What was the total state tax expense, including both current and deferred taxes, for Itan in 2024?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
| Accrued payroll | $ | 14,518 | $ 4,743 |
|---|---|---|---|
| Credit card payable | _ | 48,673 | 42,852 |
| $ | 63,191 | $ 47,595 | |
NOTE 8 CONTRACT LIABILITIES
The Company signed a ten-year, non-refundable Area Development Agreement (ADA) in December 2023. The ADA is for the opening of ten to twenty salons over ten years. This amount is to be recognized on a straight-line basis over the course of the te
Source: Item 23 — RECEIPT (FDD pages 44–190)
What This Means (2025 FDD)
According to Itan's 2025 Franchise Disclosure Document, the company's state tax expenses included both current and deferred taxes. In 2024, Itan's current state tax expense was $6,013, and the deferred state tax expense was $2,149. The document also shows a combined figure of $7,302 for deferred taxes, which seems to incorporate another element beyond just state taxes.
To clarify, the current state tax expense represents the amount of taxes due and payable for the year 2024. The deferred tax expense, on the other hand, arises from temporary differences between the accounting for tax purposes and financial reporting purposes. These differences often relate to items like depreciation methods or revenue recognition timing.
Therefore, the total state tax expense, combining both current and deferred portions, amounted to $8,162 ($6,013 + $2,149) for Itan in 2024. This figure provides insight into Itan's tax obligations and how these obligations are recognized over time, which can be useful for prospective franchisees assessing the company's financial health and stability.