Quarterly report pursuant to Section 13 or 15(d)

Supplemental Disclosure of Non-cash Activity

v3.19.1
Supplemental Disclosure of Non-cash Activity
 3 Months Ended
Mar. 31, 2019
Notes to Financial Statements  
Cash Flow, Supplemental Disclosures [Text Block]
During the
three
months ended
March 31, 2019
and
2018,
cash paid for income taxes was
$55
and
$0,
respectively. During the
three
months ended
March 31, 2019
and
2018,
cash paid for interest was
$25,000
.
Supplemental disclosure of non-cash activity:
As of
March 31, 2019,
we had property and equipment purchases of
$239,313
and
$3,600
included in accounts payable and accrued expenses, respectively. 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.
In connection with our acquisition during the
three
months ended
March 31, 2019,
we acquired
$9,166
of property and equipment and intangible assets of
$62,000,
in exchange for
$30,000
in cash to the seller.  Additionally, at the time of these transactions, we carried deferred revenue of
$3,847,
representing franchise fees collected upon the execution of the franchise agreement.  We netted this amount against the purchase price of the acquisition (Note
2
).  
In connection with our reacquisition and termination of regional developer rights during the
three
months ended
March 31, 2019,
we had deferred revenue of
$44,334
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
)
As of
March 31, 2019,
we had
$30,358
of proceeds from the exercise of stock options included in accounts receivable.
Note: The Condensed Consolidated Statements of Cash Flows is unaudited and has been restated to reflect the consolidation of variable interest entities. See Note
1
of “Notes to Condensed Consolidated Financial Statements” under the heading “
Prior Period Financial Statement Correction of Immaterial Error
” for more details. The accompanying notes are an integral part of these condensed consolidated financial statements.