The aging of the population and increased life expectancies are the primary driving forces behind the growth of the nursing home and assisted living facilities market in the United States. According to the United States Census Bureau, in 2000, there were approximately 35 million Americans aged 65 or older, comprising approximately 13% of the total United States population.

The number of Americans aged 65 or older is expected to climb to approximately 40 million by 2010 and to approximately 54 million by 2020. Furthermore, the number of persons afflicted with Alzheimer’s disease is also expected to grow in the coming years. According to data published in the August 2003 issue of the Archives of Neurology, an AMA publication, this population will increase 13.3% from the current 4.5 million to 5.1 million people by the year 2013.

According to the American Senior Housing Association, there are approximately 16,500 nursing homes with approximately 1.8 million total beds certified to provide Medicare and/or Medicaid services in the United States. On average, approximately 3.5 million people live in nursing homes during the course of a year.

The assisted living industry is highly fragmented and characterized by numerous small operators. The industry has seen significant growth in recent years. According to the American Senior Housing Association Senior Housing Construction Report for 2004, 35% of senior housing properties in the U.S. are assisted living communities, 30% are independent living communities, 25% are senior apartments and 10% are continuing care retirement communities. Moreover, the scope of senior living services varies substantially from one operator to another.

The Company’s assisted living facilities range in size from 20 to 45 units. The Company believes that assisted living services will continue to increase as an attractive alternative to nursing home care because a variety of supportive services and supervision can be obtained in a more independent and less institutional setting. Generally, basic care and support services can be offered more economically in an assisted living facility than either in a nursing home or through home health care assistance.

The Company provides independent living services to seniors who do not yet need assistance or support with activities of daily living, but who prefer the physical and psychological comfort of a residential community that offers health care and other services its independent living services include maintaining the grounds, including trash and snow removal, transportation, social and recreational activities, 24-hour staffing and health care monitoring. The Company also fosters the wellness of its residents by offering health screenings (such as blood pressure checks), periodic special services (such as influenza inoculations), and exercise and fitness classes. Classes are given by health care professionals to keep residents informed about health and disease management. Subject to applicable government regulation, personal care and medical services are available to independent living residents through either the community staff or home care agencies.

Home health care services include four broad categories: home health nursing services, infusion therapy, respiratory therapy, and home medical equipment. The average age of people moving into long-term care facilities will be older than it is today because more older people are staying in their home longer. This demographic observation should fuel the expansion of home-based services.

Operating expenses for the period ended September 30, 2005 were $15.5 million compared to $13.2 million for the period ended September 30, 2004, an increase of $2.3 million or 17.4%.

Income from continuing operations for the nine month period ended September 30, 2005 was $834,070 compared to $337,207 for the same period ended September 30, 2004, an increase of $496,862 or 147.4%.

Interest expense for the period ended September 30, 2005 was $946,370, an increase of $264,031 or 38.7% as compared to the same period in 2004.

The net loss for the nine month period ended September 30, 2005 was $145,920 compared to $160,396 for the same period ended September 30, 2004.