According to Ledgers' 2025 Franchise Disclosure Document, the net deferred tax asset as of December 31, 2024, was $715,000. The FDD also provides figures for previous years, showing that the net deferred tax asset was $611,000 as of December 31, 2023, and $513,000 as of December 31, 2022. These assets are categorized into federal and state portions. The gross deferred tax assets for the federal portion were $588,000 in 2024, $502,000 in 2023, and $422,000 in 2022. The gross deferred tax assets for the state portion were $127,000 in 2024, $109,000 in 2023, and $91,000 in 2022.

Deferred tax assets arise from temporary differences between financial statement and tax bases of assets and liabilities. These differences are calculated using enacted tax rates expected to be in effect when the differences affect taxable income. A valuation allowance is established if it is more likely than not that the deferred tax assets will not be realized.

For a prospective Ledgers franchisee, understanding the deferred tax assets can provide insight into the company's financial strategies and potential tax benefits that could be realized in the future. It is important to note that the realization of these assets depends on future pretax earnings and the reversal of temporary differences. Franchisees should consult with financial advisors to fully understand the implications of these deferred tax assets and how they might affect their investment.