How many shares of Bb.Q Chicken common stock are authorized?
Bb_Q_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
| 2024 | 2023 | |||
|---|---|---|---|---|
| Cash flows from operating activities: | ||||
| Net Income (loss) | $ (51,129) | $ 107,888 | ||
| Adjustment to reconcile net income (loss) to net cash | ||||
| used in operating activities: | ||||
| Depreciation & amortization | 402,980 | 368,402 | ||
| Bad debt expenses | 42,846 | 9,370 | ||
| Provision for inventory reserves | 12,320 | 12,350 | ||
| Increase/Decrease in accounts receivable | (2,108,010) | (2,266,137) | ||
| Increase/Decrease in due from parent | (2,016,520) | - | ||
| Increase/Decrease in inventory | 1,065,214 | (1,582,637) | ||
| Increase/Decrease in prepaid expenses | (171,458) | 91,641 | ||
| Increase/Decrease in interest receivable | (11,878) | (12,530) | ||
| Increase/Decrease in contract asset | (140,000) | - | ||
| Increase/Decrease in deferred tax asset | 56,705 | (97,335) | ||
| Increase/Decrease in accounts payable | 1,792,542 | 1,496,963 | ||
| Increase/Decrease in accrued expenses | 50,353 | 9,721 | ||
| Increase/Decrease in taxes payable | (9,627) | 14,290 | ||
| Increase/Decrease in royalty payable | 2,780,651 | (1,593,686) | ||
| Increase/Decrease in interest payable | 92,252 | 92,000 | ||
| Increase/Decrease in unearned revenue | (103,250) | (134,250) | ||
| Increase/Decrease in other current liabilities | 20,965 | (33,994) | ||
| Increase/Decrease in due to parent | - | 5,174,292 | ||
| Increase/Decrease in right of assets | 548,639 | (5,128,467) | ||
| Net cash provided by operating activities | 2,253,594 | (3,472,119) | ||
| Cash flows from investing activities: | ||||
| Acquisition of new fixed assets | (437,360) | (611,641) | ||
| Acquisition of intangible assets | (173,901) | (9,350) | ||
| Increase/Decrease in loans to others | (308,836) | (230,916) | ||
| Increase/Decrease in other receivables | (198,295) | (11,103) | ||
| Increase/Decrease in security deposits | (274,094) | (10,708) | ||
| Net cash used in investing activities | (1,392,486) | (873,718) | ||
| Cash flows from financing activities: | ||||
| Bank loan | (64,040) | (59,695) | ||
| Increase/Decrease in lease liabilities | (405,580) | 4,955,595 | ||
| Net cash provided by financing activities | (469,620) | 4,895,900 | ||
| Net increase(decrease) in cash | 391,488 | 550,063 | ||
| Cash, beginning of year | 1,999,340 | 1,449,277 $ 2,390,828 | $ 1,999,340 | |
| Cash, end of year | ||||
| Supplemental cash flow disclosures : | ||||
| - Interest paid | $ 40,024 | $ 51,979 | ||
| - Income taxes paid | $ 204,283 | $ 74,082 | ||
| - Conversion of AP, royalty payable, due to parent into equity | $ 14,231,561 | #### NOTE 8 – CAPITAL |
The Company is authorized to issue 5,000,000 common shares with no par value and 4,250,000 common shares are issued and outstanding as of December 31, 2024.
At the year ended, the Company converted an outstanding balance of $14,231,561 in payables owed to its parent company into equity. This transacti
Source: Item 23 — RECEIPTS (FDD pages 62–283)
What This Means (2025 FDD)
According to Bb.Q Chicken's 2025 Franchise Disclosure Document, the company is authorized to issue 5,000,000 common shares with no par value. As of December 31, 2024, 4,250,000 common shares were issued and outstanding.
This information is relevant to prospective franchisees as it provides insight into the capital structure of Bb.Q Chicken. Understanding the number of authorized and outstanding shares can help potential investors assess the company's financial stability and potential for future growth.
The note also mentions that at the year ended, the company converted an outstanding balance of $14,231,561 in payables owed to its parent company into equity. This transaction included account payable of $13,296,561 and royalty payable of $935,000. This conversion was executed as a capital contribution from the Parent.