What was the net cash used by operating activities for Pearce Bespoke in 2024?

According to Pearce Bespoke's 2025 Franchise Disclosure Document, the net cash used by operating activities in 2024 was $(369,155). This indicates that Pearce Bespoke spent $369,155 more than it generated from its core business operations during the year. This figure is derived from calculating the net loss, adjustments to reconcile net loss, and changes in assets and liabilities.

Specifically, the net loss for 2024 was $(22,237). Adjustments included amortization expense of $1,010, recognition of deferred commissions of $145,502, and recognition of non-refundable deferred franchise fees of $(872,417). Changes in assets and liabilities included accounts receivable of $(83,157), deferred commissions of $(156,000), accounts payable and accrued expenses of $32,700, franchisee payable of $151,944, and non-refundable deferred franchise fees of $433,500.

For a prospective franchisee, this information is crucial as it provides insight into the financial health and operational efficiency of Pearce Bespoke. A negative cash flow from operating activities could signal potential challenges in the business model or operational execution. It is important to consider this figure in conjunction with other financial metrics and to understand the reasons behind the negative cash flow. Further investigation into Pearce Bespoke's strategies for improving cash flow from operations would be advisable for any potential franchisee.