Exhibit 99.1
GA8 TENANTS
COMBINED FINANCIAL STATEMENTS
DECEMBER 31, 2023 AND 2022
GA8 TENANTS
DECEMBER 31, 2023 AND 2022
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INDEPENDENT AUDITORS’ REPORT |
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COMBINED FINANCIAL STATEMENTS | | |
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| 3 | |
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| 5 | |
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Combined Statements of Operations and Changes in Members’ Equity (Deficit) | | 6 |
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| 7 | |
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| 8 | |
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| 16 | |
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| 21 |
2
To the Owners and Management
GA8 Tenants
Opinion
We have audited the accompanying combined financial statements of GA8 Tenants, which comprise the combined balance sheets as of December 31, 2023 and 2022, and the related combined statements of operations and changes in members’ equity (deficit) and cash flows for the years then ended, and the related notes to the combined financial statements.
In our opinion, the combined financial statements referred to above present fairly, in all material respects, the financial position of GA8 Tenants as of December 31, 2023 and 2022, and the results of their operations and their cash flows for the years then ended in accordance with accounting principles generally accepted in the United States of America.
Basis for Opinion
We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Our responsibilities under those standards are further described in the Auditors’ Responsibilities for the Audit of the Combined Financial Statements section of our report. We are required to be independent of GA8 Tenants and to meet our other ethical responsibilities in accordance with the relevant ethical requirements relating to our audits. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
Management’s Responsibility for the Combined Financial Statements
Management is responsible for the preparation and fair presentation of the combined financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation and maintenance of internal control relevant to the preparation and fair presentation of combined financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the combined financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about GA8 Tenants’ ability to continue as a going concern within one year after the date that the combined financial statements are available to be issued.
Auditors’ Responsibilities for the Audit of the Combined Financial Statements
Our objectives are to obtain reasonable assurance about whether the combined financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors’ report that includes our opinion. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with generally accepted auditing standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations or the override of internal control. Misstatements, including omissions, are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the combined financial statements.
In performing an audit in accordance with generally accepted auditing standards, we:
● | Exercise professional judgment and maintain professional skepticism throughout the audit. |
● | Identify and assess the risks of material misstatement of the combined financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the combined financial statements. |
● | Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of GA8 Tenants’ internal control. Accordingly, no such opinion is expressed. |
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● | Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the combined financial statements. |
● | Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about GA8 Tenants’ ability to continue as a going concern for a reasonable period of time. |
We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings and certain internal control related matters that we identified during the audit.
/s/ Warren Averett, LLC
Birmingham, Alabama
March 27, 2024
4
GA8 TENANTS
DECEMBER 31, 2023 AND 2022
| | | | | | |
| | 2023 | | 2022 | ||
ASSETS |
| | |
| | |
CURRENT ASSETS |
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|
| |
|
Cash | | $ | 1,286,151 | | $ | 4,047,322 |
Patient accounts receivable, net | |
| 10,978,617 | |
| 13,571,787 |
Prepaid expenses and other current assets | |
| 1,152,999 | |
| 929,060 |
Other receivables | |
| 2,843,585 | |
| 4,694,190 |
Total current assets | |
| 16,261,352 | |
| 23,242,359 |
NONCURRENT ASSETS | |
| | |
| |
Right-of-use asset, net | |
| 115,729,068 | |
| 124,631,303 |
Property and equipment, net | |
| 1,131,204 | |
| 511,080 |
Deposits | |
| 2,939,953 | |
| 3,462,085 |
Total noncurrent assets | |
| 119,800,225 | |
| 128,604,468 |
TOTAL ASSETS | | $ | 136,061,577 | | $ | 151,846,827 |
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LIABILITIES AND MEMBERS’ EQUITY (DEFICIT) |
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| | |
CURRENT LIABILITIES |
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|
| |
|
Accounts payable | | $ | 17,948,949 | | $ | 9,400,775 |
Accrued payroll and benefits | |
| 386,892 | |
| 438,591 |
Current lease liabilities | |
| 5,766,416 | |
| 6,273,189 |
Total current liabilities | |
| 24,102,257 | |
| 16,112,555 |
LONG-TERM LEASE LIABILITIES | |
| 117,649,203 | |
| 123,428,432 |
MEMBERS' EQUITY (DEFICIT) | |
| (5,689,883) | |
| 12,305,840 |
TOTAL LIABILITIES AND MEMBERS' EQUITY | | $ | 136,061,577 | | $ | 151,846,827 |
See notes to the combined financial statements.
5
GA8 TENANTS
COMBINED STATEMENTS OF OPERATIONS AND CHANGES IN MEMBERS’ EQUITY (DEFICIT)
FOR THE YEARS ENDED DECEMBER 31, 2023 AND 2022
| | | | | | |
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| 2023 |
| 2022 | ||
REVENUES |
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|
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Net patient service revenue | | $ | 74,324,449 |
| $ | 77,151,042 |
COVID-19 Relief Funds revenue | |
| — |
| | 1,446,482 |
Total revenues | |
| 74,324,449 |
| | 78,597,524 |
OPERATING EXPENSES | |
| |
| | |
Administrative and general services | |
| 11,394,563 |
| | 11,250,387 |
Management services | |
| 3,844,095 |
| | 4,219,897 |
Employee health and welfare | |
| 1,510,972 |
| | 2,224,942 |
Plant operations | |
| 2,980,829 |
| | 2,215,290 |
Dietary services | |
| 6,952,683 |
| | 5,276,659 |
Housekeeping and laundry | |
| 6,176,304 |
| | 2,200,473 |
Nursing services | |
| 30,165,143 |
| | 27,863,663 |
Social services | |
| 276,505 |
| | 290,972 |
Medical services | |
| 1,031,140 |
| | 874,615 |
Rehabilitative therapies | |
| 8,639,664 |
| | 8,507,704 |
Recreation | |
| 600,695 |
| | 531,077 |
Provision for bad debt | |
| 2,742,782 |
| | 2,153,854 |
Amortization of ROU assets | |
| 8,902,235 |
| | 8,902,235 |
Interest on lease liabilities | |
| 6,577,310 |
| | 6,843,573 |
Depreciation | |
| 238,412 |
| | 149,011 |
Property insurance | |
| 122,166 |
| | 118,813 |
Total operating expenses | |
| 92,155,498 |
| | 83,623,165 |
LOSS FROM OPERATIONS | |
| (17,831,049) |
| | (5,025,641) |
OTHER INCOME | |
| |
| | |
Other income | |
| 70,326 |
| | 246,145 |
Gain on forgiveness of debt | |
| — |
| | 3,812,300 |
Insurance proceeds from business interruption | |
| — |
| | 949,006 |
Total other income | |
| 70,326 |
| | 5,007,451 |
NET LOSS | |
| (17,760,723) |
| | (18,190) |
MEMBERS' EQUITY AT BEGINNING OF YEAR | |
| 12,305,840 |
| | 12,734,030 |
DISTRIBUTIONS | |
| (235,000) |
| | (410,000) |
MEMBERS' EQUITY (DEFICIT) AT END OF YEAR | | $ | (5,689,883) | | $ | 12,305,840 |
See notes to the combined financial statements.
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GA8 TENANTS
COMBINED STATEMENTS OF CASH FLOWS
FOR THE YEARS ENDED DECEMBER 31, 2023 AND 2022
| | | | | | |
|
| 2023 |
| 2022 | ||
CASH FLOWS FROM OPERATING ACTIVITIES | | | | | | |
Net loss | | $ | (17,760,723) | | $ | (18,190) |
Adjustments to reconcile net loss to net cash | |
| | |
| |
provided by operating activities: | |
| | |
| |
Depreciation | |
| 238,412 | |
| 149,011 |
Provision for bad debt expense | |
| 2,742,782 | |
| 2,153,854 |
Amortization of right-of-use asset | |
| 8,902,235 | |
| 8,902,235 |
Gain on forgiveness of debt | |
| — | |
| (3,812,300) |
Change in deposits | |
| 522,132 | |
| — |
Change in patient accounts receivable, net | |
| (149,612) | |
| (2,830,761) |
Change in estimated third-party payor settlements | |
| — | |
| 513,153 |
Change in prepaid expenses | |
| (223,939) | |
| (350,434) |
Change in other receivables | |
| 1,850,605 | |
| 1,063,589 |
Change in accounts payable | |
| 8,548,174 | |
| 2,163,392 |
Change in accrued expenses | |
| — | |
| (324,384) |
Change in accrued payroll and benefits | |
| (51,699) | |
| (226,606) |
| |
| 22,379,090 | |
| 7,400,749 |
Net cash provided by operating activities | |
| 4,618,367 | |
| 7,382,559 |
CASH FLOWS FROM INVESTING ACTIVITIES | | | | | | |
Purchases of property and equipment | |
| (858,536) | |
| (203,035) |
Net cash used in investing activities | |
| (858,536) | |
| (203,035) |
| |
| | | | |
| | | | | | |
CASH FLOWS FROM FINANCING ACTIVITIES | |
|
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|
|
Distributions | |
| (235,000) | |
| (410,000) |
Principal payment on lease liabilities | |
| (6,286,002) | |
| (3,881,429) |
Repayment of Medicare advance payment loan | |
| — | |
| (1,955,625) |
Net cash used in financing activities | |
| (6,521,002) | |
| (6,247,054) |
INCREASE (DECREASE) IN CASH | |
| (2,761,171) | |
| 932,470 |
CASH AT BEGINNING OF YEAR | |
| 4,047,322 | |
| 3,114,852 |
CASH AT END OF YEAR | | $ | 1,286,151 | | $ | 4,047,322 |
| | | | | | |
| | 2023 |
| 2022 | ||
SUPPLEMENTAL DISCLOSURE OF |
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|
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|
CASH FLOW INFORMATION |
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|
| |
|
Cash paid during the year for interest | | $ | 6,577,310 | | $ | 6,843,570 |
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SUPPLEMENTAL DISCLOSURES OF | |
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NONCASH OPERATING, INVESTING AND | |
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FINANCING ACTIVITIES | |
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Right-of-use asset and lease liability associated with implementation of ASC 842 | | $ | — | | $ | 133,533,538 |
Vehicle acquired through financing lease | | $ | — | | $ | 49,512 |
Deposits released for lease payment | | $ | 525,950 | | $ | — |
See notes to the combined financial statements.
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1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Nature of Business
GA8 Tenants (the Company) operates eight nursing facilities located in Georgia, which includes, GACalhoun SNF LLC, GAChatsworth SNF LLC, GAFairburn SNF LLC, GADecatur SNF LLC, GACartersville SNF LLC, GAJasper SNF LLC, GAStone Mountain SNF LLC, and Willowwood PAC LLC, collectively known as GA8 Tenants.
Principles of Combination
The accompanying combined financial statements include GACalhoun SNF LLC, GAChatsworth SNF LLC, GAFairburn SNF LLC, GADecatur SNF LLC, GACartersville SNF LLC, GAJasper SNF LLC, GAStone Mountain SNF LLC, and Willowwood PAC LLC. Upon combination, all material intercompany balances and transactions have been eliminated.
Use of Estimates
The preparation of the combined financial statements in conformity with generally accepted accounting principles (U.S. GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, and disclosure of contingent assets and liabilities, at the date of the combined financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.
Cash
The Company maintains its cash in bank deposit accounts which, at times, may exceed federally insured limits. The Company has not experienced any losses in such accounts.
Net Patient Service Revenue
Net patient service revenue is reported at the estimated net realizable amounts from residents, third-party payors and others for services rendered.
Revenue under third-party payor agreements is paid on a prospective basis and is subject to audit by the third-party payor. Provisions for estimated third-party payor settlements are provided in the period the related services are rendered. Differences between the estimated amounts accrued, and interim and final settlements, are reported in operations in the year final settlements are determined.
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The promise to provide quality care is accounted for as a single performance obligation. The Company has concluded that the contracts with patients and residents represent a bundle of distinct services that are substantially the same, with the same pattern of transfer to the customer. The Company uses the portfolio approach as a practical expedient to group patient contracts with similar characteristics, such that revenue for a given portfolio would not be materially different than if it were evaluated on a contract-by-contract basis. These analyses incorporated consideration of reimbursements at varying rates from Medicaid, Medicare, Private Pay and other commercial payments for services. In order to determine the transaction price, the Company estimates the amount of variable consideration at the beginning of the contract using the expected value method. Changes in the Company's expectation of the amount it will receive from the patient or third-party payors will be recorded in revenue unless there is a specific event that suggests the patient or third-party payor no longer has the ability and intent to pay the amount due and, therefore, the changes in its estimate of variable consideration represents an impairment, or bad debt. The Company satisfies its performance obligation by providing quality of care services to its patients and residents on a daily basis until termination of the contract.
The following tables summarize revenue from contracts with customers by payor source for the periods presented:
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|
| 2023 | |||||||||||||
| | | | | | | | Other | | | | | Total | ||
| | | | | | | | Third-Party | | | | | of All | ||
| | Medicare |
| Medicaid |
| Payors |
| Patients |
| Payors | |||||
Patient service revenue | | | | | | | | | | | | | | | |
(net of contractual allowances, discounts and implicit price concessions) | | $ | 17,993,383 | | $ | 32,417,496 | | $ | 13,552,471 | | $ | 10,361,099 | | $ | 74,324,449 |
| | | | | | | | | | | | | | | |
|
| 2022 | |||||||||||||
| | | | | | | | Other | | | | | Total | ||
| | | | | | | | Third-Party | | | | | of All | ||
| | Medicare |
| Medicaid |
| Payors |
| Patients |
| Payors | |||||
Patient service revenue |
| |
|
| |
|
| |
|
| |
|
| |
|
(net of contractual allowances, discounts and implicit price concessions) | | $ | 26,460,749 | | $ | 42,040,945 | | $ | 6,289,774 | | $ | 2,359,574 | | $ | 77,151,042 |
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Accounts Receivable
Accounts receivable is reported in the combined balance sheet at the outstanding balance net of an estimated allowance for doubtful accounts. Billing terms usually provide for payment within 30 days. An allowance for doubtful accounts is estimated based upon review of outstanding receivables, historical collection information and existing economic conditions. Bad debts are charged against the allowance when substantially all collection efforts cease. Recovery of bad debts previously charged off are recorded when received. The Company’s billing arrangements generally do not provide for interest on past due amounts. At December 31, 2023, 2022 and 2021, the allowance for doubtful accounts totaled $2,094,463, $1,450,735 and $1,115,435, respectively. Accounts receivables totaled $13,073,080, $15,022,522 and $14,010,314 at December 31, 2023, 2022 and 2021, respectively.
Concentration of Credit Risk
The Company grants credit without collateral to its patients, most of whom are local residents in relation to the nursing home in which they reside and are insured under third-party payor agreements. The mix of receivables from patients and third-party payors was as follows at December 31:
| | | | | |
|
| 2023 |
| 2022 |
|
Medicare |
| 24 | % | 42 | % |
Medicaid |
| 44 | % | 38 | % |
Other insurance |
| 18 | % | 9 | % |
Private pay |
| 14 | % | 11 | % |
|
| 100 | % | 100 | % |
Property and Equipment
Property and equipment acquisitions are recorded at cost less accumulated depreciation. The Company’s policy is to capitalize individual acquisitions of property and equipment greater than $5,000. Depreciation is provided over the estimated useful life of each class of depreciable assets and is computed using the straight-line method.
Income Taxes
As a limited liability company, income or loss generated by the Company is passed on to the members of the Company and taxed at their individual rates. Therefore, no provision or liability for income taxes has been included in the accompanying combined financial statements.
The Company assessed guidance relating to uncertainty in income taxes. This guidance requires entities to assess their uncertain tax positions for the likelihood that they would be overturned upon Internal Revenue Service examination or upon examination by state taxing authorities. The Company has determined that it does not have any positions at December 31, 2023 and 2022, that it would be unable to substantiate. The Company has filed its tax returns for all years through December 31, 2022.
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Leases
The Company leases certain nursing facilities. Management determines if an arrangement is a lease at inception. Financing leases are included in right-of-use (ROU) assets, current liabilities, and long-term lease liability on the combined balance sheets. The Company does not have any operating leases.
ROU assets represent the Company’s right to use an underlying asset for the lease term, and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Financing lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. The Company uses their incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. The financing lease ROU asset also includes any lease payments made and excludes lease incentives. Lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. Lease expense for lease payments is recognized on a straight-line basis over the lease term.
The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants.
The Company has elected to apply the short-term lease exemption to leases with an initial term of twelve months or less.
In evaluating contracts to determine if they qualify as a lease, the Company considers factors such as if the Company has obtained substantially all the rights to the underlying asset through exclusivity, if the Company can direct the use of the asset by making decisions about how and for what purpose the asset will be used, and if the lessor has substitution rights. This evaluation may require significant judgement.
Insurance
The Company maintains insurance programs including workers’ compensation, employees’ medical care, property, casualty, directors’ and officers’ liability, and automobile. The Company believes its insurance programs are adequate and, where there has been a direct transfer of risk to the insurance carrier, the Company does not recognize a liability in the combined financial statements. The Company maintains a claims-made insurance program for general and professional liability and provides an estimated reserve for incurred but not reported claims. In the opinion of management, insurance coverage and estimated reserves for incurred but not reported claims are adequate to cover significant losses, if any.
Reclassifications
Certain prior period amounts have been reclassified to conform to the current year presentation. These reclassifications had no effect on members, the change in members’ equity or cash flows as previously stated.
Subsequent Events
Management has evaluated subsequent events and their potential effects on these combined financial statements through March 27, 2024, which is the date the combined financial statements were available to be issued.
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Recent Accounting Pronouncements
In February 2016, the Financial Accounting Standards Board (FASB) issued guidance (Accounting Standards Codification [ASC] 842, Leases) to increase transparency and comparability among organizations by requiring the recognition of ROU assets and lease liabilities on the balance sheet. Most prominent among the changes in the standard is the recognition of ROU assets and lease liabilities by lessees for those leases classified as operating leases. Under the standard, disclosures are required to meet the objective of enabling users of financial statements to assess the amount, timing and uncertainty of cash flows arising from leases. The Company adopted the standard effective January 1, 2022, and recognized and measured leases existing at, or entered into after, January 1, 2022, with certain practical expedients available.
The Company elected the available practical expedients to account for its existing operating leases as operating leases, under the new guidance, without reassessing (1) whether the contracts contain leases under the new standard, (2) whether classification of capital leases or operating leases would be different in accordance with new guidance, or (3) whether the unamortized initial direct costs before transition adjustments would have met the definition of initial direct costs in the new guidance at lease commencement.
As a result of the adoption of the new lease accounting guidance, the Company recognized on January 1, 2022, a lease liability of $133,583,051, which represents the present value of the remaining financing lease payments, discounted using the incremental borrowing rate of 5.25% for leases, and a right-of-use asset of $133,533,538.
The standard had a material impact on the combined balance sheets but did not have an impact on the combined income statements, nor combined statements of cash flows. The most significant impact was the recognition of ROU assets and lease liabilities for operating leases.
2. PROPERTY AND EQUIPMENT
A summary of property and equipment as of December 31, is as follows:
| | | | | | |
|
| 2023 |
| 2022 | ||
Furniture and equipment | | $ | 438,598 | | $ | 210,490 |
Software and website | |
| 185,236 | |
| 4,745 |
Minor movable equipment | |
| 247,121 | |
| 191,777 |
Motor vehicles | |
| 51,127 | |
| 51,127 |
Major leasehold improvements | |
| 754,213 | |
| 359,620 |
| |
| 1,676,295 | |
| 817,759 |
Less accumulated depreciation | |
| 545,091 | |
| 306,679 |
| | $ | 1,131,204 | | $ | 511,080 |
Depreciation charged to operations was $238,412 and $149,011 in 2023 and 2022, respectively.
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3. FINANCING LEASES
The Company has financing leases for vehicles and nursing facilities. The Company’s leases have remaining lease terms through December 31, 2036, some of which may include options to extend the leases and some of which may include options to terminate the leases.
The following is a schedule of future minimum lease payments under all financing leases having initial or remaining noncancelable lease terms in excess of one year:
| | | | |
Financing lease expense |
| |
| |
Amortization of ROU assets | | $ | 8,902,235 | |
Interest on lease liabilities | |
| 6,577,310 | |
Total financing lease expense | | $ | 15,745,807 | |
| | | | |
Weighted average remaining lease term | |
| 12.93 | years |
| | | | |
Cash paid for financing lease liabilities | |
|
| |
Interest paid | | $ | 6,577,310 | |
Principal paid | |
| 5,298,190 | |
Total cash paid for financing lease liabilities | | $ | 11,875,500 | |
| | | |
Reported as of December 31, 2023: |
| |
|
Other current liabilities | | $ | 5,766,416 |
Other long-term liabilities | | $ | 117,649,203 |
| | | |
2024 | | $ | 12,080,334 |
2025 | |
| 12,234,437 |
2026 | |
| 12,417,954 |
2027 | |
| 12,604,223 |
2028 | |
| 12,793,286 |
Thereafter | |
| 109,501,980 |
| |
| 171,632,214 |
Less imputed interest | |
| (48,216,595) |
Total | | $ | 123,415,619 |
Associated with the leases, the Company was required to make $3,394,180 in deposits and prepayments related to operating leases. During 2023, $525,950 of the deposit was used to pay lease payments, reducing the deposits to $2,868,230. This amount is included in deposits in the accompanying December 31, 2023 and 2022, combined balance sheets.
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4. CONTINGENCIES AND COMMITMENTS
Pursuant to legislative directives and authorizations from Congress, the Centers for Medicare and Medicaid Services (CMS) has developed and instituted various Medicare audit programs under which CMS contracts with private companies to conduct audits on claims and medical records. In the ordinary course of business, the Company is subject to inquiries, investigations and audits by these private companies, or other federal and state agencies that oversee applicable healthcare program participation and payment regulations. Audits may include enhanced medical necessity reviews pursuant to the Medicare, Medicaid and SCHIP Extension Act of 2007 and audits under the CMS Recovery Audit Contractor (RAC) program. The Company makes significant efforts through training and education to ensure compliance with all programs.
5. LITIGATION
There are several lawsuits pending against the Company. The ultimate outcome of these claims is uncertain at this time; however, management believes that the liability resulting from the claims, if any, will not have a material adverse effect on the combined financial statements.
6. COVID-19 RELIEF FUNDS REVENUE
As part of the response to the coronavirus pandemic, the federal government passed legislation, referred to as the Coronavirus Aid, Relief, and Economic Security Act, in March 2020, and the America Rescue Plan Act in March of 2021, that included, among other things, financial assistance to offset some of the financial burden incurred by providers in responding to the pandemic. As a result of this legislation, the Company received $123,735 in 2022 from funds established under the CARES Act in the form of a grant that, as long as certain terms and conditions are met by the Company, is not required to be repaid. The Company met the terms and conditions as required by the grants and recognized $123,735 in 2022 of the relief funds to offset lost revenues and additional expenses incurred for the year ended December 31, 2022, due to the coronavirus pandemic. This amount is recorded as other operating income in the accompanying combined statements of income and changes in members’ equity (deficit).
In addition to the above, the Company also received various state grants to help mitigate the coronavirus pandemic. The funds were required to be used for necessary expenditures incurred due to COVID-19. The Company met the terms and conditions of use and recognized the amounts into income. The Company received $1,322,747 in 2022.
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7. RELATED PARTIES
The Company pays management fees to a related party that provides general and administrative services to the nursing home operators. Management fee expenses incurred for the years ended December 31, 2023 and 2022, totaled $3,844,095 and $4,219,897, respectively. Management fees are presented as an expense and included in management services in the accompanying combined financial statements. At December 31, 2023, the Company had $697,831 due from the related party ($521,602 due from the related party in 2022) included in other receivables in the accompanying combined financial statements. The Company also had $1,733,453 due to the related entity ($633,934 in 2022) included in accounts payable in the accompanying combined financial statements.
The Company also had other net advances outstanding from related parties totaling $800,835 and $501,649 as of December 31, 2023, and 2022.
8. PAYCHECK PROTECTION LOAN
During 2020, the nursing homes were granted loans (the Loan) from a financial institution in the aggregate amount of $3,812,300 pursuant to the Paycheck Protection Program (the PPP) under Division A, Title I of the CARES Act, which was enacted on March 27, 2020. Under the terms of the PPP, certain amounts of the Loan may be forgiven if they are used for qualifying expenses and if certain other requirements as described in the CARES Act are met. The Company used the entire loan amount for qualifying expenses. The Company applied for and received forgiveness from the lender and the Small Business Administration, and as such the amount has been recorded as other income in the accompanying 2022 combined financial statements.
9 EMPLOYEE RETENTION TAX CREDIT
In December 2020, the Consolidated Appropriations Act, 2021 (CAA) was signed into law which included additional COVID-19 related relief. The CAA substantially and retroactively expended the Employee Retention Tax Credit (ERTC) for eligible companies. Under the revised terms of the ERTC, companies are eligible to claim the payroll tax credit if the company was fully or partially suspended by a COVID-19 government order or if calendar 2021 gross receipts were less than 20% compared to the same quarter in 2019. For the period January 1, 2021, through September 30, 2021, the Company qualified for $6,876,330 in payroll tax credits in 2021. The uncollected balance has been recorded as a receivable (included in other receivables) on the accompanying combined balance sheets of $1,027,170 and $2,566,883 as of December 31, 2023 and 2022, respectively.
15
INDEPENDENT AUDITORS’ REPORT ON
SUPPLEMENTARY INFORMATION
To the Owners and Management
GA8 Tenants
We have audited the accompanying combined financial statements of GA8 Tenants as of and for the years ended December 31, 2023 and 2022, and our report thereon dated March 27, 2024, which expressed an unmodified opinion on those combined financial statements, appears on pages 1 and 2. Our audit was conducted for the purpose of forming an opinion on the combined financial statements as a whole. The combining balance sheets as of December 31, 2023 and 2022, and the related combining statements of operations and members’ equity (deficit) for the years then ended, are presented for purposes of additional analysis and are not a required part of the combined financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the combined financial statements. The information has been subjected to the auditing procedures applied in the audit of the combined financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the combined financial statements or to the combined financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the information is fairly stated in all material respects in relation to the combined financial statements as a whole.
/s/ Warren Averett, LLC
Birmingham, Alabama
March 27, 2024
17
GA8 TENANTS
DECEMBER 31, 2023
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
ASSETS | ||||||||||||||||||||||||||||||
|
|
| |
|
| |
|
| |
|
| |
|
| |
|
| |
|
| |
|
| |
|
| |
| |
|
| | GACalhoun | | GAChatsworth | | GAFairburn | | GADecatur | | GACartersville | | GAJasper | | GAStone Mountain | | Willowwood | | | | | |
| ||||||||
| | SNF LLC | | SNF LLC | | SNF LLC | | SNF LLC | | SNF LLC | | SNF LLC | | SNF LLC | | PAC LLC | | Eliminations | | TOTAL | ||||||||||
CURRENT ASSETS | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
|
| | |
Cash | | $ | 9,804 | | $ | 39,335 | | $ | 121,742 | | $ | 31,907 | | $ | 366,147 | | $ | (184,027) | | $ | 452,213 | | $ | 449,030 | | $ | — |
| $ | 1,286,151 |
Patient accounts receivable, net | |
| 371,561 | |
| 1,046,886 | |
| 989,350 | |
| 1,279,715 | |
| 943,510 | |
| 857,429 | |
| 3,810,278 | |
| 1,679,888 | |
| — |
|
| 10,978,617 |
Intercompany receivables | |
| 8,826,181 | |
| 1,587,271 | |
| 1,799,045 | |
| 3,604,550 | |
| 1,169,167 | |
| 118,453 | |
| 1,828,552 | |
| 1,130,036 | |
| (20,063,255) |
|
| — |
Prepaid expenses and | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| |
|
| |
other current assets | |
| 340,767 | |
| 108,424 | |
| (6,747) | |
| 138,565 | |
| 75,039 | |
| 100,059 | |
| 264,642 | |
| 132,250 | |
| |
|
| 1,152,999 |
Other receivables | |
| 1,746,476 | |
| 589,290 | |
| 66,389 | |
| 48,369 | |
| 26,247 | |
| 43,317 | |
| 17,665 | |
| 305,832 | |
| — |
|
| 2,843,585 |
Total current assets | | | 11,294,789 | | | 3,371,206 | | | 2,969,779 | | | 5,103,106 | | | 2,580,110 | | | 935,231 | | | 6,373,350 | | | 3,697,036 | | | (20,063,255) | | | 16,261,352 |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
NONCURRENT ASSETS | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| |
|
| |
Right-of-use asset, net | |
| 4,257,939 | |
| 30,762,567 | |
| 12,873,523 | |
| 8,024,476 | |
| 16,847,482 | |
| 9,471,089 | |
| 24,322,689 | |
| 9,169,303 | |
| — |
|
| 115,729,068 |
Property and equipment, net | |
| 151,618 | |
| 60,978 | |
| 131,441 | |
| 140,258 | |
| 115,573 | |
| 54,168 | |
| 310,667 | |
| 166,501 | |
| — |
|
| 1,131,204 |
Deposits | |
| 156,350 | |
| 726,473 | |
| 331,414 | |
| 224,816 | |
| 415,336 | |
| 240,699 | |
| 601,837 | |
| 243,028 | |
| — |
|
| 2,939,953 |
Total noncurrent assets | |
| 4,565,907 | |
| 31,550,018 | |
| 13,336,378 | |
| 8,389,550 | |
| 17,378,391 | |
| 9,765,956 | |
| 25,235,193 | |
| 9,578,832 | |
| — |
|
| 119,800,225 |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
TOTAL ASSETS | | $ | 15,860,696 | | $ | 34,921,224 | | $ | 16,306,157 | | $ | 13,492,656 | | $ | 19,958,501 | | $ | 10,701,187 | | $ | 31,608,543 | | $ | 13,275,868 | | $ | (20,063,255) |
| $ | 136,061,577 |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
LIABILITIES AND MEMBERS’ EQUITY (DEFICIT) | |
|
| |
|
| |
|
| |
|
| |
|
| |
|
| |
|
| |
|
| |
|
|
|
| |
CURRENT LIABILITIES | |
|
| |
|
| |
|
| |
|
| |
|
| |
|
| |
|
| |
|
| |
|
|
|
| |
Accounts payable | | $ | 2,280,152 | | $ | 2,226,751 | | $ | 2,676,917 | | $ | 1,957,015 | | $ | 1,423,781 | | $ | 1,505,730 | | $ | 3,215,562 | | $ | 2,663,204 | | $ | — |
| $ | 17,949,112 |
Accrued payroll and benefits | |
| 51,355 | |
| 74,877 | |
| 39,322 | |
| 37,938 | |
| 72,449 | |
| 23,626 | |
| 46,198 | |
| 40,964 | |
| — |
|
| 386,729 |
Current lease liabilities | |
| 212,160 | |
| 1,532,802 | |
| 641,447 | |
| 399,834 | |
| 839,457 | |
| 471,915 | |
| 1,211,923 | |
| 456,878 | |
| — |
|
| 5,766,416 |
Intercompany payables | |
| 9,443,291 | |
| 1,903,949 | |
| 1,364,645 | |
| 1,208,408 | |
| 2,529,406 | |
| 857,760 | |
| 2,589,964 | |
| 165,832 | |
| (20,063,255) |
|
| — |
Total current liabilities | |
| 11,986,958 | |
| 5,738,379 | |
| 4,722,331 | |
| 3,603,195 | |
| 4,865,093 | |
| 2,859,031 | |
| 7,063,647 | |
| 3,326,878 | |
| (20,063,255) |
|
| 24,102,257 |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
LONG-TERM LEASE LIABILITIES | |
| 4,365,781 | |
| 31,263,212 | |
| 13,083,034 | |
| 8,155,071 | |
| 17,119,823 | |
| 9,625,225 | |
| 24,718,529 | |
| 9,318,528 | |
| — |
|
| 117,649,203 |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
MEMBERS' EQUITY (DEFICIT) | |
| (492,043) | |
| (2,080,367) | |
| (1,499,208) | |
| 1,734,390 | |
| (2,026,415) | |
| (1,783,069) | |
| (173,633) | |
| 630,462 | |
| — |
|
| (5,689,883) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
TOTAL LIABILITIES AND MEMBERS’ EQUITY | | $ | 15,860,696 | | $ | 34,921,224 | | $ | 16,306,157 | | $ | 13,492,656 | | $ | 19,958,501 | | $ | 10,701,187 | | $ | 31,608,543 | | $ | 13,275,868 | | $ | (20,063,255) |
| $ | 136,061,577 |
See independent auditors’ report on supplementary information.
18
GA8 TENANTS
COMBINING STATEMENT OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 2023
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
| GACalhoun |
| GAChatsworth |
| GAFairburn |
| GADecatur |
| GACartersville |
| GAJasper |
| GAStone Mountain |
| Willowwood |
|
|
| ||||||||
| | SNF LLC | | SNF LLC | | SNF LLC | | SNF LLC | | SNF LLC | | SNF LLC | | SNF LLC | | PAC LLC | | TOTAL | |||||||||
REVENUES |
| |
|
| |
|
| |
|
| |
|
| |
|
| |
|
| |
|
| |
|
|
| |
Net patient service revenue | | $ | 8,139,471 | | $ | 10,247,929 | | $ | 8,806,244 | | $ | 9,098,697 | | $ | 8,376,043 | | $ | 5,902,376 | | $ | 14,677,164 | | $ | 9,076,525 |
| $ | 74,324,449 |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
OPERATING EXPENSES | |
|
| |
|
| |
|
| |
|
| |
|
| |
|
| |
|
| |
|
|
|
| |
Administrative and general services | |
| 1,246,376 | |
| 1,379,773 | |
| 1,829,711 | |
| 1,457,925 | |
| 1,114,529 | |
| 994,843 | |
| 2,073,355 | |
| 1,298,051 |
|
| 11,394,563 |
Management services | |
| 469,255 | |
| 512,738 | |
| 453,395 | |
| 455,180 | |
| 448,823 | |
| 295,207 | |
| 757,016 | |
| 452,481 |
|
| 3,844,095 |
Employee health and welfare | |
| 179,675 | |
| 251,617 | |
| 125,820 | |
| 123,766 | |
| 183,091 | |
| 61,964 | |
| 457,517 | |
| 127,522 |
|
| 1,510,972 |
Plant operations | |
| 227,063 | |
| 325,427 | |
| 882,218 | |
| 300,322 | |
| 264,801 | |
| 187,773 | |
| 503,006 | |
| 290,219 |
|
| 2,980,829 |
Dietary services | |
| 849,564 | |
| 1,019,808 | |
| 891,826 | |
| 845,369 | |
| 641,770 | |
| 549,300 | |
| 1,265,154 | |
| 889,892 |
|
| 6,952,683 |
Housekeeping and laundry | |
| 998,445 | |
| 1,005,406 | |
| 408,275 | |
| 772,389 | |
| 535,580 | |
| 489,299 | |
| 1,159,770 | |
| 807,140 |
|
| 6,176,304 |
Nursing services | |
| 4,246,581 | |
| 3,969,324 | |
| 3,691,849 | |
| 3,744,013 | |
| 2,904,820 | |
| 2,695,366 | |
| 5,162,407 | |
| 3,750,783 |
|
| 30,165,143 |
Social services | |
| 33,813 | |
| 49,127 | |
| 40,007 | |
| — | |
| 24 | |
| 42,321 | |
| 75,576 | |
| 35,637 |
|
| 276,505 |
Medical services | |
| 140,804 | |
| 171,489 | |
| 81,278 | |
| 120,502 | |
| 91,116 | |
| 92,644 | |
| 193,681 | |
| 139,626 |
|
| 1,031,140 |
Rehabilitative therapies | |
| 773,490 | |
| 1,079,040 | |
| 1,191,246 | |
| 981,953 | |
| 1,071,662 | |
| 850,213 | |
| 1,476,857 | |
| 1,215,203 |
|
| 8,639,664 |
Recreation | |
| 39,034 | |
| 99,761 | |
| 91,955 | |
| 74,353 | |
| 120,436 | |
| 34,193 | |
| 96,925 | |
| 44,038 |
|
| 600,695 |
Provision for bad debt | |
| 200,334 | |
| 306,927 | |
| 199,356 | |
| 719,095 | |
| 189,247 | |
| 115,432 | |
| 676,193 | |
| 336,198 |
|
| 2,742,782 |
Amortization of ROU assets | |
| 327,534 | |
| 2,366,351 | |
| 990,271 | |
| 617,267 | |
| 1,295,960 | |
| 728,545 | |
| 1,870,976 | |
| 705,331 |
|
| 8,902,235 |
Interest on lease liabilities | |
| 241,994 | |
| 1,748,350 | |
| 731,650 | |
| 456,061 | |
| 957,505 | |
| 538,277 | |
| 1,382,348 | |
| 521,125 |
|
| 6,577,310 |
Depreciation | |
| 41,562 | |
| 10,754 | |
| 24,584 | |
| 37,072 | |
| 20,183 | |
| 9,630 | |
| 66,234 | |
| 28,393 |
|
| 238,412 |
Property insurance | |
| 15,172 | |
| 18,213 | |
| 18,213 | |
| 15,635 | |
| 11,228 | |
| 9,101 | |
| 22,620 | |
| 11,984 |
|
| 122,166 |
TOTAL OPERATING EXPENSES | |
| 10,030,696 | |
| 14,314,105 | |
| 11,651,654 | |
| 10,720,902 | |
| 9,850,775 | |
| 7,694,108 | |
| 17,239,635 | |
| 10,653,623 |
|
| 92,155,498 |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
LOSS FROM OPERATIONS | |
| (1,891,225) | |
| (4,066,176) | |
| (2,845,410) | |
| (1,622,205) | |
| (1,474,732) | |
| (1,791,732) | |
| (2,562,471) | |
| (1,577,098) |
|
| (17,831,049) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
OTHER INCOME | |
| 3,332 | |
| 3,951 | |
| 2,794 | |
| 3,014 | |
| 21,171 | |
| 4,547 | |
| 24,484 | |
| 7,033 |
|
| 70,326 |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
NET LOSS | | $ | (1,887,893) | | $ | (4,062,225) | | $ | (2,842,616) | | $ | (1,619,191) | | $ | (1,453,561) | | $ | (1,787,185) | | $ | (2,537,987) | | $ | (1,570,065) |
| $ | (17,760,723) |
See independent auditors’ report on supplementary information
19
GA8 TENANTS
DECEMBER 31, 2022
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
ASSETS | ||||||||||||||||||||||||||||||
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
| | GACalhoun | | GAChatsworth | | GAFairburn | | GADecatur | | GACartersville | | GAJasper | | GAStone Mountain | | Willowwood | | | | | |
| ||||||||
|
| SNF LLC |
| SNF LLC |
| SNF LLC |
| SNF LLC |
| SNF LLC |
| SNF LLC |
| SNF LLC |
| PAC LLC |
| Eliminations |
| TOTAL | ||||||||||
CURRENT ASSETS |
| |
|
| |
|
| |
|
| |
|
| |
|
| |
|
| |
|
| |
|
| |
|
|
| |
Cash | | $ | 294,538 | | $ | 772,355 | | $ | 43,881 | | $ | 1,248,746 | | $ | 154,809 | | $ | 123,365 | | $ | 116,188 | | $ | 1,293,440 | | $ | — |
| $ | 4,047,322 |
Patient accounts receivable, net | |
| 1,167,173 | |
| 998,491 | |
| 1,000,906 | |
| 2,092,376 | |
| 1,436,376 | |
| 736,318 | |
| 4,641,300 | |
| 1,498,847 | |
| — |
|
| 13,571,787 |
Intercompany receivables | |
| 1,410,434 | |
| 728,794 | |
| 1,387,432 | |
| 1,504,148 | |
| 311,284 | |
| 15,997 | |
| (326,819) | |
| 712,397 | |
| (5,743,667) |
|
| — |
Prepaid expenses and | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| |
|
| |
other current assets | |
| 203,579 | |
| 68,018 | |
| 73,977 | |
| 132,981 | |
| 60,555 | |
| 76,785 | |
| 216,444 | |
| 96,721 | |
| — |
|
| 929,060 |
Other receivables | | | 2,220,469 | | | 626,111 | | | 338,574 | | | 28,779 | | | 609,759 | | | 38,167 | | | 511,810 | | | 320,521 | | | — | | | 4,694,190 |
Total current assets | |
| 5,296,193 | |
| 3,193,769 | |
| 2,844,770 | |
| 5,007,030 | |
| 2,572,783 | |
| 990,632 | |
| 5,158,923 | |
| 3,921,926 | |
| (5,743,667) |
|
| 23,242,359 |
| |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| |
|
| |
NONCURRENT ASSETS | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Right-of-use asset, net | |
| 4,585,473 | |
| 33,128,918 | |
| 13,863,794 | |
| 8,641,743 | |
| 18,143,442 | |
| 10,199,634 | |
| 26,193,665 | |
| 9,874,634 | |
| — |
|
| 124,631,303 |
Property and equipment, net | |
| 139,843 | |
| 25,006 | |
| 44,789 | |
| 94,726 | |
| 38,787 | |
| 20,448 | |
| 84,272 | |
| 63,209 | |
| — |
|
| 511,080 |
Deposits | |
| 175,703 | |
| 851,521 | |
| 387,871 | |
| 263,623 | |
| 490,229 | |
| 285,919 | |
| 723,311 | |
| 283,908 | |
| — |
|
| 3,462,085 |
Total noncurrent assets | |
| 4,901,019 | |
| 34,005,445 | |
| 14,296,454 | |
| 9,000,092 | |
| 18,672,458 | |
| 10,506,001 | |
| 27,001,248 | |
| 10,221,751 | |
| — |
|
| 128,604,468 |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
TOTAL ASSETS | | $ | 10,197,212 | | $ | 37,199,214 | | $ | 17,141,224 | | $ | 14,007,122 | | $ | 21,245,241 | | $ | 11,496,633 | | $ | 32,160,171 | | $ | 14,143,677 | | $ | (5,743,667) |
| $ | 151,846,827 |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
LIABILITIES AND MEMBERS’ EQUITY (DEFICIT) | |
|
| |
|
| |
|
| |
|
| |
|
| |
|
| |
|
| |
|
| |
|
|
|
| |
CURRENT LIABILITIES | |
|
| |
|
| |
|
| |
|
| |
|
| |
|
| |
|
| |
|
| |
|
|
|
| |
Accounts payable | | $ | 1,004,217 | | $ | 670,168 | | $ | 1,302,182 | | $ | 1,211,459 | | $ | 997,282 | | $ | 700,935 | | $ | 1,809,788 | | $ | 1,704,746 | | $ | — |
| $ | 9,400,775 |
Accrued payroll and benefits | |
| 36,747 | |
| 83,660 | |
| 50,618 | |
| 50,920 | |
| 61,001 | |
| 35,431 | |
| 67,726 | |
| 52,488 | |
| — |
|
| 438,591 |
Current lease liabilities | |
| 230,806 | |
| 1,667,510 | |
| 669,155 | |
| 434,973 | |
| 879,752 | |
| 638,511 | |
| 1,255,454 | |
| 497,030 | |
| — |
|
| 6,273,189 |
Intercompany payables | |
| 2,918,685 | |
| — | |
| 47,384 | |
| 311,284 | |
| 1,880,437 | |
| — | |
| 712,397 | |
| (126,520) | |
| (5,743,667) |
|
| — |
Total current liabilities | |
| 4,190,454 | |
| 2,421,338 | |
| 2,069,338 | |
| 2,008,636 | |
| 3,818,471 | |
| 1,374,877 | |
| 3,845,364 | |
| 2,127,744 | |
| (5,743,667) |
|
| 16,112,555 |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
LONG-TERM LEASE LIABILITIES | |
| 4,588,908 | |
| 32,796,015 | |
| 13,724,481 | |
| 8,554,905 | |
| 17,961,124 | |
| 10,097,140 | |
| 25,930,453 | |
| 9,775,406 | |
| — |
|
| 123,428,432 |
| | | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| |
|
| |
MEMBERS’ EQUITY (DEFICIT) | |
| 1,417,850 | | | 1,981,861 | | | 1,347,405 | | | 3,443,581 | | | (534,354) | | | 24,616 | | | 2,384,354 | | | 2,240,527 | | | — | | | 12,305,840 |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
TOTAL LIABILITIES AND MEMBERS’ EQUITY | | $ | 10,197,212 | | $ | 37,199,214 | | $ | 17,141,224 | | $ | 14,007,122 | | $ | 21,245,241 | | $ | 11,496,633 | | $ | 32,160,171 | | $ | 14,143,677 | | $ | (5,743,667) |
| $ | 151,846,827 |
See independent auditors’ report on supplementary information.
20
GA8 TENANTS
COMBINING STATEMENT OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 2022
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
| GACalhoun |
| GAChatsworth |
| GAFairburn |
| GADecatur |
| GACartersville |
| GAJasper |
| GAStone Mountain |
| Willowwood |
|
|
| ||||||||
| | SNF LLC | | SNF LLC | | SNF LLC | | SNF LLC | | SNF LLC | | SNF LLC | | SNF LLC | | PAC LLC | | TOTAL | |||||||||
REVENUES |
| |
|
| |
|
| |
|
| |
|
| |
|
| |
|
| |
|
| |
|
|
| |
Net patient service revenue | | $ | 7,025,557 | | $ | 11,096,658 | | $ | 9,223,563 | | $ | 9,896,772 | | $ | 8,918,861 | | $ | 6,644,205 | | $ | 14,923,171 | | $ | 9,422,255 |
| $ | 77,151,042 |
COVID-19 Relief Funds revenue | |
| 164,962 | |
| 288,697 | |
| 164,962 | |
| 164,962 | |
| 164,963 | |
| 164,962 | |
| 164,962 | |
| 168,012 |
|
| 1,446,482 |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| |
| 7,190,519 | |
| 11,385,355 | |
| 9,388,525 | |
| 10,061,734 | |
| 9,083,824 | |
| 6,809,167 | |
| 15,088,133 | |
| 9,590,267 |
|
| 78,597,524 |
OPERATING EXPENSES | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| |
|
| |
Administrative and general services | |
| 1,149,119 | |
| 1,437,006 | |
| 1,573,565 | |
| 1,698,887 | |
| 1,104,270 | |
| 941,228 | |
| 2,103,834 | |
| 1,242,478 |
|
| 11,250,387 |
Management services | |
| 406,406 | |
| 601,133 | |
| 495,511 | |
| 549,235 | |
| 488,129 | |
| 376,645 | |
| 817,640 | |
| 485,198 |
|
| 4,219,897 |
Employee health and welfare | |
| 264,756 | |
| 310,662 | |
| 243,169 | |
| 224,838 | |
| 237,611 | |
| 182,322 | |
| 544,824 | |
| 216,760 |
|
| 2,224,942 |
Plant operations | |
| 251,268 | |
| 263,070 | |
| 241,426 | |
| 271,836 | |
| 261,491 | |
| 132,208 | |
| 482,984 | |
| 311,007 |
|
| 2,215,290 |
Dietary services | |
| 569,408 | |
| 778,628 | |
| 666,974 | |
| 670,589 | |
| 563,648 | |
| 448,237 | |
| 984,931 | |
| 594,244 |
|
| 5,276,659 |
Housekeeping and laundry | |
| 202,700 | |
| 344,527 | |
| 225,924 | |
| 298,427 | |
| 269,093 | |
| 231,532 | |
| 377,316 | |
| 250,954 |
|
| 2,200,473 |
Nursing services | |
| 2,592,783 | |
| 3,452,398 | |
| 3,892,260 | |
| 3,611,919 | |
| 2,690,121 | |
| 2,877,724 | |
| 5,203,621 | |
| 3,542,837 |
|
| 27,863,663 |
Social services | |
| 44,949 | |
| 49,156 | |
| 32,544 | |
| — | |
| — | |
| 33,713 | |
| 90,300 | |
| 40,310 |
|
| 290,972 |
Medical services | |
| 86,136 | |
| 155,982 | |
| 31,694 | |
| 117,942 | |
| 83,666 | |
| 90,502 | |
| 170,425 | |
| 138,268 |
|
| 874,615 |
Rehabilitative therapies | |
| 783,321 | |
| 977,446 | |
| 1,291,734 | |
| 987,476 | |
| 981,728 | |
| 793,954 | |
| 1,598,068 | |
| 1,093,977 |
|
| 8,507,704 |
Recreation | |
| 26,712 | |
| 84,855 | |
| 81,233 | |
| 82,644 | |
| 117,307 | |
| 36,641 | |
| 60,487 | |
| 41,198 |
|
| 531,077 |
Provision for bad debt | |
| 237,924 | |
| 306,664 | |
| 215,574 | |
| 297,688 | |
| 172,231 | |
| 136,452 | |
| 531,012 | |
| 256,309 |
|
| 2,153,854 |
Amortization of ROU assets | |
| 327,534 | |
| 2,366,351 | |
| 990,271 | |
| 617,267 | |
| 1,295,960 | |
| 728,545 | |
| 1,870,976 | |
| 705,331 |
|
| 8,902,235 |
Interest on lease liabilities | |
| 251,791 | |
| 1,819,126 | |
| 761,271 | |
| 474,523 | |
| 996,266 | |
| 560,067 | |
| 1,438,308 | |
| 542,221 |
|
| 6,843,573 |
Depreciation | |
| 28,434 | |
| 10,261 | |
| 9,576 | |
| 31,190 | |
| 11,152 | |
| 7,062 | |
| 33,138 | |
| 18,198 |
|
| 149,011 |
Property insurance | | | 12,089 | | | 15,589 | | | 13,633 | | | 10,403 | | | 13,734 | | | 10,534 | | | 20,665 | | | 22,166 | | | 118,813 |
TOTAL OPERATING EXPENSES | | | 7,235,330 | | | 12,972,854 | | | 10,766,359 | | | 9,944,864 | | | 9,286,407 | | | 7,587,366 | | | 16,328,529 | | | 9,501,456 |
| | 83,623,165 |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
INCOME (LOSS) FROM OPERATIONS | | | (44,811) | | | (1,587,499) | | | (1,377,834) | | | 116,870 | | | (202,583) | | | (778,199) | | | (1,240,396) | | | 88,811 | | | (5,025,641) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
OTHER INCOME | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Other Income | | | 70,534 | | | 14,125 | | | 15,577 | | | 38,523 | | | 26,658 | | | 69,218 | | | 4,176 | | | 7,334 | | | 246,145 |
Gain on forgiveness of debt | | | 407,600 | | | 519,500 | | | 407,600 | | | 502,700 | | | 377,800 | | | 278,800 | | | 721,400 | | | 596,900 | | | 3,812,300 |
Insurance proceeds from business interruption | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | 949,006 | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | 949,006 |
TOTAL OTHER INCOME | | | 1,427,140 | | | 533,625 | | | 423,177 | | | 541,223 | | | 404,458 | | | 348,018 | | | 725,576 | | | 604,234 | | | 5,007,451 |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
NET INCOME (LOSS) | | $ | 1,382,329 | | $ | (1,053,874) | | $ | (954,657) | | $ | 658,093 | | $ | 201,875 | | $ | (430,181) | | $ | (514,820) | | $ | 693,045 | | $ | (18,190) |
See independent auditors’ report on supplementary information.
21