What was the total gross notes receivable for Chem Dry in 2021?
Chem_Dry Franchise · 2024 FDDAnswer from 2024 FDD Document
in the aggregate, that raise substantial doubt about the Company's ability to continue as a going concern for a reasonable period of time.
We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audits, significant audit findings, and certain internal control-related matters that we identified during the audits.
March 22, 2024
Consolidated Balance Sheet
December 31, 2023, 2022, and 2021
| 2023 | 2022 | 2021 | |
|---|---|---|---|
| (As Restated) | |||
| Assets | |||
| Current Assets | |||
| Cash | $ 3,701 | $ 1,372 | $ 3,467 |
| Restricted cash | 781 | 345 | 372 |
| Accounts receivable - Net | 2,338 | 3,074 | 6,331 |
| Inventory (Note 6) | 5,683 | 4,393 | 2,871 |
| Notes receivable - Current portion net of | 639 | 1,661 | 3,567 |
| allowance (Note 7) | |||
| Prepaid expenses and other current assets | 625 | 346 | 691 |
| Total current assets | 13,767 | 11,191 | 17,299 |
| Right-of-use Assets - Net | 3,098 | 1,379 | 2,392 |
| Property and Equipment - Net (Note 8) | 2,220 | 1,701 | 1,610 |
| Goodwill (Note 9) | 10,519 | 56,056 | 57,322 |
| Intangible Assets - Net (Note 9) | 28,264 | 32,566 | 42,516 |
| Other Assets | |||
| Notes receivable - Net of current portion and | |||
| allowance (Note 7) | 1,336 | 2,747 | 4,580 |
| Amounts due from related parties (Note 14) | 24,688 | 23,843 | 16,717 |
| Deferred commissions | 871 | 1,155 | 1,063 |
| Other noncurrent assets | 216 | 331 | 459 |
| Total assets | $ 84,979 | $ 130,969 | $ 143,958 |
| Liabilities and Stockholders' Equity | |||
| Current Liabilities | |||
| Accounts payable | $ 203 | $ 855 | $ 1,046 |
| Operating lease obligation - Current portion (Note 10) | 1,002 | 1,145 | 1,078 |
| Deferred revenue - Current portion | 1,305 | 2,050 | 2,532 |
| Accrued and other current liabilities: | |||
| Accrued compensation | 1,201 | 1,256 | 1,661 |
| Other accrued liabilities | 2,251 | 1,678 | 1,807 |
| Total current liabilities | 5,962 | 6,984 | 8,124 |
| Operating Lease Obligation - Net of current | 2,166 | 425 | 1,549 |
| portion (Note 10) | |||
| Other Long-term Liabilities | |||
| Deferred revenue - Net of current portion | 3,202 | 4,864 | 6,664 |
| Deferred tax liabilities (Note 11) | 3,266 | 3,001 | 5,596 |
| Total liabilities | 14,596 | 15,274 | 21,933 |
| Stockholders' Equity | 70,383 | 115,695 | 122,025 |
| Total liabilities and stockholders' equity | $ 84,979 | $ 130,969 | $ 143,958 |
Consolidated Statement of Operations
Years Ended December 31, 2023, 2022, and 2021
| 2023 | (As Restated) | 2021 |
|---|
BFG Holdco, Inc.
Consolidated Statement of Stockholders' Equity
Years Ended December 31, 2023, 2022, and 2021
| Common Stock | Additional Paid-in Capital | Retained Earnings (Accumulated Deficit) | Total | |
|---|---|---|---|---|
| Balance - January 1, 2021 | $ 5 | $ 114,238 | $ 4,841 | $ 119,084 |
| Consolidated net income | - | - | 2,941 | 2,941 |
| Balance - December 31, 2021 | 5 | 114,238 | 7,782 | 122,025 |
| Consolidated net loss | - | - | (6,330) | (6,330) |
| Balance - December 31, 2022 - As restated | 5 | 114,238 | 1,452 | 115,695 |
| Cumulative effect of change in accounting | - | - | (1,035) | (1,035) |
| principle (Note 4) |
Source: Item 23 — Receipts (FDD pages 68–264)
What This Means (2024 FDD)
According to Chem-Dry's 2024 Franchise Disclosure Document, the balance sheet includes several line items related to notes receivable. In 2021, Chem-Dry had a current portion of notes receivable, net of allowance, of $3,567. Additionally, there were notes receivable, net of current portion and allowance, of $4,580. To calculate the gross notes receivable, we also need to consider the allowance for credit losses which was $1,312. Lastly, there is a notes receivable amount of $260 listed under deferred tax assets.
To determine the total gross notes receivable for Chem-Dry in 2021, these amounts must be combined. The calculation is as follows: $3,567 (current portion, net of allowance) + $4,580 (net of current portion and allowance) + $1,312 (allowance for credit losses) + $260 (notes receivable under deferred tax assets). This results in a total of $9,719.
It is important for a prospective Chem-Dry franchisee to understand these figures as they reflect the company's lending activities and the amounts owed to Chem-Dry by its franchisees or other parties. Monitoring these figures over time can provide insights into the financial health and risk management practices of the company. A high or increasing level of notes receivable could indicate potential issues with franchisees' ability to repay their obligations, while a large allowance for credit losses might suggest a more conservative approach to lending and a recognition of potential defaults.