Notes Receivable	12 Months Ended
Dec. 31, 2016
Notes Receivable
Notes Receivable	5. NOTES RECEIVABLE Note Receivable – Receiver for Healthcare Management of Oklahoma, LLC On May 10, 2016, the Company obtained a Court Order appointing a receiver to control and operate the skilled nursing facility in Southern Hills, Tulsa. The former lease operator represented that it was unable to meet the financial commitments of the facility, including the payment of rent, payroll, and other operating requirements. The transition to the receiver resulted in our engaging a turnaround effort to restore viable operations at the facility. The Court ordered the Company to provide the receiver a revolving line of credit not to exceed $250,000 of which the Company advanced $150,000 during 2016. The receiver is to repay the revolving line of credit from the operation or sale of the facility or other sources. The Company has determined the note as no longer being collectible based on the ability to repay and has recorded bad debt expense of $150,000 in the consolidated statements of operations for the year ended December 31, 2016. Note Receivable - Healthcare Management of Oklahoma, LLC On July 15, 2014, the Company entered into a $363,404 revolving line of credit with Healthcare Management of Oklahoma, LLC (“HMO”), the lease operator of the skilled nursing facility in Southern Hills, Tulsa, to be utilized for working capital needs related to the operation of the Southern Hills skilled nursing facility. The note matured on July 14, 2015 and earned interest at a fixed rate of 8%. The note was secured by accounts receivable and third-party personal guarantees. On March 1, 2015, the Company entered into a revolving loan, replacing the note described above, in the amount of $250,000 which earns interest at a fixed rate of 8%. All unpaid principal and interest was due to the Company on February 29, 2016. The note was secured by all tangible and intangible property of the borrower. On July 22, 2015, the revolving loan was amended to increase the principal amount to $350,000. During 2015, advances related to this note totaled $350,000 of which $150,000 was advanced as cash with the remaining $200,000 advanced to fund a security deposit held by the Company and make lease payments to the Company. Notwithstanding the fact that HMO has affirmed its obligation under the note, as of December 31, 2015, the Company determined this note to be no longer collectible based on ability to repay. Accordingly, the Company recorded a bad debt expense of $150,000 and reversed the security deposit and rent revenue transactions totaling $200,000 within the consolidated financial statements for the year ended December 31, 2015.

Notes Receivable

12 Months Ended

Dec. 31, 2016

5. NOTES RECEIVABLE

Note Receivable – Receiver for Healthcare Management of Oklahoma, LLC

On May 10, 2016, the Company obtained a Court Order appointing a receiver to control and operate the skilled nursing facility in Southern Hills, Tulsa. The former lease operator represented that it was unable to meet the financial commitments of the facility, including the payment of rent, payroll, and other operating requirements. The transition to the receiver resulted in our engaging a turnaround effort to restore viable operations at the facility. The Court ordered the Company to provide the receiver a revolving line of credit not to exceed $250,000 of which the Company advanced $150,000 during 2016. The receiver is to repay the revolving line of credit from the operation or sale of the facility or other sources. The Company has determined the note as no longer being collectible based on the ability to repay and has recorded bad debt expense of $150,000 in the consolidated statements of operations for the year ended December 31, 2016.

Note Receivable - Healthcare Management of Oklahoma, LLC

On July 15, 2014, the Company entered into a $363,404 revolving line of credit with Healthcare Management of Oklahoma, LLC (“HMO”), the lease operator of the skilled nursing facility in Southern Hills, Tulsa, to be utilized for working capital needs related to the operation of the Southern Hills skilled nursing facility. The note matured on July 14, 2015 and earned interest at a fixed rate of 8%. The note was secured by accounts receivable and third-party personal guarantees.

On March 1, 2015, the Company entered into a revolving loan, replacing the note described above, in the amount of $250,000 which earns interest at a fixed rate of 8%. All unpaid principal and interest was due to the Company on February 29, 2016. The note was secured by all tangible and intangible property of the borrower. On July 22, 2015, the revolving loan was amended to increase the principal amount to $350,000.

During 2015, advances related to this note totaled $350,000 of which $150,000 was advanced as cash with the remaining $200,000 advanced to fund a security deposit held by the Company and make lease payments to the Company. Notwithstanding the fact that HMO has affirmed its obligation under the note, as of December 31, 2015, the Company determined this note to be no longer collectible based on ability to repay. Accordingly, the Company recorded a bad debt expense of $150,000 and reversed the security deposit and rent revenue transactions totaling $200,000 within the consolidated financial statements for the year ended December 31, 2015.