What was the total value of Deka Lash's other assets on 2/31/2023?
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 | |||
| Current portion of notes receivable | 13,414 | 29,950 | ||||
| Current maturities of deferred direct franchising costs | _ | 569,298 | _ | 564,211 | _ | 510,978 |
| TOTAL CURRENT ASSETS | 2,551,255 | 2,766,188 | Ξ | 2,631,920 | ||
| PROPERTY AND EQUIPMENT, at cost | 140,284 | 200,047 | 103,776 | |||
| Less: accumulated depreciation | _ | (119,092) | _ | (101,144) | _ | (87,705 |
| TOTAL PROPERTY AND EQUIPMENT | _ | 21,192 | 98,903 | _ | 16,071 | |
| OTHER ASSETS | ||||||
| Intangible assets, net | 34,891 | 50,141 | 51,672 | |||
| Notes receivable, net of current portion | 17,500 | 74,100 | ||||
| Deferred direct franchising costs, net of current | 2,593,893 | 3,072,873 | 3,048,017 | |||
| Deposits | _ | _ | 11,010 | _ | 3,719 | |
| TOTAL OTHER ASSETS | _ | 2,646,284 | 3,208,124 | _ | 3,103,408 | |
| TOTAL ASSETS | $ | 5,218,731 | $ | 6,073,215 | $ | 5,751,399 |
| LIABILITIES AND MEMB | ER'S | CAPITAL | ||||
| CURRENT LIABILITIES | ||||||
| Accounts payable | 5 | 372,771 | 5 | 143,996 | 5 | 118,334 |
| Accrued liabilities | 425,702 | 491,506 | 405,831 | |||
| Current maturities of deferred franchise fees | 1,159,901 | 1,183,930 | 1,08 |
Source: Item 23 — RECEIPT (FDD pages 63–234)
What This Means (2024 FDD)
According to Deka Lash's 2024 Franchise Disclosure Document, the total value of other assets as of February 31, 2023, was $2,646,284. This figure is part of the company's balance sheet, reflecting the cumulative value of assets that are not classified as current assets or property and equipment. These 'other assets' include intangible assets net, notes receivable net of current portion, deferred direct franchising costs net of current, and deposits.
For a prospective Deka Lash franchisee, understanding the composition and value of these other assets is crucial for assessing the overall financial health and stability of the franchisor. A significant portion of these assets consists of deferred direct franchising costs, which represent expenses incurred by Deka Lash in securing franchise agreements. The value of these deferred costs is amortized over the life of the franchise agreement, impacting the franchisor's profitability over time.
It's important to note that the financial statements provide a snapshot at a specific point in time and are subject to change. While the FDD provides historical financial data, it may not be indicative of future performance. A potential franchisee should consult with a financial advisor to thoroughly analyze Deka Lash's financial statements and understand the implications of these assets on the franchisor's long-term financial stability. Additionally, February 31 is not a valid date, so there may be a typo in the FDD.