As of June 30, 2026 and December 31, 2025, 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 2.3 years as of June 30, 2026. The Company subleases the Covington facility to a third party.

The Company subleases certain office space located in Atlanta, Georgia, which will expire on July 31, 2027.

The Pharmacy Segment business assets at the Merger included $593 thousand of Right of Use assets, consisting primarily of four non-cancellable property leases with expiration dates ranging from July 2027 to March 2031 and office equipment leases. As of June 30, 2026, the Company's total Right of Use asset balance was $3.0 million and is a part of the Company's Other assets balance of $3.8 million. As of December 31, 2025, the Company's total Right of Use asset balance was $2.9 million and is a part of the Company's Other assets balance of $3.8 million.

As of June 30, 2026, the Company is in compliance with all operating lease financial covenants.

Future minimum lease payments for the twelve months ending December 31, for the remaining six months ending December 31, 2026 and each of the next four years and thereafter is as follows:


(Amounts in 000’s)	Future rental payments		Accretion of lease liability (1)			Operating lease obligation
For the remaining six months ending December 31, 2026	$	566	$	(87	)	$	479
2027		1,076		(124	)		952
2028		998		(66	)		932
2029		546		(17	)		529
2030		313		(5	)		308
Thereafter		29		(1	)		28
Total	$	3,528	$	(300	)	$	3,228

(1)

Weighted average discount rate 7.98% and weighted average remaining term 3.25 years.

On February 1, 2026, the Company terminated the lease with C-Ross for the Autumn Breeze facility. We have subsequently entered into a management agreement with CJM Advisors to provide day-to-day management services.

As of June 30, 2026, five facilities (four owned by Regional and one leased to Regional) are leased or subleased on a triple net basis, meaning that the lessee (i.e., the third-party operator of the property, or the Company with respect to the operated facilities) is obligated under the lease or sublease, as applicable, for all liabilities of the property in respect to insurance, taxes and facility maintenance, as well as the lease or sublease payments, as applicable. As of June 30, 2026, all facilities are operated by Aspire Regional Partners.

Future minimum lease receivables for the twelve months ending December 31, for the remaining six months ending December 31, 2026 and each of the next four years and thereafter is as follows:


(Amounts in 000’s)	Lease Receivables
For the remaining six months ending December 31, 2026	$	1,573
2027		3,167
2028		2,924
2029		-
2030		-
Thereafter		-
Total	$	7,664

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 8 - Leases and Leasing Transactions in Part I, Item 1, Financial Statements and Supplementary Data, included in the Annual Report.