What were the total assets of Craters & Freighters as of December 31, 2022?
Craters_Freighters Franchise · 2025 FDDAnswer from 2025 FDD Document
i LLP
Denver, Colorado April 10, 2024
Balance Sheets
| As of December 31, | 2023 | 2022 |
|---|---|---|
| Current Assets: | ||
| Cash and Cash Equivalents | $ 6,991,649 $ | 2,376,316 |
| Marketable Securities - At Fair Market Value | 634,869 | 528,625 |
| Accounts Receivable - Net of Allowance for | ||
| Credit Losses of $50,000 and $40,000, Respectively | 569,660 | 717,990 |
| Prepaid Expenses | 201,226 | 34,611 |
| Total Current Assets | 8,397,404 | 3,657,542 |
| Property and Equipment - At Cost: | ||
| Office Equipment | 80,614 | 80,613 |
| Furniture and Fixtures | 19,862 | 19,863 |
| Leasehold Improvements | 11,415 | 11,415 |
| Vehicles | 202,688 | 215,039 |
| 314,579 | 326,930 | |
| Less: Accumulated Depreciation | (133,628) | (225,263) |
| Property and Equipment - Net | 180,951 | 101,667 |
| Other Assets: | ||
| Software Development - Net of Accumulated | ||
| Amortization of $317,185 and $215,196, Respectively | 153,931 | 142,272 |
| Due from Related Party | 356,391 | 193,314 |
| Note Receivable | 160,000 | 60,000 |
| Right-of-Use Asset - Operating Lease | 130,071 | 203,307 |
| Deposits | 12,546 | 12,546 |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 49)
What This Means (2025 FDD)
According to Craters & Freighters' 2025 Franchise Disclosure Document, the company's total assets as of December 31, 2022, were $4,370,648. This figure represents the sum of Craters & Freighters' current assets, property and equipment (net of depreciation), and other assets at that date. Current assets include cash and cash equivalents, marketable securities, accounts receivable (net of allowance for credit losses), and prepaid expenses. Property and equipment include office equipment, furniture and fixtures, leasehold improvements, and vehicles, less accumulated depreciation. Other assets include software development (net of accumulated amortization), due from related party, note receivable, right-of-use asset - operating lease, and deposits.
Understanding the composition of Craters & Freighters' assets can provide prospective franchisees with insights into the company's financial health and resource allocation. A significant portion of the assets were in the form of current assets ($3,657,542), indicating the company's ability to meet its short-term obligations. Property and equipment, net of depreciation, amounted to $101,667, reflecting the value of the company's physical assets used in operations. Other assets totaled $611,439, including items such as software development, amounts due from related parties, and a note receivable.
Reviewing the balance sheet and understanding the asset composition is a standard practice in franchise evaluation. It allows potential franchisees to assess the company's liquidity, solvency, and overall financial stability. Comparing these figures with those of previous years and with industry benchmarks can further enhance the assessment of the franchise's financial performance and potential risks.
It is important for prospective franchisees to consult with financial advisors to fully understand the implications of these financial figures and how they relate to the overall franchise opportunity. Analyzing the trends in asset values and their composition over time can provide valuable insights into the company's growth and financial management strategies.