According to Cool Binz's 2025 Franchise Disclosure Document, the 2022 financial statements were restated to correct an error related to an unidentified impairment of the Delta trade name and franchise agreement intangible assets. This means that Cool Binz identified an issue with how they had previously valued these assets on their balance sheet. Specifically, they determined that the value of the Delta trade name and franchise agreement intangible assets had decreased, or become impaired, in 2022, but this impairment was not properly recognized at the time.

To correct this, Cool Binz restated the 2022 financial statements. This restatement involved adjusting the retained earnings at the beginning of 2023 to reflect the impact of the correction on 2022. The restatement affected specific line items on the 2022 statement of operations, though the exact line items are not specified in this excerpt.

For a prospective franchisee, this restatement indicates that Cool Binz has taken steps to ensure the accuracy of its financial reporting. While the restatement itself doesn't necessarily signal a problem with the underlying business, it is essential to understand the nature and magnitude of the error that led to the restatement. A potential franchisee may want to inquire about the specific line items affected and the reasons why the impairment was not initially identified.