What was the accumulated depreciation for Kidokinetics' leasehold improvements, as reported in the financial statements?
Kidokinetics Franchise · 2024 FDDAnswer from 2024 FDD Document
hold improvements:
| Leasehold improvements | $ | 61,427 | $ 61,427 | $ | 56,987 | |
|---|---|---|---|---|---|---|
| Less: accumulated depreciation | (24,700) | (13,300 | (1,900) | |||
| $ | 36,727 | $ 48,1 |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 59)
What This Means (2024 FDD)
According to Kidokinetics' 2024 Franchise Disclosure Document, the accumulated depreciation for leasehold improvements is detailed in the financial statements. As of December 31, 2023, the accumulated depreciation was ($24,700). For the year ending December 31, 2022, the accumulated depreciation was ($13,300), and for the year ending December 31, 2021, it was ($1,900).
Leasehold improvements represent the costs Kidokinetics has incurred to improve leased spaces, and accumulated depreciation reflects the amount of those costs that have been expensed over time. The net value of leasehold improvements, which is the original cost less accumulated depreciation, is reported as a non-current asset on Kidokinetics' balance sheet.
A prospective Kidokinetics franchisee should note that depreciation is a non-cash expense, meaning it reduces the company's net income without involving an actual outflow of cash. Monitoring accumulated depreciation can help a franchisee understand how Kidokinetics manages its assets and reports its financial performance over time. These figures are audited by an independent auditor, ensuring they are presented fairly in accordance with accounting principles.