Note 2: Acquisitions On April 6, 2018, the Company entered into an Asset and Franchise Purchase Agreement under which (i) the Company repurchased from the seller one operating franchise in San Diego, California and (ii) the parties agreed to terminate a second franchise agreement for an operating franchise. The Company intends to operate the remaining franchise as a company-managed clinic. The total purchase price for the transaction was $100,000, less $12,998 of deferred revenue resulting in total purchase consideration of $87,002. The Company incurred approximately $3,250 of transaction costs related to this acquisition, which are included in general and administrative expenses in the accompanying consolidated statements of operations. Purchase Price Allocation The following summarizes the aggregate estimated fair values of the assets acquired and liabilities assumed during 2018 as of the acquisition date: Property and equipment $ 17,964 Intangible assets 129,000 Favorable leases 15,302 Total assets acquired 162,266 Deferred tax liability (17,258 ) Bargain purchase gain (58,006 ) Net purchase price $ 87,002 Intangible assets in the table above consist of reacquired franchise rights of $85,000 amortized over an estimated useful life of four years and customer relationships of $44,000 amortized over an estimated useful life of two years. Pro Forma Results of Operations (Unaudited) The following table summarizes selected unaudited pro forma consolidated statements of operations data for the years ended December 31, 2018 and 2017 as if the acquisition in 2018 had been completed on January 1, 2017. Pro Forma for the Year Ended December 31, 2018 December 31, 2017 Revenues, net $ 31,841,993 $ 25,151,938 Net income (loss) $ 184,892 $ (3,660,834 ) This selected unaudited pro forma consolidated financial data is included only for the purpose of illustration and does not necessarily indicate what the operating results would have been if the acquisition had been completed on that date. Moreover, this information is not indicative of what the Companys future operating results will be. The information for 2017 and 2018 prior to the acquisition is included based on prior accounting records maintained by the acquired company. In some cases, accounting policies differed materially from accounting policies adopted by the Company following the acquisition. For 2018, this information includes actual data recorded in the Companys financial statements for the period subsequent to the date of the acquisition. The Companys consolidated statement of operations for the year ended December 31, 2018 includes net revenue and net income of approximately $226,000 and $96,000, respectively, attributable to the acquisition. The pro forma amounts included in the table above reflect the application of accounting policies and adjustment of the results of the clinics to reflect the additional depreciation and amortization that would have been charged assuming the fair value adjustments to property and equipment and intangible assets had been applied from January 1, 2017.