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What was the amount of Dryject's amortization expense in 2022?

Dryject Franchise · 2025 FDD

Answer from 2025 FDD Document

| | (34,967) | | SBA grant | | | | 13,500 | | Net loss | 33 | (43,014) | F | (21,467) | | Member's capital - beginning | | 51,398 | | 72,865 | | Member's capital - ending | $ | 8,384 | $ | 51,398 |

DRYJECT MANAGEMENT, LLC STATEMENT OF CASH FLOWS FOR THE YEARS ENDED DECEMBER 31, 2022 AND 2021

- 2022 - 2021
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss $ (43,014) $ (21,467)
Adjustments to reconcile net income to
net cash provided by operating activities:
Amortization Amortization of interest expense (Increase) decrease in: 150,916 4,287 150,915 4,287
Accounts receivable Increase (decrease) in: (73,272) 80,378
Accounts payable 22,094 37,626
Accrued expenses 8,516 762
Net cash provided by operating activities -

Source: Item 8 — BUSINESS RELATIONSHIP (FDD pages 68–229)

What This Means (2025 FDD)

According to Dryject's 2025 Franchise Disclosure Document, the amortization expense for 2022 was $150,916, while the amortization of interest expense was $4,287. These figures are part of the adjustments to reconcile net income to net cash provided by operating activities.

For a prospective Dryject franchisee, understanding these amortization expenses is crucial for assessing the company's financial health and how it manages its assets and debts. Amortization, in general, refers to the process of spreading out the cost of an intangible asset over its useful life. In Dryject's case, the $150,916 likely relates to the amortization of goodwill, as noted elsewhere in the document, stemming from the purchase of membership units in 2016. The amortization of interest expense, amounting to $4,287, reflects the incremental cost of borrowing money, recognized over the life of the loan.

These figures provide insight into Dryject's accounting practices and how it recognizes expenses over time. Franchisees should pay attention to these details as they can impact the company's reported profitability and cash flow. Monitoring these trends over several years, as presented in the FDD, can offer a more comprehensive view of Dryject's financial management and stability. It's also worth noting that these expenses are non-cash, meaning they don't represent actual cash outlays during the year but rather the allocation of previously incurred costs.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.