As disclosed in note 4 above, in terms of an APA agreement entered into on October 22, 2024, on January 9, 2025, the Company consummated the acquisition of the Acquired Assets of ERC and certain assumed liabilities.

Edgewater Recovery Center had entered into a settlement agreement with the Department of Justice and the Department of Health and Human Services and the State of Kentucky and the Department of Medicaid Services in Kentucky, relating to false claims submitted to Medicare. The balance of the liability assumed by the Company amounted to a principal of $1,658,105 and accrued interest thereon of $44,614. The balance accrued interest at 4.75% per annum and is repayable in thirteen installments, the first installment of $44,614 was paid prior to the consummation of the acquisition transaction and a further twelve installments commencing on February 1, 2025 to December 1, 2026.

The settlement agreement with the Department of Justice provided for default interest at a rate of 12% per annum, compounded daily upon any event of default, including any missed instalments. On June 1, 2025, the Company was unable to repay the scheduled instalment and thereby triggered the default interest clause. Default interest has been calculated from April 30, 2025, the date the last instalment was paid. 

The Company repaid principal of $159,085 and accrued interest of $31,329 during the year ended December 31, 2025.