What was the net value of Kidokinetics' leasehold improvements, after accumulated depreciation, as of December 31, 2021?
Kidokinetics Franchise · 2024 FDDAnswer from 2024 FDD Document
hold improvements:
| Leasehold improvements | $ | 61,427 | $ 61,427 | $ | 56,987 | |
|---|---|---|---|---|---|---|
| Less: accumulated depreciation | (24,700) | (13,300 | (1,900) | |||
| $ | 36,727 | $ 48,1 |
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 the company's leasehold improvements, after accumulated depreciation, as of December 31, 2021, was $55,087.
Leasehold improvements refer to alterations or upgrades made to a leased property. These improvements are typically capitalized as assets and then depreciated over their useful life or the term of the lease, whichever is shorter. The 'net' value means the original cost of these improvements less any accumulated depreciation. Depreciation is the systematic allocation of the cost of an asset over its useful life, reflecting the gradual decline in its value due to wear and tear, obsolescence, or other factors.
For a prospective Kidokinetics franchisee, this figure provides insight into the company's capital investments in its leased locations. It reflects the financial resources Kidokinetics has allocated to improving its business premises. The depreciation expense associated with these improvements is also reported in the financial statements, offering a more complete picture of the costs associated with maintaining and operating the business. Reviewing these figures over the three years presented (2021-2023) can show trends in Kidokinetics's investment strategy and asset management.