What was the gross deferred tax assets - state for Ledgers as of December 31, 2022?
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 company's gross deferred tax assets - state was $91,000 as of December 31, 2022. Deferred tax assets arise from temporary differences between the financial statement and tax bases of assets and liabilities. These assets are expected to affect taxable income in the future.
Deferred tax assets can be impacted by changes in state tax laws and the overall financial performance of Ledgers. If Ledgers' financial performance declines, it could impact the realization of these deferred tax assets.
Prospective franchisees should consult with a financial advisor to understand the implications of deferred tax assets on Ledgers' financial health. Understanding these assets can provide a more complete picture of the company's financial position and potential future tax benefits.