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, 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, excluding amounts related to intangible assets classified as held for sale:


	As of September 30, 2024
	Gross Carrying Amount		Accumulated Amortization		Net Carrying Value
Intangible assets subject to amortization:
Reacquired franchise rights	$	883,205	$	(883,205)	$	—
Customer relationships	650,365		(650,365)		—
Assembled workforce	—		—		—
	$	1,533,570	$	(1,533,570)	$	—


	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 $0.3 million and $1.0 million for the three months ended September 30, 2024 and 2023, respectively. Amortization expense was $1.2 million and $2.8 million for the nine months ended September 30, 2024 and 2023, respectively.

At September 30, 2024, no further amortization expense is expected for the remainder of 2024 and subsequent years as a result of the remaining net carrying value of intangible assets being reclassified as assets held for sale.