table_specific

What was the total members' equity (deficit) for Kidokinetics in 2022?

Kidokinetics Franchise · 2024 FDD

Answer 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's 2024 Franchise Disclosure Document, the total members' equity (deficit) for the company in 2022 was a deficit of $(830,568). This figure represents the sum of the members' interests, which was $406,386, and the retained earnings (accumulated deficit), which was $(1,236,954) at the end of 2022.

A negative members' equity, or deficit, indicates that Kidokinetics's liabilities exceeded its assets during that period. For a prospective franchisee, this could signal financial instability or challenges within the company. It's important to note that many new franchise systems initially operate at a loss as they invest in growth and establishing their brand.

However, a sustained deficit may raise concerns about the long-term viability of the franchise. Therefore, a potential franchisee should investigate the reasons behind the deficit, the steps Kidokinetics is taking to address it, and the company's overall financial health. It would be prudent to consult with a financial advisor to fully understand the implications of this deficit before making any investment decisions.

It is also important to compare these figures with industry benchmarks and the financial performance of other franchise systems to assess whether this deficit is within an acceptable range for a company of Kidokinetics's age and size. Further due diligence, including speaking with existing franchisees, is strongly recommended to gain a comprehensive understanding of the financial risks and opportunities associated with investing in a Kidokinetics franchise.

Disclaimer: This information is extracted from the 2024 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.
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