What was the net cash used by operating activities for Bambu in 2022?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
| FOR THE YEARS ENDED DECEMBER 31, | ||||
|---|---|---|---|---|
| 2024 | 2023 | 2022 | ||
| CASH FLOWS FROM OPERAT | ING ACTIVITIES | |||
| Net income (loss) | $ (227,049) | $ (129,336) | $ (331,259) | |
| Adjustments to reconcile net income to net | ||||
| cash provided by operating activities: | ||||
| Depreciation and amortization | ||||
| 66,672 | 66,672 | 66,834 | ||
| Recognition of non-refundable deferred franchise fees | (638,212) | (585,108) | (987,096) | |
| Expenses paid by related party | 581,597 | |||
| Change in assets and liabilities: | ||||
| Accounts receivable | 67,189 | 121,541 | (412,935) | |
| Inventory | 1,233 | (11,141) | (23,389) | |
| Prepaid expenses and other assets | 10,671 | (8,646) | (11,365) | |
| Accounts payable and accrued expenses | 209,179 | 89,087 | 183,020 | |
| Non-refundable deferred franchise fees | 345,500 | 362,500 | 898,017 | |
| Net cash (used) by operating activities | (164,817) | (94,431) | (36,576) |
Source: Item 23 — Receipts (FDD pages 52–209)
What This Means (2025 FDD)
According to Bambu's 2025 Franchise Disclosure Document, the net cash used by operating activities in 2022 was $(36,576). This figure reflects the net outflow of cash resulting from Bambu's core business operations during that year. It's a key indicator of the company's ability to generate cash from its operational activities.
Several factors contributed to this net cash usage. The net loss for the year was $(331,259). Adjustments were made to reconcile the net loss to net cash used by operating activities, including depreciation and amortization of $66,834 and recognition of non-refundable deferred franchise fees of $(987,096). Additionally, there were changes in assets and liabilities, such as accounts receivable decreasing by $(412,935) and inventory decreasing by $(23,389).
For a prospective franchisee, this information is crucial for understanding Bambu's financial health and cash flow dynamics. A negative net cash flow from operating activities could signal potential challenges in sustaining operations or funding growth through internal sources. It's important to consider the reasons behind this cash usage and whether it's a temporary situation or a recurring trend. Reviewing the complete financial statements and discussing these figures with Bambu can provide a clearer picture of the company's financial stability and future prospects.