What was the investment in software development for Craters & Freighters in 2023?
Craters_Freighters Franchise · 2025 FDDAnswer from 2025 FDD Document
| 5,413,239 | $ 5,414,139 |
Statements of Cash Flows
| Years Ended December 31, | 2023 | 2022 | |----------------------------------------------------------------------|-----------------------|-------------| | Change in Cash and Cash Equivalents: | | | | Cash Flows from Operating Activities: | | | | Net Income | $ 2,633,230 $ | 2,437,747 | | | | | | Adjustments to Reconcile Net Income to Net Cash and Cash Equivalents | | | | From Operating Income: | | | | Amortization Expense | 101,989 | 99,763 | | Depreciation Expense | 26,134 | 21,995 | | Gain on Sale of Fixed Assets | (15,729) | - | | Gain on Sale of Marketable Securities | (841) | (3,643) | | Bad Debt Expense | 10,000 | 24,928 | | Non-Cash Lease Expense | 1,865 | 83,132 | | Unrealized Holding (Gain) Loss on Marketable Securities | (97,174) | 69,301 | | Reinvested Dividends | (13,827) | (13,279) | | (Increase) Decrease in Assets: | | | | Accounts Receivable | 138,330 | (159,098) | | Prepaid Expenses and Deposits | (166,615) | 462 | | (Decrease) Increase in Liabilities: | | | | Accounts Payable | (179,894) | 225,116 | | Accrued Bonus | (132,340) | 132,340 | | Accrued Liabilities and Payables | 1,332 | (3,152) | | Operating Lease Liability Change | - | (70,918) | | Net Cash Flows from Operating Activities | 2,306,460 | 2,844,694 | | Cash Flows from Investing Activities: | | | | Investment in Software Development | (113,648) | (106,716) | | Proceeds from Sale of Investments | 77,025 | 77,160 | | Purchase of Investments | (71,427) | (71,880) | | Due from Related Party | (163,077) | (16,876) | | Note Receivable | (100,000) | (60,000) | | Purchase of Property and Equipment | (89,688) | - | | Net Cash Flows from Investing Activities | (460,815) | (178,312) | | | | | | Cash Flows from Financing Activities: | | | | Distributions to Shareholder | - | (4,945,919) | | Due to Shareholder | 2,769,688 | - | | Net Cash Flows from Financing Activities | 2,769,688 | (4,945,919) | | | | | | Net Increase (Decrease) in Cash and Cash Equivalents | 4,615,333 | (2,279,537) | | Cash and Cash Equivalents at Beginning of Year | 2,376,316 | 4,655,853 | | Cash and Cash Equivalents at End of Year | $ 6,991,649 $ | 2,376,316 |
Note 1: Summary of Significant Accounting Policies
Nature of Operations
Craters & Fre
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 49)
What This Means (2025 FDD)
According to Craters & Freighters' 2025 Franchise Disclosure Document, the company invested $113,648 in software development during the year ended December 31, 2023. This investment is part of the company's cash flows from investing activities. In 2022, Craters & Freighters' investment in software development was $106,716.
Software development assets are reported at historical cost, with accumulated amortization and any recognized impairment loss deducted. Craters & Freighters amortizes these assets using the straight-line method over three years. For the years ended December 31, 2023 and 2022, the amortization expense totaled $101,989 and $99,763, respectively.
As of December 31, 2023, the gross software development costs totaled $471,116, with accumulated amortization of $317,185, resulting in a net value of $153,931. These figures provide insight into Craters & Freighters' ongoing investment in technology and software, which is crucial for maintaining a competitive edge and supporting its franchise operations.