What was the net change in right-of-use asset for Pearce Bespoke in 2023?
Pearce_Bespoke Franchise · 2025 FDDAnswer from 2025 FDD Document
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| Contributions | - | | 54,245 | | Members' Equity (Deficiency), Ending | $ (471,984) | $ | 7,880 |
PEARCE BESPOKE FRANCHISING, LLC STATEMENTS OF CASH FLOWS
| Years Ended December 31, | ||||
|---|---|---|---|---|
| 2023 | 2022 | |||
| Operating Activities: | ||||
| Net Loss | $ (479,864) | $ | (46,365) | |
| Adjustments to reconcile net loss to net c |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 39)
What This Means (2025 FDD)
According to Pearce Bespoke's 2025 Franchise Disclosure Document, the net change in the right-of-use asset in 2023 was $150. This figure is part of the adjustments made to reconcile the net loss to the net cash used in operating activities.
The right-of-use asset refers to the asset representing a lessee's right to use an underlying asset for the lease term. The increase suggests that Pearce Bespoke's right-of-use asset grew slightly during the year. This could be due to adjustments in the lease agreement or other factors affecting the valuation of the asset.
For a prospective franchisee, understanding the changes in right-of-use assets can provide insights into Pearce Bespoke's leasing activities and how they impact the company's cash flow. It's important to review these figures in conjunction with other financial statement items to get a comprehensive view of the company's financial health.