What were the total software development costs for Craters & Freighters as of December 31, 2022?
Craters_Freighters Franchise · 2025 FDDAnswer from 2025 FDD Document
ation expense for the years ended December 31, 2023 and 2022 totaled $101,989 and $99,763, respectively.
Summary of software development as of December 31:
| As of December 31, | 2023 | 2022 |
|---|
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 49)
What This Means (2025 FDD)
According to Craters & Freighters' 2025 Franchise Disclosure Document, as of December 31, 2022, the company's software development costs totaled $357,468. This figure represents the historical cost of developing software assets before accounting for any amortization or impairment. These costs are amortized over a three-year period.
For a prospective franchisee, understanding these software development costs can provide insight into Craters & Freighters' investment in technology and its potential impact on the efficiency and effectiveness of franchise operations. The amortization expense, which was $99,763 for the year ended December 31, 2022, reflects the systematic reduction of the software's value over its useful life.
It's important to note that the net value of software development, after accumulated amortization, was $142,272 as of December 2022. This net value represents the remaining book value of the software assets on Craters & Freighters' balance sheet. Reviewing these figures in the context of Craters & Freighters' overall financial health can help a potential franchisee assess the stability and growth potential of the franchise system.