What was the net value of property and equipment for Learningrx as of September 30, 2024?
Learningrx Franchise · 2025 FDDAnswer from 2025 FDD Document
planned scope and timing of the audit, significant audit findings, and certain internal control related matters that we identified during the audit.
Springfield, Missouri
January 3, 2024
LearningRx Franchise Corporation Balance Sheets As of September 30, 2023 and 2022
Assets
| 2023 | 2022 | |
|---|---|---|
| Current Assets | ||
| Cash and cash equivalents Accounts receivable, net of allowance of | $ 551,641 | $ 534,941 |
| $23,629 in 2023 and $46,075 in 2022 | 243,535 | 246,972 |
| Prepaid expenses | 1,635 | |
| Deferred income tax asset | 19,663 | 24,158 |
| Total Current Assets | 814,839 | 807,706 |
| Property and Equipment | ||
| Equipment and software, net | 2,432 | 3,289 |
| Net Property and Equipment | 2,432 | 3,289 |
| Other Noncurrent Assets | ||
| Deferred income taxes | 155,827 | 162,723 |
| Right-of-use assets | 220,053 | 289,858 |
| Net Other Noncurrent Assets | 375,880 | 452,581 |
| Total Assets | $ 1,193,151 | $ 1,263,576 |
| Liabilities And Stockhol | lders' Equity | |
| Current Liabilities | ||
| Accounts payable | 5,871 | • |
| Liability for marketing and development funds | 144,019 | 129,692 |
| Deferred franchise fee revenue | 28,000 | |
| Current portion of lease liability | 66,452 | 69,805 |
| Total Current Liabilities | 216,342 | 227,497 |
| Long-term lease liability | 153,601 | 220,053 |
| Total Liabilities | 369,94 |
Source: Item 23 — RECEIPT (FDD pages 54–209)
What This Means (2025 FDD)
According to Learningrx's 2025 Franchise Disclosure Document, the net value of property and equipment as of September 30, 2023, was $2,432. The net value of property and equipment as of September 30, 2022, was $3,289.
For a prospective Learningrx franchisee, this indicates the level of investment Learningrx has in its own equipment and software. It is important to note that these figures represent the net value, meaning the original cost less any accumulated depreciation. The FDD states that Learningrx records additions of property and equipment at cost, and computes depreciation and amortization using the straight-line method over the estimated useful lives of the assets, beginning when the asset is placed in service.
It's also relevant that Learningrx's policy is to expense property and equipment expenditures costing less than $5,000. This means that smaller equipment purchases are immediately written off rather than being capitalized and depreciated over time. This policy could explain the relatively low net value of property and equipment on Learningrx's balance sheets. Total depreciation expense for the years ended September 30, 2024 and 2023 were $898 and $898, respectively.