On April 29, 2016, the Company entered into an Asset and Franchise Purchase Agreement under which (i) the Company repurchased from the seller three operating franchises in Albuquerque, New Mexico and (ii) the parties terminated a fourth franchise agreement for an undeveloped franchise (together, the “Repurchase Transaction”). The Company intends to operate the operating franchises as Company-owned clinics. The total consideration for the repurchase transaction was $430,000, $344,000 of which was funded with cash, and $86,000 of which was funded with a promissory note.

 

On May 6, 2016, the Company entered into an Asset and Franchise Purchase Agreement under which the Company repurchased from the seller three operating franchises, two of which are located in Riverside County, California and one of which is located in San Bernardino County, California. The Company intends to operate the three franchises to manage three related clinics. The total consideration for the repurchase transaction was $595,000, $ 495,000 of which was paid in cash and $100,000 of which was funded with a promissory note.