Note 11 - Commitments and Contingencies
|12 Months Ended|
Dec. 31, 2016
|Notes to Financial Statements|
|Commitments and Contingencies Disclosure [Text Block]||
The Company leases its corporate office space and the space for each of the company-owned or managed clinics in the portfolio. During the year ended
2016,the Company assumed
16additional leases for clinic locations. These leases vary in length from
127months and have monthly payments ranging from
Total rent expense for the years ended
Future minimum annual lease payments are as follows:
2016,the Company ceased use of
fiveundeveloped clinic locations from its corporate clinics segment and recognized a liability for lease exit costs incurred based on the remaining lease rental due, reduced by estimated sublease rental income that could be reasonably obtained for the properties. The Company classified all of the approximately
$338,000lease exit liability in other liabilities in the accompanying consolidated balance sheets as of
2016,and related expense in Loss on disposition or impairment in the accompanying consolidated statement of operations for the year ended
In the normal course of business, the Company is party to litigation from time to time.
sixfranchisees who owned a total of
13franchise licenses ("Claimants") filed a Demand for Arbitration against the Company alleging breach of contract, breach of implied covenant of good faith and fair dealing, wrongful termination, fraud, promissory fraud, negligent misrepresentation, and claims under or arising out of violations of Section
31202of the California Franchise Investment Law. The Company vigorously denied liability for all of Claimants' claims and asserted counterclaims against each Claimant for breach of contract, breach of guaranty, among other claims, and sought a declaratory judgment that termination was proper because Claimants failed to adhere to the development schedules in their respective franchise agreements. The Company, through its counterclaim, sought damages for each unopened license, in accordance with the terms of the parties’ franchise agreements. The parties entered into a settlement agreement dated
2016,which included, among other things, a mutual general release of claims. The arbitration was subsequently dismissed with prejudice, based on the parties' stipulation.
The entire disclosure for commitments and contingencies.
Reference 1: http://www.xbrl.org/2003/role/presentationRef