Cash Flow

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Consolidated Statements of Cash Flows - USD ($)
12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Cash flows from operating activities:    
Net income $ 3,323,712 $ 146,696
Adjustments to reconcile net income to net cash provided by (used in) operating activities:    
Depreciation and amortization 1,899,257 1,556,240
Net loss on disposition or impairment 114,352 594,934
Net franchise fees recognized upon termination of franchise agreements (113,944) (227,950)
Bargain purchase gain (19,298) (13,198)
Deferred income taxes 1,781 (77,020)
Stock based compensation expense 720,651 628,430
Changes in operating assets and liabilities:    
Accounts receivable (1,838,735) (78,716)
Prepaid expenses and other current assets (240,188) (339,948)
Deferred franchise costs (882,672) (802,990)
Deposits and other assets 268,369 38,983
Accounts payable 75,893 63,567
Accrued expenses (64,758) 177,768
Payroll liabilities 808,449 1,168,228
Deferred revenue 853,184 2,647,123
Other liabilities 2,615,896 (29,879)
Net cash provided by operating activities 7,521,949 5,452,268
Cash flows from investing activities:    
Acquisition of business (3,122,332) (100,000)
Purchase of property and equipment (3,483,578) (1,111,117)
Reacquisition and termination of regional developer rights (681,500) (278,250)
Payments received on notes receivable 149,348 245,713
Net cash used in investing activities (7,138,062) (1,243,654)
Cash flows from financing activities:    
Payments of finance lease obligation (21,954) 0
Purchases of treasury stock under employee stock plans (20,185) (4,811)
Proceeds from exercise of stock options 545,177 331,109
Repayments on notes payable (1,100,000) 0
Net cash (used in) provided by financing activities (596,962) 326,298
(Decrease) increase in cash (213,075) 4,534,912
Cash and restricted cash, beginning of period 8,641,877 8,854,952
Cash and restricted cash, end of period $ 8,854,952 $ 4,320,040

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