What was the amount of interest expense for Kidokinetics in 2022?
Kidokinetics Franchise · 2024 FDDAnswer from 2024 FDD Document
23, 2022, and 2021
| 2023 | 2022 | 2021 | |||
|---|---|---|---|---|---|
| Operating revenue | |||||
| Initial franchise fees | $ 2,796,637 | $ | 689,548 | $ | 281,000 |
| Royalty fees | 201,199 | 86,911 | 56,577 | ||
| Service revenue | 467,961 | 87,473 | - | ||
| Advertising fees | 29,635 | - | - | ||
| Apparel sales | 13,774 | 27,823 | - | ||
| Total operating revenue | 3,509,206 | 891,755 | 337,577 | ||
| Operating expenses | |||||
| General and administrative | 1,697,537 | 989,921 | 475,718 | ||
| Professional fees | 674,880 | 81,198 | 76,154 | ||
| Commissions | 1,716,506 | 490,302 | 125,315 | ||
| Advertising and marketing | 71,433 | 116,633 | 70,163 | ||
| Total operating expenses | 4,160,356 | 1,678,054 | 747,350 | ||
| Loss from operations | (651,150) | (786,299) | (409,773) | ||
| Interest expense | 97,922 | 25,021 | 1,943 | ||
| Net loss | $ (749,072) | $ | (811,320 |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 59)
What This Means (2024 FDD)
According to Kidokinetics's 2024 Franchise Disclosure Document, the interest expense for the company in 2022 was $25,021. This figure is part of the company's audited financial statements, which include balance sheets, statements of operations, and cash flows for the fiscal years ending December 31, 2023, 2022, and 2021. These statements provide an overview of the financial health and performance of Kidokinetics over the three-year period.
For a prospective franchisee, understanding the interest expense is crucial as it reflects the cost of borrowing and can impact the company's profitability. A lower interest expense may indicate better financial management or less reliance on debt, while a higher expense could suggest potential financial strain. Reviewing these trends over multiple years, as presented in the FDD, offers insights into the company's financial stability and its ability to manage its debts.
It's important to note that interest expense is just one component of the overall financial picture. A prospective franchisee should also consider other factors such as revenue, operating expenses, and net income to get a comprehensive understanding of Kidokinetics's financial performance. Consulting with a financial advisor to analyze these statements and understand their implications is advisable before making any investment decisions.