What was the total cash asset amount for Itan in 2023?
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, a
Source: Item 23 — RECEIPT (FDD pages 44–190)
What This Means (2025 FDD)
According to Itan's 2025 Franchise Disclosure Document, the company's cash assets totaled $349,230 in 2023. This figure represents the amount of cash and cash equivalents Itan held at the end of that fiscal year. Cash equivalents are defined as financial instruments with a fixed maturity date of less than three months. This cash balance is part of Itan's total current assets, which also include accounts receivable, amounts due from related parties, prepaid expenses, and deferred tax assets.
It's important to note that Itan holds its cash deposits at a regional bank, and these deposits are insured by the Federal Deposit Insurance Corporation (FDIC) up to $250,000. In 2023, Itan had $104,387 in excess of the FDIC limit. While management believes the company is not exposed to any significant credit risk regarding its cash, prospective franchisees should be aware of how Itan manages its cash and the implications of exceeding FDIC insurance limits.
For a prospective Itan franchisee, understanding the franchisor's cash position can provide insights into the financial stability and operational efficiency of the company. A healthy cash balance can indicate Itan's ability to invest in growth, support franchisees, and manage unforeseen expenses. Reviewing the trend in cash assets over multiple years, as presented in the FDD, can offer a more comprehensive view of Itan's financial health.