What was the total value of Exit's digital assets (net) in 2024?
Exit Franchise · 2025 FDDAnswer from 2025 FDD Document
| ASSETS | ||||||
|---|---|---|---|---|---|---|
| 2024 | 2023 | 2022 | ||||
| Other assets | ||||||
| Digital assets (net) | - | 943,094 | 943,094 |
Note 4 Digital Assets
During the year ended December 31, 2021, the Company purchased $2,463,219 of Bitcoin and $300,060 of Ethereum. During the year ended December 31, 2022, the Company recognized an impairment loss of $1,820,185 based on the underlying market price of the digital assets. There was no impairment loss recognized during the year ending December 31, 2023. As of December 31, 2023 and 2022, the carrying value of digital assets held was $943,094. During the year ended December 31, 2024, the digital assets were sold for a gain of $2,125,033.
Source: Item 23 — RECEIPT (FDD pages 42–235)
What This Means (2025 FDD)
According to Exit's 2025 Franchise Disclosure Document, the net value of their digital assets in 2024 was zero. The balance sheet shows that under assets, specifically 'Digital assets (net),' the value listed for 2024 is blank, while in 2023 the value was $943,094 and in 2022 the value was $943,094.
Additional information in the FDD explains that during 2021, Exit purchased $2,463,219 of Bitcoin and $300,060 of Ethereum. In 2022, Exit recognized an impairment loss of $1,820,185 due to the market price of the digital assets. There was no impairment loss recognized in 2023. By 2024, Exit sold all digital assets, resulting in a gain of $2,125,033.
This indicates that Exit's strategy regarding digital assets changed significantly between 2021 and 2024, moving from investment and recognition of impairment losses to complete liquidation of these assets. A prospective franchisee should inquire about Exit's current and future strategies regarding digital assets, as this could impact the company's financial performance and technology-related decisions.