Nature of Operations and Summary of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2019

Accounting Policies [Abstract]

Schedule of Error Corrections and Prior Period Adjustments

The immaterial impacts of this error correction for the fiscal year ended December 31, 2018 were as follows:

THE JOINT CORP. AND SUBSIDIARY AND AFFILIATES

CONSOLIDATED STATEMENTS OF OPERATIONS

	Year Ended December 31, 2018		Adjustments Due To VIE Consolidation		Year Ended December 31, 2018
	(as reported)				(as adjusted)
Revenues:
Revenues from company-owned or managed clinics	$	14,672,865	$	4,872,411	$	19,545,276
Total revenues	31,789,249		4,872,411		36,661,660
General and administrative expenses	20,304,131		4,933,990		25,238,121
Total selling, general and administrative expenses	26,679,926		4,933,990		31,613,916
Income from operations	204,139		(61,578)		142,561
Other income (expense):
Bargain purchase gain	58,006		(44,808)		$	13,198
Total other income (expense)	11,215		(44,808)		$	(33,593)
Income before income tax (benefit) expense	215,354		(106,386)		$	108,968
Net income and comprehensive income	$	253,082	(106,386)		$	146,696
Earnings per share:
Basic earnings per share	$	0.02	(0.01)		$	0.01
Diluted earnings per share	$	0.02	(0.01)		$	0.01
Basic weighted average shares	13,669,107		—		$	13,669,107
Diluted weighted average shares	14,031,717		—		$	14,031,717

THE JOINT CORP. AND SUBSIDIARY AND AFFILIATES

CONSOLIDATED BALANCE SHEETS

	December 31, 2018		Adjustments Due To VIE Consolidation		December 31, 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

Schedule of Franchisor Disclosure

The following table summarizes the number of clinics in operation under franchise agreements and as company-owned or managed for the years ended December 31, 2019 and 2018:

	Year Ended December 31,
Franchised clinics:	2019	2018
Clinics open at beginning of period	394	352
Opened during the period	71	47
Sold during the period	(8)	(1)
Closed during the period	(4)	(4)
Clinics in operation at the end of the period	453	394

	Year Ended December 31,
Company-owned or managed clinics:	2019	2018
Clinics open at beginning of period	48	47
Opened during the period	5	—
Acquired during the period	8	1
Closed during the period	(1)	—
Clinics in operation at the end of the period	60	48
Total clinics in operation at the end of the period	513	442
Clinic licenses sold but not yet developed	170	136
Executed letters of intent for future clinic licenses	34	19

Schedule of Earnings (Loss) per Common Share

	Year Ended December 31,
	2019		2018
			(as adjusted)
Net income	$	3,323,712	$	146,696
Weighted average common shares outstanding - basic	13,819,149		13,669,107
Effect of dilutive securities:
Unvested restricted stock and stock options	648,418		362,610
Weighted average common shares outstanding - diluted	14,467,567		14,031,717
Basic earnings per share	$	0.24	$	0.01
Diluted earnings per share	$	0.23	$	0.01

Potentially dilutive securities excluded from the calculation of diluted net income per common share as the effect would be anti-dilutive were as follows:

	Year Ended December 31,
	2019	2018
Unvested restricted stock	—	6,896
Stock options	39,286	236,205