What was the total amount of taxes, including current and deferred, for Learningrx in 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 total income tax expense for 2024 was $240. This figure includes both current and deferred taxes. The current income taxes include federal taxes of $42,057 and state taxes of $9,269. The deferred taxes include federal taxes of ($42,057) and state taxes of ($9,029).
It is important to note that current taxes are calculated using the cash basis of accounting, while deferred income taxes represent the future tax benefit reported using the accrual basis of accounting. This difference arises from variations in depreciation methods and net operating loss carry forwards. As of September 30, 2024, Learningrx had federal net operating losses (NOL) to be carried forward to future years of approximately $930,000.
Prospective franchisees should be aware that these figures reflect Learningrx's corporate tax situation and may not directly translate to the tax obligations of an individual franchise unit. Understanding the interplay between current and deferred taxes, as well as the impact of net operating losses, can provide valuable insight into the financial management of Learningrx.