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What was the total amount of Zoomin Groomin's deferred tax asset in 2023?

Zoomin_Groomin Franchise · 2025 FDD

Answer from 2025 FDD Document

r, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about Zoomin Groomin USA LLC's ability to continue as a going concern for a reasonable period of time.

We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control related matters the auditor identified during the audit.

DASH Business Solutions, LLC

DASH Business Solutions, LLC Royal Palm Beach, FL April 4, 2025

Balance Sheets December 31

2024 2023 2022
ASSETS
Current Assets
Cash and Cash Equivalents $ 71,234 $ 111,382 $ 4,894
Inventory - 7,308 84,180
Accounts Receivable 386,516 212,876 161,766
Prepaid Expenses 1,530 1,538 28
Income Tax Asset 712,478 385,004 -
Due From Affiliates 4,819,061 2,429,123 176,000
Total Current Assets 5,990,819 3,147,231 426,868
Other Assets

Source: Item 9 — 01. Financial Statements and Exhibits. (FDD pages 68–156)

What This Means (2025 FDD)

According to Zoomin Groomin's 2025 Franchise Disclosure Document, the company's deferred tax asset in 2023 was $385,004. This figure is part of the company's balance sheet, reflecting assets, liabilities, and equity for the years 2022, 2023, and 2024. The deferred tax asset is listed under current liabilities.

A deferred tax asset typically arises when a company has overpaid taxes or has tax deductions or credits that can be used to reduce future tax obligations. For a prospective Zoomin Groomin franchisee, this indicates that the company has certain tax benefits that could positively impact its future financial performance. Understanding the nature and extent of these deferred tax assets would require further investigation, potentially through discussions with the franchisor or a financial advisor.

It's important to note that while a deferred tax asset can be a positive indicator, its actual value depends on the company's ability to generate future taxable income to utilize these assets. Therefore, franchisees should consider this figure as part of a broader financial analysis, taking into account Zoomin Groomin's overall financial health and future prospects. This information is based on financial statements audited by DASH Business Solutions, LLC.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.