factual

What was the total amount of Best Brains' other current liabilities as of December 31, 2023?

Best_Brains Franchise · 2025 FDD

Answer 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

Source: Item 21 — FINANCIAL STATEMENTS (FDD page 42)

What This Means (2025 FDD)

According to Best Brains' 2025 Franchise Disclosure Document, the company's other current liabilities totaled $170,701 as of December 31, 2023. This figure is part of the company's overall financial snapshot, providing a view of its short-term financial obligations.

Breaking down the components of other current liabilities offers further insight. As of December 31, 2023, Best Brains' other current liabilities included credit card liabilities, franchise fees advance, audit fees payable, and payroll liabilities. The total credit card liabilities amounted to $82,455.73. Franchise fees advance were $162,500.00, audit fees payable were $19,050.00, and total payroll liabilities were $12409.52.

Prospective franchisees should understand the nature of these liabilities. Credit card liabilities reflect short-term debts, while franchise fees advance likely represent payments received for future franchise services. Audit fees payable indicate outstanding costs for auditing services, and payroll liabilities cover unpaid wages and related expenses. Monitoring these liabilities is crucial for assessing Best Brains' financial health and stability. A significant increase in these liabilities could signal potential financial strain, while consistent and manageable levels suggest sound financial management.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.