Note 15 – Subsequent Events

Debentures Amendment and Waiver Agreement

On October 25, 2023, the Company entered into an Amendment and Waiver Agreement (the “Amendment Agreement”) with the holders of its March Debenture and 2018 Debentures, which are more fully described in Note 6. As of September 30, 2023, there was $8.2 million principal amount of these debentures outstanding, including mandatory default amounts. Under the Amendment Agreement, all defaults under these debentures were waived and the maturity dates of these debentures were extended to December 31, 2025. Certain other amendments were also made in the terms of these debentures. As a result of the Amendment Agreement, the Company does not expect to recognize default interest in future periods, subject to remaining in compliance with covenants and other obligations.

Opening of Myrtle Nonresidential Office-Based Opiate Treatment Facility

On November 1, 2023, Myrtle began accepting patients at its recently opened Nonresidential Office-Based Opiate Treatment Facility (“OBOT”). The OBOT is located adjacent to Myrtle’s alcohol and drug treatment facility in Oneida, Tennessee and supplements the existing residential rehabilitation and detoxification services offered at Myrtle, which is more fully discussed in Note 1.