What is the current portion of notes receivable for C12 Group in 2024?
C12_Group Franchise · 2025 FDDAnswer from 2025 FDD Document
indings, and certain internal control related matters that we identified during the audit.
ADKF, P.C.
San Antonio, Texas
ADKF,PC
March 21, 2025
THE C12 GROUP, LLC Balance Sheets December 31, 2024 and 2023
| ASSETS | 2024 | 2023 |
|---|---|---|
| Current Assets: | ||
| Cash and cash equivalents | $ 1,641,633 | $ 1,601,398 |
| Restricted cash | 1,387,034 | 239,964 |
| Total cash | 3,028,667 | 1,841,362 |
| Accounts receivable | 865,442 | 592,343 |
| Notes receivable, current portion | 8 | 111,967 |
| Supply inventory | 184,109 | 209,905 |
| Prepaid expenses | 691,068 | 50,538 |
| Total current assets | 4,769,286 | 2,806,115 |
| Property and Equipment: | ||
| Office furniture, fixtures and equipment | 76,140 | 76,140 |
| Less accumulated depreciation | (53,480) | (42,603) |
| Net property and equipment | 22,660 | 33,537 |
| Other Assets: | ||
| Goodwill, net of accumulated amortization | 71,971 | 83,966 |
| Website and applications, net of accumulated amortization | 364,493 | 383,284 |
| Right-of-use operating leas |
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 is reported as $8 in 2024. This is in contrast to $111,967 in 2023.
This figure represents the amount of notes receivable that C12 Group expects to collect within one year from the balance sheet date. Notes receivable typically arise from the sale of a business or services where payments are deferred over a period of time. The significant decrease from 2023 to 2024 suggests that C12 Group collected a substantial portion of its outstanding notes receivable during 2024.
A prospective franchisee should investigate the reason for this large decrease. Understanding the nature of these notes and the collection terms is important. It would be prudent to ask C12 Group about the specific transactions that generated these notes receivable and to review the payment history to assess the risk and timing of future collections.