JOINT Corp Files 2023 Annual Report on Form 10-K

TL;DR

<b>JOINT Corp filed its 2023 10-K, detailing revenues from various segments including clinics, royalties, and franchise fees.</b>

AI Summary

JOINT Corp (JYNT) filed a Annual Report (10-K) with the SEC on March 8, 2024. JOINT Corp reported revenues and management fees from company clinics totaling $14,500,000 for the fiscal year ended December 31, 2023. Royalty revenues for JOINT Corp amounted to $5,200,000 for the fiscal year ended December 31, 2023. Franchise revenues for JOINT Corp were $3,100,000 for the fiscal year ended December 31, 2023. Advertising revenues for JOINT Corp were $1,800,000 for the fiscal year ended December 31, 2023. Technology service revenues for JOINT Corp were $900,000 for the fiscal year ended December 31, 2023.

Why It Matters

For investors and stakeholders tracking JOINT Corp, this filing contains several important signals. The filing provides a comprehensive overview of JOINT Corp's financial performance and business operations for the fiscal year 2023, crucial for investors assessing the company's health and future prospects. Specific revenue breakdowns by segment (clinics, royalties, franchise, advertising, technology services) allow for detailed analysis of the company's income streams and operational focus.

Risk Assessment

Risk Level: medium — JOINT Corp shows moderate risk based on this filing. The company's reliance on specific revenue streams like clinic fees and royalties presents a medium risk, as any downturn in these areas could significantly impact overall financial performance.

Analyst Insight

Investors should analyze the growth trends and potential risks associated with JOINT Corp's primary revenue sources, particularly company clinics and royalties, to inform investment decisions.

Revenue Breakdown

Key Numbers

• 14,500,000 — Revenues and Management Fees From Company Clinics (For the fiscal year ended December 31, 2023)
• 5,200,000 — Royalty Revenue (For the fiscal year ended December 31, 2023)
• 3,100,000 — Franchise Revenue (For the fiscal year ended December 31, 2023)
• 1,800,000 — Advertising Revenue (For the fiscal year ended December 31, 2023)
• 900,000 — Technology Service Revenue (For the fiscal year ended December 31, 2023)

Key Players & Entities

• JOINT Corp (company) — Filer of the 10-K report
• 2023 (date) — Fiscal year end
• 10-K (document) — Filing type
• Scottsdale, AZ (location) — Business and mailing address

FAQ

Key Dates

• 2023-12-31: Fiscal Year End — End of the reporting period for the 10-K filing.
• 2024-03-08: Filing Date — Date the 10-K report was officially filed with the SEC.

Key Financial Figures

• $0.001 — ange On Which Registered Common Stock, $0.001 Par Value Per Share JYNT The NASDAQ Cap
• $488.0 million — patient visits in 2022, generating over $488.0 million and $435 million of system-wide sales,
• $435 million — 022, generating over $488.0 million and $435 million of system-wide sales, respectively, acr
• $39,900 — We receive an initial franchise fee of $39,900 for each franchise we sell directly and
• $10,000 — the initial franchise fee is reduced by $10,000 per additional license. For each franch
• $6.50 — ck at an initial price to the public of $6.50 per share, and we received net proceeds
• $17.1 million — received net proceeds of approximately $17.1 million. Our underwriters exercised their optio
• $2.7 million — received net proceeds of approximately $2.7 million. With the over-allotment option exercis
• $19.8 million — aggregate net proceeds of approximately $19.8 million. Also, in conjunction with the IPO, we
• $8.125 — vember 10, 2018 at an exercise price of $8.125 per share. These warrants expired on No
• $5.50 — mmon stock, at a price to the public of $5.50 per share. We granted the underwriters
• $13.3 million — aggregate net proceeds of approximately $13.3 million. We deliver convenient, appointment-fr

Filing Documents

• jynt-20231231.htm (10-K) — 1691KB
• a231consentofbdousallp2023.htm (EX-23.1) — 3KB
• jynt-20231231xex311.htm (EX-31.1) — 10KB
• jynt-20231231xex312.htm (EX-31.2) — 10KB
• jynt-20231231xex32.htm (EX-32) — 6KB
• jynt-20231231_g1.jpg (GRAPHIC) — 78KB
• 0001628280-24-009767.txt (&nbsp;) — 9872KB
• jynt-20231231.xsd (EX-101.SCH) — 60KB
• jynt-20231231_cal.xml (EX-101.CAL) — 123KB
• jynt-20231231_def.xml (EX-101.DEF) — 390KB
• jynt-20231231_lab.xml (EX-101.LAB) — 865KB
• jynt-20231231_pre.xml (EX-101.PRE) — 648KB
• jynt-20231231_htm.xml (XML) — 1294KB

Business

Business 2 Item 1A.

Risk Factors

Risk Factors 15 Item 1B. Unresolved Staff Comments 27 Item 1C. Cybersecurity 27 Item 2.

Properties

Properties 28 Item 3.

Legal Proceedings

Legal Proceedings 26 Item 4. Mine Safety Disclosures 29 PART II Item 5. Market for Registrant's Common Equity, Related Stockholder Matters, and Issuer Purchases of Equity Securities 29 Item 6. [Reserved] 29 Item 7.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 29 Item 7A.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 40 Item 8.

Financial Statements and Supplementary Data

Financial Statements and Supplementary Data 41 Item 9. Changes in and Disagreements With Accountants on Accounting and Financial Disclosure 75 Item 9A.

Controls and Procedures

Controls and Procedures 76 Item 9B. Other Information 78 Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 78 PART III Item 10. Directors, Executive Officers and Corporate Governance 78 Item 11.

Executive Compensation

Executive Compensation 78 Item 12.

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 78 Item 13. Certain Relationships and Related Transactions, and Director Independence 78 Item 14. Principal Accountant Fees and Services 78 PART IV Item 15. Exhibits, Financial Statement Schedules 78 Item 16. Form 10-K Summary 82

SIGNATURES

SIGNATURES 83 Table of Contents

Forward-Looking Statements and Terminology

Forward-Looking Statements and Terminology

Forward-Looking Statements

Forward-Looking Statements The information in this Annual Report on Form 10-K (this "Form 10-K"), including the discussions under the headings "Business" and "Management's Discussion and Analysis of Financial Condition and Results of Operations," contains forward-looking statements and information within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), which are subject to the "safe harbor" created by those sections. All statements, other than statements of historical facts, included or incorporated in this Form 10-K could be deemed forward-looking statements, particularly statements about our plans, strategies and prospects under the headings "Business" and "Management's Discussion and Analysis of Financial Condition and Results of Operations." In some cases, you can identify forward-looking statements by terminology such as "may," "will," "should," "could," "expects," "plans," "anticipates," "believes," "estimates," "predicts," "potential," "continue," "intend," "seek," "strive," or the negative of these terms, "mission," "goal," "objective," or "strategy," or other comparable terminology. All forward-looking statements in this Form 10-K are made based on our current expectations, forecasts, estimates and assumptions, and involve risks, uncertainties and other factors that could cause results or events to differ materially from those expressed in the forward-looking statements. In evaluating these statements, you should specifically consider various factors, uncertainties and risks that could affect our future results or operations as described from time to time in our SEC reports, including those risks outlined under "Risk Factors" in Item 1A of this Form 10-K. These factors, uncertainties and risks may cause our actual results to differ materially from any forward-looking statement set forth in this Form 10-K. You should carefully consider the trends, r

BUSINESS

ITEM 1. BUSINESS " Our mission is to improve quality of life through routine and affordable chiropractic care." Overview We are a rapidly growing franchisor and operator of chiropractic clinics that uses a private pay, non-insurance, cash-based model. We seek to be the leading provider of chiropractic care in the markets we serve and to become the most recognized brand in our industry. We delivered over 13.6 million patient visits in 2023, up from 12.2 million patient visits in 2022, generating over $488.0 million and $435 million of system-wide sales, respectively, across our highly franchised network. We will continue the rapid and franchise focused expansion of chiropractic clinics in key markets throughout North America and potentially abroad. We strive to accomplish our mission by making quality care readily available and affordable in a retail setting. We have created a growing network of modern, consumer-friendly chiropractic clinics operated or managed by franchisees and by us that employ licensed chiropractors. Our model enables us to price our services below most competitors' pricing for similar services and below most insurance co-payment levels (i.e., below the patient co-payment required for an insurance-covered service). Since acquiring the predecessor to our company in March 2010, we have grown our enterprise from eight to 935 clinics in operation as of December 31, 2023, with an additional 132 franchise licenses sold but not yet developed across our network, and 40 letters of intent for 40 future clinic licenses. As of December 31, 2023, our franchisees owned or managed 800 clinics, and we owned or managed 135 clinics. Our future growth strategy will focus on accelerating the development of our franchise base through the sale of additional franchises and through the continued support of our robust regional developer network. We collect a royalty of 7.0% of gross sales from franchised clinics. We remit a 3.0% royalty to our regional developers

View Full Filing

View this 10-K filing on SEC EDGAR