How much was Exit's amortization and depreciation in 2022?
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 | |
|---|---|---|---|
| Cash flows from operating activities | |||
| Net income (loss) | $ 70,717 | (1,327,749) | (2,138,260) |
| Adjustments to reconcile net income (loss) to net cash (used | |||
| in) provided by operating activities | |||
| Amortization and depreciation | 65,562 | 92,338 | 125,888 |
| Credit loss (recovery) expense | - | 1,304,738 | 382,936 |
| Deferred tax expense (benefit) | (236,005) | 154,000 | (402,000) |
| Regional rights disposed | - | - | 975,000 |
| Gain on sale of property and equipment | - | - | (20,291) |
| Impairment of digital assets | - | - | 1,820,185 |
| Gain from disposal of digital assets | (2,125,033) | - | - |
| Litigation settlement accrual | 1,500,000 | - | - |
| (Increase) decrease in assets: | |||
| Trade accounts receivable | 214,735 | (1,542,684) | (109,189) |
| Prepaid expenses | 134,060 | (121,155) | 210,754 |
| Notes receivable | 471,387 | 3,433,640 | (1,610,436) |
| Increase (decrease) in liabilities: | |||
| Accounts payable and accrued liabilities | (974,870) | 1,436,092 | 487,204 |
| Income taxes receivable (payable) | 436,792 | (1,009,378) | (327,032) |
| Deferred revenue | (1,043,229) | (812,304) | 955,007 |
| Net cash (used in) provided by operating activities | (1,485,884) | 1,607,538 | 349,766 |
| Cash flows from investing activities | |||
| Purchase of propert |
Source: Item 23 — RECEIPT (FDD pages 42–235)
What This Means (2025 FDD)
According to Exit's 2025 Franchise Disclosure Document, the total amortization and depreciation expenses for the year ended December 31, 2022, amounted to $125,888. This figure is part of the adjustments made to reconcile net income (loss) to net cash used in operating activities, as detailed in the consolidated statements of cash flows. Understanding these non-cash expenses is crucial for assessing Exit's financial performance and cash flow dynamics.
Amortization refers to the systematic allocation of the cost of intangible assets over their useful lives, while depreciation is the equivalent concept for tangible assets. These expenses reflect the reduction in value of Exit's assets over time. For a prospective franchisee, knowing the level of these expenses can help in understanding the capital intensity of the business and the potential need for future investments in maintaining or replacing assets.
It's important to note that this figure represents the combined amortization and depreciation expenses. A franchisee might want to further investigate the breakdown between these two components to better understand the nature of the assets being amortized or depreciated. This level of detail can provide insights into the types of assets Exit relies on and their respective lifecycles. Also, it is important to consider that the leasehold amortization expense for 2022 was $30,667.
Reviewing these expenses in conjunction with other financial statement items, such as capital expenditures and asset acquisitions, provides a more comprehensive view of Exit's investment and asset management strategies. This information is valuable for prospective franchisees in evaluating the overall financial health and sustainability of the franchise system.