What was the reported amount of R&D capitalization for Cool Binz as of December 31, 2024?
Cool_Binz Franchise · 2025 FDDAnswer from 2025 FDD Document
| 2022 | ||||
|---|---|---|---|---|
| December 31, | 2024 | 2023 (as restated) | ||
| Deferred Tax Assets | ||||
| Allowance for credit losses | $500 $ | 531 $ | 941 | |
| Deferred revenue | 895 | 1,259 | 1,759 | |
| Notes receivable | - | 52 | 156 | |
| Interest limitation carryforward | 813 | 1,029 | 872 | |
| Accrued liabilities | 75 | 210 | 231 | |
| Lease liability | 528 | 806 | 399 | |
| R&D capitalization | 318 | 255 | - | |
| Inventory capitalization | - | 494 | - | |
| Other | 118 | 125 | 882 | |
| Gross Deferred Tax Assets | 3,247 | 4,761 | 5,240 | |
| Deferred Tax Liabilities |
Source: Item 23 — RECEIPTS (FDD pages 63–238)
What This Means (2025 FDD)
According to Cool Binz's 2025 Franchise Disclosure Document, the reported Research and Development (R&D) capitalization as of December 31, 2024, was $318.
This figure represents the amount Cool Binz has capitalized related to its research and development activities. Capitalization means that instead of expensing these costs immediately, Cool Binz has recorded them as an asset on its balance sheet. This is typically done when the company expects to realize future economic benefits from these R&D activities.
For a prospective franchisee, this number provides insight into Cool Binz's investment in innovation and development. A higher number could indicate a stronger commitment to improving its products, services, or operational methods. However, it's important to note that the value of capitalized R&D can fluctuate and may not always translate directly into increased profitability for franchisees. It is also important to note that the R&D capitalization as of December 31, 2023 was $255, and as of December 31, 2022 was $0.