What was the goodwill, net of accumulated amortization, for C12 Group in 2022?
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 receivable | 592,343 | 535,847 |
| Notes receivable, current portion | 111,967 | B |
| Supply inventory | 209,905 | 169,408 |
| Prepaid expenses | 50,538 | 50,152 |
| Total current assets | 2,806,115 | 2,688,776 |
| Property and Equipment: | ||
| Office furniture, fixtures and equipment | 76,140 | 76,140 |
| Less accumulated depreciation | (42,603) | (31,726) |
| Net property and equipment | 33,537 | 44,414 |
| Other Assets: | ||
| Goodwill, net of accumulated amortization | 83,966 | 176,823 |
| Website and applications, net of accumulated amortization | 383,284 | 306,851 |
| Right-of-use operating lease assets | 163 |
Source: Item 22 — CONTRACTS (FDD page 46)
What This Means (2025 FDD)
According to C12 Group's 2025 Franchise Disclosure Document, the goodwill, net of accumulated amortization, was $176,823 in 2022. This figure represents the remaining value of acquired assets after accounting for amortization, which is the systematic reduction of the asset's value over its useful life. Goodwill typically arises when C12 Group acquires another business, reflecting the intangible value such as brand reputation and customer relationships.
For a prospective C12 Group franchisee, understanding the goodwill and its amortization can be important for assessing the financial health and acquisition strategies of the company. The fact that goodwill is amortized over a 10-year period, with an expected annual amortization of $11,995 through 2031, provides insight into how C12 Group accounts for its acquisitions. The write-off of $80,862 in goodwill related to the sale of C12 Atlanta in 2023 also demonstrates how business decisions can impact the company's asset values.
It's worth noting that goodwill is an intangible asset, and its value can be subjective. While the net goodwill figure provides a snapshot of the company's financial position, potential franchisees should also consider the underlying factors that contribute to goodwill, such as brand strength and market position. Reviewing the company's financial statements and understanding its accounting policies can help franchisees make informed decisions about their investment.