What was the stock-based compensation for Management Recruiters for the twelve months ended December 31, 2021?
Management_Recruiters Franchise · 2024 FDDAnswer from 2024 FDD Document
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HireQuest, Inc. Consolidated Statement of Cash Flow
| Twelve months ended | |||||||
|---|---|---|---|---|---|---|---|
| December 31, 2021 | December 31, 2020 | ||||||
| Cash flows from operating activities | |||||||
| Net income | $ | 11,849,934 | $ 5,359,414 | ||||
| Adjustments to reconcile net income to net cash used in operations: | |||||||
| Depreciation and amortization | 1,563,088 | 129,182 | |||||
| Non-cash interest | 47,725 | - | |||||
| Allowance for losses on notes receivable | 307,440 | 1,598,673 | |||||
| Stock based compensation | 1,627,829 | 1,226,890 | |||||
| Deferred taxes | (2,366,549) | (1,767,825) | |||||
| Loss on disposition of intangible assets | 1,222,546 | - | |||||
| Bargain purchase gain | (5,621,484) | - | |||||
| Changes in operating assets and liabilities: | |||||||
| Accounts receivable | (3,476,972) | 6,856,780 | |||||
| Prepaid expenses, deposits, and other assets | (119,283) | (155,531) | |||||
| Prepaid workers' compensation | 1,065,368 | (611,645) | |||||
| Accounts payable | 348,799 | 203,645 | |||||
| Risk management incentive program liability | 773,157 | (953,435) | |||||
| Other current liabilities | (206,236) | (571,082) | |||||
| Accrued benefits and payroll taxes | 844,000 | (370,473) | |||||
| Due to franchisees | 3,872,240 | (381,819) | |||||
| Workers' compensation claim payment deposit | 6,875,802 | (623,452) | |||||
| Workers' compensation claims liability | (1,225,846) | 739,566 | |||||
| Net cash provided by operating activities - continuing operations | 17,381,558 | 10,678,888 | |||||
| Net cash used in operating activities - discontinued operations | - | 201,440 | |||||
| N |
Source: Item 21 — FINANCIAL STATEMENTS (FDD pages 65–66)
What This Means (2024 FDD)
According to Management Recruiters' 2024 Franchise Disclosure Document, the stock-based compensation for the twelve months ended December 31, 2021, was $1,627,829. This figure represents the expense recognized by Management Recruiters for stock options and other equity-based compensation provided to employees and directors. Stock-based compensation is a non-cash expense, meaning it does not involve an actual outflow of cash, but it does impact the company's financial statements.
For a prospective Management Recruiters franchisee, understanding stock-based compensation can provide insights into the company's overall financial health and its approach to employee compensation. While franchisees typically do not participate directly in these stock-based compensation plans, the financial stability and motivated workforce fostered by such programs can indirectly benefit their franchise operations. A financially sound franchisor is better positioned to invest in system-wide improvements, marketing, and franchisee support.
It's important to note that this figure is just one component of Management Recruiters' overall financial performance. Franchisees should review the complete financial statements and consider other factors, such as revenue, expenses, and cash flow, to gain a comprehensive understanding of the company's financial condition. Additionally, prospective franchisees may want to inquire about the specific terms and conditions of Management Recruiters' stock-based compensation plans to fully understand their potential impact.