On the Company entered into a Credit and Security Agreement (the “Credit Agreement”), and signed a revolving credit note payable to the lender. Under the Credit Agreement, the Company is able to borrow up to an aggregate of under revolving loans. Interest on the unpaid outstanding principal amount of any revolving loans is at a rate equal to per annum, provided, that the minimum amount of interest paid in the aggregate on all revolving loans granted over the term of the Credit Agreement is Interest is due and payable on the last day of each fiscal quarter in an amount determined by the Company, but not less than The lender’s lending commitments under the Credit Agreement terminate in unless sooner terminated in accordance with the provisions of the Credit Agreement. The Company intends to use the credit facility for general working capital needs. The Company has drawn of the available under the Credit Agreement.

 

  

On the Company sold the assets of of its clinics in the Chicago area for a nominal amount to a partnership that includes existing Company franchisees. The purchaser will continue to operate the clinics as franchised locations pursuant to a franchise agreement. The Company concurrently sold to the limited liability company regional developer rights to Chicago for Pursuant to the regional developer agreement, the limited liability company has agreed to open a minimum of Chicago area clinics over the next years, with plans to open to clinics over the next months. The Company has closed the remaining Chicago-area clinics, as well as Company-managed clinics in upstate New York. These assets were deemed as held for sale as of and accordingly the Company recognized a loss on impairment of approximately million.