Has Kidokinetics experienced any losses in bank deposit accounts where the cash balance exceeded federally insured limits?

According to Kidokinetics's 2024 Franchise Disclosure Document, the company maintains its cash in bank deposit accounts that may, at times, exceed federally insured limits. However, Kidokinetics states that it has not experienced any losses in such accounts. Because of this, Kidokinetics believes it is not exposed to any significant credit risks on cash or cash equivalents.

This statement indicates that while Kidokinetics' cash holdings may surpass the amounts insured by the FDIC (typically $250,000 per depositor, per insured bank), the company has not suffered any financial losses due to bank failures or related issues. This suggests Kidokinetics management is careful in managing its cash and banking relationships.

For a prospective franchisee, this information is reassuring. It implies that Kidokinetics is diligent in protecting its assets and has not encountered problems related to uninsured bank deposits. However, it would be prudent for a potential franchisee to inquire about Kidokinetics' specific policies for managing cash balances and mitigating risks associated with exceeding insured limits, especially if they plan to contribute significantly to the company's cash flow.