8-K

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
______________________

Form 8-K
______________________

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event Reported): August 8, 2019

The Joint Corp.
(Exact Name of Registrant as Specified in Charter)

Delaware	001-36724	90-0544160
(State or Other Jurisdiction of Incorporation)	(Commission File Number)	(I.R.S. Employer Identification Number)

16767 N. Perimeter Drive, Suite 240
Scottsdale, AZ 85260

(Address of Principal Executive Offices)

Registrant's telephone number, including area code:
(480) 245-5960

 
(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
	[   ]	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
	[   ]	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
	[   ]	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
	[   ]	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2). Emerging growth company [ X ]

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. [ X ]

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, $0.001 Par Value Per Share	JYNT	The NASDAQ Capital Market LLC

Item 2.02. Results of Operations and Financial Condition.

On August 8, 2019, The Joint Corp. (the “Company”) issued a press release announcing its financial results for the quarter ended June 30, 2019. The press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K.

The information furnished in this Item 2.02 and Exhibit 99.1 shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall it be incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as expressly set forth by specific reference in such a filing.

Item 7.01. Regulation FD Disclosure.

The Company is posting an earnings presentation to its website at https://ir.thejoint.com/.  A copy of the earnings presentation is being furnished herewith as Exhibit 99.2. The Company will use the earnings presentation during its earnings conference call on August 8, 2019 and also may use the earnings presentation from time to time in conversations with analysts, investors and others.

The presentation is furnished by the Company pursuant to Item 7.01 of Form 8-K and shall not be deemed “filed” for purposes of Section 18 of the Exchange Act, or otherwise subject to the liabilities of that section, nor shall it be incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as expressly set forth by specific reference in such a filing.

The information contained in Exhibit 99.2 is summary information that is intended to be considered in the context of the Company’s filings with the SEC. The Company undertakes no duty or obligation to publicly update or revise the information contained in this report, although it may do so from time to time as its management believes is warranted. Any such updating may be made through the filing of other reports or documents with the SEC, through press releases or through other public disclosure.

Item 9.01. Financial Statements and Exhibits.

(d)     Exhibits

Exhibit Number	Description
99.1	Press Release dated August 8, 2019
99.2	The Joint Corp Earnings Presentation, August 2019

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	The Joint Corp.
Date: August 8, 2019	By:	/s/ Peter D. Holt
		Name: Peter D. Holt
		Title: President and Chief Executive Officer

EXHIBIT INDEX

Exhibit Number	Description
99.1	Press Release dated August 8, 2019
99.2	The Joint Corp Earnings Presentation, August 2019

EX-99.1

EXHIBIT 99.1

The Joint Corp. Reports Second Quarter 2019 Financial Results

- Increases System-Wide Gross Sales 34%, Compared to Q2 2018 -
- Sells 45 Franchise Licenses, Up from 18 in Q2 2018 –
- Opens 15 Clinics, 14 Franchised and 1 Greenfield, Compared to 8 Franchised Clinics in Q2 2018 -

SCOTTSDALE, Ariz., Aug. 08, 2019 (GLOBE NEWSWIRE) -- The Joint Corp. (NASDAQ: JYNT), a national operator, manager and franchisor of chiropractic clinics, reported its financial results for the second quarter ended June 30, 2019.

Second Quarter Highlights: 2019 Compared to 2018

• Increased system-wide sales¹ 34%, to $52.7 million.
• Achieved comp sales² of 25%.
• Reached revenue of $11.2 million, up 27%.
• Posted net income of $462,000, an improvement of $513,000.
• Reported Adjusted EBITDA of $1.1 million, an increase of 46%.

Second Quarter 2019 Operating Achievements

• Sold 45 franchise licenses, compared to 18 sold in the second quarter of 2018.  The total number of franchise licenses sold year to date rose to 75, compared to 34 in the first six months of 2018.
• Grew total clinics to 468 at June 30, 2019: 417 franchised and 51 company-owned or managed.
  • Opened 14 franchised clinics and closed one franchised clinic, compared to opening eight clinics in the second quarter of 2018.
  • Opened one company-owned or managed greenfield clinic and acquired one franchise, compared to acquiring one clinic in the second quarter of 2018.
  • Continued to increase the corporate clinic portfolio subsequent to quarter end, opening one greenfield clinic and acquiring five previously franchised clinics. Year to date through August 8, 2019, The Joint opened four greenfields and acquired six previously franchised clinics, bringing the total company-owned or managed portfolio to 57.

¹ System-wide sales include sales at all clinics, whether operated by the Company or by franchisees. While franchised sales are not recorded as revenues by the Company, management believes the information is important in understanding the Company’s financial performance, because these sales are the basis on which the Company calculates and records royalty fees and are indicative of the financial health of the franchisee base.

² Comp sales include the sales from both company-owned or managed clinics and franchised clinics that in each case have been open at least 13 full months and exclude any clinics that have closed, respectively.

“Our second quarter financial and operating results demonstrate our continued accelerating momentum,” said Peter D. Holt, President and Chief Executive Officer of The Joint Corp. “Our improved marketing and operational protocols are growing revenue and generating increased operating leverage. As a result, our increase in comp sales remains at an exceptional pace for small-box retail as we continue to deliver consecutive quarters of positive net income and Adjusted EBITDA. Our regional developer model is accelerating franchise license sales growth, and our hybrid franchise / corporate clinic model enables our capital-light expansion. Pain management growth trends feed the growing acceptance of chiropractic care.  With over 460 clinics, we have just begun to penetrate the overall U.S. chiropractic market, reflecting enormous opportunity to scale our clinics.  We are excited about our future and confident in our ability to continue to drive shareholder value.”

Second Quarter Unaudited Financial Results: 2019 Compared to 2018
Revenue was $11.2 million in the second quarter of 2019, compared to $8.8 million in the second quarter of 2018, up 27%.  The growth is primarily related to a greater number of clinics as well as increased adoption of chiropractic care.

Cost of revenue was $1.3 million, up 24% compared to the second quarter of 2018, reflecting the success of the regional developer (RD) program resulting in higher commissions and royalties related to an increased number of franchised locations sold and opened within RD territories. Selling and marketing expenses were $1.8 million, or 16% of revenue, compared to $1.3 million, or 15% of revenue, in the second quarter of 2018, reflecting the increased local marketing spend associated with the corporate clinic expansion and the extra spend associated with the national franchisee convention held in May. General and administrative expenses were $7.2 million, or 65% of revenue, compared to $5.9 million, or 67% of revenue in the second quarter of 2018. The absolute dollar increase reflects both the corporate clinic expansion as well as increases in employee head count to support growth.  The decrease in general and administrative expenses as a percent of revenue reflects the improving leverage in the operating model.

Net income was $462,000, or $0.03 per diluted share, compared to a net loss of $51,000, or $0.00 per share, in the second quarter of 2018.

Adjusted EBITDA was $1.1 million, an improvement of 44% compared to Adjusted EBITDA of $734,000 in the second quarter last year.  The Company defines Adjusted EBITDA, a non-GAAP measure, as EBITDA before acquisition-related expenses, bargain purchase gain, net (gain)/loss on disposition or impairment, and stock-based compensation expenses. The company defines EBITDA as net income/(loss) before net interest, tax expense, depreciation, and amortization expenses.

Balance Sheet Liquidity
Unrestricted cash was $9.5 million at June 30, 2019, compared to $8.7 million at December 31, 2018, reflecting increased cash flow from operations, partially offset by continued investment in corporate clinic expansion and the development of the new IT platform.

2019 Guidance for Financial Results and Clinic Openings:
Management reiterates the following full year 2019 guidance based on the preliminary financial results:

• Revenue to increase between 26% and 32%, compared to $36.7 million dollars in 2018
• Adjusted EBITDA to grow between 67% and 100%, compared to $2.9 million in 2018
• Franchised clinic openings to range from 70 to 80, compared to 47 in 2018  
• Company-owned or managed clinic expansion, through a combination of both greenfields and buybacks, to range from 8 to 12, compared to 1 in 2018 

Conference Call
The Joint Corp. management will host a conference call at 5 p.m. ET on Thursday, August 8, 2019, to discuss the second quarter 2019 results. The conference call may be accessed by dialing 765-507-2604 or 844-464-3931 and referencing conference code 9356268. A live webcast of the conference call will also be available on the IR section of the company’s website at https://ir.thejoint.com/events. An audio replay will be available two hours after the conclusion of the call through August 15, 2019. The replay can be accessed by dialing 404-537-3406 or 855-859-2056. The passcode for the replay is 9356268.

Non-GAAP Financial Information

This release includes a presentation of non-GAAP financial measures. System-wide sales include sales at all clinics, whether operated by the Company or by franchisees. While franchised sales are not recorded as revenues by the Company, management believes the information is important in understanding the Company’s financial performance, because these sales are the basis on which the Company calculates and records royalty fees and are indicative of the financial health of the franchisee base. Comp sales include the sales from both company-owned or managed clinics and franchised clinics that in each case have been open at least 13 full months and exclude any clinics that have closed, respectively.
EBITDA and Adjusted EBITDA are presented because they are important measures used by management to assess financial performance, as management believes they provide a more transparent view of the company’s underlying operating performance and operating trends. Reconciliation of net income (loss) to EBITDA and Adjusted EBITDA is presented in the table below. The company defines Adjusted EBITDA as EBITDA before acquisition-related expenses, bargain purchase gain, net (gain)/loss on disposition or impairment, and stock-based compensation expenses. The company defines EBITDA as net income/(loss) before net interest, tax expense, depreciation, and amortization expenses.

EBITDA and Adjusted EBITDA do not represent and should not be considered alternatives to net income or cash flows from operations, as determined by accounting principles generally accepted in the United States, or GAAP. While EBITDA and Adjusted EBITDA are used as measures of financial performance and the ability to meet debt service requirements, they are not necessarily comparable to other similarly titled captions of other companies due to potential inconsistencies in the methods of calculation. EBITDA and Adjusted EBITDA should be reviewed in conjunction with the company’s financial statements filed with the SEC.

Forward-Looking Statements
This press release contains statements about future events and expectations that constitute forward-looking statements, including our expectation relating to the timing of the filing of our Form 10-Q for the quarter ended June 30, 2019. Forward-looking statements are based on our beliefs, assumptions and expectations of industry trends, our future financial and operating performance and our growth plans, taking into account the information currently available to us. These statements are not statements of historical fact. Forward-looking statements involve risks and uncertainties that may cause our actual results to differ materially from the expectations of future results we express or imply in any forward-looking statements, and you should not place undue reliance on such statements. Factors that could contribute to these differences include, but are not limited to, our failure to develop or acquire company-owned or managed clinics as rapidly as we intend, our failure to profitably operate company-owned or managed clinics, and the factors described in “Risk Factors” in our Annual Report on Form 10-K as filed with the SEC for the year ended December 31, 2018 and as may be described in any “Risk Factors” in subsequently filed Quarterly Reports on Form 10-Q.  Words such as, "anticipates," "believes," "continues," "estimates," "expects," "goal," "objectives," "intends," "may," "opportunity," "plans," "potential," "near-term," "long-term," "projections," "assumptions," "projects," "guidance," "forecasts," "outlook," "target," "trends," "should," "could," "would," "will," and similar expressions are intended to identify such forward-looking statements. We qualify any forward-looking statements entirely by these cautionary factors. We assume no obligation to update or revise any forward-looking statements for any reason or to update the reasons actual results could differ materially from those anticipated in these forward-looking statements, even if new information becomes available in the future. Comparisons of results for current and any prior periods are not intended to express any future trends or indications of future performance, unless expressed as such, and should only be viewed as historical data.

About The Joint Corp. (NASDAQ: JYNT)
Based in Scottsdale, Arizona, The Joint is an emerging growth company that is reinventing chiropractic care by making quality care convenient and affordable for patients seeking pain relief and ongoing wellness. Its no-appointment policy and convenient hours and locations make care more accessible, and affordable membership plans and packages eliminate the need for insurance. With over 460 clinics nationwide and over 6 million patient visits annually, The Joint is a key leader in the chiropractic profession. For more information, visit http://www.thejoint.com or follow the brand on Twitter, Facebook, YouTube and LinkedIn. 

Business Structure
The Joint Corp. is a franchisor of clinics and an operator of clinics in certain states. In Arkansas, California, Colorado, District of Columbia, Florida, Illinois, Kansas, Kentucky, Maryland, Massachusetts, Michigan, Minnesota, New Jersey, New York, North Carolina, Oregon, Pennsylvania, Rhode Island, South Dakota, Tennessee, Washington, West Virginia and Wyoming, The Joint Corp. and its franchisees provide management services to affiliated professional chiropractic practices.

Media Contact: Margie Wojciechowski, The Joint Corp., margie.wojciechowski@thejoint.com
Investor Contact: Kirsten Chapman, LHA Investor Relations, 415-433-3777, thejoint@lhai.com

-- Financial Tables Follow --

THE JOINT CORP. AND SUBSIDIARY AND AFFILIATES
CONDENSED CONSOLIDATED BALANCE SHEETS
	June 30,			December 31,
		2019			2018
ASSETS	(unaudited)			(as adjusted)
Current assets:
Cash and cash equivalents	$	9,485,212		$	8,716,874
Restricted cash		129,220			138,078
Accounts receivable, net		1,033,479			806,350
Notes receivable - current portion		163,573			149,349
Deferred franchise costs - current portion		710,796			611,047
Prepaid expenses and other current assets		887,676			882,290
Total current assets		12,409,956			11,303,988
Property and equipment, net		4,963,037			3,658,007
Operating lease right-of-use asset		10,030,737			-
Notes receivable, net of current portion and reserve		41,683			128,723
Deferred franchise costs, net of current portion		3,485,644			2,878,163
Intangible assets, net		1,975,835			1,634,060
Goodwill		3,225,145			3,225,145
Deposits and other assets		337,379			599,627
Total assets	$	36,469,416		$	23,427,713
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable	$	1,199,341		$	1,253,274
Accrued expenses		178,949			266,322
Co-op funds liability		129,220			104,057
Payroll liabilities		1,602,916			2,035,658
Notes payable - current portion		1,000,000			1,100,000
Deferred rent - current portion		-			136,550
Operating lease liability - current portion		1,827,233			-
Finance lease liability - current portion		23,075			-
Deferred franchise and regional developer fee revenue - current portion		2,697,669			2,370,241
Deferred revenue from company clinics		2,677,782			2,529,497
Other current liabilities		540,279			477,528
Total current liabilities		11,876,464			10,273,127
Deferred rent, net of current portion		-			721,730
Operating lease liability - net of current portion		9,049,948			-
Finance lease liability - net of current portion		46,826			-
Deferred franchise and regional developer fee revenue, net of current portion		12,652,780			11,239,221
Deferred tax liability		83,294			76,672
Other liabilities		27,230			389,362
Total liabilities		33,736,542			22,700,112
Stockholders' equity:
Series A preferred stock, $0.001 par value; 50,000 shares authorized,
0 issued and outstanding, as of June 30, 2019 and December 31, 2018		-			-
Common stock, $0.001 par value; 20,000,000 shares
authorized, 13,838,016 shares issued and 13,823,346 shares outstanding
as of June 30, 2019 and 13,757,200 shares issued and 13,742,530
outstanding as of December 31, 2018		13,838			13,757
Additional paid-in capital		38,779,538			38,189,251
Treasury stock 14,670 shares as of June 30, 2019 and December 31, 2018, at cost		(90,856	)		(90,856	)
Accumulated deficit		(35,969,746	)		(37,384,651	)
Total The Joint Corp. stockholders' equity		2,732,774			727,501
Non-controlling Interest		100			100
Total equity		2,732,874			727,601
Total liabilities and stockholders' equity	$	36,469,416		$	23,427,713

THE JOINT CORP. AND SUBSIDIARY AND AFFILIATES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
	Three Months Ended						Six Months Ended
	June 30,						June 30,
		2019			2018			2019			2018
				(as adjusted)						(as adjusted)
Revenues:
Revenues from company-owned or managed clinics	$	5,777,288		$	4,668,638		$	11,416,365		$	9,474,311
Royalty fees		3,263,530			2,421,185			6,290,346			4,695,173
Franchise fees		447,266			449,144			864,339			797,481
Advertising fund revenue		927,800			687,752			1,819,367			1,346,782
Software fees		377,125			315,910			742,361			623,385
Regional developer fees		200,524			137,412			384,381			261,423
Other revenues		176,446			124,744			332,197			253,194
Total revenues		11,169,979			8,804,785			21,849,356			17,451,749
Cost of revenues:
Franchise cost of revenues		1,198,378			977,782			2,315,431			1,850,550
IT cost of revenues		100,771			73,802			189,659			173,366
Total cost of revenues		1,299,149			1,051,584			2,505,090			2,023,916
Selling and marketing expenses		1,769,368			1,293,663			3,275,356			2,395,967
Depreciation and amortization		404,466			404,975			770,143			792,392
General and administrative expenses		7,227,662			5,867,512			13,780,566			12,136,198
Total selling, general and administrative expenses		9,401,496			7,566,150			17,826,065			15,324,557
Net (gain) loss on disposition or impairment		(18,266	)		251,290			86,927			251,678
Income (loss) from operations		487,600			(64,239	)		1,431,274			(148,402	)
Other income (expense):
Bargain purchase gain		-			30,455			19,298			30,455
Other expense, net		(15,126	)		(11,103	)		(26,771	)		(21,910	)
Total other income (expense)		(15,126	)		19,352			(7,473	)		8,545
Income (loss) before income tax (expense) benefit		472,474			(44,887	)		1,423,801			(139,857	)
Income tax (expense) benefit		(10,214	)		(5,951	)		(8,896	)		57,404
Net income (loss) and comprehensive income (loss)	$	462,260		$	(50,838	)	$	1,414,905		$	(82,453	)
Less: income (loss) attributable to the non-controlling interest	$	-		$	-		$	-		$	-
Net income (loss) attributable to The Joint Corp. stockholders	$	462,260		$	(50,838	)	$	1,414,905		$	(82,453	)
Earnings (loss) per share:
Basic earnings (loss) per share	$	0.03		$	-		$	0.10		$	(0.01	)
Diluted earnings (loss) per share	$	0.03		$	-		$	0.10		$	(0.01	)
Basic weighted average shares		13,797,497			13,622,710			13,774,474			13,605,370
Diluted weighted average shares		14,477,007			13,622,710			14,390,320			13,605,370

	Three Months Ended						Six Months Ended
	June 30,						June 30,
Non-GAAP Financial Data:		2019			2018			2019			2018
				(as adjusted)						(as adjusted)
Net income (loss)	$	462,260		$	(50,838	)	$	1,414,905		$	(82,453	)
Net interest		15,126			11,103			26,771			21,910
Depreciation and amortization expense		404,466			404,975			770,143			792,392
Tax expense (benefit)		10,214			5,951			8,896			(57,404	)
EBITDA	$	892,066		$	371,191		$	2,220,715		$	674,445
Stock compensation expense		178,953			138,987			350,724			346,629
Acquisition related expenses		3,200			3,250			3,200			3,250
Bargain purchase gain		-			(30,455	)		(19,298	)		(30,455	)
Net (gain) loss on disposition or impairment		(18,266	)		251,290			86,927			251,678
Adjusted EBITDA	$	1,055,953		$	734,263		$	2,642,268		$	1,245,547

THE JOINT CORP. AND SUBSIDIARY AND AFFILIATES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)
	Six Months Ended
	June 30,
		2019			2018
				(as adjusted)
Net income (loss)	$	1,414,905		$	(82,453	)
Adjustments to reconcile net income (loss) to net cash
provided by operating activities		1,183,708			1,211,912
Changes in operating assets and liabilities		238,167			(516,249	)
Net cash provided by operating activities		2,836,780			613,210
Net cash used in investing activities		(2,206,240	)		(366,933	)
Net cash provided by financing activities		128,940			141,607
Net increase in cash	$	759,480		$	387,884

EX-99.2

EXHIBIT 99.2

THE JOINT CORP. | NASDAQ: JYNT | thejoint.com Q2 2019 FINANCIAL RESULTS AS OF JUNE 30, 2019 REPORTED AUGUST 8, 2019 © 2019 The Joint Corp. All Rights Reserved.

Safe Harbor Statements Forward looking Statements Certain statements contained in this presentation are "forward - looking statements." We have tried to identify these forward - look ing statements by using words such as "may," "might," " will," "expect,” "anticipate,'' "'believe,“ "could," " intend," "plan," "estimate," "should," "if,“ "pro jec t," and similar expressions. All statements other than statements of historical facts contained in this presentation, including statements regarding our growth strategies, our vision, future ope rat ions, future financial position, future revenue, projected costs, prospects, plans, objectives of management and expected market growth and potential are forward - looking statements. We have base d these forward - looking statements on our current expectations and projections about future events. However, these forward - looking statements are subject to risks, uncertainties, assumptions and other factors that may cause our actual results, performance or achievements to be materially different from our expectations and projections. Some of these risks, uncertaint ies and other factors are set forth in this presentation and in other documents we file with the United States Securities and Exchange Commission (the "SEC"). Given these risks and uncertainties, re aders are cautioned not to place undue reliance on our forward - looking statements. Projections and other forward - looking statements included in this presentation have been prepared based on a ssumptions, which we believe to be reasonable, but not in accordance with U.S. Generally Accepted Accounting Principals (“GAAP”) or any guidelines of the SEC. Actual results may vary, pe rhaps materially. You are strongly cautioned not to place undue reliance on such projections and other forward - looking statements. All subsequent written and oral forward - looking statements at tributable us or to persons acting on our behalf are expressly qualified in their entirety by these cautionary statements. Except as required by federal securities laws, we disclaim any in ten tion or obligation to update or revise any forward - looking statements, whether as a result of new information, future events or otherwise. Any such forward - looking statements, whether made in this pr esentation or elsewhere, should be considered in the context of the various disclosures made by us about our businesses including, without limitation, the risk factors discussed above. Accounting Related to the Consolidation of the Operations of the PCs In those states which require a licensed Doctor of Chiropractic to own the entity that offers chiropractic services, the Comp any enters into a management agreement with a professional corporation (PC) licensed in that state to provide chiropractic services. To increase transparency into operating results and to align wi th accounting rules, the Company consolidates the full operations of the PC. This results in increases to our revenue and G&A expenses by an identical amount and has no impact on our bottom line except in instances when the PC has sold treatment packages and wellness plans. Revenue from these packages and plans are deferred and recognized when patients use their visits. The Company has pre vio usly consolidated its clinic operations in Non - PC states such as Arizona and New Mexico, and the deferred revenue around packages and plans in those states was already reflected in its finan cia l statements. Therefore, these adjustments are isolated to the managed clinics in PC states. These adjustments have no impact on cash flow. Definition of System - wide and Comparison Sales System - wide sales include sales at all clinics, whether operated by the Company or by franchisees. While franchised sales are no t recorded as revenues by the Company, management believes the information is important in understanding the Company’s financial performance, because these sales are the basis on which the Co mpany calculates and records royalty fees and are indicative of the financial health of the franchisee base. Comparison, or comp, sales include the sales from both company - owned or managed cli nics and franchised clinics that in each case have been open at least 13 or 48 full months and exclude any clinics that have closed, respectively. Business Structure The Joint Corp. is a franchisor of clinics and an operator of clinics in certain states. In Arkansas, California, Colorado, D ist rict of Columbia, Florida, Illinois, Kansas, Kentucky, Maryland, Massachusetts, Michigan, Minnesota, New Jersey, New York, North Carolina, Oregon, Pennsylvania, Rhode Island, South Da kota, Tennessee, Washington, West Virginia and Wyoming, The Joint Corp. and its franchisees provide management services to affiliated professional chiropractic practice s. 2 © 2019 The Joint Corp. All Rights Reserved.

3 © 2019 | NASDAQ: JYNT | thejoint.com 1 Comparable sales include only the sales from clinics that have been open at least 13 or 48 full months and exclude any clinic s t hat have closed.| 2 Reconciliation of Adjusted EBITDA to GAAP earnings is included in the Appendix. Our Mission TO IMPROVE QUALITY OF LIFE THROUGH ROUTINE AND AFFORDABLE CHIROPRACTIC CARE Q2 2019 vs Q2 2018 System - wide sales Comp sales >13 months 1 Comp sales >48 months 1 34% 25% 18% Revenue 27% Net Income $462K, up $513K Adjusted EBITDA 2 $1.1M, up $322K Unrestricted cash $9.5 M at June 30, 2019, compared to $8.7M at Dec. 31, 2018

4 © 2019 | NASDAQ: JYNT | thejoint.com 12 26 82 175 242 265 309 352 394 417 4 47 61 47 48 51 2010 2011 2012 2013 2014 2015 2016 2017 2018 6-30-19 TOTAL CLINICS OPEN Franchise Company Owned/Managed Accelerating Momentum Continue to experience unusually low clinic closure rates of less than 1% 312 370 399 246 442 468 0 2018 4 Aug.2019 Franchise Licenses Sold Total New Clinics Opened Opened Greenfield Clinics Acquired Franchise Clinics FIRST HALF OF YEAR 2018 2019 THROUGH AUGUST 8 2018 2019 34 H1 2018 75 H1 2019 15 H1 2018 29 H1.2019 1 2018 6 Aug.2019

5 © 2019 | NASDAQ: JYNT | thejoint.com 50% 49% 89% 95% Dec. 31, 2016 Dec. 31, 2017 Dec. 31, 2018 June 30, 2019 RDs Accelerate Franchise License Sales PIPELINE OF 200+ UNDEVELOPED LICENSES & LOIs AT JUNE 30, 2019 % of SALES BY REGIONAL DEVELOPERS GROSS CUMULATIVE FRANCHISE LICENSES SOLD 1 22 37 99 75 Dec. 31, 2016 Dec. 31, 2017 Dec. 31, 2018 June 30, 2019 FRANCHISE LICENSES SOLD ANNUALLY 1 Of the 790 franchise licenses sold as of June 30, 2019, 204 are in active development, 468 are currently operating and the ba lan ce represents terminated/closed licenses. • 75% of clinics supported by RDs • RDs cover 56% of Metropolitan Statistical Areas ( MSAs ) in the US 579 616 715 790 Dec. 31. 2016 Dec. 31. 2017 Dec. 31. 2018 June 30, 2019

6 © 2019 | NASDAQ: JYNT | thejoint.com Reducing Time to Breakeven • Implementing operational standards and protocols • Enhancing grand openings with t urnkey, s tep - by - step program • Franchise grassroots marketing tactics with pre - registration program, PR, digital and social media support • Marketing resource at headquarters, plus the RD or field support • Established Go Elite status *Based on average historical gross sales growth rates from January 2013 through June 2019.

7 © 2019 | NASDAQ: JYNT | thejoint.com Building a Robust Health & Wellness Brand Awareness Building Tactics • Educate the greater market of “relief seekers” • Improve name recognition New Brand Campaign Leveraging insights from 2018 consumer research PR Web Outdoor Print Social Fall 2019 Launch TV Co - op Growth

8 © 2019 | NASDAQ: JYNT | thejoint.com Implementing AXIS, New IT Platform CRITICAL: Driven to get it RIGHT! • Completed development • Conducting internal testing • Completing robust training

9 © 2019 | NASDAQ: JYNT | thejoint.com System - wide sales 2 Comp sales 1 for clinics >13 months in operation Comp sales 1 for clinics >48 months in operation Exceptional System - wide Comp Sales 1 Comparable sales include only the sales from clinics that have been open at least 13 or 48 full months and exclude any clinic s t hat have closed. 2 System - wide sales include sales at all clinics, whether operated by the company or by franchisees 16% 13% 17% 18% 18% 28% 21% 25% 25% 25% 2016 2017 2018 Q1-19 Q2-19 Comp Sales % Growth 1 > 48 months > 13 months

10 © 2019 | NASDAQ: JYNT | thejoint.com Achi $ in M 1 Q2 2019 Q2 2018 IMPROVEMENT Revenue • Corporate clinics • Franchise fees $11.2 5.8 5.4 $8.8 4.7 4.1 $2.4 1.1 1.3 27% 24% 30% Cost of revenue 1.3 1.1 (0.2) (24%) Sales and marketing 1.8 1.3 0.5 (37%) Depreciation 0.4 0.4 (0.0) (0%) G&A 7.2 5.9 (1.3) (23%) Net Income / (Loss) 0.5 (0.1) 0.5 Adj. EBITDA 2 1.1 0.7 0.3 44% Q2 2019 Improvements 3 RD CONSECUTIVE QUARTER OF NET INCOME, 8 TH CONSECUTIVE QUARTER OF POSITIVE ADJUSTED EBITDA 10 © 2019 | NASDAQ: JYNT | thejoint.com 1 Due to rounding, numbers may not add up precisely to the totals. 2 Reconciliation of Adjusted EBITDA to GAAP earnings is included in the Appendix. • Unrestricted cash $9.5M at June 30, 2019, compared to $8.7M at Dec. 31, 2018

11 © 2019 | NASDAQ: JYNT | thejoint.com $ in M 2018 ACTUAL LOW HIGH Revenues $36.7 26% 32% Adjusted EBITDA 1 $2.9 67% 100% New Franchise Openings 47 70 80 Additional Company - owned/Managed Clinics 2 1 8 12 Reiterating 2019 Guidance 1 Reconciliation of Adjusted EBITDA to GAAP earnings is included in the appendix. | 2 Through a combination of both greenfields and buybacks.

12 © 2019 | NASDAQ: JYNT | thejoint.com Opioid Epidemic Continues are written for every 100 Americans in 2017, according to the CDC. will be prescribed opioids at some point in their lives. from July 2016 through September 2017 in 52 areas in 45 states. in the United States after overdosing on opioids in 2018 Sources: CDC/NCHS, National Vital Statistics System , Mortality. CDC WONDER, Atlanta, GA: US Department of Health and Human Services, CDC; 2018. https://wonder.cdc.gov . | Vivolo - Kantor, AM, Seth, P, Gladden, RM, et al. Vital Signs: Trends in Emergency Department Visits for Suspected Opioid Overdoses -- United States, July 2016 - September 2017 . Centers for Disease Control and Prevention

13 © 2019 | NASDAQ: JYNT | thejoint.com Upside for Future Growth of Americans don’t know what the word “chiropractic” means saw a chiropractor in the last 12 months understand chiropractic but are scared Gallup - Palmer College of Chiropractic Report 2017 Gallup - Palmer College of Chiropractic Report 2018 Nucleus Marketing Lab 2018

14 © 2019 | NASDAQ: JYNT | thejoint.com Market Opportunity 1% SHARE WITH 1700+ POTENTIAL CLINICS Only 1.06% US market penetration • 52.3M people have used chiropractic care in the last 12 months* • 557,000 unique active patients in 2018 1700+ similar points of distribution based on 557k patient records • Analyze demographics and psychographics • Model attributes • Roll across country Projected Core Customer & Trade Area Potential (based on current usage patterns) *Gallup - Palmer College of Chiropractic Report 2018

15 © 2019 | NASDAQ: JYNT | thejoint.com Expansion: New Markets Small Markets • Recent openings to help understand growth potential Urban • Pedestrian focus • Very few now; will be important Non - traditional • Airports • Dual concepts

16 © 2019 | NASDAQ: JYNT | thejoint.com Growth Strategy BUILDING NATIONWIDE BRAND TO DELIVER SHAREHOLDER VALUE Continue to focus on franchise sales • Further leverage RD strategy Accelerate the expansion of corporate clinic portfolio within clustered locations • Build greenfield clinics • Acquire franchised clinics opportunistically Continued Momentum SYSTEM - WIDE GROSS SALES ($ in M) 83% CAGR (2010 - 2018) $1.3 $2.8 $8.1 $22.3 $46.2 $70.1 $98.6 $126.9 $165.1 $101.6 2010 2011 2012 2013 2014 2015 2016 2017 2018 H1-19

Non - GAAP Measure Definition This presentation includes a presentation of EBITDA and Adjusted EBITDA, which are non - GAAP financial measures. EBITDA and Adjusted EBITDA are presented because they are important measures used by management to assess financial performance, as management believes they provide a more transparent view of the Company’s underlying operating performance and operating trends. Reconciliations of net loss to EBITDA and Adjusted EBITDA are presented where applicable. The Company defines EBITDA as net income (loss) before net interest, taxes, depreciation and amortization expenses. The Company defines Adjusted EBITDA as EBITDA before acquisition - related expenses, bargain purchase gain, loss on disposition or impairment, and stock - based compensation expenses. EBITDA and Adjusted EBITDA do not represent and should not be considered alternatives to net income or cash flows from operations, as determined by accounting principles generally accepted in the United States, or GAAP. While EBITDA and Adjusted EBITDA are frequently used as measures of financial performance and the ability to meet debt service requirements, they are not necessarily comparable to other similarly titled captions of other companies due to potential inconsistencies in the methods of calculation. EBITDA and Adjusted EBITDA should be reviewed in conjunction with the Company’s financial statements filed with the SEC. 17 © 2019 | NASDAQ: JYNT | thejoint.com

18 © 2019 | NASDAQ: JYNT | thejoint.com Q2 2019 Segment Results 2019 Q2 Corporate Clinics Franchise Operations Unallocated Corporate The Joint Consolidated Total Revenues 5,777$ 5,393$ 0$ 11,170$ Total Operating Costs (5,213) (2,762) (2,708) (10,682) Operating Income (Loss) 564 2,631 (2,707) 488 Other Income (Expense), net - 6 (21) (15) Loss Before Income Tax Expense 564 2,637 (2,728) 472 Total Income Taxes - - 10 10 Net Income (Loss) 564 2,637 (2,739) 462 Net Interest - (6) 21 15 Income Taxes - - 10 10 Total Depreciation and Amortization Expense 354 0 51 404 EBITDA 918 2,631 (2,657) 892 Stock Based Compensation Exp - - 179 179 Bargain Purchase Gain - - - - Loss on Disposition/Impairment (18) - - (18) Acquisition Expenses (0) - 3 3 Adjusted EBITDA 899 2,631 (2,475) 1,056

19 © 2019 | NASDAQ: JYNT | thejoint.com H1 2019 Segment Results 2019 H1 Corporate Clinics Franchise Operations Unallocated Corporate The Joint Consolidated Total Revenues 11,416$ 10,433$ 0$ 21,849$ Total Operating Costs (10,012) (5,412) (4,993) (20,418) Operating Income (Loss) 1,404 5,020 (4,993) 1,431 Other Income (Expense), net 22 13 (42) (7) Loss Before Income Tax Expense 1,426 5,033 (5,035) 1,424 Total Income Taxes - - 9 9 Net Income (Loss) 1,426 5,033 (5,044) 1,415 Net Interest (3) (13) 42 27 Income Taxes - - 9 9 Total Depreciation and Amortization Expense 666 0 104 770 EBITDA 2,089 5,021 (4,890) 2,221 Stock Based Compensation Exp - - 351 351 Bargain Purchase Gain (19) - - (19) Loss on Disposition/Impairment 87 - - 87 Acquisition Expenses (0) - 3 3 Adjusted EBITDA 2,157 5,021 (4,536) 2,642

20 © 2019 | NASDAQ: JYNT | thejoint.com GAAP – Non - GAAP Reconciliation

21 © 2019 | NASDAQ: JYNT | thejoint.com Peter D. Holt, President and CEO peter.holt@thejoint.com Jake Singleton, CFO jake.singleton@thejoint.com Kirsten Chapman, LHA Investor Relations thejoint@lhai.com The Joint Corp. Contact Information https://www.facebook.com/thejointchiro @ thejointchiro https://twitter.com/thejointchiro @ thejointchiro https://www.youtube.com/thejointcorp @ thejointcorp The Joint Corp. | 16767 N. Perimeter Dr., Suite 240 | Scottsdale, AZ 85260 | (480) 245 - 5960