What was the change in inventory for Clear Pest Pros in 2022?
Clear_Pest_Pros Franchise · 2025 FDDAnswer from 2025 FDD Document
December 31, 2024 | | | | |
Consolidated Statements of Cash Flows (dollars in thousands)
| Year ended December 31, | 2024 | 2023 | 2022 (as restated) |
|---|---|---|---|
| Cash Flows from Operating Activities | |||
| Consolidated net loss | $ (11,108) | $ (44,277) | $ (6,330) |
| Adjustments to reconcile consolidated net | |||
| loss to net cash (used in) provided by | |||
| operating activities: | |||
| Depreciation | 505 | 591 | 490 |
| Amortization of intangible assets | 4,380 | 4,380 | 5,169 |
| Credit (recovery) loss | (296) | 627 | 6,949 |
| Loss on disposal of property and equipment | 781 | - | - |
| Impairment of goodwill | 10,519 | 45,537 | 1,266 |
| Impairment of intangible assets | - | - | 4,952 |
| Deferred income taxes | 357 | 265 | (2,595) |
| Noncash lease expense | 67 | (121) | (44) |
| Changes in operating assets and liabilities | |||
| that provide (use) cash: | |||
| Accounts receivable | (459) | 1 | (3,560) |
| Inventory | (2,619) | (1,289) | (1,523) |
| Notes receivable | 970 | 1,506 | 3,607 |
| Prepaid expenses and other assets | 40 | (166) | 473 |
| Deferred commissions | 223 | 284 | (92) |
| Related party | (2,864) | (845) | (7,126) |
| Accounts payable | 609 | (652) | (191) |
| Accrued and other current liabilities | (1,284) | 518 | (534) |
| Deferred revenue | (1,104) | (2,407) | (2,282) |
| Net Cash (Used in) Provided by Operating | |||
| Activities | (1,283) | 3,952 | (1,371) |
| Cash Flows from Investing Activities | |||
| Purchases of property and equipment | (593) | (1,109) | (581) |
| Payments made for patents and trade nam |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 67)
What This Means (2025 FDD)
According to Clear Pest Pros's 2025 Franchise Disclosure Document, the change in inventory for 2022 was a decrease of $1,523. This figure is part of the cash flow statement, specifically within the changes in operating assets and liabilities.
For a prospective franchisee, this indicates how much cash was used or provided by changes in the level of inventory held by Clear Pest Pros during that year. A negative value, like the $1,523 decrease, suggests that Clear Pest Pros used cash to increase its inventory levels. This could be due to purchasing more equipment, cleaning supplies, chemicals, or mixed cleaning solutions, as these constitute the inventory for Clear Pest Pros.
It's important to note that this is a historical figure and may not be indicative of future performance. Factors such as changes in business strategy, market conditions, or supply chain disruptions could affect inventory levels and the associated cash flow. Franchisees should consider these factors when evaluating the financial performance of Clear Pest Pros and projecting their own potential earnings.