What is the state of formation of HealthSource Chiropractic, LLC?

This summary of significant accounting polices of HealthSource Chiropractic, LLC, formerly Healthsource Chiropractic, Inc. (the Company), is presented to assist in understanding the Company's financial statements. The financial statements and notes are the representation of the company's management who is responsible for their integrity and objectivity. These accounting policies conform to generally accepted accounting principles and have been consistently applied in the preparation of the financial statements.

Business Activity

The Company is an Ohio Limited Liability Company located in Avon, Ohio and is in the business of selling chiropractic franchises. The Company began selling "HealthSource Chiropractic" franchises in 2006. The company sells franchises throughout the United States.

On March 11^th, 2022 the shareholders of the Company each contributed 100% of their beneficial interest to ZCS Holdings, Inc. pursuant to a Plan of Reorganization and immediately elected to be treated as a Qualified Subchapter S Subsidiary (QSub). On March 15^th, 2022 HealthSource Chiropractic, Inc. converted to HealthSource Chiropractic, LLC pursuant to state law. On March 20^th, 2022, HealthSource Chiropractic, LLC issued Class B Units to a new member, FW-HES Holdings, LLC (Franworth). As a result, ZCS Holdings, Inc. has a direct interest of 70% while Franworth has a direct interest of 30%.

Source: Item 23 — Receipts (FDD pages 77–282)