What was the restated total stockholders' equity for Expense Reduction Analysts as of December 31, 2022?
Expense_Reduction_Analysts Franchise · 2025 FDDAnswer from 2025 FDD Document
Before Income Tax | 375,866 | 40,834 | 416,700 | | Net Income | 115,952 | 40,834 | 156,786 | | Net Income Attributable to ERA, Inc. | 105,119 | 40,834 | 145,953 |
Consolidated Statement of Changes in Stockholders' Equity for the year ended of December 31, 2022:
| Previously Reported | Increase (Decrease) | Restated | |
|---|---|---|---|
| Stockholders' Equity: | 0.635, 323 | 00.400 | /F4 00E) |
| Accumulated Deficit, December 31, 2021 | (114,485) | 60,400 | (54,085) |
| Net Income | 105,119 | 40,834 | 145,953 |
| Retained Earnings, December 31, 2022 | (9,366) | 101,234 | 91,868 |
| Total Stockholders' Equity, December 31, | 3.00.00 | ||
| 2021 | 4,128,931 | 60,400 | 4,189,331 |
| Net Income | 115,952 | 40,834 | 156,786 |
| Total Stockholders' Equity, December 31, | o contract | ||
| 2022 | 4,244,883 | 101,234 | 4,346,117 |
Consolidated Statement of Cash Flows for the year ended December 31, 2022:
| reviously Reported | ncrease Jecrease) | - 1 | Restated | ||
|---|---|---|---|---|---|
| Development of Internal-Use Software | _ | 15 |
Source: Item 23 — RECEIPTS (FDD pages 58–215)
What This Means (2025 FDD)
According to Expense Reduction Analysts' 2025 Franchise Disclosure Document, the restated total stockholders' equity as of December 31, 2022, was $4,346,117. This figure reflects adjustments made to the previously reported financial statements to correct errors in accounting for capitalized software. The initial total stockholders' equity was $4,244,883, but after an increase of $101,234 related to internal-use software, the restated total reached $4,346,117.
For a prospective franchisee, this restatement indicates that Expense Reduction Analysts has undergone an audit and made necessary corrections to its financial reporting. While restatements are not uncommon, it is crucial to understand the reasons behind them. In this case, the adjustment was due to an error in accounting for capitalized software, as detailed in Note 12 of the financial statements.
It is important for potential franchisees to review the audited financial statements and related notes carefully to assess the financial health and stability of Expense Reduction Analysts. Understanding the nature of the restatement and its impact on the company's financials can provide valuable insights into the franchisor's accounting practices and overall financial management. Consulting with a financial advisor is recommended to fully comprehend the implications of these financial statements.