What was the total value of Annex Brands' shareholders' equity 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 |
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||
| Current liabilities: | ||
| Accounts payable and accrued expenses | $ 2,228,000 | $ 2,757,000 |
| Deferred franchise revenue | 437,000 | 396,000 |
| Operating lease liabilities, current portion | 306,000 | |
| Total current liabilities | 2,971,000 | 3,153,000 |
| Operating lease liabilities, net of current portion | 1,103,000 | |
| Total liabilities | 4,074,000 | 3,153,000 |
| Shareholders' equity: | ||
| Common stock, no par value, 1,000,000 shares authorized, | ||
| 57,490 shares issued and outstanding | 2,406,000 | 2,406,000 |
| Retained earnings | 12,054,000 | 10,991,000 |
| Total shareholders' equity | 14,460,000 | 13,397,000 |
| Total liabilities and shareholders' equity | $ 18,534,000 | $ 16,550,000 |
| | 2024
Source: Item 21 — Financial Statements (FDD page 109)
What This Means (2025 FDD)
According to Annex Brands' 2025 Franchise Disclosure Document, the total value of the company's shareholders' equity in 2023 was $13,397,000. This figure represents the net worth of Annex Brands from the perspective of its shareholders, calculated as the difference between the company's total assets and total liabilities. It is an important indicator of the financial health and stability of the company.
Shareholders' equity consists of two primary components: common stock and retained earnings. In 2023, Annex Brands had $2,406,000 in common stock and $10,991,000 in retained earnings, which together make up the total shareholders' equity. Common stock represents the initial investment made by shareholders, while retained earnings represent the accumulated profits that have not been distributed as dividends.
For a prospective franchisee, a healthy shareholders' equity suggests that Annex Brands is financially stable and has a strong foundation. This can provide reassurance that the company is well-managed and has the resources to support its franchisees. However, it is important to consider this figure in conjunction with other financial metrics and to conduct thorough due diligence before making an investment decision. Reviewing trends in shareholders' equity over several years, as well as comparing Annex Brands' equity to that of its competitors, can provide a more comprehensive understanding of the company's financial position.