What was the income tax benefit for Bhc from its net loss from continuing operations during 2024?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
of rental expenses for its two retail stores in 2024 based on the actual lease payments in 2024.
NOTE 7 Advertising
The Company principally expenses advertising costs as they incur unless the advertising can be justifiably capitalized. Such capitalized advertising will be subject to impairment review and expenses rationally. The Company incurred advertising cost in the amount of $360,537 for the year ended December 31, 2024.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2024
NOTE 8 Commitments and Contingencies
there are no known claims and pending legal actions against the Company incidental to and arising out of the ordinary course of the busine
Source: Item 23 — Receipts (FDD pages 52–230)
What This Means (2025 FDD)
According to Bhc's 2025 Franchise Disclosure Document, the company experienced an income tax benefit of $427,406 from its net loss from continuing operations during 2024. The document also indicates that deferred tax assets, representing future tax benefits as of December 31, 2024, amounted to $664,576.
However, the income tax benefits and deferred tax assets were fully offset by a valuation adjustment. This adjustment resulted in no tax benefit and no deferred tax assets being presented on the financial statements.
The valuation allowance balances were $227,030 as of December 31, 2023, and increased to $664,576 as of December 31, 2024. The document specifies that there was no income or loss from discontinued operations or comprehensive income that affected the tax benefit amount.