What was the gross deferred tax liabilities for Cool Binz on December 31, 2023?
Cool_Binz Franchise · 2025 FDDAnswer from 2025 FDD Document
| December 31, | 2024 | 2023 (as restated) | ||
|---|---|---|---|---|
| Deferred Tax Liabilities | ||||
| Intangibles | (5,613) | (6,836) | (7,493) | |
| Inventory capitalization | (522) | - | - | |
| Property and equipment | (138) | (244) | (309) | |
| Prepaid expenses | (109) | (159) | (88) | |
| Right-of-use asset | (488) | (788) | (351) | |
| Gross Deferred Tax Liabilities | (6,870) | (8,027) | (8,241) | |
| Net Deferred Tax Assets (Liabilities) | $(3,623) $ | (3,266) $ | (3,001) |
Source: Item 23 — RECEIPTS (FDD pages 63–238)
What This Means (2025 FDD)
According to Cool Binz's 2025 Franchise Disclosure Document, the company's gross deferred tax liabilities on December 31, 2023, were ($8,241). This figure represents the total deferred tax liabilities resulting from various factors.
Deferred tax liabilities arise from temporary differences between the book value of an asset or liability and its tax basis. These differences result in taxable amounts in future years when the asset is recovered or the liability is settled. In the case of Cool Binz, the gross deferred tax liabilities are primarily related to intangibles, property and equipment, prepaid expenses, and right-of-use assets.
The deferred tax liabilities for Cool Binz include Intangibles which account for ($7,493), Property and equipment account for ($309), Prepaid expenses account for ($88), and Right-of-use asset account for ($351). These figures indicate the extent to which Cool Binz has temporary differences that will result in future taxable income as these items are utilized or expensed for tax purposes.
Prospective franchisees should understand that deferred tax liabilities are a normal part of business operations and reflect the timing differences in recognizing income and expenses for financial reporting and tax purposes. Monitoring these liabilities is crucial for financial planning and compliance.