What was the amount of Learningrx's state deferred taxes for 2024?
Learningrx Franchise · 2025 FDDAnswer from 2025 FDD Document
| Income | | | |---|---|---| | Royalty fees | $ 1 ,192,359 | $ 1 ,192,063 | | Initial franchise fees | 114,551 | 162,286 | | Area development fees | 9,769 | 6,200 | | Technology and training fees | 113,401 | 112,854 | | Transfer fees | 24,500 | - | | Renewal fees | 7,000 | 7,000 | | Materials fees | 15,888 | 16,479 | | Marketing fees | 73,535 | 17,418 | | Interest and other income | 20,726 | 5,295 | | Total Income | 1,571,729 | 1,519,595 | | Expenses | | | | Bad debt | 29,764 | - | | Depreciation | 898 | 898 | | Franchise system expenses | 615,225 | 564,949 | | Marketing and development | 50,212 | 34,373 | | Outside consultants | 104,033 | 105,341 | | Overhead | 79,864 | 133,279 | | Professional fees | 67,938 | 90,734 | | Rent | 60,000 | 80,000 | | Research and development | 24,000 | 39,138 | | Sales expenses | 246,224 | 268,100 | | Technology | 124,023 | 184,121 | | Total Expenses | 1,402,181 | 1,500,933 | | Net Income Before Income Taxes | 169,548 | 18,662 | | Income Tax (Expense) | (240) | (11,481) | | Net Income | $ 169,308 | $ 7,181 | The provision for income taxes consists o
Source: Item 23 — RECEIPT (FDD pages 54–209)
What This Means (2025 FDD)
According to Learningrx's 2025 Franchise Disclosure Document, the state deferred taxes for 2024 were $(9,029). This figure represents the deferred tax amount specifically at the state level for that year. Deferred taxes arise from temporary differences between the book (accounting) and tax values of assets and liabilities. These differences reverse over time, resulting in taxable or deductible amounts in future years.
For a prospective Learningrx franchisee, understanding deferred taxes is crucial for assessing the financial health and tax obligations of the franchise. The negative value indicates a future deductible amount, which could potentially reduce future state tax liabilities. This deferred tax asset can be used to offset future taxable income, providing a financial benefit to the company.
It's important to note that deferred tax assets are not always guaranteed to be realized. Their realization depends on the company's ability to generate sufficient future taxable income to utilize the deductible amounts. Therefore, franchisees should consider the factors that could affect Learningrx's future profitability and taxable income when evaluating the significance of this deferred tax asset.