What was the accrued interest income for Ledgers in 2022?
Ledgers Franchise · 2025 FDDAnswer from 2025 FDD Document
,914 | | Net loss | | (447,527) | (447,527) | | Balances, December 31, 2022 | 3,200,000 | (1,495,613) | 1,704,387 | | Adoption of Topic 326 | | (42,286) | (42,286) | | Net loss (Restated) | | (506,600) | (506,600) | | Balances, December 31, 2023 (Restated) | 3,200,000 | (2,044,499) | 1,155,501 | | Net loss | | (361,991) | (361,991) | | Balances, December 31, 2024 | $ 3,200,000 | $ (2,406,490) | $ 793,510 |
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Statements of Cash Flow
For the Years Ended December 31, 2024, 2023, and 2022
| 2024 | 2023 | 2022 |
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Source: Item 22 — CONTRACTS (FDD page 46)
What This Means (2025 FDD)
According to Ledgers' 2025 Franchise Disclosure Document, the accrued interest income in 2022 was ($5,718). This figure is part of the cash flow from operating activities, specifically an adjustment to reconcile net loss to net cash used in operating activities.
For a prospective franchisee, this number reflects the interest Ledgers earned but had not yet received in cash during that year. The negative value suggests that the accrued interest income reduced the net cash used in operating activities, meaning Ledgers had less cash outflow due to this accrued income.
It's important to note that accrued interest income is a non-cash item. While it impacts the accounting records, it doesn't represent actual cash received during the period. Franchisees should focus on overall cash flow and profitability to gauge the financial health of Ledgers.