What was the depreciation expense for Learningrx in 2022?
Learningrx Franchise · 2025 FDDAnswer from 2025 FDD Document
t closely monitors outstanding balances and provides for estimates of uncollectible balances in an allowance for doubtful accounts. The allowance for doubtful accounts at September 30, 2023 and 2022 was $23,629 and $46,075, respectively.
1. Summary of Significant Accounting Policies - (continued)
Property and Equipment
Additions of property and equipment are recorded at cost and depreciation and amortization are computed using the straight-line method over the estimated useful lives of the assets beginning when the asset is placed in service. Expenditures that materially extend th
Source: Item 23 — RECEIPT (FDD pages 54–209)
What This Means (2025 FDD)
According to Learningrx's 2025 Franchise Disclosure Document, the depreciation expense for the year ended September 30, 2022, was $898. This figure reflects the accounting recognition of the reduction in value of Learningrx's assets over that period. Depreciation is a non-cash expense that reflects the wear and tear, obsolescence, or usage of assets like equipment and software.
For a prospective Learningrx franchisee, understanding depreciation is important for assessing the overall financial health and profitability of the franchise. While depreciation itself doesn't represent an immediate cash outflow, it does reduce the taxable income, which can lower income tax obligations. This can be particularly relevant when evaluating the long-term financial projections provided by Learningrx.
It's also worth noting that Learningrx calculates depreciation using the straight-line method, which means the cost of the asset is evenly spread over its useful life. Additionally, Learningrx's policy is to expense property and equipment expenditures costing less than $5,000, which could impact the reported depreciation expense. Franchisees should consider these accounting practices when comparing Learningrx's financial statements with those of other franchise systems.