Supplemental Disclosure of Non-cash Activity |
12 Months Ended |
|---|---|
Dec. 31, 2015 | |
| Notes to Financial Statements | |
| Cash Flow, Supplemental Disclosures [Text Block] |
Supplemental disclosure of cash flow information: During the year ended December 31, 2015 and 2014, cash paid for income taxes was $0 and $420,250, respectively. During the year ended December 31, 2015 and 2014, cash paid for interest was $2,344 and $0, respectively. Supplemental disclosure of non-cash activity: In connection with our acquisitions of franchises during the year ended December 31, 2015, we acquired $1,504,169 of property and equipment, intangible assets of $1,942,180, goodwill of $1,830,833, favorable leases of $521,825, assumed unfavorable leases of $49,077, deferred revenue associated with membership packages paid in advance of $106,908, and a deferred tax liability of $168,000 in exchange for $4,925,525 in cash and an aggregate amount of $800,350 in notes payable to the sellers. Additionally, at the time of these transactions, we carried deferred revenue of $1,005,500, representing franchise fees collected upon the execution of franchise agreements, and deferred costs of $493,500, related to our acquisition of undeveloped franchises. In accordance with ASC-952-605, 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 year ended December 31, 2015, we had deferred revenue of $914,000, 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 (Note 6). As of December 31, 2015, we had property and equipment purchases of $1,109,464 and $117,509 which were included in accounts payable and accrued expenses respectively. During the year ended December 31, 2014, warrants were issued for services in connection with the Company's initial public offering of $113,929. During the year December 31, 2014 $25 of preferred stock was converted to common stock. As of December 31, 2014, we recorded a deposit of $507,500 for the reacquisition and termination of regional developer rights, which were paid in advance. During the year ended December 31, 2015, upon the effective date of the agreement, we reclassified $507,500 from deposits to intangible assets. During the year ended December 31, 2014, warrants were issued for services in connection with the Company's initial public offering of $113,929. During the year December 31, 2014 $25 of preferred stock was converted to common stock. |