What was the cash balance at the beginning of 2022 for Spray Net?
Spray_Net Franchise · 2025 FDDAnswer from 2025 FDD Document
g revenues | 210,000 | 60,000 | 320,000 | | Royalties | 446,767 | 489,788 | 260,661 | | Local and digital marketing revenues | 1,490,118 | 1,144,512 | 551,057 | | Other | 200,603 | 267,841 | 138,115 | | Total Revenues | 2,863,931 | 2,596,651 | 1,567,875 | | Operating Expenses | 3,701,092 | 1,663,428 | 2,296,886 | | Net Income (Loss) Before Taxes | (837,161) | 933,223 | (729,011) | | Income Tax Benefit (Expense) | 36,616 | (93,518) | 38,725 | | Net Income (Loss) | (800,545) | 839,705 | (690,286) | | Stockholder's equity (Deficit) - Beginning | 22,784 | (816,921) | (167,748) | | Prior Period Adjustment | | | 41,113 | | Stockholders' equity (Deficit) - Ending | $ (777,761) | $ 22,784 | $ (816,921) |
| 2024 | 2023 | 2022 | |
|---|---|---|---|
| Cash Flows from Operating Activities: | |||
| Net income (loss) | $ (800,545) | $ 839,705 | $ (729,011) |
| Amortization expense | _ | 7,411 | $ 7,411 |
| Adjustments to reconcile net (loss) to cash | |||
| provided by operating activities: | |||
| Changes in assets and liabilities | |||
| Accounts receivable | 227,980 | 135,177 | (286,853) |
| Prepaid expenses | 10,000 | 92,481 | (30,222) |
| Contract Assets | (74,854) | (311,500) | (1,086,333) |
| Due from related parties | 52,045 | (121,956) | _ |
| Deferred tax benefit | (65,349) | 93,518 | (13,722) |
| Accounts payable and accrued expenses | 4,1 |
Source: Item 23 — RECEIPTS (FDD pages 75–219)
What This Means (2025 FDD)
According to Spray Net's 2025 Franchise Disclosure Document, the cash balance at the beginning of 2022 was $305,228. This figure represents the amount of cash Spray Net had on hand at the start of the fiscal year 2022, which is an important indicator of the company's financial health and liquidity at that time.
For a prospective franchisee, understanding the franchisor's cash position is crucial. A healthy cash balance suggests that Spray Net is financially stable and capable of supporting its franchisees. It can also indicate the company's ability to invest in new technologies, marketing initiatives, or other resources that benefit the franchise system.
However, it's important to consider this figure in the context of Spray Net's overall financial performance. While a strong beginning cash balance is positive, it doesn't guarantee continued financial success. Franchisees should also review Spray Net's revenues, expenses, and other financial metrics to get a complete picture of the company's financial health. Reviewing multiple years can show trends and sustainability.
It is also important to note that this cash balance is as of the beginning of the year. The company's cash flow statement shows how the cash balance changed throughout the year, which can provide additional insights into the company's financial management and performance.