Quarterly report pursuant to Section 13 or 15(d)

Supplemental Disclosure of Non-cash Activity

v3.8.0.1
Supplemental Disclosure of Non-cash Activity
9 Months Ended
Sep. 30, 2017
Notes to Financial Statements  
Cash Flow, Supplemental Disclosures [Text Block]
During the
nine
months ended
September 30, 2017
and
2016,
cash paid for income taxes was
$22,838
and
$10,466,
respectively. During the
nine
months ended
September 30, 2017
and
2016,
cash paid for interest was
$81,993
and
$15,262,
respectively.
 
Supplemental disclosure of non-cash activity:
 
As of
September 30, 2016,
we had property and equipment purchases of
$7,105
which were included in accounts payable.
 
In connection with our acquisitions of franchises during the
nine
months ended
September 30, 2016,
we acquired
$293,014
of property and equipment, intangible assets of
$339,000,
goodwill of
$269,780
and assumed deferred revenue associated with membership packages paid in advance of
$45,072
in exchange for
$839,000
in cash and notes payable issued to the sellers for an aggregate amount of
$186,000.
Additionally, at the time of these transactions, we carried deferred revenue of
$29,000,
representing franchise fees collected upon the execution of franchise agreements, and deferred costs of
$1,450,
related to our acquisition of undeveloped franchises. We netted these amounts against the aggregate purchase price of the acquisitions (Note
2
).
 
In connection with our reacquisition and termination of regional developer rights during the
nine
months ended
September 30, 2016,
we had deferred revenue of
$224,750
representing license fees collected upon the execution of the regional developer agreements. In accordance with ASC-
952
-
605,
we netted these amounts against the aggregate purchase price of the acquisitions.
 
In connection with our sale of the regional developer territories in Central Florida, Maryland/Washington DC, and Minnesota we issued notes receivable in the amount of
$423,622
with revenue to be recognized over the anticipated number of clinics to be opened in the respective territories. We have recognized
$9,412
of revenue related to these notes in the
nine
months ended
September 30, 2017.