As of December 31, 2024, what amount of Itan's cash was in excess of the FDIC limit?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
ies - The Company follows the alternative accounting standard for private companies with respect to entities under common control. As such, entities under common control have not been evaluated under the guidance in the variable interest subsections of the Financial Accounting Standards Board ("FASB") ASC 810.
Fair value measurements - The Company follows accounting standards consistent with the FASB codification which defines fair value, establishes a framework for measuring fair value and enhances disclosures about fair value measurements for all fi
Source: Item 23 — RECEIPT (FDD pages 44–190)
What This Means (2025 FDD)
According to Itan's 2025 Franchise Disclosure Document, as of December 31, 2024, Itan had $0 in cash that was in excess of the FDIC limit. In contrast, as of December 31, 2023, Itan had $104,387 in excess of the FDIC limit. The FDIC insures deposits up to $250,000 per bank. Itan holds its cash deposits at a regional bank.
This information is relevant for prospective franchisees as it provides insight into how Itan manages its cash and the extent to which its deposits are insured. The fact that Itan had no cash in excess of the FDIC limit as of December 31, 2024, suggests that the company is managing its cash in a way that keeps it fully insured.
However, it is important to note that the amount of cash in excess of the FDIC limit can fluctuate from year to year, as demonstrated by the fact that Itan had $104,387 in excess of the limit as of December 31, 2023. Prospective franchisees should consider this information in the context of Itan's overall financial health and risk management practices.