Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2024 | Aug. 09, 2024 | |
Document Information [Line Items] | ||
Entity Registrant Name | Regional Health Properties, Inc. | |
Entity Central Index Key | 0001004724 | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2024 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Common Stock, Shares Outstanding | 1,904,028 | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q2 | |
Entity Current Reporting Status | Yes | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity File Number | 001-33135 | |
Entity Tax Identification Number | 81-5166048 | |
Entity Address, Address Line One | 1050 Crown Pointe Parkway | |
Entity Address, Address Line Two | Suite 720 | |
Entity Address, City or Town | Atlanta | |
Entity Address, State or Province | GA | |
Entity Address, Postal Zip Code | 30338 | |
City Area Code | 678 | |
Local Phone Number | 869-5116 | |
Entity Incorporation, State or Country Code | GA | |
Entity Interactive Data Current | Yes | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Common Stock | ||
Document Information [Line Items] | ||
Trading Symbol | RHE | |
Security Exchange Name | NYSEAMER | |
Title of 12(b) Security | Common Stock, no par value | |
10.875% Series A Cumulative Redeemable Preferred Stock | ||
Document Information [Line Items] | ||
Trading Symbol | RHE-PA | |
Security Exchange Name | NYSEAMER | |
Title of 12(b) Security | Series A Redeemable Preferred Stock, no par value |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
ASSETS | ||
Property and equipment, net | $ 39,866 | $ 40,398 |
Asset held for sale, net | 4,851 | 4,939 |
Cash | 679 | 953 |
Restricted cash | 2,895 | 3,231 |
Accounts receivable, net of allowances of $2,082 and $2,040 | 1,817 | 1,403 |
Prepaid expenses and other | 894 | 609 |
Notes receivable | 1,020 | 1,044 |
Intangible assets - bed licenses | 2,471 | 2,471 |
Intangible assets - lease rights, net | 77 | 87 |
Right-of-use operating lease assets | 2,352 | 2,556 |
Goodwill | 1,585 | 1,585 |
Lease deposits and other deposits | 4 | 4 |
Straight-line rent receivable | 2,809 | 2,901 |
Total assets | 61,320 | 62,181 |
LIABILITIES AND EQUITY (DEFICIT) | ||
Senior debt, net | 39,796 | 40,401 |
Debt related to asset held for sale, net | 3,388 | 3,454 |
Bonds, net | 5,848 | 5,991 |
Other debt, net | 1,213 | 889 |
Accounts payable | 3,615 | 2,493 |
Accrued expenses | 4,323 | 4,060 |
Operating lease obligation | 2,693 | 2,917 |
Other liabilities | 1,861 | 1,791 |
Total liabilities | 62,737 | 61,996 |
Stockholders' (deficit) equity: | ||
Common stock and additional paid-in capital, no par value; 55,000 shares authorized; 1,915 shares issued and 1,904 shares outstanding at June 30, 2024; and 1,850 shares issued and 1,839 shares outstanding at December 31, 2023 | 63,125 | 63,059 |
Preferred stock, no par value; 5,000 shares authorized (including amounts authorized for Series A and Series B); shares issued and outstanding designated as follows: | ||
Accumulated deficit | (83,570) | (81,902) |
Total stockholders' (deficit) equity | (1,417) | 185 |
Total liabilities and stockholders' equity (deficit) | 61,320 | 62,181 |
Series A Preferred Stock | ||
Preferred stock, no par value; 5,000 shares authorized (including amounts authorized for Series A and Series B); shares issued and outstanding designated as follows: | ||
Preferred stock | 426 | 426 |
Series B Preferred Stock | ||
Preferred stock, no par value; 5,000 shares authorized (including amounts authorized for Series A and Series B); shares issued and outstanding designated as follows: | ||
Preferred stock | $ 18,602 | $ 18,602 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Accounts receivable, allowances | $ 2,082 | $ 2,040 |
Common stock and additional paid-in capital, par value | $ 0 | $ 0 |
Common stock and additional paid-in capital, shares authorized | 55,000,000 | 55,000,000 |
Common stock and additional paid-in capital, shares issued | 1,915,000 | 1,850,000 |
Common stock and additional paid-in capital, shares outstanding | 1,904,000 | 1,839,000 |
Series A and B Preferred Stock | ||
Preferred stock, par value | $ 0 | $ 0 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Series A Preferred Stock | ||
Preferred stock, par value | $ 0 | $ 0 |
Preferred stock, shares authorized | 560,000 | 560,000 |
Preferred stock, shares issued | 560,000 | 560,000 |
Preferred stock, shares outstanding | 560,000 | 560,000 |
Preferred stock, redemption amount | $ 426 | $ 426 |
Series B Preferred Stock | ||
Preferred stock, par value | $ 0 | $ 0 |
Preferred stock, shares authorized | 2,812,000 | 2,812,000 |
Preferred stock, shares issued | 2,252,000 | 2,252,000 |
Preferred stock, shares outstanding | 2,252,000 | 2,252,000 |
Preferred stock, redemption amount | $ 18,602 | $ 18,602 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Revenues: | ||||
Total revenues | $ 4,325 | $ 4,598 | $ 8,451 | $ 8,504 |
Expenses: | ||||
Patient care expense | 2,183 | 1,969 | 4,283 | 4,290 |
Facility rent expense | 149 | 149 | 297 | 297 |
Cost of management fees | 0 | 146 | 0 | 286 |
Depreciation and amortization | 514 | 702 | 1,025 | 1,212 |
General and administrative expense | 1,229 | 1,422 | 2,860 | 2,954 |
Credit loss expense | 36 | 24 | 65 | 40 |
Total expenses | 4,111 | 4,412 | 8,530 | 9,079 |
Income (loss) from operations | 214 | 186 | (79) | (575) |
Other expense: | ||||
Interest expense, net | 669 | 679 | 1,344 | 1,359 |
Other expense, net | 251 | 192 | 245 | 742 |
Total other expense, net | 920 | 871 | 1,589 | 2,101 |
Net loss | (706) | (685) | (1,668) | (2,676) |
Preferred stock dividends-gain on extinguishment | 43,395 | 43,395 | ||
Net income (loss) attributable to Regional Health Properties, Inc. common stockholders | $ (706) | $ 42,710 | $ (1,668) | $ 40,719 |
Net income (loss) per share of common stock attributable to Regional Health Properties, Inc., Basic | $ (0.38) | $ 22.68 | $ (0.91) | $ 21.74 |
Net income (loss) per share of common stock attributable to Regional Health Properties, Inc., Diluted | $ (0.38) | $ 22.68 | $ (0.91) | $ 21.73 |
Weighted average shares of common stock outstanding: | ||||
Basic (in shares) | 1,846,885 | 1,883,028 | 1,842,957 | 1,872,636 |
Diluted (in shares) | 1,846,885 | 1,883,253 | 1,842,957 | 1,873,489 |
Patient Care Revenues | ||||
Revenues: | ||||
Patient care, management fees and other revenues | $ 2,525 | $ 2,526 | $ 4,834 | $ 4,442 |
Total revenues | 2,525 | 2,526 | 4,834 | 4,442 |
Rental Revenue | ||||
Revenues: | ||||
Patient care, management fees and other revenues | 1,800 | 1,722 | 3,617 | 3,430 |
Management Fees | ||||
Revenues: | ||||
Patient care, management fees and other revenues | 0 | 247 | 0 | 525 |
Total revenues | 247 | 525 | ||
Other Revenues | ||||
Revenues: | ||||
Patient care, management fees and other revenues | $ 0 | 103 | $ 0 | 107 |
Total revenues | $ 103 | $ 107 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (DEFICIT) - USD ($) $ in Thousands | Total | Series A Preferred Stock | Series B Preferred Stock | Shares of Common Stock Outstanding | Shares of Preferred Stock Series A Preferred Stock | Shares of Preferred Stock Series B Preferred Stock | Treasury Stock Preferred and Common Stock | Common Stock and Additional Paid-in Capital | Preferred Stock Series A Preferred Stock | Preferred Stock Series B Preferred Stock | Accumulated Deficit |
Balance at Dec. 31, 2022 | $ 3,716 | $ 62,702 | $ 62,423 | $ (121,409) | |||||||
Balance (in shares) at Dec. 31, 2022 | 1,784,000 | (9,000) | |||||||||
Balance (in shares) at Dec. 31, 2022 | 2,812,000 | ||||||||||
Stock-based compensation | 81 | 81 | |||||||||
Restricted stock issuance (in shares) | 99,000 | ||||||||||
Net loss | (1,992) | (1,992) | |||||||||
Balance at Mar. 31, 2023 | 1,805 | 62,783 | 62,423 | (123,401) | |||||||
Balance (in shares) at Mar. 31, 2023 | 1,883,000 | (9,000) | |||||||||
Balance (in shares) at Mar. 31, 2023 | 2,812,000 | ||||||||||
Balance at Dec. 31, 2022 | 3,716 | 62,702 | 62,423 | (121,409) | |||||||
Balance (in shares) at Dec. 31, 2022 | 1,784,000 | (9,000) | |||||||||
Balance (in shares) at Dec. 31, 2022 | 2,812,000 | ||||||||||
Net loss | (2,676) | ||||||||||
Balance at Jun. 30, 2023 | 1,275 | 62,938 | 426 | $ 18,602 | (80,691) | ||||||
Balance (in shares) at Jun. 30, 2023 | 1,883,000 | (11,000) | |||||||||
Balance (in shares) at Jun. 30, 2023 | 560,000 | 2,252,000 | |||||||||
Balance at Mar. 31, 2023 | 1,805 | 62,783 | 62,423 | (123,401) | |||||||
Balance (in shares) at Mar. 31, 2023 | 1,883,000 | (9,000) | |||||||||
Balance (in shares) at Mar. 31, 2023 | 2,812,000 | ||||||||||
Extinguishment of Series A Preferred Stock | (61,997) | (61,997) | |||||||||
Extinguishment of Series A Preferred Stock (in shares) | (2,252,000) | ||||||||||
Exchange of Series A to Series B | 61,997 | 18,602 | 43,395 | ||||||||
Exchange of Series A to Series B (in shares) | 2,252,000 | ||||||||||
Stock-based compensation | 155 | 155 | |||||||||
Forfeitures of stock based awards (in shares) | (2,000) | ||||||||||
Net loss | (685) | (685) | |||||||||
Balance at Jun. 30, 2023 | 1,275 | 62,938 | 426 | 18,602 | (80,691) | ||||||
Balance (in shares) at Jun. 30, 2023 | 1,883,000 | (11,000) | |||||||||
Balance (in shares) at Jun. 30, 2023 | 560,000 | 2,252,000 | |||||||||
Balance at Dec. 31, 2023 | $ 185 | $ 2,252 | 63,059 | 426 | 18,602 | (81,902) | |||||
Balance (in shares) at Dec. 31, 2023 | 1,850,000 | 1,839,000 | (11,000) | ||||||||
Balance (in shares) at Dec. 31, 2023 | 560,000 | 2,252,000 | 560,000 | ||||||||
Stock-based compensation | $ 43 | 43 | |||||||||
Net loss | (962) | (962) | |||||||||
Balance at Mar. 31, 2024 | (734) | 63,102 | 426 | 18,602 | (82,864) | ||||||
Balance (in shares) at Mar. 31, 2024 | 1,839,000 | (11,000) | |||||||||
Balance (in shares) at Mar. 31, 2024 | 560,000 | 2,252,000 | |||||||||
Balance at Dec. 31, 2023 | $ 185 | $ 2,252 | 63,059 | 426 | 18,602 | (81,902) | |||||
Balance (in shares) at Dec. 31, 2023 | 1,850,000 | 1,839,000 | (11,000) | ||||||||
Balance (in shares) at Dec. 31, 2023 | 560,000 | 2,252,000 | 560,000 | ||||||||
Net loss | $ (1,668) | ||||||||||
Balance at Jun. 30, 2024 | $ (1,417) | 63,125 | 426 | 18,602 | (83,570) | ||||||
Balance (in shares) at Jun. 30, 2024 | 1,915,000 | 1,904,000 | (11,000) | ||||||||
Balance (in shares) at Jun. 30, 2024 | 560,000 | 2,252,000 | 560,000 | 2,252,000 | |||||||
Balance at Mar. 31, 2024 | $ (734) | 63,102 | 426 | 18,602 | (82,864) | ||||||
Balance (in shares) at Mar. 31, 2024 | 1,839,000 | (11,000) | |||||||||
Balance (in shares) at Mar. 31, 2024 | 560,000 | 2,252,000 | |||||||||
Stock-based compensation | 23 | 23 | |||||||||
Restricted stock issuance (in shares) | 65,000 | ||||||||||
Net loss | (706) | (706) | |||||||||
Balance at Jun. 30, 2024 | $ (1,417) | $ 63,125 | $ 426 | $ 18,602 | $ (83,570) | ||||||
Balance (in shares) at Jun. 30, 2024 | 1,915,000 | 1,904,000 | (11,000) | ||||||||
Balance (in shares) at Jun. 30, 2024 | 560,000 | 2,252,000 | 560,000 | 2,252,000 |
CONSOLIDATED STATEMENTS OF ST_2
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (DEFICIT) (Parenthetical) - $ / shares | Jun. 30, 2024 | Mar. 31, 2024 | Jun. 30, 2023 | Mar. 31, 2023 |
Series A Preferred Stock | ||||
Preferred stock, par value | $ 0 | |||
Series A Preferred Stock | Preferred Stock | ||||
Preferred stock, par value | 0 | $ 0 | $ 0 | $ 0 |
Series B Preferred Stock | ||||
Preferred stock, par value | 0 | |||
Series B Preferred Stock | Preferred Stock | ||||
Preferred stock, par value | $ 0 | $ 0 | $ 0 | $ 0 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Cash flows from operating activities: | ||
Net loss | $ (1,668) | $ (2,676) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||
Depreciation and amortization | 1,025 | 1,212 |
Stock-based compensation expense | 66 | 236 |
Rent expense less than cash paid | (20) | (11) |
Rent revenue in excess of cash received | (263) | (236) |
Amortization of deferred financing costs, debt discounts and premiums | 37 | 37 |
Bad debt expense | 65 | 40 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (123) | 3,512 |
Prepaid expenses and other assets | 530 | 797 |
Accounts payable and accrued expenses | 1,383 | (460) |
Other liabilities | 70 | 504 |
Net cash provided by operating activities | 1,102 | 2,955 |
Cash flows from investing activities: | ||
Purchase of property and equipment | (395) | (854) |
Net cash used in investing activities | (395) | (854) |
Cash flows from financing activities: | ||
Payment of senior debt | (688) | (624) |
Payment of other debt | (612) | (504) |
Debt extinguishment and issuance costs | (17) | (17) |
Net cash used in financing activities | (1,317) | (1,145) |
Net change in cash and restricted cash | (610) | 956 |
Cash and restricted cash, beginning | 4,184 | 3,909 |
Cash and restricted cash, ending | 3,574 | 4,865 |
Supplemental disclosure of cash flow information: | ||
Cash interest paid | 1,355 | 1,312 |
Supplemental disclosure of non-cash activities: | ||
Vendor-financed insurance | 712 | 962 |
Exchange of preferred stock Series A to Series B | 18,602 | |
Gain on extinguishment of preferred stock | $ 43,395 | |
Cavalier management | $ 78 |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Pay vs Performance Disclosure | ||||
Net Income (Loss) | $ (706) | $ (685) | $ (1,668) | $ (2,676) |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Jun. 30, 2024 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Organization and Significant Ac
Organization and Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2024 | |
Accounting Policies [Abstract] | |
Organization and Significant Accounting Policies | NOTE 1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES Description of Business Regional Health Properties, Inc.'s (the "Company" or "Regional Health") predecessor was incorporated in Ohio on August 14, 1991, under the name Passport Retirement, Inc. In 1995, Passport Retirement, Inc. acquired substantially all of the assets and liabilities of AdCare Health Systems, Inc. and changed its name to AdCare Health Systems, Inc. ("AdCare"). AdCare completed its initial public offering in November 2006, relocated its executive offices and accounting operations to Georgia in 2012, and changed its state of incorporation from Ohio to Georgia in December 2013. Regional Health Properties, Inc. is a self-managed real estate investment company that invests primarily in real estate purposed for long-term care and senior housing. The Company's business primarily consists of leasing such facilities to third-party tenants, which operate the facilities. The Company has two primary reporting segments: (i) Real Estate, which consists of the leasing and subleasing of long-term care and senior living facilities to third-party tenants and (ii) Healthcare Services segment, which consists of the operation of the Meadowood and Glenvue facilities. Effective August 3, 2023, the Company’s 12.5 % Series B Cumulative Redeemable Preferred Shares (the “Series B Preferred Stock”) is quoted on the OTC Markets Group, Inc.’s OTCQB Venture Market under the symbol “RHEPB”. Basis of Presentation The accompanying consolidated financial statements are prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial reporting and with the instructions to Form 10-Q and Rule 8-03 of Article 8 of Regulation S-X. The accompanying condensed consolidated financial statements are unaudited and should be read in conjunction with the 2023 audited consolidated financial statements and notes thereto, which are included in the 2023 Form 10-K filed with the U.S. Securities and Exchange Commission ("SEC") on April 1, 2024. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the unaudited consolidated financial statements and accompanying notes. Actual results could differ materially from those estimates. Reclassifications Certain reclassifications have been made to the amounts reported in the prior period in order to conform to the current period's presentation. A reclassification has been made to certain expenses reported on the consolidated statements of operations in the prior period in order to conform to the current period's presentation. The reclassifications had no material effect on earnings per share. Revenue Recognition and Allowances Patient Care Revenue . Accounting Standards Codification ("ASC") Topic 606, Revenue from Contracts with Customers, requires a company to recognize revenue when the company transfers control of promised goods and services to a customer. Revenue is recognized in an amount that reflects the consideration to which a company expects to receive in exchange for such goods and services. Revenue from our Healthcare Services business segment is derived from services rendered to patients in the Meadowood and Glenvue facilities. The Company receives payments from the following sources for services rendered in our facilities: (i) the federal government under the Medicare program administered by the Centers for Medicare and Medicaid Services ("CMS"); (ii) state governments under their respective Medicaid and similar programs; (iii) commercial insurers; and (iv) individual patients and clients. The vast majority (greater than 90 %) of the revenue the Company has recognized is from government sources. The Company determines the transaction price based on established billing rates reduced by contractual adjustments provided to third-party payors, discounts provided to uninsured patients and other price concessions. Contractual adjustments and discounts are based on contractual agreements, discount policies and historical experience. These amounts are due from residents or third-party payors and include variable consideration for retroactive adjustments from estimated reimbursements, if any, under reimbursement programs. Performance obligations, such as providing room and board, wound care, intravenous drug therapy, physical therapy, and quality of life activities amongst others, are determined based on the nature of the services provided are determined based on the nature of the services provided. Estimated uncollectible amounts due from patients are generally considered implicit price concessions that are a direct reduction to net patient care revenues. Triple-Net Leased Properties. The Company recognizes rental revenue in accordance with ASC 842, Leases . The Company's triple-net leases provide for periodic and determinable increases in rent. The Company recognizes rental revenues under these leases on a straight-line basis over the applicable lease term when collectability is probable. Recognizing rental income on a straight-line basis generally results in recognized revenues during the first half of a lease term exceeding the cash amounts contractually due from our tenants, creating a straight-line rent receivable that is included in the straight-line rent receivable on our consolidated balance sheets. In the event the Company cannot reasonably estimate the future collection of rent from one or more tenant(s) of the Company's facilities, rental income for the affected facilities is recognized only upon cash collection, and any accumulated straight-line rent receivable is expensed in the period in which the Company deems rent collection to no longer be probable. Management Fee Revenues and Other Revenues . The Company recognizes management fee revenues as services are provided in accordance with ASU 2014-09, Revenue from Contracts with Customers , as codified in ASC 606, which requires revenue to be recognized in an amount that reflects the consideration to which a company expects to receive in exchange for such goods and services. The Company had one contract to manage three facilities (the “Management Contract”) which ended on December 31, 2023. Further, the Company recognizes interest income from loans and investments, using the effective interest method when collectability is probable. The Company applies the effective interest method on a loan-by-loan basis. Allowances. The Company assesses the collectability of its rent receivables, including straight-line rent receivables and working capital loans to tenants. The Company bases its assessment of the collectability of rent receivables and working capital loans to tenants on several factors, including payment history, the financial strength of the tenant and any guarantors, the value of the underlying collateral, and current economic conditions. If the Company’s evaluation of these factors indicates it is probable that the Company will be unable to receive the rent payments or payments on a working capital loan, then the Company provides a reserve against the recognized straight-line rent receivable asset or working capital loan for the portion that we estimate may not be recovered. Payments received on impaired loans are applied against the allowance. If the Company changes its assumptions or estimates regarding the collectability of future rent payments required by a lease or required from a working capital loan to a tenant, then the Company may adjust its reserve to increase or reduce the rental revenue or interest revenue from working capital loans to tenants recognized in the period the Company makes such change in its assumptions or estimates. See Note 7 – Leases . The Company has reserved for approximately 1.5 % of our patient care receivables based on the historic industry standards and continues to assess the adequacy of such reserve. The following table presents the Company's Accounts receivable, net of allowance for the periods presented: (Amounts in 000’s) June 30, 2024 December 31, 2023 Gross receivables Real Estate Services $ 1,015 $ 693 Healthcare Services 2,884 2,750 Subtotal 3,899 3,443 Allowance Real Estate Services — — Healthcare Services ( 2,082 ) ( 2,040 ) Subtotal ( 2,082 ) ( 2,040 ) Accounts receivable, net of allowance $ 1,817 $ 1,403 Assets Held for Sale and Discontinued Operations The Company may decide to sell properties that are held for use. The Company records these properties as assets held for sale when management has committed to a plan to sell the assets, actively seeks a buyer for the assets, and the consummation of the sale is considered probable and is expected within one year. Assets classified as held for sale are reported at the lower of their carrying value or their fair value, less estimated costs to sell. When the carrying value exceeds the fair value, less estimated costs to sell, an impairment expense is recognized. The Company estimates fair value, less estimated closing costs, based on similar real estate sales transactions. These valuation assumptions are based on the three-level valuation hierarchy for fair value measurement and represent Level 2 and 3 inputs. Level 2 inputs are quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets in markets that are not active; and inputs other than quoted prices. Level 3 inputs are unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. See Note 5 for additional details on assets held for sale as of June 30, 2024 and December 31, 2023. Any debt related to assets held for sale or sold during the period are classified as debt related to assets held for sale for the current and prior periods presented in the accompanying consolidated financial statements. Assets held for sale are presented as discontinued operations in all periods presented if the disposition represents a strategic shift that has, or will have, a major effect on the Company's financial position or results of operations. This includes the net gain (or loss) upon disposal of property held for sale, the property's operating results, depreciation and interest expense. In June 2024, the Company, with the support of its Board of Directors, committed to a plan of action to sell the Mt. Trace Property Holdings (Mt. Trace Property”), with a sale probable and subject to customary approvals. As a result, the Company’s management determined that the criteria under GAAP for the Mt. Trace Property to be classified as held for sale were met. Prepaid Expenses and Other As of June 30, 2024 and December 31, 2023, the Company had approximately $ 0.9 million and $ 0.6 million , respectively, in prepaid expenses and other; the $ 0.3 million increase is related to insurance for the Meadowood and Glenvue facility operations, while the other amounts are predominantly for directors' and officers' insurance, NYSE American annual fees, and mortgage insurance premiums. Accounts Payable The following table presents the Company's Accounts payable for the periods presented: (Amounts in 000’s) June 30, 2024 December 31, 2023 Accounts Payable Real Estate Services $ 1,862 $ 751 Healthcare Services 1,753 1,742 Total Accounts Payable $ 3,615 $ 2,493 Other Liabilities As of June 30, 2024 and December 31, 2023, the Company had approximately $ 1.9 million and $ 1.8 million , respectively in Other liabilities, consisting of security lease deposits and sublease improvement funds. Other Expense, net The Company had retained a law firm to evaluate and assist with opportunities to improve the Company's capital structure. See Note 2 – Series A Preferred Exchange Offer. Leases and Leasehold Improvements The Company leases certain facilities and equipment in the normal course of business. At the inception of each lease, the Company performs an evaluation to determine whether the lease should be classified as an operating lease or finance lease. As of June 30, 2024, the Company's leased facility is accounted for as an operating lease. For operating leases that contain scheduled rent increases, the Company records rent expense on a straight-line basis over the term of the lease. Leasehold improvements are amortized over the shorter of the useful life of the asset or the lease term. The Company assesses any new contracts or modification of contracts in accordance with ASC 842, Leases , to determine the existence of a lease and its classification. We are reporting revenues and expenses for real estate taxes and insurance where the lessee has not made those payments directly to a third party in accordance with their respective leases with us. Insurance We maintain general liability, professional liability, and other insurance policies in amounts and with coverage and deductibles we believe are appropriate, based on the nature and risks of our business, historical experience, availability, and industry standards, including for the operations at the Glenvue and Meadowood facilities. Our current policies provide for deductibles for each claim and contain various exclusions from coverage. The Company has self-insured against professional and general liability claims related to its healthcare operations that were discontinued during 2014 and 2015 in connection with its transition from an owner and operator of healthcare properties to a healthcare property holding and leasing company (the "Transition"). For further information, see Note 12 – Commitments and Contingencies , and Note 12 – Commitments and Contingencies, to the consolidated financial statements for the year ended December 31, 2023 for more information. The Company evaluates quarterly the adequacy of its self-insurance reserve based on a number of factors, including: (i) the number of actions pending and the relief sought; (ii) analyses provided by defense counsel, medical experts or other information which comes to light during discovery; (iii) the legal fees and other expenses anticipated to be incurred in defending the actions; (iv) the status and likely success of any mediation or settlement discussions, including estimated settlement amounts and legal fees and other expenses anticipated to be incurred in such settlement, as applicable; and (v) the venues in which the actions have been filed or will be adjudicated. The Company believes that most of the professional and general liability actions are defensible and intends to defend them through final judgment unless settlement is more advantageous to the Company. Accordingly, the self-insurance reserve reflects the Company's estimate of settlement amounts for the pending actions, if applicable, and legal costs of settling or litigating the pending actions, as applicable. Because the self-insurance reserve is based on estimates, the amount of the self-insurance reserve may not be sufficient to cover the settlement amounts actually incurred in settling the pending actions, or the legal costs actually incurred in settling or litigating the pending actions. See Note 8 – Accrued Expenses . In addition, the Company maintains certain other insurance programs, including commercial general liability, property, casualty, directors' and officers' liability, crime, and employment practices liability. Net Loss Per Share Basic net loss per share is computed by dividing net loss attributable to common stockholders by the weighted-average number of shares of common stock outstanding during the respective period. Diluted earnings per share is similar to basic net loss per share except that the net loss is adjusted by the impact of the weighted-average number of shares of common stock outstanding including potentially dilutive securities (such as options, warrants and non-vested common stock) when such securities are not anti-dilutive. Potentially dilutive securities from options, warrants and unvested restricted shares are calculated in accordance with the treasury stock method, which assumes that proceeds from the exercise of all options and warrants with exercise prices exceeding the average market value are used to repurchase common stock at market value. The incremental shares remaining after the proceeds are exhausted represent the potentially dilutive effect of the securities. Securities outstanding that were excluded from the computation, because they would have been anti-dilutive were as follows: June 30, (Share amounts in 000’s) 2024 2023 Stock options 33 13 Warrants - employee 32 32 Warrants - non employee — 1 Total anti-dilutive securities 65 46 The weighted average contractual terms in years for these securities as of June 30, 2024 , with no intrinsic value, are 6.4 years for the stock options and 0.5 years for the warrants. Recently Adopted Accounting Pronouncements In March 2023, the FASB issued ASU 2023-01, Leases (Topic 842): Common Control Arrangements (Topic 842) amendments, which requires entities to determine whether related party arrangements between entities under common control are leases. The amendments also address the accounting treatment of leasehold improvements associated with common control leases. They require the lessee to amortize leasehold improvements over the useful life of the improvements to the common control group, regardless of the lease term, as long as the lessee controls the use of the underlying asset. If the lessee no longer controls the use of the asset, the leasehold improvements are accounted for as a transfer between entities under common control through an adjustment to equity. These improvements are also subject to impairment guidance in Topic 360, Property, Plant, and Equipment. The amendment is effective for public entities beginning after December 15, 2023. The Company adopted ASU 2023-01 effective January 1, 2024. The adoption of ASU-2023-01 did not have a material impact on the Company's consolidated financial statements. New Accounting Pronouncements Issued But Not Yet Effective In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures , which requires a public company to disclose information about their reportable segments’ significant expenses and other segment items on an interim and annual basis. A public company with a single reportable segment is required to apply the disclosure requirements in ASU 2023-07, as well as all existing segment disclosures and reconciliation requirements in ASC 280 on an interim and annual basis. ASU 2023-07 is effective for fiscal years beginning after December 15, 2023, and for interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted. The Company is currently evaluating the impact of adopting ASU 2023-07. In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures , which requires a public company, on an annual basis, to provide disclosure of specific categories in the rate reconciliation, as well as disclosure of income taxes paid disaggregated by jurisdiction. ASU 2023-09 is effective for fiscal years beginning after December 15, 2024, with early adoption permitted. The Company does not expect the adoption of ASU 2023-09 to have a material impact on the Company's consolidated financial statements. No other new accounting pronouncement issued or effective has had, or is expected to have, a material impact on the Company's financial statements. |
Liquidity
Liquidity | 6 Months Ended |
Jun. 30, 2024 | |
Liquidity [Abstract] | |
Liquidity | NOTE 2. LIQUIDITY Overview The Company intends to pursue measures to grow its operations, sell non-core assets, streamline its cost infrastructure and otherwise increase liquidity, including: (i) refinancing or repaying debt to reduce interest costs and mandatory principal repayments, with such repayment to be funded through potentially expanding borrowing arrangements with certain lenders; (ii) increasing future lease revenue through acquisitions and investments in existing properties; (iii) strategically dispose of facilities for operational improvements or to take advantage of high sales prices; (iv) modifying the terms of existing leases; (v) replacing certain tenants who default on their lease payment terms; and (vi) reducing other and general and administrative expenses. Management anticipates access to several sources of liquidity, including cash on hand, cash flows from operations, cash flows from investing and debt refinancing during the twelve months following the date of this filing. The Company has committed to a plan to sell the Mt. Trace Property to increase cash available for operations and future investments. At June 30, 2024, the Company had $ 0.7 million in unrestricted cash and $ 1.8 million of net accounts receivable, mainly consisting of patient accounts receivable and rent receivables. During the six months ended June 30, 2024, the Company's cash provided by operating activities was $ 1.1 million primarily due to the timing of accounts payable and accrued expense payments. The Company is seeking collection of the past due rent. In addition, management is working to expedite the time it takes to collect and receive aged patient receivables. Cash flow from operations in the future will be based on the operational performance of the facilities under the company's management, Glenvue and Meadowood. Series A Preferred Stock Exchange Offer (" Exchange Offer ") In early 2020, the Company began ongoing efforts to investigate alternatives to retire or refinance our outstanding Series A Preferred Stock through privately negotiated transactions, open market repurchases, redemptions, exchange offers, tender offers, or otherwise. On June 30, 2023, the Company closed the Company’s offer to exchange (the “Exchange Offer”) any and all outstanding shares of the Company’s 10.875 % Series A Cumulative Redeemable Preferred Shares (the “Series A Preferred Stock”) for newly issued shares of the Company’s Series B Preferred Stock. In connection with the completion of the Exchange Offer and the implementation of the Series A Charter Amendments and the Series B Charter Amendments, the liquidation preference of the Series A Preferred Stock was reduced, accumulated and unpaid dividends on the Series A Preferred Stock were eliminated and future dividends on the Series A Preferred Stock were eliminated. As a result, $ 50.4 million in accumulated and unpaid dividends on the Series A Preferred Stock were eliminated and, as of June 30, 2024, there are no accumulated and unpaid dividends on the Series A Preferred Stock. For further information regarding the Exchange Offer, Series A Charter Amendments and Series B Charter Amendments, see Note 10 – Common and Preferred Stock . Costs associated with these efforts have been expensed as incurred in “Other expense, net” and there were no expenses incurred for the six months ended June 30, 2024 and there were $ 0.5 million for the six months ended June 30, 2023. Series A Preferred Dividend Suspension Prior to the Exchange Offer, as discussed above, we suspended the quarterly dividend payment with respect to our Series A Preferred Stock commencing with the fourth quarter of 2017, and on June 8, 2018, the Board suspended quarterly dividend payments indefinitely with respect to the Series A Preferred Stock. The dividend suspension provided the Company with additional funds to meet its ongoing liquidity needs. As the Company had failed to pay cash dividends on the outstanding Series A Preferred Stock in full for more than four dividends periods, the annual dividend rate on the Series A Preferred Stock for the fifth and future missed dividend periods had increased to 12.875 %, which was equivalent to approximately $ 3.20 per share each year, commencing on the first day after the missed fourth quarterly payment (October 1, 2018) and continuing until the second consecutive dividend payment date following such time as the Company had paid all accumulated and unpaid dividends on the Series A Preferred Stock in full in cash. As discussed above, in connection with the completion of the Exchange Offer, accumulated and unpaid dividends on the Series A Preferred Stock were eliminated. Debt As of June 30, 2024, the Company had $ 50.2 million in indebtedness, net of $ 0.9 million deferred financing costs and $ 0.1 million in unamortized discounts. The Company anticipates net principal repayments of approximately $ 2.4 million during the next twelve-month period, approximately $ 1.6 million of routine debt service amortization, $ 0.6 million of insurance financing amortization, and $ 0.2 million payment of bond debt. Debt Covenant Compliance At June 30, 2024 , the Company was in compliance with the various financial and administrative covenants under the Company's outstanding credit related instruments with the exception of a noticed default under one USDA loan. The Company is working with the USDA lender to get back into compliance with the loan documents. Evaluation of the Company's Ability to Continue as a Going Concern Under the accounting guidance related to the presentation of financial statements, the Company is required to evaluate, on a quarterly basis, whether or not the Company's current financial condition, including its sources of liquidity at the date that the consolidated financial statements are issued, will enable the Company to meet its obligations as they come due arising within one year of the date of the issuance of the Company's consolidated financial statements and to make a determination as to whether or not it is probable, under the application of this accounting guidance, that the Company will be able to continue as a going concern. The Company's consolidated financial statements have been presented on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. In applying applicable accounting guidance, management considered the Company's current financial condition and liquidity sources, including current funds available, forecasted future cash flows, the Company's obligations due over the next twelve months, and the Company's recurring business operating expenses. The Company concluded that it is probable that the Company will be able to meet its obligations arising within one year of the date of issuance of these consolidated financial statements within the parameters set forth in the accounting guidance. |
Cash and Restricted Cash
Cash and Restricted Cash | 6 Months Ended |
Jun. 30, 2024 | |
Restricted Cash And Investments [Abstract] | |
Cash and Restricted Cash | NOTE 3. CASH AND RESTRICTED CASH The following presents the Company's cash and restricted cash: (Amounts in 000’s) June 30, 2024 December 31, 2023 Cash $ 679 $ 953 Restricted cash: Cash collateral $ 57 $ 159 HUD and other replacement reserves 2,055 2,125 Escrow deposits 466 630 Restricted investments for debt obligations 317 317 Total restricted cash 2,895 3,231 Total cash and restricted cash $ 3,574 $ 4,184 Cash collateral— In securing mortgage financing from certain lending institutions, the Company and certain of its wholly-owned subsidiaries are required to deposit cash to be held as collateral in accordance with the terms of such loan agreements. HUD and other replacement reserves— The regulatory agreements entered into in connection with the financing secured through HUD require monthly escrow deposits for replacement and improvement of the HUD project assets. Escrow deposits— In connection with financing secured through the Company's lenders, several wholly-owned subsidiaries of the Company are required to make monthly escrow deposits for taxes and insurance. Restricted cash for debt obligations —In compliance with certain financing and insurance agreements, the Company and certain wholly-owned subsidiaries of the Company are required to deposit cash held as collateral by the lender or in escrow with certain designated financial institutions. |
Property and Equipment
Property and Equipment | 6 Months Ended |
Jun. 30, 2024 | |
Property Plant And Equipment [Abstract] | |
Property and Equipment | NOTE 4. PROPERTY AND EQUIPMENT The following table sets forth the Company's property and equipment: (Amounts in 000’s) Estimated June 30, 2024 December 31, 2023 Buildings and improvements 5 - 40 $ 59,914 $ 59,508 Equipment and computer related 2 - 10 1,124 1,187 Land (1) — 2,774 2,774 Property and equipment 63,812 63,469 Less: accumulated depreciation ( 23,946 ) ( 23,071 ) Property and equipment, net $ 39,866 $ 40,398 (1) Includes $ 0.1 m illion of land improvements with an average estimated useful remaining life of approximately 4.5 years as of June 30, 2024. The following table summarizes total depreciation and amortization expense three and six and months ended June 30, 2024 and 2023: Three Months Ended June 30, Six Months Ended June 30, (Amounts in 000’s) 2024 2023 2024 2023 Depreciation $ 406 $ 593 $ 809 $ 993 Amortization 108 109 216 219 Total depreciation and amortization expense $ 514 $ 702 $ 1,025 $ 1,212 |
Assets Held For Sale
Assets Held For Sale | 6 Months Ended |
Jun. 30, 2024 | |
Assets Held For Sale [Abstract] | |
ASSETS HELD FOR SALE | NOTE 5. ASSETS HELD FOR SALE The following table sets forth the Company's asset held for sale: (Amounts in 000’s) Estimated June 30, 2024 December 31, 2023 Buildings and improvements 5 - 40 $ 7,225 $ 7,225 Less: accumulated depreciation ( 2,374 ) ( 2,286 ) Asset held for sale, net $ 4,851 $ 4,939 |
Intangible Assets and Goodwill
Intangible Assets and Goodwill | 6 Months Ended |
Jun. 30, 2024 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Intangible Assets and Goodwill | NOTE 6. INTANGIBLE ASSETS AND GOODWILL Intangible assets and Goodwill consist of the following: (Amounts in 000’s) Bed licenses (1) Bed Licenses - (2) Lease Total Goodwill (2) Balances, December 31, 2023 Gross $ 14,276 $ 2,471 $ 176 $ 16,923 $ 1,585 Accumulated amortization ( 4,997 ) — ( 89 ) ( 5,086 ) — Net carrying amount $ 9,279 $ 2,471 $ 87 $ 11,837 $ 1,585 Balances, June 30, 2024 Gross $ 14,276 $ 2,471 $ 176 $ 16,923 $ 1,585 Accumulated amortization ( 5,203 ) — ( 99 ) ( 5,302 ) — Net carrying amount $ 9,073 $ 2,471 $ 77 $ 11,621 $ 1,585 (1) Non-separable bed licenses are included in property and equipment as is the related accumulated amortization expense (see Note 4 – Property and Equipment ). (2) The Company does not amortize indefinite-lived intangibles, which consist of separable bed licenses and goodwill . The following table summarizes amortization expense for the three and six and months ended June 30, 2024 and 2023: Three Months Ended June 30, Six Months Ended June 30, (Amounts in 000’s) 2024 2023 2024 2023 Bed licenses $ 102 $ 103 $ 206 $ 207 Lease rights 6 6 10 12 Total amortization expense $ 108 $ 109 $ 216 $ 219 Expected amortization expense for the years ending December 31, for all definite-lived intangibles, for each of the next five years and thereafter is as follows: (Amounts in 000’s) Bed Lease 2024 (6 months remaining) $ 207 $ 9 2025 414 18 2026 414 18 2027 414 18 2028 414 14 Thereafter 7,210 — Total expected amortization expense $ 9,073 $ 77 |
Leases
Leases | 6 Months Ended |
Jun. 30, 2024 | |
Leases [Abstract] | |
Leases | NOTE 7. LEASES Operating Leases As of June 30, 2024 and December 31, 2023 , the Company leases one Skilled Nursing Facility ("SNF") in Covington, Ohio under a non-cancelable lease, which has rent escalation clauses and provisions for payments of real estate taxes, insurance, and maintenance costs. The remaining lease term for the Covington facility is approximately 4.8 years as of June 30, 2024. The Company subleases the Covington facility to a third party. The Company also leased certain office space located in Suwanee, Georgia through the termination date of June 30, 2023. Effective July 1, 2023, the Company signed a sublease for 2,000 sq ft of office space in Atlanta, Georgia. The sublease expires on July 31, 2025. As of June 30, 2024, the Company is in compliance with all operating lease financial covenants. Future Minimum Lease Payments Future minimum lease payments for the twelve months ending December 31, for each of the next five years and thereafter is as follows: (Amounts in 000’s) Future Accretion of (1) Operating 2024 (6 months remaining) $ 341 $ ( 8 ) $ 333 2025 672 ( 53 ) 619 2026 658 ( 98 ) 560 2027 671 ( 144 ) 527 2028 685 ( 188 ) 497 Thereafter 230 ( 73 ) 157 Total $ 3,257 $ ( 564 ) $ 2,693 (1) Weighted a verage discount rate 7.98 %. Facilities Lessor As of June 30, 2024, the Company was the less or of 9 of its 11 owned facilities, and the sublessor of one facility. These leases are triple net basis leases, meaning that the lessee (i.e., the third-party tenant of the property) is obligated for all costs of operating the property, including insurance, taxes and facility maintenance, as well as the lease or sublease payme nts to the Comp any. The weighted average remaining lease term for our 10 owned and subleased out facilities is approximately 5.0 years. Future Minimum Lease Receivables Future minimum lease receivables for the twelve months ending December 31, for each of the next five years and thereafter is as follows: (Amounts 2024 (6 months remaining) $ 3,306 2025 6,696 2026 6,801 2027 6,909 2028 6,758 Thereafter 8,227 Total $ 38,697 For further details regarding the Company's leased and subleased facilities to third-party operators, including a full summary of the Company's leases to third-parties and which comprise the future minimum lease receivables of the Company, see Note 6 - Leases and Leasing Transactions in Part I, Item 1, Financial Statements and Supplementary Data, included in the Annual Report. |
Accrued Expenses
Accrued Expenses | 6 Months Ended |
Jun. 30, 2024 | |
Payables And Accruals [Abstract] | |
Accrued Expenses | NOTE 8. ACCRUED EXPENSES Accrued expenses consist of the following: (Amounts in 000’s) June 30, 2024 December 31, 2023 Accrued employee benefits and payroll-related $ 294 $ 255 Real estate and other taxes (1) 3,202 3,077 Self-insured reserve 68 61 Accrued interest 180 225 Unearned rental revenue — 98 Insurance escrow 136 — Other accrued expenses (2) 443 344 Total accrued expenses $ 4,323 $ 4,060 (1) June 30, 2024 includes approximately $ 0.7 million of bed taxes in arrears related to the Wellington Transition in 2020 as well as $ 2.1 million related to our own dates of operation under the Healthcare Services segment and approximately $ 0.4 million property tax accrual for the Real Estate segment. December 31, 2023 includes approximately $ 0.7 million of bed taxes in arrears related to the Wellington Transition in 2020 as well as $ 1.9 million related to our own dates of operation under the Healthcare Services segment and approximately $ 0.5 million property tax accrual for the twelve months ended December 31, 2023 for the Real Estate segment. (2) As of June 30, 2024 and December 31, 2023 , the remaining escheatment liabilities for discontinued operations are $ 0.3 million and are included in other accrued expenses. |
Senior Debt and Other Debt
Senior Debt and Other Debt | 6 Months Ended |
Jun. 30, 2024 | |
Debt Disclosure [Abstract] | |
Senior Debt and Other Debt | NOTE 9. SENIOR DEBT AND OTHER DEBT See Note 8 – Notes Payable and Other Debt in Part II, Item 8, Financial Statements and Supplementary Data, included in the Annual Report for a detailed description of all the Company's debt facilities. Senior Debt and other debt consists of the following: (Amounts in 000’s) June 30, 2024 December 31, Senior debt—guaranteed by HUD $ 28,566 $ 28,979 Senior debt—guaranteed by USDA (1) 7,113 7,259 Senior debt—guaranteed by SBA (2) 547 557 Senior debt—bonds 5,970 6,117 Senior debt—other mortgage indebtedness 7,866 8,001 Other debt 1,213 889 Subtotal 51,275 51,802 Deferred financing costs ( 920 ) ( 954 ) Unamortized discount on bonds ( 110 ) ( 113 ) Senior debt and other debt $ 50,245 $ 50,735 (1) U.S. Department of Agriculture (USDA) (2) U.S. Small Business Administration (SBA) The following is a detailed listing of the debt facilities that comprise each of the above categories: (Amounts in 000’s) Facility Lender Maturity Interest Rate (1) June 30, 2024 December 31, 2023 Senior debt - guaranteed by HUD (2) The Pavilion Care Center Newpoint Capital 12/01/2039 Fixed 3.97 % $ 783 $ 801 Hearth and Care of Greenfield Newpoint Capital 8/01/2050 Fixed 3.97 % 1,889 1,909 Woodland Manor Newpoint Capital 11/01/2052 Fixed 3.97 % 4,845 4,891 Glenvue Newpoint Capital 10/01/2044 Fixed 3.75 % 6,964 7,077 Autumn Breeze KeyBank 01/01/2045 Fixed 3.65 % 6,056 6,154 Georgetown Newpoint Capital 10/01/2046 Fixed 2.98 % 3,072 3,120 Sumter Valley KeyBank 01/01/2047 Fixed 3.70 % 4,957 5,027 Total $ 28,566 $ 28,979 Senior debt - guaranteed by USDA (3) Mountain Trace (4) Community B&T 12/24/2036 Prime + 1.75 % 10.25 % $ 3,470 $ 3,539 Southland Cadence Bank, NA 07/27/2036 Prime + 1.50 % 10.00 % 3,643 3,720 Total $ 7,113 $ 7,259 Senior debt - guaranteed by SBA Southland (5) Cadence Bank, NA 07/27/2036 Prime + 2.25 % 10.75 % 547 $ 557 Total $ 547 $ 557 (1) Represents interest rates as of June 30, 2024 as adjusted for interest rate floor limitations, if applicable. The rates exclude amortization of deferred financing costs which are approximately 0.13 % per annum. (2) For the seven SNF’s, the Company has term loans insured 100 % by HUD with financial institutions. The loans are secured by, among other things, an assignment of all rents paid under any existing or future leases and rental agreements with respect to the underlying facility. The loans contain customary events of default, including fraud or material misrepresentations or material omission, the commencement of a forfeiture action or proceeding, failure to make required payments, and failure to perform or comply with certain agreements. Upon the occurrence of certain events of default, the lenders may, after receiving the prior written approval of HUD, terminate the loans and all amounts under the loans will become immediately due and payable. In connection with entering into loans, the facilities entered into a healthcare regulatory agreement and a promissory note, each containing customary terms and conditions. (3) For the two SNF’s, the Company has term loans with financial institutions, which are insured 70 % to 80 % by the USDA. The loans have an annual renewal fee for the USDA guarantee of 0.25 % of the guaranteed portion. The loans have prepayment penalties of 1 % through 2020, capped at 1 % for the remainder of the first 10 years of the term and 0 % thereafter. (4) Represents debt liability related to asset held for sale (see Note 5 – Assets Held for Sale ). (5) For one SNF, commonly known as Southland, the Company has a term loan with a financial institution, which is insured 75 % by the SBA. (Amounts in 000’s) Facility Lender Maturity Interest Rate (1) June 30, 2024 December 31, 2023 Senior debt - bonds Eaglewood Bonds Series A City of Springfield, Ohio 05/01/2042 Fixed 7.65 % $ 5,970 $ 6,117 (1) Represents cash interest rates as of June 30, 2024 . The rates exclude amortization of deferred financing of approximately 0.10 % per annum. (Amounts in 000’s) Facility Lender Maturity Interest Rate (1) June 30, 2024 December 31, 2023 Senior debt - other mortgage indebtedness Meadowood (2) Exchange Bank of Alabama 10/01/2026 Fixed 4.50 % $ 3,195 $ 3,237 Coosa (3) Exchange Bank of Alabama 10/10/2026 Fixed 3.95 % 4,671 4,764 Total $ 7,866 $ 8,001 (1) Represents cash interest rates as of June 30, 2024 as adjusted for interest rate floor limitations, if applicable. The rates exclude amortization of deferred financing costs of 0.34 % per annum. (2) The Meadowood Credit Facility is secured by the Meadowood Facility and the assets of Coosa, which is guaranteed by Regional Health Properties, Inc. (3) The Coosa Credit Facility, guaranteed by Regional Health Properties, Inc., includes customary terms, including events of default with an associated annual 5 % default interest rate, and is secured by the Coosa Facility and the assets of Meadowood. Upon the occurrence of certain events of default, the lenders may terminate the Coosa Credit Facility and the Meadowood Credit Facility, and all amounts due under both credit facilities will become immediately due and payable. The Coosa Credit Facility has prepayment penalties of 5 % in the 1 st year, 4 % in the 2 nd year and 1 % thereafter. (Amounts in 000’s) Lender Maturity Interest Rate June 30, 2024 December 31, 2023 Other debt First Insurance Funding (1) Various 2024 Fixed 7.75 % $ 640 $ 369 Key Bank (2) 08/25/2025 Fixed 0.00 % 495 495 Marlin Capital Solutions 06/1/2027 Fixed 5.00 % 18 25 Cavalier Management 3/1/2025 Fixed 6.00 % 60 — Total $ 1,213 $ 889 (1) Annual Insurance financing primarily for the Company's directors and officers insurance. (2) On December 30, 2022, Key Bank and the Company extended the maturity date from August 25, 2023 to August 25, 2025 . Debt Covenant Compliance As of June 30, 2024, the Company had 17 credit related instruments outstanding that include various financial and administrative covenant requirements. Covenant requirements include, but are not limited to, fixed charge coverage ratios, debt service coverage ratios, minimum earnings before interest, taxes, depreciation, and amortization or earnings before interest, taxes, depreciation, amortization, and restructuring or rent costs, and current ratios. Certain financial covenant requirements are based on consolidated financial measurements whereas others are based on measurements at the subsidiary level (i.e., facility, multiple facilities or a combination of subsidiaries). The subsidiary level requirements are as follows: (i) financial covenants measured against subsidiaries of the Company; and (ii) financial covenants measured against third-party operator performance. Some covenants are based on annual financial metric measurements, whereas others are based on monthly and quarterly financial metric measurements. The Company routinely tracks and monitors its compliance with its covenant requirements. As of June 30, 2024, the Company was in compliance with the various financial and administrative covenants under the Company's outstanding credit related instruments with the exception of a noticed default under one USDA loan. The Company is working with the USDA lender to get back into compliance with the loan documents. Scheduled Maturities The schedule below summarizes the scheduled gross maturities as of June 30, 2024 for each of the next five years and thereafter. For the Twelve Months Ended December 31, (Amounts in 000’s) 2024 (6 months remaining) $ 1,189 2025 2,503 2026 8,829 2027 1,560 2028 1,657 Thereafter 35,537 Subtotal $ 51,275 Less: unamortized discounts ( 110 ) Less: deferred financing costs, net ( 920 ) Total notes and other debt $ 50,245 |
Common and Preferred Stock
Common and Preferred Stock | 6 Months Ended |
Jun. 30, 2024 | |
Stockholders Equity Note [Abstract] | |
Common and Preferred Stock | NOTE 10. COMMON AND PREFERRED STOCK Common Stock As of June 30, 2024 , the Company had 55,000,000 shares of Common Stock authorized and 1,914,908 shares issued and 1,904,028 shares outstanding. There were no dividends declared or paid on the common stock during the three and six months ended June 30, 2024 and 2023. Preferred Stock As of June 30, 2024 , the Company had 5,000,000 shares of Preferred Stock authorized and 2,811,535 shares issued and outstanding. Series A Preferred Stock On June 27, 2023, certain Preferred Series A Charter Amendments were approved at the Special Meeting to (i) reduce the liquidation preference of the Series A Preferred Stock to $ 5.00 per share, (ii) eliminate accumulated and unpaid dividends on the Series A Preferred Stock, (iii) eliminate dividends on the Series A Preferred Stock, (iv) eliminate penalty events and the right of holders of Series A Preferred Stock to elect directors upon the occurrence of a penalty event, (v) reduce the redemption price of the Series A Preferred Stock in the event of an optional redemption to $ 5.00 per share, (vi) reduce the redemption price of the Series A Preferred Stock in the event of a “change of control” to $ 5.00 per share and (vii) change the voting rights of holders of Series A Preferred Stock when voting as a single class with any other class or series of stock to one vote per $ 5.00 liquidation preference. The Company has accounted for the Series A Charter Amendments to the rights, preferences, and privileges of the Series A Preferred Stock as an extinguishment of the Series A Preferred Stock and issuance of new Series B Preferred Stock due to the significance of the modifications to the substantive contractual terms and the associated fundamental changes to the nature of the Series A Preferred Stock. Accordingly, the Company recorded an aggregate gain of $ 43.4 million within stockholders’ equity equal to the difference between the fair value of the new shares of Series B Preferred Stock issued and the carrying amount of the shares of Series A Preferred Stock extinguished. The gain on extinguishment is reflected in the calculation of net income (loss) available to common stockholders in accordance with FASB ASC Topic 260, Earnings per Share. The fair value of the Series A Preferred Stock was $ 0.76 per share based on a probability-weighted average of the expected return method. On June 30, 2023, in connection with the closing of the Exchange Offer, 2,252,272 shares of Series A Preferred Stock were retired and exchanged for 2,252,272 shares of Series B Preferred Stock. There were no dividends declared or paid on the Series A Preferred Stock for the six months ended June 30, 2024. As of June 30, 2024 , the Company had 559,263 shares of Series A Preferred Stock issued and outstanding. There are no dividends associated with our Series A Preferred Stock effective June 27, 2023. Series B Preferred Stock The terms and provisions of the Series B Preferred Stock include, among other things: (i) no stated maturity and not being subject to any sinking fund or mandatory redemption, except following a change of control and the cumulative redemption provisions, (ii) ranks senior to our common stock, our Series A Preferred Stock and any other shares of our stock that we may issue in the future, the terms of which specifically provide that such stock ranks junior to the Series B Preferred Stock, in each case with respect to payment of dividends and amounts upon the occurrence of a liquidation event, (iii) dividend rate is 12.5 % per annum of the liquidation preference of the Series B Preferred Stock in effect on the first calendar day of the applicable dividend period, (iv) initial dividend period will commence July 1, 2027 , (v) liquidation preference is initially be $ 10.00 per share and will increase over time, pursuant to the terms set forth in the Charter, to $ 25.00 per share upon the fourth anniversary date of the original issuance date, provided that once there are 200,000 or fewer shares of the Series B Preferred Stock outstanding, the liquidation preference will be reduced to $ 5.00 per share; and (vi) the Company must redeem, repurchase or otherwise acquire certain amount of shares of Series B Preferred Stock through the fourth anniversary of the original date of issuance as provided in the Charter. The fair value of the Series B Preferred Stock was $ 8.26 per share based on a probability-weighted average of the expected return method. As of June 30, 2024 , the Company had 2,252,272 shares of Series B Preferred Stock issued and outstanding. There were no dividends declared or paid on the Series B Preferred Stock for the three and six months ended June 30, 2024 and 2023. |
Stock Based Compensation
Stock Based Compensation | 6 Months Ended |
Jun. 30, 2024 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock Based Compensation | NOTE 11. STOCK BASED COMPENSATION Stock Incentive Plans On September 21, 2023, our Board of Directors (the "Board") approved the Regional Health Properties, Inc. 2023 Omnibus Incentive Compensation Plan (the “2023 Plan”), which was approved by the Company's shareholders on November 16, 2023 at the 2023 Annual Meeting of Shareholders. The 2023 Plan is administered by the Compensation Committee of the Board of the Company. The 2023 Plan shall remain in effect, subject to the right of the Board to amend or terminate the 2023 Plan at any time, until the earlier of 11:59 p.m. (ET) on September 21, 2033, or the date all shares subject to the 2023 Plan shall have been issued and the restrictions on all restricted shares granted under the Plan shall have lapsed, according to the 2023 Plan’s provisions. Our 2023 Plan replaced the Regional Health Properties, Inc. 2020 Equity Incentive Plan (the “2020 Plan”). Outstanding awards under the 2020 Plan will continue to be governed by the terms of the 2020 Plan until exercised, expired or otherwise terminated or canceled, but no further equity awards will be granted under the 2020 Plan. As of June 30, 2024, the number of securities remaining available for future issuance under the 2023 Plan is 136,000 . For the three and six months ended June 30, 2024 and 2023, the Company recognized stock-based compensation expense as follows: Three Months Ended June 30, Six Months Ended June 30, (Amounts in 000’s) 2024 2023 2024 2023 Employee compensation: Stock compensation expense $ 23 $ 155 $ 66 $ 236 Forfeitures of stock based awards — — — — Total employee stock-based compensation expense $ 23 $ 155 $ 66 $ 236 Restricted Stock The following table summarizes the Company's restricted stock activity for the six months ended June 30, 2024: Number of Weighted Avg. Unvested, December 31, 2023 80 $ 5.27 Granted 65 $ 2.18 Vested ( 43 ) $ 6.67 Unvested, June 30, 2024 102 $ 2.70 There were 65,000 restricted stock awards granted during the six months ended June 30, 2024, which will vest in three equal annual installments starting on June 19, 2025. The unvested shares at June 30, 2024 will vest over t he next 2.4 years with $ 243 thousand in compensation expense recognized over this period. Common Stock Options The following summarizes the Company's employee and non-employee stock option activity for the six months ended June 30, 2024: Number of Weighted Weighted Aggregate Outstanding, December 31, 2023 33 $ 14.84 6.9 $ — Granted 24 $ 2.03 Outstanding, June 30, 2024 57 $ 9.41 7.7 $ 1.0 Outstanding and Vested, June 30, 2024 44 $ 11.55 7.2 $ — A stock option to purchase 24,000 shares of common stock was granted under our 2023 Plan to an employee with an exercise price of $ 2.03 in January 2024. The weighted average fair value of the option granted was $ 1.76 and was estimated using the Black-Scholes option-pricing model with the following assumptions: (i) expected term of 5.27 years, (ii) risk free interest rate of 3.81 %, (iii) dividend yield of 0.0 %, and (iv) expected volatility of 127.14 %.The remaining unvested shares at June 30, 2024 will vest over t he next 0.5 years with $ 11 thousand in compensation expense recognized over this period. The following summary information reflects stock options outstanding, vested, and related details as of June 30, 2024: Stock Options Outstanding Stock Options Exercisable Exercise Price Number of Weighted Weighted Vested, June 30, 2024 Weighted $ 2.03 - $ 3.32 48 9.0 $ 2.68 35 $ 2.91 $ 46.80 9 0.5 $ 46.80 9 $ 46.80 Total 57 7.7 $ 9.41 44 $ 11.55 Common Stock Warrants The following summarizes the Company's warrant activity for the six months ended June 30, 2024: Outstanding and Exercisable Number of Weighted Weighted Aggregate Outstanding, December 31, 2023 32 $ 52.50 1.0 $ — Granted — $ — Expired — $ — Outstanding, June 30, 2024 32 $ 52.50 0.5 $ — Outstanding and Vested, June 30, 2024 32 $ 52.50 0.5 $ — No warrants were granted during the six months ended June 30, 2024 . All outstanding warrants are vested, and the Company has no unrecognized compensation expense related to common stock warrants as of June 30, 2024 . |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2024 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | NOTE 12. COMMITMENTS AND CONTINGENCIES Regulatory Matters Laws and regulations governing federal Medicare and state Medicaid programs are complex and subject to interpretation. Compliance with such laws and regulations can be subject to future governmental review and interpretation as well as significant regulatory action including fines, penalties, and exclusion from certain governmental programs. As of June 30, 2024, all of the Company's facilities operated by Regional or leased and subleased to third-party operators are certified by CMS and are operational. See Note 7 - Leases . Legal Matters The Company is a party to various legal actions and administrative proceedings and is subject to various claims arising in the ordinary course of business, including claims that the services the Company provided during the time it operated SNFs resulted in injury or death to the patients of the Company's facilities and claims related to professional and general negligence, employment, staffing requirements and commercial matters. Although the Company intends to vigorously defend itself in these matters, there is no assurance that the outcomes of these matters will not have a material adverse effect on the Company's business, results of operations and financial condition. The Company previously operated, and the Company and its tenants now operate, in an industry that is highly regulated. As such, in the ordinary course of business, the Company and its tenants are continuously subject to state and federal regulatory scrutiny, supervision and control. Such regulatory scrutiny often includes inquiries, investigations, examinations, audits, site visits and surveys, some of which are non-routine. In addition, the Company believes that there has been, and will continue to be, an increase in governmental investigations of long-term care providers, particularly in the area of Medicare and Medicaid false claims, as well as an increase in enforcement actions resulting from these investigations. Adverse determinations in legal proceedings or governmental investigations against or involving the Company or its tenants, whether currently asserted or arising in the future, could have a material adverse effect on the Company's business, results of operations and financial condition. Professional and General Liability Claims On February 16, 2024, the Regional's insurance carrier was able to reach a settlement with the family of Mable Polite within policy limits. As of June 30, 2024, the Company has been named in three lawsuits pertaining to facilities it transitioned operations to other entities as a lessor in 2015. Even though the residents were not part of our dates of service as the operator of the buildings, the lawsuits claim the Company knew the new operator had a history of providing poor patient care and therefore should not have leased or sold the premises to the new operator. We do not believe there is any basis in law or fact to hold the previous operator/ lessor liable, and as a result management has concluded that the likelihood of a material adverse result should be remote. Despite our confidence in our legal position, we have to acknowledge that jurors sometimes follow sympathy rather than the law. One of the three cases is scheduled to go to trial in November 2024. |
Segments Results
Segments Results | 6 Months Ended |
Jun. 30, 2024 | |
Segment Reporting [Abstract] | |
Segments Results | NOTE 13. SEGMENT RESULTS The Company has two primary reporting segments: (i) Real Estate Services, which consists of the leasing and subleasing of long-term care and senior living facilities to third-party tenants, including the Company's management of three facilities on behalf of third-party owners which ended on December 31, 2023; and (ii) Healthcare Services, which consists of the operation of the Meadowood and Glenvue facilities. The Company reports segment information based on the "management approach" defined in ASC 280, Segment Reporting. The management approach designates the internal reporting used by management for making decisions and assessing performance as the source of our reportable segments. The table below presents the results of operations for our reporting segments for the periods presented. Three Months Ended June 30, Three Months Ended June 30, Six Months Ended June 30, Six Months Ended June 30, 2024 2024 2024 2023 2023 2023 2024 2024 2024 2023 2023 2023 (Amounts in 000’s) Real Estate Services Healthcare Services Total Real Estate Services Healthcare Services Total Real Estate Services Healthcare Services Total Real Estate Services Healthcare Services Total Revenues: Patient care revenues $ — $ 2,525 $ 2,525 $ — $ 2,526 $ 2,526 $ — $ 4,834 $ 4,834 $ — $ 4,442 $ 4,442 Rental revenues 1,800 — 1,800 1,722 — 1,722 3,617 — 3,617 3,430 — 3,430 Management fees — — — 247 — 247 — — — 525 — 525 Other revenues — — — 103 — 103 — — — 107 — 107 Total revenues 1,800 2,525 4,325 2,072 2,526 4,598 3,617 4,834 8,451 4,062 4,442 8,504 Expenses: Patient care expense — 2,183 2,183 — 1,969 1,969 — 4,283 4,283 — 4,290 4,290 Facility rent expense 149 — 149 149 — 149 297 — 297 162 135 297 Cost of management fees — — — — 146 146 — — — — 286 286 Depreciation and amortization 384 130 514 579 123 702 770 255 1,025 965 247 1,212 General and administrative expense 871 358 1,229 1,266 156 1,422 2,136 724 2,860 2,587 367 2,954 Credit loss expense — 36 36 — 24 24 — 65 65 — 40 40 Total expenses 1,404 2,707 4,111 1,994 2,418 4,412 3,203 5,327 8,530 3,714 5,365 9,079 Income (loss) from operations 396 ( 182 ) 214 78 108 186 414 ( 493 ) ( 79 ) 348 ( 923 ) ( 575 ) Other expense: Interest expense, net 566 103 669 570 109 679 1,137 207 1,344 1,141 218 1,359 Other expense, net 86 165 251 192 — 192 64 181 245 524 218 742 Total other expense, net 652 268 920 762 109 871 1,201 388 1,589 1,665 436 2,101 Net loss $ ( 256 ) $ ( 450 ) $ ( 706 ) $ ( 684 ) $ ( 1 ) $ ( 685 ) $ ( 787 ) $ ( 881 ) $ ( 1,668 ) $ ( 1,317 ) $ ( 1,359 ) $ ( 2,676 ) Total assets for the Real Estate Services segment and Healthcare Services segment were $ 48.5 million and $ 12.8 million , respectively, as of June 30, 2024. Total assets for the Real Estate Services segment and Healthcare Services segment were $ 48.5 million and $ 13.7 million , respectively, as of December 31, 2023 . |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2024 | |
Subsequent Events [Abstract] | |
Subsequent Events | NOTE 14. SUBSEQUENT EVENTS The Company has evaluated all subsequent events through the date the consolidated financial statements were issued and filed with the SEC. |
Organization and Significant _2
Organization and Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2024 | |
Accounting Policies [Abstract] | |
Description of Business | Description of Business Regional Health Properties, Inc.'s (the "Company" or "Regional Health") predecessor was incorporated in Ohio on August 14, 1991, under the name Passport Retirement, Inc. In 1995, Passport Retirement, Inc. acquired substantially all of the assets and liabilities of AdCare Health Systems, Inc. and changed its name to AdCare Health Systems, Inc. ("AdCare"). AdCare completed its initial public offering in November 2006, relocated its executive offices and accounting operations to Georgia in 2012, and changed its state of incorporation from Ohio to Georgia in December 2013. Regional Health Properties, Inc. is a self-managed real estate investment company that invests primarily in real estate purposed for long-term care and senior housing. The Company's business primarily consists of leasing such facilities to third-party tenants, which operate the facilities. The Company has two primary reporting segments: (i) Real Estate, which consists of the leasing and subleasing of long-term care and senior living facilities to third-party tenants and (ii) Healthcare Services segment, which consists of the operation of the Meadowood and Glenvue facilities. Effective August 3, 2023, the Company’s 12.5 % Series B Cumulative Redeemable Preferred Shares (the “Series B Preferred Stock”) is quoted on the OTC Markets Group, Inc.’s OTCQB Venture Market under the symbol “RHEPB”. |
Basis of Presentation | Basis of Presentation The accompanying consolidated financial statements are prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial reporting and with the instructions to Form 10-Q and Rule 8-03 of Article 8 of Regulation S-X. The accompanying condensed consolidated financial statements are unaudited and should be read in conjunction with the 2023 audited consolidated financial statements and notes thereto, which are included in the 2023 Form 10-K filed with the U.S. Securities and Exchange Commission ("SEC") on April 1, 2024. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the unaudited consolidated financial statements and accompanying notes. Actual results could differ materially from those estimates. |
Reclassifications | Reclassifications Certain reclassifications have been made to the amounts reported in the prior period in order to conform to the current period's presentation. A reclassification has been made to certain expenses reported on the consolidated statements of operations in the prior period in order to conform to the current period's presentation. The reclassifications had no material effect on earnings per share. |
Revenue Recognition and Allowances | Revenue Recognition and Allowances Patient Care Revenue . Accounting Standards Codification ("ASC") Topic 606, Revenue from Contracts with Customers, requires a company to recognize revenue when the company transfers control of promised goods and services to a customer. Revenue is recognized in an amount that reflects the consideration to which a company expects to receive in exchange for such goods and services. Revenue from our Healthcare Services business segment is derived from services rendered to patients in the Meadowood and Glenvue facilities. The Company receives payments from the following sources for services rendered in our facilities: (i) the federal government under the Medicare program administered by the Centers for Medicare and Medicaid Services ("CMS"); (ii) state governments under their respective Medicaid and similar programs; (iii) commercial insurers; and (iv) individual patients and clients. The vast majority (greater than 90 %) of the revenue the Company has recognized is from government sources. The Company determines the transaction price based on established billing rates reduced by contractual adjustments provided to third-party payors, discounts provided to uninsured patients and other price concessions. Contractual adjustments and discounts are based on contractual agreements, discount policies and historical experience. These amounts are due from residents or third-party payors and include variable consideration for retroactive adjustments from estimated reimbursements, if any, under reimbursement programs. Performance obligations, such as providing room and board, wound care, intravenous drug therapy, physical therapy, and quality of life activities amongst others, are determined based on the nature of the services provided are determined based on the nature of the services provided. Estimated uncollectible amounts due from patients are generally considered implicit price concessions that are a direct reduction to net patient care revenues. Triple-Net Leased Properties. The Company recognizes rental revenue in accordance with ASC 842, Leases . The Company's triple-net leases provide for periodic and determinable increases in rent. The Company recognizes rental revenues under these leases on a straight-line basis over the applicable lease term when collectability is probable. Recognizing rental income on a straight-line basis generally results in recognized revenues during the first half of a lease term exceeding the cash amounts contractually due from our tenants, creating a straight-line rent receivable that is included in the straight-line rent receivable on our consolidated balance sheets. In the event the Company cannot reasonably estimate the future collection of rent from one or more tenant(s) of the Company's facilities, rental income for the affected facilities is recognized only upon cash collection, and any accumulated straight-line rent receivable is expensed in the period in which the Company deems rent collection to no longer be probable. Management Fee Revenues and Other Revenues . The Company recognizes management fee revenues as services are provided in accordance with ASU 2014-09, Revenue from Contracts with Customers , as codified in ASC 606, which requires revenue to be recognized in an amount that reflects the consideration to which a company expects to receive in exchange for such goods and services. The Company had one contract to manage three facilities (the “Management Contract”) which ended on December 31, 2023. Further, the Company recognizes interest income from loans and investments, using the effective interest method when collectability is probable. The Company applies the effective interest method on a loan-by-loan basis. Allowances. The Company assesses the collectability of its rent receivables, including straight-line rent receivables and working capital loans to tenants. The Company bases its assessment of the collectability of rent receivables and working capital loans to tenants on several factors, including payment history, the financial strength of the tenant and any guarantors, the value of the underlying collateral, and current economic conditions. If the Company’s evaluation of these factors indicates it is probable that the Company will be unable to receive the rent payments or payments on a working capital loan, then the Company provides a reserve against the recognized straight-line rent receivable asset or working capital loan for the portion that we estimate may not be recovered. Payments received on impaired loans are applied against the allowance. If the Company changes its assumptions or estimates regarding the collectability of future rent payments required by a lease or required from a working capital loan to a tenant, then the Company may adjust its reserve to increase or reduce the rental revenue or interest revenue from working capital loans to tenants recognized in the period the Company makes such change in its assumptions or estimates. See Note 7 – Leases . The Company has reserved for approximately 1.5 % of our patient care receivables based on the historic industry standards and continues to assess the adequacy of such reserve. The following table presents the Company's Accounts receivable, net of allowance for the periods presented: (Amounts in 000’s) June 30, 2024 December 31, 2023 Gross receivables Real Estate Services $ 1,015 $ 693 Healthcare Services 2,884 2,750 Subtotal 3,899 3,443 Allowance Real Estate Services — — Healthcare Services ( 2,082 ) ( 2,040 ) Subtotal ( 2,082 ) ( 2,040 ) Accounts receivable, net of allowance $ 1,817 $ 1,403 |
Assets Held for Sale and Discontinued Operations | Assets Held for Sale and Discontinued Operations The Company may decide to sell properties that are held for use. The Company records these properties as assets held for sale when management has committed to a plan to sell the assets, actively seeks a buyer for the assets, and the consummation of the sale is considered probable and is expected within one year. Assets classified as held for sale are reported at the lower of their carrying value or their fair value, less estimated costs to sell. When the carrying value exceeds the fair value, less estimated costs to sell, an impairment expense is recognized. The Company estimates fair value, less estimated closing costs, based on similar real estate sales transactions. These valuation assumptions are based on the three-level valuation hierarchy for fair value measurement and represent Level 2 and 3 inputs. Level 2 inputs are quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets in markets that are not active; and inputs other than quoted prices. Level 3 inputs are unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. See Note 5 for additional details on assets held for sale as of June 30, 2024 and December 31, 2023. Any debt related to assets held for sale or sold during the period are classified as debt related to assets held for sale for the current and prior periods presented in the accompanying consolidated financial statements. Assets held for sale are presented as discontinued operations in all periods presented if the disposition represents a strategic shift that has, or will have, a major effect on the Company's financial position or results of operations. This includes the net gain (or loss) upon disposal of property held for sale, the property's operating results, depreciation and interest expense. In June 2024, the Company, with the support of its Board of Directors, committed to a plan of action to sell the Mt. Trace Property Holdings (Mt. Trace Property”), with a sale probable and subject to customary approvals. As a result, the Company’s management determined that the criteria under GAAP for the Mt. Trace Property to be classified as held for sale were met. |
Prepaid Expenses and Other | Prepaid Expenses and Other As of June 30, 2024 and December 31, 2023, the Company had approximately $ 0.9 million and $ 0.6 million , respectively, in prepaid expenses and other; the $ 0.3 million increase is related to insurance for the Meadowood and Glenvue facility operations, while the other amounts are predominantly for directors' and officers' insurance, NYSE American annual fees, and mortgage insurance premiums. |
Accounts Payable | Accounts Payable The following table presents the Company's Accounts payable for the periods presented: (Amounts in 000’s) June 30, 2024 December 31, 2023 Accounts Payable Real Estate Services $ 1,862 $ 751 Healthcare Services 1,753 1,742 Total Accounts Payable $ 3,615 $ 2,493 |
Other Liabilities | Other Liabilities As of June 30, 2024 and December 31, 2023, the Company had approximately $ 1.9 million and $ 1.8 million , respectively in Other liabilities, consisting of security lease deposits and sublease improvement funds. |
Other Expense, Net | Other Expense, net The Company had retained a law firm to evaluate and assist with opportunities to improve the Company's capital structure. See Note 2 – Series A Preferred Exchange Offer. |
Leases and Leasehold Improvements | Leases and Leasehold Improvements The Company leases certain facilities and equipment in the normal course of business. At the inception of each lease, the Company performs an evaluation to determine whether the lease should be classified as an operating lease or finance lease. As of June 30, 2024, the Company's leased facility is accounted for as an operating lease. For operating leases that contain scheduled rent increases, the Company records rent expense on a straight-line basis over the term of the lease. Leasehold improvements are amortized over the shorter of the useful life of the asset or the lease term. The Company assesses any new contracts or modification of contracts in accordance with ASC 842, Leases , to determine the existence of a lease and its classification. We are reporting revenues and expenses for real estate taxes and insurance where the lessee has not made those payments directly to a third party in accordance with their respective leases with us. |
Insurance | Insurance We maintain general liability, professional liability, and other insurance policies in amounts and with coverage and deductibles we believe are appropriate, based on the nature and risks of our business, historical experience, availability, and industry standards, including for the operations at the Glenvue and Meadowood facilities. Our current policies provide for deductibles for each claim and contain various exclusions from coverage. The Company has self-insured against professional and general liability claims related to its healthcare operations that were discontinued during 2014 and 2015 in connection with its transition from an owner and operator of healthcare properties to a healthcare property holding and leasing company (the "Transition"). For further information, see Note 12 – Commitments and Contingencies , and Note 12 – Commitments and Contingencies, to the consolidated financial statements for the year ended December 31, 2023 for more information. The Company evaluates quarterly the adequacy of its self-insurance reserve based on a number of factors, including: (i) the number of actions pending and the relief sought; (ii) analyses provided by defense counsel, medical experts or other information which comes to light during discovery; (iii) the legal fees and other expenses anticipated to be incurred in defending the actions; (iv) the status and likely success of any mediation or settlement discussions, including estimated settlement amounts and legal fees and other expenses anticipated to be incurred in such settlement, as applicable; and (v) the venues in which the actions have been filed or will be adjudicated. The Company believes that most of the professional and general liability actions are defensible and intends to defend them through final judgment unless settlement is more advantageous to the Company. Accordingly, the self-insurance reserve reflects the Company's estimate of settlement amounts for the pending actions, if applicable, and legal costs of settling or litigating the pending actions, as applicable. Because the self-insurance reserve is based on estimates, the amount of the self-insurance reserve may not be sufficient to cover the settlement amounts actually incurred in settling the pending actions, or the legal costs actually incurred in settling or litigating the pending actions. See Note 8 – Accrued Expenses . In addition, the Company maintains certain other insurance programs, including commercial general liability, property, casualty, directors' and officers' liability, crime, and employment practices liability. |
Net Loss Per Share | Net Loss Per Share Basic net loss per share is computed by dividing net loss attributable to common stockholders by the weighted-average number of shares of common stock outstanding during the respective period. Diluted earnings per share is similar to basic net loss per share except that the net loss is adjusted by the impact of the weighted-average number of shares of common stock outstanding including potentially dilutive securities (such as options, warrants and non-vested common stock) when such securities are not anti-dilutive. Potentially dilutive securities from options, warrants and unvested restricted shares are calculated in accordance with the treasury stock method, which assumes that proceeds from the exercise of all options and warrants with exercise prices exceeding the average market value are used to repurchase common stock at market value. The incremental shares remaining after the proceeds are exhausted represent the potentially dilutive effect of the securities. Securities outstanding that were excluded from the computation, because they would have been anti-dilutive were as follows: June 30, (Share amounts in 000’s) 2024 2023 Stock options 33 13 Warrants - employee 32 32 Warrants - non employee — 1 Total anti-dilutive securities 65 46 The weighted average contractual terms in years for these securities as of June 30, 2024 , with no intrinsic value, are 6.4 years for the stock options and 0.5 years for the warrants. |
Recently Adapted Accounting Pronouncements | Recently Adopted Accounting Pronouncements In March 2023, the FASB issued ASU 2023-01, Leases (Topic 842): Common Control Arrangements (Topic 842) amendments, which requires entities to determine whether related party arrangements between entities under common control are leases. The amendments also address the accounting treatment of leasehold improvements associated with common control leases. They require the lessee to amortize leasehold improvements over the useful life of the improvements to the common control group, regardless of the lease term, as long as the lessee controls the use of the underlying asset. If the lessee no longer controls the use of the asset, the leasehold improvements are accounted for as a transfer between entities under common control through an adjustment to equity. These improvements are also subject to impairment guidance in Topic 360, Property, Plant, and Equipment. The amendment is effective for public entities beginning after December 15, 2023. The Company adopted ASU 2023-01 effective January 1, 2024. The adoption of ASU-2023-01 did not have a material impact on the Company's consolidated financial statements. New Accounting Pronouncements Issued But Not Yet Effective In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures , which requires a public company to disclose information about their reportable segments’ significant expenses and other segment items on an interim and annual basis. A public company with a single reportable segment is required to apply the disclosure requirements in ASU 2023-07, as well as all existing segment disclosures and reconciliation requirements in ASC 280 on an interim and annual basis. ASU 2023-07 is effective for fiscal years beginning after December 15, 2023, and for interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted. The Company is currently evaluating the impact of adopting ASU 2023-07. In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures , which requires a public company, on an annual basis, to provide disclosure of specific categories in the rate reconciliation, as well as disclosure of income taxes paid disaggregated by jurisdiction. ASU 2023-09 is effective for fiscal years beginning after December 15, 2024, with early adoption permitted. The Company does not expect the adoption of ASU 2023-09 to have a material impact on the Company's consolidated financial statements. No other new accounting pronouncement issued or effective has had, or is expected to have, a material impact on the Company's financial statements. |
Organization and Significant _3
Organization and Significant Accounting Policies (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Accounting Policies [Abstract] | |
Company's Accounts Receivable, Net of Allowance | The following table presents the Company's Accounts receivable, net of allowance for the periods presented: (Amounts in 000’s) June 30, 2024 December 31, 2023 Gross receivables Real Estate Services $ 1,015 $ 693 Healthcare Services 2,884 2,750 Subtotal 3,899 3,443 Allowance Real Estate Services — — Healthcare Services ( 2,082 ) ( 2,040 ) Subtotal ( 2,082 ) ( 2,040 ) Accounts receivable, net of allowance $ 1,817 $ 1,403 |
Company's Accounts Payable | The following table presents the Company's Accounts payable for the periods presented: (Amounts in 000’s) June 30, 2024 December 31, 2023 Accounts Payable Real Estate Services $ 1,862 $ 751 Healthcare Services 1,753 1,742 Total Accounts Payable $ 3,615 $ 2,493 |
Schedule of Securities Outstanding that were Excluded From the Computation, Prior to the Use of the Treasury Stock Method, Because They Would Have Been Anti-dilutive | Securities outstanding that were excluded from the computation, because they would have been anti-dilutive were as follows: June 30, (Share amounts in 000’s) 2024 2023 Stock options 33 13 Warrants - employee 32 32 Warrants - non employee — 1 Total anti-dilutive securities 65 46 |
Cash and Restricted Cash (Table
Cash and Restricted Cash (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Restricted Cash And Investments [Abstract] | |
Schedule of Cash and Restricted Cash | The following presents the Company's cash and restricted cash: (Amounts in 000’s) June 30, 2024 December 31, 2023 Cash $ 679 $ 953 Restricted cash: Cash collateral $ 57 $ 159 HUD and other replacement reserves 2,055 2,125 Escrow deposits 466 630 Restricted investments for debt obligations 317 317 Total restricted cash 2,895 3,231 Total cash and restricted cash $ 3,574 $ 4,184 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Property Plant And Equipment [Abstract] | |
Schedule of Property and Equipment | The following table sets forth the Company's property and equipment: (Amounts in 000’s) Estimated June 30, 2024 December 31, 2023 Buildings and improvements 5 - 40 $ 59,914 $ 59,508 Equipment and computer related 2 - 10 1,124 1,187 Land (1) — 2,774 2,774 Property and equipment 63,812 63,469 Less: accumulated depreciation ( 23,946 ) ( 23,071 ) Property and equipment, net $ 39,866 $ 40,398 (1) Includes $ 0.1 m illion of land improvements with an average estimated useful remaining life of approximately 4.5 years as of June 30, 2024. The following table summarizes total depreciation and amortization expense three and six and months ended June 30, 2024 and 2023: Three Months Ended June 30, Six Months Ended June 30, (Amounts in 000’s) 2024 2023 2024 2023 Depreciation $ 406 $ 593 $ 809 $ 993 Amortization 108 109 216 219 Total depreciation and amortization expense $ 514 $ 702 $ 1,025 $ 1,212 |
Assets Held For Sale (Tables)
Assets Held For Sale (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Assets Held For Sale [Abstract] | |
Summary of company's asset held for sale | The following table sets forth the Company's asset held for sale: (Amounts in 000’s) Estimated June 30, 2024 December 31, 2023 Buildings and improvements 5 - 40 $ 7,225 $ 7,225 Less: accumulated depreciation ( 2,374 ) ( 2,286 ) Asset held for sale, net $ 4,851 $ 4,939 |
Intangible Assets and Goodwill
Intangible Assets and Goodwill (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets and Goodwill | Intangible assets and Goodwill consist of the following: (Amounts in 000’s) Bed licenses (1) Bed Licenses - (2) Lease Total Goodwill (2) Balances, December 31, 2023 Gross $ 14,276 $ 2,471 $ 176 $ 16,923 $ 1,585 Accumulated amortization ( 4,997 ) — ( 89 ) ( 5,086 ) — Net carrying amount $ 9,279 $ 2,471 $ 87 $ 11,837 $ 1,585 Balances, June 30, 2024 Gross $ 14,276 $ 2,471 $ 176 $ 16,923 $ 1,585 Accumulated amortization ( 5,203 ) — ( 99 ) ( 5,302 ) — Net carrying amount $ 9,073 $ 2,471 $ 77 $ 11,621 $ 1,585 (1) Non-separable bed licenses are included in property and equipment as is the related accumulated amortization expense (see Note 4 – Property and Equipment ). (2) The Company does not amortize indefinite-lived intangibles, which consist of separable bed licenses and goodwill . |
Schedule of Total Amortization Expense | The following table summarizes amortization expense for the three and six and months ended June 30, 2024 and 2023: Three Months Ended June 30, Six Months Ended June 30, (Amounts in 000’s) 2024 2023 2024 2023 Bed licenses $ 102 $ 103 $ 206 $ 207 Lease rights 6 6 10 12 Total amortization expense $ 108 $ 109 $ 216 $ 219 |
Schedule of Estimated Amortization Expense for All Definite Lived Intangibles | Expected amortization expense for the years ending December 31, for all definite-lived intangibles, for each of the next five years and thereafter is as follows: (Amounts in 000’s) Bed Lease 2024 (6 months remaining) $ 207 $ 9 2025 414 18 2026 414 18 2027 414 18 2028 414 14 Thereafter 7,210 — Total expected amortization expense $ 9,073 $ 77 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Leases [Abstract] | |
Schedule of Future Minimum Lease Payments | Future minimum lease payments for the twelve months ending December 31, for each of the next five years and thereafter is as follows: (Amounts in 000’s) Future Accretion of (1) Operating 2024 (6 months remaining) $ 341 $ ( 8 ) $ 333 2025 672 ( 53 ) 619 2026 658 ( 98 ) 560 2027 671 ( 144 ) 527 2028 685 ( 188 ) 497 Thereafter 230 ( 73 ) 157 Total $ 3,257 $ ( 564 ) $ 2,693 (1) Weighted a verage discount rate 7.98 %. |
Schedule of Future Minimum Lease Receivables | Future minimum lease receivables for the twelve months ending December 31, for each of the next five years and thereafter is as follows: (Amounts 2024 (6 months remaining) $ 3,306 2025 6,696 2026 6,801 2027 6,909 2028 6,758 Thereafter 8,227 Total $ 38,697 |
Accrued Expenses (Tables)
Accrued Expenses (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Payables And Accruals [Abstract] | |
Schedule of Accrued Expenses | Accrued expenses consist of the following: (Amounts in 000’s) June 30, 2024 December 31, 2023 Accrued employee benefits and payroll-related $ 294 $ 255 Real estate and other taxes (1) 3,202 3,077 Self-insured reserve 68 61 Accrued interest 180 225 Unearned rental revenue — 98 Insurance escrow 136 — Other accrued expenses (2) 443 344 Total accrued expenses $ 4,323 $ 4,060 (1) June 30, 2024 includes approximately $ 0.7 million of bed taxes in arrears related to the Wellington Transition in 2020 as well as $ 2.1 million related to our own dates of operation under the Healthcare Services segment and approximately $ 0.4 million property tax accrual for the Real Estate segment. December 31, 2023 includes approximately $ 0.7 million of bed taxes in arrears related to the Wellington Transition in 2020 as well as $ 1.9 million related to our own dates of operation under the Healthcare Services segment and approximately $ 0.5 million property tax accrual for the twelve months ended December 31, 2023 for the Real Estate segment. (2) As of June 30, 2024 and December 31, 2023 , the remaining escheatment liabilities for discontinued operations are $ 0.3 million and are included in other accrued expenses. |
Senior Debt and Other Debt (Tab
Senior Debt and Other Debt (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Debt Disclosure [Abstract] | |
Schedule of Senior Debt and Other Debt | Senior Debt and other debt consists of the following: (Amounts in 000’s) June 30, 2024 December 31, Senior debt—guaranteed by HUD $ 28,566 $ 28,979 Senior debt—guaranteed by USDA (1) 7,113 7,259 Senior debt—guaranteed by SBA (2) 547 557 Senior debt—bonds 5,970 6,117 Senior debt—other mortgage indebtedness 7,866 8,001 Other debt 1,213 889 Subtotal 51,275 51,802 Deferred financing costs ( 920 ) ( 954 ) Unamortized discount on bonds ( 110 ) ( 113 ) Senior debt and other debt $ 50,245 $ 50,735 (1) U.S. Department of Agriculture (USDA) (2) U.S. Small Business Administration (SBA) The following is a detailed listing of the debt facilities that comprise each of the above categories: (Amounts in 000’s) Facility Lender Maturity Interest Rate (1) June 30, 2024 December 31, 2023 Senior debt - guaranteed by HUD (2) The Pavilion Care Center Newpoint Capital 12/01/2039 Fixed 3.97 % $ 783 $ 801 Hearth and Care of Greenfield Newpoint Capital 8/01/2050 Fixed 3.97 % 1,889 1,909 Woodland Manor Newpoint Capital 11/01/2052 Fixed 3.97 % 4,845 4,891 Glenvue Newpoint Capital 10/01/2044 Fixed 3.75 % 6,964 7,077 Autumn Breeze KeyBank 01/01/2045 Fixed 3.65 % 6,056 6,154 Georgetown Newpoint Capital 10/01/2046 Fixed 2.98 % 3,072 3,120 Sumter Valley KeyBank 01/01/2047 Fixed 3.70 % 4,957 5,027 Total $ 28,566 $ 28,979 Senior debt - guaranteed by USDA (3) Mountain Trace (4) Community B&T 12/24/2036 Prime + 1.75 % 10.25 % $ 3,470 $ 3,539 Southland Cadence Bank, NA 07/27/2036 Prime + 1.50 % 10.00 % 3,643 3,720 Total $ 7,113 $ 7,259 Senior debt - guaranteed by SBA Southland (5) Cadence Bank, NA 07/27/2036 Prime + 2.25 % 10.75 % 547 $ 557 Total $ 547 $ 557 (1) Represents interest rates as of June 30, 2024 as adjusted for interest rate floor limitations, if applicable. The rates exclude amortization of deferred financing costs which are approximately 0.13 % per annum. (2) For the seven SNF’s, the Company has term loans insured 100 % by HUD with financial institutions. The loans are secured by, among other things, an assignment of all rents paid under any existing or future leases and rental agreements with respect to the underlying facility. The loans contain customary events of default, including fraud or material misrepresentations or material omission, the commencement of a forfeiture action or proceeding, failure to make required payments, and failure to perform or comply with certain agreements. Upon the occurrence of certain events of default, the lenders may, after receiving the prior written approval of HUD, terminate the loans and all amounts under the loans will become immediately due and payable. In connection with entering into loans, the facilities entered into a healthcare regulatory agreement and a promissory note, each containing customary terms and conditions. (3) For the two SNF’s, the Company has term loans with financial institutions, which are insured 70 % to 80 % by the USDA. The loans have an annual renewal fee for the USDA guarantee of 0.25 % of the guaranteed portion. The loans have prepayment penalties of 1 % through 2020, capped at 1 % for the remainder of the first 10 years of the term and 0 % thereafter. (4) Represents debt liability related to asset held for sale (see Note 5 – Assets Held for Sale ). (5) For one SNF, commonly known as Southland, the Company has a term loan with a financial institution, which is insured 75 % by the SBA. (Amounts in 000’s) Facility Lender Maturity Interest Rate (1) June 30, 2024 December 31, 2023 Senior debt - bonds Eaglewood Bonds Series A City of Springfield, Ohio 05/01/2042 Fixed 7.65 % $ 5,970 $ 6,117 (1) Represents cash interest rates as of June 30, 2024 . The rates exclude amortization of deferred financing of approximately 0.10 % per annum. (Amounts in 000’s) Facility Lender Maturity Interest Rate (1) June 30, 2024 December 31, 2023 Senior debt - other mortgage indebtedness Meadowood (2) Exchange Bank of Alabama 10/01/2026 Fixed 4.50 % $ 3,195 $ 3,237 Coosa (3) Exchange Bank of Alabama 10/10/2026 Fixed 3.95 % 4,671 4,764 Total $ 7,866 $ 8,001 (1) Represents cash interest rates as of June 30, 2024 as adjusted for interest rate floor limitations, if applicable. The rates exclude amortization of deferred financing costs of 0.34 % per annum. (2) The Meadowood Credit Facility is secured by the Meadowood Facility and the assets of Coosa, which is guaranteed by Regional Health Properties, Inc. (3) The Coosa Credit Facility, guaranteed by Regional Health Properties, Inc., includes customary terms, including events of default with an associated annual 5 % default interest rate, and is secured by the Coosa Facility and the assets of Meadowood. Upon the occurrence of certain events of default, the lenders may terminate the Coosa Credit Facility and the Meadowood Credit Facility, and all amounts due under both credit facilities will become immediately due and payable. The Coosa Credit Facility has prepayment penalties of 5 % in the 1 st year, 4 % in the 2 nd year and 1 % thereafter. (Amounts in 000’s) Lender Maturity Interest Rate June 30, 2024 December 31, 2023 Other debt First Insurance Funding (1) Various 2024 Fixed 7.75 % $ 640 $ 369 Key Bank (2) 08/25/2025 Fixed 0.00 % 495 495 Marlin Capital Solutions 06/1/2027 Fixed 5.00 % 18 25 Cavalier Management 3/1/2025 Fixed 6.00 % 60 — Total $ 1,213 $ 889 (1) Annual Insurance financing primarily for the Company's directors and officers insurance. (2) On December 30, 2022, Key Bank and the Company extended the maturity date from August 25, 2023 to August 25, 2025 . |
Summary of the Scheduled Maturities | The schedule below summarizes the scheduled gross maturities as of June 30, 2024 for each of the next five years and thereafter. For the Twelve Months Ended December 31, (Amounts in 000’s) 2024 (6 months remaining) $ 1,189 2025 2,503 2026 8,829 2027 1,560 2028 1,657 Thereafter 35,537 Subtotal $ 51,275 Less: unamortized discounts ( 110 ) Less: deferred financing costs, net ( 920 ) Total notes and other debt $ 50,245 |
Stock Based Compensation (Table
Stock Based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Summary of Recognized Stock Based Compensation | For the three and six months ended June 30, 2024 and 2023, the Company recognized stock-based compensation expense as follows: Three Months Ended June 30, Six Months Ended June 30, (Amounts in 000’s) 2024 2023 2024 2023 Employee compensation: Stock compensation expense $ 23 $ 155 $ 66 $ 236 Forfeitures of stock based awards — — — — Total employee stock-based compensation expense $ 23 $ 155 $ 66 $ 236 |
Summary of Company's Restricted Stock Activity | The following table summarizes the Company's restricted stock activity for the six months ended June 30, 2024: Number of Weighted Avg. Unvested, December 31, 2023 80 $ 5.27 Granted 65 $ 2.18 Vested ( 43 ) $ 6.67 Unvested, June 30, 2024 102 $ 2.70 There were 65,000 |
Summary of Company's Stock Option Activity | The following summarizes the Company's employee and non-employee stock option activity for the six months ended June 30, 2024: Number of Weighted Weighted Aggregate Outstanding, December 31, 2023 33 $ 14.84 6.9 $ — Granted 24 $ 2.03 Outstanding, June 30, 2024 57 $ 9.41 7.7 $ 1.0 Outstanding and Vested, June 30, 2024 44 $ 11.55 7.2 $ — |
Schedule of Exercise Price Range | The following summary information reflects stock options outstanding, vested, and related details as of June 30, 2024: Stock Options Outstanding Stock Options Exercisable Exercise Price Number of Weighted Weighted Vested, June 30, 2024 Weighted $ 2.03 - $ 3.32 48 9.0 $ 2.68 35 $ 2.91 $ 46.80 9 0.5 $ 46.80 9 $ 46.80 Total 57 7.7 $ 9.41 44 $ 11.55 |
Warrant [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule of Warrant Activity | The following summarizes the Company's warrant activity for the six months ended June 30, 2024: Outstanding and Exercisable Number of Weighted Weighted Aggregate Outstanding, December 31, 2023 32 $ 52.50 1.0 $ — Granted — $ — Expired — $ — Outstanding, June 30, 2024 32 $ 52.50 0.5 $ — Outstanding and Vested, June 30, 2024 32 $ 52.50 0.5 $ — |
Segments Results (Tables)
Segments Results (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Segment Reporting [Abstract] | |
Summary of Results of Operations for Reporting Segments | The table below presents the results of operations for our reporting segments for the periods presented. Three Months Ended June 30, Three Months Ended June 30, Six Months Ended June 30, Six Months Ended June 30, 2024 2024 2024 2023 2023 2023 2024 2024 2024 2023 2023 2023 (Amounts in 000’s) Real Estate Services Healthcare Services Total Real Estate Services Healthcare Services Total Real Estate Services Healthcare Services Total Real Estate Services Healthcare Services Total Revenues: Patient care revenues $ — $ 2,525 $ 2,525 $ — $ 2,526 $ 2,526 $ — $ 4,834 $ 4,834 $ — $ 4,442 $ 4,442 Rental revenues 1,800 — 1,800 1,722 — 1,722 3,617 — 3,617 3,430 — 3,430 Management fees — — — 247 — 247 — — — 525 — 525 Other revenues — — — 103 — 103 — — — 107 — 107 Total revenues 1,800 2,525 4,325 2,072 2,526 4,598 3,617 4,834 8,451 4,062 4,442 8,504 Expenses: Patient care expense — 2,183 2,183 — 1,969 1,969 — 4,283 4,283 — 4,290 4,290 Facility rent expense 149 — 149 149 — 149 297 — 297 162 135 297 Cost of management fees — — — — 146 146 — — — — 286 286 Depreciation and amortization 384 130 514 579 123 702 770 255 1,025 965 247 1,212 General and administrative expense 871 358 1,229 1,266 156 1,422 2,136 724 2,860 2,587 367 2,954 Credit loss expense — 36 36 — 24 24 — 65 65 — 40 40 Total expenses 1,404 2,707 4,111 1,994 2,418 4,412 3,203 5,327 8,530 3,714 5,365 9,079 Income (loss) from operations 396 ( 182 ) 214 78 108 186 414 ( 493 ) ( 79 ) 348 ( 923 ) ( 575 ) Other expense: Interest expense, net 566 103 669 570 109 679 1,137 207 1,344 1,141 218 1,359 Other expense, net 86 165 251 192 — 192 64 181 245 524 218 742 Total other expense, net 652 268 920 762 109 871 1,201 388 1,589 1,665 436 2,101 Net loss $ ( 256 ) $ ( 450 ) $ ( 706 ) $ ( 684 ) $ ( 1 ) $ ( 685 ) $ ( 787 ) $ ( 881 ) $ ( 1,668 ) $ ( 1,317 ) $ ( 1,359 ) $ ( 2,676 ) |
Organization and Significant _4
Organization and Significant Accounting Policies - Additional Information (Details) | 6 Months Ended | ||
Aug. 03, 2023 | Jun. 30, 2024 USD ($) Segment | Dec. 31, 2023 USD ($) | |
Finite-Lived Intangible Assets [Line Items] | |||
Number of reportable segments | Segment | 2 | ||
Percentage of revenue recognized from government sources | 90% | ||
Percentage of reserve for patient care receivables | 1.50% | ||
Receivables, estimated allowance for uncollectible accounts | $ 2,082,000 | $ 2,040,000 | |
Accounts receivable, net of allowance | 1,817,000 | 1,403,000 | |
Other liabilities | 1,861,000 | 1,791,000 | |
Prepaid expenses and other | 900,000 | 600,000 | |
Intrinsic Value | 0 | ||
Accrued Expenses | |||
Finite-Lived Intangible Assets [Line Items] | |||
Escheatment liabilities | $ 300,000 | $ 300,000 | |
Employee Stock Option | |||
Finite-Lived Intangible Assets [Line Items] | |||
Weighted average contractual terms | 6 years 4 months 24 days | ||
Warrant | |||
Finite-Lived Intangible Assets [Line Items] | |||
Weighted average contractual terms | 6 months | ||
Directors and Officers | |||
Finite-Lived Intangible Assets [Line Items] | |||
Increase in Prepaid expenses and other | $ 300,000 | ||
Series B Cumulative Redeemable Preferred Shares | |||
Finite-Lived Intangible Assets [Line Items] | |||
Preferred stock, fixed interest rate (percentage) | 12.50% |
Organization and Significant _5
Organization and Significant Accounting Policies - Company's Accounts Receivable, Net of Allowance (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Accounts Notes And Loans Receivable [Line Items] | ||
Gross receivables | $ 3,899 | $ 3,443 |
Allowance | (2,082) | (2,040) |
Accounts receivable, net of allowance | 1,817 | 1,403 |
Real Estate Services | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Gross receivables | 1,015 | 693 |
Allowance | 0 | 0 |
Healthcare Services | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Gross receivables | 2,884 | 2,750 |
Allowance | $ (2,082) | $ (2,040) |
Organization and Significant _6
Organization and Significant Accounting Policies - Company's Accounts Payable (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Accounts Payable [Line Items] | ||
Accounts Payable | $ 3,615 | $ 2,493 |
Real Estate Services | ||
Accounts Payable [Line Items] | ||
Accounts Payable | 1,862 | 751 |
Healthcare Services | ||
Accounts Payable [Line Items] | ||
Accounts Payable | $ 1,753 | $ 1,742 |
Organization and Significant _7
Organization and Significant Accounting Policies - Anti-dilutive Securities (Details) - shares shares in Thousands | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Anti-dilutive securities outstanding that were excluded from the computation | ||
Antidilutive securities | 65 | 46 |
Employee Stock Option | ||
Anti-dilutive securities outstanding that were excluded from the computation | ||
Antidilutive securities | 33 | 13 |
Warrants - employee | ||
Anti-dilutive securities outstanding that were excluded from the computation | ||
Antidilutive securities | 32 | 32 |
Warrants - non employee | ||
Anti-dilutive securities outstanding that were excluded from the computation | ||
Antidilutive securities | 1 |
Liquidity - Additional Informat
Liquidity - Additional Information (Details) - USD ($) | 6 Months Ended | ||||
Jun. 30, 2023 | Oct. 01, 2018 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
Management's plan for increasing liquidity | |||||
Unrestricted cash | $ 700,000 | ||||
Cash flow from operations | 1,102,000 | $ 2,955,000 | |||
Net accounts receivable | 1,020,000 | $ 1,044,000 | |||
Accumulated and unpaid dividends on series A preferred stock | 50,400,000 | ||||
Rent collected or anticipates collecting | 2,809,000 | 2,901,000 | |||
Total indebtedness | 50,245,000 | ||||
Net of deferred financing costs, in indebtedness | 920,000 | ||||
Net of unamortized discounts, in indebtedness | 110,000 | 113,000 | |||
Debt repayments of principal in next 12 months, amortization | 2,400,000 | ||||
Debt instrument, outstanding amount | 51,275,000 | 51,802,000 | |||
Accounts receivable, net of allowance | 1,817,000 | $ 1,403,000 | |||
Deferred financing fees | 920,000 | ||||
Patient Account Receivables And Rent Receivables | |||||
Management's plan for increasing liquidity | |||||
Net accounts receivable | 1,800,000 | ||||
Routine debt | |||||
Management's plan for increasing liquidity | |||||
Debt repayments of principal in next 12 months, amortization | 1,600,000 | ||||
Insurance Financing Amortization | |||||
Management's plan for increasing liquidity | |||||
Debt repayments of principal in next 12 months, amortization | 600,000 | ||||
Bond Debt | |||||
Management's plan for increasing liquidity | |||||
Debt repayments of principal in next 12 months, amortization | $ 200,000 | ||||
10.875% Series A Cumulative Redeemable Preferred Stock | |||||
Management's plan for increasing liquidity | |||||
Preferred stock, fixed interest rate (percentage) | 10.875% | ||||
Increase of preferred stock dividend rate | 12.875% | ||||
Dividends payable, preferred stock | $ 3.2 | ||||
12.5% Series B Cumulative Redeemable Preferred Shares | |||||
Management's plan for increasing liquidity | |||||
Preferred stock, fixed interest rate (percentage) | 12.50% | ||||
Retire Or Refinance Of Series A Preferred Stock [Member] | |||||
Management's plan for increasing liquidity | |||||
Cost associated with retire or refinance of outstanding shares | $ 0 | $ 500,000 |
Cash and Restricted Cash - Sche
Cash and Restricted Cash - Schedule of Cash and Restricted Cash (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 | Jun. 30, 2023 | Dec. 31, 2022 |
Restricted Cash And Investments [Line Items] | ||||
Cash | $ 679 | $ 953 | ||
Restricted cash: | ||||
Cash collateral | 57 | 159 | ||
HUD and other replacement reserves | 2,055 | 2,125 | ||
Escrow deposits | 466 | 630 | ||
Restricted investments for debt obligations | 317 | 317 | ||
Total restricted cash | 2,895 | 3,231 | ||
Total cash and restricted cash | $ 3,574 | $ 4,184 | $ 4,865 | $ 3,909 |
Property and Equipment - Schedu
Property and Equipment - Schedule of Property and Equipment (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Property Plant and Equipment [Line Items] | ||
Property and equipment | $ 63,812 | $ 63,469 |
Less: accumulated depreciation and amortization | (23,946) | (23,071) |
Property and equipment, net | 39,866 | 40,398 |
Buildings and Improvements | ||
Property Plant and Equipment [Line Items] | ||
Property and equipment | $ 59,914 | 59,508 |
Buildings and Improvements | Minimum | ||
Property Plant and Equipment [Line Items] | ||
Useful lives | 5 years | |
Buildings and Improvements | Maximum | ||
Property Plant and Equipment [Line Items] | ||
Useful lives | 40 years | |
Equipment and Computer Related | ||
Property Plant and Equipment [Line Items] | ||
Property and equipment | $ 1,124 | 1,187 |
Equipment and Computer Related | Minimum | ||
Property Plant and Equipment [Line Items] | ||
Useful lives | 2 years | |
Equipment and Computer Related | Maximum | ||
Property Plant and Equipment [Line Items] | ||
Useful lives | 10 years | |
Land | ||
Property Plant and Equipment [Line Items] | ||
Property and equipment | $ 2,774 | $ 2,774 |
Property and Equipment - Sche_2
Property and Equipment - Schedule of Property and Equipment (Parenthetical) (Details) $ in Millions | Jun. 30, 2024 USD ($) |
Property Plant and Equipment [Line Items] | |
Land improvements | $ 0.1 |
Land Improvements | |
Property Plant and Equipment [Line Items] | |
Useful lives | 4 years 6 months |
Property and Equipment - Sche_3
Property and Equipment - Schedule of Total Depreciation and Amortization Expense of Property and Equipment (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Property Plant And Equipment [Abstract] | ||||
Depreciation | $ 406 | $ 593 | $ 809 | $ 993 |
Amortization | 108 | 109 | 216 | 219 |
Total depreciation and amortization expense | $ 514 | $ 702 | $ 1,025 | $ 1,212 |
Assets Held For Sale - Summary
Assets Held For Sale - Summary of company's asset held for sale (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2024 | Dec. 31, 2023 | |
Long-Lived Assets Held-for-Sale [Line Items] | ||
Less: accumulated depreciation | $ (2,374) | $ (2,286) |
Asset held for sale, net | 4,851 | 4,939 |
Buildings and Improvements | ||
Long-Lived Assets Held-for-Sale [Line Items] | ||
Asset held for sale, gross | $ 7,225 | $ 7,225 |
Minimum | Buildings and Improvements | ||
Long-Lived Assets Held-for-Sale [Line Items] | ||
Estimated Useful Lives (Years) | 5 years | |
Maximum | Buildings and Improvements | ||
Long-Lived Assets Held-for-Sale [Line Items] | ||
Estimated Useful Lives (Years) | 40 years |
Intangible Assets and Goodwil_2
Intangible Assets and Goodwill - Schedule of Intangible Assets and Goodwill (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 | |
Intangible assets net excluding goodwill | |||
Finite and indefinite lived intangible assets, gross | $ 16,923 | $ 16,923 | |
Finite and indefinite lived intangible assets, accumulated amortization | (5,302) | (5,086) | |
Intangible assets, net carrying amount | 11,621 | 11,837 | |
Goodwill Roll Forward | |||
Goodwill, Gross | 1,585 | 1,585 | |
Goodwill | 1,585 | 1,585 | |
Bed Licenses Separable | |||
Intangible assets net excluding goodwill | |||
Finite and indefinite lived intangible assets, gross | [1] | 2,471 | 2,471 |
Intangible assets, net carrying amount | [1] | 2,471 | 2,471 |
Bed Licenses Included In Property And Equipment | |||
Intangible assets net excluding goodwill | |||
Finite and indefinite lived intangible assets, gross | [2] | 14,276 | 14,276 |
Finite and indefinite lived intangible assets, accumulated amortization | [2] | (5,203) | (4,997) |
Intangible assets, net carrying amount | [2] | 9,073 | 9,279 |
Lease Rights | |||
Intangible assets net excluding goodwill | |||
Finite and indefinite lived intangible assets, gross | 176 | 176 | |
Finite and indefinite lived intangible assets, accumulated amortization | (99) | (89) | |
Intangible assets, net carrying amount | $ 77 | $ 87 | |
[1] The Company does not amortize indefinite-lived intangibles, which consist of separable bed licenses and goodwill Non-separable bed licenses are included in property and equipment as is the related accumulated amortization expense (see Note 4 – Property and Equipment ). |
Intangible Assets and Goodwil_3
Intangible Assets and Goodwill - Schedule of Total Amortization Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Finite-Lived Intangible Assets [Line Items] | ||||
Amortization | $ 108 | $ 109 | $ 216 | $ 219 |
Bed Licenses Included In Property And Equipment | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Amortization | 102 | 103 | 206 | 207 |
Lease Rights | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Amortization | $ 6 | $ 6 | $ 10 | $ 12 |
Intangible Assets and Goodwil_4
Intangible Assets and Goodwill - Schedule of Estimated Amortization Expense for All Definite Lived Intangibles (Details) $ in Thousands | Jun. 30, 2024 USD ($) |
Bed Licenses Included In Property And Equipment | |
Finite Lived Intangible Assets [Line Items] | |
2024 (6 months remaining) | $ 207 |
2025 | 414 |
2026 | 414 |
2027 | 414 |
Thereafter | 7,210 |
Total expected amortization expense | 9,073 |
Lease Rights | |
Finite Lived Intangible Assets [Line Items] | |
2024 (6 months remaining) | 9 |
2025 | 18 |
2026 | 18 |
2027 | 18 |
Total expected amortization expense | $ 77 |
Leases - Operating Leases - Add
Leases - Operating Leases - Additional Information (Details) | Jun. 30, 2024 ft² |
GEORGIA | |
Operating Leased Assets [Line Items] | |
Office space subleased | 2,000 |
Covington, Ohio | |
Operating Leased Assets [Line Items] | |
Weighted average remaining lease term | 4 years 9 months 18 days |
Leases - Schedule of Future Min
Leases - Schedule of Future Minimum Lease Payments (Details) $ in Thousands | Jun. 30, 2024 USD ($) | |
Future Rental Payments [Abstract] | ||
2024 (6 months remaining) | $ 341 | |
2025 | 672 | |
2026 | 658 | |
2027 | 671 | |
2028 | 685 | |
Thereafter | 230 | |
Total | 3,257 | |
Accretion of Lease Liability [Abstract] | ||
2024 (6 months remaining) | (8) | [1] |
2025 | (53) | [1] |
2026 | (98) | [1] |
2027 | (144) | [1] |
2028 | (188) | [1] |
Thereafter | (73) | [1] |
Total | (564) | [1] |
Operating Lease Obligation [Abstract] | ||
2024 (6 months remaining) | 333 | |
2025 | 619 | |
2026 | 560 | |
2027 | 527 | |
2028 | 497 | |
Thereafter | 157 | |
Total | $ 2,693 | |
[1] Weighted a verage discount rate 7.98 %. |
Leases - Schedule of Future M_2
Leases - Schedule of Future Minimum Lease Payments (Parenthetical) (Details) | Jun. 30, 2024 |
Leases [Abstract] | |
Weighted average discount rate | 7.98% |
Leases - Facilities Lessor - Ad
Leases - Facilities Lessor - Additional Information (Details) | 6 Months Ended |
Jun. 30, 2024 Facility | |
Leases [Abstract] | |
Number of owned facilities | 11 |
Number of owned facilities, Lessor | 9 |
Number of owned facilities, Sub lessor | 1 |
Weighted average remaining lease term, Facilities lessor | 5 years |
Number of sublease agreements executed, owned by company | 10 |
Leases - Schedule of Future M_3
Leases - Schedule of Future Minimum Lease Receivables from Company's Facilities Leased and Subleased to Third Party Tenants (Details) $ in Thousands | Jun. 30, 2024 USD ($) |
Operating Leases Future Minimum Payments Receivable [Abstract] | |
2024 (6 months remaining) | $ 3,306 |
2025 | 6,696 |
2026 | 6,801 |
2027 | 6,909 |
2028 | 6,758 |
Thereafter | 8,227 |
Total | $ 38,697 |
Accrued Expenses - Schedule of
Accrued Expenses - Schedule of Accrued Expenses (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 | |
Payables And Accruals [Abstract] | |||
Accrued employee benefits and payroll-related | $ 294 | $ 255 | |
Real estate and other taxes | [1] | 3,202 | 3,077 |
Self-insured reserve | 68 | 61 | |
Accrued interest | 180 | 225 | |
Unearned rental revenue | 98 | ||
Insurance escrow | 136 | ||
Other accrued expenses | [2] | 443 | 344 |
Total accrued expenses | $ 4,323 | $ 4,060 | |
[1] June 30, 2024 includes approximately $ 0.7 million of bed taxes in arrears related to the Wellington Transition in 2020 as well as $ 2.1 million related to our own dates of operation under the Healthcare Services segment and approximately $ 0.4 million property tax accrual for the Real Estate segment. December 31, 2023 includes approximately $ 0.7 million of bed taxes in arrears related to the Wellington Transition in 2020 as well as $ 1.9 million related to our own dates of operation under the Healthcare Services segment and approximately $ 0.5 million property tax accrual for the twelve months ended December 31, 2023 for the Real Estate segment. As of June 30, 2024 and December 31, 2023 , the remaining escheatment liabilities for discontinued operations are $ 0.3 million and are included in other accrued expenses. |
Accrued Expenses - Schedule o_2
Accrued Expenses - Schedule of Accrued Expenses (Parenthetical) (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Accrued Expenses | ||
Payables And Accruals [Line Items] | ||
Escheatment liabilities | $ 0.3 | $ 0.3 |
Healthcare Services Segment | ||
Payables And Accruals [Line Items] | ||
Bed taxes | 2.1 | 1.9 |
Real Estate Services | ||
Payables And Accruals [Line Items] | ||
Accrued property tax | 0.4 | 0.5 |
Wellington Transition | Healthcare Services Segment | ||
Payables And Accruals [Line Items] | ||
Bed taxes | $ 0.7 | $ 0.7 |
Senior Debt and Other Debt - Su
Senior Debt and Other Debt - Summary of Debt (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Debt Instrument [Line Items] | ||
Debt instrument, outstanding amount | $ 51,275 | $ 51,802 |
Deferred financing costs | (920) | (954) |
Unamortized discount on bonds | (110) | (113) |
Senior debt and other debt | 50,245 | 50,735 |
Senior debt - guaranteed by HUD | ||
Debt Instrument [Line Items] | ||
Debt instrument, outstanding amount | 28,566 | 28,979 |
Senior debt - guaranteed by USDA | ||
Debt Instrument [Line Items] | ||
Debt instrument, outstanding amount | 7,113 | 7,259 |
Senior debt - guaranteed by SBA | ||
Debt Instrument [Line Items] | ||
Debt instrument, outstanding amount | 547 | 557 |
Senior debt Bonds, net of discount | ||
Debt Instrument [Line Items] | ||
Debt instrument, outstanding amount | 5,970 | 6,117 |
Senior debt - other mortgage indebtedness | ||
Debt Instrument [Line Items] | ||
Debt instrument, outstanding amount | 7,866 | 8,001 |
Other Debt | ||
Debt Instrument [Line Items] | ||
Debt instrument, outstanding amount | $ 1,213 | $ 889 |
Senior Debt and Other Debt - De
Senior Debt and Other Debt - Details of Long-term Debt (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2024 | Dec. 31, 2023 | |
Debt Instrument [Line Items] | ||
Debt instrument, outstanding amount | $ 51,275 | $ 51,802 |
Senior debt - guaranteed by HUD | ||
Debt Instrument [Line Items] | ||
Debt instrument, outstanding amount | 28,566 | 28,979 |
Senior debt - guaranteed by USDA | ||
Debt Instrument [Line Items] | ||
Debt instrument, outstanding amount | 7,113 | 7,259 |
Senior debt - guaranteed by SBA | ||
Debt Instrument [Line Items] | ||
Debt instrument, outstanding amount | 547 | 557 |
Senior Debt Other Mortgage Indebtedness | ||
Debt Instrument [Line Items] | ||
Debt instrument, outstanding amount | 7,866 | 8,001 |
Senior Debt Obligations | Senior debt - guaranteed by HUD | ||
Debt Instrument [Line Items] | ||
Debt instrument, outstanding amount | 28,566 | 28,979 |
Senior Debt Obligations | Senior debt - guaranteed by USDA | ||
Debt Instrument [Line Items] | ||
Debt instrument, outstanding amount | 7,113 | 7,259 |
Senior Debt Obligations | Senior debt - guaranteed by SBA | ||
Debt Instrument [Line Items] | ||
Debt instrument, outstanding amount | 547 | 557 |
Other Debt | ||
Debt Instrument [Line Items] | ||
Debt instrument, outstanding amount | $ 1,213 | 889 |
Newpoint Capital | The Pavilion Care Center | Senior Debt Obligations | Senior debt - guaranteed by HUD | ||
Debt Instrument [Line Items] | ||
Maturity date | Dec. 01, 2039 | |
Interest rate | 3.97% | |
Debt instrument, outstanding amount | $ 783 | 801 |
Newpoint Capital | Hearth And Care Of Greenfield | Senior Debt Obligations | Senior debt - guaranteed by HUD | ||
Debt Instrument [Line Items] | ||
Maturity date | Aug. 01, 2050 | |
Interest rate | 3.97% | |
Debt instrument, outstanding amount | $ 1,889 | 1,909 |
Newpoint Capital | Woodland Manor | Senior Debt Obligations | Senior debt - guaranteed by HUD | ||
Debt Instrument [Line Items] | ||
Maturity date | Nov. 01, 2052 | |
Interest rate | 3.97% | |
Debt instrument, outstanding amount | $ 4,845 | 4,891 |
Newpoint Capital | Glenvue H&R | Senior Debt Obligations | Senior debt - guaranteed by HUD | ||
Debt Instrument [Line Items] | ||
Maturity date | Oct. 01, 2044 | |
Interest rate | 3.75% | |
Debt instrument, outstanding amount | $ 6,964 | 7,077 |
Newpoint Capital | Georgetown Health | Senior Debt Obligations | Senior debt - guaranteed by HUD | ||
Debt Instrument [Line Items] | ||
Maturity date | Oct. 01, 2046 | |
Interest rate | 2.98% | |
Debt instrument, outstanding amount | $ 3,072 | 3,120 |
KeyBank | Other Debt | ||
Debt Instrument [Line Items] | ||
Maturity date | Aug. 25, 2025 | |
Interest rate | 0% | |
Debt instrument, outstanding amount | $ 495 | 495 |
KeyBank | Autumn Breeze | Senior Debt Obligations | Senior debt - guaranteed by HUD | ||
Debt Instrument [Line Items] | ||
Maturity date | Jan. 01, 2045 | |
Interest rate | 3.65% | |
Debt instrument, outstanding amount | $ 6,056 | 6,154 |
KeyBank | Sumter Valley | Senior Debt Obligations | Senior debt - guaranteed by HUD | ||
Debt Instrument [Line Items] | ||
Maturity date | Jan. 01, 2047 | |
Interest rate | 3.70% | |
Debt instrument, outstanding amount | $ 4,957 | 5,027 |
Marlin Capital Solutions | Other Debt | ||
Debt Instrument [Line Items] | ||
Maturity date | Jun. 01, 2027 | |
Interest rate | 5% | |
Debt instrument, outstanding amount | $ 18 | 25 |
Community Bank | Mountain Trace Rehab | Senior Debt Obligations | Senior debt - guaranteed by USDA | ||
Debt Instrument [Line Items] | ||
Maturity date | Dec. 24, 2036 | |
Effective interest rate (as a percent) | 10.25% | |
Debt instrument, outstanding amount | $ 3,470 | 3,539 |
Community Bank | Mountain Trace Rehab | Senior Debt Obligations | Senior debt - guaranteed by USDA | Prime Rate | ||
Debt Instrument [Line Items] | ||
Basis spread | 1.75% | |
Cadence Bank N A | Southland Healthcare | Senior Debt Obligations | Senior debt - guaranteed by USDA | ||
Debt Instrument [Line Items] | ||
Maturity date | Jul. 27, 2036 | |
Effective interest rate (as a percent) | 10% | |
Debt instrument, outstanding amount | $ 3,643 | 3,720 |
Cadence Bank N A | Southland Healthcare | Senior Debt Obligations | Senior debt - guaranteed by USDA | Prime Rate | ||
Debt Instrument [Line Items] | ||
Basis spread | 1.50% | |
Cadence Bank N A | Southland Healthcare | Senior Debt Obligations | Senior debt - guaranteed by SBA | ||
Debt Instrument [Line Items] | ||
Maturity date | Jul. 27, 2036 | |
Effective interest rate (as a percent) | 10.75% | |
Debt instrument, outstanding amount | $ 547 | 557 |
Cadence Bank N A | Southland Healthcare | Senior Debt Obligations | Senior debt - guaranteed by SBA | Prime Rate | ||
Debt Instrument [Line Items] | ||
Basis spread | 2.25% | |
City of Springfield | Eaglewood Care Center | Bonds | Bonds Series A | ||
Debt Instrument [Line Items] | ||
Maturity date | May 01, 2042 | |
Interest rate | 7.65% | |
Debt instrument, outstanding amount | $ 5,970 | 6,117 |
Exchange Bank Of Alabama | Meadowood Facility | ||
Debt Instrument [Line Items] | ||
Maturity date | Oct. 01, 2026 | |
Effective interest rate (as a percent) | 4.50% | |
Exchange Bank Of Alabama | Meadowood Facility | Senior Debt Other Mortgage Indebtedness | ||
Debt Instrument [Line Items] | ||
Debt instrument, outstanding amount | $ 3,195 | 3,237 |
Exchange Bank Of Alabama | Coosa Valley Health Care | ||
Debt Instrument [Line Items] | ||
Maturity date | Oct. 10, 2026 | |
Effective interest rate (as a percent) | 3.95% | |
Exchange Bank Of Alabama | Coosa Valley Health Care | Senior Debt Other Mortgage Indebtedness | ||
Debt Instrument [Line Items] | ||
Debt instrument, outstanding amount | $ 4,671 | 4,764 |
First Insurance Funding | Other Debt | ||
Debt Instrument [Line Items] | ||
Maturity date | Various 2024 | |
Interest rate | 7.75% | |
Debt instrument, outstanding amount | $ 640 | $ 369 |
Cavalier Management | Other Debt | ||
Debt Instrument [Line Items] | ||
Maturity date | Jan. 03, 2025 | |
Interest rate | 6% | |
Debt instrument, outstanding amount | $ 60 |
Senior Debt and Other Debt - _2
Senior Debt and Other Debt - Details of Long-term Debt (Parenthetical) (Details) - Facility | 6 Months Ended | |
Dec. 30, 2022 | Jun. 30, 2024 | |
Coosa Valley Health Care | ||
Debt Instrument [Line Items] | ||
Prepayment penalties capped percentage | 5% | |
Prepayment penalties percentage capped thereafter | 1% | |
Default interest rate | 5% | |
Prepayment penalties capped percentage in second year | 4% | |
KeyBank | ||
Debt Instrument [Line Items] | ||
Debt instrument maturity date start range | Aug. 25, 2023 | |
Debt instrument maturity date end range | Aug. 25, 2025 | |
Senior debt - guaranteed by HUD | ||
Debt Instrument [Line Items] | ||
Number of skilled nursing facilities | 7 | |
Percentage of debt insured | 100% | |
Senior debt - guaranteed by USDA | ||
Debt Instrument [Line Items] | ||
Number of skilled nursing facilities | 2 | |
Annual renewal fee for the USDA guarantee (as a percent) | 0.25% | |
Debt Instrument Prepayment Penalties Percentage | 1% | |
Prepayment penalties capped percentage | 1% | |
Prepayment penalties percentage capped, period | 10 years | |
Prepayment penalties percentage capped thereafter | 0% | |
Senior debt - guaranteed by SBA | ||
Debt Instrument [Line Items] | ||
Number of skilled nursing facilities | 1 | |
Percentage of debt insured | 75% | |
Senior debt Bonds, net of discount | ||
Debt Instrument [Line Items] | ||
Amortization of deferred financing costs (in percentage) | 0.10% | |
Senior debt - other mortgage indebtedness | ||
Debt Instrument [Line Items] | ||
Amortization of deferred financing costs (in percentage) | 0.34% | |
Minimum | Senior debt - guaranteed by USDA | ||
Debt Instrument [Line Items] | ||
Percentage of debt insured | 70% | |
Maximum | ||
Debt Instrument [Line Items] | ||
Amortization of deferred financing costs (in percentage) | 0.13% | |
Maximum | Senior debt - guaranteed by USDA | ||
Debt Instrument [Line Items] | ||
Percentage of debt insured | 80% |
Senior Debt and Other Debt - Ad
Senior Debt and Other Debt - Additional Information (Details) | Jun. 30, 2024 Credit_instrument |
Debt Disclosure [Abstract] | |
Number of credit related instruments | 17 |
Senior Debt and Other Debt - _3
Senior Debt and Other Debt - Summary of the Scheduled Maturities (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Debt Disclosure [Abstract] | ||
2024 (6 months remaining) | $ 1,189 | |
2025 | 2,503 | |
2026 | 8,829 | |
2027 | 1,560 | |
2028 | 1,657 | |
Thereafter | 35,537 | |
Subtotal | 51,275 | $ 51,802 |
Less: unamortized discounts | (110) | $ (113) |
Less: deferred financing costs, net | (920) | |
Total notes and other debt | $ 50,245 |
Common and Preferred Stock - Ad
Common and Preferred Stock - Additional Information (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||||
Jun. 30, 2023 | Jun. 27, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
Class of Stock [Line Items] | |||||||
Gain on extinguishment of preferred stock | $ 43,395,000 | $ 43,395,000 | |||||
Common stock, shares authorized | 55,000,000 | 55,000,000 | 55,000,000 | ||||
Common stock, shares issued | 1,915,000 | 1,915,000 | 1,850,000 | ||||
Common stock, shares outstanding | 1,904,000 | 1,904,000 | 1,839,000 | ||||
Series A Preferred Stock | |||||||
Class of Stock [Line Items] | |||||||
Preferred stock, shares outstanding | 560,000 | 560,000 | 560,000 | ||||
Preferred stock, shares issued | 560,000 | 560,000 | 560,000 | ||||
Preferred stock, shares authorized | 560,000 | 560,000 | 560,000 | ||||
Preferred stock, redemption price per share | $ 5 | ||||||
Preferred stock terms | Series A Preferred Stock when voting as a single class with any other class or series of stock to one vote per $5.00 liquidation preference. | ||||||
Gain on extinguishment of preferred stock | $ 43,400,000 | ||||||
Fair value of the preferred stock per share | $ 0.76 | ||||||
Stock retired and exchanged | 2,252,272 | ||||||
Stated liquidation preference | $ 5 | ||||||
Dividends paid, preferred stock | $ 0 | ||||||
Preferred stock, fixed interest rate (percentage) | 10.875% | ||||||
Series B Preferred Stock | |||||||
Class of Stock [Line Items] | |||||||
Preferred stock, shares outstanding | 2,252,000 | 2,252,000 | 2,252,000 | ||||
Preferred stock, shares issued | 2,252,000 | 2,252,000 | 2,252,000 | ||||
Preferred stock, shares authorized | 2,812,000 | 2,812,000 | 2,812,000 | ||||
Fair value of the preferred stock per share | $ 8.26 | ||||||
Stock retired and exchanged | 2,252,272 | ||||||
Stated liquidation preference | $ 10 | $ 10 | |||||
Preferred stock liquidation preference increase over time | 25 | ||||||
Preferred stock liquidation preference reduced per share | $ 5 | ||||||
Dividends paid, preferred stock | $ 0 | $ 0 | $ 0 | 0 | |||
Preferred stock, fixed interest rate (percentage) | 12.50% | ||||||
Dividend period commencing date | Jul. 01, 2027 | ||||||
Series B Preferred Stock | Maximum | |||||||
Class of Stock [Line Items] | |||||||
Preferred stock, shares outstanding | 200,000 | 200,000 | |||||
Common Stock | |||||||
Class of Stock [Line Items] | |||||||
Common stock, shares authorized | 55,000,000 | 55,000,000 | |||||
Common stock, shares issued | 1,914,908 | 1,914,908 | |||||
Common stock, shares outstanding | 1,904,028 | 1,904,028 | |||||
Dividends paid, common stock | $ 0 | $ 0 | |||||
Preferred Stock | |||||||
Class of Stock [Line Items] | |||||||
Preferred stock, shares outstanding | 2,811,535 | 2,811,535 | |||||
Preferred stock, shares issued | 2,811,535 | 2,811,535 | |||||
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Stock Based Compensation - Addi
Stock Based Compensation - Additional Information (Details) | 6 Months Ended |
Jun. 30, 2024 USD ($) $ / shares shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Fair value of the option granted | $ / shares | $ 1.76 |
Expected term | 5 years 3 months 7 days |
Risk free interest rate | 3.81% |
Dividend yield | 0% |
Expected volatility | 127.14% |
Warrant | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Warrants granted | 0 |
Employee | Warrant | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized compensation expense | $ | $ 0 |
Warrants granted | 0 |
Restricted stock | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized compensation expense | $ | $ 243,000 |
Period of recognition of compensation expense | 2 years 4 months 24 days |
Restricted stock awards granted | 65,000 |
Employee Stock Option | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized compensation expense | $ | $ 11,000 |
Period of recognition of compensation expense | 6 months |
Options, granted during the period | 24,000 |
Exercise price | $ / shares | $ 2.03 |
2020 Plan | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Additional award granted | 0 |
Options, granted during the period | 24,000 |
Exercise price | $ / shares | $ 2.03 |
2023 Plan | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of securities remaining available for future issuance | 136,000 |
Stock Based Compensation - Summ
Stock Based Compensation - Summary of Recognized Stock Based Compensation (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total stock-based compensation expense | $ 23 | $ 155 | $ 66 | $ 236 |
Employee | Stock compensation expense | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total stock-based compensation expense | 23 | 155 | 66 | 236 |
Employee | Forfeitures of Stock Based Awards | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total stock-based compensation expense | $ 0 | $ 0 | $ 0 | $ 0 |
Stock Based Compensation - Su_2
Stock Based Compensation - Summary of Company's Restricted Stock Activity (Details) - Restricted Stock shares in Thousands | 6 Months Ended |
Jun. 30, 2024 $ / shares shares | |
Number of Shares (000's) | |
Unvested at the beginning of the period (in shares) | shares | 80 |
Granted (in shares) | shares | 65 |
Vested (in shares) | shares | (43) |
Unvested at the end of the period (in shares) | shares | 102 |
Weighted Average Grant Date Fair Value | |
Unvested at the beginning of the period (in dollars per share) | $ / shares | $ 5.27 |
Granted (in dollars per share) | $ / shares | 2.18 |
Vested (in dollars per share) | $ / shares | 6.67 |
Unvested at the ending of the period (in dollars per share) | $ / shares | $ 2.7 |
Stock Based Compensation - Su_3
Stock Based Compensation - Summary of Company's Stock Option Activity (Details) - Employee Stock Option [Member] - USD ($) $ / shares in Units, shares in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2024 | Dec. 31, 2023 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||
Beginning balance (shares) | 33 | |
Granted, number of shares | 24 | |
Ending balance (shares) | 57 | 33 |
Outstanding and Vested,ending balance (shares) | 44 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | ||
Beginning balance (USD per share) | $ 14.84 | |
Exercise price | 2.03 | |
Ending balance (USD per share) | 9.41 | $ 14.84 |
Outstanding and Vested, ending balance (USD per share) | $ 11.55 | |
Additional disclosures | ||
Outstanding - weighted average remaining contractual term | 7 years 8 months 12 days | 6 years 10 months 24 days |
Outstanding and vested - weighted average remaining contractual term | 7 years 2 months 12 days | |
Outstanding, aggregate intrinsic value | $ 1,000 | $ 0 |
Outstanding and vested, aggregate intrinsic value | $ 0 |
Stock Based Compensation - Sche
Stock Based Compensation - Schedule of Exercise Price Range (Details) shares in Thousands | 6 Months Ended |
Jun. 30, 2024 $ / shares shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Stock options outstanding, number (shares) | shares | 57 |
Stock options outstanding, weighted average remaining contractual term (in years) | 7 years 8 months 12 days |
Stock options outstanding, weighted average exercise price (USD per share) | $ 9.41 |
Stock options exercisable, vested and exercisable (shares) | shares | 44 |
Stock options exercisable, weighted average exercise price (USD per share) | $ 11.55 |
$2.03-$3.32 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Stock options outstanding, number (shares) | shares | 48 |
Stock options outstanding, weighted average remaining contractual term (in years) | 9 years |
Stock options outstanding, weighted average exercise price (USD per share) | $ 2.68 |
Stock options exercisable, vested and exercisable (shares) | shares | 35 |
Stock options exercisable, weighted average exercise price (USD per share) | $ 2.91 |
Exercise price, minimum (USD per share) | 2.03 |
Exercise price, maximum (USD per share) | $ 3.32 |
$46.80 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Stock options outstanding, number (shares) | shares | 9 |
Stock options outstanding, weighted average remaining contractual term (in years) | 6 months |
Stock options outstanding, weighted average exercise price (USD per share) | $ 46.80 |
Stock options exercisable, vested and exercisable (shares) | shares | 9 |
Stock options exercisable, weighted average exercise price (USD per share) | $ 46.80 |
Exercise price, (USD per share) | $ 46.8 |
Stock Based Compensation - Warr
Stock Based Compensation - Warrant Activity (Details) - Warrant [Member] - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2024 | Dec. 31, 2023 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Outstanding and vested at the begining of the period (in shares) | 32 | |
Granted (in shares) | 0 | |
Expired (in shares) | 0 | |
Outstanding and vested at the ending of the period (in shares) | 32 | 32 |
Outstanding and vested at the ending of the period (in dollars per share) | $ 52.5 | $ 52.5 |
Granted (in dollars per share) | 0 | |
Expired (in dollars per share) | $ 0 | |
Weighted average remaining contractual term (in years) | 6 months | 1 year |
Aggregate intrinsic value (in dollars) | $ 0 | $ 0 |
Segment Results - Additional In
Segment Results - Additional Information (Details) $ in Thousands | 6 Months Ended | |
Jun. 30, 2024 USD ($) Segment | Dec. 31, 2023 USD ($) | |
Segment Reporting Information [Line Items] | ||
Number of primary reporting segments | Segment | 2 | |
Description of primary reporting segments | (i) Real Estate Services, which consists of the leasing and subleasing of long-term care and senior living facilities to third-party tenants, including the Company's management of three facilities on behalf of third-party owners which ended on December 31, 2023; and (ii) Healthcare Services, which consists of the operation of the Meadowood and Glenvue facilities. | |
Assets | $ 61,320 | $ 62,181 |
Real Estate Services | ||
Segment Reporting Information [Line Items] | ||
Assets | 48,500 | 48,500 |
Healthcare Services Segment | ||
Segment Reporting Information [Line Items] | ||
Assets | $ 12,800 | $ 13,700 |
Segment Results - Summary of Re
Segment Results - Summary of Results of Operations for Reporting Segments (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Revenues: | ||||
Total revenues | $ 4,325 | $ 4,598 | $ 8,451 | $ 8,504 |
Rental revenues | 1,800 | 1,722 | 3,617 | 3,430 |
Expenses: | ||||
Patient care expense | 2,183 | 1,969 | 4,283 | 4,290 |
Facility rent expense | 149 | 149 | 297 | 297 |
Cost of management fees | 0 | 146 | 0 | 286 |
Depreciation and amortization | 514 | 702 | 1,025 | 1,212 |
General and administrative expense | 1,229 | 1,422 | 2,860 | 2,954 |
Credit loss expense | 36 | 24 | 65 | 40 |
Total expenses | 4,111 | 4,412 | 8,530 | 9,079 |
Income (loss) from operations | 214 | 186 | (79) | (575) |
Other expense: | ||||
Interest expense, net | 669 | 679 | 1,344 | 1,359 |
Other expense, net | 251 | 192 | 245 | 742 |
Total other expense, net | 920 | 871 | 1,589 | 2,101 |
Net loss | (706) | (685) | (1,668) | (2,676) |
Patient Care Revenues | ||||
Revenues: | ||||
Total revenues | 2,525 | 2,526 | 4,834 | 4,442 |
Management Fees | ||||
Revenues: | ||||
Total revenues | 247 | 525 | ||
Other Revenues | ||||
Revenues: | ||||
Total revenues | 103 | 107 | ||
Real Estate Services | ||||
Revenues: | ||||
Total revenues | 1,800 | 2,072 | 3,617 | 4,062 |
Rental revenues | 1,800 | 1,722 | 3,617 | 3,430 |
Expenses: | ||||
Facility rent expense | 149 | 149 | 297 | 162 |
Depreciation and amortization | 384 | 579 | 770 | 965 |
General and administrative expense | 871 | 1,266 | 2,136 | 2,587 |
Total expenses | 1,404 | 1,994 | 3,203 | 3,714 |
Income (loss) from operations | 396 | 78 | 414 | 348 |
Other expense: | ||||
Interest expense, net | 566 | 570 | 1,137 | 1,141 |
Other expense, net | 86 | 192 | 64 | 524 |
Total other expense, net | 652 | 762 | 1,201 | 1,665 |
Net loss | (256) | (684) | (787) | (1,317) |
Real Estate Services | Management Fees | ||||
Revenues: | ||||
Total revenues | 247 | 525 | ||
Real Estate Services | Other Revenues | ||||
Revenues: | ||||
Total revenues | 103 | 107 | ||
Healthcare Services Segment | ||||
Revenues: | ||||
Total revenues | 2,525 | 2,526 | 4,834 | 4,442 |
Expenses: | ||||
Patient care expense | 2,183 | 1,969 | 4,283 | 4,290 |
Facility rent expense | 135 | |||
Cost of management fees | 146 | 286 | ||
Depreciation and amortization | 130 | 123 | 255 | 247 |
General and administrative expense | 358 | 156 | 724 | 367 |
Credit loss expense | 36 | 24 | 65 | 40 |
Total expenses | 2,707 | 2,418 | 5,327 | 5,365 |
Income (loss) from operations | (182) | 108 | (493) | (923) |
Other expense: | ||||
Interest expense, net | 103 | 109 | 207 | 218 |
Other expense, net | 165 | 181 | 218 | |
Total other expense, net | 268 | 109 | 388 | 436 |
Net loss | (450) | (1) | (881) | (1,359) |
Healthcare Services Segment | Patient Care Revenues | ||||
Revenues: | ||||
Total revenues | $ 2,525 | $ 2,526 | $ 4,834 | $ 4,442 |