What was the net value of Brightstar Care's property and equipment as of January 1, 2023?
Brightstar_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
255,071 | | Prepaid deposits | 720,195 | 29,181 | | Total Prepaid Expenses | $ 1,782,560 | $ 888,291 |
5. Property and Equipment
| December 31, 2023 | January 1, 2023 | |
|---|---|---|
| Office equipment | $ 1,712,982 | $ 1,712,982 |
| Technology costs, including internally developed software | 22,244,161 | 19,767,956 |
| Website development costs | 1,510,147 | 1,047,316 |
| Leasehold improvement | 160,683 | 160,683 |
| 25,627,973 | 22,688,937 | |
| Less: |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 117)
What This Means (2025 FDD)
According to Brightstar Care's 2025 Franchise Disclosure Document, the net value of their property and equipment as of January 1, 2023, was $7,605,214. This figure represents the historical cost of Brightstar Care's property and equipment, less accumulated depreciation and amortization.
Brightstar Care calculates depreciation using the straight-line method over the estimated useful lives of the assets, which range from three to seven years, or the life of the lease. The company also evaluates its property and equipment for impairment, recognizing a loss if the carrying amount is not recoverable. However, no impairment was identified as of December 31, 2023, or January 1, 2023.
The assets that comprise property and equipment include office equipment, technology costs (including internally developed software), website development costs, and leasehold improvements. As of January 1, 2023, the gross value of these assets totaled $22,688,937 before a reduction of $15,083,723 for accumulated depreciation and amortization, resulting in the net value of $7,605,214.