What was the balance for Deka Lash at the end of December 31, 2023?
Deka_Lash Franchise · 2024 FDDAnswer from 2024 FDD Document
| 1 | 2/31/2023 | 12/31/20 | 22 | 12/31/2021 | |
|---|---|---|---|---|---|
| REVENUE | 4 | . 200 000 | 2 . 200 | nau. | |
| Initial franchise fees | |||||
| Product sales | $ | 1,752,895 | $ 1,572, 3,707. | ||
| 511111111111111111111111111111111111111 | Part of the last | 200 | 2,955,206 | ||
| Royalty income | 2,062,890 | 2,024 | 1,551,172 | ||
| Brand development income | 508,196 | 301,725 | |||
| Other operating revenue | _ | 1,852,111 | 1,989 | 1,903,123 | |
| TOTAL REVENUES | _ | 9,339,025 | 9,643 | 649 | 8,010,120 |
| OPERATING EXPENSES | |||||
| Selling and administrative expense | 1.875,002 | 1,807. | 255 | 983,611 | |
| Product costs | 1,812,842 | 2,008 | 962 | 1,989,404 | |
| Development costs | 1,083,541 | 944 | 467 | 1,221,014 | |
| Salaries, wages, and benefits | 4,327,982 | 3,904 | 703 | 2,743,730 | |
| Other operating expenses | 846,406 | 810. | 881 | 419,793 | |
| Amortization expense | 18,000 | 13. | 556 | ||
| Depreciation expense | - | 17,948 | 13. | 439 | 19,608 |
| TOTAL OPERATING EXPENSES | _ | 9,981,721 | 9,503. | 263 | 7,377,160 |
| OPERATING (LOSS) / INCOME | 1 | (642,696) | 140. | 386 | 632,960 |
| OTHER INCOME (EXPENSE) | |||||
| Ot |
Source: Item 23 — RECEIPT (FDD pages 63–234)
What This Means (2024 FDD)
According to the 2024 Deka Lash Franchise Disclosure Document, the balance at December 31, 2023, was $(2,508,218). This figure represents the financial position of Deka Lash at the close of the fiscal year. It is important to note that this balance is a negative number, indicating a deficit or accumulated losses.
This information is crucial for potential franchisees as it provides insight into the financial stability and performance of Deka Lash. A significant deficit might raise concerns about the company's ability to support its franchisees or invest in future growth. However, it is also important to consider the trend of the balance over time.
The FDD shows that the balance has improved from $(3,671,476) in 2020 to $(2,508,218) in 2023, with net income reported in each of the intervening years. This suggests that Deka Lash is making progress in reducing its deficit, which could be a positive sign for prospective franchisees. Reviewing the complete financial statements and understanding the reasons behind the accumulated deficit is essential for making an informed investment decision.