What was the total equity for Kidokinetics as of December 31, 2022?
Kidokinetics Franchise · 2024 FDDAnswer from 2024 FDD Document
23, 2022, and 2021
| A | dditional | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Common Stock | Paid-in Members' | Retained | Total | ||||||||
| Shares | A | Mount | Capital | Interests | Earnings | Equity | |||||
| Balance at January 1, 2021 | 100 | $ | 1 | $ | 4,999 | $ | - | $ | (12,903) | $ | (7,9 |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 59)
What This Means (2024 FDD)
According to Kidokinetics's 2024 Franchise Disclosure Document, the total members' equity (deficit) as of December 31, 2022, was ($830,568). This figure represents the sum of members' interests, which was $406,386, and retained earnings (accumulated deficit), which was ($1,236,954).
This significant deficit in equity indicates that Kidokinetics had more liabilities than assets at the end of 2022. For a prospective franchisee, this could signal financial instability within the company. It's important to investigate the reasons behind the deficit, such as accumulated losses or significant liabilities, to assess the risk associated with investing in a Kidokinetics franchise.
Franchisees should carefully review the complete financial statements and consult with a financial advisor to understand the implications of this equity deficit. Further due diligence, including discussions with existing franchisees, is advisable to evaluate the long-term financial health and stability of Kidokinetics.