What was the amount of accrued expenses for Buildingstars in 2022?
Buildingstars Franchise · 2025 FDDAnswer 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 | |||
| Common stock - no par value; | |||
| authorized and i |
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.