What was the value of additional paid-in capital for City Publications as of December 31, 2023?
City_Publications Franchise · 2025 FDDAnswer from 2025 FDD Document
ntial doubt about CITY PUBLICATIONS FRANCHISE GROUP, INC.'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 audit, significant audit findings, and certain internal control—related matters that we identified during the audit.
Ft. Collins, Colorado April 20, 2025
CITY PUBLICATIONS FRANCHISE GROUP, INC. CONSOLIDATED BALANCE SHEETS
| AS OF DECEMBER 31, | |||
|---|---|---|---|
| 2024 | 2023 | ||
| ASSETS: | |||
| CURRENT ASSETS | |||
| Cash and equivalents | $ 469,911 | $ 34,370 | |
| Accounts receivable | 6,166 | 10,184 | |
| TOTAL CURRENT ASSETS | 476,077 | 44,554 | |
| NON-CURRENT ASSETS | |||
| Property and equipment | 2,179 | 3,000 | |
| Other assets | 8,362 | 8,362 | |
| TOTAL ASSETS | $ 486,618 | $ 55,916 | |
| LIABILITIES AND SHAREHOLDERS' (DEFICIT): | |||
| CURRENT LIABILITIES | |||
| Accounts payable | $ 478,790 | $ 84,847 | |
| Non-refundable deferred franchise fees, current | 29,393 | 22,373 | |
| TOTAL CURRENT LIABILITIES | 508,183 | 107,220 | |
| NON-CURRENT LIABILITIES | |||
| Non-refundable deferred franchise fees | 52,433 | 34 |
Source: Item 23 — RECEIPT (FDD pages 39–129)
What This Means (2025 FDD)
According to City Publications' 2025 Franchise Disclosure Document, the additional paid-in capital as of December 31, 2023, was $17,000. The balance sheets provide a snapshot of the company's assets, liabilities, and equity at a specific point in time. For prospective franchisees, this indicates the amount of capital City Publications has received from investors above the par value of its common stock.
Additional paid-in capital typically reflects the premium investors pay for shares during initial offerings or subsequent equity raises. A consistent additional paid-in capital balance, as seen here with $17,000 in both 2023 and 2024, might suggest that City Publications did not issue new shares during those periods. This could imply a stable ownership structure and financing strategy during those years.
It is important to note that while additional paid-in capital provides insight into the company's equity structure, it does not directly indicate profitability or cash flow. Franchisees should consider this figure in conjunction with other financial metrics, such as retained earnings and net income, to gain a comprehensive understanding of City Publications' financial health. Reviewing the consolidated statements of changes in shareholders' deficit can also provide context on how equity components have evolved over time.