Were there any assets of Bhc deemed impaired, leading to an impairment loss, during the period mentioned?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
with FASB ASC 740. The Company had income tax benefits of $427,406 from its net loss from continuing operations during 2024. Likewise, deferred tax assets which represent future tax benefits as of December 31, 2024 would have been $664,576. However, the income tax benefits as well as the deferred tax assets were fully offset by valuation adjustment resulting in no tax benefit and deferred tax assets presented on the face of the financial statements. The valuation allowance balances were $227,030 and $664,576, as of December 31, 2023 and 2024, respectively. There was no income or loss from discontinued operations or comprehensive income that affected the tax benefit amount.
As of December 31, 2024, the Company has investments to its subsidiaries BHC Farmers and BHC Chapman in the amount of $1,400,000 each.
There were no items of other comprehensive income since the inception of the Company including 2024.
Source: Item 23 — Receipts (FDD pages 52–230)
What This Means (2025 FDD)
According to Bhc's 2025 Franchise Disclosure Document, the company addresses advertising costs and their potential impairment. Bhc expenses advertising costs as they are incurred, unless these costs can be justifiably capitalized. If capitalized, these advertising costs are subject to impairment review. For the year ending December 31, 2024, Bhc incurred advertising costs of $360,537.
Additionally, the document discusses income taxes and deferred tax assets. Bhc had income tax benefits of $427,406 from its net loss from continuing operations during 2024. Deferred tax assets, representing future tax benefits as of December 31, 2024, would have been $664,576. However, these benefits and assets were fully offset by a valuation adjustment, resulting in no tax benefit and deferred tax assets presented on the financial statements. The valuation allowance balances were $227,030 and $664,576 as of December 31, 2023 and 2024, respectively.
The document also states that as of December 31, 2024, Bhc has investments in its subsidiaries, BHC Farmers and BHC Chapman, in the amount of $1,400,000 each. These investments, along with other intercompany transactions, are properly accounted for. There were no items of other comprehensive income since the inception of the company, including 2024.