What was the investment in intangible assets for Engineering For Kids in 2023?
Engineering_For_Kids Franchise · 2025 FDDAnswer from 2025 FDD Document
,219 | 37,219 | | BALANCE, December 31, 2024 | $ 100 | $ 112,512 | $ 112,612 |
ENGINEERING FOR KIDS INTERNATIONAL, LLC STATEMENTS CASH FLOWS YEARS ENDED DECEMBER 31, 2024 2023, AND 2022
| 2024 | 2023 | 2022 | |
|---|---|---|---|
| INCREASE (DECREASE) IN CASH AND CASH | |||
| EQUIVALENTS | |||
| Cash flows from operating activities | $ 37,219 | $ 34,933 | $ 56,260 |
| Net income | |||
| Adjustments to reconcile net income to | |||
| net cash provided (used) by operating activities | |||
| Amortization | 10,437 | - | 2,235 |
| Changes in assets and liabilities | |||
| Accounts receivable | (13,138) | 16,709 | (44,865) |
| Prepaid expenses | 3,625 | 111 | 8,879 |
| Accounts payable | (320) | (6,318) | - |
| Due to/from related party | (130,008) | 63,874 | 30,249 |
| Accrued liabilities | (1,927) | 6,244 | (20,060) |
| Total adjustments | (131,331) | 80,620 | (23,562) |
| Net cash provided (used) by operating activities | (94,112) | 115,553 | 32,698 |
| Cash flows from investing activities | |||
| Investment in intangible assets | (1,808) | (28,934) | (22,345) |
| NET INCREASE (DECREASE) IN CASH AND | (95,920) | 86,619 |
Source: Item 22 — CONTRACTS (FDD page 53)
What This Means (2025 FDD)
According to Engineering For Kids' 2025 Franchise Disclosure Document, the investment in intangible assets in 2023 was $28,934. This figure reflects the company's expenditure on assets that do not have a physical form but provide long-term value, such as intellectual property or franchise rights. Understanding this investment is crucial for potential franchisees as it indicates the company's commitment to developing and maintaining its brand and proprietary systems. These assets can contribute to the overall strength and recognition of the Engineering For Kids brand.
Additionally, the FDD provides a breakdown of intangible assets, specifically the website, with a value of $51,281 in 2023. After accounting for accumulated amortization of $2,235, the net intangible assets amounted to $49,046. Amortization is the process of spreading the cost of an intangible asset over its useful life, reflecting the gradual decline in its value. This accounting practice provides a more accurate picture of the asset's current value and its contribution to the company's financial health.
Prospective franchisees should consider these figures in the context of the overall financial health and investment strategy of Engineering For Kids. A consistent investment in intangible assets, such as the website and other intellectual properties, can signal a forward-thinking approach and a commitment to maintaining a competitive edge in the market. It is advisable for potential franchisees to inquire about the specific types of intangible assets the company invests in and how these assets are expected to contribute to the success of individual franchise locations.