The Joint Corp. (JYNT) 10-Q 7 May 21 2021 Q1 Quarterly report Financial data

Cover Page

Cover Page - shares	3 Months Ended
	Mar. 31, 2021	May 03, 2021
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2021
Document Transition Report	false
Entity File Number	001-36724
Entity Registrant Name	Joint Corp
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	90-0544160
Entity Address, Address Line One	16767 N. Perimeter Drive
Entity Address, Address Line Two	Suite 240
Entity Address, City or Town	Scottsdale
Entity Address, State or Province	AZ
Entity Address, Postal Zip Code	85260
City Area Code	480
Local Phone Number	245-5960
Title of 12(b) Security	Common Stock, $0.001 Par Value Per Share
Trading Symbol	JYNT
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		14,226,700
Entity Central Index Key	0001612630
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q1
Amendment Flag	false

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (unaudited) - USD ($)	Mar. 31, 2021	Dec. 31, 2020
Current assets:
Cash and cash equivalents	$ 17,834,526	$ 20,554,258
Restricted cash	172,624	265,371
Accounts receivable, net	2,292,507	1,850,499
Deferred franchise and regional development costs, current portion	910,008	897,551
Prepaid expenses and other current assets	1,950,402	1,566,025
Total current assets	23,160,067	25,133,704
Property and equipment, net	9,338,838	8,747,369
Operating lease right-of-use asset	13,010,941	11,581,435
Deferred franchise and regional development costs, net of current portion	4,467,579	4,340,756
Intangible assets, net	3,444,538	2,865,006
Goodwill	4,625,604	4,625,604
Deferred tax assets	8,426,443	8,007,633
Deposits and other assets	433,549	431,336
Total assets	66,907,559	65,732,843
Current liabilities:
Accounts payable	1,154,803	1,561,648
Accrued expenses	830,714	770,221
Co-op funds liability	172,623	248,468
Payroll liabilities	2,559,016	2,776,036
Debt under the Credit Agreement	2,000,000	0
Operating lease liability, current portion	3,125,921	2,918,140
Finance lease liability, current portion	75,992	70,507
Deferred franchise and regional developer fee revenue, current portion	3,045,868	3,000,369
Deferred revenue from company clinics ($2.7 million and $2.6 million attributable to VIE)	3,971,067	3,905,200
Debt under the Paycheck Protection Program	0	2,727,970
Other current liabilities	707,763	707,085
Total current liabilities	17,643,767	18,685,644
Operating lease liability, net of current portion	12,246,741	10,632,672
Finance lease liability, net of current portion	114,887	132,469
Debt under the Credit Agreement	0	2,000,000
Deferred franchise and regional developer fee revenue, net of current portion	13,560,449	13,503,745
Other liabilities	27,230	27,230
Total liabilities	43,593,074	44,981,760
Commitments and contingencies
Stockholders' equity:
Series A preferred stock, $0.001 par value; 50,000 shares authorized, 0 issued and outstanding, as of March 31, 2021 and December 31, 2020	0	0
Common stock, $0.001 par value; 20,000,000 shares authorized, 14,288,111 shares issued and 14,257,325 shares outstanding as of March 31, 2021 and 14,174,237 shares issued and 14,157,070 outstanding as of December 31, 2020	14,288	14,174
Additional paid-in capital	42,217,157	41,350,001
Treasury stock 30,786 shares as of March 31, 2021 and 17,167 shares as of December 31, 2020, at cost	(761,265)	(143,111)
Accumulated deficit	(18,155,795)	(20,470,081)
Total The Joint Corp. stockholders' equity	23,314,385	20,750,983
Non-controlling Interest	100	100
Total equity	23,314,485	20,751,083
Total liabilities and stockholders' equity	$ 66,907,559	$ 65,732,843

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parentheticals) (unaudited) - USD ($)	Mar. 31, 2021	Dec. 31, 2020
Deferred revenue from company clinics attributable to VIE	$ 3,045,868	$ 3,000,369
Series A preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Series A preferred stock, shares authorized (in shares)	50,000	50,000
Series A preferred stock, shares issued (in shares)	0	0
Series A preferred stock, shares outstanding (in shares)	0	0
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized (in shares)	20,000,000	20,000,000
Common stock, shares issued (in shares)	14,288,111	14,174,237
Common stock, shares outstanding (in shares)	14,257,325	14,157,070
Treasury stock, shares (in shares)	30,786	17,167
Variable Interest Entity, Primary Beneficiary
Deferred revenue from company clinics attributable to VIE	$ 2,700,000	$ 2,600,000

Condensed Consolidated Income S

Condensed Consolidated Income Statements (unaudited) - USD ($)	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Revenues:
Total revenues	$ 17,547,965	$ 13,644,486
Cost of revenues:
Total cost of revenues	1,765,317	1,486,155
Selling and marketing expenses	2,489,279	2,055,289
Depreciation and amortization	1,169,866	654,249
General and administrative expenses	10,087,060	8,694,250
Total selling, general and administrative expenses	13,746,205	11,403,788
Net loss on disposition or impairment	64,767	1,193
Income from operations	1,971,676	753,350
Other expense, net	(21,537)	(4,337)
Income before income tax benefit	1,950,139	749,013
Income tax benefit	(364,148)	(65,934)
Net income and comprehensive income	2,314,287	814,947
Less: income attributable to the non-controlling interest	0	0
Net income attributable to The Joint Corp. stockholders	$ 2,314,287	$ 814,947
Earnings per share:
Basic earnings per share (in dollars per share)	$ 0.16	$ 0.06
Diluted earnings per share (in dollars per share)	$ 0.16	$ 0.06
Basic weighted average shares (in shares)	14,178,542	13,890,673
Diluted weighted average shares (in shares)	14,854,809	14,483,584
Revenues from company-owned or managed clinics
Revenues:
Total revenues	$ 9,470,860	$ 7,294,295
Royalty fees
Revenues:
Total revenues	4,769,246	3,718,230
Franchise fees/Franchise and regional development cost of revenues
Revenues:
Total revenues	695,427	512,751
Cost of revenues:
Cost of revenues	1,624,572	1,417,491
Advertising fund revenue
Revenues:
Total revenues	1,374,741	1,057,618
Software fees/IT cost of revenues
Revenues:
Total revenues	760,537	645,725
Cost of revenues:
Cost of revenues	140,745	68,664
Regional developer fees
Revenues:
Total revenues	217,956	207,642
Other revenues
Revenues:
Total revenues	$ 259,198	$ 208,225

Condensed Consolidated Statemen

Condensed Consolidated Statements of Changes in Stockholders' Equity (unaudited) - USD ($)	Total	Common Stock	Additional Paid In Capital	Treasury Stock	Accumulated Deficit	Total The Joint Corp. stockholders' equity	Non-controlling interest
Balance, beginning at Dec. 31, 2019	$ 5,720,500	$ 13,899	$ 39,454,937	$ (111,041)	$ (33,637,395)	$ 5,720,400	$ 100
Balance, beginning (in shares) at Dec. 31, 2019		13,898,694		(15,762)
Stockholders' Equity [Roll Forward]
Stock-based compensation expense	250,392		250,392			250,392
Issuance of restricted stock	0	$ 16	(16)
Issuance of vested restricted stock (in shares)		15,578
Exercise of stock options	140,899	$ 35	140,864			140,899
Exercise of stock options (in shares)		35,500
Net income	814,947				814,947	814,947
Balance, ending at Mar. 31, 2020	6,922,964	$ 13,950	39,846,177	$ (114,815)	(32,822,448)	6,922,864	100
Balance, ending (in shares) at Mar. 31, 2020		13,949,772		(16,013)
Balance, beginning at Dec. 31, 2020	20,751,083	$ 14,174	41,350,001	$ (143,111)	(20,470,081)	20,750,983	100
Balance, beginning (in shares) at Dec. 31, 2020		14,174,237		(17,167)
Stockholders' Equity [Roll Forward]
Stock-based compensation expense	246,494		246,494			246,494
Issuance of restricted stock	0	$ 8	(8)
Issuance of vested restricted stock (in shares)		7,879
Exercise of stock options	620,776	$ 106	620,670			620,776
Exercise of stock options (in shares)		105,995
Purchases of treasury stock under employee stock plans	(618,154)			$ (618,154)		(618,154)
Purchase of treasury stock under employee stock plans (in shares)				13,619
Net income	2,314,287				2,314,287	2,314,287
Balance, ending at Mar. 31, 2021	$ 23,314,485	$ 14,288	$ 42,217,157	$ (761,265)	$ (18,155,795)	$ 23,314,385	$ 100
Balance, ending (in shares) at Mar. 31, 2021		14,288,111		(30,786)

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Cash Flows (unaudited) - USD ($)	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Cash flows from operating activities:
Net income	$ 2,314,287	$ 814,947
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	1,169,866	654,249
Net loss on disposition or impairment (non-cash portion)	99,022	1,193
Net franchise fees recognized upon termination of franchise agreements	(69,702)	(14,862)
Deferred income taxes	(418,810)	(34,406)
Stock based compensation expense	246,494	250,392
Changes in operating assets and liabilities:
Accounts receivable	(442,008)	809,563
Prepaid expenses and other current assets	(384,377)	(18,073)
Deferred franchise costs	(204,112)	(104,483)
Deposits and other assets	(3,313)	(4,378)
Accounts payable	(443,463)	(80,682)
Accrued expenses	60,493	205,601
Payroll liabilities	(217,020)	(1,727,021)
Deferred revenue	329,383	339,523
Other liabilities	234,708	380,259
Net cash provided by operating activities	2,271,448	1,471,822
Cash flows from investing activities:
Purchase of property and equipment	(951,641)	(1,261,213)
Reacquisition and termination of regional developer rights	(1,388,700)	0
Payments received on notes receivable	0	39,720
Net cash used in investing activities	(2,340,341)	(1,221,493)
Cash flows from financing activities:
Payments of finance lease obligation	(18,238)	(7,214)
Purchases of treasury stock under employee stock plans	(618,154)	(3,774)
Proceeds from exercise of stock options	620,776	140,899
Proceeds from the Credit Agreement, net of related fees	0	1,947,352
Repayment of debt under the Paycheck Protection Program	(2,727,970)	0
Net cash (used in) provided by financing activities	(2,743,586)	2,077,263
(Decrease) increase in cash, cash equivalents and restricted cash	(2,812,479)	2,327,592
Cash, cash equivalents and restricted cash, beginning of period	20,819,629	8,641,877
Cash, cash equivalents and restricted cash, end of period	18,007,150	10,969,469
Reconciliation of cash, cash equivalents and restricted cash:
Cash and cash equivalents and restricted cash	18,007,150	10,969,469
Income taxes	0	0
Cash paid for interest	$ 35,533	$ 0

Supplemental Disclosure of Non-

Supplemental Disclosure of Non-cash Activity	3 Months Ended
	Mar. 31, 2021
Supplemental Cash Flow Information [Abstract]
Supplemental Disclosure of Non-cash Activity	Supplemental disclosure of non-cash activity: As of March 31, 2021, accounts payable include property and equipment purchases of $36,618. As of December 31, 2020, accounts payable and accrued expenses include property and equipment purchases of $126,239, and $163,434, respectively. In connection with the Company’s reacquisition and termination of regional developer rights during the three months ended March 31, 2021, the Company had deferred revenue of $35,679 representing fees collected upon the execution of the regional developer agreement. The Company netted this amount against the aggregate purchase price.

Nature of Operations and Summar

Nature of Operations and Summary of Significant Accounting Policies	3 Months Ended
	Mar. 31, 2021
Accounting Policies [Abstract]
Nature of Operations and Summary of Significant Accounting Policies	Nature of Operations and Summary of Significant Accounting Policies Basis of Presentation These unaudited financial statements represent the condensed consolidated financial statements of The Joint Corp. (“The Joint”), its variable interest entities (“VIEs”), and its wholly owned subsidiary, The Joint Corporate Unit No. 1, LLC (collectively, the “Company”). The accompanying unaudited condensed consolidated interim financial statements reflect all adjustments which are necessary for a fair statement of the financial position, results of operations and cash flows for the periods presented in accordance with U.S. generally accepted accounting principles (" GAAP"). Such unaudited interim condensed consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q pursuant to the rules and regulations of the SEC. Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to such rules and regulations. These unaudited condensed consolidated financial statements should be read in conjunction with The Joint Corp. and Subsidiary and Affiliates consolidated financial statements and the notes thereto as set forth in The Joint’s Form 10-K, which included all disclosures required by U.S. GAAP. The results of operations for the periods ended March 31, 2021 and 2020 are not necessarily indicative of expected operating results for the full year. The information presented throughout the document as of and for the periods ended March 31, 2021 and 2020 is unaudited. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amount of assets, liabilities, revenue, costs, expenses and other (expenses) income that are reported in the condensed consolidated financial statements and accompanying disclosures. These estimates are based on management’s best knowledge of current events, historical experience, actions that the Company may undertake in the future and on various other assumptions that are believed to be reasonable under the circumstances. As a result, actual results may be different from these estimates. For a discussion of significant estimates and judgments made in recognizing revenue, accounting for leases, and accounting for income taxes, see Note 1, "Nature of Operations and Summary of Significant Accounting Policies". Principles of Consolidation The accompanying condensed consolidated financial statements include the accounts of The Joint and its wholly owned subsidiary, The Joint Corporate Unit No. 1, LLC, which was dormant for all periods presented. The Company consolidates VIEs in which the Company is the primary beneficiary in accordance with Accounting Standards Codification 810, Consolidations (“ASC 810”). Non-controlling interests represent third-party equity ownership interests in VIEs. All significant inter-affiliate accounts and transactions between The Joint and its VIEs have been eliminated in consolidation. Comprehensive Income Net income and comprehensive income are the same for the three months ended March 31, 2021 and 2020. Nature of Operations The Joint Corp., a Delaware corporation, was formed on March 10, 2010 for the principal purpose of franchising, developing, selling regional developer rights, supporting the operations of franchised chiropractic clinics, and operating and managing corporate chiropractic clinics at locations throughout the United States of America. The franchising of chiropractic clinics is regulated by the Federal Trade Commission and various state authorities. The following table summarizes the number of clinics in operation under franchise agreements and as company-owned or managed clinics for the three months ended March 31, 2021 and 2020: Three Months Ended Franchised clinics: 2021 2020 Clinics open at beginning of period 515 453 Opened during the period 12 16 Sold during the period — — Closed during the period — — Clinics in operation at the end of the period 527 469 Three Months Ended Company-owned or managed clinics: 2021 2020 Clinics open at beginning of period 64 60 Opened during the period 1 1 Acquired during the period — — Closed during the period — — Clinics in operation at the end of the period 65 61 Total clinics in operation at the end of the period 592 530 Clinic licenses sold but not yet developed 223 176 Executed letters of intent for future clinic licenses 37 36 Variable Interest Entities An entity deemed to be the primary beneficiary of a VIE is required to consolidate the VIE in its financial statements. An entity is deemed to be the primary beneficiary of a VIE if it has both of the following characteristics: (a) the power to direct the activities of a VIE that most significantly impact the VIE's economic performance and (b) the obligation to absorb the majority of losses of the VIE or the right to receive the majority of benefits from the VIE. Certain states prohibit the “corporate practice of medicine,” which restricts business corporations from practicing chiropractic care through the direct employment of chiropractic doctors or from exercising control over clinical decisions by chiropractic doctors. In states which prohibit the corporate practice of medicine, the Company typically enters into long-term management agreements with professional corporations ("PCs") that are owned by licensed chiropractic doctors, which, in turn, employ or contract with doctors who provide professional chiropractic care in its clinics. Under these management agreements with PCs, the Company provides, on an exclusive basis, all non-clinical services of the chiropractic practice. Such PCs are VIEs, as fees paid by the PCs to the Company as its management service provider are considered variable interests because they are liabilities on the PC’s books and the fees do not meet all the following criteria: 1) The fees are compensation for services provided and are commensurate with the level of effort required to provide those services; 2) The decision maker or service provider does not hold other interests in the VIE that individually, or in the aggregate, would absorb more than an insignificant amount of the VIE’s expected losses or receive more than an insignificant amount of the VIE’s expected residual returns; 3) The service arrangement includes only terms, conditions, or amounts that are customarily present in arrangements for similar services negotiated at arm’s length. The Company assessed the governance structure and operating procedures of the PCs and determined that the Company has the power to control certain significant non-clinical activities of the PCs, as defined by ASC 810. Therefore, the Company is the primary beneficiary of the VIEs, and per ASC 810, must consolidate the VIEs. The carrying amount of VIE assets and liabilities are immaterial as of March 31, 2021, and December 31, 2020, except for amounts collected in advance for membership and wellness packages, which are recorded as deferred revenue. The VIE's deferred revenue liability balance as of March 31, 2021, and December 31, 2020 was $2.7 million and $2.6 million, respectively. Cash and Cash Equivalents The Company considers all highly liquid instruments purchased with an original maturity of three months or less to be cash equivalents. The Company continually monitors its positions with, and credit quality of, the financial institutions with which it invests. As of the balance sheet date and periodically throughout the period, the Company has maintained balances in various operating accounts in excess of federally insured limits. The Company has invested substantially all its cash in short-term bank deposits. The Company had no cash equivalents as of March 31, 2021 and December 31, 2020. Restricted Cash Restricted cash relates to cash that franchisees and company-owned or managed clinics contribute to the Company’s National Marketing Fund and cash that franchisees provide to various voluntary regional Co-Op Marketing Funds. Cash contributed by franchisees to the National Marketing Fund is to be used in accordance with the Company’s Franchise Disclosure Document with a focus on regional and national marketing and advertising. While such cash balance is not legally-segregated and restricted as to withdrawal or usage, the Company's accounting policy is to classify these funds as restricted cash. Accounts Receivable Accounts receivable primarily represent amounts due from franchisees for royalty fees. The Company considers a reserve for doubtful accounts based on the creditworthiness of the entity. The provision for uncollectible amounts is continually reviewed and adjusted to maintain the allowance at a level considered adequate to cover future losses. The allowance is management’s best estimate of uncollectible amounts and is determined based on specific identification and historical performance that the Company tracks on an ongoing basis. Actual losses ultimately could differ materially in the near term from the amounts estimated in determining the allowance. As of March 31, 2021 and December 31, 2020, the Company had an allowance for doubtful accounts of $0. Deferred Franchise Costs and Regional Development Costs Deferred franchise and regional development costs represent commissions that are direct and incremental to the Company and are paid in conjunction with the sale of a franchise license or regional development rights. These costs are recognized as an expense, in franchise and regional development cost of revenues when the respective revenue is recognized, which is generally over the term of the related franchise or regional development agreement. Property and Equipment Property and equipment are stated at cost or for property acquired as part of franchise acquisitions at fair value at the date of closing. Depreciation is computed using the straight-line method over estimated useful lives of three Maintenance and repairs are charged to expense as incurred; major renewals and improvements are capitalized. When items of property or equipment are sold or retired, the related cost and accumulated depreciation are removed from the accounts and any gain or loss is included in income. Capitalized Software The Company capitalizes certain software development costs. These capitalized costs are primarily related to software used by clinics for operations and by the Company for the management of operations. Costs incurred in the preliminary stages of development are expensed as incurred. Once an application has reached the development stage, internal and external costs, if direct, are capitalized as assets in progress until the software is substantially complete and ready for its intended use. Capitalization ceases upon completion of all substantial testing. The Company also capitalizes costs related to specific upgrades and enhancements when it is probable the expenditures will result in additional functionality. Software developed is recorded as part of property and equipment. Maintenance and training costs are expensed as incurred. Internal use software is amortized on a straight-line basis over its estimated useful life, which is generally three The FASB issued in August 2018 an update to accounting guidance related to implementation costs incurred in a cloud computing arrangement that is a service contract. The update aligns the requirements for capitalizing implementation costs incurred under such arrangements with the requirements for capitalizing costs incurred to develop or obtain internal-use software. Accordingly, implementation costs incurred in connection with a cloud computing arrangement that is a service contract are capitalized and such costs were included in prepaid expenses in the Company’s condensed consolidated balance sheet. Leases The Company leases property and equipment under operating and finance leases. The Company leases its corporate office space and the space for each of the company-owned or managed clinics in the portfolio. The Company recognizes a right-of-use ("ROU") asset and lease liability for all leases. Determining the lease term and amount of lease payments to include in the calculation of the ROU asset and lease liability for leases containing options requires the use of judgment to determine whether the exercise of an option is reasonably certain and if the optional period and payments should be included in the calculation of the associated ROU asset and liability. In making this determination, all relevant economic factors are considered that would compel the Company to exercise or not exercise an option. When available, the Company uses the rate implicit in the lease to discount lease payments; however, the rate implicit in the lease is not readily determinable for substantially all of its leases. In such cases, the Company estimates its incremental borrowing rate as the interest rate it would pay to borrow an amount equal to the lease payments over a similar term, with similar collateral as in the lease, and in a similar economic environment. The Company estimates these rates using available evidence such as rates imposed by third-party lenders to the Company in recent financings or observable risk-free interest rate and credit spreads for commercial debt of a similar duration, with credit spreads correlating to the Company’s estimated creditworthiness. For operating leases that include rent holidays and rent escalation clauses, the Company recognizes lease expense on a straight-line basis over the lease term from the date it takes possession of the leased property. Pre-opening costs are recorded as incurred in general and administrative expenses. The Company records the straight-line lease expense and any contingent rent, if applicable, in general and administrative expenses on the condensed consolidated income statements. Many of the Company’s leases also require it to pay real estate taxes, common area maintenance costs and other occupancy costs which are also included in general and administrative expenses on the condensed consolidated income statements. Intangible Assets Intangible assets consist primarily of re-acquired franchise and regional developer rights and customer relationships. The Company amortizes the fair value of re-acquired franchise rights over the remaining contractual terms of the re-acquired franchise rights at the time of the acquisition, which generally range from one one two Goodwill Goodwill consists of the excess of the purchase price over the fair value of tangible and identifiable intangible assets acquired in the acquisitions of franchises. Goodwill and intangible assets deemed to have indefinite lives are not amortized but are subject to annual impairment tests. As required, the Company performs an annual impairment test of goodwill as of the first day of the fourth quarter or more frequently if events or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying value. Long-Lived Assets The Company reviews its long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recovered. The Company looks primarily to estimated undiscounted future cash flows in its assessment of whether or not long-lived assets are recoverable. The Company records an impairment loss when the carrying amount of the asset is not recoverable and exceeds its fair value. During the three months ended March 31, 2021, certain operating lease right-of-use assets related to closed clinics with a total carrying amount of $0.5 million was written down to its fair value of $0.4 million. As a result, the Company recorded a noncash impairment loss of approximately $0.1 million during the three months ended March 31, 2021. No impairments of long-lived assets were recorded for the three months ended March 31, 2020. Advertising Fund The Company has established an advertising fund for national or regional marketing and advertising of services offered by its clinics. The monthly marketing fee is 2% of clinic sales. The Company segregates the marketing funds collected which are included in restricted cash on its consolidated balance sheets. As amounts are expended from the fund, the Company recognizes a related expense. Co-Op Marketing Funds Some franchises have established regional Co-Ops for advertising within their local and regional markets. The Company maintains a custodial relationship under which the marketing funds collected are segregated and used for the purposes specified by the Co-Ops’ officers. The marketing funds are included in restricted cash on the Company’s condensed consolidated balance sheets. Revenue Recognition The Company generates revenue primarily through its company-owned and managed clinics, royalties, franchise fees, advertising fund contributions, IT related income and computer software fees from our franchisees. Revenues from Company-Owned or Managed Clinics. The Company earns revenues from clinics that it owns and operates or manages throughout the United States. In those states where the Company owns and operates or manages the clinic, revenues are recognized when services are performed. The Company offers a variety of membership and wellness packages which feature discounted pricing as compared with its single-visit pricing. Amounts collected in advance for membership and wellness packages are recorded as deferred revenue and recognized when the service is performed. Any unused visits associated with monthly memberships are recognized on a month-to-month basis. The Company recognizes a contract liability (or a deferred revenue liability) related to the prepaid treatment plans for which the Company has an ongoing performance obligation. The Company recognizes this contract liability, and recognizes revenue, as the patient consumes his or her visits related to the package and the Company transfers its services. Based on a historical lag analysis and an evaluation of legal obligation by jurisdiction, the Company concluded that any remaining contract liability that exists after 12 to 24 months from transaction date will be deemed breakage. Breakage revenue is recognized only at that point, when the likelihood of the patient exercising his or her remaining rights becomes remote. Royalties and Advertising Fund Revenue. The Company collects royalties from its franchisees, as stipulated in the franchise agreement, equal to 7% of gross sales and a marketing and advertising fee currently equal to 2% of gross sales. Royalties, including franchisee contributions to advertising funds, are calculated as a percentage of clinic sales over the term of the franchise agreement. The revenue accounting standard provides an exception for the recognition of sales-based royalties promised in exchange for a license (which generally requires reporting entity to estimate the amount of variable consideration to which it will be entitled in the transaction price). As the franchise agreement royalties, inclusive of advertising fund contributions, represent sales-based royalties that are related entirely to the Company’s performance obligation under the franchise agreement, such royalties are recognized as franchisee clinic level sales occur. Royalties are collected semi-monthly, two working days after each sales period has ended. Franchise Fees. The Company requires the entire non-refundable initial franchise fee to be paid upon execution of a franchise agreement, which typically has an initial term of ten years. Initial franchise fees are recognized ratably on a straight-line basis over the term of the franchise agreement. The Company’s services under the franchise agreement include: training of franchisees and staff, site selection, construction/vendor management and ongoing operations support. The Company provides no financing to franchisees and offers no guarantees on their behalf. The services provided by the Company are highly interrelated with the franchise license and as such are considered to represent a single performance obligation. Software Fees. The Company collects a monthly fee from its franchisees for use of its proprietary chiropractic software, computer support, and internet services support. These fees are recognized ratably on a straight-line basis over the term of the respective franchise agreement. Regional Developer Fees. The Company has a regional developer program where regional developers are granted exclusive geographical territory and commit to a minimum development obligation within that defined territory. Regional developer fees paid to the Company are non-refundable and are recognized as revenue ratably on a straight-line basis over the term of the regional developer agreement, which is considered to begin upon the execution of the agreement. The Company’s services under regional developer agreements include site selection, grand opening support for the clinics, sales support for identification of qualified franchisees, general operational support and marketing support to advertise for ownership opportunities. The services provided by the Company are highly interrelated with the development of the territory and the resulting franchise licenses sold by the regional developer and as such are considered to represent a single performance obligation. In addition, regional developers receive fees which are funded by the initial franchise fees collected from franchisees upon the sale of franchises within their exclusive geographical territory and a royalty of 3% of sales generated by franchised clinics in their exclusive geographical territory. Fees related to the sale of franchises within their exclusive geographical territory are initially deferred as deferred franchise costs and are recognized as an expense in franchise cost of revenues when the respective revenue is recognized, which is generally over the term of the related franchise agreement. Royalties of 3% of sales generated by franchised clinics in their regions are also recognized as franchise cost of revenues as franchisee clinic level sales occur, which is funded by the 7% royalties collected from the franchisees in their regions. Certain regional developer agreements result in the regional developer acquiring the rights to existing royalty streams from clinics already open in the respective territory. In those instances, the revenue associated from the sale of the royalty stream is recognized over the remaining life of the respective franchise agreements. The Company entered into one regional developer agreement during the three months ended March 31, 2020 for which it received approximately $201,000. This fee was deferred as of the transaction date and is recognized as revenue ratably on a straight-line basis over the term of the regional developer agreement, which is considered to begin upon the execution of the agreement. The company did not enter into any new regional developer agreements during the three months ended March 31, 2021. Advertising Costs Advertising costs are advertising and marketing expenses incurred by the Company, primarily through advertising funds. The Company expenses production costs of commercial advertising upon first airing and expenses the costs of communicating the advertising in the period in which the advertising occurs. Advertising expenses were $850,656 and $658,673 for the three months ended March 31, 2021, and 2020, respectively. Income Taxes Income tax expense during interim periods is based on applying an estimated annual effective income tax rate to year-to-date pre-tax income, plus any significant unusual or infrequently occurring items which are recorded in the interim period. The computation of the annual estimated effective tax rate at each interim period requires certain estimates and significant judgment including, but not limited to, the expected pre-tax income for the year and permanent differences. The accounting estimates used to compute the provision for income taxes may change as new events occur, more experience is obtained, additional information becomes known or as the tax environment changes. Earnings per Common Share Basic earnings per common share is computed by dividing the net income by the weighted-average number of common shares outstanding during the period. Diluted earnings per common share is computed by giving effect to all potentially dilutive common shares including restricted stock and stock options. Three Months Ended 2021 2020 Net Income $ 2,314,287 $ 814,947 Weighted average common shares outstanding - basic 14,178,542 13,890,673 Effect of dilutive securities: Unvested restricted stock and stock options 676,267 592,911 Weighted average common shares outstanding - diluted 14,854,809 14,483,584 Basic earnings per share $ 0.16 $ 0.06 Diluted earnings per share $ 0.16 $ 0.06 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 Weighted average potentially dilutive securities: 2021 2020 Unvested restricted stock 1,698 — Stock options 14,801 101,692 Stock-Based Compensation The Company accounts for share-based payments by recognizing compensation expense based upon the estimated fair value of the awards on the date of grant. The Company determines the estimated grant-date fair value of restricted shares using the closing price on the date of the grant and the grant-date fair value of stock options using the Black-Scholes-Merton model. In order to calculate the fair value of the options, certain assumptions are made regarding the components of the model, including risk-free interest rate, volatility, expected dividend yield and expected option life. Changes to the assumptions could cause significant adjustments to the valuation. The Company recognizes compensation costs ratably over the period of service using the straight-line method. Forfeitures are estimated based on historical and forecasted turnover, which is approximately 5%. Retirement Benefit Plan Employees of the Company are eligible to participate in a defined contribution retirement plan, the Joint Corp. 401(k). Retirement Plan (“401(k) Plan”), under Section 401(k) of the Internal Revenue Code. Under the 401(k) Plan, employees may contribute their eligible compensation, not to exceed the annual limits set by the IRS. The 401(k) Plan allows the Company to match participants’ contributions in an amount determined at the sole discretion of the Company. Use of Estimates The preparation of the condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the condensed consolidated financial statements and accompanying notes. Actual results could differ from those estimates. Items subject to significant estimates and assumptions include the allowance for doubtful accounts, share-based compensation arrangements, fair value of stock options, useful lives and realizability of long-lived assets, classification of deferred revenue and revenue recognition related to breakage, classification of deferred franchise costs, calculation of ROU assets and liabilities related to leases, realizability of deferred tax assets, impairment of goodwill, intangible assets, and other long-lived assets, and purchase price allocations and related valuations. Recent Accounting Pronouncements Not Yet Adopted In June 2016, the Financial Accounting Standards Board issued ASU No. 2016-13, "Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments" and subsequent amendments to the initial guidance: ASU 2018-19, ASU 2019-04 and ASU 2019-05 (collectively, “Topic 326”). Topic 326 requires measurement and recognition of expected credit losses for financial assets held. Topic 326 becomes effective on January 1, 2023 for the Company. Early adoption is permitted. The Company is currently evaluating the potential impact of Topic 326 on the Company’s consolidated financial statements.

Revenue Disclosures

Revenue Disclosures	3 Months Ended
	Mar. 31, 2021
Revenue from Contract with Customer [Abstract]
Revenue Disclosures	Revenue Disclosures Company-owned or Managed Clinics The Company earns revenues from clinics that it owns and operates or manages throughout the United States. Revenues are recognized when services are performed. The Company offers a variety of membership and wellness packages which feature discounted pricing as compared with its single-visit pricing. Amounts collected in advance for membership and wellness packages are recorded as deferred revenue and recognized when the service is performed or in accordance with the Company’s breakage policy as discussed in Note 1, Revenue Recognition . Franchising Fees, Royalty Fees, Advertising Fund Revenue, and Software Fees The Company currently franchises its concept across 32 states. The franchise arrangement is documented in the form of a franchise agreement. The franchise arrangement requires the Company to perform various activities to support the brand that do not directly transfer goods and services to the franchisee, but instead represent a single performance obligation, which is the transfer of the franchise license. The intellectual property subject to the franchise license is symbolic intellectual property as it does not have significant standalone functionality, and substantially all of the utility is derived from its association with the Company’s past or ongoing activities. The nature of the Company’s promise in granting the franchise license is to provide the franchisee with access to the brand’s symbolic intellectual property over the term of the license. The services provided by the Company are highly interrelated with the franchise license and as such are considered to represent a single performance obligation. The transaction price in a standard franchise arrangement primarily consists of (a) initial franchise fees; (b) continuing franchise fees (royalties); (c) advertising fees; and (d) software fees. The revenue accounting standard provides an exception for the recognition of sales-based royalties promised in exchange for a license (which generally requires reporting entity to estimate the amount of variable consideration to which it will be entitled in the transaction price). The Company recognizes the primary components of the transaction price as follows: • Franchise fees are recognized as revenue ratably on a straight-line basis over the term of the franchise agreement commencing with the execution of the franchise agreement. As these fees are typically received in cash at or near the beginning of the franchise term, the cash received is initially recorded as a contract liability until recognized as revenue over time. • The Company is entitled to royalties and advertising fees based on a percentage of the franchisee's gross sales as defined in the franchise agreement. Royalty and advertising revenue are recognized when the franchisee's sales occur. Depending on timing within a fiscal period, the recognition of revenue results in either what is considered a contract asset (unbilled receivable) or, once billed, accounts receivable, on the balance sheet. • The Company is entitled to a software fee, which is charged monthly. The Company recognizes revenue related to software fees ratably on a straight-line basis over the term of the franchise agreement. In determining the amount and timing of revenue from contracts with customers, the Company exercises significant judgment with respect to collectability of the amount; however, the timing of recognition does not require significant judgment as it is based on either the franchise term or the reported sales of the franchisee, none of which require estimation. The Company believes its franchising arrangements do not contain a significant financing component. The Company recognizes advertising fees received under franchise agreements as advertising fund revenue. Regional Developer Fees The Company currently utilizes regional developers to assist in the development of the brand across certain geographic territories. The arrangement is documented in the form of a regional developer agreement. The arrangement between the Company and the regional developer requires the Company to perform various activities to support the brand that do not directly transfer goods and services to the regional developer, but instead represent a single performance obligation, which is the transfer of the development rights to the defined geographic region. The intellectual property subject to the development rights is symbolic intellectual property as it does not have significant standalone functionality, and substantially all of the utility is derived from its association with the Company’s past or ongoing activities. The nature of the Company’s promise in granting the development rights is to provide the regional developer with access to the brand’s symbolic intellectual property over the term of the agreement. The services provided by the Company are highly interrelated with the development of the territory and the resulting franchise licenses sold by the regional developer and as such are considered to represent a single performance obligation. The transaction price in a standard regional developer arrangement primarily consists of the initial territory fees. The Company recognizes the regional developer fee as revenue ratably on a straight-line basis over the term of the regional developer agreement commencing with the execution of the regional developer agreement. As these fees are typically received in cash at or near the beginning of the term of the regional developer agreement, the cash received is initially recorded as a contract liability until recognized as revenue over time. Disaggregation of Revenue The Company believes that the captions contained on the condensed consolidated income statements appropriately reflect the disaggregation of its revenue by major type for the three months ended March 31, 2021 and 2020. Other revenues primarily consist of merchant income associated with credit card transactions. Rollforward of Contract Liabilities and Contract Assets Changes in the Company's contract liability for deferred franchise and regional development fees during the three months ended March 31, 2021 were as follows: Deferred Revenue Balance at December 31, 2020 $ 16,504,114 Recognized as revenue during the three months ended March 31, 2021 (939,062) Fees received and deferred during the three months ended March 31, 2021 1,041,265 Balance at March 31, 2021 $ 16,606,317 Changes in the Company's contract assets for deferred franchise and regional development costs during the three months ended March 31, 2021 were as follows: Deferred Franchise and Development Costs Balance at December 31, 2020 $ 5,238,307 Recognized as cost of revenue during the three months ended March 31, 2021 (294,915) Costs incurred and deferred during the three months ended March 31, 2021 434,195 Balance at March 31, 2021 $ 5,377,587 The following table illustrates estimated revenues expected to be recognized in the future related to performance obligations that were unsatisfied (or partially unsatisfied) as of March 31, 2021: Contract liabilities expected to be recognized in Amount 2021 (remainder) $ 2,317,749 2022 2,758,710 2023 2,460,622 2024 1,984,982 2025 1,768,199 Thereafter 5,316,055 Total $ 16,606,317

Property and Equipment

Property and Equipment	3 Months Ended
	Mar. 31, 2021
Property, Plant and Equipment [Abstract]
Property and Equipment	Property and Equipment Property and equipment consist of the following: March 31, December 31, Office and computer equipment $ 2,360,065 $ 2,194,348 Leasehold improvements 8,986,704 8,391,675 Software developed 1,193,007 1,193,007 Finance lease assets 258,253 282,027 12,798,029 12,061,057 Accumulated depreciation and amortization (7,246,632) (6,890,837) 5,551,397 5,170,220 Construction in progress 3,787,441 3,577,149 Property and equipment, net $ 9,338,838 $ 8,747,369 Depreciation expense was $376,465 and $287,076 for the three months ended March 31, 2021 and 2020, respectively. Amortization expense related to finance lease assets was $19,913 and $10,554 for the three months ended March 31, 2021 and 2020, respectively. Construction in progress at March 31, 2021 and December 31, 2020 principally relates to development costs for software to be used by the Company and all clinics for operations, including point-of-sales system.

Fair Value Measurements

Fair Value Measurements	3 Months Ended
	Mar. 31, 2021
Fair Value Disclosures [Abstract]
Fair Value Measurements	Fair Value Measurements The Company’s financial instruments include cash, restricted cash, accounts receivable, notes receivable, accounts payable, accrued expenses and notes payable. The carrying amounts of its financial instruments approximate their fair value due to their short maturities. Authoritative guidance defines fair value as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in an orderly transaction between market participants at the measurement date. The guidance establishes a hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. Observable inputs are inputs that market participants would use in pricing the asset or liability, developed based on market data obtained from sources independent of the Company. Unobservable inputs are inputs that reflect the Company’s assumptions of what market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. The hierarchy is broken down into three levels based on reliability of the inputs as follows: Level 1: Observable inputs such as quoted prices in active markets; Level 2: Inputs, other than the quoted prices in active markets, that are observable either directly or indirectly; and Level 3: Unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions. As of March 31, 2021, and December 31, 2020, the Company did not have any financial instruments that were measured on a recurring basis as Level 1, 2 or 3. The Company’s non-financial assets, which primarily consist of goodwill, intangible assets, property, plant and equipment, and operating lease right-of-use assets, are not required to be measured at fair value on a recurring basis, and instead are reported at their carrying amount. However, on a periodic basis whenever events or changes in circumstances indicate that their carrying amount may not be fully recoverable (and at least annually for goodwill), non-financial assets are assessed for impairment. If the fair value is determined to be lower than the carrying amount, an impairment charge is recorded to write down the asset to its fair value, which is considered Level 3 within the fair value hierarchy. During the three months ended March 31, 2021, certain operating lease right-of-use assets related to closed clinics with a total carrying amount of $0.5 million was written down to its fair value of $0.4 million. Fair value of the Company's operating lease right-of-use assets was determined based on the discounted cash flows of the estimated market rents. As a result, the Company recorded a noncash impairment loss of approximately $0.1 million during the three months ended March 31, 2021. No impairments of long-lived assets were recorded for the three months ended March 31, 2020.

Intangible Assets

Intangible Assets	3 Months Ended
	Mar. 31, 2021
Goodwill and Intangible Assets Disclosure [Abstract]
Intangible Assets	Intangible Assets On January 1, 2021, the Company entered into an agreement under which the Company repurchased the right to develop franchises in various counties in Georgia. The total consideration for the transaction was $1,388,700. The Company carried a deferred revenue balance associated with this transaction of $35,679, representing the unrecognized fee collected upon the execution of the regional developer agreement. The Company accounted for the termination of development rights associated with unsold or undeveloped franchises as a cancellation, and the associated deferred revenue was netted against the aggregate purchase price. The Company recognized the net amount of $1,353,021 as reacquired development rights in January 2021, which is amortized over the remaining original contract period of approximately 13 months. Intangible assets consist of the following: As of March 31, 2021 Gross Carrying Accumulated Net Carrying Intangible assets subject to amortization: Reacquired franchise rights $ 3,246,894 $ (2,270,916) $ 975,978 Customer relationships 1,351,975 (1,199,337) 152,638 Reacquired development rights 4,406,221 (2,090,299) 2,315,922 $ 9,005,090 $ (5,560,552) $ 3,444,538 As of December 31, 2020 Gross Carrying Accumulated Net Carrying Intangible assets subject to amortization: Reacquired franchise rights $ 3,246,894 $ (2,107,730) $ 1,139,164 Customer relationships 1,351,975 (1,130,800) 221,175 Reacquired development rights 3,053,201 (1,548,534) 1,504,667 $ 7,652,070 $ (4,787,064) $ 2,865,006 Amortization expense related to the Company’s intangible assets was $773,488 and $356,619 for the three months ended March 31, 2021 and 2020, respectively. Estimated amortization expense for 2021 and subsequent years is as follows: Amount 2021 (remainder) $ 2,189,279 2022 1,144,739 2023 90,521 2024 19,999 Total $ 3,444,538

Debt

Debt	3 Months Ended
	Mar. 31, 2021
Debt Disclosure [Abstract]
Debt	Debt Credit Agreement On February 28, 2020, the Company entered into a Credit Agreement (the “Credit Agreement”), with JPMorgan Chase Bank, N.A., individually, and as Administrative Agent and Issuing Bank (“JPMorgan Chase” or the “Lender”). The Credit Agreement provides for senior secured credit facilities (the "Credit Facilities") in the amount of $7,500,000, including a $2,000,000 revolver (the "Revolver") and $5,500,000 development line of credit (the "Line of Credit"). The Revolver includes amounts available for letters of credit of up to $1,000,000 and an uncommitted additional amount of $2,500,000. All outstanding principal and interest on the Revolver are due on February 28, 2022. Principal and interest outstanding on the Line of Credit at the end of the first year are converted to a term loan payable in 36 monthly payments with a final maturity date of March 31, 2024. Principal amounts on the Line of Credit borrowed during the second year plus interest thereon which are outstanding at the end of the second year are converted to a second term loan payable in 36 monthly payments with a final maturity date of March 31, 2025. Borrowings under the Credit Facilities bear interest at a rate equal to an applicable margin, which is a one-, three- or six-month reserve adjusted Eurocurrency rate plus 2.00% or, at the election of the Company, an alternative base rate plus 1.00%. The alternative base rate is the greatest of the prime rate, the Federal Reserve Bank of New York rate plus 0.50% and the one-month reserve adjusted Eurocurrency plus 1.00%. Unused portions of the Credit Facilities bear interest at a rate equal to 0.25% per annum. If the current Eurocurrency rate is no longer available or representative, the loan agreement provides a mechanism for replacing that benchmark rate. The Credit Facilities are pre-payable at any time without penalty, other than customary breakage fees, and any voluntary repayments made by the Company would reduce the future required repayment amounts. The interest rate on funds borrowed under the Revolver as of March 31, 2021 was 2.25%. The Credit Facilities contain customary events of default, including but not limited to nonpayment; material inaccuracy of representations and warranties; violations of covenants; certain bankruptcies and liquidations; cross-default to material indebtedness; certain material judgments; and certain fundamental changes such as a merger or sale of substantially all assets (as further defined in the Credit Facilities). The Credit Facilities require the Company to comply with customary affirmative, negative and financial covenants, including minimum interest coverage and maximum net leverage. A breach of any of these operating or financial covenants would result in a default under the Credit Facilities. If an event of default occurs and is continuing, the lenders could elect to declare all amounts then outstanding, together with accrued interest, to be immediately due and payable. The Credit Facilities are collateralized by substantially all of the Company’s assets, including the assets in the Company’s company-owned or managed clinics. The Company intends to use the Revolver for general working capital needs and the Line of Credit for acquiring and developing new chiropractic clinics. On March 18, 2020, the Company drew down $2,000,000 under the Revolver as a precautionary measure in order to further strengthen its cash position and provide financial flexibility in light of the uncertainty in the global markets resulting from the COVID-19 outbreak. As of March 31, 2021, the Company was in compliance with all applicable financial and non-financial covenants under the Credit Agreement and the full $2,000,000 remains outstanding as of March 31, 2021. Paycheck Protection Program Loan On April 10, 2020, the Company received a loan in the amount of approximately $2.7 million from JPMorgan Chase Bank, N.A. (the “Loan”), pursuant to the Paycheck Protection Program (the “PPP”) administered by the United States Small Business Administration. The PPP is part of the Coronavirus Aid, Relief, and Economic Security Act, which provides for forgiveness of up to the full principal amount and accrued interest of qualifying loans guaranteed under the PPP. The Loan was granted pursuant to a Note dated April 9, 2020 issued by the Company. The Note had a maturity date of April 11, 2022 and bore interest at a rate of 0.98% per annum. On March 4, 2021, the Company elected to repay the full principal and accrued interest on the PPP loan of approximately $2.7 million from JPMorgan Chase Bank, N.A. without prepayment penalty, in accordance with the terms of the PPP loan.

Stock-based Compensation

Stock-based Compensation	3 Months Ended
	Mar. 31, 2021
Share-based Payment Arrangement [Abstract]
Stock-Based Compensation	Stock-Based Compensation The Company grants stock-based awards under its 2014 Incentive Stock Plan (the “2014 Plan”) and the 2012 Stock Plan (the “2012 Plan”). The 2014 Plan replaced the 2012 Plan, but the 2012 plan remains in effect for the administration of awards made prior to its replacement by the 2014 Plan. The shares issued as a result of stock-based compensation transactions generally have been funded with the issuance of new shares of the Company’s common stock. The Company may grant the following types of incentive awards under the 2014 Plan: (i) non-qualified stock options; (ii) incentive stock options; (iii) stock appreciation rights; (iv) restricted stock; and (v) restricted stock units. Each award granted under the 2014 Plan is subject to an award agreement that incorporates, as applicable, the exercise price, the term of the award, the periods of restriction, the number of shares to which the award pertains, and such other terms and conditions as the plan committee determines. Awards granted under the 2014 Plan are classified as equity awards, which are recorded in stockholders’ equity in the Company’s consolidated balance sheets. Stock Options The Company’s closing price on the date of grant is the basis of fair value of its common stock used in determining the value of share-based awards. To the extent the value of the Company’s share-based awards involves a measure of volatility, the Company uses available historical volatility of the Company’s common stock over a period of time corresponding to the expected stock option term. The Company uses the simplified method to calculate the expected term of stock option grants to employees as the Company does not have sufficient historical exercise data to provide a reasonable basis upon which to estimate the expected term of stock options granted to employees. Accordingly, the expected life of the options granted is based on the average of the vesting term, which is generally four years and the contractual term, which is generally ten years. The Company will continue to evaluate the appropriateness of utilizing such method. The risk-free interest rate is based on United States Treasury yields in effect at the date of grant for periods corresponding to the expected stock option term. The Company has computed the fair value of all options granted using the Black-Scholes-Merton model during the three months ended March 31, 2021 and 2020, using the following assumptions: Three Month Ended March 31, 2021 2020 Expected volatility 57% 53% Expected dividends None None Expected term (years) 7 7 Risk-free rate 0.97% 0.89% Forfeiture rate 5% 5% The information below summarizes the stock options activity for the three months ended March 31, 2021: Number of Weighted Weighted Outstanding at December 31, 2020 835,601 $ 6.65 6.6 Granted 44,403 45.39 Exercised (105,995) 5.86 Cancelled — — Outstanding at March 31, 2021 774,009 $ 8.98 6.6 Exercisable at March 31, 2021 532,573 $ 5.14 5.8 For the three months ended March 31, 2021 and 2020, stock-based compensation expense for stock options was $150,879 and $147,008, respectively. Restricted Stock Restricted stocks granted to employees generally vest in four equal annual installments. Restricted stocks granted to non-employee directors typically vest in full one year after the date of grant. The information below summarizes the restricted stock activity for the three months ended March 31, 2021: Restricted Stock Awards Shares Weighted Average Non-vested at December 31, 2020 45,595 $ 13.13 Granted 5,095 45.39 Vested (5,981) 13.44 Cancelled — — Non-vested at March 31, 2021 44,709 $ 16.77

Income Taxes

Income Taxes	3 Months Ended
	Mar. 31, 2021
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes During the three months ended March 31, 2021 and 2020, the Company recorded income tax benefit of $364,148 and $65,934, respectively. The Company’s effective tax rate differs from the federal statutory tax rate due to permanent differences and state taxes. The negative effective tax rate for the three months ended March 31, 2021 was primarily driven by excess tax benefits from exercise of stock options. The negative effective tax rate for the three months ended March 31, 2020 was due to a projected tax expense on a projected loss for the year at the time.

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Mar. 31, 2021
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies Leases The table below summarizes the components of lease expense and income statement location for the three months ended March 31, 2021 and 2020: Line Item in the Three Months Ended Three Months Ended March 31, 2020 Finance lease costs: Amortization of assets Depreciation and amortization $ 19,913 $ 10,554 Interest on lease liabilities Other expense, net 2,623 2,283 Total finance lease costs 22,536 12,837 Operating lease costs General and administrative expenses 941,037 $ 849,891 Total lease costs $ 963,573 $ 862,728 Supplemental information and balance sheet location related to leases is as follows: March 31, 2021 December 31, 2020 Operating Leases: Operating lease right-of -use asset $ 13,010,941 $ 11,581,435 Operating lease liability - current portion $ 3,125,921 $ 2,918,140 Operating lease liability - net of current portion 12,246,741 10,632,672 Total operating lease liability $ 15,372,662 $ 13,550,812 Finance Leases: Property and equipment, at cost $ 258,253 $ 282,027 Less accumulated amortization (82,547) (92,549) Property and equipment, net $ 175,706 $ 189,478 Finance lease liability - current portion 75,992 70,507 Finance lease liability - net of current portion 114,887 132,469 Total finance lease liabilities $ 190,879 $ 202,976 Weighted average remaining lease term (in years): Operating leases 4.9 4.7 Finance lease 3.9 4.1 Weighted average discount rate: Operating leases 8.3 % 8.5 % Finance leases 5.3 % 5.3 % Supplemental cash flow information related to leases is as follows: Three Months Ended March 31, 2021 Three Months Ended March 31, 2020 Cash paid for amounts included in measurement of liabilities: Operating cash flows from operating leases $ 979,349 $ 765,093 Operating cash flows from finance leases 2,623 2,283 Financing cash flows from finance leases 18,238 7,214 Non-cash transactions: ROU assets obtained in exchange for lease liabilities Operating lease $ 2,191,809 $ 549,004 Finance lease 6,141 151,396 Maturities of lease liabilities as of March 31, 2021 are as follows: Operating Leases Finance Lease 2021 (remainder) $ 3,154,129 $ 62,585 2022 4,318,485 50,882 2023 3,593,576 27,600 2024 2,996,026 27,600 2025 2,585,425 27,600 Thereafter 2,095,334 11,500 Total lease payments $ 18,742,975 $ 207,767 Less: Imputed interest (3,370,313) (16,888) Total lease obligations 15,372,662 190,879 Less: Current obligations (3,125,921) (75,992) Long-term lease obligation $ 12,246,741 $ 114,887 During the first quarter of 2021, the Company entered into various operating leases that have not yet commenced for spaces to be used by the Company’s new corporate clinics. These leases are expected to result in additional ROU assets and liabilities of approximately $2.2 million. These leases are expected to commence during the second and the third quarter of 2021, with lease terms of five Litigation In the normal course of business, the Company is party to litigation from time to time. The Company maintains insurance to cover certain actions and believes that resolution of such litigation will not have a material adverse effect on the Company.

Segment Reporting

Segment Reporting	3 Months Ended
	Mar. 31, 2021
Segment Reporting [Abstract]
Segment Reporting	Segment Reporting An operating segment is defined as a component of an enterprise for which discrete financial information is available and is reviewed regularly by the Chief Operating Decision Maker (“CODM”) to evaluate performance and make operating decisions. The Company has identified its CODM as the Chief Executive Officer. The Company has two operating business segments and one non-operating business segment. The Corporate Clinics segment is composed of the operating activities of the company-owned or managed clinics. As of March 31, 2021, the Company operated or managed 65 clinics under this segment. The Franchise Operations segment is composed of the operating activities of the franchise business unit. As of March 31, 2021, the franchise system consisted of 527 clinics in operation. Corporate is a non-operating segment that develops and implements strategic initiatives and supports the Company’s two operating business segments by centralizing key administrative functions such as finance and treasury, information technology, insurance and risk management, legal and human resources. Corporate also provides the necessary administrative functions to support the Company as a publicly-traded company. A portion of the expenses incurred by Corporate are allocated to the operating segments. The tables below present financial information for the Company’s two operating business segments. Three Months Ended March 31, Revenues: 2021 2020 Corporate clinics $ 9,470,860 $ 7,294,295 Franchise operations 8,077,105 6,350,191 Total revenues $ 17,547,965 $ 13,644,486 Depreciation and amortization: Corporate clinics 1,093,833 577,543 Franchise operations 342 342 Corporate administration 75,691 76,364 Total depreciation and amortization $ 1,169,866 $ 654,249 Segment operating income: Corporate clinics $ 1,349,057 $ 783,706 Franchise operations 3,847,773 2,844,298 Total segment operating income $ 5,196,830 $ 3,628,004 Reconciliation of total segment operating income to consolidated earnings before income taxes: Total segment operating income $ 5,196,830 $ 3,628,004 Unallocated corporate (3,225,154) (2,874,654) Consolidated income from operations 1,971,676 753,350 Other expense, net 21,537 4,337 Income before income tax benefit $ 1,950,139 $ 749,013 Segment assets: March 31, December 31, Corporate clinics $ 27,788,949 $ 24,928,311 Franchise operations 10,192,465 9,744,375 Total segment assets 37,981,414 34,672,686 Unallocated cash and cash equivalents and restricted cash 18,007,150 20,819,629 Unallocated property and equipment 999,468 1,063,815 Other unallocated assets 9,919,527 9,176,713 Total assets $ 66,907,559 $ 65,732,843

Other Comments

Other Comments	3 Months Ended
	Mar. 31, 2021
Unusual or Infrequent Items, or Both [Abstract]
Other Comments	Other Comments COVID-19 Update The Company's business remained healthy and resilient during the first quarter of 2021 despite the ongoing pandemic. However, the extent to which the COVID-19 pandemic will impact the Company's business and operations will depend on future developments that are highly uncertain. The Company's 2020 revenue and earnings were negatively impacted compared to its pre-COVID-19 pandemic expectations, and the pandemic may have a negative impact on the Company's revenue and net income in

Subsequent Events

Subsequent Events	3 Months Ended
	Mar. 31, 2021
Subsequent Events [Abstract]
Subsequent Events	Subsequent Events On April 1, 2021, the Company entered into an Asset and Franchise Purchase Agreement under which the Company repurchased from the seller two operating franchises in Phoenix, Arizona. The Company operates the franchises as company-owned clinics. The total purchase price for the transaction was $1,925,000, less $29,417 of net deferred revenue resulting in total purchase consideration of $1,895,583. On April 1, 2021, the Company entered into an Asset and Franchise Purchase Agreement under which the Company repurchased from the seller six operating franchises in North Carolina. The Company operates the franchises as company-managed clinics. The total purchase price for the transaction was $2,600,000, less $43,728 of net deferred revenue resulting in total purchase consideration of $2,556,272.

Nature of Operations and Summ_2

Nature of Operations and Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2021
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation These unaudited financial statements represent the condensed consolidated financial statements of The Joint Corp. (“The Joint”), its variable interest entities (“VIEs”), and its wholly owned subsidiary, The Joint Corporate Unit No. 1, LLC (collectively, the “Company”). The accompanying unaudited condensed consolidated interim financial statements reflect all adjustments which are necessary for a fair statement of the financial position, results of operations and cash flows for the periods presented in accordance with U.S. generally accepted accounting principles (" GAAP"). Such unaudited interim condensed consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q pursuant to the rules and regulations of the SEC. Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to such rules and regulations. These unaudited condensed consolidated financial statements should be read in conjunction with The Joint Corp. and Subsidiary and Affiliates consolidated financial statements and the notes thereto as set forth in The Joint’s Form 10-K, which included all disclosures required by U.S. GAAP. The results of operations for the periods ended March 31, 2021 and 2020 are not necessarily indicative of expected operating results for the full year. The information presented throughout the document as of and for the periods ended March 31, 2021 and 2020 is unaudited.
Principles of Consolidation	Principles of ConsolidationThe accompanying condensed consolidated financial statements include the accounts of The Joint and its wholly owned subsidiary, The Joint Corporate Unit No. 1, LLC, which was dormant for all periods presented. The Company consolidates VIEs in which the Company is the primary beneficiary in accordance with Accounting Standards Codification 810, Consolidations (“ASC 810”). Non-controlling interests represent third-party equity ownership interests in VIEs. All significant inter-affiliate accounts and transactions between The Joint and its VIEs have been eliminated in consolidation.
Comprehensive Income	Comprehensive Income Net income and comprehensive income are the same for the three months ended March 31, 2021 and 2020.
Nature of Operations	Nature of OperationsThe Joint Corp., a Delaware corporation, was formed on March 10, 2010 for the principal purpose of franchising, developing, selling regional developer rights, supporting the operations of franchised chiropractic clinics, and operating and managing corporate chiropractic clinics at locations throughout the United States of America. The franchising of chiropractic clinics is regulated by the Federal Trade Commission and various state authorities.
Variable Interest Entities	Variable Interest Entities An entity deemed to be the primary beneficiary of a VIE is required to consolidate the VIE in its financial statements. An entity is deemed to be the primary beneficiary of a VIE if it has both of the following characteristics: (a) the power to direct the activities of a VIE that most significantly impact the VIE's economic performance and (b) the obligation to absorb the majority of losses of the VIE or the right to receive the majority of benefits from the VIE.
Cash and Cash Equivalents	Cash and Cash EquivalentsThe Company considers all highly liquid instruments purchased with an original maturity of three months or less to be cash equivalents. The Company continually monitors its positions with, and credit quality of, the financial institutions with which it invests. As of the balance sheet date and periodically throughout the period, the Company has maintained balances in various operating accounts in excess of federally insured limits. The Company has invested substantially all its cash in short-term bank deposits.
Restricted Cash	Restricted CashRestricted cash relates to cash that franchisees and company-owned or managed clinics contribute to the Company’s National Marketing Fund and cash that franchisees provide to various voluntary regional Co-Op Marketing Funds. Cash contributed by franchisees to the National Marketing Fund is to be used in accordance with the Company’s Franchise Disclosure Document with a focus on regional and national marketing and advertising. While such cash balance is not legally-segregated and restricted as to withdrawal or usage, the Company's accounting policy is to classify these funds as restricted cash.
Accounts Receivable	Accounts ReceivableAccounts receivable primarily represent amounts due from franchisees for royalty fees. The Company considers a reserve for doubtful accounts based on the creditworthiness of the entity. The provision for uncollectible amounts is continually reviewed and adjusted to maintain the allowance at a level considered adequate to cover future losses. The allowance is management’s best estimate of uncollectible amounts and is determined based on specific identification and historical performance that the Company tracks on an ongoing basis. Actual losses ultimately could differ materially in the near term from the amounts estimated in determining the allowance.
Deferred Franchise Costs and Regional Development Costs	Deferred Franchise Costs and Regional Development Costs Deferred franchise and regional development costs represent commissions that are direct and incremental to the Company and are paid in conjunction with the sale of a franchise license or regional development rights. These costs are recognized as an expense, in franchise and regional development cost of revenues when the respective revenue is recognized, which is generally over the term of the related franchise or regional development agreement.
Property and Equipment	Property and Equipment Property and equipment are stated at cost or for property acquired as part of franchise acquisitions at fair value at the date of closing. Depreciation is computed using the straight-line method over estimated useful lives of three Maintenance and repairs are charged to expense as incurred; major renewals and improvements are capitalized. When items of property or equipment are sold or retired, the related cost and accumulated depreciation are removed from the accounts and any gain or loss is included in income.
Capitalized Software	Capitalized Software The Company capitalizes certain software development costs. These capitalized costs are primarily related to software used by clinics for operations and by the Company for the management of operations. Costs incurred in the preliminary stages of development are expensed as incurred. Once an application has reached the development stage, internal and external costs, if direct, are capitalized as assets in progress until the software is substantially complete and ready for its intended use. Capitalization ceases upon completion of all substantial testing. The Company also capitalizes costs related to specific upgrades and enhancements when it is probable the expenditures will result in additional functionality. Software developed is recorded as part of property and equipment. Maintenance and training costs are expensed as incurred. Internal use software is amortized on a straight-line basis over its estimated useful life, which is generally three
Leases	Leases The Company leases property and equipment under operating and finance leases. The Company leases its corporate office space and the space for each of the company-owned or managed clinics in the portfolio. The Company recognizes a right-of-use ("ROU") asset and lease liability for all leases. Determining the lease term and amount of lease payments to include in the calculation of the ROU asset and lease liability for leases containing options requires the use of judgment to determine whether the exercise of an option is reasonably certain and if the optional period and payments should be included in the calculation of the associated ROU asset and liability. In making this determination, all relevant economic factors are considered that would compel the Company to exercise or not exercise an option. When available, the Company uses the rate implicit in the lease to discount lease payments; however, the rate implicit in the lease is not readily determinable for substantially all of its leases. In such cases, the Company estimates its incremental borrowing rate as the interest rate it would pay to borrow an amount equal to the lease payments over a similar term, with similar collateral as in the lease, and in a similar economic environment. The Company estimates these rates using available evidence such as rates imposed by third-party lenders to the Company in recent financings or observable risk-free interest rate and credit spreads for commercial debt of a similar duration, with credit spreads correlating to the Company’s estimated creditworthiness. For operating leases that include rent holidays and rent escalation clauses, the Company recognizes lease expense on a straight-line basis over the lease term from the date it takes possession of the leased property. Pre-opening costs are recorded as incurred in general and administrative expenses. The Company records the straight-line lease expense and any contingent rent, if applicable, in general and administrative expenses on the condensed consolidated income statements. Many of the Company’s leases also require it to pay real estate taxes, common area maintenance costs and other occupancy costs which are also included in general and administrative expenses on the condensed consolidated income statements.
Intangible Assets	Intangible Assets Intangible assets consist primarily of re-acquired franchise and regional developer rights and customer relationships. The Company amortizes the fair value of re-acquired franchise rights over the remaining contractual terms of the re-acquired franchise rights at the time of the acquisition, which generally range from one one two
Goodwill	Goodwill Goodwill consists of the excess of the purchase price over the fair value of tangible and identifiable intangible assets acquired in the acquisitions of franchises. Goodwill and intangible assets deemed to have indefinite lives are not amortized but are subject to annual impairment tests. As required, the Company performs an annual impairment test of goodwill as of the first day of the fourth quarter or more frequently if events or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying value.
Long-Lived Assets	Long-Lived AssetsThe Company reviews its long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recovered. The Company looks primarily to estimated undiscounted future cash flows in its assessment of whether or not long-lived assets are recoverable. The Company records an impairment loss when the carrying amount of the asset is not recoverable and exceeds its fair value.
Advertising Fund	Advertising FundThe Company has established an advertising fund for national or regional marketing and advertising of services offered by its clinics. The monthly marketing fee is 2% of clinic sales. The Company segregates the marketing funds collected which are included in restricted cash on its consolidated balance sheets. As amounts are expended from the fund, the Company recognizes a related expense.
Co-Op Marketing Funds	Co-Op Marketing Funds Some franchises have established regional Co-Ops for advertising within their local and regional markets. The Company maintains a custodial relationship under which the marketing funds collected are segregated and used for the purposes specified by the Co-Ops’ officers. The marketing funds are included in restricted cash on the Company’s condensed consolidated balance sheets.
Revenue Recognition	Revenue Recognition The Company generates revenue primarily through its company-owned and managed clinics, royalties, franchise fees, advertising fund contributions, IT related income and computer software fees from our franchisees. Revenues from Company-Owned or Managed Clinics. The Company earns revenues from clinics that it owns and operates or manages throughout the United States. In those states where the Company owns and operates or manages the clinic, revenues are recognized when services are performed. The Company offers a variety of membership and wellness packages which feature discounted pricing as compared with its single-visit pricing. Amounts collected in advance for membership and wellness packages are recorded as deferred revenue and recognized when the service is performed. Any unused visits associated with monthly memberships are recognized on a month-to-month basis. The Company recognizes a contract liability (or a deferred revenue liability) related to the prepaid treatment plans for which the Company has an ongoing performance obligation. The Company recognizes this contract liability, and recognizes revenue, as the patient consumes his or her visits related to the package and the Company transfers its services. Based on a historical lag analysis and an evaluation of legal obligation by jurisdiction, the Company concluded that any remaining contract liability that exists after 12 to 24 months from transaction date will be deemed breakage. Breakage revenue is recognized only at that point, when the likelihood of the patient exercising his or her remaining rights becomes remote. Royalties and Advertising Fund Revenue. The Company collects royalties from its franchisees, as stipulated in the franchise agreement, equal to 7% of gross sales and a marketing and advertising fee currently equal to 2% of gross sales. Royalties, including franchisee contributions to advertising funds, are calculated as a percentage of clinic sales over the term of the franchise agreement. The revenue accounting standard provides an exception for the recognition of sales-based royalties promised in exchange for a license (which generally requires reporting entity to estimate the amount of variable consideration to which it will be entitled in the transaction price). As the franchise agreement royalties, inclusive of advertising fund contributions, represent sales-based royalties that are related entirely to the Company’s performance obligation under the franchise agreement, such royalties are recognized as franchisee clinic level sales occur. Royalties are collected semi-monthly, two working days after each sales period has ended. Franchise Fees. The Company requires the entire non-refundable initial franchise fee to be paid upon execution of a franchise agreement, which typically has an initial term of ten years. Initial franchise fees are recognized ratably on a straight-line basis over the term of the franchise agreement. The Company’s services under the franchise agreement include: training of franchisees and staff, site selection, construction/vendor management and ongoing operations support. The Company provides no financing to franchisees and offers no guarantees on their behalf. The services provided by the Company are highly interrelated with the franchise license and as such are considered to represent a single performance obligation. Software Fees. The Company collects a monthly fee from its franchisees for use of its proprietary chiropractic software, computer support, and internet services support. These fees are recognized ratably on a straight-line basis over the term of the respective franchise agreement. Regional Developer Fees. The Company has a regional developer program where regional developers are granted exclusive geographical territory and commit to a minimum development obligation within that defined territory. Regional developer fees paid to the Company are non-refundable and are recognized as revenue ratably on a straight-line basis over the term of the regional developer agreement, which is considered to begin upon the execution of the agreement. The Company’s services under regional developer agreements include site selection, grand opening support for the clinics, sales support for identification of qualified franchisees, general operational support and marketing support to advertise for ownership opportunities. The services provided by the Company are highly interrelated with the development of the territory and the resulting franchise licenses sold by the regional developer and as such are considered to represent a single performance obligation. In addition, regional developers receive fees which are funded by the initial franchise fees collected from franchisees upon the sale of franchises within their exclusive geographical territory and a royalty of 3% of sales generated by franchised clinics in their exclusive geographical territory. Fees related to the sale of franchises within their exclusive geographical territory are initially deferred as deferred franchise costs and are recognized as an expense in franchise cost of revenues when the respective revenue is recognized, which is generally over the term of the related franchise agreement. Royalties of 3% of sales generated by franchised clinics in their regions are also recognized as franchise cost of revenues as franchisee clinic level sales occur, which is funded by the 7% royalties collected from the franchisees in their regions. Certain regional developer agreements result in the regional developer acquiring the rights to existing royalty streams from clinics already open in the respective territory. In those instances, the revenue associated from the sale of the royalty stream is recognized over the remaining life of the respective franchise agreements. The Company entered into one regional developer agreement during the three months ended March 31, 2020 for which it received approximately $201,000. This fee was deferred as of the transaction date and is recognized as revenue ratably on a straight-line basis over the term of the regional developer agreement, which is considered to begin upon the execution of the agreement. The company did not enter into any new regional developer agreements during the three months ended March 31, 2021.
Advertising Costs	Advertising Costs Advertising costs are advertising and marketing expenses incurred by the Company, primarily through advertising funds. The Company expenses production costs of commercial advertising upon first airing and expenses the costs of communicating
Income Taxes	Income Taxes Income tax expense during interim periods is based on applying an estimated annual effective income tax rate to year-to-date pre-tax income, plus any significant unusual or infrequently occurring items which are recorded in the interim period. The computation of the annual estimated effective tax rate at each interim period requires certain estimates and significant judgment including, but not limited to, the expected pre-tax income for the year and permanent differences. The accounting estimates used to compute the provision for income taxes may change as new events occur, more experience is obtained, additional information becomes known or as the tax environment changes.
Earnings per Common Share	Earnings per Common Share Basic earnings per common share is computed by dividing the net income by the weighted-average number of common shares outstanding during the period. Diluted earnings per common share is computed by giving effect to all potentially dilutive common shares including restricted stock and stock options.
Stock-Based Compensation	Stock-Based Compensation The Company accounts for share-based payments by recognizing compensation expense based upon the estimated fair value of the awards on the date of grant. The Company determines the estimated grant-date fair value of restricted shares using the closing price on the date of the grant and the grant-date fair value of stock options using the Black-Scholes-Merton model. In order to calculate the fair value of the options, certain assumptions are made regarding the components of the model, including risk-free interest rate, volatility, expected dividend yield and expected option life. Changes to the assumptions could cause significant adjustments to the valuation. The Company recognizes compensation costs ratably over the period of service using the straight-line method. Forfeitures are estimated based on historical and forecasted turnover, which is approximately 5%.
Retirement Benefit Plans	Retirement Benefit Plan Employees of the Company are eligible to participate in a defined contribution retirement plan, the Joint Corp. 401(k). Retirement Plan (“401(k) Plan”), under Section 401(k) of the Internal Revenue Code. Under the 401(k) Plan, employees may contribute their eligible compensation, not to exceed the annual limits set by the IRS. The 401(k) Plan allows the Company to match participants’ contributions in an amount determined at the sole discretion of the Company.
Use of Estimates	Use of Estimates The preparation of the condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the condensed consolidated financial statements and accompanying notes. Actual results could differ from those estimates. Items subject to significant estimates and assumptions include the allowance for doubtful accounts, share-based compensation arrangements, fair value of stock options, useful lives and realizability of long-lived assets, classification of deferred revenue and revenue recognition related to breakage, classification of deferred franchise costs, calculation of ROU assets and liabilities related to leases, realizability of deferred tax assets, impairment of goodwill, intangible assets, and other long-lived assets, and purchase price allocations and related valuations.
Recent Accounting Pronouncements Not Yet Adopted	Recent Accounting Pronouncements Not Yet Adopted In June 2016, the Financial Accounting Standards Board issued ASU No. 2016-13, "Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments" and subsequent amendments to the initial guidance: ASU 2018-19, ASU 2019-04 and ASU 2019-05 (collectively, “Topic 326”). Topic 326 requires measurement and recognition of expected credit losses for financial assets held. Topic 326 becomes effective on January 1, 2023 for the Company. Early adoption is permitted. The Company is currently evaluating the potential impact of Topic 326 on the Company’s consolidated financial statements.

Nature of Operations and Summ_3

Nature of Operations and Summary of Significant Accounting Policies (Tables)	3 Months Ended
	Mar. 31, 2021
Accounting Policies [Abstract]
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 months ended March 31, 2021 and 2020: Three Months Ended Franchised clinics: 2021 2020 Clinics open at beginning of period 515 453 Opened during the period 12 16 Sold during the period — — Closed during the period — — Clinics in operation at the end of the period 527 469 Three Months Ended Company-owned or managed clinics: 2021 2020 Clinics open at beginning of period 64 60 Opened during the period 1 1 Acquired during the period — — Closed during the period — — Clinics in operation at the end of the period 65 61 Total clinics in operation at the end of the period 592 530 Clinic licenses sold but not yet developed 223 176 Executed letters of intent for future clinic licenses 37 36
Schedule of Earnings (Loss) per Common Share	Three Months Ended 2021 2020 Net Income $ 2,314,287 $ 814,947 Weighted average common shares outstanding - basic 14,178,542 13,890,673 Effect of dilutive securities: Unvested restricted stock and stock options 676,267 592,911 Weighted average common shares outstanding - diluted 14,854,809 14,483,584 Basic earnings per share $ 0.16 $ 0.06 Diluted earnings per share $ 0.16 $ 0.06 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 Weighted average potentially dilutive securities: 2021 2020 Unvested restricted stock 1,698 — Stock options 14,801 101,692

Revenue Disclosures (Tables)

Revenue Disclosures (Tables)	3 Months Ended
	Mar. 31, 2021
Revenue from Contract with Customer [Abstract]
Contract with Customer, Asset and Liability	Changes in the Company's contract liability for deferred franchise and regional development fees during the three months ended March 31, 2021 were as follows: Deferred Revenue Balance at December 31, 2020 $ 16,504,114 Recognized as revenue during the three months ended March 31, 2021 (939,062) Fees received and deferred during the three months ended March 31, 2021 1,041,265 Balance at March 31, 2021 $ 16,606,317 Changes in the Company's contract assets for deferred franchise and regional development costs during the three months ended March 31, 2021 were as follows: Deferred Franchise and Development Costs Balance at December 31, 2020 $ 5,238,307 Recognized as cost of revenue during the three months ended March 31, 2021 (294,915) Costs incurred and deferred during the three months ended March 31, 2021 434,195 Balance at March 31, 2021 $ 5,377,587
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction	The following table illustrates estimated revenues expected to be recognized in the future related to performance obligations that were unsatisfied (or partially unsatisfied) as of March 31, 2021: Contract liabilities expected to be recognized in Amount 2021 (remainder) $ 2,317,749 2022 2,758,710 2023 2,460,622 2024 1,984,982 2025 1,768,199 Thereafter 5,316,055 Total $ 16,606,317

Property and Equipment (Tables)

Property and Equipment (Tables)	3 Months Ended
	Mar. 31, 2021
Property, Plant and Equipment [Abstract]
Property, Plant and Equipment	Property and equipment consist of the following: March 31, December 31, Office and computer equipment $ 2,360,065 $ 2,194,348 Leasehold improvements 8,986,704 8,391,675 Software developed 1,193,007 1,193,007 Finance lease assets 258,253 282,027 12,798,029 12,061,057 Accumulated depreciation and amortization (7,246,632) (6,890,837) 5,551,397 5,170,220 Construction in progress 3,787,441 3,577,149 Property and equipment, net $ 9,338,838 $ 8,747,369

Intangible Assets (Tables)

Intangible Assets (Tables)	3 Months Ended
	Mar. 31, 2021
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of Intangible Assets	Intangible assets consist of the following: As of March 31, 2021 Gross Carrying Accumulated Net Carrying Intangible assets subject to amortization: Reacquired franchise rights $ 3,246,894 $ (2,270,916) $ 975,978 Customer relationships 1,351,975 (1,199,337) 152,638 Reacquired development rights 4,406,221 (2,090,299) 2,315,922 $ 9,005,090 $ (5,560,552) $ 3,444,538 As of December 31, 2020 Gross Carrying Accumulated Net Carrying Intangible assets subject to amortization: Reacquired franchise rights $ 3,246,894 $ (2,107,730) $ 1,139,164 Customer relationships 1,351,975 (1,130,800) 221,175 Reacquired development rights 3,053,201 (1,548,534) 1,504,667 $ 7,652,070 $ (4,787,064) $ 2,865,006
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense	Estimated amortization expense for 2021 and subsequent years is as follows: Amount 2021 (remainder) $ 2,189,279 2022 1,144,739 2023 90,521 2024 19,999 Total $ 3,444,538

Stock-based Compensation (Table

Stock-based Compensation (Tables)	3 Months Ended
	Mar. 31, 2021
Share-based Payment Arrangement [Abstract]
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions	The Company has computed the fair value of all options granted using the Black-Scholes-Merton model during the three months ended March 31, 2021 and 2020, using the following assumptions: Three Month Ended March 31, 2021 2020 Expected volatility 57% 53% Expected dividends None None Expected term (years) 7 7 Risk-free rate 0.97% 0.89% Forfeiture rate 5% 5%
Share-based Payment Arrangement, Option, Activity	The information below summarizes the stock options activity for the three months ended March 31, 2021: Number of Weighted Weighted Outstanding at December 31, 2020 835,601 $ 6.65 6.6 Granted 44,403 45.39 Exercised (105,995) 5.86 Cancelled — — Outstanding at March 31, 2021 774,009 $ 8.98 6.6 Exercisable at March 31, 2021 532,573 $ 5.14 5.8
Share-based Payment Arrangement, Restricted Stock and Restricted Stock Unit, Activity	The information below summarizes the restricted stock activity for the three months ended March 31, 2021: Restricted Stock Awards Shares Weighted Average Non-vested at December 31, 2020 45,595 $ 13.13 Granted 5,095 45.39 Vested (5,981) 13.44 Cancelled — — Non-vested at March 31, 2021 44,709 $ 16.77

Commitments and Contingencies (

Commitments and Contingencies (Tables)	3 Months Ended
	Mar. 31, 2021
Commitments and Contingencies Disclosure [Abstract]
Lease, Cost	The table below summarizes the components of lease expense and income statement location for the three months ended March 31, 2021 and 2020: Line Item in the Three Months Ended Three Months Ended March 31, 2020 Finance lease costs: Amortization of assets Depreciation and amortization $ 19,913 $ 10,554 Interest on lease liabilities Other expense, net 2,623 2,283 Total finance lease costs 22,536 12,837 Operating lease costs General and administrative expenses 941,037 $ 849,891 Total lease costs $ 963,573 $ 862,728
Assets And Liabilities, Lessee	Supplemental information and balance sheet location related to leases is as follows: March 31, 2021 December 31, 2020 Operating Leases: Operating lease right-of -use asset $ 13,010,941 $ 11,581,435 Operating lease liability - current portion $ 3,125,921 $ 2,918,140 Operating lease liability - net of current portion 12,246,741 10,632,672 Total operating lease liability $ 15,372,662 $ 13,550,812 Finance Leases: Property and equipment, at cost $ 258,253 $ 282,027 Less accumulated amortization (82,547) (92,549) Property and equipment, net $ 175,706 $ 189,478 Finance lease liability - current portion 75,992 70,507 Finance lease liability - net of current portion 114,887 132,469 Total finance lease liabilities $ 190,879 $ 202,976 Weighted average remaining lease term (in years): Operating leases 4.9 4.7 Finance lease 3.9 4.1 Weighted average discount rate: Operating leases 8.3 % 8.5 % Finance leases 5.3 % 5.3 % Supplemental cash flow information related to leases is as follows: Three Months Ended March 31, 2021 Three Months Ended March 31, 2020 Cash paid for amounts included in measurement of liabilities: Operating cash flows from operating leases $ 979,349 $ 765,093 Operating cash flows from finance leases 2,623 2,283 Financing cash flows from finance leases 18,238 7,214 Non-cash transactions: ROU assets obtained in exchange for lease liabilities Operating lease $ 2,191,809 $ 549,004 Finance lease 6,141 151,396
Lessee, Operating Lease, Liability, Maturity	Maturities of lease liabilities as of March 31, 2021 are as follows: Operating Leases Finance Lease 2021 (remainder) $ 3,154,129 $ 62,585 2022 4,318,485 50,882 2023 3,593,576 27,600 2024 2,996,026 27,600 2025 2,585,425 27,600 Thereafter 2,095,334 11,500 Total lease payments $ 18,742,975 $ 207,767 Less: Imputed interest (3,370,313) (16,888) Total lease obligations 15,372,662 190,879 Less: Current obligations (3,125,921) (75,992) Long-term lease obligation $ 12,246,741 $ 114,887
Finance Lease, Liability, Maturity	Maturities of lease liabilities as of March 31, 2021 are as follows: Operating Leases Finance Lease 2021 (remainder) $ 3,154,129 $ 62,585 2022 4,318,485 50,882 2023 3,593,576 27,600 2024 2,996,026 27,600 2025 2,585,425 27,600 Thereafter 2,095,334 11,500 Total lease payments $ 18,742,975 $ 207,767 Less: Imputed interest (3,370,313) (16,888) Total lease obligations 15,372,662 190,879 Less: Current obligations (3,125,921) (75,992) Long-term lease obligation $ 12,246,741 $ 114,887

Segment Reporting (Tables)

Segment Reporting (Tables)	3 Months Ended
	Mar. 31, 2021
Segment Reporting [Abstract]
Schedule of Segment Reporting Information, by Segment	The tables below present financial information for the Company’s two operating business segments. Three Months Ended March 31, Revenues: 2021 2020 Corporate clinics $ 9,470,860 $ 7,294,295 Franchise operations 8,077,105 6,350,191 Total revenues $ 17,547,965 $ 13,644,486 Depreciation and amortization: Corporate clinics 1,093,833 577,543 Franchise operations 342 342 Corporate administration 75,691 76,364 Total depreciation and amortization $ 1,169,866 $ 654,249 Segment operating income: Corporate clinics $ 1,349,057 $ 783,706 Franchise operations 3,847,773 2,844,298 Total segment operating income $ 5,196,830 $ 3,628,004 Reconciliation of total segment operating income to consolidated earnings before income taxes: Total segment operating income $ 5,196,830 $ 3,628,004 Unallocated corporate (3,225,154) (2,874,654) Consolidated income from operations 1,971,676 753,350 Other expense, net 21,537 4,337 Income before income tax benefit $ 1,950,139 $ 749,013
Reconciliation of Assets from Segment to Consolidated	Segment assets: March 31, December 31, Corporate clinics $ 27,788,949 $ 24,928,311 Franchise operations 10,192,465 9,744,375 Total segment assets 37,981,414 34,672,686 Unallocated cash and cash equivalents and restricted cash 18,007,150 20,819,629 Unallocated property and equipment 999,468 1,063,815 Other unallocated assets 9,919,527 9,176,713 Total assets $ 66,907,559 $ 65,732,843

Supplemental Disclosure of No_2

Supplemental Disclosure of Non-cash Activity (Details) - USD ($)	3 Months Ended	12 Months Ended
	Mar. 31, 2021	Dec. 31, 2020
Net deferred revenue	$ 16,606,317	$ 16,504,114
Stock option proceeds receivable	49,360
License Fee Collection Upon Regional Developer Agreement
Net deferred revenue	35,679
Purchase of Property, Plant and Equipment Included in Accounts Payable
Capital expenditures incurred but not yet paid	$ 36,618	126,239
Purchase of Property, Plant and Equipment Included in Accrued Expenses
Capital expenditures incurred but not yet paid		$ 163,434

Nature of Operations and Summ_4

Nature of Operations and Summary of Significant Accounting Policies - Narrative (Details)	3 Months Ended
	Mar. 31, 2021USD ($)agreement	Mar. 31, 2020USD ($)	Dec. 31, 2020USD ($)
Product Information [Line Items]
Deferred revenue	$ (3,045,868)		$ (3,000,369)
Cash equivalents	0		0
Allowance for doubtful accounts	0		0
Operating lease right-of-use asset	13,010,941		11,581,435
Impairments of long-lived assets	$ 100,000	$ 0
Marketing fee percentage	2.00%
Percentage of franchise royalty sales	7.00%
Initial term of franchise agreement	10 years
Percentage royalty of sales generated by franchised clinics	3.00%
Number of regional developed agreements | agreement	1
Proceeds received from regional developer agreement	$ 201,000
Advertising costs	$ 850,656	$ 658,673
Forecasted turnover percentage	5.00%
Variable Interest Entity, Primary Beneficiary
Product Information [Line Items]
Deferred revenue	$ (2,700,000)		$ (2,600,000)
Reported Value Measurement
Product Information [Line Items]
Operating lease right-of-use asset	500,000
Estimate of Fair Value Measurement
Product Information [Line Items]
Operating lease right-of-use asset	$ 400,000
Minimum
Product Information [Line Items]
Property and equipment, useful life	3 years
Breakage period	12 months
Minimum | Computer Software, Intangible Asset
Product Information [Line Items]
Intangible assets, useful life	3 years
Minimum | Reacquired franchise rights
Product Information [Line Items]
Intangible assets, useful life	1 year
Minimum | Reacquired development rights
Product Information [Line Items]
Intangible assets, useful life	1 year
Minimum | Customer relationships
Product Information [Line Items]
Intangible assets, useful life	2 years
Maximum
Product Information [Line Items]
Property and equipment, useful life	7 years
Breakage period	24 months
Maximum | Computer Software, Intangible Asset
Product Information [Line Items]
Intangible assets, useful life	5 years
Maximum | Reacquired franchise rights
Product Information [Line Items]
Intangible assets, useful life	8 years
Maximum | Reacquired development rights
Product Information [Line Items]
Intangible assets, useful life	7 years
Maximum | Customer relationships
Product Information [Line Items]
Intangible assets, useful life	4 years

Nature of Operations and Summ_5

Nature of Operations and Summary of Significant Accounting Policies - Clinics in Operation Under Franchise Agreements or Company-owned or Managed (Details) - clinic	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Product Information, Franchised Clinics, Company-Owned Or Managed Clinics, Activity [Roll Forward]
Clinics in operation at the end of the period	592	530
Clinic licenses sold but not yet developed	223	176
Executed letters of intent for future clinic licenses	37	36
Franchised Clinics
Product Information, Franchised Clinics, Company-Owned Or Managed Clinics, Activity [Roll Forward]
Clinics open at beginning of period	515	453
Opened during the period	12	16
Sold during the period	0	0
Closed during the period	0	0
Clinics in operation at the end of the period	527	469
Company-owned or Managed Clinics
Product Information, Franchised Clinics, Company-Owned Or Managed Clinics, Activity [Roll Forward]
Clinics open at beginning of period	64	60
Opened during the period	1	1
Acquired during the period	0	0
Closed during the period	0	0
Clinics in operation at the end of the period	65	61

Nature of Operations and Summ_6

Nature of Operations and Summary of Significant Accounting Policies - Earnings (Loss) Per Common Share (Details) - USD ($)	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Product Information [Line Items]
Net income	$ 2,314,287	$ 814,947
Weighted average common shares outstanding - basic (in shares)	14,178,542	13,890,673
Incremental Weighted Average Shares Attributable to Dilutive Effect [Abstract]
Unvested restricted stock and stock options (in shares)	676,267	592,911
Weighted average common shares outstanding - diluted (in shares)	14,854,809	14,483,584
Basic earnings per share (in dollars per share)	$ 0.16	$ 0.06
Diluted earnings per share (in dollars per share)	$ 0.16	$ 0.06
Unvested restricted stock
Incremental Weighted Average Shares Attributable to Dilutive Effect [Abstract]
Weighted average potentially dilutive securities (in shares)	1,698	0
Stock options
Incremental Weighted Average Shares Attributable to Dilutive Effect [Abstract]
Weighted average potentially dilutive securities (in shares)	14,801	101,692

Revenue Disclosures - Narrative

Revenue Disclosures - Narrative (Details)	Mar. 31, 2021state
Revenue from Contract with Customer [Abstract]
Franchises, number of states	32

Revenue Disclosures - Changes i

Revenue Disclosures - Changes in Contract Assets and Contract Liabilities (Details)	3 Months Ended
	Mar. 31, 2021USD ($)
Deferred Revenue short and long-term
Balance, beginning	$ 16,504,114
Recognized as revenue during the period	(939,062)
Fees received and deferred during the period	1,041,265
Balance, ending	16,606,317
Deferred Franchise and Development Costs short and long-term
Balance, beginning	5,238,307
Recognized as cost of revenue during the period	(294,915)
Costs incurred and deferred during the period	434,195
Balance, ending	$ 5,377,587

Revenue Disclosures - Schedule

Revenue Disclosures - Schedule of Contract Liabilities Expected to be Recognized (Details)	Mar. 31, 2021USD ($)
Disaggregation of Revenue [Line Items]
Revenue expected to be recognized, amount	$ 16,606,317
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-04-01
Disaggregation of Revenue [Line Items]
Revenue expected to be recognized, amount	$ 2,317,749
Revenue expected to be recognized, period	9 months
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01
Disaggregation of Revenue [Line Items]
Revenue expected to be recognized, amount	$ 2,758,710
Revenue expected to be recognized, period	1 month
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01
Disaggregation of Revenue [Line Items]
Revenue expected to be recognized, amount	$ 2,460,622
Revenue expected to be recognized, period	1 month
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01
Disaggregation of Revenue [Line Items]
Revenue expected to be recognized, amount	$ 1,984,982
Revenue expected to be recognized, period	1 month
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01
Disaggregation of Revenue [Line Items]
Revenue expected to be recognized, amount	$ 1,768,199
Revenue expected to be recognized, period	1 month
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-01-01
Disaggregation of Revenue [Line Items]
Revenue expected to be recognized, amount	$ 5,316,055
Revenue expected to be recognized, period

Property and Equipment - Summar

Property and Equipment - Summary of Property and Equipment (Details) - USD ($)	Mar. 31, 2021	Dec. 31, 2020
Property, Plant and Equipment [Line Items]
Finance lease assets	$ 258,253	$ 282,027
Property and equipment, net	9,338,838	8,747,369
Construction in progress	3,787,441	3,577,149
Office and computer equipment
Property, Plant and Equipment [Line Items]
Property and equipment, gross	2,360,065	2,194,348
Leasehold improvements
Property, Plant and Equipment [Line Items]
Property and equipment, gross	8,986,704	8,391,675
Software developed
Property, Plant and Equipment [Line Items]
Property and equipment, gross	1,193,007	1,193,007
Finance lease assets
Property, Plant and Equipment [Line Items]
Finance lease assets	258,253	282,027
Property Plant and Equipment, Excluding Construction in Progress
Property, Plant and Equipment [Line Items]
Property and equipment, gross	12,798,029	12,061,057
Accumulated depreciation and amortization	(7,246,632)	(6,890,837)
Property and equipment, net	$ 5,551,397	$ 5,170,220

Property and Equipment - Narrat

Property and Equipment - Narrative (Details) - USD ($)	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Property, Plant and Equipment [Abstract]
Depreciation expense	$ 376,465	$ 287,076
Amortization of assets	$ 19,913	$ 10,554

Fair Value Measurements (Detail

Fair Value Measurements (Details) - USD ($)	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020	Dec. 31, 2020
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Operating lease right-of-use asset	$ 13,010,941		$ 11,581,435
Impairments of long-lived assets	100,000	$ 0
Reported Value Measurement
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Operating lease right-of-use asset	500,000
Estimate of Fair Value Measurement
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Operating lease right-of-use asset	$ 400,000

Intangible Assets - Narrative (

Intangible Assets - Narrative (Details) - USD ($)	Jan. 01, 2021	Jan. 31, 2021	Mar. 31, 2021	Mar. 31, 2020	Dec. 31, 2020
Finite-Lived Intangible Assets [Line Items]
Net deferred revenue			$ 16,606,317		$ 16,504,114
Amortization expense			$ 773,488	$ 356,619
Reacquired franchise rights
Finite-Lived Intangible Assets [Line Items]
Consideration for the transaction	$ 1,388,700	$ 1,353,021
Net deferred revenue	$ 35,679
Remaining amortization period		13 months

Intangible Assets - Intangible

Intangible Assets - Intangible Assets Acquired (Details) - USD ($)	Mar. 31, 2021	Dec. 31, 2020
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 9,005,090	$ 7,652,070
Accumulated Amortization	(5,560,552)	(4,787,064)
Net Carrying Value	3,444,538	2,865,006
Reacquired franchise rights
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	3,246,894	3,246,894
Accumulated Amortization	(2,270,916)	(2,107,730)
Net Carrying Value	975,978	1,139,164
Customer relationships
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	1,351,975	1,351,975
Accumulated Amortization	(1,199,337)	(1,130,800)
Net Carrying Value	152,638	221,175
Reacquired development rights
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	4,406,221	3,053,201
Accumulated Amortization	(2,090,299)	(1,548,534)
Net Carrying Value	$ 2,315,922	$ 1,504,667

Intangible Assets - Estimated A

Intangible Assets - Estimated Amortization Expense (Details) - USD ($)	Mar. 31, 2021	Dec. 31, 2020
Goodwill and Intangible Assets Disclosure [Abstract]
2021 (remainder)	$ 2,189,279
2022	1,144,739
2023	90,521
2024	19,999
Net Carrying Value	$ 3,444,538	$ 2,865,006

Debt (Details)

Debt (Details)	Mar. 18, 2020USD ($)	Feb. 28, 2020USD ($)payment	Mar. 31, 2021USD ($)	Mar. 31, 2020USD ($)	Mar. 04, 2021USD ($)	Apr. 10, 2020USD ($)	Apr. 09, 2020
Debt Instrument [Line Items]
Proceeds from lines of credit			$ 0	$ 1,947,352
Paycheck Protection Program, CARES Act | JPMorgan Chase Bank
Debt Instrument [Line Items]
Debt instrument, face amount					$ 2,700,000	$ 2,700,000
State interest rate percentage							0.98%
Line of Credit | Senior Secured Credit Facilities | Alternative Eurocurrency Base Rate
Debt Instrument [Line Items]
Basis spread on variable rate		1.00%
Line of Credit | Senior Secured Credit Facilities | Secured Debt
Debt Instrument [Line Items]
Maximum borrowing capacity		$ 7,500,000
Maximum borrowing capacity, additional amount		$ 2,500,000
Number of payments | payment		36
Line of Credit | Senior Secured Credit Facilities | Secured Debt | Eurodollar
Debt Instrument [Line Items]
Basis spread on variable rate		2.00%
Line of Credit | Senior Secured Credit Facilities | Secured Debt | Alternative Base Rate
Debt Instrument [Line Items]
Basis spread on variable rate		1.00%
Line of Credit | Senior Secured Credit Facilities | Secured Debt | Prime Rate
Debt Instrument [Line Items]
Basis spread on variable rate		0.50%
Line of Credit | Senior Secured Credit Facilities | Revolving Credit Facility
Debt Instrument [Line Items]
Debt instrument, face amount		$ 2,000,000
Interest rate on funds borrowed under the Revolver			2.25%
Proceeds from lines of credit	$ 2,000,000
Line of Credit | Senior Secured Credit Facilities | Development Line of Credit
Debt Instrument [Line Items]
Debt instrument, face amount		5,500,000
Line of Credit | Senior Secured Credit Facilities | Letter of Credit
Debt Instrument [Line Items]
Maximum borrowing capacity		$ 1,000,000
State interest rate percentage		0.25%

Stock-based Compensation - Narr

Stock-based Compensation - Narrative (Details)	3 Months Ended
	Mar. 31, 2021USD ($)installment	Mar. 31, 2020USD ($)
Stock options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting term	4 years
Contractual term	10 years
Stock-based compensation expense	$ 150,879	$ 147,008
Unvested restricted stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	$ 95,615	$ 103,384
Number of installments | installment	4

Stock-based Compensation - Fair

Stock-based Compensation - Fair Value Assumptions of Options Granted (Details)	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Risk-free rate	0.97%	0.89%
Stock options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected volatility	57.00%	53.00%
Expected term (years)	7 years	7 years
Forfeiture rate	5.00%	5.00%

Stock-based Compensation - Stoc

Stock-based Compensation - Stock Options Activity (Details) - Stock options - $ / shares	3 Months Ended	12 Months Ended
	Mar. 31, 2021	Dec. 31, 2020
Number of Shares
Outstanding, number of shares (in shares)	835,601
Granted, number of shares (in shares)	44,403
Exercised, number of shares (in shares)	(105,995)
Cancelled, number of shares (in shares)	0
Outstanding, number of shares (in shares)	774,009	835,601
Exercisable, number of shares (in shares)	532,573
Weighted Average Exercise Price
Outstanding, weighted average exercise price (in dollars per share)	$ 6.65
Granted, weighted average exercise price (in dollars per share)	45.39
Exercised, weighted average exercise price (in dollars per share)	5.86
Cancelled, weighted average exercise price (in dollars per share)	0
Outstanding, weighted average exercise price (in dollars per share)	8.98	$ 6.65
Exercisable, weighted average exercise price (in dollars per share)	$ 5.14
Outstanding, weighted average remaining contractual life (Year)	6 years 7 months 6 days	6 years 7 months 6 days
Exercisable, weighted average remaining contractual life (Year)	5 years 9 months 18 days

Stock-based Compensation - Rest

Stock-based Compensation - Restricted Stock Activity (Details) - Unvested restricted stock	3 Months Ended
	Mar. 31, 2021$ / sharesshares
Shares
Unvested, beginning (in shares) | shares	45,595
Granted (in shares) | shares	5,095
Awards vested (in shares) | shares	(5,981)
Cancelled (in shares) | shares	0
Unvested, ending (in shares) | shares	44,709
Weighted Average Grant-Date Fair Value per Award
Non-vested, beginning (in dollars per share) | $ / shares	$ 13.13
Granted (in dollar per share) | $ / shares	45.39
Vested (in dollars per share) | $ / shares	13.44
Cancelled (in dollars per share) | $ / shares	0
Non-vested, ending (in dollars per share) | $ / shares	$ 16.77

Income Taxes (Details)

Income Taxes (Details) - USD ($)	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Income Tax Disclosure [Abstract]
Income tax benefit	$ 364,148	$ 65,934

Commitments and Contingencies -

Commitments and Contingencies - Lease Expense and Supplemental Information (Details) - USD ($)	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020	Dec. 31, 2020
Finance lease costs:
Amortization of assets	$ 19,913	$ 10,554
Interest on lease liabilities	2,623	2,283
Total finance lease costs	22,536	12,837
Operating lease costs	941,037	849,891
Total lease costs	963,573	862,728
Operating Lease, Assets and Liabilities, Lessee [Abstract]
Operating lease right-of-use asset	13,010,941		$ 11,581,435
Operating lease liability, current portion	3,125,921		2,918,140
Operating lease liability - net of current portion	12,246,741		10,632,672
Total operating lease liability	15,372,662		13,550,812
Finance Leases:
Property and equipment, at cost	258,253		282,027
Less accumulated amortization	(82,547)		(92,549)
Property and equipment, net	175,706		189,478
Finance lease liability, current portion	75,992		70,507
Finance lease liability, net of current portion	114,887		132,469
Total finance lease liabilities	$ 190,879		$ 202,976
Weighted average remaining lease term (in years):
Operating leases	4 years 10 months 24 days		4 years 8 months 12 days
Finance lease	3 years 10 months 24 days		4 years 1 month 6 days
Weighted average discount rate:
Operating leases	8.30%		8.50%
Finance leases	5.30%		5.30%
Cash paid for amounts included in measurement of liabilities:
Operating cash flows from operating leases	$ 979,349	765,093
Operating cash flows from finance leases	2,623	2,283
Financing cash flows from finance leases	18,238	7,214
Non-cash transactions: ROU assets obtained in exchange for lease liabilities
Operating lease	2,191,809	549,004
Finance lease	$ 6,141	$ 151,396

Commitments and Contingencies_2

Commitments and Contingencies - Maturities of Lease Liabilities (Details) - USD ($)	Mar. 31, 2021	Dec. 31, 2020
Operating Leases
2021 (remainder)	$ 3,154,129
2022	4,318,485
2023	3,593,576
2024	2,996,026
2025	2,585,425
Thereafter	2,095,334
Total lease payments	18,742,975
Less: Imputed interest	(3,370,313)
Total lease obligations	15,372,662	$ 13,550,812
Less: Current obligations	(3,125,921)	(2,918,140)
Long-term lease obligation	12,246,741	10,632,672
Finance Lease
2021 (remainder)	62,585
2022	50,882
2023	27,600
2024	27,600
2025	27,600
Thereafter	11,500
Total lease payments	207,767
Less: Imputed interest	(16,888)
Total lease obligations	190,879	202,976
Less: Current obligations	(75,992)	(70,507)
Long-term lease obligation	$ 114,887	$ 132,469

Commitments and Contingencies_3

Commitments and Contingencies - Narrative (Details) $ in Millions	Mar. 31, 2021USD ($)
Lessee, Lease, Description [Line Items]
Lease not yet commenced liability	$ 2.2
Minimum
Lessee, Lease, Description [Line Items]
Term of leases not yet commenced	5 years
Maximum
Lessee, Lease, Description [Line Items]
Term of leases not yet commenced	10 years

Segment Reporting - Narrative (

Segment Reporting - Narrative (Details)	3 Months Ended
	Mar. 31, 2021segmentclinic	Dec. 31, 2020clinic	Mar. 31, 2020clinic	Dec. 31, 2019clinic
Segment Reporting Information [Line Items]
Number of operating segments | segment	2
Number of non-operating segments | segment	1
Number of Stores	592		530
Company-owned or Managed Clinics
Segment Reporting Information [Line Items]
Number of Stores	65	64	61	60
Franchised Clinics
Segment Reporting Information [Line Items]
Number of Stores	527	515	469	453

Segment Reporting - Segment Rep

Segment Reporting - Segment Reporting Financial Information (Details) - USD ($)	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Segment Reporting Information [Line Items]
Revenues	$ 17,547,965	$ 13,644,486
Depreciation and amortization	1,169,866	654,249
Segment operating income	1,971,676	753,350
Other expense, net	21,537	4,337
Income before income tax benefit	1,950,139	749,013
Operating Segments
Segment Reporting Information [Line Items]
Segment operating income	5,196,830	3,628,004
Unallocated corporate
Segment Reporting Information [Line Items]
Segment operating income	(3,225,154)	(2,874,654)
Corporate clinics
Segment Reporting Information [Line Items]
Revenues	9,470,860	7,294,295
Corporate clinics | Operating Segments
Segment Reporting Information [Line Items]
Depreciation and amortization	1,093,833	577,543
Segment operating income	1,349,057	783,706
Franchise operations
Segment Reporting Information [Line Items]
Revenues	8,077,105	6,350,191
Franchise operations | Operating Segments
Segment Reporting Information [Line Items]
Depreciation and amortization	342	342
Segment operating income	3,847,773	2,844,298
Corporate administration
Segment Reporting Information [Line Items]
Depreciation and amortization	$ 75,691	$ 76,364

Segment Reporting - Segment R_2

Segment Reporting - Segment Reporting Information, Assets (Details) - USD ($)	Mar. 31, 2021	Dec. 31, 2020	Mar. 31, 2020
Segment Reporting Information [Line Items]
Total assets	$ 66,907,559	$ 65,732,843
Unallocated cash and cash equivalents and restricted cash	17,834,526	20,554,258	$ 10,712,846
Operating Segments
Segment Reporting Information [Line Items]
Total assets	37,981,414	34,672,686
Unallocated cash and cash equivalents and restricted cash	18,007,150	20,819,629
Unallocated property and equipment	999,468	1,063,815
Other unallocated assets	9,919,527	9,176,713
Corporate clinics | Operating Segments
Segment Reporting Information [Line Items]
Total assets	27,788,949	24,928,311
Franchise operations | Operating Segments
Segment Reporting Information [Line Items]
Total assets	$ 10,192,465	$ 9,744,375

Subsequent Events (Details)

Subsequent Events (Details)	Apr. 01, 2021USD ($)franchise	Mar. 31, 2021USD ($)	Dec. 31, 2020USD ($)
Subsequent Event [Line Items]
Net deferred revenue		$ 16,606,317	$ 16,504,114
Subsequent Event | Asset and Franchise Purchase Agreement, Phoenix, Arizona
Subsequent Event [Line Items]
Number of operating franchises acquired | franchise	2
Purchase price	$ 1,925,000
Net deferred revenue	29,417
Purchase consideration	$ 1,895,583
Subsequent Event | Asset and Franchise Purchase Agreement, North Carolina
Subsequent Event [Line Items]
Number of operating franchises acquired | franchise	6
Purchase price	$ 2,600,000
Net deferred revenue	43,728
Purchase consideration	$ 2,556,272

Uncategorized Items - jynt-2021

Label	Element	Value
Restricted Cash	us-gaap_RestrictedCash	$ 172,624
Restricted Cash	us-gaap_RestrictedCash	$ 256,623