What was the total equity for Ledgers on December 31, 2023 (Restated)?
Ledgers Franchise · 2025 FDDAnswer from 2025 FDD Document
) | | (82,735) | | (6,284) | | Other income | | = | | (115,395) | | 554 | | Other expense | | 485 | | 4,014 | | 3,246 | | Total other (income) expense | (2 | 24,290) | | (194,116) | _ | (2,484) | | Loss before income taxes | (4 | 65,991) | | (604,600) | | (600,527) | | Income tax benefit | (1 | 04,000) | | (98,000) | , | (153,000) | | Net loss | $ (30 | 61,991) | $ | (506,600) | $ | (447,527) |
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Statements of Changes in Members' Equity
For the Years Ended December 31, 2024, 2023, and 2022
| | Capital Contributions | Accumulated Deficit | Total | |----------------------
Source: Item 22 — CONTRACTS (FDD page 46)
What This Means (2025 FDD)
According to Ledgers' 2025 Franchise Disclosure Document, the total equity on December 31, 2023 (Restated) was $1,155,501. This figure represents the net worth of Ledgers at the close of 2023 after adjustments. It is calculated by considering the capital contributions and accumulated deficit.
Specifically, Ledgers had capital contributions of $3,200,000 and an accumulated deficit of $(2,044,499). The accumulated deficit reflects the cumulative losses Ledgers has incurred over time, which reduces the overall equity. The restated balance takes into account prior period adjustments, ensuring that the financial statements accurately reflect the company's financial position.
For a prospective franchisee, understanding the equity and its restatement is crucial. It provides insight into the financial stability and historical performance of Ledgers. The restatement indicates that Ledgers has corrected previous accounting errors, which is important for transparency. Potential franchisees should further investigate the reasons for the restatement and how it impacts the overall financial health of the company.