Approximately what were the net operating losses for Ledgers as of December 31, 2024?
Ledgers Franchise · 2025 FDDAnswer from 2025 FDD Document
| 022 | |||
|---|---|---|---|
| Deferred tax (benefit): | |||
| Federal | $ (86,000) | $ (80,000) | $ (126,000) |
| State | (18,000) | (18,000) | (27,000) |
| (104,000) | (98,000) | (153,000) | |
| Expense (benefit) from income taxes | $ (104,0 |
Source: Item 22 — CONTRACTS (FDD page 46)
What This Means (2025 FDD)
According to Ledgers' 2025 Franchise Disclosure Document, the company had net operating losses of approximately $2,900,000 as of December 31, 2024. These losses are represented as deferred tax assets on the company's balance sheet.
Ledgers' management believes that these deferred tax assets will be realized in future periods before they expire, and as such, the deferred tax assets have not been reduced by a valuation allowance. This indicates that Ledgers anticipates future taxable income that will offset these losses, allowing them to utilize the tax benefits in the future.
For a prospective franchisee, this information provides insight into the financial health and tax strategy of Ledgers. While net operating losses can be a concern, the fact that Ledgers holds deferred tax assets and expects to realize them suggests a degree of financial planning and optimism about future profitability. It's important for potential franchisees to consider these factors in the context of the overall financial condition of the company and to seek professional advice when evaluating the implications of these losses and deferred tax assets.