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

Quarterly report pursuant to Section 13 or 15(d)

Note 4 - Property and Equipment

Note 4 - Property and Equipment

9 Months Ended

Sep. 30, 2017

Notes to Financial Statements

Property, Plant and Equipment Disclosure [Text Block]

Note

Property and Equipment

Property and equipment consists of the following:

	September 30,			December 31,
	2017			2016

Office and computer equipment	$	1,126,758		$	1,083,039
Leasehold improvements		5,099,374			5,085,366
Software developed		1,048,697			891,192
		7,274,829			7,059,597
Accumulated depreciation		(3,664,357	)		(2,566,172	)
		3,610,472			4,493,425
Construction in progress		239,480			231,281
	$	3,849,952		$	4,724,706

Depreciation expense was

$340,238

and

$1,099,698

for the

three

and

nine

months ended

September 30, 2017,

respectively. Depreciation expense was

$492,076

and

$1,356,176

for the

three

and

nine

months ended

September 30, 2016,

respectively.

December 2016,

the Company determined that

clinics from its Corporate Clinics segment met the criteria for classification as held for sale. Accordingly, in

December 2016,

the Company recognized a

$2.4

million impairment charge to lower the carrying costs of the property and equipment to its estimated fair value less cost to sell which was recorded in the loss on disposition or impairment line of the

2016

consolidated statement of operations. The Company completed the sale of the property in the

first

quarter of

2017

for nominal consideration.