What was the amount of additional paid-in capital for Deck Medic on December 31, 2023?
Deck_Medic Franchise · 2024 FDDAnswer from 2024 FDD Document
6. ADVERTISING EXPENSES
Advertising costs for the years ended December 31, 2023 and 2022 were $54,835 and $69,863 respectively. These costs were expensed as incurred.
7. STOCKHOLDERS' EQUITY
Under the articles of incorporation, the total number of common shares of stock that the Co
Source: Item 23 — RECEIPTS (FDD pages 43–228)
What This Means (2024 FDD)
According to Deck Medic's 2024 Franchise Disclosure Document, on December 31, 2023, the company had $2,000 in additional paid-in capital. The total number of common shares the corporation is authorized to issue is 1,000 shares, with a par value of $1 per share, amounting to $1,000 issued and outstanding.
Additional paid-in capital represents the amount by which the price investors paid for the company's stock exceeds the par value of those shares. It is an important component of stockholders' equity on the balance sheet. For Deck Medic, this indicates the capital received from investors above the nominal par value of the stock.
For a prospective franchisee, understanding the franchisor's equity structure and financial health is crucial. A healthy balance sheet, including additional paid-in capital, can indicate financial stability and the ability to support the franchise system. Reviewing these figures over time can reveal trends in the company's financial management and investor confidence.
It is important to note that while $2,000 is the additional paid-in capital, this should be considered in conjunction with other financial metrics to assess the overall financial health of Deck Medic. A potential franchisee should consult with a financial advisor to fully understand the implications of this figure.