What is the time period considered when evaluating Bombs Away's ability to continue as a going concern?

According to Bombs Away's 2024 Franchise Disclosure Document, when preparing financial statements, the company's management must evaluate whether any conditions or events raise substantial doubt about the company's ability to continue operating as a going concern. This evaluation considers a period of one year after the date the financial statements are available to be issued.

This evaluation is crucial for prospective franchisees because it assesses the financial stability of Bombs Away. If there are significant doubts about the company's ability to continue as a going concern, it could indicate financial risks that might affect the support and services Bombs Away can provide to its franchisees. This also impacts the overall stability and reputation of the franchise system.

The independent auditor also has a responsibility to conclude whether any conditions or events raise substantial doubt about Bombs Away's ability to continue as a going concern for a reasonable period of time. The auditor's report, along with management's assessment, provides an overview of the financial health and sustainability of Bombs Away, offering potential franchisees insight into the risks associated with investing in the franchise.

Bombs Away's financial statements for the year ended December 31, 2023, were available to be issued as of February 8, 2024. Therefore, the going concern evaluation would cover the period until February 8, 2025. This forward-looking assessment helps in understanding the potential financial challenges Bombs Away might face and its ability to meet its obligations and support its franchisees in the near term.