What financial instruments does C12 Group have?
C12_Group Franchise · 2025 FDDAnswer from 2025 FDD Document
| Weighted Average Remaining Lease Term (years) Operating leases | ||
|---|---|---|
| Weighted Average Discount Rate Operating leases The maturities of lease liabilities as of December 31, 2022 were as follows: | 0.06% | |
| 2023 | $ | 131,708 |
| 2024 | 131,708 | |
| 2025 | 32,926 | |
| 2026 | Thereafter | - - |
9. Concentration of Credit Risk of Financial Instruments
Financial instruments that potentially subject the Company to concentrations of credit risk consist of its cash balances at the banks if such balances exceed the amount insured by Federal Deposit Insurance Corporation (FDIC). Accounts at the institutions are insured by the FDIC up to $250,000. At December 31, 2022 and 2021, the cash balance at the Company's financial institution did exceed the FDIC limit by $1,695,701 and $425,733 respectively. The Compa
Source: Item 22 — CONTRACTS (FDD page 46)
What This Means (2025 FDD)
According to the 2025 FDD, C12 Group's financial instruments primarily consist of cash balances held at banks. A significant portion of these cash balances exceeded the coverage provided by the Federal Deposit Insurance Corporation (FDIC) in both 2022 and 2021. Specifically, the cash balance exceeded the FDIC limit by $1,695,701 in 2022 and $425,733 in 2021. Despite these amounts exceeding the insured limit, C12 Group's management indicated they had not experienced any losses related to these accounts and believed they were not exposed to significant risk concerning their cash and cash equivalents.
Additionally, the 2025 FDD mentions lease liabilities as another financial instrument. The present value of these lease liabilities is reported as $296,134 after deducting interest of $208 from the total lease payments of $296,342. This indicates that C12 Group has obligations related to leased assets, which are accounted for as liabilities on their balance sheet.
In summary, C12 Group's financial instruments include cash balances, which at times exceed FDIC insurance limits, and lease liabilities. Prospective franchisees should be aware of how C12 Group manages its cash and other financial obligations, as this can provide insights into the company's financial health and risk management practices. Understanding these aspects can help franchisees assess the stability and reliability of C12 Group as a franchisor.