What were the total liabilities and stockholders' equity 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 total liabilities and stockholders' equity as of September 30, 2024, was $1,193,149. This figure represents the sum of all debts and obligations Learningrx owes to outside parties (liabilities) and the value of the company attributable to its owners (stockholders' equity). This value is a fundamental accounting equation (Assets = Liabilities + Equity) and provides a snapshot of the company's financial health at that specific point in time.
Breaking down the components, Learningrx's total liabilities as of September 30, 2024, amounted to $369,943. This includes both current liabilities (obligations due within one year) such as accounts payable, liability for marketing and development funds, deferred franchise fee revenue, and the current portion of lease liability, as well as long-term liabilities like long-term lease liability. The stockholders' equity, representing the owners' stake in the company, totaled $823,206, comprised of common stock valued at $50,000 and retained earnings of $773,206.
For a prospective Learningrx franchisee, understanding these figures is crucial for assessing the financial stability and solvency of the franchisor. A high level of liabilities compared to equity might indicate higher financial risk, while a healthy equity position suggests a more stable financial foundation. Reviewing these figures over multiple years, as presented in the FDD, can reveal trends in Learningrx's financial performance and its ability to manage debt and generate profits. It is important to note that the total liabilities and equity for the previous year, September 30, 2023, was $1,263,576, indicating a decrease in total liabilities and equity from 2023 to 2024.
It is also important to note that the FDD includes an independent auditor's report, which states that the financial statements of LearningRx Franchise Corporation present fairly, in all material respects, the financial position of LearningRx Franchise Corporation as of September 30, 2024 and 2023. This opinion provides an additional level of assurance regarding the accuracy and reliability of the financial information presented. A prospective franchisee should consult with a financial advisor to fully understand the implications of these financial statements and how they relate to the overall franchise opportunity.