The failure to achieve the necessary levels of profitability and cash flows or obtain additional funding would detrimental to the Company. The consolidated financial statements do not include any adjustments that might necessary if the Company is unable to continue as a going concern. 3. ACQUISITIONS OF CONSOLIDATED PROPERTIES The Company did not acquire any properties during the year ended December 31, 2015. Property acquisitions for the year ended December 31, 2014 are as follows: Date Purchase Debt Acquired Property Name Location Price Assumed(5) January Scottsburg Scottsburg, 27, 2014 Healthcare Center Indiana $ 112,500 $ 3,480,000 (1) February Southern Hills Tulsa, 2014 Retirement Center Oklahoma 2,000,000 - May 19, Goodwill Nursing Macon, 2014 Home Georgia 800,000 4,813,346 Edwards Redeemer Oklahoma September Health & City, 16, 2014 Rehabilitation Oklahoma 491,487 2,254,581 (2) September Providence of Sparta Sparta, 16, 2014 Nursing Home Georgia 61,930 2,775,000 (3) Providence of September Greene Pointe Union Point, 16, 2014 Healthcare Center Georgia 73,253 2,875,000 (4) September Meadowview 30, 2014 Healthcare Center Seville, Ohio 3,000,000 - (1) The purchase price for this property included the issuance of 150,000 shares of the common stock valued Company’s at $112,500. (2) The purchase price for this property was paid through forgiveness of an advance owed to the Company by Christopher Brogdon. (3) The purchase price for this property included the issuance of 61,930 shares of the common stock valued Company’s at $61,930. (4) The purchase price for this property included the issuance of 73,253 shares of the common stock valued Company’s at $73,253. (5) Does not include new financing in the form of unsecured subordinated debt. F-77
The failure to achieve the necessary levels of profitability and cash flows or obtain additional funding would detrimental to the Company. The consolidated financial statements do not include any adjustments that might necessary if the Company is unable to continue as a going concern. 3. ACQUISITIONS OF CONSOLIDATED PROPERTIES The Company did not acquire any properties during the year ended December 31, 2015. Property acquisitions for the year ended December 31, 2014 are as follows: Date Acquired Property Name Location Purchase Price Debt Assumed(5) January 27, 2014 Scottsburg Healthcare Center Scottsburg, Indiana $ 112,500 (1) $ 3,480,000 February 2014 Southern Hills Retirement Center Tulsa, Oklahoma 2,000,000 - May 19, 2014 Goodwill Nursing Home Macon, Georgia 800,000 4,813,346 September 16, 2014 Edwards Redeemer Health & Rehabilitation Oklahoma City, Oklahoma 491,487 (2) 2,254,581 September 16, 2014 Providence of Sparta Nursing Home Sparta, Georgia 61,930 (3) 2,775,000 September 16, 2014 Providence of Greene Pointe Healthcare Center Union Point, Georgia 73,253 (4) 2,875,000 September 30, 2014 Meadowview Healthcare Center Seville, Ohio 3,000,000 - (1) The purchase price for this property included the issuance of 150,000 shares of the Company’s common stock valued at $112,500. (2) The purchase price for this property was paid through forgiveness of an advance owed to the Company by Christopher Brogdon. (3) The purchase price for this property included the issuance of 61,930 shares of the Company’s common stock valued at $61,930. (4) The purchase price for this property included the issuance of 73,253 shares of the Company’s common stock valued at $73,253. (5) Does not include new financing in the form of unsecured subordinated debt. F-77
4-15-16-10k.docx