What was the amount of cash and cash equivalents for Ledgers in 2023?
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 company's cash and cash equivalents totaled $181,077 in 2023. This figure reflects the amount of liquid assets readily available to Ledgers for meeting its short-term obligations and funding its operations during that year.
For a prospective franchisee, understanding the franchisor's cash position is crucial. A healthy cash balance suggests that Ledgers is financially stable and capable of supporting its franchisees. It indicates the franchisor's ability to invest in ongoing development, marketing, and support programs, which can directly benefit franchisees.
However, it's also important to consider this figure in the context of Ledgers' overall financial health. Analyzing trends over multiple years, as presented in the table, provides a more comprehensive view. The cash and cash equivalents decreased from $264,411 in 2022 to $181,077 in 2023, and then increased to $424,085 in 2024. Reviewing the complete financial statements and notes, including the statements of cash flow, can offer further insights into the factors driving these changes and their potential implications for franchisees.
Prospective franchisees should also inquire about how Ledgers manages its cash flow and what strategies it has in place to maintain a healthy financial position. Understanding the franchisor's financial management practices can help franchisees assess the long-term viability of the franchise system and the level of support they can expect to receive.