What were the total assets for Ledgers in 2022?
Ledgers Franchise · 2025 FDDAnswer from 2025 FDD Document
doubt about Loyalty Business Services, LLC's ability to continue as a going concern for a reasonable period of time.
We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control related matters that we identified during the audit.
Bernard Robinson & Company, I.S.P.
Raleigh, North Carolina April 28, 2025
${\bf LOYALTY; BUSINESS; SERVICES,; LLC; (FORMERLY; FIDE; HOLDING,; LLC)}$
Balance Sheets
December 31, 2024, 2023 and 2022
| 2 | Assets | ||||||
|---|---|---|---|---|---|---|---|
| 2024 | 2023 | 2022 | |||||
| Current Assets: | S | ||||||
| Cash and cash equivalents | $ 424,085 | $ 181,077 | $ 264,411 | ||||
| Royalty receivables | 3,190 | 3,302 | - | ||||
| Notes receivable, current | 40,760 | 229,901 | |||||
| Total Current Assets | 427,275 | 225,139 | 494,312 | ||||
| Non-Current Assets: | |||||||
| Notes receivable, less current portion | = | 634,000 | |||||
| Due from related parties | 630,180 | 1,229,516 | 1,320,815 | ||||
| Deferred tax asset | 715,000 | 611,000 | 513,000 | ||||
| Total Non-Current Assets | 1,345,180 | 1,840,516 | 2,467,815 | ||||
| Total Assets | $ 1,772,455 | $ 2,065,655 | $ 2,962,127 | ||||
| Liabilities and Members' Equity | |||||||
| Current Liabilities: | |||||||
| Accounts payable | $ 15,010 | $ 15,010 | $ 125,974 | ||||
| Accrued expenses | 4,755 | 9,975 | 5,152 | ||||
| Due to related parties | 852,180 | 737,180 | 305,000 | ||||
| Deferred revenue - current | 24,000 | 94,000 |
Source: Item 22 — CONTRACTS (FDD page 46)
What This Means (2025 FDD)
According to Ledgers's 2025 Franchise Disclosure Document, the company's total assets in 2022 were $2,962,127. This figure represents the sum of Ledgers's current and non-current assets at the end of that fiscal year. Current assets include cash and cash equivalents, royalty receivables, and notes receivable, while non-current assets include notes receivable (less current portion), amounts due from related parties, and deferred tax assets.
Understanding the composition of these assets is important for prospective franchisees. For example, a significant portion of Ledgers's assets in 2022 were due from related parties ($1,320,815), which could indicate financial relationships that franchisees should investigate further to assess any potential risks or dependencies. Additionally, the deferred tax asset ($513,000) reflects future tax benefits, which are subject to realization and could be impacted by changes in tax laws or the company's future profitability.
It is also worth noting the changes in asset values over the three-year period presented in the FDD. Ledgers's total assets decreased from $2,962,127 in 2022 to $2,065,655 in 2023 and further to $1,772,455 in 2024. Potential franchisees should inquire about the reasons for these fluctuations and how they might affect the company's ability to support its franchisees. Analyzing these trends in conjunction with liabilities and equity can provide a more comprehensive view of Ledgers's financial health.
In summary, the total assets figure provides a snapshot of Ledgers's financial position at a specific point in time. However, prospective franchisees should conduct thorough due diligence, including reviewing the complete financial statements and seeking professional advice, to fully understand the implications of these figures and trends for their investment.