Item 1A. Risk Factors
ITEM 1A.
RISK FACTORS.
The Company added the following risk factor in addition to our previously disclosed risk factors in Item 1A contained in Part I of our Annual Report
on Form 10-K for the year ended December 31, 2023, and filed with the SEC on February 29, 2024.
If our noncompetition covenants with employed therapists are nullified, we may lose staff to competitors.
Many of our employed therapists have contractual non-competition agreements and covenants with the Company which, under certain circumstances, limit the
employee's ability to terminate their employment with the Company to perform similar services for competing organizations within a defined geography for a specified period time after such termination. The Federal Trade Commission recently
passed a Rule which purports to prohibit many forms of non-competition agreements with employees and, if the Rule becomes effective in its current form, also would require the Company, subject to certain exceptions, to nullify certain
existing noncompetition agreements with employees. While the Rule is being challenged in federal court and is not effective, if the Rule in its current form or in a substantially similar form becomes effective, the Company could suffer a
loss of staff which could have a material adverse effect on operations.
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