What was the loss on disposal of property and equipment for Deka Lash in 2/31/2023?
Deka_Lash Franchise · 2024 FDDAnswer from 2024 FDD Document
5 | 86,868 | | Interest income | | 06,704 | 1. | 618 | - 4 | | Employee retention credit income | | 811,828 | | - | | | Loss on disposal of fixed assets | | (15,000) | | - | - | | Interest expense | _ | - | | _ | (2,374) | | TOTAL OTHER INCOME (EXPENSE) | - | 862,951 | 85 | 163 | 84,494 | | NET INCOME | S | 220,255 | $ 225 | 549 | $ 717,454 |
| Balance at December 31, 2020 | $ (3,671,476) |
|---|---|
| Net income | 717,454 |
| Balance at December 31, 2021 | (2,954,022) |
| Net income | 225.54 |
Source: Item 23 — RECEIPT (FDD pages 63–234)
What This Means (2024 FDD)
According to the 2024 Deka Lash Franchise Disclosure Document, the loss on disposal of property and equipment for the period ending February 31, 2023, was $15,000. This figure is part of the adjustments made to reconcile net income to net cash flows from operating activities.
For a prospective Deka Lash franchisee, this indicates that the company did experience some losses related to the disposal of assets during this period. While not necessarily alarming on its own, it's a data point to consider within the broader context of the company's financial performance. Disposal of property and equipment can occur for various reasons, such as upgrading to newer equipment or selling off unused assets.
It would be prudent for a potential franchisee to inquire about the nature of these disposals. Understanding why Deka Lash disposed of these assets and whether this is a recurring event can provide valuable insight into the company's asset management practices and overall financial health. This information, combined with other financial metrics, can help in assessing the financial stability and operational efficiency of the franchise.