What were the ROU assets for Learningrx as of September 30, 2024 and 2023?
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 right-of-use assets are detailed in the balance sheets. As of September 30, 2023, Learningrx had right-of-use assets totaling $220,053. Looking back to the previous year, as of September 30, 2022, the right-of-use assets were $289,858.
Right-of-use (ROU) assets typically represent a company's right to use an asset (like property or equipment) for a specified period. These assets are usually associated with lease agreements. For a Learningrx franchisee, understanding these figures can provide insight into the company's leasing obligations and how they manage their assets.
The decrease in right-of-use assets from 2022 to 2023 could indicate changes in Learningrx's leasing strategy, such as renegotiating lease terms, terminating leases, or a change in accounting practices. A prospective franchisee might want to inquire about the nature of these assets and the terms of the associated leases to better understand the company's financial commitments and strategies.
It's important to note that these figures reflect the financial position of Learningrx as a whole and not necessarily the financial situation of an individual franchise. However, understanding the franchisor's financial health and asset management practices is a crucial part of the due diligence process for any potential franchisee.