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ASSETS HELD FOR SALE
3 Months Ended
Mar. 31, 2026
Assets Held For Sale  
ASSETS HELD FOR SALE

7. ASSETS HELD FOR SALE 

 

May 2026 Sale of Assets

 

On March 5, 2026, the Company entered into a letter of intent to sell certain wholly-owned subsidiaries Global Abbeville Property, LLC and Dodge NH, LLC, each a Georgia limited liability company (each a “Seller”) to execute and deliver a definitive Purchase and Sale Agreement (“March 2026 PSA”) with two newly formed entities: Abbeville Crossing Propco of Journey LLC and Eastman Trails Propco of Journey LLC, each a Georgia limited liability company (each a “Purchaser”); pursuant to which each Seller agreed to sell substantially all of the real and personal property owned by each, namely the skilled nursing facilities for $15.7 million. The sale occurred in May 2026, refer to Note 12 Subsequent Events.

 

During the three months ended March 31, 2026, the Company reclassified $5.5 million of long lived assets and goodwill and $5.2 million of debt attributed to the March 2026 PSA related to the sale of the Company’s two additional Georgia facilities. The Company measured the assets held for sale at the lower of their carrying value or fair value less the estimated costs to sell.

 

On May 1, 2026 the Company sold the two Georgia facilities for gross proceeds of $15.7 million and recognized a gain on sale of assets of $10.2 million.

 

The following table sets forth the assets held for sale at March 31, 2026 relating to the pending sale of the two Georgia facilities:

 

   March 31, 2026 
Property and equipment, net  $4,812,381 

Goodwill

 

$

697,429 
Debt attributed to assets held for sale  $(5,184,308)

 

The following table sets forth the assets held for sale at December 31, 2025 relating to the sale of the two Georgia facilities which closed in January 2026, see Note 8:

 

   December 31, 2025 
Property and equipment, net  $4,021,156 
Debt attributed to assets held for sale  $(5,554,463)
Accounts payable attributed to assets held for sale  $(577,055)