Supplemental Disclosure of Non-cash Activity |
9 Months Ended |
|---|---|
Sep. 30, 2017 | |
| Notes to Financial Statements | |
| Cash Flow, Supplemental Disclosures [Text Block] |
During the nine months ended September 30, 2017 and 2016, cash paid for income taxes was $22,838 and $10,466, respectively. During the nine months ended September 30, 2017 and 2016, cash paid for interest was $81,993 and $15,262, respectively.Supplemental disclosure of non-cash activity: As of September 30, 2016, we had property and equipment purchases of $7,105 which were included in accounts payable.In connection with our acquisitions of franchises during the nine months ended September 30, 2016, we acquired $293,014 of property and equipment, intangible assets of $339,000, goodwill of $269,780 and assumed deferred revenue associated with membership packages paid in advance of $45,072 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 reacquisition and termination of regional developer rights during the nine months ended September 30, 2016, we had deferred revenue of $224,750 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.In connection with our sale of the regional developer territories in Central Florida, Maryland/Washington DC, and Minnesota we issued notes receivable in the amount of
$423,622 with revenue to be recognized over the anticipated number of clinics to be opened in the respective territories. We have recognized $9,412 of revenue related to these notes in the nine months ended September 30, 2017.
|