What was the purchase of intangible asset 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 purchase of intangible assets for the period ending February 31, 2023, was $2,750. This figure is part of the cash flow statement, specifically within the cash flows from investing activities. Investing activities generally include the purchase and sale of long-term assets, and in this case, it reflects Deka Lash's investment in intangible assets.
For a prospective franchisee, understanding the franchisor's investment in intangible assets can provide insights into the brand's strategy and potential value. Intangible assets might include items like software, patents, trademarks, or other intellectual property that Deka Lash owns or licenses. These assets can contribute to the brand's competitive advantage and overall market position.
The cash flow statement also shows the purchase of property and equipment was $(2,372) and capitalized software development costs were $12(150) for the same period. Reviewing these figures alongside other cash flow activities can help potential franchisees assess the financial health and investment patterns of Deka Lash. It is important to note that the date provided, February 31, is not a valid date, so the information may be based on an estimate or typo in the document.