What was the total liabilities and stockholder's equity for Itan in 2022?
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 25, 2024
| 2023 | 2022 | |
|---|---|---|
| ACCETC | ||
| ASSETS | ||
| CURRENT ASSETS | ||
| Cash | $ 349,230 | $ 18,409 |
| Accounts receivable | 96,871 | 101,411 |
| Due from related parties (note 5) | 1,550,230 | 1,399,221 |
| Prepaid expenses | 9,196 | 83,782 |
| Prepaid taxes | 5,150 | 5,087 |
| Deferred tax asset (note 9) | 37,027 | 4,661 |
| belefied tax asset (note 5) | 37,027 | 1,001 |
| 2,042,554 | 1,612,571 | |
| PROPERTY AND EQUIPMENT (note 3) | 88,280 | 657 |
| TOTAL ASSETS | 2,130,834 | 1,613,228 |
| 101/12/105215 | 2,130,031 | |
| LIABILITIES AND STOCKHOLDER'S EQUITY | ||
| CURRENT LIABILITIES | ||
| Accounts payable | 3,765 | 792 |
| Accrued liabilities (note 7) | 47,595 | 31,399 |
| Accrued taxes |
Source: Item 23 — RECEIPT (FDD pages 44–190)
What This Means (2025 FDD)
According to Itan's 2025 Franchise Disclosure Document, the total liabilities and stockholder's equity in 2022 was $1,613,228. This figure represents the sum of what Itan owes to creditors (liabilities) and the value of the company attributable to its owners (stockholder's equity) at the end of the 2022 fiscal year. This is a fundamental accounting equation (Assets = Liabilities + Equity).
For a prospective franchisee, this number provides a snapshot of Itan's financial stability and capital structure. A higher number generally indicates a stronger financial base, assuming liabilities are well-managed and equity is substantial. Reviewing this figure in conjunction with other financial metrics, such as revenue and net income, can offer a more comprehensive understanding of Itan's financial health.
It is important to note that this figure is a snapshot at a specific point in time (December 31, 2022) and can fluctuate. Prospective franchisees should analyze trends over several years to assess the overall financial trajectory of Itan. Additionally, understanding the components of liabilities and equity (e.g., types of debt, retained earnings) can provide deeper insights into the company's financial management and potential risks.
Franchisees should compare Itan's liabilities and equity to similar companies in the salon franchise industry to benchmark its financial position. A significant deviation from industry norms may warrant further investigation. Consulting with a financial advisor is recommended to fully interpret the implications of this figure and other financial data presented in the FDD.