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

9 Months Ended

Sep. 30, 2021

Schedule of Correction of Immaterial Error

The table below sets forth the impact of the revision on the previously issued consolidated balance sheet:


	December 31, 2020
	As Previously
	Reported		Adjustments		As Adjusted
ASSETS
Deferred tax assets	8,007,633		80,440		8,088,073
Total assets	$	65,732,843	$	80,440	$	65,813,283

LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Deferred revenue from company clinics	3,905,200		296,348		4,201,548
Total current liabilities	18,685,644		296,348		18,981,992
Total liabilities	44,981,760		296,348		45,278,108
Stockholders' equity:
Accumulated deficit	(20,470,081)		(215,908)		(20,685,989)
Total The Joint Corp. stockholders' equity	20,750,983		(215,908)		20,535,075
Total equity	20,751,083		(215,908)		20,535,175
Total liabilities and stockholders' equity	$	65,732,843	$	80,440	$	65,813,283

Schedule of Franchisor Disclosure

The following table summarizes the number of clinics in operation under franchise agreements and as company-owned or managed clinics for the three and nine months ended September 30, 2021 and 2020:


	Three Months Ended September 30,		Nine Months Ended September 30,
Franchised clinics:	2021	2020	2021	2020
Clinics open at beginning of period	555	477	515	453
Opened during the period	28	21	76	49
Sold during the period	—	—	(8)	—
Closed during the period	—	(1)	—	(5)
Clinics in operation at the end of the period	583	497	583	497

	Three Months Ended September 30,		Nine Months Ended September 30,
Company-owned or managed clinics:	2021	2020	2021	2020
Clinics open at beginning of period	78	62	64	60
Opened during the period	5	1	11	3
Acquired during the period	—	—	8	—
Closed during the period	—	—	—	—
Clinics in operation at the end of the period	83	63	83	63

Total clinics in operation at the end of the period	666	560	666	560

Clinic licenses sold but not yet developed	252	178	252	178
Executed letters of intent for future clinic licenses	43	40	43	40

Schedule of Earnings per Common Share


	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
Net Income	$	1,937,095	$	1,603,959	$	6,935,751	$	2,534,491

Weighted average common shares outstanding - basic	14,388,905		14,033,535		14,286,818		13,968,635
Effect of dilutive securities:
Unvested restricted stock and stock options	581,423		559,572		644,941		554,694
Weighted average common shares outstanding - diluted	14,970,328		14,593,107		14,931,759		14,523,329

Basic earnings per share	$	0.13	$	0.11	$	0.49	$	0.18
Diluted earnings per share	$	0.13	$	0.11	$	0.46	$	0.17

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


	Three Months Ended September 30,		Nine Months Ended September 30,
Weighted average potentially dilutive securities:	2021	2020	2021	2020
Unvested restricted stock	—	—	—	—
Stock options	601	112,768	35,293	133,194