LEGAL SETTLEMENT

12 Months Ended

Dec. 31, 2014

Legal Settlement

LEGAL SETTLEMENT

Note 12 LEGAL SETTLEMENT

The Company’s subsidiary, CompCare de Puerto Rico (“Puerto Rico”) entered into an agreement with MAPRE Life Insurance Company of Puerto Rico (:MAPFRE”) whereby the Company made available to MAPFRE’s Medicare Advantage beneficiaries its network of providers for behavioral, and mental health amongst other services effective December 1, 2008. From that time until August 13, 2012, the Company claimed that overpayments for medical costs were made and requested reimbursement. An arbitration case was filed, and the parties settled on June 12, 2014 for a settlement of $1,150,000, which was received by the Company. This settlement is recorded as part of Other Income on the face of the financial statements. Of the proceeds, $150,000 was paid as fees and $1,000,000 for the repayment of outstanding debt.