete financial statements and consult with a financial advisor to fully understand the implications of these figures for their investment decision.