Does the Best Brains financial statement for December 31, 2023, show any equity?
Best_Brains Franchise · 2025 FDDAnswer from 2025 FDD Document
tances, but not for the purpose of expressing an opinion on the effectiveness of Best Brains Inc's internal control. Accordingly, no such opinion is expressed.
- Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.
- Conclude whether, in our judgment, there are conditions or events considered in the aggregate that raise substantial doubt about Best Brains Inc's ability to continue as a going concern for a reasonable period of time
We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control–related matters that we identified during the audit.
Accutax Bizsolutions LLC Certified Public Accountant
Kalispell, Montana
Date: May 7, 2025
BALANCE SHEET December 31, 2024, and 2023
ASSETS
| December 31, 2024 | December 31, 2023 | |
|---|---|---|
| Current Assets | ||
| Cash and cash equivalents | $ 219,342 | $ 285,979 |
| Due from related affiliates | 100,000 | 199,679 |
| Accounts Receivable | 2,444,879 | 2,038,407 |
| Advances | 140,891 | 140,891 |
| Inventory | 1,483,909 | 417,347 |
| Loan receivable | 666,477 | 942,746 |
| Other Current Assets | 6,926 | 15,822 |
| Total Current Assets | 5,062,424 | 4,040,872 |
| Fixed Asset | ||
| Building and equipment | 160,000 | 160,000 |
| Furniture and fixture | 121,927 | 119,417 |
| Vehicles | 545,919 | 246,030 |
| Less:Accumulated depreciation | (331,132) | (278,956) |
| Total Fixed Asset | 496,714 | 246,490 |
| Intangible Asset | 96,000 | 96,000 |
| Software development | ||
| Less:Accumulated amortization | (59,400) |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 42)
What This Means (2025 FDD)
According to Best Brains' 2025 Franchise Disclosure Document, the balance sheet as of December 31, 2023, does indeed show stockholders' equity. The financial statement includes a breakdown of assets, liabilities, and equity, providing a snapshot of the company's financial position at that specific point in time. This information is crucial for prospective franchisees to assess the financial health and stability of Best Brains. The auditor's report states that the financial statements present fairly the financial position of Best Brains Inc. as of December 31, 2023.
Specifically, the balance sheet details the components of stockholders' equity, which include common stock, additional paid-in capital, and retained earnings. As of December 31, 2023, Best Brains had $1,000 in common stock, $121,375 in additional paid-in capital, and $66,758 in retained earnings. This results in a total stockholders' equity of $189,133.
This positive equity position suggests that Best Brains has more assets than liabilities, which is generally a favorable indicator for potential investors and franchisees. Reviewing these figures allows prospective franchisees to understand the capital structure and overall financial strength of Best Brains. It's important to note that while the financial statements are audited, prospective franchisees should still conduct their own due diligence and possibly consult with a financial advisor to fully understand the implications of these figures.