For Ledgers, what was the previously reported amount for Notes Receivable that was later restated?

According to Ledgers' 2025 Franchise Disclosure Document, the previously reported amount for Notes Receivable was $792,878, which was later restated to $40,760. This restatement occurred during the year ended December 31, 2023.

The restatement was due to the company's financial statements including balances for a note receivable and deferred revenue for a franchise agreement that was terminated in 2023 but not properly written off at that time. This error was identified during the year ended December 31, 2024, leading to the restatement of the financial statements.

In practical terms, this restatement means that Ledgers had to correct its financial records to accurately reflect the termination of a franchise agreement. This correction involved removing the improperly recorded note receivable and deferred revenue balances, and recording a bad debt expense of $219,118 for the year ended December 31, 2023. This type of restatement can impact investor confidence and may require additional scrutiny of the company's financial reporting practices.

Prospective franchisees should be aware of this prior period adjustment and understand the reasons behind it. It would be prudent to inquire about the company's current financial controls and procedures to ensure that such errors are minimized in the future. Additionally, reviewing the audited financial statements and discussing the restatement with a financial advisor can provide a clearer picture of the company's financial health and stability.