What was the total amount of Face Foundrie's prepaid expenses as of December 31, 2023?
Face_Foundrie Franchise · 2025 FDDAnswer from 2025 FDD Document
f December 31, 2024, the Company had an allowance for doubtful accounts of $25,000. There was no allowance for doubtful accounts as of December 31, 2023 and 2022. As of December 31, 2024, 2023 and 2022, the accounts receivable balance was $424,770, $96,311 and $101,020, respectively.
(g) Prepaid Expenses
As of December 31, 2024 and 2023, the Company had prepaid expenses totaling $8,530 and $17,976, respectively, consisting primarily of prepaid insurance and office expenses. Prepaid
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 73)
What This Means (2025 FDD)
According to Face Foundrie's 2025 Franchise Disclosure Document, the company's prepaid expenses totaled $17,976 as of December 31, 2023. These prepaid expenses primarily consisted of prepaid insurance and office expenses.
Prepaid expenses represent payments Face Foundrie has made in advance for services or goods that will be used or consumed in future accounting periods. These are recorded as assets on the balance sheet until the benefit is realized, at which point they are recognized as expenses. For a Face Foundrie franchisee, understanding the nature and amount of prepaid expenses can provide insight into the company's financial management and future obligations.
Face Foundrie evaluates these expenses regularly to ensure they are appropriately recorded and accurately reflect the timing of economic benefits to be derived. This indicates that Face Foundrie is actively managing its prepaid expenses to align with the economic benefits they provide, which is a standard accounting practice.