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What was the amount of accrued expenses for Buildingstars in 2022?

Buildingstars Franchise · 2025 FDD

Answer from 2025 FDD Document

and timing of the audit, significant audit findings, and certain internal control related matters that we identified during the audit.

St. Louis, Missouri March 11, 2025

BUILDINGSTARS INTERNATIONAL, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS

2024 2023 2022
ASSETS
CURRENT ASSETS
Cash $ 4,817,525 $ 4,106,102 $ 2,863,264
Accounts receivable 3,264,125 3,857,717 3,666,318
Notes receivable 2,419,327 1,894,350 1,379,360
Prepaid expenses and other 388,221 368,669 325,894
Total current assets 10,889,198 10,226,838 8,234,836
PROPERTY AND EQUIPMENT 41,211 28,489 48,276
OTHER ASSETS
Due from related parties 646,887 509,542 646,430
Right-of-use asset - finance 919,465 577,771 566,597
Right-of-use asset - operating 1,303,904 1,250,416 546,656
Goodwill 602,245 700,971 807,268
Other 60,082 35,727 41,871
3,532,583 3,074,427 2,608,822
$ 14,462,992 $ 13,329,754 $ 10,891,934
LIABILITIES AND STOCKHOLDER'S EQUITY
CURRENT LIABILITIES
Current portion of finance lease obligation $ 232,039 $ 187,703 $ 218,930
Current portion of operating lease obligation 305,410 382,518 306,932
Accounts payable 4,328,563 3,992,944 3,649,729
Accrued expenses 1,673,908 1,404,337 1,242,805
Deferred franchise sales revenue 2,282,610 1,791,976 1,303,103
Due to related parties 813,759 12,090 219,947
Total current liabilities 9,636,289 7,771,568 6,941,446
LONG-TERM LIABILITIES
Finance lease obligation 128,083 371,548 303,135
Operating lease obligation 1,009,346 869,598 243,591
1,137,429 1,241,146 546,726
STOCKHOLDER'S EQUITY
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Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 34–43)

What This Means (2025 FDD)

According to Buildingstars's 2025 Franchise Disclosure Document, the accrued expenses for the company in 2022 were $1,242,805. This figure is part of the company's consolidated balance sheets, reflecting their financial position at the end of the year. Accrued expenses typically include obligations that Buildingstars has incurred but not yet paid, such as salaries, utilities, or rent. This liability represents part of the total current liabilities, which amounted to $6,941,446 in 2022.

For a prospective Buildingstars franchisee, understanding the accrued expenses is crucial as it provides insight into the company's short-term financial obligations. A high level of accrued expenses relative to assets could indicate potential cash flow issues, while a stable or decreasing level might suggest efficient financial management. Reviewing these figures over several years, as presented in the consolidated statements, can reveal trends and patterns in Buildingstars's expense management.

It's also important to note that these figures are part of the consolidated financial statements, which include Buildingstars International, Inc. and its subsidiaries. Therefore, the accrued expenses reflect the combined obligations of the parent company and its related entities. Franchisees should consider these figures in the context of the overall financial health of the Buildingstars organization, as assessed by the independent auditor's report included in the FDD.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.