What was the deemed dividend, net, for Brightstar Care in the fiscal year ended 2023?
Brightstar_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
| Fiscal year ended | 2023 | 2023 |
|---|---|---|
| Cash Flows from Operating Activities | ||
| Net income | $ 17,922,426 | $ 12,872,990 |
| Adjustments to reconcile net income to net cash | ||
| provided by operating activities: | ||
| Depreciation and amortization expense | 1,992,427 | 1,741,168 |
| Bad debt expense | 344,476 | 255,220 |
| Non-cash change in operating leases | 405,955 | 329,349 |
| Net change in assets and liabilities: | ||
| Accounts receivable | (1,159,680) | 112,251 |
| Prepaid expenses | (894,269) | (16,245) |
| Inventory | 74,793 | 3,830 |
| Other current assets | 289,201 | (339,327) |
| Operating lease liabilities | (482,686) | (440,160) |
| Accounts payable | 102,163 | 1,085,594 |
| Accrued salaries and payroll tax | 614,843 | (990,600) |
| Other current liabilities | 252,188 | 98,225 |
| Net Cash Provided by Operating Activities | 19,461,837 | 14,712,295 |
| Cash Flows from Investing Activities | ||
| Notes receivable - affiliated companies | (16,272,451) | (21,026,205) |
| Purchase of property and equipment | (2,939,036) | (2,978,301) |
| Net Cash Used in Investing Activities | (19,211,487) | (24,004,506) |
| Net Increase (Decrease) in Cash and Cash Equivalents | 250,350 | (9,292,211) |
| Cash and Cash Equivalents, beginning of year | 16,868 | 9,309,079 |
| Cash and Cash Equivalents, end of year | $ 267,218 | $ 16,868 |
| Supplemental Non-Cash Disclosures | ||
| Deemed dividend, net | $ (24,307,339) | $ (18,934,514) |
Source: Item 23 — RECEIPTS (FDD pages 118–387)
What This Means (2025 FDD)
According to Brightstar Care's 2025 Franchise Disclosure Document, the deemed dividend, net, for the fiscal year ended 2023 was $(24,307,339). This figure is part of the supplemental non-cash disclosures within the cash flow statement.
A deemed dividend represents a distribution of value from Brightstar Care to its owners, even though it's not a direct cash payment. This can occur through various accounting adjustments and transactions. The negative value indicates that the deemed dividend resulted in a decrease in cash flow during that period.
For a prospective Brightstar Care franchisee, this information provides insight into the financial management and capital structure of the company. While deemed dividends don't directly impact day-to-day operations of a franchise, they reflect how the company's profits are allocated and reinvested. Understanding these financial details can help franchisees assess the overall financial health and stability of Brightstar Care.
It is important to note that the deemed dividend is a non-cash item, meaning it doesn't involve an actual outflow of cash. Instead, it's an accounting adjustment that reflects changes in the company's equity or capital structure. Franchisees should consider this figure in conjunction with other financial metrics to gain a comprehensive understanding of Brightstar Care's financial performance.