| Schedule of Error Corrections and Prior Period Adjustments |
The immaterial impacts of this error correction for the fiscal year ended December 31, 2018 were as follows: THE JOINT CORP. AND SUBSIDIARY AND AFFILIATES
CONSOLIDATED STATEMENTS OF OPERATIONS
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Year Ended December 31, 2018 |
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Adjustments Due To VIE Consolidation |
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Year Ended December 31, 2018 |
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(as reported) |
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(as adjusted) |
| Revenues: |
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| Revenues from company-owned or managed clinics |
$ |
14,672,865 |
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$ |
4,872,411 |
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$ |
19,545,276 |
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| Total revenues |
31,789,249 |
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4,872,411 |
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36,661,660 |
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| General and administrative expenses |
20,304,131 |
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4,933,990 |
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25,238,121 |
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| Total selling, general and administrative expenses |
26,679,926 |
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4,933,990 |
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31,613,916 |
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| Income from operations |
204,139 |
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(61,578) |
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142,561 |
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| Other income (expense): |
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| Bargain purchase gain |
58,006 |
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(44,808) |
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$ |
13,198 |
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| Total other income (expense) |
11,215 |
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(44,808) |
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$ |
(33,593) |
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| Income before income tax (benefit) expense |
215,354 |
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(106,386) |
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$ |
108,968 |
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| Net income and comprehensive income |
$ |
253,082 |
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(106,386) |
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$ |
146,696 |
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| Earnings per share: |
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| Basic earnings per share |
$ |
0.02 |
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(0.01) |
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$ |
0.01 |
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| Diluted earnings per share |
$ |
0.02 |
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(0.01) |
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$ |
0.01 |
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| Basic weighted average shares |
13,669,107 |
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— |
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$ |
13,669,107 |
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| Diluted weighted average shares |
14,031,717 |
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— |
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$ |
14,031,717 |
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THE JOINT CORP. AND SUBSIDIARY AND AFFILIATES
CONSOLIDATED BALANCE SHEETS
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December 31, 2018 |
|
Adjustments Due To VIE Consolidation |
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December 31, 2018 |
| ASSETS |
(as reported) |
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(as adjusted) |
| Current assets: |
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| Accounts receivable, net |
1,213,707 |
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(407,357) |
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806,350 |
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| Total current assets |
11,711,345 |
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(407,357) |
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11,303,988 |
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| Goodwill |
2,916,426 |
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308,719 |
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3,225,145 |
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| Total assets |
$ |
23,526,352 |
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$ |
(98,639) |
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$ |
23,427,713 |
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| LIABILITIES AND STOCKHOLDERS' EQUITY |
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| Current liabilities: |
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| Deferred revenue from company clinics |
994,493 |
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1,535,004 |
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2,529,497 |
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| Total current liabilities |
8,738,123 |
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1,535,004 |
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10,273,127 |
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| Total liabilities |
21,165,108 |
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1,535,004 |
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22,700,112 |
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| Commitments and contingencies |
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| Equity: |
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| The Joint Corp. stockholders' equity: |
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| Accumulated deficit |
(35,750,908) |
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(1,633,743) |
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(37,384,651) |
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| Total The Joint Corp. stockholders' equity |
2,361,244 |
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(1,633,743) |
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727,501 |
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| Non-controlling Interest |
— |
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100 |
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100 |
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| Total equity |
2,361,244 |
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(1,633,643) |
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727,601 |
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| Total liabilities and equity |
$ |
23,526,352 |
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$ |
(98,639) |
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$ |
23,427,713 |
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| Schedule of Earnings (Loss) per Common Share |
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Year Ended December 31, |
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2019 |
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2018 |
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(as adjusted) |
| Net income |
$ |
3,323,712 |
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$ |
146,696 |
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| Weighted average common shares outstanding - basic |
13,819,149 |
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13,669,107 |
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| Effect of dilutive securities: |
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| Unvested restricted stock and stock options |
648,418 |
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362,610 |
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| Weighted average common shares outstanding - diluted |
14,467,567 |
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14,031,717 |
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| Basic earnings per share |
$ |
0.24 |
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$ |
0.01 |
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| Diluted earnings per share |
$ |
0.23 |
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$ |
0.01 |
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Potentially dilutive securities excluded from the calculation of diluted net income per common share as the effect would be anti-dilutive were as follows:
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Year Ended December 31, |
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2019 |
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2018 |
| Unvested restricted stock |
— |
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6,896 |
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| Stock options |
39,286 |
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236,205 |
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