What was the amount of guarantee expense for The Standardx for the year ended December 31, 2023?
The_Standardx Franchise · 2025 FDDAnswer from 2025 FDD Document
SARs | 100 | 57,200 | 9,800 | | | | | | | RSUs | 1,500 | 2,400 | 3,200 | | | | | |
21. OTHER INCOME (LOSS), NET
| Year Ended December 31, | |||||||
|---|---|---|---|---|---|---|---|
| 2024 | 2023 | 2022 | |||||
| Interest income | $ | 123 | $ | 74 | $ 44 | ||
| Unrealized gains (losses), net (Note 4) | 53 | 36 | (55) | ||||
| Guarantee amortization income (Note 15) | 49 | 17 | 20 | ||||
| Contingent consideration liability fair value adjustment (Note 15) | 39 | (9) | — | ||||
| Depreciation recovery | 23 | 21 | 15 | ||||
| Foreign currency exchange, net | 7 | (10) | (12) | ||||
| Credit loss reversals, net (Note 4 and Note 6) | 1 | 17 | 16 | ||||
| Impairment of an equity security without a readily determinable fair | (5) | — | — | ||||
| value (Note 4) | |||||||
| Restructuring costs | (5) | (4) | (39) | ||||
| Guarantee expense (Note 15) | (11) | ( |
Source: Item 10 — OTHER ASSETS (FDD pages 132–156)
What This Means (2025 FDD)
According to The Standardx's 2025 Franchise Disclosure Document, the guarantee expense for the year ended December 31, 2023, was $(19). This figure represents the expense The Standardx recognized related to guarantees it provided. It is important to note that this is an expense, indicating a cost to the company.
For a prospective franchisee, understanding guarantee expenses can provide insight into The Standardx's financial obligations and risk management strategies. Guarantee expenses typically arise when a company provides assurance for the performance or financial obligations of another entity. In this case, it suggests that The Standardx has provided guarantees that resulted in a cost of $19 for the year 2023.
It's also useful to compare this figure with other years. In 2024, the guarantee expense was $(11), while in 2022, it was $(13). These fluctuations could be due to various factors, such as changes in the number or terms of guarantees provided, or changes in the performance of the entities being guaranteed. A potential franchisee should investigate the nature of these guarantees to assess any potential risks or liabilities that The Standardx may face.
Overall, while the amount appears relatively small, it's essential for a franchisee to understand the context behind these expenses and how they might impact The Standardx's financial health and stability. Further investigation into Note 15, as referenced in the table, would provide additional details on the nature and terms of these guarantees.