What were the payments on debt for Brain Balance in 2024?
Brain_Balance Franchise · 2025 FDDAnswer from 2025 FDD Document
| Years Ended December 31, 2024, 2023, and 2022 | ||||
|---|---|---|---|---|
| 2024 | 2023 | 2022 | ||
| Cash Flows from Operating Activities | ||||
| Net (loss) income | $(324,837) $ | 161,876 $ | 307,374 | |
| Adjustments to reconcile net (loss) income to net cash and | ||||
| restricted cash from operating activities: | ||||
| Depreciation and amortization | 49,819 | 29,920 | 24,806 | |
| Credit loss expense | 59,741 | 5,560 | - | |
| Changes in operating assets and liabilities that (used) | ||||
| provided cash and restricted cash: | ||||
| Accounts receivable | (126,097) | 42,623 | (75,804) | |
| Deferred franchise costs | 20,050 | 23,393 | 19,952 | |
| Prepaid expenses and other assets | (33,382) | (10,615) | 53,332 | |
| Accounts payable and accrued expenses | (66,584) | (46,246) | 81,063 | |
| Deferred revenue | 16,809 | (89,332) | (96,172) | |
| Accrued advertising expenses | (56,130) | (98,824) | 84,461 | |
| Net cash and restricted cash (used in) provided | ||||
| by operating activities | (460,611) | 18,355 | 399,012 | |
| Cash Flows from Investing Activities | ||||
| Issuance of notes receivable | (61,946) | - | - | |
| Purchases of website and software development assets | (52,423) | (146,179) | (41,022) | |
| Payments on notes receivable | 31,221 | - | 20,000 | |
| Net cash and restricted cash used in investing | ||||
| activities | (83,148) | (146,179) | (21,022) | |
| Cash Flows from Financing Activities | ||||
| Advance to related party | - | - | (422,848) | |
| Payments on debt | (3,515) | (7,507) | (3,006) | |
| Member contribution | 539,393 | 109,029 | - | |
| Net cash and restricted cash provided by (used | ||||
| in) financing activities | 535,878 | 101,522 | (425,854) | |
| Net Decrease in Cash and Restricted Cash | (7,881) | (26,302) | (47,864) | |
| Cash and Restricted Cash - Beginning of year | 155,826 | 182,128 | 229,992 | |
| Cash and Restricted Cash - End of year | $147,945 $ | 155,826 $ | 182,128 | |
| Classification of Cash and Restricted Cash | ||||
| Cash | $64,403 $ | 21,796 $ | 61,068 | |
| Restricted cash | 83,542 | 134,030 | 121,060 | |
| $147,945 $ | 155,826 $ | 182,128 | ||
| Total cash and restricted cash | ||||
| Supplemental Cash Flow Information - Cash paid for interest | $5,988 $ | 5,671 $ | 5,784 | |
| Significant Noncash Transactions - Amounts advanced to | ||||
| related parties in 2022 and reclassified as distributions in 2022 | $ | - $ | - $ | 422,848 |
Source: Item 23 — RECEIPTS (FDD pages 72–292)
What This Means (2025 FDD)
According to Brain Balance's 2025 Franchise Disclosure Document, the payments on debt for the company in 2024 were $3,515. This figure is part of the cash flow statement, which provides an overview of the company's financial transactions during the specified period. The cash flow statement categorizes these transactions into operating, investing, and financing activities. Payments on debt are classified under cash flows from financing activities. This indicates the amount of cash Brain Balance used to reduce its outstanding debt obligations during the year.
For a prospective franchisee, understanding the franchisor's debt payments can offer insights into the financial health and stability of the company. Consistent and manageable debt payments suggest that the company is capable of meeting its financial obligations. However, it is important to consider this figure in conjunction with other financial metrics, such as revenue, net income, and total debt, to gain a comprehensive understanding of the company's financial situation.
It's also worth noting that the cash flow statement includes other relevant financial activities, such as net loss, depreciation and amortization, changes in accounts receivable, and member contributions. These figures can provide additional context for evaluating the overall financial performance of Brain Balance. Reviewing these figures in detail can help potential franchisees assess the financial risks and opportunities associated with investing in a Brain Balance franchise.
Franchisees should also compare these figures with previous years to identify any trends or significant changes in the company's financial performance. A thorough review of the franchisor's financial statements is a crucial step in the due diligence process for any prospective franchisee.