v3.26.1
DEBT AND DEBT - RELATED PARTIES (Tables)
 3 Months Ended
Mar. 31, 2026
Debt Disclosure [Abstract]  
SCHEDULE OF DEBT OUTSTANDING

The following is a summary of the Company’s debt outstanding as of March 31, 2026 and December 31, 2025:

  

   March 31, 2026   December 31, 2025 
         
Senior Secured Promissory Notes  $484,094   $1,591,238 
Senior Secured Promissory Notes - Related Parties   -    775,000 
Fixed-Rate Mortgage Loans   17,698,311    24,258,870 
Variable-Rate Mortgage Loans   4,408,468    4,485,462 
Line of Credit   -    325,192 
Total   22,590,873    31,435,762 
Unamortized Discount and Debt Issuance Costs   (202,368)   (435,200)
           
Total debt, net of discount  $22,388,505   $31,000,562 
As presented in the Consolidated Balance Sheets:          
           
Current Maturities of Long-Term Debt, Net  $3,876,312   $10,938,102 
Current Maturities of Long-Term Debt, Net classified within liabilities held for sale (1)   5,184,308    5,554,463 
Short Term Debt – Related Parties, Net   -    775,000 
Line of Credit - Current   -    325,192 
Long-Term Debt   13,327,885    13,407,805 
  

$

22,388,505  

$

31,000,562 
SCHEDULE OF MORTGAGE LOAN DEBT

   Number of   Total Face   Total Principal
Outstanding as of		 
State  Properties   Amount   March 31, 2026   December 31, 2025 
Arkansas(1)   1   $5,000,000   $3,501,475   $3,571,114 
Georgia(2)   2   $6,689,214   $5,184,308   $10,924,875 
Ohio(3)   1   $3,000,000   $2,423,026   $2,439,636 
Oklahoma(4)   6   $13,181,325   $10,997,970   $11,808,708 
    10   $27,870,539   $22,106,779   $28,744,333 

 

(1) The mortgage loan collateralized by this property is 80% guaranteed by the USDA and requires an annual renewal fee payable in the amount of 0.25% of the USDA guaranteed portion of the outstanding principal balance as of December 31 of each year. Guarantors under the mortgage loan include Christopher Brogdon. Mr. Brogdon has assumed operations of the facility and is making payments of principal and interest on the loan on our behalf in lieu of paying rent on the facility to us, until a formal lease can be put in place. During the periods ended March 31, 2026 and 2025, the Company recognized other income of $53,146 and $55,144, respectively for repayments on the loan.
   
(2) The Company had refinanced two of its mortgages that would have matured in June and October of 2021 amounting to $2,961,167 and $3,289,595, and extended their maturity dates to May 2024 for both. The Company entered into forbearance agreements that extended the maturity dates of the loans to December 31, 2025. Upon reaching maturity, both loans were in default and were therefore classified as current portion of long-term debt. Both loans were fully guaranteed by the Company. The loans were subsequently refinanced in February 2026 in the amounts of $2,710,624 and $2,473,684, with a new maturity date of June 17, 2027. The Company sold two of the facilities in January 2026 resulting in the repayment of $5,785,659 of outstanding principal. The Company sold an additional two of the facilities in May 2026 resulting in the repayment of $5,252,964 of outstanding principal at the time of repayment, see Note 12.
   
(3) The Company refinanced its mortgage that would have matured in May of 2022 amounting to $3,000,000 and extend its maturity date to October 2027.
   
(4) The Company refinanced three mortgages in July 2021, that would have matured in June and July of 2021 amounting to $2,065,969 and $750,000, $500,000, to extend their maturity dates to June 2027. Additionally, the Company has refinanced the primary mortgage at the Southern Hills Campus, for 35 years at 2.38% with a maturity date of October 1, 2056.
SCHEDULE OF UNSECURED NOTES AND NOTES SECURED BY ALL ASSETS

The Company’s corporate debt as of March 31, 2026 and December 31, 2025 includes unsecured notes and notes secured by all assets of the Company not serving as collateral for other notes.

 

   Face  

Total Principal

Outstanding as of

   Stated Interest  Maturity
Series 

Amount

   March 31, 2026   December 31, 2025   Rate 

Date

Senior Secured Promissory Notes  $1,255,000   $-   $1,050,000   13% Fixed  February 28, 2026
Promissory Note – Southern Bank   545,952    484,094    541,238   7.25% Fixed  December 12, 2030
Senior Secured Promissory Notes – Related Party   775,000    -    775,000   13% Fixed  February 28, 2026
   $2,575,952   $484,094   $2,366,238       
SCHEDULE OF FUTURE MATURITIES OF NOTES PAYABLE

Future maturities and principal payments of all notes payable listed above for the next five years and thereafter are as follows:

 

Year Ending December 31    
2026 (remaining nine months)  $8,911,513 
2027   3,052,109 
2028   456,873 
2029   472,334 

2030

   

483,699

 
Thereafter   9,214,345 
      
Total (without debt discount)  $22,590,873