| Schedule of the Effect of the Errors |
The following table summarizes the effect of the error on the Company's consolidated balance sheet as of December 31, 2024:
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December 31,
2024 |
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|
December 31,
2024 |
|
As Previously Reported |
|
Adjustments |
|
As Restated |
| Current assets: |
|
|
|
|
|
| Prepaid expenses and other current assets |
$ |
1,729,079 |
|
|
$ |
58,915 |
|
|
$ |
1,787,994 |
|
Discontinued operations current assets ($1.1 million attributable to VIEs) |
40,827,044 |
|
|
2,324,011 |
|
|
43,151,055 |
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| Total current assets |
72,194,522 |
|
|
2,382,926 |
|
|
74,577,448 |
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| Property and equipment, net |
3,166,882 |
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|
39,872 |
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|
3,206,754 |
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| Operating lease right-of-use asset |
245,384 |
|
|
310,152 |
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|
555,536 |
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| Total assets |
80,421,458 |
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|
2,732,950 |
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|
83,154,408 |
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| Current liabilities: |
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|
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| Operating lease liability, current portion |
448,285 |
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|
35,052 |
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|
483,337 |
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Discontinued operations current liabilities ($7.1 million attributable to VIEs) |
37,714,200 |
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|
(346,741) |
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|
37,367,459 |
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| Total current liabilities |
49,353,776 |
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|
(311,689) |
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|
49,042,087 |
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| Operating lease liability, net of current portion |
— |
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|
311,689 |
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|
311,689 |
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| Total liabilities |
62,476,289 |
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|
— |
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|
62,476,289 |
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| Accumulated deficit |
(30,435,420) |
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|
2,732,950 |
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|
(27,702,470) |
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| Total The Joint Corp. stockholders' equity |
17,920,169 |
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|
2,732,950 |
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|
20,653,119 |
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| Total equity |
17,945,169 |
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|
2,732,950 |
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|
20,678,119 |
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| Total liabilities and stockholders' equity |
80,421,458 |
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|
2,732,950 |
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|
83,154,408 |
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The following table summarizes the effect of the error on the Company's consolidated income statement for the year ended December 31, 2024:
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Year Ended December 31,
2024 |
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Year Ended December 31,
2024 |
|
As Previously Reported |
|
Adjustments |
|
As Restated |
| Revenues: |
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| Other revenues |
$ |
1,886,352 |
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|
$ |
266,825 |
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$ |
2,153,177 |
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| Total revenues |
51,896,605 |
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|
266,825 |
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|
52,163,430 |
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| Cost of revenues: |
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| IT cost of revenues |
1,453,011 |
|
|
193 |
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|
1,453,204 |
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| Total cost of revenues |
11,516,655 |
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|
193 |
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|
11,516,848 |
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| Selling and marketing expenses |
10,923,342 |
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|
50,268 |
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|
10,973,610 |
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| Depreciation and amortization |
1,363,453 |
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|
7,936 |
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|
1,371,389 |
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| General and administrative expenses |
29,833,570 |
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|
291,019 |
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|
30,124,589 |
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| Total selling, general, and administrative expenses |
42,120,365 |
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|
349,223 |
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|
42,469,588 |
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| Net loss on disposition or impairment |
14,642 |
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|
51,377 |
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|
66,019 |
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| Loss from operations |
(1,755,057) |
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|
(133,968) |
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|
(1,889,025) |
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| Loss before income tax expense |
(1,474,770) |
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|
(133,968) |
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(1,608,738) |
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| Income tax expense |
62,142 |
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(56,536) |
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|
5,606 |
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| Net loss from continuing operations |
(1,536,912) |
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|
(77,432) |
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|
(1,614,344) |
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| Discontinued Operations: |
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| (Loss) income from discontinued operations before income tax expense |
(6,780,289) |
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|
2,808,003 |
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(3,972,286) |
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| Income tax expense from discontinued operations |
212,642 |
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|
(2,379) |
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|
210,263 |
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| Net loss from discontinued operations |
(6,992,931) |
|
|
2,810,382 |
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|
(4,182,549) |
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| Net loss |
$ |
(8,529,843) |
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$ |
2,732,950 |
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|
$ |
(5,796,893) |
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| Net loss from continuing operations per common share: |
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| Basic |
$ |
(0.10) |
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$ |
(0.01) |
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$ |
(0.11) |
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| Diluted |
$ |
(0.10) |
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|
$ |
(0.01) |
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$ |
(0.11) |
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| Net (loss) income from discontinued operations per common share: |
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| Basic |
$ |
(0.47) |
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$ |
0.19 |
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|
$ |
(0.28) |
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| Diluted |
$ |
(0.46) |
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|
$ |
0.18 |
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|
$ |
(0.28) |
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| Net (loss) income per common share: |
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| Basic |
$ |
(0.57) |
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|
$ |
0.18 |
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|
$ |
(0.39) |
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| Diluted |
$ |
(0.56) |
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|
$ |
0.17 |
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|
$ |
(0.38) |
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The following table summarizes the effect of the error on the Company's consolidated statements of stockholders' equity as of December 31, 2024:
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Accumulated
Deficit |
|
Total The Joint Corp. stockholder's equity |
|
Total Equity |
| Balances, December 31, 2024 (as previously reported) |
$ |
(30,435,420) |
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|
$ |
17,920,169 |
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$ |
17,945,169 |
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| Adjustment due to error correction |
2,732,950 |
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|
2,732,950 |
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|
2,732,950 |
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| Balances, December 31, 2024 (as restated) |
$ |
(27,702,470) |
|
|
$ |
20,653,119 |
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$ |
20,678,119 |
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The following table summarizes the effect of the error on the Company's consolidated statement of cash flows for the year ended December 31, 2024:
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|
Year Ended December 31,
2024 |
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|
Year Ended December 31,
2024 |
|
As Previously Reported |
|
Adjustments |
|
As Restated |
| Cash flows from operating activities: |
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| Net loss |
$ |
(8,529,843) |
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$ |
2,732,950 |
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$ |
(5,796,893) |
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| Adjustments to reconcile net loss to net cash provided by operating activities: |
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| Net loss on disposition or impairment (non-cash portion) |
10,454,609 |
|
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(2,674,035) |
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|
7,780,574 |
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| Prepaid expenses and other current assets |
160,082 |
|
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(58,915) |
|
|
101,167 |
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| Net cash provided by operating activities |
9,415,050 |
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|
— |
|
|
9,415,050 |
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| Increase in cash |
6,782,144 |
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|
— |
|
|
6,782,144 |
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