The Joint (US:JYNT)2025-05-08 22:52Revenue and Income - Total revenues for the three months ended March 31, 2025, were $13,077,590, an increase of 7.3% from $12,184,716 in the same period of 2024[17] - The company reported a net loss from continuing operations of $506,021, compared to a loss of $398,919 in the prior year[17] - Net income for Q1 2025 was $801,430, a decrease of 15.3% compared to $946,979 in Q1 2024[21] - The net income from discontinued operations was $1,307,451, slightly down from $1,345,898 in the same quarter of 2024[17] - The Franchise Operations segment generated total revenue of $13,077,590, an increase of 7.3% from $12,184,716 in the same period of 2024[118] - The Franchise Operations segment reported a segment loss of $506,021 for the three months ended March 31, 2025, compared to a loss of $398,919 in the prior year[118] Expenses - Selling and marketing expenses increased to $3,505,150, compared to $2,237,583 in the previous year, indicating a rise of 57.0%[17] - Stock-based compensation expense for Q1 2025 was $293,941, down from $493,395 in Q1 2024, indicating a reduction of 40.4%[21] - Adjusted General and administrative expenses for the Franchise Operations segment were $6,553,920, a decrease of 3.9% from $6,817,913 in the same period of 2024[118] - The company incurred selling and marketing expenses of $3,505,150, which is a significant increase of 56.8% from $2,237,583 in the same period of 2024[118] Assets and Liabilities - The total liabilities and stockholders' equity amounted to $77,193,993, a decrease from $80,421,458[14] - Cash and cash equivalents at the end of Q1 2025 were $21,918,175, compared to $18,742,884 at the end of Q1 2024, representing a year-over-year increase of 16.1%[21] - The carrying value of assets held for sale as of March 31, 2025, was $34,267,130, down from $36,071,975 as of December 31, 2024[87] - Total assets of discontinued operations as of March 31, 2025, were $37,178,393, down from $40,827,044 as of December 31, 2024[84] - Total liabilities of discontinued operations as of March 31, 2025, were $32,752,879, a decrease from $37,714,200 as of December 31, 2024[84] Clinic Operations - Total clinics in operation increased to 969 by the end of Q1 2025, up from 954 in Q1 2024, reflecting a net increase of 15 clinics[30] - The number of franchised clinics increased to 847 at the end of Q1 2025, up from 819 at the end of Q1 2024, marking a growth of 3.4%[30] - The company had 94 clinic licenses sold but not yet developed as of Q1 2025, down from 117 in Q1 2024, a decrease of 19.7%[30] - The company has transitioned to a single reportable segment, Franchise Operations, following the discontinuation of the Corporate Clinics segment as of December 31, 2024[115] Future Outlook and Strategy - The company plans to continue its rapid expansion of chiropractic clinics in North America and potentially abroad, aiming to become the leading provider in the industry[9] - The company expects 2025 to be a volatile macroeconomic environment, influenced by factors such as inflation and labor shortages[9] - The anticipated cash flows from operations and available credit are expected to be sufficient to fund operating and investment needs for at least the next 12 months[10] - The company is focusing on refranchising its company-owned clinics to leverage its franchise-building capacity for long-term growth[9] Performance Metrics - The company utilizes Net Income, Gross Profit, Operating Income, and Adjusted EBITDA as key performance metrics for resource allocation decisions[117] - The weighted average common shares outstanding increased to 15,186,420 in 2025 from 14,801,354 in 2024, reflecting a growth of approximately 2.6%[62] - The company recognized a basic net income per share of $0.05 for the three months ended March 31, 2025, down from $0.06 in 2024[62] Miscellaneous - The company accrued a settlement of $3.4 million related to a medical injury claim, which was paid in full during the first quarter of 2025[113] - The Company recorded a net loss on disposition or impairment related to discontinued operations of $1,299,723 for the three months ended March 31, 2025, compared to $361,828 for the same period in 2024[48] - The Company recorded an estimated loss on disposal of $1.1 million for the three months ended March 31, 2025, compared to $0.2 million for the same period in 2024[85] - As of March 31, 2025, Mr. Jefferson Gramm holds approximately 26% of the company's outstanding common stock[119]