What was the benefit from income taxes for Ledgers in 2024?
Ledgers Franchise · 2025 FDDAnswer from 2025 FDD Document
| 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: | ||||||
| Benefit from income taxes | (104,000) | (98,000) | (153,000) |
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 2024 was $(104,000). This figure reflects an adjustment to reconcile net loss to net cash used in operating activities.
This benefit from income taxes suggests that Ledgers experienced a reduction in its income tax expense, effectively increasing its cash flow from operating activities. For a prospective franchisee, this indicates the company's ability to manage its tax obligations and potentially improve its financial performance.
It's important to note that this benefit is part of a broader financial picture, and prospective franchisees should consider it in conjunction with other financial data, such as net loss and cash flow, to gain a comprehensive understanding of Ledgers' financial health. Additionally, the FDD states that the deferred tax asset relates to net operating loss carryforwards of approximately $2,900,000 as of December 31, 2024.