How many common stock non-voting shares are issued and outstanding for Gokhale Method?
Gokhale_Method Franchise · 2024 FDDAnswer from 2024 FDD Document
| 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 outstan |
Source: Item 22 — CONTRACTS (FDD page 34)
What This Means (2024 FDD)
According to Gokhale Method's 2024 Franchise Disclosure Document, the company has authorized 1,000 non-voting shares of common stock. However, as of the provided financial statements for 2021 and 2020, no non-voting shares have been issued or are outstanding. These shares have a par value of $0.01.
This means that while Gokhale Method has the ability to issue up to 1,000 non-voting shares, it has not yet done so. Non-voting shares typically do not grant the holder the right to vote on company matters, but they may have other rights, such as the right to receive dividends.
A prospective franchisee should inquire with Gokhale Method about the company's plans for these authorized but unissued shares. Understanding the potential future issuance of these shares and the rights they would carry is important for assessing the overall capital structure and potential future equity dilution.