Are there any notes to the Dryject financial statements that I should review?
Dryject Franchise · 2025 FDDAnswer from 2025 FDD Document
turity of three months or less to be cash equivalents. For the year ended December 31, the amounts paid for income taxes and interest were as follows:
| Interest | $ | 43,844 | $ | 58,812 | |
|---|---|---|---|---|---|
| Income taxes | $ | - 4 | S | = |
- Note 6 Line of Credit The Company and DryJect Inc. Acquisition Corporation have a $500,000 revolving line of credit with WSFS Bank, with interest at 2% over prime, of which $120,141 was outstanding as of December 31, 2024 and $120,141 was outstanding as of December 31, 2023. The line of credit, for the first three years will be a revolving line of credit. As of August 2026, the outstanding balance shall be termed out in monthly payments of principal and interest and is due to expire in August 2033. The line of credit balance is reflected on the books of DryJect Inc. Acquisition Corporation since the proceeds are deposited directly into the Corporation and used for their expenses.
- Note 7 Transactions with Related Parties For the year ended December 31, the Company incurred management fees of $745,000 in 2024 and $710,000 in 2023 to DryJect Inc. Acquisition Corporation. At December 31, the Company had an account payable of $24,541 in 2024 and $95,314 in 2023 to DryJect Inc. Acquisition Corporation. The Company and DryJect Inc. Acquisition Corporation have a common owner.
- Note 8 Reclassifications Certain amounts in the prior year financial statements have been reclassified for comparative purposes to conform with the presentation in the current year financial statements.
- Note 9 Subsequent Events The Company has evaluated subsequent events through March 24, 2025, which is the date the financial statements were available to be issued. No subsequent events have been identified that require recognition or disclosure in the financial statements were identified by management.
DRYJECT MANAGEMENT, LLC FINANCIAL STATEMENTS DECEMBER 31, 2023
ROGER K. STEIN, CPA LLC
CERTIFIED PUBLIC ACCOUNTANT 2300 STATE ROUTE 66, SUITE 202 NEPTUNE, NEW JERSEY 07753
Phone: 732-869-1170 Fax: 732-869-1130 www.rogersteincpa.com
MEMBER: NEW JERSEY SOCIETY OF CERTIFIED PUBLIC ACCOUNTANTS
LICENSED NEW JERSEY & NEW YORK
INDEPENDENT AUDITOR'S REPORT
TO: DRYJECT MANAGEMENT, LLC HATBORO, PENNSYLVANIA
Opinion
I have audited the accompanying financial statements of DryJect Management, LLC (a single member LLC), which comprise the balance sheets as of December 31, 2023 and 2022, and the related statements of income and member's capital, and cash flows for the years then ended, and the related notes to the financial statements.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 49)
What This Means (2025 FDD)
According to Dryject's 2025 Franchise Disclosure Document, there are several notes to the company's financial statements that a prospective franchisee should review. These notes provide additional context and details about Dryject's financial position.
The notes include information about a $500,000 line of credit that Dryject Inc. Acquisition Corporation has with WSFS Bank, with interest at 2% over prime. As of December 31, 2024, $120,141 was outstanding. The line of credit is reflected on the books of DryJect Inc. Acquisition Corporation. There are also details regarding transactions with related parties, specifically DryJect Inc. Acquisition Corporation, including management fees of $745,000 in 2024 and an account payable of $24,541 at the end of 2024. The Company and DryJect Inc. Acquisition Corporation have a common owner.
The financial statements also include information regarding goodwill, which arose from the purchase of 100% of the membership units in 2016, resulting in a goodwill recognition of $1,509,159. Dryject amortizes this goodwill over ten years on a straight-line basis. Additionally, the notes discuss the transfer of membership in August 2016, where 100% of the ownership was transferred to a new member, financed by debt. 75% of this debt is reported on Dryject's books.
Finally, the notes address concentrations of credit risk, noting that Dryject maintains its cash balances at a financial institution insured by the FDIC up to $250,000, and as of December 31, 2024, the company had no uninsured cash balances. The company evaluated subsequent events through March 24, 2025, and no events requiring recognition or disclosure were identified.