What was the allowance at March 31 for The Standardx in 2025?
The_Standardx Franchise · 2025 FDDAnswer from 2025 FDD Document
| 2025 | 2024 | |
|---|---|---|
| Allowance at January 1 | $ 9 | $ 13 |
| Provisions, net (1) | — | — |
| Allowance at March 31 | $ 9 | $ 13 |
Source: Item 1 — Financial Statements. (FDD pages 156–187)
What This Means (2025 FDD)
According to The Standardx's 2025 Franchise Disclosure Document, the allowance at March 31, 2025, was $9. This figure represents the allowance for credit losses related to HTM (held-to-maturity) debt securities. The document also indicates that the allowance at January 1, 2025, was also $9, and at December 31, 2024, the allowance was $13.
Additionally, the FDD provides information on the allowance for credit losses related to financing receivables. The allowance for credit losses for total long-term financing receivables was ($42) at March 31, 2025, compared to ($36) at December 31, 2024. This indicates an increase in the allowance for credit losses for financing receivables during that period.
Furthermore, the FDD includes a table summarizing the activity in receivables allowance for credit losses. According to this table, the allowance at January 1 was $62, provisions (reversals), net was 4, write-offs were (2), and the allowance at March 31 was $64. These figures provide a more detailed breakdown of the changes in the receivables allowance for credit losses during the specified period. A prospective franchisee should carefully review these figures to understand The Standardx's approach to managing credit losses and its potential impact on the franchisee's financial performance.