excerpt, "On August 5, 2013, a judgment was entered against NMI Health, Inc. (the “Company”) in favor of plaintiff Applied Nanoscience, Inc., in the District Court of Clark County in Nevada (Case No. A-10-631192-C). The judgment calls for the Company to pay the plaintiff $547,658.64 in principal and interest on certain outstanding promissory notes plus attorneys fees. At this time, the Company is considering the material adverse impact of the judgment on the Company and its ability to continue operations.
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