What was the total amount of Dryject's liabilities in 2021?
Dryject Franchise · 2025 FDDAnswer from 2025 FDD Document
ther matters, the planned scope and timing of the audit, significant audit findings, and certain internal control related matters that I identified during the audit.
Neptune, New Jersey
KOGER K. STEIN, CPA LLC
March 31, 2023
DRYJECT MANAGEMENT, LLC BALANCE SHEETS DECEMBER 31, 2022 AND 2021
| 2022 | _ | 2021 | ||
|---|---|---|---|---|
| ASSETS | ||||
| Current Assets: | ||||
| Cash | S | 168,705 | $ | 246,487 |
| Accounts receivable | 206,666 | 133,394 | ||
| Total Current Assets | - | 375,371 | 379,881 | |
| Intangible Assets: | ||||
| Goodwill | 1,509,159 | 1,509,159 | ||
| Organization costs | 9,618 1,518,777 | 9,618 1,518,777 | ||
| Less: Accumulated Amortization | 7 | (977,993) | (827,078) | |
| Net Intangible Assets | 540,784 | 691,699 | ||
| Total Assets | $ | 916,155 | s | 1,071,580 |
| LIABILITIES AND MEMBER'S CAPITAL | ||||
| Current Liabilities: | ||||
| Accounts payable | $ | 195,817 | $ | 173,723 |
| Accrued expenses | 20,910 | 12,394 | ||
| Current portion of long-term debt | 148,217 |
Source: Item 8 — BUSINESS RELATIONSHIP (FDD pages 68–229)
What This Means (2025 FDD)
According to Dryject's 2025 Franchise Disclosure Document, the company's total liabilities in 2021 amounted to $1,020,182. This figure represents the sum of Dryject's current liabilities, which totaled $330,316, and other liabilities, specifically long-term debt net of the current portion, which was $689,866.
Understanding the composition of these liabilities is crucial for potential franchisees. Current liabilities, such as accounts payable and accrued expenses, reflect Dryject's short-term financial obligations. Long-term debt, on the other hand, indicates the company's longer-term financial commitments. A significant portion of Dryject's liabilities is tied to long-term debt, which could be related to financing the purchase of the company's membership units in 2016.
Prospective franchisees should consider the implications of Dryject's debt structure. While debt can fuel growth and expansion, it also introduces financial risk. High levels of debt can strain cash flow and limit Dryject's ability to invest in new opportunities or weather economic downturns. Therefore, it is important for potential franchisees to assess Dryject's financial health and stability, taking into account its debt obligations and overall financial performance.
It is also worth noting that the line of credit balance is reflected on the books of DryJect Inc. Acquisition Corporation, as the proceeds are deposited directly into that entity and used for their expenses. Additionally, Dryject had transactions with related parties, specifically DryJect Inc. Acquisition Corporation, including management fees and accounts payable. These related-party transactions should be carefully scrutinized to ensure they are conducted at arm's length and do not create any conflicts of interest.