What was the increase or decrease in Net Income for Expense Reduction Analysts that led to the restated value?
Expense_Reduction_Analysts Franchise · 2025 FDDAnswer from 2025 FDD Document
| 4,218,834 | 101,234 | 4,320,068 | | | 4,244,883 | 101,234 | 4,346,117 | | | 10,417,221 | 101,234 | 10,518,455 |
NOTE 12 CORRECTION OF ERRORS (CONTINUED)
Consolidated Statement of Operations for the year ended December 31, 2022:
| Previously Reported | Increase (Decrease) | Restated | |
|---|---|---|---|
| General and Administrative Expenses | $ 5,408,181 | $ (40,834) | $ 5,367,347 |
| Net Income Before Income Tax | 375,866 | 40,834 | 416,700 |
| Net Income | 115,952 | 40,834 | 156,786 |
| Net Income Attributable to ERA, Inc. |
Source: Item 23 — RECEIPTS (FDD pages 58–215)
What This Means (2025 FDD)
According to Expense Reduction Analysts' 2025 Franchise Disclosure Document, the company's net income saw an increase that led to a restated value. Specifically, the net income was previously reported as $115,952, which increased by $40,834, resulting in a restated net income of $156,786. The net income attributable to Expense Reduction Analysts, Inc. was previously reported as $105,119, which also increased by $40,834, resulting in a restated value of $145,953.
This restatement of net income suggests a correction or adjustment to the initial financial reporting. For a prospective franchisee, this highlights the importance of thoroughly reviewing the financial statements and understanding the reasons behind any restatements. It's crucial to assess whether these changes reflect positively or negatively on the company's financial health and stability.
Furthermore, the accumulated deficit as of December 31, 2021, was previously reported as ($114,485). After an increase of $60,400, the restated accumulated deficit became ($54,085). Similarly, the retained earnings as of December 31, 2022, were previously reported as ($9,366). Following an increase of $101,234, the restated retained earnings amounted to $91,868. These adjustments to the accumulated deficit and retained earnings further emphasize the need for careful scrutiny of the company's financial history and the reasons for these changes.
Overall, while the restatement itself isn't necessarily negative, it underscores the importance of due diligence. A potential franchisee should seek clarification from Expense Reduction Analysts regarding the reasons for the restatements and their implications for the company's future financial performance. Understanding these factors will help in making an informed decision about investing in the franchise.