The Joint Corp. Quarterly report pursuant to Section 13 or 15(d)

Note 1 - Nature of Operations and Summary of Significant Accounting Policies (Tables)

3 Months Ended

Mar. 31, 2019

	Three Months Ended March 31, 2018			Adjustments Due To VIE Consolidation		Three Months Ended March 31, 2018
	(as reported)					(as adjusted)
Revenues:
Revenues from company-owned or managed clinics	$	3,256,624			1,549,049	$	4,805,673
Total revenues		7,097,915			1,549,049		8,646,964
General and administrative expenses		5,074,927			1,193,759		6,268,686
Total selling, general and administrative expenses		6,564,648			1,193,759		7,758,407
Loss from operations		(439,065	)		355,290		(83,775	)

Other (expense) income, net		(11,194	)		–		(11,194	)
Loss before income tax benefit (expense)		(450,259	)		355,290		(94,969	)

Net loss and comprehensive loss	$	(386,904	)		355,290	$	(31,614	)

Loss per share:
Basic and diluted loss per share	$	(0.03	)		0.03	$	(0.00	)

Basic and diluted weighted average shares		13,587,837			–		13,587,837

	Year Ended December 31, 2018		Adjustments Due To VIE Consolidation			Year Ended December 31, 2018
	(as reported)					(as adjusted)
Revenues:
Revenues from company-owned or managed clinics	$	14,672,865		4,872,411		$	19,545,276
Total revenues		31,789,249		4,872,411			36,661,660
General and administrative expenses		20,304,132		4,933,989			25,238,121
Total selling, general and administrative expenses		26,679,927		4,933,989			31,613,916
Income from operations		205,113		(61,578	)		143,535

Other (expense) income, net		10,241		(44,808	)		(34,567	)
Income before income tax benefit (expense)		215,354		(106,386	)		108,968

Net income and comprehensive income	$	253,083		(106,386	)	$	146,696

Earnings (loss) per share:
Basic earnings (loss) per share	$	0.02		(0.01	)	$	0.01
Diluted earnings (loss) per share	$	0.02		(0.01	)	$	0.01

Basic weighted average shares		13,669,107		–			13,669,107
Diluted weighted average shares		14,031,717		–			14,031,717

	December 31, 2018			Adjustments Due To VIE Consolidation			December 31, 2018
ASSETS	(as reported)						(as adjusted)
Current assets:
Accounts receivable, net		1,213,707			(407,357	)		806,350
Total current assets		11,711,345			(407,357	)		11,303,988
Goodwill		2,916,426			308,719			3,225,145
Total assets	$	23,526,352		$	(98,639	)	$	23,427,713

LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Deferred revenue from company clinics		994,493			1,535,004			2,529,497
Total current liabilities		8,738,123			1,535,004			10,273,127
Total liabilities		21,165,108			1,535,004			22,700,112
Commitments and contingencies
Equity:
The Joint Corp. stockholders' equity:
Accumulated deficit		(35,750,908	)		(1,633,543	)		(37,384,451	)
Total The Joint Corp. stockholders' equity		2,361,244			(1,633,543	)		727,701
Non-controlling Interest		–			(100	)		(100	)
Total equity		2,361,244			(1,633,643	)		727,601
Total liabilities and equity	$	23,526,352		$	(98,639	)	$	23,427,713

	Three Months Ended March 31,
Franchised clinics:	2019			2018
Clinics open at beginning of period		394			352
Opened or Purchased during the period		12			7
Acquired or sold during the period		(1	)		-
Closed during the period		(1	)		-
Clinics in operation at the end of the period		404			359

	Three Months Ended March 31,
Company-owned or managed clinics:	2019			2018
Clinics open at beginning of period		48			47
Opened during the period		2			-
Acquired during the period		1			-
Closed or Sold during the period		(1	)		-
Clinics in operation at the end of the period		50			47

Total clinics in operation at the end of the period		454			406

Clinic licenses sold but not yet developed		145			114
Executed letters of intent for future clinic licenses		27			8

	Three Months Ended March 31,
		2019		2018
				(as adjusted)
Net Income (loss)	$	952,644	$	(31,614	)

Weighted average common shares outstanding - basic		13,751,196		13,587,837
Effect of dilutive securities:
Unvested restricted stock and stock options		504,810		-
Weighted average common shares outstanding - diluted		14,256,006		13,587,837

Basic earnings (loss) per share	$	0.07	$	(0.00	)
Diluted earnings (loss) per share	$	0.07	$	(0.00	)