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

Quarterly report pursuant to Section 13 or 15(d)

Note 3 - Property and Equipment

Note 3 - Property and Equipment

3 Months Ended

Mar. 31, 2017

Notes to Financial Statements

Property, Plant and Equipment Disclosure [Text Block]

Note

Property and Equipment

Property and equipment consists of the following:

	March 31,			December 31,
	2017			2016

Office and computer equipment	$	1,099,747		$	1,083,039
Leasehold improvements		5,085,366			5,085,366
Software developed		1,046,823			891,192
		7,231,936			7,059,597
Accumulated depreciation		(2,969,302	)		(2,566,172	)
		4,262,634			4,493,425
Construction in progress		98,266			231,281
	$	4,360,900		$	4,724,706

Depreciation expense was

$403,131

and

$401,867

for the

three

months ended

March

31,

2017

and

2016,

respectively.

December,

2016,

the Company determined that

clinics from its Corporate Clinics segment, met the criteria for classification as held for sale. Accordingly, in

December,

2016,

the Company recognized a

$2.4

million impairment charge to lower the carrying costs of the property and equipment to its estimated fair value less cost to sell which was recorded in the loss on disposition or impairment line of the

2016

consolidated statement of operations. The Company completed the sale of the property in the

first

quarter of

2017

for nominal consideration.