What was the amount of cash paid for interest by Kidokinetics in 2023?
Kidokinetics Franchise · 2024 FDDAnswer from 2024 FDD Document
| 2023 | 2022 | 2021 | |
|---|---|---|---|
| Cash flow from operating activities: | |||
| Net loss | $ (749,072) | $ (811,320) | $ (411,716) |
| Adjustments to reconcile net loss to | |||
| net cash used in operating activities: | |||
| Amortization | 25,446 | 22,001 | 11,191 |
| Depreciation | 11,400 | 11,400 | 1,900 |
| Amortization of right of use asset | 56,494 | 53,741 | - |
| Changes in operating assets and liabilities: | |||
| Accounts receivable | (446,453) | (498) | 2,530 |
| Deferred contract costs | (905,048) | (608,934) | - |
| Other non-current assets | - | - | (9,600) |
| Accounts payable | 394,700 | 285,300 | 60,075 |
| Accrued expenses | 97,201 | 41,609 | - |
| Credit card liability | (47,346) | 158,575 | 47,806 |
| Loans from shareholder | 3,347 | 1,498 | 18,226 |
| Operating lease liability | (57,509) | (53,016) | - |
| Deferred revenue | 1,465,557 | 884,778 | - |
| Net cash used in operating activities | (151,283) | (14,866) | (279,588) |
| Cash flows from investing activities: | |||
| Investment in leasehold improvements | - | (4,440) | (56,987) |
| Investment in intangible assets | - | (29,000) | (47,200) |
| Net cash used in investing activities | - | (33,440) | (104,187) |
| Cash flows from financing activities: | |||
| Draw on note payable | 30,000 | 76,050 | - |
| Net draws on lines of credit | 243,821 | - | - |
| Principal payments on note payable | (60,941) | (15,109) | - |
| Member contributions (distributions) | (17,133) | (20,691) | 422,077 |
| Net cash provided by financing activities | 195,747 | 40,250 | 422,077 |
| Net change in cash and cash equivalents | 44,464 | (8,056) | 38,302 |
| Cash at the beginning of the year | 32,500 | 40,556 | 2,254 |
| Cash at the end of the year | $ 76,964 | $ 32,500 | $ 40,556 |
| Supplementary disclosures of cash flows | |||
| Cash paid for interest | $ 97,922 | $ 25,021 | $ 1,943 |
| Cash paid for taxes | $ - | $ ĨH. |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 59)
What This Means (2024 FDD)
According to Kidokinetics's 2024 Franchise Disclosure Document, the cash paid for interest in 2023 was $97,922. This figure is part of the supplementary disclosures of cash flows within the financial statements. For a prospective franchisee, this indicates the level of Kidokinetics's debt obligations and how much cash was used to service that debt during the year.
Understanding the cash paid for interest can help a franchisee assess the financial health and stability of Kidokinetics. A high amount of interest paid could suggest that the company has significant debt, which might impact its ability to invest in growth or support its franchisees. Conversely, a lower amount could indicate better financial management and less reliance on debt.
It's important to note that this figure represents only the cash outflow for interest expenses and doesn't reflect the total debt obligations of Kidokinetics. A prospective franchisee should review the complete financial statements, including the balance sheet and income statement, to get a comprehensive understanding of the company's financial position. Additionally, it would be prudent to compare these figures with previous years and industry benchmarks to assess whether the interest payments are reasonable and sustainable.