Until when is the Ledgers cash reserve intended to support the company?
Ledgers Franchise · 2025 FDDAnswer from 2025 FDD Document
CES, LLC (FORMERLY FIDE HOLDING, LLC) Notes to Financial Statement
NOTE 9 - PRIOR PERIOD ADJUSTMENT (Continued)
The effect of these restatement is to decrease members' equity as of January 1 as follows:
| Previously | As | |
|---|---|---|
| 2023 Restatement | Reported | Restated |
| Members' equity - January 1, 2024 | $1,374,619 | $1,155,501 |
| Notes Receivable | 792,878 | 40,760 |
| Deferred Revenue | 680,989 | 147,989 |
| Bad Debt Expense | 75,206 | 294,324 |
| Net loss | (287,482) | (506,600) |
NOTE 10 - GOING CONCERN CONSIDERATIONS
As of December 31, 2024, the Company had negative working capital of $468,670. For the year ended December 31, 2024, the Company had operating losses of $490,281 and negative operating cash flows of $471,328. Ma
Source: Item 22 — CONTRACTS (FDD page 46)
What This Means (2025 FDD)
According to Ledgers' 2025 Franchise Disclosure Document, as of December 31, 2024, Ledgers had a negative working capital of $468,670. The company also experienced operating losses of $490,281 and negative operating cash flows of $471,328 for the year ending December 31, 2024.
To address these financial challenges, Ledgers' management implemented strategic measures, including reducing personnel costs and maintaining a cash reserve of $250,000. This cash reserve is specifically intended to support the company until new franchisee agreements become effective in May 2025.
In addition to these measures, Ledgers has established a new strategic relationship with Bookkeeping Express in 2025, which is anticipated to generate new franchisee referrals. Based on these strategic measures, the cash reserves, and forecasted results for 2025, Ledgers expects to meet its liquidity needs for one year from the date the financial statements were available to be issued. This indicates that Ledgers is actively working to stabilize its financial position and ensure its ability to continue operations.