The Joint (US:JYNT)2025-11-07 00:08Financial Performance - Total revenues for the three months ended September 30, 2025, increased to $13,380,685, up from $12,654,396 in the same period of 2024, representing a growth of 5.7%[17] - Net income for the three months ended September 30, 2025, was $855,009, compared to a net loss of $3,165,139 for the same period in 2024, indicating a significant turnaround[17] - The company reported a basic net income per share from continuing operations of $0.02 for the three months ended September 30, 2025, compared to a loss of $0.03 per share in the same period of 2024[17] - Net income for the nine months ended September 30, 2025, was $1,916,168, a significant improvement compared to a net loss of $(5,814,558) in the same period of 2024[22] - The company reported net cash paid for interest of $37,917 for the nine months ended September 30, 2025, down from $56,668 in 2024[24] - The Franchise Operations segment had a net income of $290,370 for the three months ended September 30, 2025, compared to a loss of $414,383 in the same period of 2024[129] Assets and Liabilities - Total current assets decreased from $74,577,448 as of December 31, 2024, to $60,502,361 as of September 30, 2025, representing a decline of approximately 18.9%[14] - Total liabilities decreased from $62,476,289 to $46,663,932, a reduction of approximately 25.4%[14] - Cash, cash equivalents, and restricted cash increased to $30,713,135 as of September 30, 2025, up from $21,995,436 in 2024[23] - The balance of accounts receivable as of September 30, 2025, was $2,901,028, reflecting a net increase of $2,525,927 during the nine months ended September 30, 2025[79] - As of September 30, 2025, the total liabilities from discontinued operations were $22,878,807, a decrease from $37,367,459 at the end of 2024[85] Cash Flow and Investments - Cash flows from operating activities resulted in a net cash used of $(1,058,973) for the nine months ended September 30, 2025, compared to net cash provided of $5,284,936 in 2024[22] - The company generated $7,778,287 from the sale of clinics during the nine months ended September 30, 2025, compared to $374,100 in 2024[22] - Cash equivalents as of September 30, 2025, had an approximate fair value of $19.1 million, determined using Level 1 inputs[93] - The Company had an allowance for credit losses of $0.3 million as of September 30, 2025, up from $0.2 million as of December 31, 2024, reflecting an increase in expected uncollectible amounts[39] Operational Highlights - The company plans to continue its rapid expansion of chiropractic clinics, focusing on franchising in key North American markets and potentially abroad[9] - The company aims to leverage its regional developer program to accelerate clinic openings across the country[9] - The company expects to continue expanding its franchise operations, as indicated by the 63 executed letters of intent for future clinic licenses[71] - The company opened 21 franchised clinics during the nine months ended September 30, 2025, compared to 46 in the same period of 2024[32] - The company has initiated a refranchising plan for its corporate clinic segment, which is expected to significantly impact operations and financial results[82] Revenue Streams - Franchise fees increased to $964,796 for the three months ended September 30, 2025, compared to $697,688 in 2024, reflecting a growth of 38.3%[17] - Advertising fund revenue rose to $2,344,833 for the three months ended September 30, 2025, compared to $2,247,663 in 2024, marking an increase of 4.3%[17] - Revenues from company-owned or managed clinics for the nine months ended September 30, 2025, were $44,068,960, a decrease of 16.5% from $52,732,070 in the same period of 2024[85] - The company recognized advertising fees received under franchise agreements as advertising fund revenue, contributing to overall revenue growth[74] Challenges and Risks - The nationwide labor shortage has negatively impacted recruitment efforts, which may limit growth strategies and reduce net revenues[10] - The company expects to utilize cash resources to support business operations amid a volatile macroeconomic environment in 2025[10] - The company recorded a loss on disposal of $3,746,449 for the nine months ended September 30, 2025, compared to a loss of $5,598,123 in 2024[86] Future Outlook - The anticipated closing of the Elite Chiro Group Transaction is expected on or before November 25, 2025[10] - The company plans to adopt ASU 2023-09 for the year ending December 31, 2025, which will enhance income tax disclosures[68] - Estimated future revenues from unsatisfied performance obligations total $13,811,047, with $639,221 expected to be recognized in 2025 and $2,504,387 in 2026[81]