What was the goodwill, net of accumulated amortization, 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 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 $83,966 in 2023. This figure represents the remaining value of goodwill after accounting for its amortization, which is the systematic reduction of its value over time. Goodwill itself arises from the acquisition of assets where the purchase price exceeds the fair value of those assets.
For a prospective C12 Group franchisee, understanding goodwill and its amortization can be important for assessing the financial health and stability of the franchisor. A significant write-off of goodwill, as seen with the sale of C12 Atlanta in 2023, can indicate changes in the business structure or strategy.
The FDD also notes that goodwill is amortized over a 10-year period, with annual amortization expected to be $11,995 through 2031. This consistent amortization schedule provides a predictable expense for the company. Reviewing these figures in the context of C12 Group's overall financial statements can offer insights into the company's asset management and financial planning.