What was the gross deferred tax assets - federal for Ledgers in 2023?
Ledgers Franchise · 2025 FDDAnswer from 2025 FDD Document
NOTE 5 - CURRENT EXPECTED CREDIT LOSSES
Changes in the allowance for credit losses during the year are as follows:
| Balance, January 1, 2023 | $ | - |
|---|---|---|
| Adoption of Topic 326 | 42 | 2,286 |
| Allowance for credit losses | (26 | 5,439) |
| Balance, December 31, 2023 | 15 | ,847 |
| Write-offs | (15 | 5,847) |
| Balance, December 31, 2024 | $ | - |
LOYALTY BUSINESS SERVICES, LLC (FORMERLY FIDE HOLDING, LLC) Notes to Financial Statement
NOTE 6 - DEFERRED TAXES
Provision for income tax benefit is comprised of the following as of December 31:
| | 2024 | 2023 |
Source: Item 22 — CONTRACTS (FDD page 46)
What This Means (2025 FDD)
According to Ledgers' 2025 Franchise Disclosure Document, the gross deferred tax assets - federal were $502,000 in 2023.
Deferred tax assets arise from temporary differences between the financial statement and tax bases of assets and liabilities. These are calculated using enacted tax rates expected to be in effect when the differences affect taxable income. A valuation allowance is established if it's more likely than not that these assets won't be realized.
For Ledgers, these deferred tax assets primarily relate to net operating loss carryforwards. As of December 31, 2024, these net operating losses approximated $2,900,000. Ledgers' management believes that all deferred tax assets will be realized in future periods before they expire, so no valuation allowance has been applied.