What was the total cost of all assets owned by Craters & Freighters as of December 31, 2023?
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, 2023, amounted to $9,391,294. These assets are categorized into current assets, property and equipment, and other assets. Current assets include cash and cash equivalents of $6,991,649, marketable securities valued at $634,869, accounts receivable (net of allowance for credit losses) totaling $569,660, and prepaid expenses of $201,226.
Property and equipment, at cost, includes office equipment, furniture and fixtures, leasehold improvements, and vehicles, totaling $314,579. After deducting accumulated depreciation of $133,628, the net value of property and equipment is $180,951. Other assets include software development (net of accumulated amortization) valued at $153,931, $356,391 due from a related party, a note receivable of $160,000, a right-of-use asset for operating leases valued at $130,071, and deposits of $12,546.
For a prospective franchisee, understanding the asset composition of Craters & Freighters provides insight into the financial health and resource allocation of the company. A significant portion of the assets is held in cash and cash equivalents, which suggests strong liquidity. The presence of assets like software development and right-of-use assets indicates investments in technology and operational infrastructure. The related party transactions should be carefully reviewed to understand the nature and terms of these transactions and their potential impact on the company's financials.
Overall, the asset mix reflects a balance between liquid assets, tangible property and equipment, and intangible assets, which is typical for a franchise company. However, potential franchisees should conduct their own due diligence and consult with financial advisors to fully assess the implications of these assets and liabilities on the financial stability and future prospects of Craters & Freighters.