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, 2022

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, 2020	$	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
Bad debt expense (recovery) recognized during the year		(705	)		(429	)		422			(712	)
Write-off of uncollectible amounts		(623	)		—			(1,842	)		(2,465	)
Balance at December 31, 2022	$	865		$	—		$	719		$	1,584

Summary of Accrued Expenses

Accrued expenses consisted of the following:


	December 31,
	2022		2021
Accrued compensation	$	4,611	$	4,248
Contingent consideration from acquisitions, current portion		2,203		3,678
Sales tax accruals		3,186		6,003
Legal accruals		464		2,932
Accrued deemed dividend		—		3,250
Other accruals		1,831		934
Total accrued expenses	$	12,295	$	21,045