Xponential Fitness, Inc. Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

Summary of Significant Accounting Policies (Tables)

Summary of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2021

Summary of Property and Equipment Estimated Useful Lives

Depreciation is recognized on a straight-line method, based on the following estimated useful lives:


Furniture and equipment	5 years
Computers and software	3-5 years
Vehicles	5 years
Leasehold improvements	Lesser of useful life or lease term

Reconciliation of Activity Related to Accounts Receivable, Other Receivables and Notes Receivable Allowance for Credit Losses

The following table provides a reconciliation of the activity related to the Company’s accounts receivable, other receivables and notes receivable allowance for credit losses:


	Accounts receivable			Other receivables		Notes receivable			Total
Balance at January 1, 2019	$	137		$	—	$	676		$	813
Bad debt expense recognized during the year		228			429		1,299			1,956
Write-off of uncollectible amounts		(140	)		—		—			(140	)
Balance at December 31, 2019		225			429		1,975			2,629
Bad debt expense recognized during the year		2,685			—		81			2,766
Write-off of uncollectible amounts		(505	)		—		(147	)		(652	)
Balance at December 31, 2020		2,405			429		1,909			4,743
Bad debt expense recognized during the year		102			—		308			410
Write-off of uncollectible amounts		(314	)		—		(78	)		(392	)
Balance at December 31, 2021	$	2,193		$	429	$	2,139		$	4,761

Summary of Accrued Expenses

Accrued expenses consisted of the following:


	December 31,
	2021		2020
Accrued compensation	$	4,248	$	2,351
Contingent consideration from acquisitions, current portion		3,678		3,229
Sales tax accruals		6,003		4,931
Legal accruals		2,932		—
Accrued offering costs		—		2,151
Accrued deemed dividend		3,250		—
Other accruals		934		1,102
Total accrued expenses	$	21,045	$	13,764