What was the net change on note payable - related parties 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 | 225.549 |
| Balance at December 31, 2022 | (2,728.473) |
| Net income | 220,255 |
| Balance at December 31, 2023 | 5 (2,508,218) |
| 12 | 2/31/2023 | 2/31/2022 | 1 | 2/31/2021 | ||||
|---|---|---|---|---|---|---|---|---|
| CASH FLOWS FROM OPERATING ACTIVITIES | Maria Agenta | |||||||
| Net income | 5 | 220,255 | 5 | 225,549 | $ | 717,454 | ||
| Adjustments to reconcile net income to net cash | ||||||||
| flows from operating activities: | ||||||||
| Depreciation | 17,948 | 13,439 | 19,608 | |||||
| Amortization | 18,000 | 13,556 | 1 | |||||
| Loss on disposal of property and equipment | 15,000 | - | 1 | |||||
| Allowance for notes receivable and doubtful accounts | 60,740 | - | ||||||
| Note receivable forgiveness | 71,469 | - | ||||||
| (Increase) decrease in operating assets: | ||||||||
| Accounts receivable | 445,348 | (295,995) | (239,322) | |||||
| Prepaid expense | 47,786 | 106,374 | (253,501) | |||||
| Inventory | 88,627 | 133,497 | (476,661) | |||||
| Deferred direct franchise costs | 473,893 | (78,089) | 65,581 | |||||
| Accrued interest - notes receivable | (5,259) | (1,618) | ||||||
| Deposits | 11,010 | (7,291) | (3,719) | |||||
| Increase (decrease) in operating liabilities: | ||||||||
| Accounts payable | 228,775 | 25,662 | (22,774) | |||||
| Accrued liabilities | (65,804) | 66,821 | 117,952 | |||||
| Deferred revenue | (61,584) | 66,092 | (28,768) | |||||
| Deferred initial franchise fee revenue | (1,079,797) | 122,394 | (264,725) | |||||
| Described initial statement for texture | _ | Arguerates | _ | 122,574 | - | (204,120) | ||
| NET CASH FLOWS PROVIDED BY (USED IN) | ||||||||
| OPERATING ACTIVITIES | 486,407 | 390,391 | (368,875) | |||||
| OFERATING SCHYIIIES | _ | 400,407 | _ | 390,331 | - | (300,013) | ||
| CASH FLOWS FROM INVESTING ACTIVITIES | ||||||||
| Purchase of property and equipment | (2.372) | (96,271) | (17,730) | |||||
| Proceeds from disposal of property and equipment | 18,854 | 100,277 | 1.121.500 | |||||
| Purchase of intangible asset | (2,750) | (2,025) | ||||||
| Capitalized software development costs | 12(150) | (10,000) | (44,000) | |||||
| Payments from notes receivable | 27,367 | (10,000) | [44,000) | |||||
| Issuance of notes receivable | (30,000) | (104,050) | ||||||
| Net change on notes receivable - related parties | (414,495) | (85,520) | 217,489 | |||||
| iver change on notes receivable - related parties | (4)4,492 | _ | (93,249) | 417,402 | ||||
| NET CASH FLOWS (USED IN) PROVIDED BY | ||||||||
| INVESTING ACTIVITIES | (403,396) | (297,866) | 155,759 | |||||
| EVILSTEND ACTIVITIES | - | (403,50) | - | (437,000) | - | 1202102 | ||
| CASH FLOWS FROM FINANCING ACTIVITIES | ||||||||
| Net change on note payable - related parties | (68,048) | (231,837 |
Source: Item 23 — RECEIPT (FDD pages 63–234)
What This Means (2024 FDD)
According to Deka Lash's 2024 Franchise Disclosure Document, the net change on note payable - related parties in the period ending February 31, 2023, was a decrease of $68,048. This indicates that Deka Lash decreased the amount it owed to related parties through notes payable during this time.
For a prospective franchisee, this figure provides insight into Deka Lash's financial transactions with related entities. Notes payable to related parties often involve loans or other forms of credit extended by individuals or companies affiliated with Deka Lash, such as its owners or parent company. A decrease in this liability could suggest that Deka Lash is reducing its reliance on related-party financing or has repaid some of its obligations.
It's important to note that transactions with related parties are subject to scrutiny, as they may not always be conducted at arm's length. Franchisees should consider this information in the context of Deka Lash's overall financial health and seek clarification from the franchisor regarding the terms and conditions of these notes payable. Understanding the nature of these related-party transactions can help a franchisee assess the financial stability and transparency of Deka Lash.