What was the amortization expense for Buildingstars for the year ended December 31, 2022?

According to Buildingstars's 2025 Franchise Disclosure Document, the amortization expense for the years ended December 31, 2024, 2023 and 2022 was $98,726, $106,297, and $66,074, respectively. This figure represents the expense recognized from amortizing assets over their useful life. Amortization is the gradual reduction of the book value of an intangible asset, such as a patent or a trademark. It is similar to depreciation, which is used for tangible assets.

For a prospective Buildingstars franchisee, understanding amortization expense is crucial for assessing the company's financial health and profitability. Amortization can impact the net income reported by Buildingstars, which is a key metric for evaluating its financial performance. A higher amortization expense can reduce net income, while a lower expense can increase it.

It is important to note that amortization is a non-cash expense, meaning it does not involve an actual outflow of cash. However, it still affects the company's taxable income and can have implications for its tax liability. Franchisees should consider amortization expense when analyzing Buildingstars's financial statements and making investment decisions.