What was the amount of advances to/borrowings from related parties for Ledgers in 2024?
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 |
${\bf LOYALTY; BUSINESS; SERVICES,; LLC; (FORMERLY; FIDE; HOLDING,; LLC)}$
Statements of Cash Flow
For the Years Ended December 31, 2024, 2023, and 2022
| 2024 | 2023 | 2022 | |||
|---|---|---|---|---|---|
| Cash flows from operating activities: | J.S | ||||
| Net loss | $ | (361,991) | $ (506,600) | $ | (447,527) |
| Adjustments to reconcile net loss to net cash | |||||
| used in operating activities: | |||||
| Change in allowance for credit losses | = | 67,468 | - | ||
| Write off of notes receivable, net of | |||||
| deferred revenue | 46,310 | 226,854 | = | ||
| Accrued interest income | (5,550) | (72,480) | (5,718) | ||
| Benefit from income taxes | (104,000) | (98,000) | (153,000) | ||
| (Increase) decrease in: | × (3) | ||||
| Royalty receivables | 112 | (3,302) | - | ||
| Notes receivable | = | 11,929 | 1,252 | ||
| Increase (decrease) in: | |||||
| Accounts payable | æ | (110,964) | 6,410 | ||
| Accrued expenses | (5,220) | 4,823 | (3,362) | ||
| Deferred revenue | (40,989) | (113,362) | (114,383) | ||
| Net cash used in operating activities | (471,328) | (593,634) | (716,328) | ||
| Cash flows from investing activities: | |||||
| (Advances to) borrowings |
Source: Item 22 — CONTRACTS (FDD page 46)
What This Means (2025 FDD)
According to Ledgers' 2025 Franchise Disclosure Document, the amount of advances to or borrowings from related parties in 2024 was $714,336. This figure represents the net cash flow provided by investing activities related to these transactions.
For a prospective franchisee, this indicates the financial interactions Ledgers has with its related parties. It is important to note that this is a cash flow figure, reflecting the net change in these advances or borrowings during the year. A positive number suggests that Ledgers received more in advances or repaid more borrowings than it extended to related parties.
Understanding these related-party transactions is crucial for assessing the overall financial health and stability of Ledgers. Franchisees should inquire about the nature of these related-party transactions, the terms of any advances or borrowings, and the potential impact on the franchise system. This due diligence will help in evaluating the financial risks and opportunities associated with investing in a Ledgers franchise.