What was the reported amount of Prepaid Expenses for Brain Balance in the second period presented?
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 |
Source: Item 23 — RECEIPTS (FDD pages 72–292)
What This Means (2025 FDD)
According to Brain Balance's 2025 Franchise Disclosure Document, the changes to prepaid expenses and other assets for the period ending December 31, 2023, was reported as a negative $10,615. This figure is part of the cash flow statement, detailing changes in operating assets and liabilities.
This number reflects the net change in the company's prepaid expenses and other assets during that year. Prepaid expenses are costs that Brain Balance has paid in advance for goods or services to be received in the future, such as insurance premiums or rent. An increase in prepaid expenses would mean the company paid more upfront, while a decrease suggests that the company used up previously purchased services or assets.
For a prospective franchisee, this information provides insight into how Brain Balance manages its cash flow and short-term assets. Monitoring these changes over multiple periods can reveal trends in the company's financial management practices. It is important to note that this figure is part of the overall financial health assessment and should be considered alongside other financial metrics.