Where can I find the Related Party Disclosures within the Best Brains financial statements?
Best_Brains Franchise · 2025 FDDAnswer from 2025 FDD Document
amortized over the life of the related franchise agreement, generally five years.
In compliance with the Financial Accounting Standards board ("FASB") new accounting standards for revenue recognition ("Topic 606") as adjusted by ASU 202-02 deferred franchise revenue liability of $ 136,168.01 and $ 162,151.40 was recognized in 2023 & 2022 respectively.
NOTE 6- INVENTORY
Inventory 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 $180,167 during the year.
NOTE 8- LOANS AND ADVANCES
All outstanding loans and advances are reported at cost and do not carry any interest.
Summary of outstanding balance as of December 31, 2023 of interest free loans issued to shareholders is as follows:
Loan To Shareholders
| Ajay Sunkara | 99,978.84 |
|---|---|
| Anil Sunkara | 40,000.00 |
| Anil Uppalapati | 39,500.00 |
| Lakshmi Boppana | 20,200.00 |
199,678.84
NOTE 9 – RELATED PARTY TRANSACTIONS
All the related party transactions during the year 2023 & Balances as on Dec 31st, 2023 are reported under Audit report annexure titled - "Related Party Disclosures"
NOTE 10 - SHAREHOLDER DISTRIBUTIONS
Shareholders drawings were $ 64,700 for the year 2023. No 1099-Dividend statement has been issued for it.
NOTE 11 - SBA/PPP LOANS
The Corporation also rec
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 42)
What This Means (2025 FDD)
According to Best Brains' 2025 Franchise Disclosure Document, related party transactions for the year 2023, along with balances as of December 31, 2023, are detailed in the audit report annexure specifically titled "Related Party Disclosures". This annexure is part of the notes to the financial statements.
Specifically, the annexure includes details of transactions with related parties during the year ended December 31, 2023, presented in U.S. dollars. These transactions include the purchase of materials or services from entities such as Best Brains India ($1,096,075.00), Advansoft International Inc ($898,225.00), Advansoft India ($661,500.00), A1 Kaiser ($97,375.08), Best Brains of Schaumburg, INC ($86,000.00), and Adventures India Pvt. Ltd. The annexure also lists sales of materials or services to Best Brains of Schaumburg, INC ($29,258.49), Best Brains- Canada ($460,145.82), and Nala Robotics ($74,355.12).
Additionally, the annexure provides information on receivables and payables from/to related parties as of December 31, 2023, including Best Brains Online Learning. Reviewing these disclosures is crucial for prospective franchisees to understand the financial relationships Best Brains has with other entities, which could impact the franchise's operations and financial stability.