What were the prepaid expenses and other current assets for Cicis in 2023?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
| Current assets: | |||
|---|---|---|---|
| Cash and cash equivalents | $ 1,854,735 | $ 2,931,372 | |
| Cash and cash equivalents—marketing fund, restricted | 434,199 | 771,794 | |
| Accounts receivable, net: | |||
| Trade receivables | 290,921 | 325,874 | |
| Marketing fund, restricted | 2,395,119 | 2,537,488 | |
| Related party receivable | 695,717 | 79,530 | |
| Prepaid expenses and other current assets | 859,866 | 228,561 | |
| Total current assets | 6,530,557 | 6,874,619 |
Source: Item 23 — RECEIPTS (FDD pages 65–263)
What This Means (2025 FDD)
According to Cicis's 2025 Franchise Disclosure Document, the prepaid expenses and other current assets for 2023 are detailed in Item 23, which provides financial statement information. Specifically, Cicis's prepaid expenses and other current assets totaled $228,561 in 2023. This figure is part of the broader category of current assets, which also includes cash and cash equivalents, accounts receivable, and other short-term assets. These assets are essential for covering the company's immediate operational needs and short-term liabilities.
Understanding the composition of current assets, including prepaid expenses, is crucial for prospective franchisees. Prepaid expenses typically represent payments made in advance for goods or services that will be used in the future, such as insurance or rent. Monitoring these assets can provide insights into Cicis's financial health and its ability to manage short-term obligations. A healthy level of current assets indicates that Cicis has sufficient liquidity to meet its immediate financial obligations.
Item 23 also presents a comparative view by including figures from previous years, allowing potential franchisees to assess trends and changes in Cicis's financial position. For instance, reviewing the changes in prepaid expenses and other current assets from 2022 to 2023 can reveal how Cicis is managing its resources and whether there are any significant shifts in its operational strategies. This information is valuable for making informed decisions about investing in a Cicis franchise.
In addition to prepaid expenses and other current assets, the FDD provides a comprehensive overview of Cicis's financial performance, including revenues, expenses, and cash flows. Analyzing these financial statements in their entirety can give prospective franchisees a deeper understanding of the financial stability and growth potential of the Cicis franchise system.