What was the amount of deferred tax asset 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 |
Source: Item 22 — CONTRACTS (FDD page 46)
What This Means (2025 FDD)
According to Ledgers' 2025 Franchise Disclosure Document, the company's deferred tax asset in 2024 was $715,000. This figure is part of the non-current assets listed in the financial statements. Deferred tax assets arise from temporary differences between the financial statement and tax bases of assets and liabilities.
Specifically for Ledgers, the deferred tax asset is related to net operating loss carryforwards. As of December 31, 2024, these net operating losses approximated $2,900,000. The company has elected to be taxed as a C Corporation, which influences how these deferred tax assets are handled.
Ledgers' management believes that the deferred tax assets will be realized in future periods before they expire, and therefore, the deferred tax assets have not been reduced by a valuation allowance. This indicates the company's confidence in its future profitability and ability to utilize these tax benefits. A prospective franchisee should understand how these deferred tax assets impact the company's overall financial health and stability.