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

Quarterly report pursuant to Section 13 or 15(d)

Intangible Assets

Intangible Assets

9 Months Ended

Sep. 30, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

In May 2022, the Company recognized $2.4 million and $0.5 million of reacquired franchise rights and customer relationships, respectively, from the Acquisition (see Note 3, Acquisitions and Assets Held for Sale).

In May 2023, the Company recognized $0.7 million, $0.1 million and $0.2 million of reacquired franchise rights, customer relationships and acquired workforce, respectively, from the Acquisition (see Note 3, Acquisitions and Assets Held for Sale).

Intangible assets consisted of the following:


	As of September 30, 2023
	Gross Carrying Amount		Accumulated Amortization		Net Carrying Value
Intangible assets subject to amortization:
Reacquired franchise rights	$	12,924,858	$	(6,069,013)	$	6,855,845
Customer relationships	4,306,684		(3,126,081)		1,180,603
Assembled workforce	1,065,311		(478,644)		586,667
	$	18,296,853	$	(9,673,738)	$	8,623,115


	As of December 31, 2022
	(as restated)
	Gross Carrying Amount		Accumulated Amortization		Net Carrying Value
Intangible assets subject to amortization:
Reacquired franchise rights	$	12,881,894	$	(4,755,286)	$	8,126,608
Customer relationships	4,330,365		(2,352,500)		1,977,865
Assembled workforce	959,837		(136,015)		823,822
	$	18,172,096	$	(7,243,801)	$	10,928,295

Amortization expense related to the Company’s intangible assets was $960,466 and $725,859 for the three months ended September 30, 2023 and 2022, respectively. Amortization expense was $2,842,914 and $1,663,712 for the nine months ended September 30, 2023 and 2022, respectively.

Estimated amortization expense for 2023 and subsequent years is as follows:


	Amount
2023 (remainder)	$	901,345
2024	2,675,174
2025	1,602,969
2026	1,272,426
2027	717,394
Thereafter	$	1,453,807
Total	$	8,623,115