What was the net cash used in investing activities by Kidokinetics in 2021?
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 net cash used in investing activities in 2021 was $104,187. This figure represents the total cash outflow for investments made by Kidokinetics during that year. These investments included $56,987 in leasehold improvements and $47,200 in intangible assets.
For a prospective franchisee, understanding the franchisor's investment activities can provide insights into how Kidokinetics is allocating its resources. Significant investments in leasehold improvements and intangible assets may indicate a focus on long-term growth and development of the brand.
It is important to note that these figures reflect the financial performance of Kidokinetics as a whole and not necessarily the performance of individual franchise locations. Franchisees should focus on the financial performance of their own locations, while also considering the overall financial health and investment strategies of the franchisor.