What was the amount of accrued expenses for Ledgers in 2024?
Ledgers Franchise · 2025 FDDAnswer from 2025 FDD Document
doubt about Loyalty Business Services, LLC's ability to continue as a going concern for a reasonable period of time.
We are required to 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 |
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 2024 were $4,755. This figure is part of the company's current liabilities, which totaled $895,945 for the same year. Accrued expenses represent liabilities that have been incurred but not yet paid, such as wages, taxes, or interest. These are distinct from accounts payable, which totaled $15,010 in 2024, representing short-term obligations to suppliers or vendors.
Understanding the level of accrued expenses can provide insight into Ledgers' short-term financial obligations and how well it manages its liabilities. A significant increase in accrued expenses from one year to the next could indicate potential cash flow issues or a change in payment practices. In this case, accrued expenses decreased from $9,975 in 2023 to $4,755 in 2024.
For a prospective franchisee, it's important to monitor these figures over time to assess the financial health and stability of Ledgers. Comparing these values with industry benchmarks can also help evaluate whether the company's financial practices are in line with similar businesses. Reviewing the complete financial statements and seeking professional financial advice is recommended to fully understand the implications of these figures.