How much did Kidokinetics spend on investment in intangible assets in 2022?
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 pay |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 59)
What This Means (2024 FDD)
According to Kidokinetics's 2024 Franchise Disclosure Document, the company invested $29,000 in intangible assets during 2022. This figure is derived from the cash flow statement, specifically within the cash flows from investing activities section. Intangible assets are non-physical assets that provide long-term value to the company, such as patents, trademarks, and copyrights.
For a prospective Kidokinetics franchisee, understanding the company's investment in intangible assets can provide insights into its commitment to developing and protecting its brand and proprietary systems. These assets can contribute to the overall value and competitive advantage of the franchise system. A consistent investment in these areas may suggest that Kidokinetics is focused on long-term growth and innovation.
It's important to note that this investment is a cash outflow, meaning the company spent this amount. Reviewing these figures over several years, as presented in the FDD, can reveal trends in Kidokinetics's investment strategy. A potential franchisee should consider these investments as part of their overall assessment of the franchise's financial health and growth potential.