Common use of Deferred Expenses Clause in Contracts

Deferred Expenses. Deferred expenses, net of accumulated amortization, at December 31, 2014 of $1,501,593, represent financing costs related to obtaining bond financing, as well as sales and promotional costs associated with the development of ▇▇▇▇▇▇ Communities, Inc. Deferred expenses also include various legal and accounting costs associated with the acquisition of Applewood and architectural costs for the potential expansion of the ▇▇▇▇▇▇ Communities, Inc. properties as well as expenses incurred towards the purchase of nursing facility bed licenses. The promotional deferred expenses are being amortized over the estimated lives of the initial residents when the units were placed in service. The deferred financing costs are being amortized over the term of the bond agreements.