What was the total value of the stockholder's deficit for Focalpoint Coaching in 2023?
Focalpoint_Coaching Franchise · 2025 FDDAnswer from 2025 FDD Document
083 | 421,607 | | | $ 641,697 | $ 529,061 |
BALANCE SHEETS December 31, 2023 and 2022
LIABILITIES AND STOCKHOLDERS' DEFICIT
| 2023 | 2022 | |||
|---|---|---|---|---|
| CURRENT LIABILITIES | ||||
| Accounts payable and accrued expenses | $ | 711,455 | $ | 552,653 |
| Unearned revenue | 69,116 | 198,800 | ||
| Income tax payable | 110,777 | 44,306 | ||
| $ | 891,348 | $ | 795,759 | |
| STOCKHOLDERS' DEFICIT | ||||
| Common stock, $.001 par value; authorized | ||||
| 67,260 shares; issued and outstanding | $ | 100 | $ | 100 |
| Treasury stock, $.001 par value; $10 cost; |
Source: Item 21 — Financial Statements (FDD page 56)
What This Means (2025 FDD)
According to Focalpoint Coaching's 2025 Franchise Disclosure Document, the total value of the stockholder's deficit in 2023 was $"(249,651)". This figure represents the cumulative losses and equity transactions of the company, resulting in a negative net worth from the perspective of the stockholders.
Specifically, the stockholder's deficit is calculated by combining several components. It includes common stock valued at $100, treasury stock with a cost of $(10) for 32,743 outstanding shares, and a retained deficit of $(249,741). The treasury stock represents shares that Focalpoint Coaching reacquired, reducing the overall equity. The retained deficit indicates accumulated losses over the company's history that have not been offset by profits.
For a prospective franchisee, this information is crucial as it provides insight into the financial health and stability of Focalpoint Coaching. A significant stockholder's deficit might raise concerns about the company's ability to support its franchisees or invest in future growth. It is essential to consider this figure in conjunction with other financial metrics and to conduct thorough due diligence before making a decision to invest in a Focalpoint Coaching franchise.