What was the amount of accrued expenses for Ledgers in 2022?
Ledgers Franchise · 2025 FDDAnswer from 2025 FDD Document
o communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control related matters that we identified during the audit.
Bernard Robinson & Company, I.S.P.
Raleigh, North Carolina April 28, 2025
${\bf LOYALTY; BUSINESS; SERVICES,; LLC; (FORMERLY; FIDE; HOLDING,; LLC)}$
Balance Sheets
December 31, 2024, 2023 and 2022
| 2 | Assets | ||||||
|---|---|---|---|---|---|---|---|
| 2024 | 2023 | 2022 | |||||
| Current Assets: | S | ||||||
| Cash and cash equivalents | $ 424,085 | $ 181,077 | $ 264,411 | ||||
| Royalty receivables | 3,190 | 3,302 | - | ||||
| Notes receivable, current | 40,760 | 229,901 | |||||
| Total Current Assets | 427,275 | 225,139 | 494,312 | ||||
| Non-Current Assets: | |||||||
| Notes receivable, less current portion | = | 634,000 | |||||
| Due from related parties | 630,180 | 1,229,516 | 1,320,815 | ||||
| Deferred tax asset | 715,000 | 611,000 | 513,000 | ||||
| Total Non-Current Assets | 1,345,180 | 1,840,516 | 2,467,815 | ||||
| Total Assets | $ 1,772,455 | $ 2,065,655 | $ 2,962,127 | ||||
| Liabilities and Members' Equity | |||||||
| Current Liabilities: | |||||||
| Accounts payable | $ 15,010 | $ 15,010 | $ 125,974 | ||||
| Accrued expenses | 4,755 | 9,975 | 5,152 | ||||
| Due to related parties | 852,180 | 737,180 | 305,000 | ||||
| Deferred revenue - current | 24,000 | 94,000 | 110,000 | ||||
| Total Current Liabilities | 895,945 | 856,165 | 546,126 | ||||
| Non-Current Liabilities: | |||||||
| Deferred revenue | 83,000 | 53,989 | 711,614 | ||||
| Total Non-Current Liabilities | 83,000 | 53,989 | 711,614 | ||||
| Total Liabilities | 978,945 | 910,154 | 1,257,740 | ||||
| Members' Equity: | |||||||
| Members' equity |
Source: Item 22 — CONTRACTS (FDD page 46)
What This Means (2025 FDD)
According to Ledgers' 2025 Franchise Disclosure Document, the accrued expenses for the company in 2022 were $5,152. This figure is part of the company's liabilities, representing short-term financial obligations that Ledgers had not yet paid as of the end of that fiscal year. Accrued expenses typically include items like wages, utilities, and taxes that have been incurred but not yet invoiced or paid. These are categorized as current liabilities, reflecting their short-term nature. Understanding the level of accrued expenses can provide insights into the company's short-term financial management and payment practices.
For a prospective franchisee, knowing the accrued expenses of Ledgers offers a glimpse into the company's financial health and its approach to managing short-term liabilities. While a lower figure might suggest efficient expense management, it is essential to consider this in the context of the company's overall financial position. A consistent track record of managing accrued expenses indicates a stable and predictable financial operation. Franchisees can use this information to assess the financial stability of the franchisor and to understand how well the franchisor manages its own financial obligations.
It's important to note that accrued expenses are just one component of the company's overall liabilities. A comprehensive financial analysis would involve examining all liabilities, including accounts payable, deferred revenue, and any long-term debts. This broader view provides a more accurate picture of the company's financial obligations and its ability to meet those obligations. Prospective franchisees should consider these figures in conjunction with other financial metrics to gain a well-rounded understanding of the franchisor's financial health.
In summary, the $5,152 in accrued expenses for Ledgers in 2022 reflects the company's short-term financial obligations at that time. While this figure alone does not provide a complete financial picture, it offers valuable insight into the company's expense management practices and overall financial stability. Prospective franchisees should use this information as part of a broader due diligence process to assess the financial health and stability of the Ledgers franchise system.