Annual report pursuant to Section 13 and 15(d)

Supplemental Disclosure of Non-cash Activity

v3.10.0.1
Supplemental Disclosure of Non-cash Activity
 12 Months Ended
Dec. 31, 2018
Notes to Financial Statements  
Cash Flow, Supplemental Disclosures [Text Block]
During the years ended
December 31, 2018
and
2017,
cash paid for income taxes was
$29,522
and
$29,315,
respectively. During the years ended
December 31, 2018
and
2017,
cash paid for interest was
$100,000
and
$108,016,
respectively.
 
Supplemental disclosure of non-cash activity:
 
As of
December 31, 2018,
we had property and equipment purchases of
$121,038
and
$1,595
included in accounts payable and accrued expenses, respectively. As of
December 31, 2017,
we had property and equipment purchases of
$50,474
included in accounts payable.
 
In connection with our acquisitions of franchises during the year ended
December 31, 2018,
we acquired
$17,964
of property and equipment, intangible assets of
$129,000,
and favorable leases of
$15,302,
in exchange for
$100,000
in cash to the sellers.  Additionally, at the time of these transactions, we carried deferred revenue of
$12,998,
representing franchise fees collected upon the execution of the franchise agreement.  We netted this amount against the aggregate purchase price of the acquisitions (Note
2
).
 
In connection with our reacquisition and termination of regional developer rights during the year ended
December 31, 2018,
we had deferred revenue of
$26,934
representing license fees collected upon the execution of the regional developer agreements.  We netted these amounts against the aggregate purchase price of the acquisitions (Note
8
).
 
In connection with the sale of the regional developer territories in Central Florida, Maryland/Washington DC, Minnesota, Texas, Oklahoma and Arkansas, the Company issued notes receivable in the amount of
$559,310
with revenue to be recognized over the anticipated number of clinics to be opened in the respective territories. The Company has recognized
$14,967
of revenue related to these notes in the year ended
December 31, 2017.
 
During
December
of
2017,
the Company recorded an adjustment to goodwill related to deferred revenue from previous acquisitions of
$166,088.