What was the amount of deferred revenue for Kidokinetics in 2022?
Kidokinetics Franchise · 2024 FDDAnswer from 2024 FDD Document
3, 2022, and 2021:
| Deferred revenue, current | $ | 506,073 | $ | 595,065 | $ | - | |
|---|---|---|---|---|---|---|---|
| Deferred revenue, non-current | 1,844,262 | 289,713 | - | ||||
| -$ | 2.350.335 | $ | 884.778 | $ | _ |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 59)
What This Means (2024 FDD)
According to Kidokinetics' 2024 Franchise Disclosure Document, the company's deferred revenue is divided into current and non-current portions. As of December 31, 2022, the current deferred revenue was $595,065, and the non-current deferred revenue was $289,713.
In simpler terms, deferred revenue represents payments Kidokinetics has received for services or products that have not yet been fully delivered or earned. The 'current' portion includes revenue expected to be recognized within the next year, while the 'non-current' portion relates to revenue that will be recognized over a longer period.
For a prospective Kidokinetics franchisee, understanding deferred revenue is crucial because it reflects the company's financial stability and future revenue streams. A high deferred revenue balance suggests that Kidokinetics has a solid pipeline of future business, which can be a positive indicator for potential franchisees.
However, it's also important to consider the context of these figures. Franchisees should investigate how Kidokinetics recognizes revenue and how this might impact the company's financial performance. Understanding the terms and conditions associated with the deferred revenue can provide additional insights into the company's financial health and business practices.