What were Deka Lash's notes receivable from related parties as of 12/31/2021?
Deka_Lash Franchise · 2024 FDDAnswer from 2024 FDD Document
s used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.
- Conclude whether, in our judgement, there are conditions or events, considered in the aggregate, that raise substantial doubt about DL Franchising, LLC's ability to continue as a going concern for a reasonable period of time.
We are required to communicate with those charged with governance regarding, amount other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control related matters that we identified during the audit.
The Mumford Group Bountiful, Utah
February 24, 2024
| 1 | 2/31/2023 | . 1 | 2/31/2022 | 7 1 | 12/31/2021 | |
|---|---|---|---|---|---|---|
| ASSETS | ||||||
| CURRENT ASSETS | ||||||
| Cash and cash equivalents Accounts receivable, net of allowance for doubtful | $ | 402,347 | S | 415,665 | 5 | 507,842 |
| accounts of $28,000, $6,718 and $6,718, respectively | 250,199 | 716,829 | 420,834 | |||
| Prepaid expenses | 139,044 | 186,830 | 293,204 | |||
| Inventory | 662,468 | 751,095 | 884,592 | |||
| Accrued interest - notes receivable | 1.618 | |||||
| Notes receivable - related parties | 514,485 | 99,990 | 14,470 | |||
| Cu |
Source: Item 23 — RECEIPT (FDD pages 63–234)
What This Means (2024 FDD)
According to Deka Lash's 2024 Franchise Disclosure Document, as of December 31, 2021, the company's notes receivable from related parties totaled $14,470. This indicates the amount of money owed to Deka Lash by entities or individuals affiliated with the company.
Notes receivable from related parties represent loans or other forms of credit extended by Deka Lash to its related parties. These transactions are distinct from typical accounts receivable, which arise from sales to customers. The presence of notes receivable from related parties suggests financial relationships between Deka Lash and its affiliates, which could be for various purposes such as funding, investments, or operational support.
For a prospective franchisee, this information provides insight into the financial dealings of Deka Lash with its related entities. While not necessarily a negative indicator, it is important to understand the nature and terms of these related-party transactions. Franchisees may want to inquire about the reasons for these notes receivable, the repayment terms, and the potential impact on Deka Lash's financial stability. Understanding these relationships can help a franchisee assess the overall financial health and transparency of the franchisor.
It's worth noting that the notes receivable from related parties can fluctuate over time, as seen by the changes in the reported amounts for different years. Reviewing these trends can offer a more comprehensive view of the financial interactions between Deka Lash and its related entities. A potential franchisee should consider this information as part of their due diligence process to make an informed investment decision.