What was the long-term portion of Cinch I.T.'s deferred revenue in 2021?
Cinch_I_T Franchise · 2024 FDDAnswer from 2024 FDD Document
| CINCH FRANCE | HISE, LLC | |||
|---|---|---|---|---|
| BALANCE S | ||||
| DECEMBER 31, 20 | 22 AND 2021 | |||
| $15-50-50MS(7M-4-5 | 40.000 | |||
| ASSET | S | 2022 | 2021 | |
| CURRENT ASSETS | - | |||
| Cash | S | 189.038 | S | 101,234 |
| Receivables: | ||||
| Trade | 54,720 | 112,709 | ||
| Employee Retention Credit | 7 | 32.487 | ||
| Prepaid expenses | 14.494 | 14,697 | ||
| TOTAL CURRENT ASSETS | S _ | 258,252 | S | 261.127 |
| LIABILITIES AND MEMBER | R'S EQUITY (DEFIC | Tr) | ||
| CURRENT LIABILITIES | 21194 | 16 | 43.594 | |
| Payables - trade | S- | 5,155 | 5 | 26,973 |
| Accrued liabilities | 16,534 | 19,451 | ||
| Current portion of deferred revenue | 55,500 | 102,200 | ||
| Due to related parties | 150 | 42,550 | - | 112,866 |
| TOTAL CURRENT LIABILITIES | 100 | 119,739 | 261,490 | |
| LONG-TERM LIABILITIES | A30 40 A11 | |||
| Long-term deht | 98,500 | Section . | ||
| Long-term portion of deferred revenue | _ | 39,500 | - | 50,500 |
| TOTAL LONG-TERM LIABILITIES | 138,000 | 50,500 |
Source: Item 23 — RECEIPTS (FDD pages 60–269)
What This Means (2024 FDD)
According to Cinch I.T.'s 2024 Franchise Disclosure Document, the long-term portion of deferred revenue for Cinch I.T. in 2021 was $50,500. This figure represents revenue that Cinch I.T. has received but not yet earned as of the end of that fiscal year, and which they anticipate recognizing as revenue over a period longer than one year.
Deferred revenue typically arises from situations where Cinch I.T. receives payments in advance for services or products that will be delivered in the future. The long-term portion specifically refers to the amount of these advance payments that are not expected to be earned within the next 12 months. For a prospective franchisee, understanding the breakdown of deferred revenue can provide insights into the company's future revenue streams and obligations.
It's important to note that deferred revenue is a liability on the balance sheet because Cinch I.T. has an obligation to provide services or products in the future for which they have already been paid. The recognition of this revenue over time will impact Cinch I.T.'s future financial performance. Reviewing these figures helps potential franchisees assess the financial stability and forecasting of Cinch I.T.