What was the impairment of digital assets for Exit in 2022?
Exit Franchise · 2025 FDDAnswer from 2025 FDD Document
n and U.S. regions from sub-franchisors. The notes bear interest between 3.00% and 10.00%, mature between 2024 and 2033, and are secured by performance contracts in the franchisor agreements.
The components of notes receivable receivable were as follows at December 31:
| State | Effective Date |
|---|---|
| Illinois | April 30, 2025 |
| Michigan | March 15, 2025 |
| Minnesota | Pending |
| North Dakota | Pending |
| South Dakota | August 16, 2025 |
| Wisconsin | September 2, 2025 |
Note 3 Notes Receivable (Continued)
When management has determined t
Source: Item 23 — RECEIPT (FDD pages 42–235)
What This Means (2025 FDD)
According to Exit's 2025 Franchise Disclosure Document, in 2022, Exit recognized an impairment loss of $1,820,185 based on the underlying market price of its digital assets. This impairment loss reflects a decrease in the value of digital assets, such as Bitcoin and Ethereum, held by the company.
For a prospective franchisee, this indicates that Exit has invested in digital assets, which are subject to market fluctuations and potential impairment. The impairment loss in 2022 suggests that the value of these assets decreased significantly during that year.
It's important to note that while Exit recognized an impairment loss in 2022, there was no such loss in 2023. By the end of 2023, the carrying value of digital assets held by Exit was $943,094. Furthermore, in 2024, Exit sold these digital assets for a gain of $2,125,033, indicating a recovery in value and a successful sale. This history of digital asset management provides insight into Exit's investment strategies and risk management practices.