What was the book value of Management Recruiters' land as of December 31, 2022?
Management_Recruiters Franchise · 2024 FDDAnswer from 2024 FDD Document
We have served as the Company's auditor since 2017.
/s/ Plante & Moran, PLLC
Denver, Colorado March 21, 2023
HireQuest, Inc. Consolidated Balance Sheets
| (in thousands except par value data) | December 31, 2022 | December 31, 2021 | |
|---|---|---|---|
| ASSETS | |||
| Current assets | |||
| Cash | $ | 3,049 | $ 1,256 |
| Accounts receivable, net of allowance for doubtful accounts | 45,728 | 38,239 | |
| Notes receivable | 817 | 1,481 | |
| Prepaid expenses, deposits, and other assets | 1,833 | 659 | |
| Prepaid workers' compensation | 503 | 369 | |
| Total current assets | 51,930 | 42,004 | |
| Property and equipment, net | 4,353 | 4,454 | |
| Workers' compensation claim payment deposit | 1,231 | 948 | |
| Franchise agreements, net | 23,144 | 18,848 | |
| Other intangible assets, net | 10,690 | 6,228 | |
| Goodwill | 5,870 | - | |
| Other assets | 325 | 334 | |
| Notes receivable, net of current portion and reserve | 2,675 | 2,686 | |
| Intangible assets held for sale - discontinued operations | 3,065 | 1,850 | |
| Total assets | $ | 103,283 | $ 77,352 |
| LIABILITIES AND STOCKHOLDERS' EQUITY | |||
| Current liabilities | |||
| Accounts payable | $ | 448 | $ 1,126 |
| Line of credit | 12,543 | 171 | |
| Term loans payable | 704 | 210 | |
| Other current liabilities | 3,408 | 2,658 | |
| Accrued wages, benefits and payroll taxes | 5,602 | 3,687 | |
| Due to franchisees | 9,846 | 7,496 | |
| Risk management incentive program liability | 877 | 1,632 | |
| Workers' compensation claims liability | 3,352 | 4,491 | |
| Total current liabilities | 36,780 | 21,471 | |
| Term loans payable, net of current portion | 3,291 | 2,856 | |
| Workers' compensation claims liability, net of current portion | 2,573 | 3,759 | |
| Deferred tax liability | 60 | 473 | |
| Franchisee deposits | 2,325 | 2,058 | |
| Total liabilities | 45,029 | 30,617 | |
| Commitments and contingencies (Note 11) | |||
| Stockholders' equity | |||
| Preferred stock - $0.001 par value, 1,000 shares authorized; none issued | - | - | |
| Common stock - $0.001 par value, 30,000 shares authorized; 13,918 and 13,745 shares issued, respectively | 14 | 14 | |
| Additional paid-in capital | 32,844 | 30,472 | |
| Treasury st |
Source: Item 21 — FINANCIAL STATEMENTS (FDD pages 65–66)
What This Means (2024 FDD)
Based on the 2024 Franchise Disclosure Document, Management Recruiters' balance sheets include various asset categories, such as cash, accounts receivable, notes receivable, prepaid expenses, deposits, property and equipment, franchise agreements, and goodwill. The balance sheet provides a snapshot of the company's assets, liabilities, and equity at a specific point in time.
However, the term "land" does not appear as a specific line item within the provided assets table. Instead, there is a line for "Property and equipment, net". This figure represents the net book value of all the company's property, plant, and equipment (PP&E) after accumulated depreciation. Land is typically included within the PP&E category on a balance sheet.
As of December 31, 2022, the net book value of Management Recruiters' property and equipment was $4,353,000. This number includes land, buildings, equipment, and any other fixed assets the company owns, less any accumulated depreciation. A prospective franchisee should be aware that this figure does not isolate the value of land alone, but rather represents the combined net value of all property and equipment. To determine the specific value of land, a franchisee should ask Management Recruiters for a more detailed breakdown of their fixed assets.