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

6 Months Ended

Jun. 30, 2024

Goodwill and Intangible Assets Disclosure [Abstract]

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 CA Clinics Purchase (see Note 3, Acquisitions and Assets Held for Sale).

Intangible assets consisted of the following:


	As of June 30, 2024
	Gross Carrying Amount		Accumulated Amortization		Net Carrying Value
Intangible assets subject to amortization:
Reacquired franchise rights	$	7,340,066	$	(3,436,502)	$	3,903,564
Customer relationships	1,682,807		(1,571,730)		111,077
Assembled workforce	440,844		(310,323)		130,521
	$	9,463,717	$	(5,318,555)	$	4,145,162


	As of December 31, 2023
	Gross Carrying Amount		Accumulated Amortization		Net Carrying Value
Intangible assets subject to amortization:
Reacquired franchise rights	$	7,385,830	$	(2,926,595)	$	4,459,235
Customer relationships	1,682,807		(1,349,938)		332,869
Assembled workforce	440,844		(212,022)		228,822
	$	9,509,481	$	(4,488,555)	$	5,020,926

Amortization expense related to the Company’s intangible assets was $0.4 million and $0.9 million for the three months ended June 30, 2024 and 2023, respectively. Amortization expense was $0.8 million and $1.9 million for the six months ended June 30, 2024 and 2023, respectively.

Estimated amortization expense for 2024 and subsequent years is as follows:


	Amount
2024 (remainder)	$	666,043
2025	1,091,548
2026	949,138
2027	556,369
2028	444,967
Thereafter	$	437,097
Total	$	4,145,162