DEBT AND DEBT - RELATED PARTIES (Tables)
|
6 Months Ended |
Jun. 30, 2026 |
|---|
| Debt Disclosure [Abstract] |
|
| SCHEDULE OF DEBT OUTSTANDING |
The
following is a summary of the Company’s debt outstanding as of June 30, 2026 and December 31, 2025:
SCHEDULE OF DEBT OUTSTANDING
| | |
June 30, 2026 | | |
December 31, 2025 | |
| | |
| | |
| |
| Senior Secured Promissory Notes | |
$ | 431,772 | | |
$ | 1,591,238 | |
| Senior Secured Promissory Notes - Related Parties | |
| - | | |
| 775,000 | |
| Fixed-Rate Mortgage Loans | |
| 12,406,293 | | |
| 24,258,870 | |
| Variable-Rate Mortgage Loans | |
| 4,361,750 | | |
| 4,485,462 | |
| Line of Credit | |
| - | | |
| 325,192 | |
| Total | |
| 17,199,815 | | |
| 31,435,762 | |
| Unamortized Discount and Debt Issuance Costs | |
| (200,733 | ) | |
| (435,200 | ) |
| | |
| | | |
| | |
| Total
debt, net of discount | |
$ | 16,999,082 | | |
$ | 31,000,562 | |
| As presented in the Consolidated Balance Sheets: | |
| | | |
| | |
| | |
| | | |
| | |
| Current Maturities of Long-Term Debt, Net | |
$ | 5,386,507 | | |
$ | 10,938,102 | |
| Current Maturities of Long-Term Debt, Net classified within liabilities held for sale (1) | |
| - | | |
| 5,554,463 | |
| Short Term Debt – Related Parties, Net | |
| - | | |
| 775,000 | |
| Line of Credit - Current | |
| - | | |
| 325,192 | |
| Long-Term Debt | |
| 11,612,575 | | |
| 13,407,805 | |
| Debt and Debt Related
parties | |
$ | 16,999,082 | | |
$ | 31,000,562 | |
| (1) |
|
$0
and $5,554,463 is classified within Liabilities held for sale within the consolidated balance sheets as of June 30, 2026 and December
31, 2025, respectively, which is the short-term classified debt attributable to our two Georgia facilities sold in January 2026 (See
Note 9). |
|
| SCHEDULE OF MORTGAGE LOAN DEBT |
SCHEDULE
OF MORTGAGE LOAN DEBT
| | |
Number
of | | |
Total
Face | | |
Total Principal Outstanding as of | |
| State | |
Properties | | |
Amount | | |
June 30, 2026 | | |
December 31, 2025 | |
| Arkansas(1) | |
| 1 | | |
$ | 5,000,000 | | |
$ | 3,463,988 | | |
$ | 3,571,114 | |
| Georgia(2) | |
| 0 | | |
$ | 6,689,214 | | |
$ | - | | |
$ | 10,924,875 | |
| Ohio(3) | |
| 1 | | |
$ | 3,000,000 | | |
$ | 2,399,490 | | |
$ | 2,439,636 | |
| Oklahoma(4) | |
| 6 | | |
$ | 13,181,325 | | |
$ | 10,904,565 | | |
$ | 11,808,708 | |
| | |
| 8 | | |
$ | 27,870,539 | | |
$ | 16,768,043 | | |
$ | 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 six months ended June
30, 2026 and 2025, the Company recognized other income of $107,328
and $43,103,
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 $5,184,308 of outstanding principal at the time of repayment. |
| |
|
| (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 June 30, 2026 and December 31, 2025 includes unsecured notes and notes secured by all assets of
the Company not serving as collateral for other notes.
SCHEDULE OF UNSECURED NOTES AND NOTES SECURED BY ALL ASSETS
| | |
| | |
Total
Principal Outstanding
as of | | |
Stated | |
|
| Series | |
Face
Amount | | |
June
30, 2026 | | |
December
31, 2025 | | |
Interest
Rate | |
Maturity
Date |
| Senior Secured Promissory Notes | |
$ | 1,255,000 | | |
$ | - | | |
$ | 1,050,000 | | |
13% Fixed | |
February 28, 2026 |
| Promissory Note – Southern Bank | |
| 545,952 | | |
| 431,772 | | |
| 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 | | |
$ | 431,772 | | |
$ | 2,366,238 | | |
| |
|
|
| SCHEDULE OF FUTURE MATURITIES AND PRINCIPAL PAYMENTS OF NOTES PAYABLE |
Future
maturities and principal payments of all notes payable listed above for the next five years and thereafter are as follows:
SCHEDULE
OF FUTURE MATURITIES AND PRINCIPAL PAYMENTS OF NOTES PAYABLE
| Year Ending December 31 | |
| |
| 2026 (remaining six months) | |
$ | 3,544,801 | |
| 2027 | |
| 3,011,068 | |
| 2028 | |
| 456,873 | |
| 2029 | |
| 472,334 | |
| 2030 | |
| 483,699 | |
| Thereafter | |
| 9,231,040 | |
| | |
| | |
| Total (without debt discount) | |
$ | 17,199,815 | |
|