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

Commitments and Contingencies (Tables)

6 Months Ended

Jun. 30, 2023

The table below summarizes the components of lease expense and income statement location for the three and six months ended June 30, 2023 and 2022:


	Line Item in the Company’s Condensed Consolidated Income Statements	Three Months Ended June 30, 2023		Three Months Ended June 30, 2022		Six Months Ended June 30, 2023		Six Months Ended June 30, 2022
Finance lease costs:
Amortization of assets	Depreciation and amortization	$	7,570	$	18,636	$	15,139	$	40,432
Interest on lease liabilities	Other expense, net	825		1,112		1,713		2,549
Total finance lease costs		8,395		19,748		16,852		42,981
Operating lease costs	General and administrative expenses	1,639,749		$	1,375,574	3,253,595		$	2,730,884
Total lease costs		$	1,648,144	$	1,395,322	$	3,270,447	$	2,773,865

Supplemental information and balance sheet location related to leases is as follows:


	June 30, 2023		December 31, 2022
Operating Leases:
Operating lease right-of -use asset	$22,641,632		$20,587,199
Operating lease liability - current portion	$5,880,954		$5,295,830
Operating lease liability - net of current portion	20,029,654		18,672,719
Total operating lease liability	$25,910,608		$23,968,549
Finance Leases:
Property and equipment, at cost	$151,396		$151,396
Less accumulated amortization	(102,792)		(87,652)
Property and equipment, net	$48,604		$63,744
Finance lease liability - current portion	24,956		24,433
Finance lease liability - net of current portion	50,896		63,507
Total finance lease liabilities	$75,852		$87,940
Weighted average remaining lease term (in years):
Operating leases	5.2		5.4
Finance lease	2.9		3.4
Weighted average discount rate:
Operating leases	5.1	%	4.8	%
Finance leases	4.3	%	4.3	%

Supplemental cash flow information related to leases is as follows:


	Six Months Ended June 30, 2023		Six Months Ended June 30, 2022
Cash paid for amounts included in measurement of liabilities:
Operating cash flows from operating leases	$	3,465,890	$	2,822,523
Operating cash flows from finance leases	1,713		2,549
Financing cash flows from finance leases	12,087		38,022

Non-cash transactions: ROU assets obtained in exchange for lease liabilities
Operating lease	$	3,859,696	$	2,071,960
Finance lease	—		—

Maturities of lease liabilities as of June 30, 2023 were as follows:

Maturities of lease liabilities as of June 30, 2023 were as follows: