What was the total value of Kidokinetics' non-current assets 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, |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 59)
What This Means (2024 FDD)
According to Kidokinetics' 2024 Franchise Disclosure Document, the total value of Kidokinetics' non-current assets as of December 31, 2023, was $1,269,282.
Non-current assets are those not expected to be converted to cash within one year. For Kidokinetics, these assets include leasehold improvements, net which were valued at $36,727, intangible assets, net at $25,107, and right of use asset at $24,593. Additionally, deferred contract costs, non-current amounted to $1,173,255, and other non-current assets were $9,600.
A prospective franchisee should understand the composition and valuation of these non-current assets, as they reflect Kidokinetics' long-term investments and financial commitments. Significant deferred contract costs, for example, may relate to franchise agreements and associated expenses amortized over their terms. Leasehold improvements and right of use assets reflect the company's property leases and any improvements made to leased spaces. Intangible assets could include items like trademarks or proprietary systems.
Reviewing these figures in comparison to previous years (2022 and 2021) can reveal trends in Kidokinetics' asset management and investment strategies. For instance, the substantial increase in deferred contract costs from $282,706 in 2022 to $1,173,255 in 2023 could indicate significant growth in franchise agreements or changes in accounting practices. Understanding these assets is crucial for assessing the long-term financial health and stability of Kidokinetics.