What accounting standard does Dryject follow for presenting debt issuance costs?

According to Dryject's 2025 Franchise Disclosure Document, the company has adopted FASB ASC 835-30 to account for debt issuance costs. This means that Dryject presents these costs as a reduction of the carrying amount of the debt, rather than as an asset on its balance sheet. Furthermore, the amortization of these debt issuance costs is reported as interest expense within the statement of income and member's capital.

For a prospective Dryject franchisee, this accounting treatment is important for understanding the company's financial statements. By presenting debt issuance costs as a reduction of the debt's carrying amount, Dryject is adhering to a specific accounting standard that impacts how its liabilities are reported. This approach provides a more conservative view of the company's assets and liabilities.

Moreover, the amortization of these costs as interest expense affects the company's reported profitability. Franchisees reviewing Dryject's financial performance should be aware that the interest expense includes not only the actual interest paid on the debt but also the amortization of the debt issuance costs. This could potentially impact the net income and other profitability metrics.

Understanding these accounting practices helps potential franchisees to better interpret Dryject's financial statements and assess the company's financial health and performance. It is a standard accounting practice to provide a transparent view of the company's financial obligations and related expenses.