What was the 'Additional Paid in Capital' for Gokhale Method in 2020?
Gokhale_Method Franchise · 2024 FDDAnswer from 2024 FDD Document
22
| 2021 | 2020 | |||
|---|---|---|---|---|
| ASSETS | ||||
| CURRENT ASSETS | ||||
| Cash and cash equivalents | S | 120,520 | 5 | 112,072 |
| Accounts receivable, net | 4,941 | 3,344 | ||
| Other current assets | - | - | 428 | |
| TOTAL ASSETS | S | 125,461 | S | 115,844 |
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||
| CURRENT LIABILITIES | ||||
| Accounts payable | 5 | 8,652 | $ | 6,731 |
| Deferred revenue | 4,825 | 13,248 | ||
| Payable to Teachers | 1,365 | |||
| Other current liabilities | - | 138 | _ | 138 |
| TOTAL LIABILITIES | _ | 14,980 | 1 | 20,117 |
| STOCKHOLDERS' EQUITY | ||||
| Common stock (1,000 voting shares anthorized, 500 shares issued and | 5 | 5 | ||
| outstanding, $0.01 par value) | ||||
| Common stock (1,000 non-voting shares authorized, no shares issued | ||||
| and outstanding, $0.01 par value) | ||||
| Additional Paid in Capital | 74,995 | 74,995 | ||
| Stockholder's contribution | 25,662 | 25,662 | ||
| Retained earnings (accumulated deficit) | _ | 9,819 | (4,935) | |
| Total stockholders' equity | 110,481 | 95,727 | ||
| TOTAL LIABILITIES & STOCKHOLDERS' EQUI |
Source: Item 22 — CONTRACTS (FDD page 34)
What This Means (2024 FDD)
According to Gokhale Method's 2024 Franchise Disclosure Document, the Additional Paid in Capital as of December 31, 2020, was $74,995. This figure is part of the Stockholders' Equity section of the balance sheet, reflecting the amount of capital contributed by stockholders above the par value of the common stock.
Additional Paid in Capital represents the excess amount over the par value that investors paid for the company's stock during its initial offering or subsequent issuances. It is a key component of the company's overall equity and provides insights into the financial structure of Gokhale Method.
For a prospective franchisee, understanding the Additional Paid in Capital can offer a glimpse into the financial health and historical funding of Gokhale Method. It shows how much investment the company has received from its shareholders, which can be an indicator of investor confidence and the company's ability to fund its operations and growth. This information, combined with other financial metrics, can help potential franchisees assess the stability and long-term viability of the franchise system.