What was the total deficit for Precision Door Service as of December 31, 2022?
Precision_Door_Service Franchise · 2025 FDDAnswer from 2025 FDD Document
| As of December 31, | 2023 | 2022 |
|---|---|---|
| Liabilities and Stockholder's Equity | ||
| Common stock-par value $0.01 per share; 100 shares | ||
| authorized, issued and outstanding | ||
| Additional paid-in capital | 2,100,435 | 2,420,959 |
| Accumulated deficit | (489,405) | (50,587) |
| Accumulated other comprehensive loss | (42,956) | (51,483) |
| Total stockholder's equity | 1,568,074 | 2,318,889 |
Source: Item 21 — Financial Statements (FDD page 91)
What This Means (2025 FDD)
According to Precision Door Service's 2025 Franchise Disclosure Document, as of December 31, 2022, the company had an accumulated deficit of $50,587. This figure represents the cumulative losses that Precision Door Service has incurred over its operational history up to that point, which have not been offset by accumulated profits. The accumulated deficit is a key indicator of the company's overall financial health and its past performance in generating profits.
For a prospective franchisee, this information is crucial as it provides insight into the financial stability and historical profitability of Precision Door Service. While an accumulated deficit does not necessarily indicate ongoing financial instability, it does suggest that the company has faced challenges in achieving consistent profitability in the past. It is important to consider this figure in conjunction with other financial metrics, such as revenue growth, operating expenses, and overall market conditions, to gain a comprehensive understanding of the company's financial position.
It is also worth noting that the FDD includes financial statements that provide a more detailed breakdown of Precision Door Service's revenues, expenses, assets, and liabilities. Reviewing these statements can offer further insights into the factors contributing to the accumulated deficit and the company's strategies for improving its financial performance. Additionally, prospective franchisees may want to inquire about the company's plans for addressing the accumulated deficit and its projections for future profitability.
In summary, the accumulated deficit of $50,587 as of December 31, 2022, is an important piece of financial information for potential Precision Door Service franchisees to consider. It highlights the company's past financial performance and underscores the need for a thorough review of the financial statements and related disclosures in the FDD.