What was the benefit from income taxes for Ledgers in 2023?
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 |
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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 | $ |
Source: Item 22 — CONTRACTS (FDD page 46)
What This Means (2025 FDD)
According to Ledgers' 2025 Franchise Disclosure Document, the benefit from income taxes in 2023 was $(98,000). This figure reflects a reduction in income tax expense, effectively increasing the company's net income or reducing its net loss for that year.
This benefit from income taxes is part of the adjustments made to reconcile net loss to net cash used in operating activities. It indicates that Ledgers was able to reduce its tax obligations, which positively impacted its cash flow from operations.
For a prospective franchisee, understanding these tax benefits is crucial as it reflects the financial management and profitability of Ledgers. It's important to note that these benefits can fluctuate yearly based on various factors, including changes in tax laws, business performance, and strategic tax planning. Therefore, it is advisable for potential franchisees to review these figures in the context of overall financial performance and consult with a financial advisor to understand the implications for their investment.