How much did Kidokinetics spend on investment in leasehold improvements in 2022?
Kidokinetics Franchise · 2024 FDDAnswer from 2024 FDD Document
23, 2022, and 2021
| 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 payable | 30,000 | 76,050 | - |
| Net draws on lines of credit | 243,821 | - | - |
| Principal payments on note payable | (60,941) | (15,109) | - |
| Member contributions (distributions) | (17,133) | (20,691) | 422,077 |
| Net cash provided by financing activities | 195,747 | 40,250 | 422,077 |
| Net change in cash and cash equivalents | 44,464 | (8,056) | 38,302 |
| Cash at the beginning of the year | 32,500 | 40,556 | 2,254 |
| Cash at the end of the year | $ 76,964 | $ 32,500 | $ 40,556 |
| Supplementary disclosures of cash flows | |||
| Cash paid for interest | $ 97,922 | $ 25,021 | $ 1,943 |
| Cash paid for taxes |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 59)
What This Means (2024 FDD)
According to Kidokinetics's 2024 Franchise Disclosure Document, the company invested $4,440 in leasehold improvements during 2022. This figure is part of the cash flow statement, specifically under cash flows from investing activities. Leasehold improvements typically include any upgrades or changes made to a leased space to make it suitable for Kidokinetics's business operations.
For a prospective franchisee, this indicates the level of investment Kidokinetics itself has made in improving leased spaces. It's important to note that this figure reflects Kidokinetics's corporate level spending and may not directly correlate to the investment a new franchisee might need to make for their own location. Franchisees should anticipate their own costs for leasehold improvements, which can vary widely depending on the location and the condition of the leased space.
It is also important to consider that this investment is a one-time cash outflow. Reviewing these figures over several years, as presented in the cash flow statement, provides insight into the consistency and scale of such investments. A potential franchisee should inquire about typical leasehold improvement costs for new franchise locations to better understand their potential initial investment.
Therefore, while Kidokinetics's investment in leasehold improvements in 2022 was $4,440, franchisees should conduct their own due diligence to estimate their specific costs, considering factors like location, size, and required modifications to the leased property.