What was the loss on disposal of property and equipment for Clear Pest Pros in 2024?
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 | - | - |
| Impairme |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 67)
What This Means (2025 FDD)
According to Clear Pest Pros's 2025 Franchise Disclosure Document, the loss on disposal of property and equipment in 2024 was $781. This figure is part of the adjustments made to reconcile the consolidated net loss to net cash used in operating activities.
For a prospective franchisee, this indicates that Clear Pest Pros did dispose of some property and equipment during the year, resulting in a loss. This could be due to the sale, retirement, or scrapping of assets. The loss is recognized on the income statement and impacts the cash flow statement by adjusting the net loss to reflect the non-cash nature of the loss.
It's important to note that while a loss on disposal can occur for various reasons, it doesn't necessarily indicate poor management or financial instability. It is a normal part of business operations as assets are replaced or become obsolete. However, a consistent and significant loss on disposal could warrant further investigation into the company's asset management practices. Franchisees may want to inquire about the typical lifecycle of equipment and the reasons behind any significant disposals.