8. SALE OF ASSETS

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.

During the six months ended June 30, 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.

A summary of the sale is as follows:

SCHEDULE OF SALE OF SUBSIDIARIES 

As part of the sale of the properties, the Company recorded a gain on the sale of the properties. A summary of the gain is as follows:

SCHEDULE OF GAIN ON SALE OF PROPERTY