What was the loss on disposal of property and equipment for Itan in 2022?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
------|---------|------------------|--------------|------------------------|---------|--|---------|--|---------|--|----------|--------| | | Shares | Amount | capital | | capital | | capital | | capital | | capital | | earnings | equity | | Balance at December 31, 2021 | 1,500 | $ 50,000 | $ | 38,000 | $ 1,198,747 | $ 1,286,747 | | | | | | | | | | Net earnings | | | | i.e.i | 233,770 | 233,770 | | | | | | | | | | Balance at December 31, 2022 | 1,500 | 50,000 | | 38,000 | 1,432,517 | 1,520,517 | | | | | | | | | | Net earnings | | vā. | | = | 272,146 | 272,146 |
Source: Item 23 — RECEIPT (FDD pages 44–190)
What This Means (2025 FDD)
According to Itan's 2025 Franchise Disclosure Document, the loss on disposal of property and equipment in 2022 was $900. This figure is part of the adjustments made to reconcile net earnings to net cash provided by operating activities.
For a prospective Itan franchisee, this indicates that Itan did have some losses related to disposing of property and equipment during that year. While $900 may not be a substantial amount, it's a tangible example of how asset disposal can impact the company's cash flow.
It's important to note that this loss is a non-cash item, meaning it doesn't directly involve cash leaving the company. Instead, it reflects the difference between the book value of the disposed assets and any proceeds received from their sale. Reviewing these figures helps provide a more complete picture of Itan's financial health and operational efficiency.