For The Standardx, where are transaction costs for potential transactions recognized in the financial statements during the three months ended March 31, 2024?

According to The Standardx's 2025 Franchise Disclosure Document, transaction costs for potential transactions are recognized in general and administrative expenses. Specifically, these costs primarily relate to professional fees incurred for acquisitions and dispositions. This accounting treatment applies to the three months ended March 31, 2024.

For a prospective franchisee, this means that when The Standardx evaluates potential acquisitions or dispositions, the professional fees associated with these activities (such as legal and consulting fees) are categorized as general and administrative expenses in their financial statements. This provides transparency into the costs associated with The Standardx's strategic activities.

It's important to note that this treatment differs from how The Standardx accounts for transaction costs related to completed transactions, which are recognized in other income (loss), net. Additionally, transaction costs incurred during the period of a completed disposition are recognized in gains on sales of real estate and other. This distinction in accounting treatment highlights the different stages of transaction activities and their impact on The Standardx's financial reporting.