Supplemental Disclosure of Non-cash Activity |
12 Months Ended |
|---|---|
Dec. 31, 2017 | |
| Notes to Financial Statements | |
| Cash Flow, Supplemental Disclosures [Text Block] |
During the years ended December 31, 2017 and 2016, cash paid for income taxes was $29,315 and $11,250, respectively. During the years ended December 31, 2017 and 2016, cash paid for interest was $108,016 and $15,262, respectively.Supplemental disclosure of non-cash activity: As of December 31, 2017, the Company had property and equipment purchases of $50,474 which were included in accounts payable. As of December 31, 2016, the Company had property and equipment purchases of $11,059 which were included in accounts payable.In connection with the acquisitions of franchises during the year ended December 31, 2016, the Company 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, the Company carried deferred revenue of $29,000, representing franchise fees collected upon the execution of franchise agreements, and deferred costs of $1,450, related to its acquisition of undeveloped franchises. The Company netted these amounts against the aggregate purchase price of the acquisitions (Note 2 ).In connection with the reacquisition and termination of regional developer rights during the year ended December 31, 2016, the Company had deferred revenue of $224,750 representing license fees collected upon the execution of the regional developer agreements. In accordance with ASC-952 -605, the Company netted these amounts against the aggregate purchase price of the acquisitions.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 2016, the Company entered into a settlement agreement, whereby it resolved a pending litigation matter. Under the terms of the settlement agreement, the Company agreed to a one -time settlement amount comprised of cash and 46,948 shares of common stock. The fair value of the total consideration related to common stock was $100,000. The fair value of the common stock was measured using the closing price of the Company's common stock on the settlement date.During
December of 2017 the Company recorded an adjustment to goodwill related to deferred revenue from previous acquisitions of $166,088.
|