What was the change in trade accounts receivable for Exit in 2023?
Exit Franchise · 2025 FDDAnswer from 2025 FDD Document
roperty and equipment | 2,125,033 | - | 20,291 | | Impairment of digital assets | - | - | (1,820,185) | | Legal settlement | (1,500,000) | - | - | | Interest | 137,304 | 78,187 | 170,816 | | Total other income (expense) | 762,337 | 78,187 | (1,629,078) | | Loss before provision for income taxes and non-controlling | | | | | interests | (389,110) | (1,814,746) | (2,480,526) | | Benefit for income taxes | (459,827) | (486,997) | (342,266) | | Consolidated net income (loss) | 70,717 | (1,327,749) | (2,138,260) | | Noncontrolling interest in subsidiary's loss | 616 | 463 | 691 | | Net income (loss) before foreign currency translation gain (loss) | 71,333 | (1,327,286) | (2,137,569) | | Foreign currency translation gain (loss), net of tax | (162,790) | 7,338 | (40,611) | | Net comprehensive loss | $ (91,457) | $ (1,319,948) | $ (2,178,180) |
EXIT REALTY CORP. INTERNATIONAL CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY FOR THE YEARS ENDED DECEMBER 31, 2024, 2023 AND 2022
| Year Ending December | 31 | Amount | |---|---|---| | 2025 | | $ 290,017 | See accompanying notes to the consolidated financial statements
EXIT REALTY CORP. INTERNATIONAL CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED DECEMBER 31, 2024, 2023 AND 2022
| 2024 | 2023 | 2022 | |
|---|---|---|---|
Source: Item 23 — RECEIPT (FDD pages 42–235)
What This Means (2025 FDD)
According to Exit's 2025 Franchise Disclosure Document, the trade accounts receivable decreased by $1,542,684 in 2023. This figure is part of the cash flow statement, specifically within the cash flows from operating activities section. It reflects the change in the money owed to Exit by its customers during that year.
For a prospective Exit franchisee, this decrease in trade accounts receivable in 2023 suggests that Exit collected a significant amount of outstanding payments. This could be a positive sign, indicating efficient revenue collection processes. However, it's essential to consider this figure in the context of Exit's overall financial performance and business activities during that period.
It is important to note that in 2024, it was discovered that Exit had not correctly accounted for various receivables it had submitted for reimbursement to Exit Realty Corp. International for advertising costs incurred during the year ended December 31, 2023, which resulted in under reported accounts receivable and over reported advertising costs. As a result, the Company restated the 2023 financial statements to report the correct balances. A potential franchisee should inquire about the reasons for the restatement and the measures Exit has taken to prevent similar errors in the future.
Understanding the fluctuations in accounts receivable can help a franchisee assess the financial health and stability of Exit. While a decrease can be favorable, it is crucial to analyze the underlying factors and trends to gain a comprehensive understanding of Exit's financial management practices.