Assumed liability

9 Months Ended

Sep. 30, 2025

Assumed Liability

Assumed liability

10. Assumed liability

As disclosed in note 4 above, in terms of an APA agreement entered into on October 22, 2024, on January 9, 2025, the Company consummated the acquisition of the Acquired Assets of ERC and certain assumed liabilities.

Edgewater Recover Center had entered into a settlement agreement with the Department of Justice and the Department of Health and Human Services and the State of Kentucky and the Department of Medicaid Services in Kentucky, relating to false claims submitted to Medicare. The balance of the liability assumed by the Company amounted to a principal of $1,658,105 and accrued interest thereon of $44,614. The balance accrued interest at 4.75% per annum and is repayable in thirteen installments, the first installment of $44,614 was paid prior to the consummation of the acquisition transaction and a further twelve installments commencing on February 1, 2025 to December 1, 2026.

The Company repaid principal of $159,085 and accrued interest of $31,329, totaling $190,414 during the nine months ended September 30, 2025.

	Interest rate			Maturity Date	Principal		Interest		September 30, 2025		December 31, 2024
Assumed liability		4.75	%	December 1, 2026	$	1,499,021	$	29,847	$	1,528,868	$	—
Disclosed as follows
Assumed liability -  current portion									$	909,858	$	—
Assumed liability - long term portion										619,010		—
									$	1,528,868	$	—