Subsequent Events |
9 Months Ended |
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Sep. 30, 2022 | |
| Subsequent Events [Abstract] | |
| Subsequent Events | Subsequent Events On October 12, 2022, the Company entered into an agreement under which the Company repurchased the right to develop franchises in various counties in the Philadelphia area. The total consideration for the transaction was $225,000. The Company carried a deferred revenue balance associated with this transaction of $73,757, representing the unrecognized fee collected upon the execution of the regional developer agreement. The Company accounted for the termination of development rights associated with unsold or undeveloped franchises as a cancellation, and the associated deferred revenue was netted against the aggregate purchase price. The Company recognized the net amount of $151,243 as reacquired development rights on October 12, 2022, which is amortized over the remaining original contract period of approximately 4.2 years.
On October 13, 2022, the Company entered into an Asset and Franchise Purchase Agreement under which the Company repurchased from the seller an operating franchise in North Carolina. The Company operates the franchise as a company-managed clinic. The total purchase price for the transaction was $772,000, less $5,108 of net deferred revenue, resulting in total purchase consideration of $766,892.
On October 24, 2022, the Company entered into an Asset and Franchise Purchase Agreement under which the Company repurchased from the seller an operating franchise in North Carolina. The Company operates the franchise as a company-managed clinic. The total purchase price for the transaction was $1,400,000, less $9,262 of net deferred revenue, resulting in total purchase consideration of $1,390,738.
Employee Retention Credit
In October 2022, the Company filed an application with the Internal Revenue Service for an Employee Retention Credit in an amount of approximately $4.7 million. The Employee Retention Credit, originally included in the CARES Act in 2020 and subsequently modified by Congress, is a refundable tax credit against certain employment taxes equal to 50-70% of the qualified wages an eligible employer pays to its employees. The Company’s application was filed with respect to the modification of operations and partial suspension of business operations due to a governmental order and the related wages paid between the period of January 1, 2021 and June 30, 2021. There is no assurance that the Company will qualify for this credit or when, or in what amount, the application will be approved.
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