What was the amount of amortization for Cicis in 2023?

According to Cicis's 2025 Franchise Disclosure Document, the amortization expense for 2023 was $38,816. This figure is part of the adjustments made to reconcile net income to net cash provided by operating activities. Amortization is the process of spreading out the cost of an intangible asset over its useful life.

For a prospective Cicis franchisee, understanding amortization is crucial for interpreting the financial statements provided in the FDD. It helps in assessing the true profitability and cash flow generation of the company. Amortization is a non-cash expense, meaning it reduces net income without affecting the company's cash balance. Therefore, it's added back to net income when calculating cash flow from operating activities.

In 2023, the net income for Cicis was $5,859,705. After adding back the amortization of $38,816 and making other adjustments for changes in operating assets and liabilities, the net cash provided by operating activities was $6,583,092. This indicates that Cicis generated a significant amount of cash from its core business operations, even after accounting for non-cash expenses like amortization.

Franchisees should pay attention to these adjustments as they provide a clearer picture of the company's financial health and its ability to generate cash. A consistent and positive cash flow from operating activities is a good sign, suggesting that the business is sustainable and can fund its operations and growth.