What cash reserve does Ledgers aim to maintain to support the company?
Ledgers Franchise · 2025 FDDAnswer from 2025 FDD Document
CES, LLC (FORMERLY FIDE HOLDING, LLC) Notes to Financial Statement
NOTE 9 - PRIOR PERIOD ADJUSTMENT (Continued)
The effect of these restatement is to decrease members' equity as of January 1 as follows:
| Previously | As | |
|---|---|---|
| 2023 Restatement | Reported | Restated |
| Members' equity - January 1, 2024 | $1,374,619 | $1,155,501 |
| Notes Receivable | 792,878 | 40,760 |
| Deferred Revenue | 680,989 | 147,989 |
| Bad Debt Expense | 75,206 | 294,324 |
| Net loss | (287,482) | (506,600) |
NOTE 10 - GOING CONCERN CONSIDERATIONS
As of December 31, 2024, the Company had negative working capital of $468,670. For the year ended December 31, 2024, the Company had operating losses of $490,281 and negative operating cash flows of $471,328. Ma
Source: Item 22 — CONTRACTS (FDD page 46)
What This Means (2025 FDD)
According to Ledgers' 2025 Franchise Disclosure Document, as of December 31, 2024, the company had a negative working capital of $468,670, operating losses of $490,281, and negative operating cash flows of $471,328. To address these financial challenges, Ledgers' management has implemented strategic measures, including reducing personnel costs.
As part of these measures, Ledgers aims to maintain a cash reserve of $250,000. This reserve is intended to support the company until new franchisee agreements become effective in May 2025. Additionally, Ledgers has entered into a new strategic relationship with Bookkeeping Express, which is expected to generate new franchisee referrals.
Based on these strategic measures, the planned cash reserves, and forecasted results for 2025, Ledgers anticipates meeting its liquidity needs within one year from the date the financial statements were available to be issued. This indicates that Ledgers is actively working to stabilize its financial position and ensure its ability to continue operations.