What is the significance of the June 30, 2025 date in the context of Belocal's financial statements?
Belocal Franchise · 2025 FDDAnswer from 2025 FDD Document
Management has evaluated our ability to continue as a going concern as of June 30, 2025. Due to the positive income and liquidity position of the Company, we have concluded that there is not significant doubt about our ability to continue as a going concern.
The Company has analyzed tax positions taken for filing with the jurisdictions where it operates. The Company believes that income tax filing positions will be sustained upon examination and does not anticipate any adjustments that would result in a material adverse effect on the Company's financial condition, results of operations or cash flows. Accordingly, the Company has not recorded any reserves or related accruals for interest and penalties for uncertain income tax positions at June 30, 2025 and 2024.
In accordance with FASB ASC 855, Subsequent Events, the Company has evaluated subsequent events through September 26, 2025, the date on which the financial statement was available to be issued. There were no material subsequent events that required recognition or additional disclosure in the financial statement.
During the years ended June 30, 2025, 2024 and 2023, the Company's affiliate N2 Company provided accounting, marketing and other operating services for the Company. These costs are included in management fees in the statements of operations and were $6,624,000, $6,048,000 and $4,800,000 for the years ended June 30, 2025, 2024 and 2023, respectively.
As of June 30, 2025 and 2024, the Company had an amount of $4,217,245 and $3,998,969, respectively, due from its affiliate. Had these transactions occurred as unrelated third party transactions, the financial results may have varied significantly.
During the years ended June 30, 2025, 2024 and 2023, the Company provided sales services to N2 Company. This revenue is included in sales services revenue in the statements of operations and were $82,501,921, $77,450,854 and $77,776,240 for the years ended June 30, 2025, 2024 and 2023, respectively.
Source: Item 23 — RECEIPTS (FDD pages 71–242)
What This Means (2025 FDD)
According to Belocal's 2025 Franchise Disclosure Document, June 30, 2025, is the end of the company's fiscal year. The financial statements, including the balance sheets, statements of operations, changes in stockholders' equity, and cash flows, are reported as of and for the years ended June 30, 2025, 2024, and 2023. This date is significant for several reasons.
First, management evaluated Belocal's ability to continue as a going concern as of June 30, 2025, and concluded there was no significant doubt about the company's ability to continue. Second, the company analyzed its tax positions and determined that no reserves or accruals for interest and penalties for uncertain income tax positions were recorded as of June 30, 2025 and 2024. Third, the company evaluated subsequent events through September 26, 2025, to determine if any events required recognition or disclosure in the financial statements.
Finally, the company's affiliate, N2 Company, provided accounting, marketing, and other operating services to Belocal. These costs are included in management fees and totaled $6,624,000 for the year ended June 30, 2025. As of June 30, 2025, Belocal had $4,217,245 due from its affiliate. Additionally, during the year ended June 30, 2025, Belocal provided sales services to N2 Company, generating revenue of $82,501,921.