What was the total amount of Kidokinetics' operating lease liability (non-current) as of December 31, 2023?
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 | $ | 831,299 | $ | 148,797 |
| Liabilities and Members' Equity (Deficit) | ||||||
| Current liabilities | ||||||
| S | 748,939 | $ | 354,239 | S | 68,939 | |
| Accounts payable | Þ | 138,810 | Ф | 41,609 | $ | 08,939 |
| Accrued expenses Credit card liability | 159,035 | 206,381 | 47,806 | |||
| Loans from member | 34,439 | 31,092 | 29,594 | |||
| Lines of credit | 243,821 , | 31,092 60.041 | 29,394 - | |||
| Note payable, current | 13,158 | 60,941 | - | |||
| Operating lease liability, current | 25,318 | 57,509 | - | |||
| Deferred revenue, current | 506,073 | _ | 595,065 | _ | 146 220 | |
| Total current liabilities Non-current liabilities | 1,869,593 16.042 | _ | 1,346,836 | 146,339 | ||
| Note payable, non-current | 16,842 | 25 210 | - | |||
| Operating lease liability, non-current | 1 044 262 | 25,318 | - | |||
| Deferred revenue, non-current | 1,844,262 | _ | 289,713 | _ | ||
| Total non-current liabilities | 1,861,104 | _ | 315,031 | 146 220 | ||
| Total liabilities | _ | 3,730,697 | _ | 1,661,867 | 146,339 | |
| Members' equity (deficit) | ||||||
| Members' interests | 406,386 | 406,386 | 427,077 | |||
| Retained earnings (accumulated deficit) | (2,003,159) | (1,236,954) | (424,619) | |||
| Total members' equity (deficit) | (1,596,773) | (830,568) | 2,458 | |||
| Total liabilities and members' equity (deficit) | $ | 2,133,924 | $ | 831, |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 59)
What This Means (2024 FDD)
According to Kidokinetics' 2024 Franchise Disclosure Document, the company's total operating lease liability (non-current) as of December 31, 2023, was $1,844,262. This figure represents the portion of Kidokinetics' lease obligations that are not expected to be paid within the next 12 months.
For a prospective franchisee, understanding the franchisor's lease obligations can provide insights into the financial stability and long-term commitments of the company. A significant lease liability might indicate substantial fixed costs, which could impact Kidokinetics' profitability and, by extension, the support and services it can provide to its franchisees.
It's important to note that this liability stems from a lease agreement for office space that Kidokinetics entered into during the year ended December 31, 2021, and which expires in 2024 with an option to renew. The presence of this non-current operating lease liability suggests that Kidokinetics has ongoing, long-term obligations related to its office space, which franchisees should consider as part of their overall assessment of the franchise opportunity.