Due on sale of business

12 Months Ended

Dec. 31, 2019

Notes to Financial Statements

Due on sale of business

7. Due on sale of business

On February 14, 2017, the Company sold its Canadian Rehab Clinic for gross proceeds of CDN$10,000,000, of which CDN$1,500,000 had been retained in an escrow account for a period of up to two years in order to guarantee the warranties provided by the Company in terms of the APA. As of September 30, 2019, CDN$1,055,042 of the escrow had been refunded to the Company and CDN$461,318 had been used to affect building improvements to the premises owned by CCH, for a total reduction of CDN$1,516,360. The remaining escrow balance was CDN$6,454 consisting of accrued interest earned on the escrow of CDN$22,814, less $16,360 utilized for a portion of the building improvements.