What is the difference between the prepaid taxes assets of iTan in 2023 and 2024?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
f significant accounting estimates made by management, as well as evaluate the overall presentation of financial statements.
- Conclude whether, in our judgment, there are conditions or events, considered in the aggregate that raise substantial doubt about iTan Franchising, Inc.'s ability to continue as a going concern for a reasonable period of time.
We are required to communicate with those charged with governance regarding, among other matters the planned scope and timing of the audit, significant audit findings, and certain internal control related matters that we identified during the audit.
CONSIDINE & CONSIDINE An accountancy corporation
Considine of Considine
March 11, 2025
| 2024 | 2023 | |
|---|---|---|
| ASSETS | ||
| ASSETS | ||
| CURRENT ASSETS | ||
| Cash | $ 12,947 | $ 349,230 |
| Accounts receivable | 126,374 | 96,871 |
| Due from related parties (note 5) | 1,700,000 | 1,550,230 |
| Prepaid expenses | 13,426 | 9,196 |
| Prepaid taxes | 137,975 | - |
| Deferred tax asset (note 9) | 40,619 | 37,027 |
| 2,031,341 | 2,042,554 | |
| PROPERTY AND EQUIPMENT (note 3) | 70,353 | 88,280 |
| The Entry Alb Equilibria (note 3) | ||
| TOTAL ASSETS | 2,101,694 | 2,130,834 |
| LIABILITIES AND STOCKHOLDER'S EQUITY | ||
| CURRENT LIABILITIES | ||
| Accounts payable | 16,029 | 3,765 |
| Accrued liabilities ( |
Source: Item 23 — RECEIPT (FDD pages 44–190)
What This Means (2025 FDD)
According to iTan's 2025 Franchise Disclosure Document, the prepaid taxes for 2023 and 2024 are detailed in the balance sheets. In 2023, iTan had prepaid taxes of $5,150, while in 2024, the prepaid taxes increased significantly to $137,975. This represents a substantial increase in prepaid tax assets from 2023 to 2024.
The increase in prepaid taxes from 2023 to 2024 could be due to a variety of factors. It may indicate a change in iTan's tax strategy, an increase in estimated tax payments, or adjustments related to prior-year tax liabilities. Prepaid taxes are assets on the balance sheet because they represent taxes that have been paid in advance and will offset future tax liabilities.
For a prospective iTan franchisee, understanding these figures is crucial for assessing the company's financial health and tax management practices. A significant change in prepaid taxes could impact the company's cash flow and overall profitability. It is important to investigate the reasons behind such changes to ensure they align with sound financial management and do not indicate any underlying financial issues. Franchisees should seek clarification from iTan regarding the reasons for this increase to fully understand its implications.