The Joint Corp. Quarterly report pursuant to Section 13 or 15(d)

Note 1 - Nature of Operations and Summary of Significant Accounting Policies (Tables)

6 Months Ended

Jun. 30, 2019

	Three Months Ended			Adjustments Due To			Three Months Ended
	June 30, 2018			VIE Consolidation			June 30, 2018
	(as reported)						(as adjusted)
Revenues:
Revenues from company-owned or managed clinics	$	3,420,685			1,247,953		$	4,668,638
Total revenues		7,556,832			1,247,953			8,804,785
General and administrative expenses		4,656,308			1,211,204			5,867,512
Total selling, general and administrative expenses		6,354,946			1,211,204			7,566,150
Loss from operations		(100,402	)		36,163			(64,239	)

Other income (expense):
Bargain purchase gain		75,264			(44,809	)		30,455
Total other income		63,575			(44,223	)		19,352

Loss before income tax expense		(36,827	)		(8,060	)		(44,887	)

Net loss and comprehensive loss	$	(42,778	)		(8,060	)	$	(50,838	)

	Six Months Ended			Adjustments Due To			Six Months Ended
	June 30, 2018			VIE Consolidation			June 30, 2018
		(as reported)						(as adjusted)
Revenues:
Revenues from company-owned or managed clinics	$	6,677,309			2,797,002		$	9,474,311
Total revenues		14,654,747			2,797,002			17,451,749
General and administrative expenses		9,731,234			2,404,964			12,136,198
Total selling, general and administrative expenses		12,919,593			2,404,964			15,324,557
Loss from operations		(539,466	)		391,064			(148,402	)

Other income (expense):
Bargain purchase gain		75,264			(44,809	)		30,455
Total other income		52,380			(43,835	)		8,545

Loss before income tax expense		(487,086	)		347,229			(139,857	)

Net loss and comprehensive loss	$	(429,682	)		347,229		$	(82,453	)

Loss per share:
Basic and diluted loss per share	$	(0.03	)		0.02		$	(0.01	)

Basic and diluted weighted average shares		13,605,370			-			13,605,370

	December 31,			Adjustments Due To			December 31,
	2018			VIE Consolidation			2018
ASSETS	(as reported)						(as adjusted)
Current assets:
Accounts receivable, net		1,213,707			(407,357	)		806,350
Total current assets		11,711,345			(407,357	)		11,303,988
Goodwill		2,916,426			308,719			3,225,145
Total assets	$	23,526,352		$	(98,639	)	$	23,427,713

LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Deferred revenue from company clinics		994,493			1,535,004			2,529,497
Total current liabilities		8,738,123			1,535,004			10,273,127
Total liabilities		21,165,108			1,535,004			22,700,112
Commitments and contingencies
Equity:
The Joint Corp. stockholders' equity:
Accumulated deficit		(35,750,908	)		(1,633,743	)		(37,384,651	)
Total The Joint Corp. stockholders' equity		2,361,244			(1,633,743	)		727,501
Non-controlling Interest		-			100			100
Total equity		2,361,244			(1,633,643	)		727,601
Total liabilities and equity	$	23,526,352		$	(98,639	)	$	23,427,713

	Three Months Ended						Six Months Ended
	June 30,						June 30,
Franchised clinics:	2019			2018			2019			2018
Clinics open at beginning of period		404			359			394			352
Opened or Purchased during the period		14			8			26			15
Acquired or sold during the period		–			(1	)		(1	)		(1	)
Closed during the period		(1	)		(1	)		(2	)		(1	)
Clinics in operation at the end of the period		417			365			417			365

	Three Months Ended				Six Months Ended
	June 30,				June 30,
Company-owned or managed clinics:	2019		2018		2019			2018
Clinics open at beginning of period		50		47		48			47
Opened during the period		1		–		3			–
Acquired during the period		–		1		1			1
Closed or Sold during the period		–		–		(1	)		–
Clinics in operation at the end of the period		51		48		51			48

Total clinics in operation at the end of the period		468		413		468			413

Clinic licenses sold but not yet developed		176		117		176			117
Executed letters of intent for future clinic licenses		28		9		28			9

	Three Months Ended					Six Months Ended
	June 30,					June 30,
	2019		2018			2019		2018
			(as adjusted)					(as adjusted)
Net Income (loss)	$	462,260	$	(50,838	)	$	1,414,905	$	(82,453	)

Weighted average common shares outstanding - basic		13,797,497		13,622,710			13,774,474		13,605,370
Effect of dilutive securities:
Unvested restricted stock and stock options		679,510		–			615,845		–
Weighted average common shares outstanding - diluted		14,477,007		13,622,710			14,390,320		13,605,370

Basic earnings (loss) per share	$	0.03	$	–		$	0.10	$	(0.01	)
Diluted earnings (loss) per share	$	0.03	$	–		$	0.10	$	(0.01	)

Three Months Ended

Six Months Ended

June 30,

Weighted average potentially dilutive securities:

2019

2018

2019

2018

Unvested restricted stock

–

2,569

–

Stock options

–

41,035

–