What was the value of intangibles for Cool Binz on December 31, 2022?
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 | ||||
| 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 value of intangibles as of December 31, 2022, was ($7,493) in thousands of dollars. This means that Cool Binz had a deferred tax liability related to intangibles of $7,493,000 at the end of 2022. Intangible assets typically include items like trademarks, patents, and goodwill, which are not physical assets but contribute to the company's value. In this case, the figure is presented as a deferred tax liability, indicating that the accounting treatment of these intangibles results in a future tax obligation.
For a prospective Cool Binz franchisee, this information provides insight into the company's financial structure and how it manages its intangible assets. Understanding the nature and value of these assets, as well as the associated tax implications, can be crucial for assessing the overall financial health and stability of the franchisor. It's important to note that this value represents a deferred tax liability, which means Cool Binz anticipates owing taxes on these intangibles in the future.
This deferred tax liability related to intangibles should be considered alongside other financial statement information when evaluating the Cool Binz franchise opportunity. Franchisees should consult with a financial advisor to fully understand the implications of these figures and how they might affect the long-term financial prospects of the franchise. Reviewing several years of financial statements, including those for 2023 and 2024, can also provide a clearer picture of trends and changes in the company's financial position.