Does the Best Brains financial statement for December 31, 2023, show any liabilities?
Best_Brains Franchise · 2025 FDDAnswer from 2025 FDD Document
The financial statements of Best Brains, Inc. have been prepared on the accrual basis of accounting and, accordingly, reflect all receivables, payables and other liabilities. Revenue is recognized when earned and expenses are recorded when the obligation is incurred.
During the year ended December 31, 2020, Best Brains Inc. a $150,000 loan agreement with the Small Business Administration (SBA). The proceeds of the loan are solely for working capital to alleviate economic injury caused by the Covid 19 virus. The loan bears interest at 3.75% and Interest of $ 8,772 is paid, while no principal repayments have been made in 2024 for the same.
The Corporation also received an SBA Loan of $150,000 on May 18, 2020 as a part of Corona virus relief package. Interest will accrue at the rate of 3.75% per annum on the funds advanced. Interest of $8,041 is paid, while no principal repayments have been made in 2023 for the same.
Transactions with related parties during the year ended December 31st, 2023
( Amount in USD) PURCHASE OF MATERIALS /SERVICES 1,096,075.00 A.1 Best Brains India A.2 Advansoft International Inc 898,225.00 661,500.00 A.3 Advansoft India 97,375.08 A.4 A1 Kaiser A.5 Best Brains of Schaumburg, INC A.6 Adventures India Pvt. Ltd 86,000.00 SALE OF MATERIALS / SERVICES B.1 Best Brains of Schaumburg, INC 29,258.49 B.2 Best Brains- Canada 460,145.82 B.3 Nala Robotics 74,355.12
Receivables / Payables From/ To related parties as at December 31st , 2023
B.4 Best Brains Online Learning
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 42)
What This Means (2025 FDD)
According to Best Brains' 2025 Franchise Disclosure Document, the financial statements as of December 31, 2023, do reflect liabilities. The Basis of Accounting section of the notes to the financial statements indicates that the financial statements have been prepared using the accrual basis of accounting, which means that all receivables, payables, and other liabilities are included. This suggests that Best Brains' financial statements for that period account for all known financial obligations.
Specifically, Note 5 mentions an Economic Injury Disaster Loan that Best Brains Inc. obtained from the Small Business Administration (SBA) in 2020. The loan amount was $150,000, with an interest rate of 3.75%. The note indicates that interest of $8,772 was paid, while no principal repayments were made in 2024. Additionally, Note 11 refers to an SBA loan of $150,000 received on May 18, 2020, as part of a coronavirus relief package, with interest accruing at 3.75% per annum. Interest of $8,041 was paid, with no principal repayments made in 2023.
Furthermore, the financial statements include transactions with related parties, which could also result in payables. For example, there are purchases of materials/services from entities like Best Brains India and Advansoft International Inc., among others. These transactions totaled $1,096,075.00. There are also receivables/payables from/to related parties as of December 31, 2023, including Best Brains Online Learning. These notes confirm the presence of liabilities within Best Brains' financial statements for the year ending December 31, 2023.