What is the current portion of notes receivable for C12 Group in 2023?
C12_Group Franchise · 2025 FDDAnswer from 2025 FDD Document
dings, and certain internal control related matters that we identified during the audit.
ADKF, P.C. San Antonio, Texas March 25, 2024
ADKF,PC
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THE C12 GROUP, LLC Balance Sheets December 31, 2023 and 2022
| ASSETS | 2023 | 2022 |
|---|---|---|
| Current Assets: | ||
| Cash and cash equivalents | $ 1,601,398 | $ 1,015,305 |
| Restricted cash | 239,964 | 918,064 |
| Total cash | 1,841,362 | 1,933,369 |
| Accounts rece |
Source: Item 22 — CONTRACTS (FDD page 46)
What This Means (2025 FDD)
According to C12 Group's 2025 Franchise Disclosure Document, the current portion of notes receivable for 2023 is $111,967. This figure represents the amount of notes receivable that C12 Group expects to collect within the next year, indicating short-term assets that are anticipated to be converted into cash. Notes receivable are amounts owed to C12 Group by its franchisees or other parties, typically arising from the sale of a business entity, such as the sale of the C12 Atlanta entity to a franchisee in January 2023.
The current portion of notes receivable is a key component of C12 Group's current assets, which totaled $2,806,115 in 2023. Understanding the nature and collectability of these notes is important for assessing the company's short-term financial health and liquidity. A high value of current notes receivable suggests that C12 Group relies on these payments to meet its immediate financial obligations. Conversely, a low or decreasing value might indicate challenges in collecting payments or a shift in the company's financing strategies.
Prospective franchisees should pay close attention to the trends in notes receivable, as they can provide insights into the financial stability and operational practices of C12 Group. It is advisable to inquire about the terms and conditions of these notes, the creditworthiness of the parties involved, and the company's historical collection rates. Additionally, comparing the current portion of notes receivable to other current assets and liabilities can offer a more comprehensive view of C12 Group's financial position.