What are the potential risks associated with the 'Account propriate principal tradities' for Sonesta Simply Suites?
Sonesta_Simply_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
899 | $ 255 | $ 87,652 | $ (9,676) | $ 78,231 |
RED LION HOTELS CORPORATION CONSOLIDATED STATEMENTS OF CASH FLOWS
(dollars in thousands)
| Tolking from printing activities: Net income (loss) ( 20, 10) $ 1, 107 $ ( 3, 10) Adjustments to reconcile net loss to cash provided by (used in) operating activities: $ 1, 100 $ 3, 30 Propreciation and amoritation 1,514 3, 60 3, 70 Amoritation of key money and contract costs 1,514 3, 60 7 Amoritation of contract liabilities 1,912 1,912 1,912 Peberferd income taxes 1,912 1,912 1,912 Other for (expense), net 1,912 1,912 1,912 Designion sale of hotel 1,913 4,912 1,912 Account general trabilities 1,913 4,912 1,912 Accounting term assets and liabilities 1,914 4,912 1,912 Accounting term assets and propriate passes and other current assets 1,914 4,912 4,912 Accounting term assets and liabilities 3,134 4,912 4,912 Account propriate principal tradities 1,243 4,52 4,52 Account propriate principal tradities 3,134 4,52 | Decembe | ember 31, | r 31, | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Net income (loss) $ (2,913) $ 1,477 $ (3,186) Adjustments to reconcile net loss to cash provided by (used in) operating activities: 489 1,691 3,506 Depreciation and amortization 489 1,691 3,506 Amortization of key money and contract costs 1,514 396 7 Amortization of contract liabilities 192 1,497 713 Deferred income taxes 1,112 (1,819) 654 Other income (expense), net 2 1 9 486 Other income (expense), net 3,111 (942) (50 Change in current assets and liabilities (3,111) (942) (50 Prepaid expenses and other current assets (706) (414) (541) Other long term assets (19,498) (9,440) (1,007) Accounts receivable, net (3,111) (942) (50 Prepaid expenses and other current assets (706) (414) (541) Other long term assets (19,498) (9,440) (1,007) Accounts payable (2,132) | 2024 | 2023 | (Restated) | 2022 | |||||
| Adjustments to reconcile net loss to eash provided by (used in) operating activities: 489 1,691 3,506 Depreciation and amorization 1,514 396 7 Amortization of Centract liabilities 192 1,497 713 Deferred income taxes - 1 1 Other income (expense), net - - 846 Loss (gain) on sale of hotel 153 (160) - Change in current assets and liabilities (3,111) (942) (50) Accounts receivable, net (3,111) (942) (50) Prepaid expenses and other current assets (706) (414) (541) Other long term assets (19,498) (9,440) (1,007) Accounts program liability 139 - - Accrued compensation, accrued expenses, and other liabilities 893 (2,777) 3,600 Net cash provided by (used in) operating activities (735) (433) (588) Proceeds from sale of hotel - 550 - Capital expenditures (735) (43) | Cash flows from operating activities: | ||||||||
| Depreciation and amortization Asy 1,691 3,506 Amortization of key money and contract costs 1,514 396 77 Amortization of contract liabilities 192 1,497 713 Deferred income taxes - 1 1 Provision (Recovery) of doubtful accounts 1,112 (1,819) 654 Other income (expense), net - - 846 Loss (gain) on sale of hotel 153 (160) - Change in current assets and liabilities Accou |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 79)
What This Means (2025 FDD)
According to Sonesta Simply Suites' 2025 Franchise Disclosure Document, the provided financial statements include a line item called 'Account propriate principal tradities'. However, due to a likely transcription error in the document, the exact meaning of this term is unclear. The table including this term shows adjustments to reconcile net loss to cash provided by (used in) operating activities.
Specifically, the table shows values for 'Account propriate principal tradities' as $1,243 in 2024 and $4,52 in both 2023 and 2022. Without knowing what 'Account propriate principal tradities' represents, it's impossible to assess the specific risks associated with it. However, because it is listed as an adjustment to reconcile net loss to cash flow, it likely relates to non-cash transactions or accounting adjustments that impact the company's cash position.
Prospective Sonesta Simply Suites franchisees should seek clarification from the franchisor regarding the nature of these 'Account propriate principal tradities'. Understanding what these entries represent is crucial for assessing the financial health and cash flow dynamics of the company. It would be prudent to ask for a detailed explanation of the transactions or accounting adjustments that fall under this category and how they might impact the franchisee's operations and financial performance.