When did Kidokinetics enter into the lease agreement for office space?
Kidokinetics Franchise · 2024 FDDAnswer from 2024 FDD Document
- Operating Lease
During the year ended December 31, 2021, the Company entered into a lease agreement for office space. The lease expires in 2024, with the option to renew. As the Company adopted ASC 842 on January 1, 2022, there are no right of use assets or operating lease liabilities as of December 31, 2021. As of December 31, 2023 and 2022, the Company recorded a right of use asset of $24,593 and $81,087, respectively. As of December 31, 2023 and 2022, the Company had the following current and non-current portions of its operati
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 59)
What This Means (2024 FDD)
According to Kidokinetics's 2024 Franchise Disclosure Document, the company entered into a lease agreement for office space during the year ended December 31, 2021. The lease is set to expire in 2024, but Kidokinetics has the option to renew it.
Kidokinetics adopted ASC 842 on January 1, 2022, which affected how the lease was accounted for. As of December 31, 2021, there were no right of use assets or operating lease liabilities recorded. However, by December 31, 2023, the company recorded a right of use asset of $24,593, and as of December 31, 2022, the right of use asset was $81,087.
As of December 31, 2023, Kidokinetics had a current operating lease liability of $25,318 and a non-current operating lease liability of $1,844,262. In 2022, the current portion was $57,509. These figures reflect the company's obligations for its office space lease and how they are accounted for under accounting standards.