What was the net cash provided by (used in) investing activities 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 | |
|---|---|---|---|
| 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 net cash provided by (used in) investing activities in 2023 was a negative amount. Specifically, Exit used $2,494,470 in investing activities during that year.
Investing activities typically include the purchase and sale of long-term assets, such as property, equipment, and investments. A negative value suggests that Exit spent more cash on these types of investments than it received from selling them. This could be due to Exit purchasing new equipment, acquiring other businesses, or making other capital investments.
For a prospective franchisee, this information provides insight into how Exit manages its finances and invests in its future. While a negative cash flow from investing activities isn't necessarily bad, it's important to understand the reasons behind it. It would be prudent for a potential franchisee to inquire about the specific investments Exit made in 2023 and how those investments are expected to benefit the franchise system in the long term.