What was the value of website and applications, 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
- 2 -
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 value of website and applications, net of accumulated amortization, was $306,851 as of December 31, 2022. This figure represents the book value of C12 Group's capitalized website and application development costs, less the total amortization expense recognized up to that date. These assets are amortized using the straight-line method over a five-year life.
For a prospective C12 Group franchisee, this indicates the level of investment C12 Group has made in its digital infrastructure. The website and applications are likely critical tools for managing member relationships, delivering services, and supporting the franchise network. Understanding the ongoing investment in these assets can give a franchisee insight into C12 Group's commitment to technology and its potential impact on their business operations.
It's important to note that this value is net of accumulated amortization, meaning it reflects the remaining value of the asset after accounting for depreciation. The original cost of the website and applications would have been higher. Reviewing the accumulated amortization schedule can provide a more complete picture of the asset's lifespan and potential future investments. Franchisees may want to inquire about planned upgrades or enhancements to the website and applications, as these could impact their ability to effectively manage and grow their C12 Group franchise.