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4. Acquisitions of Consolidated Properties

12 Months Ended

Dec. 31, 2015

4. Acquisitions of Consolidated Properties

3. ACQUISITIONS OF CONSOLIDATED PROPERTIES

The Company did not acquire any properties during the year ended December 31, 2015. Property acquisitions for the year ended December 31, 2014 are as follows:

Date Acquired	Property Name	Location	Purchase Price		Debt Assumed⁽⁵⁾

January 27, 2014	Scottsburg Healthcare Center	Scottsburg, Indiana	$ 112,500	(1)	$ 3,480,000
February 7, 2014	Southern Hills Retirement Center	Tulsa, Oklahoma	2,000,000		-
May 19, 2014	Goodwill Nursing Home	Macon, Georgia	800,000		4,813,346
September 16, 2014	Edwards Redeemer Health & Rehabilitation	Oklahoma City, Oklahoma	491,487	(2)	2,254,581
September 16, 2014	Providence of Sparta Nursing Home	Sparta, Georgia	61,930	(3)	2,775,000
September 16, 2014	Providence of Greene Pointe Healthcare Center	Union Point, Georgia	73,253	(4)	2,875,000
September 30, 2014	Meadowview Healthcare Center	Seville, Ohio	3,000,000		-

(1) The purchase price for this property included the issuance of 150,000 shares of the Company’s common stock valued at $112,500.

(2) The purchase price for this property was paid through forgiveness of an advance owed to the Company by Christopher Brogdon.

(3) The purchase price for this property included the issuance of 61,930 shares of the Company’s common stock valued at $61,930.

(4) The purchase price for this property included the issuance of 73,253 shares of the Company’s common stock valued at $73,253.

(5) Does not include new financing in the form of unsecured subordinated debt.

The allocation of the aggregate purchase prices to the fair value of assets acquired and liabilities assumed for the above acquisitions is as follows:


Assets Acquired:
Cash		$ 43,725
Restricted Cash		44,908
Property and Equipment		27,059,964

		27,148,597

Liabilities Assumed:
Accounts Payable and Accrued Liabilities		(313,736)
Due to Related Parties		(31,199)
Lease Security Deposits		(144,667)
Debt		(16,197,927)
Noncontrolling Interests		(921,898)

		(17,609,427)

Net Assets Acquired		$ 9,539,170

On March 10, 2014, Scottsburg Healthcare Center was sold for $3.6 million under a purchase agreement dated October 9, 2008, as amended and assigned, which resulted in a loss upon disposition of property and equipment of $381,395 for the year ended December 31, 2014. The Company also recognized a loss from operations for the year ended December 31, 2014 approximating $35,000 related to Wood Moss. The Company has presented these results as a component of income from continuing operations.

Total revenues and net income for properties acquired during the year ended December 31, 2014, which are included in our consolidated statements of operations, are as follows:

	2015	2014

Revenues	$ 2,604,103	$ 921,210
Net Income (Loss)	(358,454)	$ 2,828,388	(1)

(1) The purchase price allocation related to the acquisition of Southern Hills Retirement Center resulted in a bargain purchase gain of $3 million.

(2)

The results of operations of acquired properties are included in the consolidated statements of operations beginning on their respective acquisition dates. The following unaudited condensed pro forma financial information presents the results of operations as if all acquisitions in 2014 had taken place on January 1, 2014. The unaudited condensed pro forma information excludes our Scottsburg Healthcare Center disposed on March 10, 2014. The unaudited condensed pro forma financial information was prepared for comparative purposes only and is not necessarily indicative of what would have occurred had the acquisition been made at that time or of results which may occur in the future.

		For the Year Ended December 31, 2014 (unaudited)

Revenues		$ 3,759,679
Net Income		1,769,964
Net Income Attributable to Common Stockholders		1,587,098
Net Income Per Share Attributable to Common Stockholders - Basic		0.08
Net Income Per Share Attributable to Common Stockholders - Diluted		0.07

For the years ended December 31, 2015 and 2014, the Company paid deposits related to potential acquisitions of $100,000 and $500,000, respectively. During 2015, $500,000 on deposit was refunded back to the Company. As of December 31, 2015 and 2014, deposits held by others related to acquisitions totaled $100,000 and $500,000, respectively.