What were the finance costs for Best Brains for the year ended December 31, 2023?
Best_Brains Franchise · 2025 FDDAnswer from 2025 FDD Document
ventory consisting of books and materials has been stated at lower of cost (first-in first- out method) or net realizable value.
NOTE 7- EXPENDITURE/ INCOME IN FOREIGN CURRENCY
Payments received from BB Canada Inc for materials sent to them converted into USD amounted to $180,
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 42)
What This Means (2025 FDD)
According to Best Brains' 2025 Franchise Disclosure Document, the company incurred interest expenses related to an SBA loan during the year ended December 31, 2023. Specifically, Best Brains paid $8,041 in interest for the year. The loan itself, amounting to $150,000, was received on May 18, 2020, as part of a coronavirus relief package. The loan's interest rate is 3.75% per annum. No principal repayments were made during 2023.
This information is relevant for prospective Best Brains franchisees as it provides insight into the company's financial obligations and how it has managed debt. Understanding the terms of the SBA loan, including the interest rate and repayment schedule, can help franchisees assess the financial stability of Best Brains. It also shows how Best Brains utilized government assistance programs during the pandemic.
It's important to note that this figure only reflects the interest paid on the SBA loan. It does not include any other potential finance costs Best Brains may have incurred from other sources. Franchisees should consider this information in the context of the overall financial health of the company, as presented in the financial statements. Reviewing the complete financial statements and notes is crucial for a comprehensive understanding of Best Brains' financial position.