What was The Standardx's net loss from foreign currency exchange in 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 net loss from foreign currency exchange for the year ended December 31, 2023, was $10,000. This figure is part of the broader 'Other income (loss), net' category, which totaled $124,000 for the same period.
For a prospective franchisee, this indicates that The Standardx's financial performance is subject to fluctuations in foreign currency exchange rates. While a loss was recorded in 2023, it's important to note that these fluctuations can also result in gains, as seen in 2024 when The Standardx reported a net gain of $7,000 from foreign currency exchange.
Understanding the impact of foreign currency exchange is crucial, especially if The Standardx has international operations or transactions. Franchisees should inquire about The Standardx's strategies for managing foreign currency risk and how these fluctuations might affect their own financial performance. Reviewing historical data and understanding the factors that influence these gains and losses can provide valuable insights for potential investors.