As of December 31, 2022, what was the amount of additional paid-in capital for Deck Medic?
Deck_Medic Franchise · 2024 FDDAnswer from 2024 FDD Document
| 2022 | 2021 | |
|---|---|---|
| initial franchise fees receivables | $25,530 | $28,955 |
| Royalties receivables | 16,222 | 13,244 |
| Gross accounts receivables | 41,752 | 42,199 |
| Less: Allowance for doubtful accounts | (12,765) | 7,125 |
| Accounts receivable, net | $28,987 | $42,199 |
5. STOCKHOLDERS' EQUITY
Under the articles of incorporation, the total number of common shares of stock
Source: Item 23 — RECEIPTS (FDD pages 43–228)
What This Means (2024 FDD)
According to Deck Medic's 2024 Franchise Disclosure Document, as of December 31, 2022, the company had $2,000 in additional paid-in capital. The document also states that the total number of common shares of stock that the corporation has the authority to issue is 1000 shares with $1 par value, amounting to $1,000 issued and outstanding.
Additional paid-in capital represents the amount by which the money received from investors for stock exceeds the par value of the stock. In Deck Medic's case, this indicates that the company has received $2,000 more than the stated par value of its issued shares as of the end of 2022.
For a prospective franchisee, this information provides a glimpse into the company's equity structure and how it has raised capital. While a relatively small amount, the additional paid-in capital suggests that investors have contributed funds beyond the nominal value of the shares. This could be a sign of investor confidence, but further investigation into the company's financials would be needed to fully assess its financial health and stability.