December 31, 2024, 2023, and 2022

Note 1 - Nature of Business

BB Franchising, LLC (the "Company"), a Delaware limited liability company, was formed on November 13, 2007 as a wholly owned subsidiary of Brain Balance Holdings, Inc. (the "Parent"). At December 31, 2024, the Parent also owns BB Corporate, LLC. The Parent provides funds for operational needs of the Company. The operating results could vary significantly if the Company operated independently of the Parent. Accordingly, this affiliation and other related party disclosures must be taken into consideration in reviewing the accompanying financial statements.

The Company is the franchisor of learning centers operating under the trade name Brain Balance Achievement Centers throughout the United States of America. Pursuant to the Company's standard franchise agreement, franchisees operate businesses known as Brain Balance Achievement Centers, offering effective and replicable nonmedical, nonpharmaceutical programs designed to help children become more focused, improve their academic performance, and exhibit positive behavior, which results in enhanced communication and social interaction skills.

Note 2 - Significant Accounting Policies

Use of Estimates

The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates.

Accounts Receivable

EXHIBIT C FINANCIAL STATEMENTS

These Financial Statements Have Been Prepared without an Audit. Prospective Franchisees or Sellers of Franchises Should be Advised that No Independent Certified Public Accountant Has Audited These Figures or Expressed an Opinion with Regard to their Content or Form.

Source: Item 21 — FINANCIAL STATEMENTS (FDD page 70)