appendix F-9 .... AAC commons = FTER commons!!!!!!!!!!!!!
1. Description of Business AAC Holdings, Inc., a Nevada corporation (collectively with its subsidiaries, the“Company”
or “Holdings”), was incorporated on February 12, 2014 for the
purpose of acquiring the common stock of American Addiction Centers, Inc., a Nevada corporation incorporated on February 27, 2007 (“AAC”, formerly known as Forterus, Inc.) and to engage in certain reorganization transactions on April 15, 2014. In these Notes to Consolidated Financial Statements of AAC Holdings, Inc. and Subsidiaries, unless otherwise indicated, the “Company” refers, prior to April 15, 2014, to American Addiction Centers, Inc., and, as of and after April 15, 2014, to AAC Holdings, Inc., in each case together with its consolidated subsidiaries. Accordingly, all financial information herein relating to periods prior to the completion of the Reorganization Transactions is that of AAC and its consolidated subsidiaries. See further discussion in Note 18. The Company, headquartered in Brentwood, Tennessee,
provides substance abuse treatment services for individuals with drug and alcohol addiction. The Company also provides treatment services for clients struggling with
behavioral health disorders, including disorders associated with obesity. Currently, the Company, through its subsidiaries, operates six substance abuse treatment facilities located in Texas, California, Florida and Nevada and a facility in Tennessee that provides treatment services for men and women who struggle with obesity-related behavioral disorders. During 2012 the Company had arrangements with four treatment facilities in California to provide addiction and chemical dependency services to clients sourced by the Company. The Company discontinued using three of these treatment facilities in the second half of 2012 and the final arrangement was
terminated in April 2013. On March 7, 2012, the Greenhouse treatment facility in Texas obtained its license for 70 residential beds and began accepting clients. On
January 1, 2013, the Desert Hope treatment facility in Las Vegas, Nevada obtained its license for 148 residential beds and began accepting clients. In the third quarter of
2013, the Company, through a wholly owned subsidiary, began providing laboratory services to some of the Company’s treatment facilities.
