The following discussion and analysis of our financial condition and results of operations should be read in conjunction with our unaudited condensed consolidated financial statements and related notes included in this Quarterly Report on Form 10-Q and the audited consolidated financial statements and notes thereto as of and for the year ended December 31, 2025 and the related Management’s Discussion and Analysis of Financial Condition and Results of Operations, both of which are contained in our Annual Report on Form 10-K for the year ended December 31, 2025, filed with the SEC on March 13, 2026. Overview We are a growing franchisor that uses a private pay, non-insurance, cash-based model. We will continue our franchised focused expansion of chiropractic clinics in key markets throughout North America, and potentially abroad, as 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. Key Performance Measures. We receive monthly performance reports from our system and our clinics that include key performance indicators per clinic, including gross sales, comparable same-store sales growth, or “Comp Sales,” number of new patients, conversion percentage and membership attrition. In addition, we review monthly reporting related to system-wide sales, clinic openings, clinic license sales, Adjusted EBITDA (Refer to Non-GAAP Financial Measures for more information on Adjusted EBITDA) and various earnings metrics in the aggregate and per clinic. We believe these indicators provide us with useful data with which to measure our performance and to measure our franchisees’ and clinics’ performance. Comp Sales include the sales from both company-owned or managed clinics and franchised clinics that in each case have been open for at least 13 full months and exclude any clinics that have closed. System-wide sales include sales at all clinics, whether operated by us or by franchisees. While franchised clinic sales are not recorded as revenues by us, management believes the information is important in understanding the overall brand’s financial performance, because these sales are the basis on which we calculate and record royalty fees and are indicative of the financial health of the franchisee base. For the three months ended June 30, 2026, compared to the prior year period: •Comp sales of clinics that have been open for at least 13 full months decreased 2.8%; and •System-wide sales for all clinics open for any amount of time decreased 3.7% to $128.0 million. Key Clinic Development Trends. As of June 30, 2026, we and our franchisees operated or managed 941 clinics, of which 896 were operated or managed by franchisees and 45 were operated as company-owned or managed clinics. Our franchisees opened five clinics in the second quarter of 2026, compared to seven clinics in the second quarter of 2025. Our current strategy is to grow through the sale and development of additional franchises. After evaluating options for improvement, during 2023, our Board of Directors authorized management to initiate a plan to refranchise or sell the majority of our company-owned or managed clinics. During the third quarter of 2024, we expanded the refranchising plan to include the full portfolio of our company-owned or managed clinics, marketing the clinics in large clusters grouped primarily by geographic location. This refined strategy will leverage our greatest strength – our capacity to build a franchise – to drive long-term growth for both our franchisees and The Joint as a public company. We have created a robust framework for the refranchising effort, organizing clinics into clusters, and generating comprehensive disclosure packets for marketing efficiency. We had given initial preference to existing franchisees and, in the third quarter of 2024, we expanded the marketing efforts to larger multi-unit, multi-brand operators and certain private equity firms interested in purchasing and operating large market-based clinic clusters and have received significant interest to date in most markets. During the first quarter of 2025, we received draft letters of intent (“LOIs”) for our full portfolio of company-owned or managed clinics. During the second quarter of 2025, we refranchised 37 clinics. During the third quarter of 2025, we refranchised one clinic and we continue to remain actively engaged in refranchising the balance of the corporate portfolio. The largest cluster remaining in the corporate portfolio is the Southern California region. On June 30, 2025, we closed on the sale of 31 company-owned or managed clinics and associated franchise licenses in Arizona and New Mexico to an existing franchisee, Joint Ventures, LLC, in exchange for $8.3 million in cash and the regional developer territory rights of the Northwest region. We carried an upfront regional developer fee liability balance associated with this transaction of $42 thousand, representing the unrecognized fee collected upon the execution of the regional developer agreement. We accounted for the reacquisition of the regional developer rights as a release of liability and were included as part of the total consideration received to calculate the gain or loss on the sale. Losses on the sale were included with the loss on the sale of assets included in Net loss on disposition or impairment from discontinued operations. As part of the sale, Joint Ventures, LLC agreed to 28 Table of Contents open another 10 clinics in the same region. Additionally, on June 23, 2025, we closed the sale of five clinics along with future development rights in the Kansas City region to an existing franchisee, Chiro 93 LLC. On December 5, 2025, we entered into an Asset Purchase Agreement with Addisco Value, LLC, a North Carolina limited liability company, Triangle Chiropractic Associates P.C., a North Carolina professional corporation, and Bluffton TJ, LLC, a South Carolina limited liability company, collectively as buyers, pursuant to which we will sell the assets of, and grant franchise rights to, 22 company-owned or managed clinics located in Virginia, North Carolina and South Carolina for an aggregate purchase price of approximately $1.5 million, subject to certain adjustments. In mid-December 2025, the buyers assumed business operations under Management Service Agreements that will remain in effect until lease reassignments are completed to permit ownership transfer. During the quarter ended June 30, 2026, we closed on the sale of one clinic included in the transaction. As of June 30, 2026, the transaction as a whole had not officially closed and therefore, the net assets and liabilities of the remaining clinics remain in our consolidated balance sheets. On April 20, 2026, we entered into the Elite Chiro Group Purchase Agreement with Elite Chiro Group, pursuant to which we will sell to Elite Chiro Group the assets of, and grant franchise rights to, 45 company-owned or managed clinics located in Southern California for an aggregate purchase price of $2.3 million, subject to certain adjustments. The Purchase Price includes prorated franchise fees pursuant to 45 separate franchise agreements to be entered into between us and Elite Chiro Group and the non-exclusive development rights for 10 clinics to be developed in the metropolitan statistical areas of a development area to be agreed upon by us and Elite Chiro Group in accordance with the schedule set forth in the Elite Chiro Group Purchase Agreement. The closing of each clinic as part of the Elite Chiro Group Transaction is expressly conditioned upon the assignment of the existing lease for such clinic. On April 27, 2026, we closed on the sale of 13 clinics included in the Elite Chiro Group Transaction, at which time ownership of such clinics transferred to Elite Chiro Group. On April 27, 2026, Elite Chiro Group also assumed business operations for the remaining 32 clinics included in the Elite Chiro Group Transaction pursuant to a Management Service Agreement. During the quarter ended June 30, 2026, we closed on the sale of 15 additional clinics included in the Elite Chiro Group Transaction. As of June 30, 2026, the Elite Chiro Group Transaction as a whole had not officially closed and therefore, the net assets and liabilities of the remaining clinics remain in our consolidated balance sheets. On June 28, 2026, we entered into an Asset Purchase Agreement with Vigeo, LLC (“Vigeo APA”), a California limited liability company, as buyer, pursuant to which we will sell the assets of, and grant franchise rights to, four company-owned or managed clinics located in Northern California for an aggregate purchase price of $400 thousand. Pursuant to the Vigeo APA, the buyer will pay $150 thousand of the purchase price as a down payment upon the close of the Vigeo APA, and will pay the remaining balance of the purchase price pursuant to separate promissory notes and corresponding security agreements. The closing of each clinic as part of the transaction is expressly conditioned upon the assignment of the existing lease for such clinic. On March 31, 2026, we acquired the regional developer territory rights from one of our regional developers. We carried an upfront regional developer fee liability balance associated with this transaction of $37 thousand, representing the unrecognized fee collected upon the execution of the regional developer agreement. During the quarter ended June 30, 2026, we acquired the regional developer territory rights from three of our regional developers. We carried an upfront regional developer fee liability balance associated with these transactions of $80 thousand, representing the unrecognized fee collected upon the execution of the regional developer agreement. Our goal will be to generate significant processes that will provide us with value creating capital allocation opportunities. These opportunities could include, but are not limited to, reinvestment in the brand and related marketing, continued investment in our IT platforms, the repurchase of regional development territories, certain merger or acquisition opportunities and/or additional stock repurchase programs. The number of franchise licenses sold for the second quarter of 2026 was 10, compared with 13 licenses sold for the second quarter of 2025. We ended the second quarter of 2026 with 11 regional developers. We will continue to leverage the power of the regional developer program to accelerate the number of clinics sold, and eventually opened, across the country. We believe that we continue to have a sound business concept and will benefit from the fundamental changes taking place in the manner in which Americans access chiropractic care and their growing interest in seeking effective, affordable natural solutions for general wellness. These trends join with the preference we have seen among chiropractic doctors to reject the insurance-based model resulting in a combination that benefits the consumer and the service provider alike. We believe that these forces create an important opportunity to accelerate the growth of our network. 29 Table of Contents Significant Events and/or Recent Developments Recent events that may impact our business include unfavorable global economic or political conditions, continued labor shortages, elevated gas prices, and inflation and other cost increases. We anticipate that 2026 will continue to be a volatile macroeconomic environment. The primary inflationary factor affecting our operations is labor costs. Beginning in 2024 and continuing into 2026, clinics owned or managed by us or our franchisees were negatively impacted by labor shortages and wage increases, which increased our general and administrative expenses. Further, should we fail to continue to increase our wages competitively in response to increasing wage rates, the quality of our workforce could decline, causing our patient service to suffer. While we anticipate that these continued headwinds can be partially mitigated by pricing actions, there can be no assurance that we will be able to continue to take such pricing actions. A continued increase in labor costs could have an adverse effect on our operating costs, financial condition and results of operations. In addition, although lowered slightly in recent months, the expectation that interest rates will continue to remain elevated may adversely affect patients’ financial conditions, resulting in reduced spending on our services. While the impact of these factors continues to remain uncertain, we will continue to evaluate the extent to which these factors will impact our business, financial condition, or results of operations. These and other uncertainties with respect to these recent events could result in changes to our current expectations. Stock Repurchase Program On June 3, 2025, our Board of Directors approved the 2025 SRP to repurchase up to $5.0 million of our common stock, par value $0.001 per share, from time to time until June 3, 2027 or such other date as we have exhausted, or the Board of Directors otherwise terminates, the repurchase authorization. The timing, volume, price, and terms of the repurchases will depend on market and business conditions, applicable legal requirements, and other factors. The repurchases may be made on the open market, in privately negotiated transactions, or in such other manner (e.g., accelerated share repurchase transactions, block trades, derivatives, or otherwise) that complies with the terms of applicable federal and state securities laws and regulations. On November 4, 2025, the Board of Directors authorized an additional $12.0 million under the 2025 SRP and extended the repurchase date through November 4, 2027. During the first half of 2026, we repurchased 219,293 shares of our common stock for approximately $1.8 million. Shares repurchased during the first half of 2026 represented 1.6% of outstanding common stock at December 31, 2025. All shares of common stock that were repurchased are held as treasury stock. As of June 30, 2026, we had a remaining $3.8 million authorized for repurchasing shares of our common stock under the 2025 SRP. Factors Affecting Our Performance Our operating results may fluctuate significantly as a result of a variety of factors, including the timing of new clinic sales, openings, closures, markets in which they are contained and related expenses, general economic conditions, cost inflation, labor shortages, consumer confidence in the economy, consumer preferences, competitive factors, and disease epidemics and other health-related concerns. Critical Accounting Policies and Estimates There were no changes in our critical accounting policies and estimates during the three months ended June 30, 2026, from those set forth in “Critical Accounting Policies and Estimates” in our Annual Report on Form 10-K for the year ended December 31, 2025. Results of Operations The following discussion and analysis of our financial results encompasses the results of our Franchise Operations business segment for the three and six months ended June 30, 2026, compared with the three and six months ended June 30, 2025. All financial results and metrics discussed below are on a continuing operations basis. 30 Table of Contents Total Revenues - Three Months Ended June 30, 2026 Compared with Three Months Ended June 30, 2025 Components of revenues were as follows: Three Months Ended June 30, 2026 2025 Change from Prior Year Percent Change from Prior Year Revenues: Royalty fees $ 8,327,549 $ 8,133,121 $ 194,428 2.4 % Franchise fees 750,587 768,100 (17,513) (2.3) Advertising fund revenue 3,715,837 2,332,695 1,383,142 59.3 IT-related income and software fees 1,547,331 1,481,661 65,670 4.4 Other revenues 840,610 554,692 285,918 51.5 Total revenues $ 15,181,914 $ 13,270,269 $ 1,911,645 14.4 Total revenues increased by $1.9 million, primarily due to the continued expansion and revenue growth of our franchise base and included: •Royalty fees and IT-related income and software fees increased due to an increase in the number of franchised clinics in operation during the current period. As of June 30, 2026 and 2025, there were 896 and 885 franchised clinics in operation, respectively. •Advertising fund revenue increased due to additional funds contributed to the National Marketing Fund by our franchisees, in addition to the historical 2% of gross sales, that initiated in the fourth quarter of 2025. •Other revenues increased primarily due to an increase in sponsorship revenue related to our annual conference held in April 2026. Total Revenues - Six Months Ended June 30, 2026 Compared with Six Months Ended June 30, 2025 Components of revenues were as follows: Six Months Ended June 30, 2026 2025 Change from Prior Year Percent Change from Prior Year Revenues: Royalty fees $ 16,359,838 $ 16,204,107 $ 155,731 1.0 % Franchise fees 1,895,655 1,596,619 299,036 18.7 Advertising fund revenue 7,362,920 4,640,197 2,722,723 58.7 IT-related income and software fees 3,082,232 2,943,628 138,604 4.7 Other revenues 1,301,502 963,309 338,193 35.1 Total revenues $ 30,002,147 $ 26,347,860 $ 3,654,287 13.9 Total revenues increased by $3.7 million, primarily due to the continued expansion and revenue growth of our franchise base and included: •Royalty fees and IT-related income and software fees increased due to an increase in the number of franchised clinics in operation during the current period. •Franchise fees increased primarily due to the impact of accelerated revenue recognition resulting from terminated franchise license agreements and related fees, with 36 and 32 franchise license agreements terminated during the six months ended June 30, 2026 and 2025, respectively. 31 Table of Contents •Advertising fund revenue increased due to additional funds contributed to the National Marketing Fund by our franchisees, in addition to the historical 2% of gross sales, that initiated in the fourth quarter of 2025. •Other revenues increased primarily due to an increase in sponsorship revenue related to our annual conference held in April 2026. Cost of Revenues Cost of Revenues 2026 2025 Change from Prior Year Percent Change from Prior Year Three Months Ended June 30, $ 2,477,250 $ 2,772,607 $ (295,357) (10.7) % Six Months Ended June 30, 5,199,905 5,744,733 (544,828) (9.5) For the three and six months ended June 30, 2026, as compared with the three and six months ended June 30, 2025, the total cost of revenues decreased primarily due to a reduction in regional developer royalties driven by the five regional developer territory rights acquired since June 30, 2025. Selling and Marketing Expenses Selling and Marketing Expenses 2026 2025 Change from Prior Year Percent Change from Prior Year Three Months Ended June 30, $ 4,886,151 $ 3,483,844 $ 1,402,307 40.3 % Six Months Ended June 30, 8,603,055 6,988,994 1,614,061 23.1 For the three and six months ended June 30, 2026, as compared with the three and six months ended June 30, 2025, selling and marketing expenses increased due to an increase in expenses associated with our national marketing campaign efforts, which began late in the fourth quarter of 2025. Depreciation and Amortization Expenses Depreciation and Amortization Expenses 2026 2025 Change from Prior Year Percent Change from Prior Year Three Months Ended June 30, $ 422,861 $ 402,295 $ 20,566 5.1 % Six Months Ended June 30, 819,554 764,225 55,329 7.2 Depreciation and amortization expenses increased for the three and six months ended June 30, 2026, as compared to the three and six months ended June 30, 2025, primarily due to depreciation expenses related to internal use software enhancements and developments, including the launch of our new mobile app during the third quarter of 2025. General and Administrative Expenses General and Administrative Expenses 2026 2025 Change from Prior Year Percent Change from Prior Year Three Months Ended June 30, $ 7,556,216 $ 7,745,251 $ (189,035) (2.4) % Six Months Ended June 30, 14,641,202 14,660,196 (18,994) (0.1) For the three months ended June 30, 2026, as compared with the three months ended June 30, 2025, general and administrative expenses decreased primarily due to a decrease in payroll and other employee compensation expenses including workers' compensation insurance driven by additional progress in our refranchising strategy, partially offset by an increase in professional services, litigation and acquisition-related expenses. As a percentage of revenue, general and administrative expenses during the three months ended June 30, 2026 and 2025 were 50% and 58%, respectively. 32 Table of Contents For the six months ended June 30, 2026, as compared with the six months ended June 30, 2025, general and administrative expenses decreased primarily due to a decrease in payroll and other employee compensation expenses including workers' compensation insurance driven by additional progress in our refranchising strategy, mostly offset by an increase in professional services, litigation and acquisition-related expenses. As a percentage of revenue, general and administrative expenses during the six months ended June 30, 2026 and 2025 were 50% and 56%, respectively. Included in general and administrative expenses from continuing operations above are expenses of $0.3 million and $0.5 million related to workers’ compensation insurance for the six months ended June 30, 2026 and 2025, respectively, of which we believe that approximately $0.3 million and $0.4 million, respectively, relate to expenses that will not be incurred upon the completion of our refranchising strategy. (Loss) Income from Operations (Loss) Income from Operations 2026 2025 Change from Prior Year Percent Change from Prior Year Three Months Ended June 30, $ (368,657) $ (1,138,167) $ 769,510 67.6 % Six Months Ended June 30, 505,011 (1,816,701) 2,321,712 127.8 Loss from operations decreased by $0.8 million for the three months ended June 30, 2026, compared with the three months ended June 30, 2025. The decrease in the loss was primarily due to: •an increase of $1.9 million in total revenues; •a decrease of $0.3 million in our total cost of revenues; and •a decrease of $0.2 million in general and administrative expenses; partially offset by •an increase of $1.4 million in selling and marketing expenses. Income (loss) from operations increased by $2.3 million for the six months ended June 30, 2026, compared with the six months ended June 30, 2025. The increase from the loss to income was primarily due to: •an increase of $3.7 million in total revenues; and •a decrease of $0.5 million in our total cost of revenues; partially offset by •an increase of $1.6 million in selling and marketing expenses. Other Income, Net Other Income, Net 2026 2025 Change from Prior Year Percent Change from Prior Year Three Months Ended June 30, $ 126,438 $ 159,922 $ (33,484) (20.9) % Six Months Ended June 30, 366,673 345,839 20,834 6.0 For the three months ended June 30, 2026, as compared with the three months ended June 30, 2025, other income decreased primarily due to lower average cash and cash equivalent balances in our money market funds resulting in decreased interest income. For the six months ended June 30, 2026, as compared with the six months ended June 30, 2025, other income increased primarily due to the reversal of a liability related to the employee retention credit funds we received from the Internal Revenue Service in 2023. 33 Table of Contents Income Tax Expense Income Tax Expense 2026 2025 Change from Prior Year Percent Change from Prior Year Three Months Ended June 30, $ 9,108 $ 11,390 $ (2,282) (20.0) % Six Months Ended June 30, 20,220 24,794 (4,574) (18.4) Income tax expense decreased during the three and six months ended June 30, 2026, compared to the three and six months ended June 30, 2025, primarily due to a decrease in estimated state income taxes. Recent Accounting Pronouncements See Note 1, Nature of Operations and Summary of Significant Accounting Policies, to our condensed consolidated financial statements included in this Quarterly Report on Form 10-Q for information regarding recently issued accounting pronouncements that may impact our financial statements. Non-GAAP Financial Measures The table below reconcile net (loss) income to Adjusted EBITDA for the three and six months ended June 30, 2026 and 2025: Three Months Ended June 30, 2026 2025 From Continuing Operations From Discontinued Operations Net Operations From Continuing Operations From Discontinued Operations Net Operations Non-GAAP Financial Data: Net (loss) income $ (251,327) $ 904,348 $ 653,021 $ (989,635) $ 1,082,998 $ 93,363 Net interest income (126,439) — (126,439) (159,922) — (159,922) Depreciation and amortization expense 422,861 1,690 424,551 402,295 17,120 419,415 Income tax expense (benefit) 9,108 (2,559) 6,549 11,390 100,201 111,591 EBITDA 54,203 903,479 957,682 (735,872) 1,200,319 464,447 Stock-based compensation expense 423,180 — 423,180 330,988 — 330,988 Acquisition-related expenses 332,005 — 332,005 — — — Net loss on disposition or impairment 208,093 816,466 1,024,559 4,440 1,752,494 1,756,934 Restructuring costs 113,451 (24,422) 89,029 488,493 198,331 686,824 Litigation expenses 321,693 12,005 333,698 — — — Adjusted EBITDA $ 1,452,625 $ 1,707,528 $ 3,160,153 $ 88,049 $ 3,151,144 $ 3,239,193 34 Table of Contents Six Months Ended June 30, 2026 2025 From Continuing Operations From Discontinued Operations Net Operations From Continuing Operations From Discontinued Operations Net Operations Non-GAAP Financial Data: Net income (loss) $ 851,464 $ 1,100,692 $ 1,952,156 $ (1,495,656) $ 2,556,815 $ 1,061,159 Net interest (income) expense (368,188) — (368,188) (345,839) 238 (345,601) Depreciation and amortization expense 819,554 9,447 829,001 764,225 43,505 807,730 Income tax expense 20,220 179,810 200,030 24,794 203,613 228,407 EBITDA 1,323,050 1,289,949 2,612,999 (1,052,476) 2,804,171 1,751,695 Stock-based compensation expense 703,180 — 703,180 624,929 — 624,929 Acquisition-related expenses 332,005 — 332,005 — — — Net loss on disposition or impairment 233,420 1,194,230 1,427,650 6,413 2,885,852 2,892,265 Restructuring costs 740,338 56,784 797,122 555,577 269,715 825,292 Litigation expenses 346,694 421,775 768,469 — — — Adjusted EBITDA $ 3,678,687 $ 2,962,738 $ 6,641,425 $ 134,443 $ 5,959,738 $ 6,094,181 Adjusted EBITDA from continuing operations consists of net loss from continuing operations before interest, income taxes, depreciation and amortization, acquisition-related expenses (which includes contract termination costs associated with reacquired regional developer rights), stock-based compensation expense, bargain purchase gain, (gain) loss on disposition or impairment, costs related to restatement filings, restructuring costs (consisting of non-recurring refranchising costs of all company-owned or managed clinics and non-recurring expenses related to changes to our senior leadership team), and litigation expenses (consisting of legal and related fees for specific proceedings that arise outside of the normal course of our business). We have provided Adjusted EBITDA, a non-GAAP measure of financial performance, because it is commonly used for comparing companies in our industry. You should not consider Adjusted EBITDA as a substitute for operating profit as an indicator of our operating performance or as an alternative to cash flows from operating activities as a measure of liquidity. We may calculate Adjusted EBITDA differently from other companies. We believe that the use of Adjusted EBITDA provides an additional tool for investors to use in evaluating ongoing operating results and trends and in comparing our financial measures with other outpatient medical clinics, which may present similar non-GAAP financial measures to investors. In addition, you should be aware when evaluating Adjusted EBITDA in the future we may incur unadjusted expenses similar to those currently excluded when calculating these measures. Our presentation of these measures should not be construed as an inference that our future results will be unaffected by unusual or non-recurring items. Our computation of Adjusted EBITDA may not be comparable to other similarly titled measures computed by other companies, because all companies do not calculate Adjusted EBITDA in the same manner. Our management does not consider Adjusted EBITDA in isolation or as an alternative to financial measures determined in accordance with GAAP. The principal limitation of Adjusted EBITDA is that it excludes significant expenses and income that are required by GAAP to be recorded in our financial statements. These limitations include, but are not limited to, the following: •Adjusted EBITDA does not reflect our cash expenditures, or future requirements, for capital expenditures or contractual commitments; •Adjusted EBITDA does not reflect changes in, or cash requirements for, our working capital needs; •While not included in the presented periods, Adjusted EBITDA does not reflect the interest expense, or the cash requirements necessary to service interest or principal payments, on our debts; •Although depreciation and amortization are non-cash charges, the assets being depreciated and amortized will often have to be replaced in the future, and Adjusted EBITDA does not reflect any cash requirements for such replacements; •Adjusted EBITDA does not reflect the (gain) loss on disposition or impairment, which represents the impairment of assets as of the reporting date. We do not consider this to be indicative of our ongoing operations; and 35 Table of Contents •While not included in the presented periods, Adjusted EBITDA would not reflect any bargain purchase gain, which would represent the excess of the fair value of net assets acquired over the purchase consideration. Because of these limitations, Adjusted EBITDA should not be considered in isolation or as a substitute for performance measures calculated in accordance with GAAP. We compensate for these limitations by relying primarily on our GAAP results and using Adjusted EBITDA only supplementally. You should review the reconciliation of Net income (loss) to Adjusted EBITDA above and not rely on any single financial measure to evaluate our business. Liquidity and Capital Resources Sources of Liquidity As of June 30, 2026, we had unrestricted cash and short-term bank deposits of $22.2 million. We generated $0.7 million of cash flow from operating activities from both continuing and discontinued operations in the six months ended June 30, 2026. While unfavorable global economic or political conditions create potential liquidity risks, as discussed further below, we believe that our existing cash and cash equivalents, our anticipated cash flows from operations and amounts available under our line of credit will be sufficient to fund our anticipated operating and investment needs for at least the next 12 months. While the interruptions, delays and/or cost increases resulting from political instability and geopolitical tensions, adverse weather conditions, economic weakness, inflationary pressures, elevated interest rates, elevated gas prices and other factors have created uncertainty as to general economic conditions for the remainder of 2026, as of the date of this Quarterly Report on Form 10-Q, we believe that we have adequate capital resources and sufficient access to external financing sources to satisfy our current and reasonably anticipated requirements for funds to conduct our operations and meet other needs in the ordinary course of our business. For the remainder of 2026, we expect to use or redeploy our cash resources to support our business within the context of prevailing market conditions, which, given the ongoing uncertainties described above, could rapidly and materially deteriorate or otherwise change. Our long-term capital requirements, primarily for corporate initiatives, could be dependent on our ability to access additional funds through the debt and/or equity markets. If the equity and credit markets deteriorate, including as a result of economic weakness, political unrest or war, or any other reason, it may make any necessary equity or debt financing more difficult to obtain in a timely manner and on favorable terms, if at all, and if obtained, it may be more costly or more dilutive. From time to time, we consider and evaluate transactions related to our portfolio and capital structure, including debt financings, equity issuances, purchases and sales of assets, and other transactions. Given the ongoing uncertainties described above, the levels of our cash flows from operations for the remainder of 2026 may be impacted. There can be no assurance that we will be able to generate sufficient cash flows or obtain the capital necessary to meet our short and long-term capital requirements. Analysis of Cash Flows Net cash provided by operating activities for both continuing and discontinued operations increased by $3.5 million to $0.7 million for the six months ended June 30, 2026, compared to net cash used in operating activities of $2.8 million for the six months ended June 30, 2025. The increase in net cash used in operating activities was primarily attributable to a change in accrued expenses of $3.9 million primarily related to the settlement of a medical injury claim during the first quarter of 2025, which was partially offset by a related change in accounts receivable of $1.0 million for insurance recoveries, a change in payroll liabilities of $1.1 million related to the increased payout of our annual bonuses, a change in prepaid expenses and other current assets of $0.9 million related to lower insurance premiums due to fewer company-owned or managed clinics in 2026 as compared to 2025, and a change in other liabilities related to our asset purchase agreements that are pending final closure. Net cash provided by investing activities was $0.7 million for the six months ended June 30, 2026, compared to net cash provided by investing activities of $6.9 million for the six months ended June 30, 2025. For the six months ended June 30, 2026, this included proceeds from sales of clinics of $1.2 million, partially offset by purchases of property and equipment of $0.5 million. For the six months ended June 30, 2025, this included proceeds from sales of clinics of $7.8 million, partially offset by purchases of property and equipment of $0.8 million. Net cash used in financing activities for the six months ended June 30, 2026 was $1.9 million, compared to net cash provided by financing activities of $0.9 million for the six months ended June 30, 2025. For the six months ended June 30, 2026, net cash used in financing activities primarily included $1.8 million of common stock purchases under the 2025 SRP. For the six months ended June 30, 2025, net cash provided by financing activities included cash receipts from stock option exercises of $0.9 million. 36 Table of Contents Capital Composition As discussed in the “Significant Events and/or Recent Developments” section of this MD&A, our Board of Directors approved the 2025 SRP to repurchase up to $17.0 million of our common stock. During the six months ended June 30, 2026, we repurchased 219,293 shares under the 2025 SRP. Refer to the “Significant Events and/or Recent Developments” section above for more information and Part II, Item 2, "Unregistered Sales of Equity Securities and Use of Proceeds" of this Quarterly Report on Form 10-Q for our monthly repurchase activity during the three months ended June 30, 2026. Off-Balance Sheet Arrangements During the six months ended June 30, 2026, we did not have any relationships with unconsolidated organizations or financial partnerships, such as structured finance or special purpose entities that would have been established for the purpose of facilitating off-balance sheet arrangements.