Sonida Senior Living (SNDA) 8-K/A Financial Statements and Exhibits

Exhibit 99.2

SIGNATURE ASSISTED LIVING OF TEXAS, LLC

FINANCIAL STATEMENTS

For the Six Months Ended June 30, 2010 and 2009

with

Accountants’ Compilation Report

SIGNATURE ASSISTED LIVING OF TEXAS, LLC

TABLE OF CONTENTS

	Page
ACCOUNTANTS’ COMPILATION REPORT		1
FINANCIAL STATEMENTS:
Balance Sheets		2
Statements of Income		4
Statements of Changes in Members’ Equity		5
Statements of Cash Flow		6
Notes to Financial Statements		7

ACCOUNTANTS’ REPORT

To the Members
of Signature Assisted Living of Texas, LLC

     We have compiled the accompanying balance sheet of Signature Assisted Living of Texas, LLC (the “Company”) as of June 30, 2010, and the related statements of income, members’ equity, and cash flows for the six months then ended, in accordance with Statements on Standards for Accounting and Review Services issued by the American Institute of Certified Public Accountants.

     A compilation is limited to presenting in the form of financial statements information that is the representation of management. We have not audited or reviewed the accompanying financial statements for the six month period ended June 30, 2010 and, accordingly, do not express an opinion or any other form of assurance on them.

     The accompanying financial statements for the six month period ended June 30, 2009 of the Company, were previously reviewed by us and our report dated November 12, 2010, stated that we were not aware of any material modifications that should be made to those statements in order for them to be in conformity with generally accepted accounting principles. We have not performed any procedures in connection with that review engagement after the date of our report on the financial statements for the six month period ended June 30, 2010.

Dallas, Texas
November 12, 2010

12221 Merit Drive• Suite 1800• Dallas, Texas 75251
972.404-1010• Facsimile 972.404.1122• E-mail: hmpc@hmpc.com• www. hmpc.com

1

SIGNATURE ASSISTED LIVING OF TEXAS, LLC

BALANCE SHEETS
June 30, 2010 and 2009

ASSETS

	(Compiled)		(Reviewed)
	June 30, 2010		June 30, 2009
Cash and cash equivalents	$	775,774	$	386,833
Cash — restricted		680,794		599,772
Accounts receivable		134,245		38,338
Accounts receivable — related parties		5,866,863		2,762,052
Reimbursable construction costs		—		829,876
Inventory		—		4,391
Prepaid expenses		600,737		424,788
Total current assets		8,058,413		5,046,050
Property and equipment, net		272,802		337,769
Deposits		19,450		3,450
Total assets	$	8,350,665	$	5,387,269

See accompanying notes and accountants’ compilation report.

2

SIGNATURE ASSISTED LIVING OF TEXAS, LLC

BALANCE SHEETS
June 30, 2010 and 2009

LIABILITIES AND MEMBERS’ EQUITY

	(Compiled)			(Reviewed)
	June 30, 2010			June 30, 2009
Accounts payable	$	303,384		$	208,642
Accounts payable — related parties		1,362,380			1,924,763
Other payables		29,654			21,944
Accrued expenses		1,317,682			856,437
Deferred revenue		944,655			414,976
Capital lease obligations — current portion		142,160			106,256
Refundable deposits		36,893			61,090
Notes payable — related parties		182,088			182,088
Total current liabilities		4,318,896			3,776,196
Capital lease obligations — long term portion		131,737			178,540
Notes payable		1,479,842			—
Total liabilities		5,930,475			3,954,736
Members’ equity
Controlling interest Contributions		900			900
Accumulated earnings prior to non-controlling interest		2,298,735			1,306,493
Non-controlling interest in subsidiary
Contributions		100			100
Distributions		(279,084	)		(47,634	)
Accumulated earnings		399,539			172,674
Total members’ equity		2,420,190			1,432,533
Total liabilities and members’ equity	$	8,350,665		$	5,387,269

See accompanying notes and accountants’ compilation report.

3

SIGNATURE ASSISTED LIVING OF TEXAS, LLC

STATEMENTS OF INCOME
For the Six Months Ended June 30, 2010 and 2009

	(Compiled)			(Reviewed)
	June 30, 2010			June 30, 2009
Revenues
Rental revenue from residents	$	12,708,393		$	10,868,191
Other fees from residents		436,496			248,480
Other income		97,165			68,776
Total revenue		13,242,054			11,185,447
Expenses
Residence operating expenses
Advertising and marketing		59,921			32,230
Food services		621,108			537,206
General and administrative — residences		271,476			263,922
Housekeeping and maintenance		444,972			295,694
Insurance		119,194			95,308
Miscellaneous expenses		1,150			4,924
Payroll and related expenses		4,782,721			3,814,763
Property taxes		559,397			431,116
Other taxes		103,500			81,185
Resident activities and care		75,880			71,396
Utilities		674,824			557,179
Total residence operating expenses		7,714,143			6,184,923
Building lease payments		3,338,742			2,809,622
Start up cost		1,125,992			56,503
Management fees — related party		922,860			780,642
Depreciation and amortization expenses		66,970			59,353
Finance and interest expenses
Finance charges		29,892			17,038
Interest expense — related party notes		58,619			16,326
Notes payable interest		8,376			—
Total finance and interest expenses		96,887			33,364
Total expenses		13,265,594			9,924,407
(Loss) profit from operations		(23,540	)		1,261,040
Other income
Interest income		—			6,022
Miscellaneous income		21,412			—
(Loss) profit before non-controlling interest		(2,128	)		1,267,062
Less: net profit attributable to non-controlling interest		120,555			125,140
Net (loss) income	$	(122,683	)	$	1,141,922

See accompanying notes and accountants’ compilation report.

4

SIGNATURE ASSISTED LIVING OF TEXAS, LLC
STATEMENTS OF CHANGES IN MEMBERS’ EQUITY
For the Six Months Ended June 30, 2010 and 2009

				Non-
	Controlling			Controlling
	Interest			Interest			Total Interest
Balance at December 31, 2008	$	165,471		$	37,634		$	203,105
Capital distribution		—			(37,634	)		(37,634	)
Net profit		1,141,922			125,140			1,267,062
Balance at June 30, 2009 (Reviewed)	$	1,307,393		$	125,140		$	1,432,533
Balance at December 31, 2009	$	2,422,318		$	231,450		$	2,653,768
Capital distribution		—			(231,450	)		(231,450	)
Net (loss) profit		(122,683	)		120,555			(2,128	)
Balance at June 30, 2010 (Compiled)	$	2,299,635		$	120,555		$	2,420,190

See accompanying notes and accountants’ compilation report.

5

SIGNATURE ASSISTED LIVING OF TEXAS, LLC
STATEMENTS OF CASH FLOW
For the Six Months Ended June 30, 2010 and 2009

	(Compiled)			(Reviewed)
	June 30, 2010			June 30, 2009
Cash flows from operation activities
Net (loss) profit	$	(122,683	)	$	1,141,922
Net profit attributable to non-controlling interest		120,555			125,140
Adjustments to reconcile net (loss) profit to net cash (used) provided by operating activities
Depreciation and amortization		66,970			59,353
Changes in operating assets and liabilities (Increase) decrease in operating assets
Accounts receivable		41			(7,146	)
Accounts receivable — related parties		(2,758,733	)		2,541,768
Reimbursable construction costs		2,774,080			(486,362	)
Prepaid expenses		225,042			322,691
Deposits		(16,000	)		—
Increase (decrease) in operating liabilities
Accounts payable		(845,266	)		(117,623	)
Accounts payable — related parties		(398,517	)		(2,801,028	)
Other payables		983			(1,805	)
Accrued expenses		(181,985	)		(422,501	)
Deferred revenue		430,713			(174,774	)
Refundable deposits		(17,107	)		6,000
Net cash (used) provided by operating activities		(721,907	)		185,635
Cash flows from financing activities
Distribution to members		(231,450	)		(37,634	)
Proceeds from borrowings		1,479,842			—
Principal payments on capital leases		(64,296	)		(54,012	)
Net cash provided (used) by financing activities		1,184,096			(91,646	)
Net increase in cash		462,189			93,989
Cash at December 31, 2009 and 2008, respectively		994,379			892,616
Cash, end of year	$	1,456,568		$	986,605
Supplemental information:
Interest paid	$	54,874		$	16,326
State margin taxes paid	$	129,540		$	75,748

See accompanying notes and accountants’ compilation report.

6

SIGNATURE ASSISTED LIVING OF TEXAS, LLC
NOTES TO FINANCIAL STATEMENTS
June 30, 2010 and 2009

1.ORGANIZATION AND ACCOUNTING PRINCIPLES

     General information and operations

     Signature Assisted Living of Texas, LLC, (the “Company”) is majority owned by Signature Assisted Living, LLC (“SAL”). Opus Won, LLC (“Opus”), a Florida limited liability company, has a 10 percent interest in eight of the twelve communities owned by the Company. The communities in which Opus holds a minority interest are as follows: Spring Lake Assisted Living and Memory Care Community, Pecan Point Assisted Living and Memory Care Community, Hawkins Creek Assisted Living and Memory Care Community, Azalea Trails Assisted Living and Memory Care Community, Santa Fe Trails Assisted Living and Memory Care Community, Walnut Creek Assisted Living and Memory Care Community, Martin Crest Assisted Living and Memory Care Community, and Magnolia Assisted Living and Memory Care Community.

     Basis of accounting

     The financial statements are presented using accounting principles generally accepted in the United States of America.

     Cash and cash equivalents

     Cash or cash equivalents include all highly liquid debt instruments purchased with a maturity of three months or less.

     Accounts receivable

     Accounts receivable represents amounts due from tenants and other third parties originating during the normal course of business. Receivables which are 60 days past due are evaluated by management for collectability. Receivables determined to be uncollectible are written off using the direct write-off method. Currently, all amounts are considered fully collectible.

7

     Inventory

     Inventory is valued at the lower of cost or market.

     Property and equipment

     The Company capitalizes all expenditures for property and equipment that exceed $1,000 and have a useful life of more than one year. Depreciation is computed over the estimated useful lives of the assets using the straight line method. Useful lives range from 5-30 years.

     Deferred revenue

     Deferred revenue represents amounts prepaid as of June 30, 2010 and 2009 by tenants of the Company.

     Revenue

     Revenue is recognized when earned or as rent becomes due, typically at the first of each month.

     Use of estimates

     The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results may differ from those estimates.

     Fair value of financial instruments

     The Company’s financial instruments, none of which are held for trading purposes, include cash, accounts receivable, accounts payable and short and long-term debt. Management estimates that the fair value of all financial instruments at June 30, 2010 and 2009 does not differ materially from the aggregate carrying values of its financial instruments recorded in the accompanying financial statements.

8

     Income and Texas State Margin Taxes

     Under existing provisions of the Internal Revenue Code, the income or loss of a limited liability company filing its taxes as a partnership is recognized by the individual members for income tax purposes. Accordingly, no provision for income tax has been made in the accompanying financial statements.

     The Company is subject to the Texas State Margin Tax, and will file its state margin tax return as part of a consolidated group. The state margin tax is calculated based upon the consolidated groups’ taxable margin, reduced by eligible tax credits and then allocated to the consolidated entities based on an entity’s percentage of gross revenues to the gross revenues of the consolidated group.

     In addition, as of January 1, 2009, the Company has adopted FASB ASC 740,Accounting for Uncertainty in Income Taxes. The Company’s management has evaluated its tax positions and has not identified any material uncertain tax positions that would not be sustained in a federal or state income tax examination. Accordingly, no provision for uncertain tax positions has been made in the accompanying financial statements.

     Subsequent events

     In accordance with FASB ASC 855,Subsequent Events,management has reviewed subsequent events through November 12, 2010, the date the report was available to be issued.

2.CASH — RESTRICTED

     The Company has three certificates of deposits which are time restricted. The time restrictions expire on October 20, 2010, October 25, 2010 and January 7, 2011, respectively.

	June 30, 2010		June 30, 2009
Certificate of Deposit — A	$	557,557	$	599,772
Certificate of Deposit — B		48,237		—
Certificate of Deposit — C		75,000		—
	$	680,794	$	599,772

9

3.REIMBURSABLE CONSTRUCTION COSTS

     The Company developed and constructed several assisted living and memory care communities on behalf of Health Care REIT, LLC and HCRI Texas Properties, LLC (the “Landlords”). Upon completion of construction and after a certificate of occupancy is issued for a community, the Company leases the completed community under an operating lease agreement with the Landlords according to specifications as set forth in the Master Lease Agreement between the Landlords and the Company with revisions as set forth in the November 1, 2005 Amended and Restated Term Sheet for Master Lease (the “Agreement”). According to the Agreement, there is an option period in which the Company can opt to purchase the leased properties from the Landlords. The option purchase price, specified in the Agreement, is not a bargain purchase price as defined by FASB ASC 840, Leases,and therefore, the leases are presented as operating leases instead of capital leases.

     Twelve communities, in various Texas locations, have obtained certificates of occupancy and are operating as of June 30, 2010. The costs incurred in developing and constructing the assisted living communities, according to the Agreement, between the Landlords and the Company, were reimbursed by the Landlords to the Company. The investment amount covers all approved community construction costs including acquisition costs of land and improvements, development costs, renovation costs, costs of personal property not to exceed 10 percent of the allocated investment amount, closing costs, construction costs and fees, subject to review and approval by the Landlords.

     The total amount of construction costs that are reimbursable by the Landlords as of June 30, 2010 and 2009 are $0 and $829,876 respectively.

4.PROPERTY AND EQUIPMENT

     Detail of property and equipment at June 30, 2010 and 2009 is:

	June 30, 2010			June 30, 2009
Furniture and equipment	$	—		$	60,796
Assets under capital leases		669,705			562,725
Total property and equipment		669,705			623,521
Less: accumulated depreciation		(396,903	)		(285,752	)
Total property and equipment, net	$	272,802		$	337,769

10

     Depreciation expense totaled $66,970 and $59,353 for the six months ended June 30, 2010 and 2009, respectively.

5.CAPITAL LEASES

     At June 30, 2010 and 2009, net property and equipment on the balance sheets includes $669,705 for twelve 12-passenger Ford minibuses and $562,725 for ten 12-passenger Ford minibuses, respectively, that are used to transport residents of the communities. The lease agreement contains a bargain purchase option at the end of the lease term. Future minimum lease payments under capital leases are as follows:

Year ending June 30,	Principal		Interest		Total
2011	$	142,160	$	21,144	$	163,304
2012		79,992		8,160		88,152
2013		38,920		2,856		41,776
2014		12,825		418		13,243
Total minimum lease payments	$	273,897	$	32,578	$	306,475

6.NOTE PAYABLE

     The Company has two notes payable to Health Care REIT, LLC combined totaling $1,479,842 bearing interest at a variable rate equal to the greater of the “Rate Index” as defined in the note agreement plus 4.5 percent or 10 percent as applicable from time to time. The notes are paid off as of September 10, 2010.

7.CONCENTRATION OF CREDIT RISK

     The cash balances of the Company are held in financial institutions in the North Texas area. If cash balances exceed the amounts covered by insurance provided by the Federal Deposit Insurance Corporation (FDIC), the excess balances could be at risk of loss. The total cash at risk of loss at June 30, 2010 and 2009 approximates $1,130,210 and $678,499, respectively.

8.COMMITMENT AND CONTINGENCIES

     The guarantors for the communities under construction contract include the Company, each subtenant, manager, Signature Senior Living, LLC. (each an “Entity Guarantor”) and Steven Vick and Linda Martin and their respective spouses (each a “Personal Guarantor”). All

11

guarantees are joint and several. Guaranty of all Personal Guarantors is to be as follows: i.) 100 percent of the greater of the community cost or the maximum investment amount during construction (See Note 2), ii.) 15 percent of the allocated investment amount for such facility after a certificate of occupancy is issued, and iii.) 2.5 percent of the allocated investment amount upon the compliance of the Company for four consecutive quarters with the portfolio coverage ratio, as defined in the Agreement. There is a potential liability for up to the investment amount for each community should there be an unremedied breach of the Agreement until a certificate of occupancy is obtained. The following chart shows the level of liability to which each property is guaranteed as of June 30, 2010.

Community Name	15%		2.50%
Paris — Spring Lake				•
Sherman — Pecan Point				•
Longview — Hawkins Creek				•
Tyler — Azalea Trails				•
Cleburne — Santa Fe				•
Mansfield — Walnut Creek				•
Weatherford — Martin Crest		•
Nacogdoches — Magnolia				•
Palestine — Dogwood		•
Waxahachie — Buffalo Creek				•
McKinney — Stonefield		•
Conroe — Heritage		•

9.OPERATING LEASES

     The Company pays rent to the Health Care REIT, Inc. for each of its operating communities. Under the Agreement, the initial term of the lease is 15 years with two 5 year renewal options. The base rent is calculated using the 15-year USTN plus 4 percent with a floor of 9 percent subject to changes in the CPI and based on the number of communities added during the lease term. Rent expense under the Agreement for the 6 months ended June 30, 2009 and 2008 totals $3,338,742 and $2,844,742, respectively.

12

10.RELATED PARTY TRANSACTIONS

     The Company is part of affiliated group of companies which exist to administrate and manage the operations of assisted living facilities. Related party transactions with these affiliated companies are as follows:

• Receivables from related parties total $5,866,863 and $2,762,052 at June 30, 2010 and 2009, respectively.

• Accounts payable to related parties total $1,362,380 and $1,924,763 at June 30, 2010 and 2009, respectively.

• Notes payable to related parties total $182,088 at June 30, 2010 and 2009.

• Management fees paid to a related party total $922,860 and $780,642 for the six months ended June 30, 2010 and 2009, respectively.

• Interest expense paid to related parties totals $58,619 and $16,326 for the six months ended June 30, 2010 and 2009, respectively.

11.SUBSEQUENT EVENTS

     At September 10, 2010, the Company sold its leasing rights to 12 communities as described in note 3 owned by Health Care REIT, LLC to Capital Senior Living Acquisition, LLC.

13