What was the net income/loss from operations for Coffee News in the second fiscal year presented?
Coffee_News Franchise · 2025 FDDAnswer from 2025 FDD Document
INDEPENDENT AUDITOR'S REPORT
The Boards of Directors Coffee News USA, Inc.
Opinion
We have audited the accompanying financial statements of Coffee News USA, Inc. (a Maine corporation), which comprise the balance sheets as of December 31, 2024, 2023 and 2022, and the related statements of income and retained earnings, and cash flows for the years then ended, and the related notes to the financial statements.
In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Coffee News USA, Inc. as of December 31, 2024, 2023 and 2022, and the results of its operations and its cash flows for the years then ended in accordance with accounting principles generally accepted in the United States of America.
Basis for Opinion
We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of Coffee News USA, Inc., and to meet our other ethical responsibilities in accordance with the relevant ethical requirements relating to our audits. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
Responsibilities of Management for the Financial Statements
Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about Coffee News USA, Inc.'s ability to continue as a going concern within one year after the date that the financial statements are available to be issued.
Auditor's Responsibilities for the Audit of the Financial Statements
Source: Item 23 — Receipts (FDD pages 36–118)
What This Means (2025 FDD)
Based on the 2025 Coffee News Franchise Disclosure Document, the provided excerpts do not contain a consolidated statement of income that distinctly reflects the net income or loss from operations for the second fiscal year presented (2023). The excerpts include an independent auditor's report and various notes to the financial statements, but they do not provide a clear figure for net income/loss from operations.
Item 23 includes the financial statements of Coffee News USA, Inc. However, without the actual statement of income, it is impossible to determine the net income or loss from operations. The notes discuss various aspects of the company's finances, such as revenue recognition, advertising costs, borrowing and leasing arrangements, and related party transactions, but these details do not provide a direct answer to the specific net income/loss from operations.
A prospective Coffee News franchisee should request the complete audited financial statements, including the statement of income, from the franchisor. This will allow them to review the company's financial performance, including the net income/loss from operations, for each of the past three fiscal years. Understanding this figure is crucial for assessing the financial health and stability of Coffee News.