What was the net value of C12 Group's goodwill, net of accumulated amortization, in 2023?
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 net value of goodwill, after accounting for accumulated amortization, was $83,966 in 2023. This figure represents the remaining value of goodwill on C12 Group's balance sheet after deducting the amortization expense recognized up to that point in time. Goodwill typically arises from acquisitions, representing the excess of the purchase price over the fair value of identifiable net assets acquired. It is an intangible asset that reflects the value of a company's brand reputation, customer relationships, and other factors that are not separately identifiable.
The FDD also notes that C12 Group sold C12 Atlanta in 2023, resulting in a write-off of $80,862 in goodwill related to that subsidiary. This event likely impacted the overall goodwill balance reported at the end of 2023. The accumulated amortization of goodwill totaled $35,986 as of December 31, 2023. Amortization is the systematic allocation of the cost of an intangible asset over its useful life, which for goodwill is 10 years.
For a prospective franchisee, understanding the goodwill and amortization figures can provide insights into C12 Group's past acquisition activities and how they are accounted for. It's important to note that goodwill is subject to impairment testing, and if its value is deemed to be impaired, it could result in a write-down, affecting the company's financial position. Reviewing these figures in conjunction with other financial statement items can help a franchisee assess the financial health and stability of C12 Group.