What was the net value of Kidokinetics' intangible assets in 2022?
Kidokinetics Franchise · 2024 FDDAnswer from 2024 FDD Document
23, 2022, and 2021
| 2023 | 2022 | 2021 | ||||
|---|---|---|---|---|---|---|
| Assets | ||||||
| Current assets | ||||||
| Cash and cash equivalents | $ | 76,964 | $ | 32,500 | $ | 40,556 |
| Accounts receivable | 446,951 | 498 | - | |||
| Deferred contract costs, current | 340,727 | 326,228 | - | |||
| Total current assets | 864,642 | 359,226 | 40,556 | |||
| Non-current assets | ||||||
| Leasehold improvements, net | 36,727 | 48,127 | 55,087 | |||
| Intangible assets, net | 25,107 | 50,553 | 43,554 | |||
| Right of use asset | 24,593 | 81,087 | - | |||
| Deferred contract costs, non-current | 1,173,255 | 282,706 | - | |||
| Other non-current assets | 9,600 | 9,600 | 9,600 | |||
| Total non-current assets | 1,269,282 | 472,073 | 108,241 | |||
| Total assets | $ | 2,133,924 | $ | 831, |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 59)
What This Means (2024 FDD)
According to Kidokinetics's 2024 Franchise Disclosure Document, the net value of its intangible assets in 2022 was $50,553. This figure represents the value of assets that are not physical, such as trademarks, copyrights, and proprietary methods, after accounting for amortization.
For a prospective Kidokinetics franchisee, understanding the value and composition of these intangible assets is crucial. These assets often represent the brand's competitive advantage and market position. A higher valuation of intangible assets can indicate a stronger brand and more effective operating systems.
However, it's also important to note that intangible assets are subject to amortization, which is the process of gradually writing off their value over time. The FDD also mentions that in 2023, the net intangible assets were valued at $25,107 and in 2021, they were valued at $43,554. This decrease in value from 2022 to 2023 could reflect factors such as amortization, impairment, or changes in the perceived value of the brand's intellectual property. A potential franchisee should inquire about the specific intangible assets Kidokinetics possesses and how they contribute to the franchise's success.