During the year ended the Company continued to execute its growth strategy and entered into a series of unrelated transactions with existing franchisees to re-acquire an aggregate of developed franchises and undeveloped franchise throughout California and New Mexico for an aggregate purchase price of subject to certain adjustments, consisting of cash of and notes payable of The Company is operating the developed franchises as company-owned or managed clinics and has terminated the undeveloped clinic license. At the time these transactions were consummated, the Company carried

 

The Company incurred approximately of transaction costs related to these acquisitions for the year ended which are included in general and administrative expenses in the accompanying consolidated statements of operations.

   

 

The following summarizes the aggregate estimated fair values of the assets acquired and liabilities assumed during as of the acquisition date:

 

Property and equipment		$	293,014
Intangible assets			339,000
Favorable leases			140,728
Goodwill			269,780
Total assets acquired			1,042,522
Deferred membership revenue			(45,072	)
Net purchase price		$	997,450

 

Intangible assets in the table above consist of reacquired franchise rights of and customer relationships of and will be amortized over their estimated useful lives ranging from to years and years, respectively.

 

Goodwill recorded in connection with these acquisitions was attributable to the workforce of the clinics and synergies expected to arise from cost savings opportunities. All of the recorded goodwill is tax-deductible. 

 

 

The following table summarizes selected unaudited pro forma condensed consolidated statements of operations data for the year ended and as if the acquisitions in had been completed on

 

		Pro Forma for the Year Ended
		December 31, 2017				December 31, 2016
Revenues, net		$	-			$	20,985,277
Net loss		$	-			$	(15,483,492	)

 

This selected unaudited pro forma consolidated financial data is included only for the purpose of illustration and does necessarily indicate what the operating results would have been if the acquisitions had been completed on that date. Moreover, this information is indicative of what the Company’s future operating results will be. The information for prior to the acquisitions is included based on prior accounting records maintained by the acquired companies. In some cases, accounting policies differed materially from accounting policies adopted by the Company following the acquisitions. For this information includes actual data recorded in the Company’s consolidated financial statements for the period subsequent to the date of the acquisitions. The Company’s consolidated statements of operations for the year ended includes net revenue and net income of approximately million and million, respectively, attributable to the acquisitions.

 

The pro forma amounts included in the table above reflect the application of accounting policies and adjustment of the results of the clinics to reflect the additional depreciation and amortization that would have been charged assuming the fair value adjustments to property and equipment and intangible assets had been applied from together with the consequential tax impacts.