Supplemental Disclosure of Non-cash Information |
6 Months Ended |
|---|---|
Jun. 30, 2016 | |
| Notes to Financial Statements | |
| Cash Flow, Supplemental Disclosures [Text Block] |
Supplemental disclosure of cash flow information: During the six months ended June 30, 2016 and 2015, cash paid for income taxes was $0 and $0, respectively. During the six months ended June 30, 2016 and 2015, cash paid for interest was $3,550 and $135, respectively. Supplemental disclosure of non-cash activity: As of June 30, 2016 we had property and equipment purchases of $258,696 which were included in accounts payable. In connection with our reacquisition and termination of regional developer rights during the six months ended June 30, 2016 and 2015, we had deferred revenue of $224,750 and $688,750, respectively, representing license fees collected upon the execution of the regional developer agreements. In accordance with ASC-952-605, we netted these amounts against the aggregate purchase price of the acquisitions (Note 5). In connection with our acquisitions of franchises during the six months ended June 30, 2016, we acquired $296,571 of property and equipment, intangible assets of $294,772, goodwill of $478,326 and assumed deferred revenue associated with membership packages paid in advance of $72,218 in exchange for $839,000 in cash and notes payable issued to the sellers for an aggregate amount of $186,000. Additionally, at the time of these transactions, we carried deferred revenue of $29,000, representing franchise fees collected upon the execution of franchise agreements, and deferred costs of $1,450, related to our acquisition of undeveloped franchises. We netted these amounts against the aggregate purchase price of the acquisitions (Note 2). In connection with our acquisitions of franchises during the six months ended June 30, 2015, we acquired $1,346,766 of property and equipment, intangible assets of $1,070,500, goodwill of $2,111,564 and assumed deferred revenue associated with membership packages paid in advance of $107,555 in exchange for $4,242,975 in cash and notes payable issued to the sellers for an aggregate amount of $644,000. Additionally, at the time of these transactions, we carried deferred revenue of $928,000, representing franchise fees collected upon the execution of franchise agreements, and deferred costs of $461,900, related to our acquisition of undeveloped franchises. We netted these amounts against the aggregate purchase price of the acquisitions (Note 2). As of December 31, 2014, we recorded a deposit of $507,500 for the reacquisition and termination of regional developer rights, which were paid in advance. During the six months ended June 30, 2015, upon the effective date of the reacquisition and termination agreement, we reclassified $507,500 from deposits to intangible assets.
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