Notes Payable and Other Debt (Tables)

6 Months Ended

Jun. 30, 2026

Schedule of Notes Payable and Other Debt

Notes payable and other debt consists of the following:


(Amounts in 000’s)	June 30, 2026			December 31, 2025
Senior debt—guaranteed by HUD	$	26,837		$	27,281
Senior debt—guaranteed by USDA (1)		6,392			6,575
Senior debt—guaranteed by SBA(2)		494			509
Senior debt—bonds		5,638			5,811
Senior debt—other mortgage indebtedness		3,072			2,979
Other debt		930			805
Subtotal		43,363			43,960
Deferred financing costs		(704	)		(706	)
Unamortized discount on bonds		(98	)		(101	)
Notes payable and other debt	$	42,561		$	43,153

(1)

U.S. Department of Agriculture (USDA)

(2)

U.S. Small Business Administration (SBA)

The following is a detailed listing of the debt facilities that comprise each of the above categories:


(Amounts in 000’s)
Facility	Lender	Maturity	Interest Rate (1)			June 30, 2026		December 31, 2025
Senior debt - guaranteed by HUD (2)
The Pavilion Care Center	Newpoint Capital	12/01/2039	Fixed	3.97	%	$	707	$	727
Hearth and Care of Greenfield	Newpoint Capital	08/01/2050	Fixed	3.97	%		1,803		1,825
Woodland Manor	Newpoint Capital	11/01/2052	Fixed	3.97	%		4,654		4,703
Glenvue	Newpoint Capital	10/01/2044	Fixed	3.75	%		6,489		6,611
Autumn Breeze	KeyBank	01/01/2045	Fixed	3.65	%		5,646		5,751
Georgetown	Newpoint Capital	10/01/2046	Fixed	2.98	%		2,872		2,923
Sumter Valley	KeyBank	01/01/2047	Fixed	3.70	%		4,666		4,741
Total						$	26,837	$	27,281
Senior debt - guaranteed by USDA (3)
Mountain Trace	Community B&T	12/24/2036	Prime + 1.75%	10.25	%		3,114		3,193
Southland	Cadence Bank, NA	07/27/2036	Prime + 1.50%	10.00	%		3,278		3,382
Total						$	6,392	$	6,575
Senior debt - guaranteed by SBA
Southland(4)	Cadence Bank, NA	07/27/2036	Prime + 2.25%	10.75	%		494		509
Total						$	494	$	509

(1)

Represents interest rates as of June 30, 2026 as adjusted for interest rate floor limitations, if applicable. The rates exclude amortization of deferred financing costs which are approximately 0.16% per annum.

(2)

For the seven SNF’s, the Company has term loans insured 100% by HUD with financial institutions. The loans are secured by, among other things, an assignment of all rents paid under any existing or future leases and rental agreements with respect to the underlying facility. The loans contain customary events of default, including fraud or material misrepresentations or material omission, the commencement of a forfeiture action or proceeding, failure to make required payments, and failure to perform or comply with certain agreements. Upon the occurrence of certain events of default, the lenders may, after receiving the prior written approval of HUD, terminate the loans and all amounts under the loans will become immediately due and payable. In connection with entering into loans, the facilities entered into a healthcare regulatory agreement and a promissory note, each containing customary terms and conditions.

(3)

For the two SNF’s, the Company has term loans with financial institutions, which are insured 70% to 80% by the USDA. The loans have an annual renewal fee for the USDA guarantee of 0.25% of the guaranteed portion. The loans have prepayment penalties of 1% through 2020, capped at 1% for the remainder of the first 10 years of the term and 0% thereafter.

(4)

For one SNF, commonly known as Southland, the Company has a term loan with a financial institution, which is insured 75% by the SBA.

         (Amounts in 000’s)

         Facility

         Lender

         Maturity

         Interest Rate (1)

         June 30, 2026

         December 31, 2025

         Senior debt - bonds

         Eaglewood Bonds Series A

         City of Springfield, Ohio

         05/01/2042

         Fixed

         7.65%

         $5,638

         $5,811

(1)

Represents cash interest rates as of June 30, 2026. The rates exclude amortization of deferred financing of approximately 0.10% per annum.

         (Amounts in 000’s)

         Facility

         Lender

         Maturity

         Interest Rate (1)

         June 30,
2026

         December 31,
2025

         Senior debt - other mortgage indebtedness

         Meadowood (2)

         Exchange Bank of Alabama

         10/01/2026

         Fixed

         4.50%

         $2,889

         $2,979

         Meadowood - Line of Credit

         Exchange Bank of Alabama

         02/15/2027

         Fixed

         6.75%

         183

         —

(1)

Represents cash interest rates as of June 30, 2026 as adjusted for interest rate floor limitations, if applicable. The rates exclude amortization of deferred financing costs of 0.34% per annum.

(2)

The Meadowood Credit Facility is secured by the Meadowood Facility and the assets of Coosa, which is guaranteed by Regional Health Properties, Inc.


(Amounts in 000’s)
Lender	Maturity	Interest Rate			June 30, 2026		December 31, 2025
Other debt
First Insurance Funding (1)	08/15/2026	Fixed	10.95	%	$	229	$	254
AFCO Insurance	08/09/2026	Fixed	9.50	%		—		34
Cavalier Senior Living	11/15/2026	Fixed	6.00	%		19		22
First Horizon Bank	02/24/2031	Fixed	7.25	%		187		—
Key Bank (2)	08/25/2030	Fixed	0.00	%		495		495
Total					$	930	$	805

(1)

Annual Insurance financing primarily for the Company's directors and officers insurance.

(2)

On December 30, 2022, Key Bank and the Company extended the maturity date from August 25, 2025 to August 25, 2030.

Summary of the Scheduled Maturities

The schedule below summarizes the scheduled gross maturities as of June 30, 2026 for the remaining six months ending December 31, 2026 and each of the next four years and thereafter.


For the Twelve Months Ended December 31,	(Amounts in 000’s)
For the remaining six months ending December 31, 2026	$	7,401
2027		1,393
2028		1,393
2029		1,611
2030		2,180
Thereafter		29,385
Subtotal	$	43,363
Less: unamortized discounts		(98	)
Less: deferred financing costs, net		(704	)
Total notes and other debt	$	42,561