What was the reported value of Learningrx's equipment and software, net, in the first column?
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 | 369,943 | 447,550 |
| Stockholder's Equity | ||
| Common stock, no par value; |
Source: Item 23 — RECEIPT (FDD pages 54–209)
What This Means (2025 FDD)
According to Learningrx's 2025 Franchise Disclosure Document, the value of equipment and software, net, is detailed in the balance sheets as of September 30, 2024 and 2023. The financial statement shows the value of equipment and software, net, for 2023 was $2,432 and for 2022 was $3,289.
This figure represents the net book value of Learningrx's equipment and software, which is the original cost less any accumulated depreciation. For a prospective franchisee, this indicates the level of investment Learningrx itself has in its own equipment and software. It's important to note that these figures reflect Learningrx's corporate assets and not the initial investment a new franchisee would need to make in equipment and software to open their own Learningrx center.
Prospective franchisees should carefully review Item 7 of the FDD, which outlines the estimated initial investment, including costs for equipment, software, and other necessary items to start the franchise. Comparing Learningrx's corporate investment to the estimated initial investment for franchisees can provide a better understanding of the capital expenditure required to start and operate a Learningrx franchise.