What was the change in cash and cash equivalents for C12 Group in 2023?
C12_Group Franchise · 2025 FDDAnswer from 2025 FDD Document
1, 2022 | 1,843,880 | | Net income | 1,125,446 | | Distributions | (280,216) | | Balance at December 31, 2023 | $ 2,689,110 | THE C12 GROUP, LLC Statements of Cash Flows Years Ended December 31, 2023 and 2022
| 2023 | 2022 | |
|---|---|---|
| Operating Activities | 8 | |
| Net income | $ 1,125,446 | $ 640,867 |
| Adjustments to reconcile net income to net | ||
| cash provided by operating activities: | ||
| Depreciation | 10,877 | 79,368 |
| Amortization | 104,441 | 22,103 |
| Gain from sale of subsidiary | (276,066) | ~ |
| Changes in operating assets and liabilities: | ||
| Accounts receivable | (56,496) | (84,865) |
| Supplies inventory | (40,497) | (63,920) |
| Prepaid expenses | (386) | 12,669 |
| Operating lease right-of-use asset | 139,987 | 124,177 |
| Accounts payable | (32,396) | 51,858 |
| Accrued expenses | (40,024) | (1,643) |
| Operating lease righ-of-use liability | (129,948) | (131,509) |
| Other assets | (3,669) | |
| Unearned revenue | (675,786) | 815,784 |
| Net cash provided by operating activities | 125,483 | 1,464,889 |
| Investing Activities | ||
| Purchases of property and equipment | (168,879) | (102,668) |
| Repayments on related party note receivable | 231,605 | |
| Net cash provided (used) by investing activities | 62,726 | (102,668) |
| Financing Activities | ||
| Distributions | (280,216) | (109,518) |
| Net cash (used) by financing activities | (280,216) | (109,518) |
| Change in cash and cash equivalents | (92,007) | 1,252,703 |
| Cash and cash equivalents at beginning of year | 1,933,369 | 680,666 |
| Ca |
Source: Item 22 — CONTRACTS (FDD page 46)
What This Means (2025 FDD)
According to C12 Group's 2025 Franchise Disclosure Document, the change in cash and cash equivalents in 2023 was a decrease of $92,007. This means that C12 Group's cash and cash equivalents decreased from the beginning of the year to the end of the year. At the beginning of 2023, C12 Group had cash and cash equivalents totaling $1,933,369, and by the end of the year, that amount decreased to $1,841,362.
This decrease in cash and cash equivalents could be due to a variety of factors, such as increased expenses, decreased revenue, or investments in the business. However, the decrease was offset by net income of $1,125,446. It is important to note that a decrease in cash and cash equivalents does not necessarily indicate financial instability, but it is something that prospective franchisees should be aware of and investigate further.
For a prospective C12 Group franchisee, understanding these cash flow dynamics is crucial. While the company remained profitable, the decrease in cash reserves suggests careful financial management is necessary. This information allows potential franchisees to ask informed questions about C12 Group's financial strategies and how they might impact the franchisee's own business operations and support from the franchisor.