What was the total value of C12 Group's other assets in 2022?
C12_Group Franchise · 2025 FDDAnswer from 2025 FDD Document
Depreciation is provided at amounts calculated to amortize the cost of the assets over their estimated useful economic lives using straight line, generally with lives ranging from three to seven years.
Goodwill: Goodwill represents the cost of assets acquired in excess of fair value. Goodwill is amortized over a 10 year period. Amortization is expected to be $11,995 annually through 2031. Accumulated amortization totaled $47,981 at December 31, 2024 and $35,986 at December 31, 2023. As a result of the sale of C12 Atlanta in 2023, the Company wrote off $80,862 in goodwill related to that subsidiary.
Website and Applications: The Company has capitalized costs for the development and implementation of their website and application for the use by Chairs and members. Additional functionalities have been added and capitalized. These intangible assets are amortized using the straight-line method over a five-year life. Accumulated amortization totaled $308,762 at December 31, 2024 and $185,725 at December 31, 2023.
Unearned Revenue: The Company receives prepayments for sponsorship and ticket sales to its bi-annual conference. The revenue is recognized when the revenue cycle is completed. Customer deposits totaled $914,503, the beginning of the earliest year presented.
Leases: Operating leases with terms of greater than 12 months are recognized as lease assets and obligations at the lease commencement date based on the present value of lease payments over the term of the lease. The Company has elected to not separate lease and non-lease components. The Company utilizes the risk-free discount rate, according to the Company's elected policy for this class of assets.
Source: Item 22 — CONTRACTS (FDD page 46)
What This Means (2025 FDD)
Based on the 2025 Franchise Disclosure Document, determining the total value of C12 Group's other assets in 2022 requires a review of their consolidated balance sheets. While the document includes balance sheets from December 31, 2023, and 2022, it does not explicitly list a single line item for "other assets." Instead, asset values are broken down into categories such as cash, accounts receivable, prepaid expenses, and intangible assets like goodwill and website/application costs. To calculate the total "other assets," one would need to sum the values of all asset categories excluding those typically classified as current assets (e.g., cash, accounts receivable).
For instance, the FDD mentions that at December 31, 2022, C12 Group had accumulated amortization of goodwill totaling $23,990 and accumulated amortization for website and applications totaling $152,530. These figures represent reductions in the value of those specific intangible assets. The cash balance at the Company's financial institution did exceed the FDIC limit by $1,695,701. To arrive at a comprehensive figure for other assets, a prospective franchisee would need to consult the full balance sheet data, which is not fully provided in the excerpts.
Therefore, a potential franchisee should request a complete copy of C12 Group's audited balance sheets for 2022 from the franchisor. This will provide a clear breakdown of all asset categories, allowing for an accurate calculation of total assets beyond standard current assets. Understanding the composition and valuation of these assets is crucial for assessing the financial health and stability of C12 Group.