On the Company entered into an Asset and Franchise Purchase Agreement under which (i) the Company repurchased from the seller operating franchise in West Covina, California and (ii) the parties agreed to terminate a franchise agreement for an operating franchise. The Company intends to operate the remaining franchise as a company-managed clinic. The total purchase price for the transaction was less of deferred revenue resulting in total purchase consideration of

  

 

The following summarizes the aggregate estimated fair values of the assets acquired and liabilities assumed during as of the acquisition date:

 

Property and equipment		$	9,166
Intangible assets			62,000
Total assets acquired			71,166
Deferred revenue			(25,715	)
Bargain purchase gain			(19,298	)
Net purchase price		$	26,153

Intangible assets in the table above consist of reacquired franchise rights of amortized over an estimated useful life of years and customer relationships of amortized over an estimated useful life of years.

 

The following table summarizes selected unaudited pro forma condensed consolidated statements of operations data for the months ended and as if the acquisition in had been completed on

 

		Pro Forma for the Three Months Ended
			March 31, 2019				March 31, 2018
Revenues, net		$	10,725,000			$	8,753,702
Net income (loss)		$	934,418			$	(97,764	)

 

This selected unaudited pro forma consolidated financial data is included only for the purpose of illustration and does necessarily indicate what the operating results would have been if the acquisition had been completed on that date. Moreover, this information is indicative of what the Company’s future operating results will be. The information for and prior to the acquisition is included based on prior accounting records maintained by the acquired company. In some cases, accounting policies differed materially from accounting policies adopted by the Company following the acquisition. For this information includes actual data recorded in the Company’s financial statements for the period subsequent to the date of the acquisition. The Company’s condensed consolidated statement of operations for the months ended includes net revenue and net loss of approximately and respectively, attributable to the acquisition.

 

The pro forma amounts included in the table above reflect the application of accounting policies and adjustment of the results of the clinics to reflect the additional depreciation and amortization that would have been charged assuming the fair value adjustments to property and equipment and intangible assets had been applied from