Form 10-Q - Quarterly report [Sections 13 or 15(d)]

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2024

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission File Number 001-33135

Regional Health Properties, Inc.

(Exact name of registrant as specified in its charter)

    Georgia

    81-5166048

    (State or other jurisdiction
of incorporation)

    (I.R.S. Employer
Identification Number)

1050 Crown Pointe Parkway, Suite 720, Atlanta, GA 30338

(Address of principal executive offices)

(678) 869-5116

(Registrant's telephone number, including area code)

(Former name, former address and former fiscal year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, no par value	RHE	NYSE American
Series A Redeemable Preferred Stock, no par value	RHE-PA	NYSE American

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See definition of "large accelerated filer", "accelerated filer", "smaller reporting company" and "emerging growth company" in Rule 12b-2 of the Exchange Act.:


Large accelerated filer	☐	Accelerated filer	☐
Non-accelerated filer	☒	Smaller reporting company	☒
		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. Yes ☐ No ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).Yes ☐ No ☒

Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date.

As of May 13, 2024 the registrant had 1,839,028 shares of common stock, no par value, outstanding.

Regional Health Properties, Inc.

Form 10-Q

Table of Contents


		Page Number
Part I.	FINANCIAL INFORMATION

Item 1.	Financial Statements (unaudited)	3
	Consolidated Balance Sheets as of March 31, 2024 and December 31, 2023	3
	Consolidated Statements of Operations for the three months ended March 31, 2024 and 2023	4
	Consolidated Statements of Stockholders' Equity (Deficit) for the three months ended March 31, 2024 and 2023	5
	Consolidated Statements of Cash Flows for the three months ended March 31, 2024 and 2023	6
	Notes to Consolidated Financial Statements	8
Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	23
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	30
Item 4.	Controls and Procedures	30

Part II.	OTHER INFORMATION

Item 1.	Legal Proceedings	30
Item 1A.	Risk Factors	30
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	30
Item 3.	Defaults upon Senior Securities	31
Item 4.	Mine Safety Disclosures	31
Item 5.	Other Information	31
Item 6.	Exhibits	31

Signatures		33

Part I. Financial Information

Item 1. Financial Statements

REGIONAL HEALTH PROPERTIES, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(Amounts in 000's)


	March 31, 2024			December 31, 2023

	(Unaudited)
ASSETS
Property and equipment, net	$	44,885		$	45,337
Cash		752			953
Restricted cash		3,223			3,231
Accounts receivable, net of allowances of $2,056 and $2,040		1,464			1,403
Prepaid expenses and other		410			609
Notes receivable		1,034			1,044
Intangible assets - bed licenses		2,471			2,471
Intangible assets - lease rights, net		83			87
Right-of-use operating lease assets		2,455			2,556
Goodwill		1,585			1,585
Lease deposits and other deposits		4			4
Straight-line rent receivable		2,859			2,901
Total assets	$	61,225		$	62,181
LIABILITIES AND EQUITY (DEFICIT)
Senior debt, net	$	43,500		$	43,855
Bonds, net		5,993			5,991
Other debt, net		516			889
Accounts payable		3,106			2,493
Accrued expenses		4,240			4,060
Operating lease obligation		2,807			2,917
Other liabilities		1,797			1,791
Total liabilities		61,959			61,996

Stockholders' equity (deficit):
Common stock and additional paid-in capital, no par value; 55,000 shares authorized; 1,850 shares issued and 1,839 shares outstanding at March 31, 2024 and December 31, 2023		63,102			63,059
Preferred stock, no par value; 5,000 shares authorized (including amounts authorized for Series A and Series B); shares issued and outstanding designated as follows:
Preferred stock, Series A, no par value; 560 shares authorized, issued and outstanding at March 31, 2024 and December 31, 2023, with a redemption amount $426 at March 31, 2024 and December 31, 2023		426			426
Preferred stock, Series B, no par value; 2,812 shares authorized; 2,252 shares issued and outstanding at March 31, 2024 and December 31, 2023, with a redemption amount $18,602 at March 31, 2024 and December 31, 2023		18,602			18,602
Accumulated deficit		(82,864	)		(81,902	)
Total stockholders' equity (deficit)		(734	)		185
Total liabilities and stockholders' equity (deficit)	$	61,225		$	62,181

See accompanying notes to unaudited consolidated financial statements.

REGIONAL HEALTH PROPERTIES, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(Amounts in 000's)

(Unaudited)


	Three Months Ended March 31,
	2024			2023
Revenues:
Patient care revenues	$	2,309		$	1,916
Rental revenues		1,818			1,708
Management fees		—			278
Other revenues		—			4
Total revenues		4,127			3,906
Expenses:
Patient care expense		2,101			2,321
Facility rent expense		149			149
Cost of management fees		—			141
Depreciation and amortization		511			510
General and administrative expense		1,632			1,531
Doubtful accounts expense		28			16
Total expenses		4,421			4,668
Loss from operations		(294	)		(762	)
Other expense:
Interest expense, net		674			680
Other (income) expense, net		(6	)		550
Total other expense, net		668			1,230
Net loss		(962	)		(1,992	)
Preferred stock dividends - undeclared		—			(2,249	)
Net loss attributable to Regional Health Properties, Inc. common stockholders	$	(962	)	$	(4,241	)
Net loss per share of common stock attributable to Regional Health Properties, Inc.
Basic and Diluted	$	(0.52	)	$	(2.28	)
Weighted average shares of common stock outstanding:
Basic and Diluted		1,839			1,862

See accompanying notes to unaudited consolidated financial statements.

REGIONAL HEALTH PROPERTIES, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (DEFICIT)

(Amounts in 000's)

(Unaudited)


	Shares of Common Stock		Shares of Preferred Stock A		Shares of Preferred Stock B		Shares of Treasury Stock			Common Stock and Additional Paid-in Capital		Preferred Stock A, no par value		Preferred Stock B, no par value		Accumulated Deficit			Total
Balance, December 31, 2023		1,839		560		2,252		(11	)	$	63,059	$	426	$	18,602	$	(81,902	)	$	185
Stock-based compensation		—		—		—		—			43		—		—		—			43
Net loss		—		—		—		—			—		—		—		(962	)		(962	)
Balances, March 31, 2024		1,839		560		2,252		(11	)	$	63,102	$	426	$	18,602	$	(82,864	)	$	(734	)


	Shares of Common Stock		Shares of Preferred Stock A		Shares of Preferred Stock B		Shares of Treasury Stock			Common Stock and Additional Paid-in Capital		Preferred Stock A, no par value		Preferred Stock B, no par value		Accumulated Deficit			Total
Balances, December 31, 2022		1,784		2,812		—		(9	)	$	62,702	$	62,423	$	—	$	(121,409	)	$	3,716
Restricted stock issuance		99		—		—		—			—		—		—		—			—
Stock-based compensation		—		—		—		—			81		—		—		—			81
Net Loss		—		—		—		—					—		—		(1,992	)		(1,992	)
Balances, March 31, 2023		1,883		2,812		—		(9	)	$	62,783	$	62,423	$	—	$	(123,401	)	$	1,805

See accompanying notes to unaudited consolidated financial statements.

REGIONAL HEALTH PROPERTIES, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Amounts in 000's)

(Unaudited)


	Three Months Ended March 31,
	2024			2023
Cash flows from operating activities:
Net loss	$	(962	)	$	(1,992	)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization		511			510
Stock-based compensation expense		43			81
Rent expense less than cash paid		(9	)		(4	)
Rent revenue in excess of cash received		121			26
Amortization of deferred financing costs, debt discounts and premiums		25			19
Bad debt expense		28			16
Changes in operating assets and liabilities:
Accounts receivable		(168	)		3,357
Prepaid expenses and other assets		209			546
Accounts payable and accrued expenses		793			(107	)
Other liabilities		6			145
Net cash provided by operating activities		597			2,597
Cash flows from investing activities:
Purchase of property and equipment		(55	)		(2	)
Net cash used in investing activities		(55	)		(2	)
Cash flows from financing activities:
Payment of senior debt		(378	)		(322	)
Payment of other debt		(373	)		(363	)
Net cash used in financing activities		(751	)		(685	)
Net change in cash and restricted cash		(209	)		1,910
Cash and restricted cash, beginning		4,184			3,909
Cash and restricted cash, ending	$	3,975		$	5,819

REGIONAL HEALTH PROPERTIES, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Amounts in 000's)

(Unaudited)


	Three Months Ended March 31,
	2024		2023
Supplemental disclosure of cash flow information:
Cash interest paid	$	677	$	650

See accompanying notes to unaudited consolidated financial statements.

REGIONAL HEALTH PROPERTIES, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements

March 31, 2024

NOTE 1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES

Description of Business

Regional Health Properties, Inc.'s (the "Company" or "Regional Health") predecessor was incorporated in Ohio on August 14, 1991, under the name Passport Retirement, Inc. In 1995, Passport Retirement, Inc. acquired substantially all of the assets and liabilities of AdCare Health Systems, Inc. and changed its name to AdCare Health Systems, Inc. ("AdCare"). AdCare completed its initial public offering in November 2006, relocated its executive offices and accounting operations to Georgia in 2012, and changed its state of incorporation from Ohio to Georgia in December 2013. Regional Health Properties, Inc. is a self-managed real estate investment company that invests primarily in real estate purposed for long-term care and senior housing. The Company's business primarily consists of leasing such facilities to third-party tenants, which operate the facilities. The Company has two primary reporting segments: (i) Real Estate, which consists of the leasing and subleasing of long-term care and senior living facilities to third-party tenants and (ii) Healthcare Services segment, which consists of the operation of the Meadowood and Glenvue facilities. Effective August 3, 2023, the Company’s 12.5% Series B Cumulative Redeemable Preferred Shares (the “Series B Preferred Stock”) is quoted on the OTC Markets Group, Inc.’s OTCQB Venture Market under the symbol “RHEPB”.

Basis of Presentation

The accompanying consolidated financial statements are prepared in conformity with United States ("U.S.") generally accepted accounting principles ("GAAP") in accordance with the Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC"). The accompanying condensed consolidated financial statements are unaudited and should be read in conjunction with the 2023 audited consolidated financial statements and notes thereto, which are included in the 2023 Form 10-K filed with the U.S. Securities and Exchange Commission ("SEC") on April 1, 2024.

Use of Estimates

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the unaudited consolidated financial statements and accompanying notes. Actual results could differ materially from those estimates.

Reclassifications

Certain reclassifications have been made to the amounts reported in the prior period in order to conform to the current period's presentation. A reclassification has been made to certain expenses reported on the consolidated statements of operations in the prior period in order to conform to the current period's presentation.

Revenue Recognition and Allowances

Patient Care Revenue. ASC Topic 606, Revenue from Contracts with Customers, requires a company to recognize revenue when the company transfers control of promised goods and services to a customer. Revenue is recognized in an amount that reflects the consideration to which a company expects to receive in exchange for such goods and services. Revenue from our Healthcare Services business segment is derived from services rendered to patients in the Meadowood and Glenvue facilities. The Company receives payments from the following sources for services rendered in our facilities: (i) the federal government under the Medicare program administered by CMS; (ii) state governments under their respective Medicaid and similar programs; (iii) commercial insurers; and (iv) individual patients and clients. The vast majority (greater than 90%) of the revenue the Company has recognized is from government sources. The Company determines the transaction price based on established billing rates reduced by contractual adjustments provided to third-party payors, discounts provided to uninsured patients and other price concessions. Contractual adjustments and discounts are based on contractual agreements, discount policies and historical experience. The Company recognizes revenue at the amount that reflects the consideration the Company expects to receive in exchange for the services provided. These amounts are due from residents or third-party payors and include variable consideration for retroactive adjustments from estimated reimbursements, if any, under reimbursement programs. Performance obligations, such as providing room and board, wound care, intravenous drug therapy, physical therapy, and quality of life activities amongst others, are determined based on the nature of the services provided are determined based

on the nature of the services provided. Estimated uncollectible amounts due from patients are generally considered implicit price concessions that are a direct reduction to net patient care revenues.

Triple-Net Leased Properties. The Company recognizes rental revenue in accordance with ASC 842, Leases. The Company's triple-net leases provide for periodic and determinable increases in rent. The Company recognizes rental revenues under these leases on a straight-line basis over the applicable lease term when collectability is probable. Recognizing rental income on a straight-line basis generally results in recognized revenues during the first half of a lease term exceeding the cash amounts contractually due from our tenants, creating a straight-line rent receivable that is included in the straight-line rent receivable on our consolidated balance sheets. In the event the Company cannot reasonably estimate the future collection of rent from one or more tenant(s) of the Company's facilities, rental income for the affected facilities is recognized only upon cash collection, and any accumulated straight-line rent receivable is expensed in the period in which the Company deems rent collection to no longer be probable.

Management Fee Revenues and Other Revenues. The Company recognizes management fee revenues as services are provided in accordance with ASU 2014-09, Revenue from Contracts with Customers, as codified in ASC 606, which requires revenue to be recognized in an amount that reflects the consideration to which a company expects to receive in exchange for such goods and services. The Company had one contract to manage three facilities (the “Management Contract”) which ended on December 31, 2023. Further, the Company recognizes interest income from loans and investments, using the effective interest method when collectability is probable. The Company applies the effective interest method on a loan-by-loan basis.

Allowances. The Company assesses the collectability of its rent receivables, including straight-line rent receivables and working capital loans to tenants. The Company bases its assessment of the collectability of rent receivables and working capital loans to tenants on several factors, including payment history, the financial strength of the tenant and any guarantors, the value of the underlying collateral, and current economic conditions. If the Company’s evaluation of these factors indicates it is probable that the Company will be unable to receive the rent payments or payments on a working capital loan, then the Company provides a reserve against the recognized straight-line rent receivable asset or working capital loan for the portion that we estimate may not be recovered. Payments received on impaired loans are applied against the allowance. If the Company changes its assumptions or estimates regarding the collectability of future rent payments required by a lease or required from a working capital loan to a tenant, then the Company may adjust its reserve to increase or reduce the rental revenue or interest revenue from working capital loans to tenants recognized in the period the Company makes such change in its assumptions or estimates. See Note 6 – Leases. The Company has reserved for approximately 1.5% of our patient care receivables based on the historic industry standards and continues to assess the adequacy of such reserve.

The following table presents the Company's Accounts receivable, net of allowance for the periods presented:


(Amounts in 000’s)	March 31, 2024			December 31, 2023
Gross receivables
Real Estate Services	$	656		$	693
Healthcare Services		2,864			2,750
Subtotal		3,520			3,443
Allowance
Real Estate Services		—			—
Healthcare Services		(2,056	)		(2,040	)
Subtotal		(2,056	)		(2,040	)
Accounts receivable, net of allowance	$	1,464		$	1,403

Prepaid Expenses and Other

As of March 31, 2024 and December 31, 2023, the Company had approximately $0.4 million and $0.6 million , respectively, in prepaid expenses and other; the $0.2 million decrease is related to insurance for the Meadowood and Glenvue facility operations, while the other amounts are predominantly for directors' and officers' insurance, NYSE American annual fees, and mortgage insurance premiums.

Accounts Payable

The following table presents the Company's Accounts payable for the periods presented:


(Amounts in 000’s)	March 31, 2024		December 31, 2023
Accounts payable
Real Estate Services	$	1,410	$	751
Healthcare Services		1,696		1,742
Total Accounts payable	$	3,106	$	2,493

Other Liabilities

As of March 31, 2024 and December 31, 2023, the Company had approximately $1.8 million and $1.8 million, respectively in Other liabilities, consisting of security lease deposits and sublease improvement funds.

Other Expense, net

The Company had retained a law firm to evaluate and assist with opportunities to improve the Company's capital structure. See Note 2 – Series A Preferred Exchange Offer.

Leases and Leasehold Improvements

The Company leases certain facilities and equipment in the normal course of business. At the inception of each lease, the Company performs an evaluation to determine whether the lease should be classified as an operating lease or finance lease. As of March 31, 2024, the Company's leased facility is accounted for as an operating lease. For operating leases that contain scheduled rent increases, the Company records rent expense on a straight-line basis over the term of the lease. Leasehold improvements are amortized over the shorter of the useful life of the asset or the lease term.

The Company assesses any new contracts or modification of contracts in accordance with ASC 842, Leases, to determine the existence of a lease and its classification. We are reporting revenues and expenses for real estate taxes and insurance where the lessee has not made those payments directly to a third party in accordance with their respective leases with us.

Insurance

We maintain general liability, professional liability, and other insurance policies in amounts and with coverage and deductibles we believe are appropriate, based on the nature and risks of our business, historical experience, availability, and industry standards, including for the operations at the Glenvue and Meadowood facilities. Our current policies provide for deductibles for each claim and contain various exclusions from coverage. The Company has self-insured against professional and general liability claims related to its healthcare operations that were discontinued during 2014 and 2015 in connection with its transition from an owner and operator of healthcare properties to a healthcare property holding and leasing company (the "Transition"). For further information, see Note 11 – Commitments and Contingencies, and Note 12 – Commitments and Contingencies, to the consolidated financial statements for the year ended December 31, 2023 for more information. The Company evaluates quarterly the adequacy of its self-insurance reserve based on a number of factors, including: (i) the number of actions pending and the relief sought; (ii) analyses provided by defense counsel, medical experts or other information which comes to light during discovery; (iii) the legal fees and other expenses anticipated to be incurred in defending the actions; (iv) the status and likely success of any mediation or settlement discussions, including estimated settlement amounts and legal fees and other expenses anticipated to be incurred in such settlement, as applicable; and (v) the venues in which the actions have been filed or will be adjudicated. The Company believes that most of the professional and general liability actions are defensible and intends to defend them through final judgment unless settlement is more advantageous to the Company. Accordingly, the self-insurance reserve reflects the Company's estimate of settlement amounts for the pending actions, if applicable, and legal costs of settling or litigating the pending actions, as applicable. Because the self-insurance reserve is based on estimates, the amount of the self-insurance reserve may not be sufficient to cover the settlement amounts actually incurred in settling the pending actions, or the legal costs actually incurred in settling or litigating the pending actions. See Note 7 – Accrued Expenses. In addition, the Company maintains certain other insurance programs, including commercial general liability, property, casualty, directors' and officers' liability, crime, and employment practices liability.

Net Loss Per Share

Basic net loss per share is computed by dividing net loss attributable to common stockholders by the weighted-average number of shares of common stock outstanding during the respective period. Diluted earnings per share is similar to basic net loss per share except that the net loss is adjusted by the impact of the weighted-average number of shares of common stock outstanding including potentially dilutive securities (such as options, warrants and non-vested common stock) when such securities are not anti-dilutive. Potentially dilutive securities from options, warrants and unvested restricted shares are calculated in accordance with the treasury stock method, which assumes that proceeds from the exercise of all options and warrants with exercise prices exceeding the average market value are used to repurchase common stock at market value. The incremental shares remaining after the proceeds are exhausted represent the potentially dilutive effect of the securities.

Securities outstanding that were excluded from the computation, because they would have been anti-dilutive were as follows:


	March 31,
(Share amounts in 000’s)	2024		2023
Stock options		33		13
Warrants - employee		32		34
Warrants - non employee		—		1
Total anti-dilutive securities		65		48

The weighted average contractual terms in years for these securities as of March 31, 2024, with no intrinsic value, are 6.6 years for the stock options and 0.8 years for the warrants.

Recently Adopted Accounting Pronouncements

In March 2023, the FASB issued ASU 2023-01, Leases (Topic 842): Common Control Arrangements (Topic 842) amendments, which requires entities to determine whether related party arrangements between entities under common control are leases. The amendments also address the accounting treatment of leasehold improvements associated with common control leases. They require the lessee to amortize leasehold improvements over the useful life of the improvements to the common control group, regardless of the lease term, as long as the lessee controls the use of the underlying asset. If the lessee no longer controls the use of the asset, the leasehold improvements are accounted for as a transfer between entities under common control through an adjustment to equity. These improvements are also subject to impairment guidance in Topic 360, Property, Plant, and Equipment. The amendment is effective for public entities beginning after December 15, 2023. The Company adopted ASU 2023-01 effective January 1, 2024. The adoption of ASU-2023-01 did not have a material impact on the Company's consolidated financial statements.

New Accounting Pronouncements Issued But Not Yet Effective

In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which requires a public company to disclose information about their reportable segments’ significant expenses and other segment items on an interim and annual basis. A public company with a single reportable segment is required to apply the disclosure requirements in ASU 2023-07, as well as all existing segment disclosures and reconciliation requirements in ASC 280 on an interim and annual basis. ASU 2023-07 is effective for fiscal years beginning after December 15, 2023, and for interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted. The Company is currently evaluating the impact of adopting ASU 2023-07.

In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures,

which requires a public company, on an annual basis, to provide disclosure of specific categories in the rate reconciliation, as well as disclosure of income taxes paid disaggregated by jurisdiction. ASU 2023-09 is effective for fiscal years beginning after December 15, 2024, with early adoption permitted. The Company does not expect the adoption of ASU 2023-09 to have a material impact on the Company's consolidated financial statements.

No other new accounting pronouncement issued or effective has had, or is expected to have, a material impact on the Company's financial statements.

NOTE 2. LIQUIDITY

Overview

The Company intends to pursue measures to grow its operations, streamline its cost infrastructure and otherwise increase liquidity, including: (i) refinancing or repaying debt to reduce interest costs and mandatory principal repayments, with such repayment to be funded through potentially expanding borrowing arrangements with certain lenders; (ii) increasing future lease revenue through acquisitions and investments in existing properties; (iii) modifying the terms of existing leases; (iv) replacing certain tenants who default on their lease payment terms; and (v) reducing other and general and administrative expenses.

Management anticipates access to several sources of liquidity, including cash on hand, cash flows from operations, and debt refinancing during the twelve months following the date of this filing. At March 31, 2024, the Company had $0.8 million in unrestricted cash and $1.5 million of net accounts receivable, mainly consisting of patient accounts receivable and rent receivables.

During the three months ended March 31, 2024, the Company's cash provided by operating activities was $0.6 million primarily due to the timing of accounts payable and accrued expense payments. The Company is seeking collection of the past due rent. In addition, management is working to expedite the time it takes to collect and receive aged patient receivables. Cash flow from operations in the future will be based on the operational performance of the facilities under the company's management, Glenvue and Meadowood, as well as continued uncertainty of the COVID-19 pandemic and its impact on the Company's business, financial condition and results of operations.

Series A Preferred Stock Exchange Offer ("Exchange Offer")

In early 2020, the Company began ongoing efforts to investigate alternatives to retire or refinance our outstanding Series A Preferred Stock through privately negotiated transactions, open market repurchases, redemptions, exchange offers, tender offers, or otherwise.

On June 30, 2023, the Company closed the Company’s offer to exchange (the “Exchange Offer”) any and all outstanding shares of the Company’s 10.875% Series A Cumulative Redeemable Preferred Shares (the “Series A Preferred Stock”) for newly issued shares of the Company’s Series B Preferred Stock. In connection with the completion of the Exchange Offer and the implementation of the Series A Charter Amendments and the Series B Charter Amendments, the liquidation preference of the Series A Preferred Stock was reduced, accumulated and unpaid dividends on the Series A Preferred Stock were eliminated and future dividends on the Series A Preferred Stock were eliminated. As a result, $50.4 million in accumulated and unpaid dividends on the Series A Preferred Stock were eliminated and, as of March 31, 2024, there are no accumulated and unpaid dividends on the Series A Preferred Stock. For further information regarding the Exchange Offer, Series A Charter Amendments and Series B Charter Amendments, see Note 9 – Common and Preferred Stock.

The Company is current with all of its debt and other financial obligations.

Costs associated with these efforts have been expensed as incurred in “Other expense, net” and were $0.6 million for the three months ended March 31, 2023, and there were no expenses incurred for the three months ended March 31, 2024.

Series A Preferred Dividend Suspension

Prior to the Exchange Offer, as discussed above, we suspended the quarterly dividend payment with respect to our Series A Preferred Stock commencing with the fourth quarter of 2017, and on June 8, 2018, the Board suspended quarterly dividend payments indefinitely with respect to the Series A Preferred Stock. The dividend suspension provided the Company with additional funds to meet its ongoing liquidity needs. As the Company had failed to pay cash dividends on the outstanding Series A Preferred Stock in full for more than four dividends periods, the annual dividend rate on the Series A Preferred Stock for the fifth and future missed dividend periods had increased to 12.875%, which was equivalent to approximately $3.20 per share each year, commencing on the first day after the missed fourth quarterly payment (October 1, 2018) and continuing until the second consecutive dividend payment date following such time as the Company had paid all accumulated and unpaid dividends on the Series A Preferred Stock in full in cash. As discussed above, in connection with the completion of the Exchange Offer, accumulated and unpaid dividends on the Series A Preferred Stock were eliminated.

Debt

As of March 31, 2024, the Company had $50.0 million in indebtedness, net of $1.0 million deferred financing costs and unamortized discounts. The Company anticipates net principal repayments of approximately $1.7 million during the next twelve-month period, approximately $1.5 million of routine debt service amortization and a $0.1 million payment of bond debt.

Debt Covenant Compliance

At March 31, 2024, the Company was in compliance with the various financial and administrative covenants related to all of the Company's credit facilities except for one immaterial non-compliance. When management learned of the non-compliance, the non-compliance was cured after the balance sheet date.

Evaluation of the Company's Ability to Continue as a Going Concern

Under the accounting guidance related to the presentation of financial statements, the Company is required to evaluate, on a quarterly basis, whether or not the Company's current financial condition, including its sources of liquidity at the date that the consolidated financial statements are issued, will enable the Company to meet its obligations as they come due arising within one year of the date of the issuance of the Company's consolidated financial statements and to make a determination as to whether or not it is probable, under the application of this accounting guidance, that the Company will be able to continue as a going concern. The Company's consolidated financial statements have been presented on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business.

In applying applicable accounting guidance, management considered the Company's current financial condition and liquidity sources, including current funds available, forecasted future cash flows, the Company's obligations due over the next twelve months, and the Company's recurring business operating expenses.

The Company concluded that it is probable that the Company will be able to meet its obligations arising within one year of the date of issuance of these consolidated financial statements within the parameters set forth in the accounting guidance.

NOTE 3. CASH AND RESTRICTED CASH

The following presents the Company's cash and restricted cash:


(Amounts in 000’s)	March 31, 2024		December 31, 2023
Cash	$	752	$	953
Restricted cash:
Cash collateral		159		159
HUD and other replacement reserves		2,126		2,125
Escrow deposits		621		630
Restricted investments for debt obligations		317		317
Total restricted cash		3,223		3,231
Total cash and restricted cash	$	3,975	$	4,184

Cash collateral—In securing mortgage financing from certain lending institutions, the Company and certain of its wholly-owned subsidiaries are required to deposit cash to be held as collateral in accordance with the terms of such loan agreements.

HUD and other replacement reserves—The regulatory agreements entered into in connection with the financing secured through HUD require monthly escrow deposits for replacement and improvement of the HUD project assets.

Escrow deposits—In connection with financing secured through the Company's lenders, several wholly-owned subsidiaries of the Company are required to make monthly escrow deposits for taxes and insurance.

Restricted cash for debt obligations—In compliance with certain financing and insurance agreements, the Company and certain wholly-owned subsidiaries of the Company are required to deposit cash held as collateral by the lender or in escrow with certain designated financial institutions.

NOTE 4. PROPERTY AND EQUIPMENT

The following table sets forth the Company's property and equipment:


(Amounts in 000’s)	Estimated Useful Lives (Years)		March 31, 2024			December 31, 2023
Buildings and improvements	5-40		$	64,466		$	64,447
Equipment and computer related	2-10			1,095			1,187
Land (1)		—		2,774			2,774
Property and equipment				68,335			68,408
Less: accumulated depreciation				(23,450	)		(23,071	)
Property and equipment, net			$	44,885		$	45,337

(1)

Includes $0.1 million of land improvements with an average estimated useful remaining life of approximately 6.1 years as of March 31, 2024.

The following table summarizes total depreciation and amortization expense three months ended March 31, 2024 and 2023:


	Three Months Ended March 31,
(Amounts in 000’s)	2024		2023
Depreciation	$	403	$	400
Amortization		108		110
Total depreciation and amortization expense	$	511	$	510

NOTE 5. INTANGIBLE ASSETS AND GOODWILL

Intangible assets and Goodwill consist of the following:


(Amounts in 000’s)	Bed licenses (included in property and equipment)1)			Bed Licenses - Separable (2)		Lease Rights			Total			Goodwill (2)
Balances, December 31, 2023
Gross	$	14,276		$	2,471	$	176		$	16,923		$	1,585
Accumulated amortization		(4,997	)		—		(89	)		(5,086	)		—
Net carrying amount	$	9,279		$	2,471	$	87		$	11,837		$	1,585
Balances, March 31, 2024
Gross	$	14,276		$	2,471	$	176		$	16,923		$	1,585
Accumulated amortization		(5,101	)		—		(93	)		(5,194	)		—
Net carrying amount	$	9,175		$	2,471	$	83		$	11,729		$	1,585

(1)

Non-separable bed licenses are included in property and equipment as is the related accumulated amortization expense (see Note 4 – Property and Equipment).

(2)

The Company does not amortize indefinite-lived intangibles, which consist of separable bed licenses and goodwill.

The following table summarizes amortization expense for the three months ended March 31, 2024 and 2023:


	Three Months Ended March 31,
(Amounts in 000’s)	2024		2023
Bed licenses	$	104	$	104
Lease rights		4		6
Total amortization expense	$	108	$	110

Expected amortization expense for the years ending December 31, for all definite-lived intangibles, for each of the next five years and thereafter is as follows:


(Amounts in 000’s)	Bed Licenses		Lease Rights
2024	$	311	$	14
2025		414		18
2026		414		18
2027		414		18
2028		414		15
Thereafter		7,208		-
Total expected amortization expense	$	9,175	$	83

NOTE 6. LEASES

Operating Leases

As of March 31, 2024 and December 31, 2023, 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 4.7 years as of March 31, 2024. The Company subleases the Covington facility to a third party.

The Company also leased certain office space located in Suwanee, Georgia through the termination date of June 30, 2023. Effective July 1, 2023, the Company signed a sublease for 2,000 sq ft of office space in Atlanta, Georgia. The sublease expires on July 31, 2025.

As of March 31, 2024, the Company is in compliance with all operating lease financial covenants except for one non-compliance. When management learned of the non-compliance, the non-compliance was cured after the balance sheet date.

Future Minimum Lease Payments

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


(Amounts in 000’s)	Future rental payments		Accretion of lease liability (1)			Operating lease obligation
2024	$	510	$	(16	)	$	494
2025		672		(66	)		606
2026		658		(109	)		549
2027		671		(155	)		516
2028		685		(198	)		487
Thereafter		230		(75	)		155
Total	$	3,426	$	(619	)	$	2,807

(1)

Weighted average discount rate 7.98%.

Facilities Lessor

As of March 31, 2024, the Company was the lessor of 9 of its 11 owned facilities, and the sublessor of one facility. These leases are triple net basis leases, meaning that the lessee (i.e., the third-party tenant of the property) is obligated for all costs of operating the property, including insurance, taxes and facility maintenance, as well as the lease or sublease payments to the Company. The weighted average remaining lease term for our 10 owned and subleased out facilities is approximately 5.3 years.

Future Minimum Lease Receivables

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


	(Amounts in 000's)
2024	$	4,948
2025		6,696
2026		6,801
2027		6,909
2028		6,758
Thereafter		8,227
Total	$	40,339

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

NOTE 7. ACCRUED EXPENSES

Accrued expenses consist of the following:


(Amounts in 000’s)	March 31, 2024		December 31, 2023
Accrued employee benefits and payroll-related	$	365	$	255
Real estate and other taxes (1)		3,055		3,077
Self-insured reserve		—		61
Accrued interest		223		225
Insurance escrow		116		98
Other accrued expenses (2)		481		344
Total accrued expenses	$	4,240	$	4,060

(1)

March 31, 2024 includes approximately $0.7 million of bed taxes in arrears related to the Wellington Transition in 2020 as well as $2.0 million related to our own dates of operation under the Healthcare Services segment and approximately $0.4 million property tax accrual for the Real Estate segment. December 31, 2023 includes approximately $0.7 million of bed taxes in arrears related to the Wellington Transition in 2020 as well as $1.9 million related to our own dates of operation under the Healthcare Services segment and approximately $0.5 million property tax accrual for the twelve months ended December 31, 2023 for the Real Estate segment.

(2)

As of March 31, 2024 and December 31, 2023, the remaining escheatment liabilities for discontinued operations are $0.3 million and are included in other accrued expenses.

NOTE 8. NOTES PAYABLE AND OTHER DEBT

See Note 8 – Notes Payable and Other Debt in Part II, Item 8, Financial Statements and Supplementary Data, included in the Annual Report for a detailed description of all the Company's debt facilities.

Notes payable and other debt consists of the following:


(Amounts in 000’s)	March 31, 2024			December 31, 2023
Senior debt—guaranteed by HUD	$	28,774		$	28,979
Senior debt—guaranteed by USDA (1)		7,186			7,259
Senior debt—guaranteed by SBA(2)		552			557
Senior debt—bonds		6,117			6,117
Senior debt—other mortgage indebtedness		7,913			8,001
Other debt		516			889
Subtotal		51,058			51,802
Deferred financing costs		(937	)		(954	)
Unamortized discount on bonds		(112	)		(113	)
Notes payable and other debt	$	50,009		$	50,735

(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)			March 31, 2024		December 31, 2023
Senior debt - guaranteed by HUD (2)
The Pavilion Care Center	Newpoint Capital	12/01/2039	Fixed	3.97	%	$	792	$	801
Hearth and Care of Greenfield	Newpoint Capital	8/01/2050	Fixed	3.97	%		1,899		1,909
Woodland Manor	Newpoint Capital	11/01/2052	Fixed	3.97	%		4,868		4,891
Glenvue	Newpoint Capital	10/01/2044	Fixed	3.75	%		7,021		7,077
Autumn Breeze	KeyBank	01/01/2045	Fixed	3.65	%		6,106		6,154
Georgetown	Newpoint Capital	10/01/2046	Fixed	2.98	%		3,096		3,120
Sumter Valley	KeyBank	01/01/2047	Fixed	3.70	%		4,992		5,027
Total						$	28,774	$	28,979
Senior debt - guaranteed by USDA (3)
Mountain Trace	Community B&T	12/24/2036	Prime + 1.75%	10.25	%		3,505		3,539
Southland	Cadence Bank, NA	07/27/2036	Prime + 1.50%	10.00	%		3,681		3,720
Total						$	7,186	$	7,259
Senior debt - guaranteed by SBA
Southland(4)	Cadence Bank, NA	07/27/2036	Prime + 2.25%	10.75	%		552		557
Total						$	552	$	557

(1)

Represents interest rates as of March 31, 2024 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)

        March 31, 2024

        December 31, 2023

        Senior debt - bonds

Eaglewood Bonds Series A

City of Springfield, Ohio

05/01/2042

Fixed

7.65

6,117

6,117

(1)

Represents cash interest rates as of March 31, 2024. The rates exclude amortization of deferred financing of approximately 0.10% per annum.


(Amounts in 000’s)
Facility	Lender	Maturity	Interest Rate (1)			March 31, 2024		December 31, 2023
Senior debt - other mortgage indebtedness
Meadowood (2)	Exchange Bank of Alabama	10/01/2026	Fixed	4.50	%	$	3,196	$	3,237
Coosa (3)	Exchange Bank of Alabama	10/10/2026	Fixed	3.95	%		4,717		4,764
Total						$	7,913	$	8,001

(1)

Represents cash interest rates as of March 31, 2024 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.

(3)

The Coosa Credit Facility, guaranteed by Regional Health Properties, Inc., includes customary terms, including events of default with an associated annual 5% default interest rate, and is secured by the Coosa Facility and the assets of Meadowood. Upon the occurrence of certain events of default, the lenders may terminate the Coosa Credit Facility and the Meadowood Credit Facility, and all amounts due under both credit facilities will become immediately due and payable. The Coosa Credit Facility has prepayment penalties of 5% in the 1st year, 4% in the 2nd year and 1% thereafter.


(Amounts in 000’s)
Lender	Maturity	Interest Rate			March 31, 2024		December 31, 2023
Other debt
First Insurance Funding (1)	3/1/2024	Fixed	3.19	%	$	—	$	369
Key Bank (2)	08/25/2025	Fixed	0.00	%		495		495
Marlin Capital Solutions	06/1/2027	Fixed	5.00	%		21		25
Total					$	516	$	889

(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, 2023 to August 25, 2025.

Debt Covenant Compliance

As of March 31, 2024, the Company had 16 credit related instruments outstanding that include various financial and administrative covenant requirements. Covenant requirements include, but are not limited to, fixed charge coverage ratios, debt service coverage ratios, minimum earnings before interest, taxes, depreciation, and amortization or earnings before interest, taxes, depreciation, amortization, and restructuring or rent costs, and current ratios. Certain financial covenant requirements are based on consolidated financial measurements whereas others are based on measurements at the subsidiary level (i.e., facility, multiple facilities or a combination of subsidiaries). The subsidiary level requirements are as follows: (i) financial covenants measured against subsidiaries of the Company; and (ii) financial covenants measured against third-party operator performance. Some covenants are based on annual financial metric measurements, whereas others are based on monthly and quarterly financial metric measurements. The Company routinely tracks and monitors its compliance with its covenant requirements.

As of March 31, 2024, the Company was in compliance with the various financial and administrative covenants under the Company's outstanding credit related instruments except for one immaterial non-compliance. When management learned of the non-compliance, the non-compliance was cured after the balance sheet date.

Scheduled Maturities

The schedule below summarizes the scheduled gross maturities as of March 31, 2024 for each of the next five years and thereafter.


For the Twelve Months Ended December 31,	(Amounts in 000’s)
2024 (9 months remaining)	$	1,297
2025		2,265
2026		8,741
2027		1,560
2028		1,657
Thereafter		35,538
Subtotal	$	51,058
Less: unamortized discounts		(112	)
Less: deferred financing costs, net		(937	)
Total notes and other debt	$	50,009

NOTE 9. COMMON AND PREFERRED STOCK

Common Stock

As of March 31, 2024, the Company had 55,000,000 shares of Common Stock authorized and 1,849,908 shares issued and 1,839,028 shares outstanding. There were no dividends declared or paid on the common stock during the three months ended March 31, 2024 and 2023.

Preferred Stock

As of March 31, 2024, the Company had 5,000,000 shares of Preferred Stock authorized and 2,811,535 shares issued and outstanding.

Series A Preferred Stock

As of March 31, 2024, the Company had 559,263 shares of Series A Preferred Stock issued and outstanding. There were

no dividends declared or paid on the Series A Preferred Stock for the three months ended March 31, 2024 and 2023.

Series B Preferred Stock

As of March 31, 2024, the Company had 2,252,272 shares of Series B Preferred Stock issued and outstanding. There were no dividends declared or paid on the Series B Preferred Stock for the three months ended March 31, 2024.

NOTE 10. STOCK BASED COMPENSATION

Stock Incentive Plans

On September 21, 2023, our Board of Directors (the "Board") approved the Regional Health Properties, Inc. 2023 Omnibus Incentive Compensation Plan (the “2023 Plan”), which was approved by the Company's shareholders on November 16, 2023 at the 2023 Annual Meeting of Shareholders. The 2023 Plan is administered by the Compensation Committee of the Board of the Company. The 2023 Plan shall remain in effect, subject to the right of the Board to amend or terminate the 2023 Plan at any time, until the earlier of 11:59 p.m. (ET) on September 21, 2033, or the date all shares subject to the 2023 Plan shall have been issued and the restrictions on all restricted shares granted under the Plan shall have lapsed, according to the 2023 Plan’s provisions.

Our 2023 Plan replaced the Regional Health Properties, Inc. 2020 Equity Incentive Plan (the “2020 Plan”). Outstanding awards under the 2020 Plan will continue to be governed by the terms of the 2020 Plan until exercised, expired or otherwise terminated or canceled, but no further equity awards will be granted under the 2020 Plan.

As of March 31, 2024, the number of securities remaining available for future issuance under the 2023 Plan is 201,000.

For the three months ended March 31, 2024 and 2023, the Company recognized stock-based compensation expense as follows:


	Three Months Ended March 31,
(Amounts in 000’s)	2024		2023
Employee compensation:
Stock compensation expense	$	43	$	81
Total employee stock-based compensation expense	$	43	$	81

Restricted Stock

The following table summarizes the Company's restricted stock activity for the three months ended March 31, 2024:


	Number of Shares (000's)			Weighted Avg. Grant Date (per Share) Fair Value
Unvested, December 31, 2023		80		$	5.27
Vested		(43	)	$	6.67
Unvested, March 31, 2024		37		$	3.61

No restricted stock awards were granted for three months ended March 31, 2024. The remaining unvested shares at March 31, 2024 will vest over the next 1.8 years with $119 thousand in compensation expense recognized over this period.

Common Stock Options

The following summarizes the Company's employee and non-employee stock option activity for the three months ended March 31, 2024:


	Number of Shares (000's)		Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (in years)		Aggregate Intrinsic Value (000's)
Outstanding, December 31, 2023		33	$	14.84		6.9	$	—
Granted		24	$	2.03
Outstanding, March 31, 2024		57	$	9.41		8.0	$	10.1
Outstanding and Vested, March 31, 2024		44	$	11.55		7.4	$	4.7

A stock option to purchase 24,000 shares of common stock was granted under our 2023 Plan to an employee with an exercise price of $2.03 in January 2024. The weighted average fair value of the option granted was $1.76 and was estimated using the Black-Scholes option-pricing model with the following assumptions: (i) expected term of 5.27 years, (ii) risk free interest rate of 3.81%, (iii) dividend yield of 0.0%, and (iv) expected volatility of 127.14%.The remaining unvested shares at March 31, 2024 will vest over the next 0.8 years with $17 thousand in compensation expense recognized over this period.

The following summary information reflects stock options outstanding, vested, and related details as of March 31, 2024:


	Stock Options Outstanding						Stock Options Exercisable
Exercise Price	Number of Shares (000's)		Weighted Average Remaining Contractual Term (in years)		Weighted Average Exercise Price		Number of Shares (000's)		Weighted Average Exercise Price
$2.03-$3.32		48		9.3	$	2.68		35	$	2.91
$46.80		9		0.7	$	46.80		9	$	46.80
Total		57		8.0	$	9.41		44	$	11.55

Common Stock Warrants

The following summarizes the Company's warrant activity for the three months ended March 31, 2024:


	Number of Warrants (000's)		Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (in years)		Aggregate Intrinsic Value (in 000's)
Outstanding, December 31, 2023		32	$	52.50		1.0	$	—
Granted		—	$	—
Expired		—	$	—
Outstanding, March 31, 2024		32	$	52.50		0.7	$	—

No warrants were granted during the three months ended March 31, 2024. All outstanding warrants are vested, and the Company has no unrecognized compensation expense related to common stock warrants as of March 31, 2024.

NOTE 11. COMMITMENTS AND CONTINGENCIES

Regulatory Matters

Laws and regulations governing federal Medicare and state Medicaid programs are complex and subject to interpretation. Compliance with such laws and regulations can be subject to future governmental review and interpretation as well as significant regulatory action including fines, penalties, and exclusion from certain governmental programs. As of March 31, 2024, all of the Company's facilities operated by Regional or leased and subleased to third-party operators are certified by CMS and are operational. See Note 6 - Leases.

Legal Matters

The Company is a party to various legal actions and administrative proceedings and is subject to various claims arising in the ordinary course of business, including claims that the services the Company provided during the time it operated SNFs resulted in injury or death to the patients of the Company's facilities and claims related to professional and general negligence, employment, staffing requirements and commercial matters. Although the Company intends to vigorously defend itself in these matters, there is no assurance that the outcomes of these matters will not have a material adverse effect on the Company's business, results of operations and financial condition.

The Company previously operated, and the Company and its tenants now operate, in an industry that is highly regulated. As such, in the ordinary course of business, the Company and its tenants are continuously subject to state and federal regulatory scrutiny, supervision and control. Such regulatory scrutiny often includes inquiries, investigations, examinations, audits, site visits and surveys, some of which are non-routine. In addition, the Company believes that there has been, and will continue to be, an increase in governmental investigations of long-term care providers, particularly in the area of Medicare and Medicaid false claims, as well as an increase in enforcement actions resulting from these investigations. Adverse determinations in legal proceedings or governmental investigations against or involving the Company or its tenants, whether currently asserted or arising in the future, could have a material adverse effect on the Company's business, results of operations and financial condition.

Professional and General Liability Claims

On February 16, 2024, the Regional's insurance carrier was able to reach a settlement with the family of Mable Polite within policy limits.

As of March 31, 2024, the Company has been named in three lawsuits pertaining to facilities it transitioned operations to other entities as a lessor in 2015. Even though the residents were not part of our dates of service as the operator of the buildings, the lawsuits claim the Company knew the new operator had a history of providing poor patient care and therefore should not have leased or sold the premises to the new operator. We do not believe there is any basis in law or fact to hold the previous operator/ lessor liable, and as a result management has concluded that the likelihood of a material adverse result is should be

remote. Despite our confidence in our legal position, we have to acknowledge that jurors sometimes follow sympathy rather than the law. One of the three cases is scheduled to go to trial in November 2024.

NOTE 12. SEGMENT RESULTS

The Company has two primary reporting segments: (i) Real Estate Services, which consists of the leasing and subleasing of long-term care and senior living facilities to third-party tenants, including the Company's management of three facilities on behalf of third-party owners which ended on December 31, 2023; and (ii) Healthcare Services, which consists of the operation of the Meadowood and Glenvue facilities.

The Company reports segment information based on the "management approach" defined in ASC 280, Segment Reporting. The management approach designates the internal reporting used by management for making decisions and assessing performance as the source of our reportable segments.

The table below presents the results of operations for our reporting segments for the periods presented.


	Three Months Ended March 31,									Three Months Ended March 31,
	2024			2024			2024			2023			2023			2023
(Amounts in 000’s)	Real Estate Services			Healthcare Services			Total			Real Estate Services			Healthcare Services			Total
Revenues:
Patient care revenues	$	—		$	2,309		$	2,309		$	—		$	1,916		$	1,916
Rental revenues		1,818			—			1,818			1,708			—			1,708
Management fees		—			—			—			278			—			278
Other revenues		—			—			—			4			—			4
Total revenues		1,818			2,309			4,127			1,990			1,916			3,906
Expenses:
Patient care expense		—			2,101			2,101			—			2,321			2,321
Facility rent expense		149			-			149			149			-			149
Cost of management fees		—			—			—			141			—			141
Depreciation and amortization		386			125			511			387			123			510
General and administrative expense		1,266			366			1,632			1,181			350			1,531
Doubtful accounts expense		—			28			28			—			16			16
Total expenses		1,801			2,620			4,421			1,858			2,810			4,668
Income (loss) from operations		17			(311	)		(294	)		132			(894	)		(762	)
Other expense:
Interest expense, net		570			104			674			571			109			680
Other (income) expense, net		(22	)		16			(6	)		332			218			550
Total other expense, net		548			120			668			903			327			1,230
Net loss	$	(531	)	$	(431	)	$	(962	)	$	(771	)	$	(1,221	)	$	(1,992	)

Total assets for the Real Estate Services segment and Healthcare Services segment were $48.0 million and $13.2 million, respectively, as of March 31, 2024.

Total assets for the Real Estate Services segment and Healthcare Services segment were $48.5 million and $13.7 million, respectively, as of December 31, 2023.

NOTE 13. SUBSEQUENT EVENTS

The Company has evaluated all subsequent events through the date the consolidated financial statements were issued and filed with the SEC.

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations

Forward Looking Statements

This Quarterly Report and certain information incorporated herein by reference contain forward-looking statements and information within the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). This information includes assumptions made by, and information currently available to management, including statements regarding future economic performance and financial condition, liquidity and capital resources, and management's plans and objectives. In addition, certain statements included in this Quarterly Report, in the Company's future filings with the SEC, in press releases, and in oral and written statements made by us or with our approval, which are not statements of historical fact, are forward-looking statements. Words such as "may," "could," "should," "would," "believe," "expect," "anticipate," "estimate," "intend," "seek," "plan," "project," "continue," "predict," "will," and other words or expressions of similar meaning are intended by us to identify forward-looking statements, although not all forward-looking statements contain these identifying words. Forward-looking statements are based on the Company's current expectations about future events or results and information that is currently available to us, involve assumptions, risks, and uncertainties, and speak only as of the date on which such statements are made.

All forward-looking statements are subject to the risks and uncertainties inherent in predicting the future. The Company's actual results may differ materially from those projected, stated or implied in these forward-looking statements as a result of many factors, including the Company's critical accounting policies and risks and uncertainties related to, but not limited to, the operating results of the Company's tenants, the overall industry environment, the Company's financial condition, and the impact of the COVID-19 pandemic on the Company's business. These and other risks and uncertainties are described in more detail in the Annual Report and in Part II, Item 1A "Risk Factors" of this Quarterly Report, as well as other reports that the Company files with the SEC.

Forward-looking statements speak only as of the date they are made and should not be relied upon as representing the Company's views as of any subsequent date. The Company undertakes no obligation to update or revise such statements to reflect new circumstances or unanticipated events as they occur, except as required by applicable laws, and you are urged to review and consider disclosures that the Company makes in this Quarterly Report and other reports that the Company files with the SEC that discuss factors germane to the Company's business.

Overview

Regional Health Properties, Inc., a Georgia corporation is a self-managed real estate investment company that invests primarily in real estate purposed for long-term care and senior housing. We operate through two reportable segments: Real Estate and Healthcare Services. Our Real Estate segment consists of real estate investments in skilled nursing and senior housing facilities. We fund our real estate investments primarily through: (1) operational cash flow, (2) mortgages, and (3) sale of equity securities. Our Healthcare Services segment is comprised of an entity set up to operate our facilities as needed under our Portfolio Stabilization measures.

While the Company is a self-managed real estate investment company, the Company, when business conditions require, may undertake portfolio stabilization measures, such as operating a previously leased facility. For more information see " Recent Developments" below.

Real Estate Portfolio

As of March 31, 2024, we had investments of approximately $67.2 million in eleven health care real estate properties and one leased property. We currently own eleven properties, consisting of nine skilled nursing facilities and two multi-service facilities. Nine facilities are pursuant to triple-net leases, one is managed by an external manager, and one is managed internally by the Company. The Company has one leased facility that is subleased pursuant to a triple-net lease.

Skilled nursing facilities. SNFs provide services that include daily nursing, therapeutic rehabilitation, social services, activities, housekeeping, nutrition, medication management and administrative services for individuals requiring certain assistance for activities in daily living. A typical skilled nursing facility includes mostly one and two bed units, each equipped with a private or shared bathroom and community dining facilities.

Multi-Service Campuses. Multi-service campuses generally include some combination of co-located skilled nursing, independent living, assisted living and/or memory care units all housed at a single location and operated as a continuum of care.

We also refer to continuing care retirement communities as multi-service campuses. These facilities are often marketed as an opportunity for residents to “age in place,” and tend to attract couples where the individuals may require or benefit from differing levels of care.

Portfolio

The following table provides summary information regarding the number of facilities and related licensed beds/units as of March 31, 2024:


Location	Skilled Nursing Facilities		Multi Service Properties		Total Properties
Alabama(a)		1		1		2
Georgia		3	-			3
North Carolina		1	-			1
Ohio(b)		2		1		3
South Carolina		2	-			2
		9		2		11

Location	Skilled Nursing Beds/Units		Multi Service Beds/Units		Total Beds/Units
Alabama(a)		124		90		214
Georgia		395	-			395
North Carolina		106	-			106
Ohio(b)		112		194		306
South Carolina		180	-			180
		917		284		1,201

Location	Skilled Nursing Investment		Multi Service Investment		Total Investment
Alabama(a)	$	9,613,199	$	4,989,912	$	14,603,111
Georgia		20,884,723	-			20,884,723
North Carolina		7,224,953	-			7,224,953
Ohio(b)		4,079,965		10,714,214		14,794,179
South Carolina		9,733,024	-			9,733,024
	$	51,535,863	$	15,704,126	$	67,239,990

    (a) Meadowood Retirement Village offers assisted living, memory care, and independent living and is therefore considered a multi-service campus.

   

    (b) Eaglewood Village offers assisted living and Eaglewood Care Center offers skilled nursing. Both properties are co-located and are therefore considered a multi-service campus.

   

The following table provides summary information regarding the number of facilities and related licensed beds/units by operator affiliation as of March 31, 2024:


Operator Affiliation	Number of Facilities (1)		Beds / Units
C.R. Management		2		233
Aspire Regional Partners		3		306
Oak Hollow Health Care Management		2		180
Beacon Health Management		1		126
Vero Health Management		1		106
Cavalier Senior Living		1		90
RHP Operations		1		160
Subtotal		11		1,201

(1)

Represents the number of facilities leased or subleased to separate tenants, of which each tenant is an affiliate of the entity named in the table above.

For a more discussion of the above information, see Note 6 - Leases to the consolidated financial statements included in Part I, Item 1 herein. Additionally, see "Portfolio of Healthcare Investments" included in Part I, Item 1 "Business" in the Annual Report.

Portfolio Occupancy Rates

The following table provides summary information regarding our portfolio facility-level occupancy rates for the periods shown:


	For the Twelve Months Ended
Operating Metric	June 30, 2023	September 30, 2023	December 31, 2023	March 31, 2024
Occupancy (%)	66.2%	66.2%	65.7%	65.7%

Lease Expiration

The following table provides summary information regarding our lease expirations for the years shown as of December 31,:


		Licensed Beds					Annual Lease Revenue
	Number of Facilities	Count		Percent			Amount ($) '000's (1)		Percent (%)
2024	1	126			9.8	%		516		7.5	%
2025	0	0			0.0	%		-		0.0	%
2026	0	0			0.0	%		-		0.0	%
2027	0	0			0.0	%		-		0.0	%
2028	5	405			31.6	%		2,761		39.9	%
2029	1	106			8.3	%		538		7.8	%
2030	2	233			18.2	%		2,103		30.4	%
Thereafter	2	413			32.2	%		995		14.4	%
Total	11		1,283		100.0	%		6,913		100.0	%

(1)

Straight-line rent.

Results of Operations

The following table sets forth, for the periods indicated, an unaudited statement of operations items and the amounts and percentages of change of these items. The results of operations for any particular period are not necessarily indicative of results for any future period. The following data should be read in conjunction with our consolidated financial statements and the notes thereto, which are included herein.


	Three Months Ended March 31,
(Amounts in 000’s)	2024			2023			Percent Change
Revenues:
Patient care revenues	$	2,309		$	1,916			20.5	%
Rental revenues		1,818			1,708			6.4	%
Management fees		—			278			(100.0	)%
Other revenues		—			4			(100.0	)%
Total revenues		4,127			3,906			5.7	%
Expenses:
Patient care expense		2,101			2,321			(9.5	)%
Facility rent expense		149			149			—
Cost of management fees		—			141			(100.0	)%
Depreciation and amortization		511			510			0.2	%
General and administrative expense		1,632			1,531			6.6	%
Doubtful accounts expense		28			16			75.0	%
Total expenses		4,421			4,668			(5.3	)%
Loss from operations		(294	)		(762	)		(61.4	)%
Other expense:
Interest expense, net		674			680			(0.9	)%
Other (income) expense, net		(6	)		550			(101.1	)%
Total other expense, net		668			1,230			(45.7	)%
Net loss	$	(962	)	$	(1,992	)		(51.7	)%

Three Months Ended March 31, 2024 and 2023

Patient care revenues—Patient care revenues for the Healthcare Services segment, as a result of the Company operating the Meadowood and the Glenvue Facilities, were $2.3 million for the three months ended March 31, 2024, compared to $1.9 million for the same period in 2023. The 20.5% increase is primarily due to the change in the Medicaid reimbursement rate paid for the Glenvue facility.

Rental revenues—Rental revenue for our Real Estate Services segment increased by approximately $0.1 million to $1.8 million for the three months ended March 31, 2024, compared with $1.7 million for the same period in 2023. The 6.4% increase is primarily due to the extension of the Greenfield lease and the increase in rent from the Southland facility.

Patient care expense—Patient care expense was $2.1 million for the three months ended March 31, 2024 compared with $2.3 million for the same period in 2023. The current period expense decrease of $0.2 million was primarily due to cost containment at the Glenvue and Meadowood facilities.

Facility rent expense—Facility rent was $0.1 million for the three months ended March 31, 2024, which was the same amount for the three months ended March 31, 2023.

Depreciation and amortization—Depreciation and amortization was $0.5 million for the three months ended March 31, 2024, compared to $0.5 million for the same period in 2023.

General and administrative expenses—General and administrative expenses were $1.6 million for the three months ended March 31, 2024 compared with $1.5 million for the same period in 2023. The difference is primarily from the 2023 allocation of costs from general and administrative expense to cost of management fees.


	Three Months Ended March 31,
(Amounts in 000’s)	2024		2023		Percent Change
General and administrative expenses:
Real Estate Services	$	1,266	$	1,181		7.2	%
Healthcare Services		366		350		4.6	%
Total	$	1,632	$	1,531		6.6	%

Doubtful accounts expense—Doubtful accounts expense primarily represents reserves taken against patient Accounts Receivable at the Glenvue facility for the three months ended March 31, 2024 and for the same period in 2023.

Other (income) expense, net—Other expense, net decreased by approximately $0.6 million, to $0.0 million for the three months ended March 31, 2024, compared to $0.6 million for the three months ended March 31, 2023. The prior year expenses were related to professional and legal services incurred for the preferred exchange.

Liquidity and Capital Resources

Overview

Management anticipates access to several sources of liquidity, including cash on hand, cash flows from operations, and debt refinancing during the twelve months following the date of this filing. At March 31, 2024, the Company had $0.8 million in unrestricted cash and 1.5 million of net accounts receivable, mainly consisting of patient accounts receivable and rent receivables.

During the three months ended March 31, 2024, the Company's net cash provided by operating activities was $0.6 million mainly due to the timing of accounts payable and accrued expense payments. Management anticipates collecting a portion of the past due rent after the filing date and is currently negotiating various methods to collect the remaining unpaid rent and notes receivable.

As of March 31, 2024, Regional recorded an estimated allowance of $2.1 million against a gross accounts receivable of $3.5 million.

As of March 31, 2024, the Company had $50.0 million in indebtedness, net of 1.0 million deferred financing, and unamortized discounts. The Company anticipates net principal repayments of approximately $1.7 million during the next twelve-month period, approximately $1.5 million of routine debt service amortization and a $0.1 million payment of bond debt.

Series A Preferred Stock Exchange Offer

The Company is current with all of its debt and other financial obligations. In early 2020, the Company began ongoing efforts to investigate alternatives to retire or refinance our outstanding Series A Preferred Stock through privately negotiated transactions, open market repurchases, redemptions, exchange offers, tender offers, or otherwise.

Series A Preferred Dividend Suspension

Debt Covenant Compliance

Evaluation of the Company's Ability to Continue as a Going Concern

The Company concludes that it is probable that the Company will be able to meet its obligations arising within one year of the date of issuance of these consolidated financial statements within the parameters set forth in the accounting guidance.

For additional information regarding the Company's liquidity, see Note 2 – Liquidity and Note 8 – Notes Payable and other debt, to the consolidated financial statements included in Part I, Item 1 herein.

Cash Flows

The following table presents selected data from our consolidated statements of cash flows for the periods presented:


	Three Months Ended March 31,
(Amounts in 000’s)	2024			2023
Net cash provided by operating activities	$	597		$	2,597
Net cash used in investing activities		(55	)		(2	)
Net cash used in financing activities		(751	)		(685	)
Net change in cash and restricted cash		(209	)		1,910
Cash and restricted cash at beginning of period		4,184			3,909
Cash and restricted cash, ending	$	3,975		$	5,819

Three Months Ended March 31, 2024

Net cash provided by operating activities—was approximately $0.6 million. The positive cash flow from operating activities was mainly due to the timing of working capital accounts.

Net cash used in investing activities—was approximately $55.0 thousand. This capital expenditure was primarily for leasehold improvements.

Net cash used in financing activities—was approximately $0.8 million. The cash was used to make routine payments totaling $0.4 million for our Senior debt obligations, $0.4 million for other debt.

Three Months Ended March 31, 2023

Net cash provided by operating activities—was approximately $2.6 million. The positive cash flow from operating activities were largely due to collection of the ERTC.

Net cash used in investing activities—was approximately $2.0 thousand. This capital expenditure was for computer hardware, software.

Net cash used in financing activities—was approximately $0.7 million. The cash was used to make routine payments totaling $0.3 million for our Senior debt obligations, $0.4 million for other debt.

Off-Balance Sheet Arrangements

Guarantee

The Company subleased five facilities located in Ohio to the Aspire Sublessees, formerly affiliated with MSTC Development Inc., pursuant to the Aspire Subleases, whereby the Aspire Sublessees took possession of, and commenced operating, the Aspire Facilities as subtenant. The Company agreed to indemnify Aspire against any and all liabilities imposed on them as arising from the former operator, capped at $8.0 million. The Company has assessed the fair value of the indemnity agreements as not material to the financial statements at March 31, 2024. For further information see Note 6 – Leases, to the consolidated financial statements included in Part I, Item 1 herein and also and Note 6 – Leases included in Part II, Item 8 of the Annual Report.

Critical Accounting Policies

We prepare our financial statements in accordance with GAAP for interim financial information and with the instructions to Form 10-Q and Rule 8-03 of Article 8 of Regulation S-X. The preparation of these financial statements requires us to make estimates and judgments that affect the reported amount of assets, liabilities, revenues and expenses. On an ongoing basis, we review our judgments and estimates, including, but not limited to, those related to doubtful accounts, income taxes, stock compensation, intangible assets and loss contingencies. We base our estimates on historical experience, business knowledge and on various other assumptions that we believe to be reasonable under the circumstances at the time. Actual results may vary from our estimates. These estimates are evaluated by management and revised as circumstances change.

For a discussion of our critical accounting policies, see Note 1 – Organization and Significant Accounting Policies to the consolidated financial statements included in Part I, Item 1 herein.

Item 3. Quantitative and Qualitative Disclosures About Market Risk.

Disclosure in response to Item 3 of Form 10-Q is not required to be provided by smaller reporting companies.

Item 4. Controls and Procedures.

Evaluation of Disclosure Controls and Procedures

We maintain disclosure controls and procedures that are designed to ensure that information required to be disclosed in our reports filed pursuant to the Exchange Act is recorded, processed, summarized, and reported within the time periods specified in the rules and forms of the SEC and that such information is accumulated and communicated to our management, including our Chief Executive Officer (principal executive officer) and Senior Vice President (principal financial officer), as appropriate, to allow for timely decisions regarding required disclosure. In designing and evaluating the disclosure controls and procedures, management recognizes that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives, and management is required to apply its judgment in evaluating the cost-benefit relationship of possible controls and procedures.

Our management, with the participation of our Chief Executive Officer and Senior Vice President, has evaluated the effectiveness of our disclosure controls and procedures (as such term is defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act) as of the end of the period covered by this Quarterly Report (the "Evaluation Date"). Based on such evaluation, our management has concluded that, as of the Evaluation Date, our disclosure controls and procedures are effective.

Changes in Internal Control Over Financial Reporting

There has been no change in the Company's internal controls over financial reporting that occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect, the Company's internal control over financial reporting.

Part II. Other Information

Item 1. Legal Proceedings.

The Company is a defendant in various legal actions and administrative proceedings arising in the ordinary course of business, including claims that the services the Company provided during the time it operated skilled nursing facilities resulted in injury or death to patients. Although the Company settles cases from time to time when settlement can be achieved on a reasonable basis, the Company vigorously defends any matter in which it believes the claims lack merit and the Company has a reasonable chance to prevail at trial or in arbitration. Litigation is inherently unpredictable. There is no assurance that the outcomes of these matters will not have a material adverse effect on the Company's financial condition. Although arising in the ordinary course of the Company's business, certain of these matters are described in "Note 11 - Commitments and Contingencies".

Item 1A. Risk Factors.

For a detailed description of certain risk factors that could affect our business, operations and financial condition, see Part I, Item 1A., Risk Factors, included in the Annual Report, as supplemented and modified by the risk factors set forth below in this Item 1A. The risk factors described in the Annual Report and this Quarterly Report (collectively, the “Risk Factors”) do not describe all risks applicable to our business, and we intend it only as a summary of certain material factors. The Risk Factors should be considered in connection with evaluating the forward-looking statements contained in this Quarterly Report because the Risk Factors could cause the actual results and conditions to differ materially from those projected in forward-looking statements. If any of the risks actually occur, our business, financial condition, or results of operations could be negatively affected. In that case, the trading price of the common stock, no par value per share (the "common stock"), the Series A Redeemable Preferred Shares, no par value per share (the "Series A Preferred Stock"), and the 12.5% Series B Cumulative Redeemable Preferred Shares, no par value per share (the "Series B Preferred Stock"), could decline.

There are no material changes to the risk factors set forth in Part I, Item 1A, in our Annual Report on Form 10-K for the year ended December 31, 2023 filed with the SEC on April 1, 2024.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.

None.

Item 3. Defaults upon Senior Securities.

None.

Item 4. Mine Safety Disclosures.

Not applicable.

Item 5. Other Information.

NYSE American Listing

On May 10, 2023, we received a letter from the NYSE American notifying us that we were not in compliance with Section 1003(a)(ii) of the NYSE American Company Guide. As a result, we became subject to the procedures and requirements of Section 1009 of the NYSE American Company Guide. On June 9, 2023, we submitted a plan to the NYSE American advising of actions we have taken or will take to regain compliance with the continued listing standards by November 10, 2024. On June 29, 2023, we received a letter from the NYSE American notifying us that we were not in compliance with Section 1003(a)(i) of the NYSE Company Guide. On August 1, 2023, we received a letter (the “Acceptance Letter”) from the NYSE American notifying us that the compliance plan has been accepted. The NYSE American has granted the Company a plan period through November 10, 2024 to regain compliance with the continued listing standards. We have been advised that if we do not make progress consistent with the plan or we fail to regain compliance by the deadline, then the NYSE American may commence delisting procedures.

Regional Health’s common stock and Series A Preferred Stock will continue to be listed on the NYSE American while it attempts to regain compliance with the continued listing standard noted, subject to Regional Health’s compliance with other continued listing requirements. The common stock and Series A Preferred Stock will continue to trade under the symbols “RHE” and “RHE-PA,” respectively, but will each have an added designation of “.BC” to indicate that Regional Health is not in compliance with the NYSE American’s continued listing standards.

Trading Arrangement

During the first quarter of 2024, none of the Company’s directors or officers (as defined in Rule 16a-1(f) of the Exchange Act) adopted or terminated a Rule 10b5-1 trading arrangement or a non-Rule 10b5-1 trading arrangement (each as defined in Item 408(c) of Regulation S-K of the Securities Act of 1933, as amended).

Item 6. Exhibits.

The agreements included as exhibits to this Quarterly Report are included to provide information regarding the terms of these agreements and are not intended to provide any other factual or disclosure information about the Company, its business or the other parties to these agreements. These agreements may contain representations and warranties by each of the parties to the applicable agreement. These representations and warranties have been made solely for the benefit of the other parties to the applicable agreement and:

•

should not in all instances be treated as categorical statements of fact, but rather as a way of allocating the risk to one of the parties if those statements prove to be inaccurate;

•

have been qualified by disclosures that were made to the other party in connection with the negotiation of the applicable agreement, which disclosures are not necessarily reflected in the agreement;

•

may apply standards of materiality in a way that is different from what may be viewed as material to investors; and

•

were made only as of the date of the applicable agreement or such other date or dates as may be specified in the agreement and are subject to more recent developments.

Accordingly, these representations and warranties may not describe the actual state of affairs as of the date they were made or at any other time, and should not be relied upon by investors.

EXHIBIT INDEX


Exhibit No.	Description	Method of Filing
3.1	Amended and Restated Articles of Incorporation of Regional Health Properties, Inc., effective July 3, 2023	Incorporated by reference to Exhibit 3.1 of the Registrant's Current Report on Form 8-K filed on July 6, 2023

3.2	Amended and Restated Bylaws of Regional Health Properties, Inc., effective September 21, 2017	Incorporated by reference to Exhibit 3.3 of the Registrant’s Current Report on Form 8-K12B filed on October 10, 2017


3.2(a)	Amendment No. 1 to Amended and Restated Bylaws of Regional Health Properties, Inc., effective June 27, 2023	Incorporated by reference to Exhibit 3.6 of the Registrant’s Post-Effective Amendment No. 1 to Registration Statement on Form S-4 (Reg. No. 333-269750) filed on June 28, 2023

31.1	Certification of Principal Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act	Filed herewith
31.1		Filed herewith
31.2	Certification of Principal Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act	Filed herewith
31.2		Filed herewith
32.1	Certification of Principal Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act	Filed herewith
32.1		Filed herewith
32.2	Certification of Principal Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act	Filed herewith
32.2		Filed herewith
101.INS	Inline XBRL Instance Document – the instance document does not appear in the Interactive Data File because XBRL tags are embedded within the Inline XBRL document.	Filed herewith
101.SCH	Inline XBRL Taxonomy Extension Schema	Filed herewith
104	Cover Page Interactive Data File (embedded within the Inline XBRL document)

* Identifies a management contract or compensatory plan or arrangement.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused the report to be signed on its behalf by the undersigned, thereunto duly authorized.


		REGIONAL HEALTH PROPERTIES, INC.
		(Registrant)

Date:	May 15, 2024	/s/ Brent Morrison
		Brent Morrison
		Chairman, Chief Executive Officer and Director (Principal Executive Officer)

Date:	May 15, 2024	/s/ Paul O'Sullivan
		Paul O'Sullivan
		Senior Vice President (Principal Financial Officer)

Exhibit 31.1

CERTIFICATIONS

I, Brent Morrison, certify that:

I have reviewed this quarterly report on Form 10-Q of Regional Health Properties, Inc.;

Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.


May 15, 2024	By	/s/ Brent Morrison
		Chief Executive Officer and President

Exhibit 31.2

CERTIFICATIONS

I, Paul O’Sullivan, certify that:

I have reviewed this quarterly report on Form 10-Q of Regional Health Properties, Inc.;

Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.


May 15, 2024	By	/s/ Paul O’ Sullivan
		Chief Principal Officer and Senior Vice President

Exhibit 32.1

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

BY SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Regional Health Properties, Inc. (the “Company”) on Form 10-Q for the quarter ended March 31, 2024, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Brent Morrison, Chief Executive Officer and President of the Company, certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to my knowledge:

1. The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

    May 15, 2024

    By:

    /s/ Brent Morrison

     
    Brent Morrison
Chief Executive Officer and President

Exhibit 32.2

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

BY SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Regional Health Properties, Inc. (the “Company”) on Form 10-Q for the quarter ended March 31, 2024, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Paul O’Sullivan, Asset Manager of the Company, certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to my knowledge:

1. The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Chi

    May 15, 2024

    By:

    /s/ Paul O’Sullivan

     
    Paul O’Sullivan
Chief Principal Officer and Senior Vice President

Document and Entity Information - shares	3 Months Ended
Document and Entity Information - shares	Mar. 31, 2024	May 13, 2024
Document Information [Line Items]
Entity Registrant Name	Regional Health Properties, Inc.
Entity Central Index Key	0001004724
Document Type	10-Q
Document Period End Date	Mar. 31, 2024
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Filer Category	Non-accelerated Filer
Entity Common Stock, Shares Outstanding		1,839,028
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q1
Entity Current Reporting Status	Yes
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity File Number	001-33135
Entity Tax Identification Number	81-5166048
Entity Address, Address Line One	1050 Crown Pointe Parkway
Entity Address, Address Line Two	Suite 720
Entity Address, City or Town	Atlanta
Entity Address, State or Province	GA
Entity Address, Postal Zip Code	30338
City Area Code	678
Local Phone Number	869-5116
Entity Incorporation, State or Country Code	GA
Entity Interactive Data Current	Yes
Document Quarterly Report	true
Document Transition Report	false
Common Stock
Document Information [Line Items]
Trading Symbol	RHE
Security Exchange Name	NYSEAMER
Title of 12(b) Security	Common Stock, no par value
10.875% Series A Cumulative Redeemable Preferred Stock
Document Information [Line Items]
Trading Symbol	RHE-PA
Security Exchange Name	NYSEAMER
Title of 12(b) Security	Series A Redeemable Preferred Stock, no par value

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
ASSETS
Property and equipment, net	$ 44,885	$ 45,337
Cash	752	953
Restricted cash	3,223	3,231
Accounts receivable, net of allowances of $2,056 and $2,040	1,464	1,403
Prepaid expenses and other	410	609
Notes receivable	1,034	1,044
Intangible assets - bed licenses	2,471	2,471
Intangible assets - lease rights, net	83	87
Right-of-use operating lease assets	2,455	2,556
Goodwill	1,585	1,585
Lease deposits and other deposits	4	4
Straight-line rent receivable	2,859	2,901
Total assets	61,225	62,181
LIABILITIES AND EQUITY (DEFICIT)
Senior debt, net	43,500	43,855
Bonds, net	5,993	5,991
Other debt, net	516	889
Accounts payable	3,106	2,493
Accrued expenses	4,240	4,060
Operating lease obligation	2,807	2,917
Other liabilities	1,797	1,791
Total liabilities	61,959	61,996
Stockholders' equity (deficit):
Common stock and additional paid-in capital, no par value; 55,000 shares authorized; 1,850 shares issued and 1,839 shares outstanding at March 31, 2024 and December 31, 2023	63,102	63,059
Preferred stock, no par value; 5,000 shares authorized (including amounts authorized for Series A and Series B); shares issued and outstanding designated as follows:
Accumulated deficit	(82,864)	(81,902)
Total stockholders' equity (deficit)	(734)	185
Total liabilities and stockholders' equity (deficit)	61,225	62,181
Series A Preferred Stock
Preferred stock, no par value; 5,000 shares authorized (including amounts authorized for Series A and Series B); shares issued and outstanding designated as follows:
Preferred stock	426	426
Series B Preferred Stock
Preferred stock, no par value; 5,000 shares authorized (including amounts authorized for Series A and Series B); shares issued and outstanding designated as follows:
Preferred stock	$ 18,602	$ 18,602

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Accounts receivable, allowances	$ 2,056	$ 2,040
Common stock and additional paid-in capital, par value	$ 0	$ 0
Common stock and additional paid-in capital, shares authorized	55,000,000	55,000,000
Common stock and additional paid-in capital, shares issued	1,850,000	1,850,000
Common stock and additional paid-in capital, shares outstanding	1,839,000	1,839,000
Series A and B Preferred Stock
Preferred stock, par value	$ 0	$ 0
Preferred stock, shares authorized	5,000,000	5,000,000
Series A Preferred Stock
Preferred stock, par value	$ 0	$ 0
Preferred stock, shares authorized	560,000	560,000
Preferred stock, shares issued	560,000	560,000
Preferred stock, shares outstanding	560,000	560,000
Preferred stock, redemption amount	$ 426	$ 426
Series B Preferred Stock
Preferred stock, par value	$ 0	$ 0
Preferred stock, shares authorized	2,812,000	2,812,000
Preferred stock, shares issued	2,252,000	2,252,000
Preferred stock, shares outstanding	2,252,000	2,252,000
Preferred stock, redemption amount	$ 18,602	$ 18,602

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Revenues:
Total revenues	$ 4,127	$ 3,906
Expenses:
Patient care expense	2,101	2,321
Facility rent expense	149	149
Cost of management fees	0	141
Depreciation and amortization	511	510
General and administrative expense	1,632	1,531
Doubtful accounts expense	28	16
Total expenses	4,421	4,668
Loss from operations	(294)	(762)
Other expense:
Interest expense, net	674	680
Other (income) expense, net	(6)	550
Total other expense, net	668	1,230
Net Loss	(962)	(1,992)
Preferred stock dividends - undeclared	0	(2,249)
Net loss attributable to Regional Health Properties, Inc. common stockholders	$ (962)	$ (4,241)
Net loss per share of common stock attributable to Regional Health Properties, Inc., Basic	$ (0.52)	$ (2.28)
Net loss per share of common stock attributable to Regional Health Properties, Inc., Diluted	$ (0.52)	$ (2.28)
Weighted average shares of common stock outstanding:
Basic (in shares)	1,839	1,862
Diluted (in shares)	1,839	1,862
Patient Care Revenues
Revenues:
Patient care, management fees and other revenues	$ 2,309	$ 1,916
Total revenues	2,309	1,916
Rental Revenue
Revenues:
Patient care, management fees and other revenues	1,818	1,708
Management Fees
Revenues:
Patient care, management fees and other revenues	0	278
Total revenues		278
Other Revenues
Revenues:
Patient care, management fees and other revenues	$ 0	4
Total revenues		$ 4

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (DEFICIT) - USD ($) $ in Thousands	Total	Series A Preferred Stock	Series B Preferred Stock	Shares of Common Stock	Shares of Preferred Stock Series A Preferred Stock	Shares of Preferred Stock Series B Preferred Stock	Treasury Stock Preferred and Common Stock	Common Stock and Additional Paid-in Capital	Preferred Stock Series A Preferred Stock	Preferred Stock Series B Preferred Stock	Accumulated Deficit
Balance at Dec. 31, 2022	$ 3,716							$ 62,702	$ 62,423		$ (121,409)
Balance (in shares) at Dec. 31, 2022				1,784,000			(9,000)
Balance (in shares) at Dec. 31, 2022					2,812,000
Restricted stock issuance (in shares)				99,000
Stock-based compensation	81							81
Net Loss	(1,992)										(1,992)
Balance at Mar. 31, 2023	1,805							62,783	62,423		(123,401)
Balance (in shares) at Mar. 31, 2023				1,883,000			(9,000)
Balance (in shares) at Mar. 31, 2023					2,812,000
Balance at Dec. 31, 2023	$ 185					$ 2,252		63,059	426	$ 18,602	(81,902)
Balance (in shares) at Dec. 31, 2023	1,850,000			1,839,000			(11,000)
Balance (in shares) at Dec. 31, 2023		560,000	2,252,000		560,000
Stock-based compensation	$ 43							43
Net Loss	(962)										(962)
Balance at Mar. 31, 2024	$ (734)							$ 63,102	$ 426	$ 18,602	$ (82,864)
Balance (in shares) at Mar. 31, 2024	1,850,000			1,839,000			(11,000)
Balance (in shares) at Mar. 31, 2024		560,000	2,252,000		560,000	2,252,000

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (DEFICIT) (Parenthetical) - $ / shares	Mar. 31, 2024	Mar. 31, 2023
Series A Preferred Stock
Preferred stock, par value	$ 0
Series A Preferred Stock \| Preferred Stock
Preferred stock, par value	0	$ 0
Series B Preferred Stock
Preferred stock, par value	0
Series B Preferred Stock \| Preferred Stock
Preferred stock, par value	$ 0	$ 0

CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Cash flows from operating activities:
Net loss	$ (962)	$ (1,992)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization	511	510
Stock-based compensation expense	43	81
Rent expense less than cash paid	(9)	(4)
Rent revenue in excess of cash received	121	26
Amortization of deferred financing costs, debt discounts and premiums	25	19
Bad debt expense	28	16
Changes in operating assets and liabilities:
Accounts receivable	(168)	3,357
Prepaid expenses and other assets	209	546
Accounts payable and accrued expenses	793	(107)
Other liabilities	6	145
Net cash provided by operating activities	597	2,597
Cash flows from investing activities:
Purchase of property and equipment	(55)	(2)
Net cash used in investing activities	(55)	(2)
Cash flows from financing activities:
Payment of senior debt	(378)	(322)
Payment of other debt	(373)	(363)
Net cash used in financing activities	(751)	(685)
Net change in cash and restricted cash	(209)	1,910
Cash and restricted cash, beginning	4,184	3,909
Cash and restricted cash, ending	3,975	5,819
Supplemental disclosure of cash flow information:
Cash interest paid	$ 677	$ 650

Pay vs Performance Disclosure - USD ($) $ in Thousands	3 Months Ended
Pay vs Performance Disclosure - USD ($) $ in Thousands	Mar. 31, 2024	Mar. 31, 2023
Pay vs Performance Disclosure
Net Income (Loss)	$ (962)	$ (1,992)

Insider Trading Arrangements	3 Months Ended
Insider Trading Arrangements	Mar. 31, 2024
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false

Organization and Significant Accounting Policies

3 Months Ended

Mar. 31, 2024

Accounting Policies [Abstract]

Organization and Significant Accounting Policies

NOTE 1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES

Description of Business

Basis of Presentation

Use of Estimates

Reclassifications

Revenue Recognition and Allowances

on the nature of the services provided. Estimated uncollectible amounts due from patients are generally considered implicit price concessions that are a direct reduction to net patient care revenues.

The following table presents the Company's Accounts receivable, net of allowance for the periods presented:


(Amounts in 000’s)	March 31, 2024			December 31, 2023
Gross receivables
Real Estate Services	$	656		$	693
Healthcare Services		2,864			2,750
Subtotal		3,520			3,443
Allowance
Real Estate Services		—			—
Healthcare Services		(2,056	)		(2,040	)
Subtotal		(2,056	)		(2,040	)
Accounts receivable, net of allowance	$	1,464		$	1,403

Prepaid Expenses and Other

Accounts Payable

The following table presents the Company's Accounts payable for the periods presented:


(Amounts in 000’s)	March 31, 2024		December 31, 2023
Accounts payable
Real Estate Services	$	1,410	$	751
Healthcare Services		1,696		1,742
Total Accounts payable	$	3,106	$	2,493

Other Liabilities

Other Expense, net

The Company had retained a law firm to evaluate and assist with opportunities to improve the Company's capital structure. See Note 2 – Series A Preferred Exchange Offer.

Leases and Leasehold Improvements

Insurance

Net Loss Per Share

Securities outstanding that were excluded from the computation, because they would have been anti-dilutive were as follows:


	March 31,
(Share amounts in 000’s)	2024		2023
Stock options		33		13
Warrants - employee		32		34
Warrants - non employee		—		1
Total anti-dilutive securities		65		48

The weighted average contractual terms in years for these securities as of March 31, 2024, with no intrinsic value, are 6.6 years for the stock options and 0.8 years for the warrants.

Recently Adopted Accounting Pronouncements

New Accounting Pronouncements Issued But Not Yet Effective

In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures,

No other new accounting pronouncement issued or effective has had, or is expected to have, a material impact on the Company's financial statements.

Liquidity

3 Months Ended

Mar. 31, 2024

Liquidity [Abstract]

Liquidity

NOTE 2. LIQUIDITY

Overview

Series A Preferred Stock Exchange Offer ("Exchange Offer")

The Company is current with all of its debt and other financial obligations.

Series A Preferred Dividend Suspension

Debt

Debt Covenant Compliance

Evaluation of the Company's Ability to Continue as a Going Concern

Cash and Restricted Cash

3 Months Ended

Mar. 31, 2024

Restricted Cash And Investments [Abstract]

Cash and Restricted Cash

NOTE 3. CASH AND RESTRICTED CASH

The following presents the Company's cash and restricted cash:


(Amounts in 000’s)	March 31, 2024		December 31, 2023
Cash	$	752	$	953
Restricted cash:
Cash collateral		159		159
HUD and other replacement reserves		2,126		2,125
Escrow deposits		621		630
Restricted investments for debt obligations		317		317
Total restricted cash		3,223		3,231
Total cash and restricted cash	$	3,975	$	4,184

Property and Equipment

3 Months Ended

Mar. 31, 2024

Property Plant And Equipment [Abstract]

Property and Equipment

NOTE 4. PROPERTY AND EQUIPMENT

The following table sets forth the Company's property and equipment:


(Amounts in 000’s)	Estimated Useful Lives (Years)		March 31, 2024			December 31, 2023
Buildings and improvements	5-40		$	64,466		$	64,447
Equipment and computer related	2-10			1,095			1,187
Land (1)		—		2,774			2,774
Property and equipment				68,335			68,408
Less: accumulated depreciation				(23,450	)		(23,071	)
Property and equipment, net			$	44,885		$	45,337

(1)

Includes $0.1 million of land improvements with an average estimated useful remaining life of approximately 6.1 years as of March 31, 2024.

The following table summarizes total depreciation and amortization expense three months ended March 31, 2024 and 2023:


	Three Months Ended March 31,
(Amounts in 000’s)	2024		2023
Depreciation	$	403	$	400
Amortization		108		110
Total depreciation and amortization expense	$	511	$	510

Intangible Assets and Goodwill

3 Months Ended

Mar. 31, 2024

Goodwill And Intangible Assets Disclosure [Abstract]

Intangible Assets and Goodwill

NOTE 5. INTANGIBLE ASSETS AND GOODWILL

Intangible assets and Goodwill consist of the following:


(Amounts in 000’s)	Bed licenses (included in property and equipment)1)			Bed Licenses - Separable (2)		Lease Rights			Total			Goodwill (2)
Balances, December 31, 2023
Gross	$	14,276		$	2,471	$	176		$	16,923		$	1,585
Accumulated amortization		(4,997	)		—		(89	)		(5,086	)		—
Net carrying amount	$	9,279		$	2,471	$	87		$	11,837		$	1,585
Balances, March 31, 2024
Gross	$	14,276		$	2,471	$	176		$	16,923		$	1,585
Accumulated amortization		(5,101	)		—		(93	)		(5,194	)		—
Net carrying amount	$	9,175		$	2,471	$	83		$	11,729		$	1,585

(1)

Non-separable bed licenses are included in property and equipment as is the related accumulated amortization expense (see Note 4 – Property and Equipment).

(2)

The Company does not amortize indefinite-lived intangibles, which consist of separable bed licenses and goodwill.

The following table summarizes amortization expense for the three months ended March 31, 2024 and 2023:


	Three Months Ended March 31,
(Amounts in 000’s)	2024		2023
Bed licenses	$	104	$	104
Lease rights		4		6
Total amortization expense	$	108	$	110

Expected amortization expense for the years ending December 31, for all definite-lived intangibles, for each of the next five years and thereafter is as follows:


(Amounts in 000’s)	Bed Licenses		Lease Rights
2024	$	311	$	14
2025		414		18
2026		414		18
2027		414		18
2028		414		15
Thereafter		7,208		-
Total expected amortization expense	$	9,175	$	83

Leases

3 Months Ended

Mar. 31, 2024

Leases [Abstract]

Leases

NOTE 6. LEASES

Operating Leases

Future Minimum Lease Payments

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


(Amounts in 000’s)	Future rental payments		Accretion of lease liability (1)			Operating lease obligation
2024	$	510	$	(16	)	$	494
2025		672		(66	)		606
2026		658		(109	)		549
2027		671		(155	)		516
2028		685		(198	)		487
Thereafter		230		(75	)		155
Total	$	3,426	$	(619	)	$	2,807

(1)

Weighted average discount rate 7.98%.

Facilities Lessor

Future Minimum Lease Receivables

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


	(Amounts in 000's)
2024	$	4,948
2025		6,696
2026		6,801
2027		6,909
2028		6,758
Thereafter		8,227
Total	$	40,339

Accrued Expenses

3 Months Ended

Mar. 31, 2024

Payables And Accruals [Abstract]

Accrued Expenses

NOTE 7. ACCRUED EXPENSES

Accrued expenses consist of the following:


(Amounts in 000’s)	March 31, 2024		December 31, 2023
Accrued employee benefits and payroll-related	$	365	$	255
Real estate and other taxes (1)		3,055		3,077
Self-insured reserve		—		61
Accrued interest		223		225
Insurance escrow		116		98
Other accrued expenses (2)		481		344
Total accrued expenses	$	4,240	$	4,060

(1)

(2)

As of March 31, 2024 and December 31, 2023, the remaining escheatment liabilities for discontinued operations are $0.3 million and are included in other accrued expenses.

Notes Payable and Other Debt

3 Months Ended

Mar. 31, 2024

Debt Disclosure [Abstract]

Notes Payable and Other Debt

NOTE 8. NOTES PAYABLE AND OTHER DEBT

Notes payable and other debt consists of the following:


(Amounts in 000’s)	March 31, 2024			December 31, 2023
Senior debt—guaranteed by HUD	$	28,774		$	28,979
Senior debt—guaranteed by USDA (1)		7,186			7,259
Senior debt—guaranteed by SBA(2)		552			557
Senior debt—bonds		6,117			6,117
Senior debt—other mortgage indebtedness		7,913			8,001
Other debt		516			889
Subtotal		51,058			51,802
Deferred financing costs		(937	)		(954	)
Unamortized discount on bonds		(112	)		(113	)
Notes payable and other debt	$	50,009		$	50,735

(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)			March 31, 2024		December 31, 2023
Senior debt - guaranteed by HUD (2)
The Pavilion Care Center	Newpoint Capital	12/01/2039	Fixed	3.97	%	$	792	$	801
Hearth and Care of Greenfield	Newpoint Capital	8/01/2050	Fixed	3.97	%		1,899		1,909
Woodland Manor	Newpoint Capital	11/01/2052	Fixed	3.97	%		4,868		4,891
Glenvue	Newpoint Capital	10/01/2044	Fixed	3.75	%		7,021		7,077
Autumn Breeze	KeyBank	01/01/2045	Fixed	3.65	%		6,106		6,154
Georgetown	Newpoint Capital	10/01/2046	Fixed	2.98	%		3,096		3,120
Sumter Valley	KeyBank	01/01/2047	Fixed	3.70	%		4,992		5,027
Total						$	28,774	$	28,979
Senior debt - guaranteed by USDA (3)
Mountain Trace	Community B&T	12/24/2036	Prime + 1.75%	10.25	%		3,505		3,539
Southland	Cadence Bank, NA	07/27/2036	Prime + 1.50%	10.00	%		3,681		3,720
Total						$	7,186	$	7,259
Senior debt - guaranteed by SBA
Southland(4)	Cadence Bank, NA	07/27/2036	Prime + 2.25%	10.75	%		552		557
Total						$	552	$	557

(1)

(2)

(3)

(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)

        March 31, 2024

        December 31, 2023

        Senior debt - bonds

Eaglewood Bonds Series A

City of Springfield, Ohio

05/01/2042

Fixed

7.65

6,117

6,117

(1)

Represents cash interest rates as of March 31, 2024. The rates exclude amortization of deferred financing of approximately 0.10% per annum.


(Amounts in 000’s)
Facility	Lender	Maturity	Interest Rate (1)			March 31, 2024		December 31, 2023
Senior debt - other mortgage indebtedness
Meadowood (2)	Exchange Bank of Alabama	10/01/2026	Fixed	4.50	%	$	3,196	$	3,237
Coosa (3)	Exchange Bank of Alabama	10/10/2026	Fixed	3.95	%		4,717		4,764
Total						$	7,913	$	8,001

(1)

Represents cash interest rates as of March 31, 2024 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.

(3)


(Amounts in 000’s)
Lender	Maturity	Interest Rate			March 31, 2024		December 31, 2023
Other debt
First Insurance Funding (1)	3/1/2024	Fixed	3.19	%	$	—	$	369
Key Bank (2)	08/25/2025	Fixed	0.00	%		495		495
Marlin Capital Solutions	06/1/2027	Fixed	5.00	%		21		25
Total					$	516	$	889

(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, 2023 to August 25, 2025.

Debt Covenant Compliance

Scheduled Maturities

The schedule below summarizes the scheduled gross maturities as of March 31, 2024 for each of the next five years and thereafter.


For the Twelve Months Ended December 31,	(Amounts in 000’s)
2024 (9 months remaining)	$	1,297
2025		2,265
2026		8,741
2027		1,560
2028		1,657
Thereafter		35,538
Subtotal	$	51,058
Less: unamortized discounts		(112	)
Less: deferred financing costs, net		(937	)
Total notes and other debt	$	50,009

Common and Preferred Stock

3 Months Ended

Mar. 31, 2024

Stockholders Equity Note [Abstract]

Common and Preferred Stock

NOTE 9. COMMON AND PREFERRED STOCK

Common Stock

Preferred Stock

As of March 31, 2024, the Company had 5,000,000 shares of Preferred Stock authorized and 2,811,535 shares issued and outstanding.

Series A Preferred Stock

As of March 31, 2024, the Company had 559,263 shares of Series A Preferred Stock issued and outstanding. There were

no dividends declared or paid on the Series A Preferred Stock for the three months ended March 31, 2024 and 2023.

Series B Preferred Stock

Stock Based Compensation

3 Months Ended

Mar. 31, 2024

Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]

Stock Based Compensation

NOTE 10. STOCK BASED COMPENSATION

Stock Incentive Plans

As of March 31, 2024, the number of securities remaining available for future issuance under the 2023 Plan is 201,000.

For the three months ended March 31, 2024 and 2023, the Company recognized stock-based compensation expense as follows:


	Three Months Ended March 31,
(Amounts in 000’s)	2024		2023
Employee compensation:
Stock compensation expense	$	43	$	81
Total employee stock-based compensation expense	$	43	$	81

Restricted Stock

The following table summarizes the Company's restricted stock activity for the three months ended March 31, 2024:


	Number of Shares (000's)			Weighted Avg. Grant Date (per Share) Fair Value
Unvested, December 31, 2023		80		$	5.27
Vested		(43	)	$	6.67
Unvested, March 31, 2024		37		$	3.61

Common Stock Options

The following summarizes the Company's employee and non-employee stock option activity for the three months ended March 31, 2024:


	Number of Shares (000's)		Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (in years)		Aggregate Intrinsic Value (000's)
Outstanding, December 31, 2023		33	$	14.84		6.9	$	—
Granted		24	$	2.03
Outstanding, March 31, 2024		57	$	9.41		8.0	$	10.1
Outstanding and Vested, March 31, 2024		44	$	11.55		7.4	$	4.7

The following summary information reflects stock options outstanding, vested, and related details as of March 31, 2024:


	Stock Options Outstanding						Stock Options Exercisable
Exercise Price	Number of Shares (000's)		Weighted Average Remaining Contractual Term (in years)		Weighted Average Exercise Price		Number of Shares (000's)		Weighted Average Exercise Price
$2.03-$3.32		48		9.3	$	2.68		35	$	2.91
$46.80		9		0.7	$	46.80		9	$	46.80
Total		57		8.0	$	9.41		44	$	11.55

Common Stock Warrants

The following summarizes the Company's warrant activity for the three months ended March 31, 2024:


	Number of Warrants (000's)		Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (in years)		Aggregate Intrinsic Value (in 000's)
Outstanding, December 31, 2023		32	$	52.50		1.0	$	—
Granted		—	$	—
Expired		—	$	—
Outstanding, March 31, 2024		32	$	52.50		0.7	$	—

Commitments and Contingencies

3 Months Ended

Mar. 31, 2024

Commitments And Contingencies Disclosure [Abstract]

Commitments and Contingencies

NOTE 11. COMMITMENTS AND CONTINGENCIES

Regulatory Matters

Legal Matters

Professional and General Liability Claims

On February 16, 2024, the Regional's insurance carrier was able to reach a settlement with the family of Mable Polite within policy limits.

Segments Results

3 Months Ended

Mar. 31, 2024

Segment Reporting [Abstract]

Segments Results

NOTE 12. SEGMENT RESULTS

The table below presents the results of operations for our reporting segments for the periods presented.


	Three Months Ended March 31,									Three Months Ended March 31,
	2024			2024			2024			2023			2023			2023
(Amounts in 000’s)	Real Estate Services			Healthcare Services			Total			Real Estate Services			Healthcare Services			Total
Revenues:
Patient care revenues	$	—		$	2,309		$	2,309		$	—		$	1,916		$	1,916
Rental revenues		1,818			—			1,818			1,708			—			1,708
Management fees		—			—			—			278			—			278
Other revenues		—			—			—			4			—			4
Total revenues		1,818			2,309			4,127			1,990			1,916			3,906
Expenses:
Patient care expense		—			2,101			2,101			—			2,321			2,321
Facility rent expense		149			-			149			149			-			149
Cost of management fees		—			—			—			141			—			141
Depreciation and amortization		386			125			511			387			123			510
General and administrative expense		1,266			366			1,632			1,181			350			1,531
Doubtful accounts expense		—			28			28			—			16			16
Total expenses		1,801			2,620			4,421			1,858			2,810			4,668
Income (loss) from operations		17			(311	)		(294	)		132			(894	)		(762	)
Other expense:
Interest expense, net		570			104			674			571			109			680
Other (income) expense, net		(22	)		16			(6	)		332			218			550
Total other expense, net		548			120			668			903			327			1,230
Net loss	$	(531	)	$	(431	)	$	(962	)	$	(771	)	$	(1,221	)	$	(1,992	)

Total assets for the Real Estate Services segment and Healthcare Services segment were $48.0 million and $13.2 million, respectively, as of March 31, 2024.

Total assets for the Real Estate Services segment and Healthcare Services segment were $48.5 million and $13.7 million, respectively, as of December 31, 2023.

Subsequent Events

3 Months Ended

Mar. 31, 2024

Subsequent Events [Abstract]

Subsequent Events

NOTE 13. SUBSEQUENT EVENTS

The Company has evaluated all subsequent events through the date the consolidated financial statements were issued and filed with the SEC.

Organization and Significant Accounting Policies (Policies)

3 Months Ended

Mar. 31, 2024

Accounting Policies [Abstract]

Description of Business

Basis of Presentation

Use of Estimates

Reclassifications

Revenue Recognition and Allowances

on the nature of the services provided. Estimated uncollectible amounts due from patients are generally considered implicit price concessions that are a direct reduction to net patient care revenues.

The following table presents the Company's Accounts receivable, net of allowance for the periods presented:


(Amounts in 000’s)	March 31, 2024			December 31, 2023
Gross receivables
Real Estate Services	$	656		$	693
Healthcare Services		2,864			2,750
Subtotal		3,520			3,443
Allowance
Real Estate Services		—			—
Healthcare Services		(2,056	)		(2,040	)
Subtotal		(2,056	)		(2,040	)
Accounts receivable, net of allowance	$	1,464		$	1,403

Prepaid Expenses and Other

Accounts Payable

The following table presents the Company's Accounts payable for the periods presented:


(Amounts in 000’s)	March 31, 2024		December 31, 2023
Accounts payable
Real Estate Services	$	1,410	$	751
Healthcare Services		1,696		1,742
Total Accounts payable	$	3,106	$	2,493

Other Liabilities

Other Expense, Net

Other Expense, net

The Company had retained a law firm to evaluate and assist with opportunities to improve the Company's capital structure. See Note 2 – Series A Preferred Exchange Offer.

Leases and Leasehold Improvements

Insurance

Net Loss Per Share

Securities outstanding that were excluded from the computation, because they would have been anti-dilutive were as follows:


	March 31,
(Share amounts in 000’s)	2024		2023
Stock options		33		13
Warrants - employee		32		34
Warrants - non employee		—		1
Total anti-dilutive securities		65		48

The weighted average contractual terms in years for these securities as of March 31, 2024, with no intrinsic value, are 6.6 years for the stock options and 0.8 years for the warrants.

Recently Adapted Accounting Pronouncements

Recently Adopted Accounting Pronouncements

New Accounting Pronouncements Issued But Not Yet Effective

In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures,

No other new accounting pronouncement issued or effective has had, or is expected to have, a material impact on the Company's financial statements.

Organization and Significant Accounting Policies (Tables)

3 Months Ended

Mar. 31, 2024

Accounting Policies [Abstract]

Company's Accounts Receivable, Net of Allowance

The following table presents the Company's Accounts receivable, net of allowance for the periods presented:


(Amounts in 000’s)	March 31, 2024			December 31, 2023
Gross receivables
Real Estate Services	$	656		$	693
Healthcare Services		2,864			2,750
Subtotal		3,520			3,443
Allowance
Real Estate Services		—			—
Healthcare Services		(2,056	)		(2,040	)
Subtotal		(2,056	)		(2,040	)
Accounts receivable, net of allowance	$	1,464		$	1,403

Company's Accounts Payable

The following table presents the Company's Accounts payable for the periods presented:


(Amounts in 000’s)	March 31, 2024		December 31, 2023
Accounts payable
Real Estate Services	$	1,410	$	751
Healthcare Services		1,696		1,742
Total Accounts payable	$	3,106	$	2,493

Schedule of Securities Outstanding that were Excluded From the Computation, Prior to the Use of the Treasury Stock Method, Because They Would Have Been Anti-dilutive

Securities outstanding that were excluded from the computation, because they would have been anti-dilutive were as follows:


	March 31,
(Share amounts in 000’s)	2024		2023
Stock options		33		13
Warrants - employee		32		34
Warrants - non employee		—		1
Total anti-dilutive securities		65		48

Cash and Restricted Cash (Tables)

3 Months Ended

Mar. 31, 2024

Restricted Cash And Investments [Abstract]

Schedule of Cash and Restricted Cash

The following presents the Company's cash and restricted cash:


(Amounts in 000’s)	March 31, 2024		December 31, 2023
Cash	$	752	$	953
Restricted cash:
Cash collateral		159		159
HUD and other replacement reserves		2,126		2,125
Escrow deposits		621		630
Restricted investments for debt obligations		317		317
Total restricted cash		3,223		3,231
Total cash and restricted cash	$	3,975	$	4,184

Property and Equipment (Tables)

3 Months Ended

Mar. 31, 2024

Property Plant And Equipment [Abstract]

Schedule of Property and Equipment

The following table sets forth the Company's property and equipment:


(Amounts in 000’s)	Estimated Useful Lives (Years)		March 31, 2024			December 31, 2023
Buildings and improvements	5-40		$	64,466		$	64,447
Equipment and computer related	2-10			1,095			1,187
Land (1)		—		2,774			2,774
Property and equipment				68,335			68,408
Less: accumulated depreciation				(23,450	)		(23,071	)
Property and equipment, net			$	44,885		$	45,337

(1)

Includes $0.1 million of land improvements with an average estimated useful remaining life of approximately 6.1 years as of March 31, 2024.

The following table summarizes total depreciation and amortization expense three months ended March 31, 2024 and 2023:


	Three Months Ended March 31,
(Amounts in 000’s)	2024		2023
Depreciation	$	403	$	400
Amortization		108		110
Total depreciation and amortization expense	$	511	$	510

Intangible Assets and Goodwill (Tables)

3 Months Ended

Mar. 31, 2024

Goodwill And Intangible Assets Disclosure [Abstract]

Schedule of Intangible Assets and Goodwill

Intangible assets and Goodwill consist of the following:


(Amounts in 000’s)	Bed licenses (included in property and equipment)1)			Bed Licenses - Separable (2)		Lease Rights			Total			Goodwill (2)
Balances, December 31, 2023
Gross	$	14,276		$	2,471	$	176		$	16,923		$	1,585
Accumulated amortization		(4,997	)		—		(89	)		(5,086	)		—
Net carrying amount	$	9,279		$	2,471	$	87		$	11,837		$	1,585
Balances, March 31, 2024
Gross	$	14,276		$	2,471	$	176		$	16,923		$	1,585
Accumulated amortization		(5,101	)		—		(93	)		(5,194	)		—
Net carrying amount	$	9,175		$	2,471	$	83		$	11,729		$	1,585

(1)

Non-separable bed licenses are included in property and equipment as is the related accumulated amortization expense (see Note 4 – Property and Equipment).

(2)

The Company does not amortize indefinite-lived intangibles, which consist of separable bed licenses and goodwill.

Schedule of Total Amortization Expense

The following table summarizes amortization expense for the three months ended March 31, 2024 and 2023:


	Three Months Ended March 31,
(Amounts in 000’s)	2024		2023
Bed licenses	$	104	$	104
Lease rights		4		6
Total amortization expense	$	108	$	110

Schedule of Estimated Amortization Expense for All Definite Lived Intangibles

Expected amortization expense for the years ending December 31, for all definite-lived intangibles, for each of the next five years and thereafter is as follows:


(Amounts in 000’s)	Bed Licenses		Lease Rights
2024	$	311	$	14
2025		414		18
2026		414		18
2027		414		18
2028		414		15
Thereafter		7,208		-
Total expected amortization expense	$	9,175	$	83

Leases (Tables)

3 Months Ended

Mar. 31, 2024

Leases [Abstract]

Schedule of Future Minimum Lease Payments

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


(Amounts in 000’s)	Future rental payments		Accretion of lease liability (1)			Operating lease obligation
2024	$	510	$	(16	)	$	494
2025		672		(66	)		606
2026		658		(109	)		549
2027		671		(155	)		516
2028		685		(198	)		487
Thereafter		230		(75	)		155
Total	$	3,426	$	(619	)	$	2,807

(1)

Weighted average discount rate 7.98%.

Schedule of Future Minimum Lease Receivables

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


	(Amounts in 000's)
2024	$	4,948
2025		6,696
2026		6,801
2027		6,909
2028		6,758
Thereafter		8,227
Total	$	40,339

Accrued Expenses (Tables)

3 Months Ended

Mar. 31, 2024

Payables And Accruals [Abstract]

Schedule of Accrued Expenses

Accrued expenses consist of the following:


(Amounts in 000’s)	March 31, 2024		December 31, 2023
Accrued employee benefits and payroll-related	$	365	$	255
Real estate and other taxes (1)		3,055		3,077
Self-insured reserve		—		61
Accrued interest		223		225
Insurance escrow		116		98
Other accrued expenses (2)		481		344
Total accrued expenses	$	4,240	$	4,060

(1)

(2)

As of March 31, 2024 and December 31, 2023, the remaining escheatment liabilities for discontinued operations are $0.3 million and are included in other accrued expenses.

Notes Payable and Other Debt (Tables)

3 Months Ended

Mar. 31, 2024

Debt Disclosure [Abstract]

Schedule of Notes Payable and Other Debt

Notes payable and other debt consists of the following:


(Amounts in 000’s)	March 31, 2024			December 31, 2023
Senior debt—guaranteed by HUD	$	28,774		$	28,979
Senior debt—guaranteed by USDA (1)		7,186			7,259
Senior debt—guaranteed by SBA(2)		552			557
Senior debt—bonds		6,117			6,117
Senior debt—other mortgage indebtedness		7,913			8,001
Other debt		516			889
Subtotal		51,058			51,802
Deferred financing costs		(937	)		(954	)
Unamortized discount on bonds		(112	)		(113	)
Notes payable and other debt	$	50,009		$	50,735

(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)			March 31, 2024		December 31, 2023
Senior debt - guaranteed by HUD (2)
The Pavilion Care Center	Newpoint Capital	12/01/2039	Fixed	3.97	%	$	792	$	801
Hearth and Care of Greenfield	Newpoint Capital	8/01/2050	Fixed	3.97	%		1,899		1,909
Woodland Manor	Newpoint Capital	11/01/2052	Fixed	3.97	%		4,868		4,891
Glenvue	Newpoint Capital	10/01/2044	Fixed	3.75	%		7,021		7,077
Autumn Breeze	KeyBank	01/01/2045	Fixed	3.65	%		6,106		6,154
Georgetown	Newpoint Capital	10/01/2046	Fixed	2.98	%		3,096		3,120
Sumter Valley	KeyBank	01/01/2047	Fixed	3.70	%		4,992		5,027
Total						$	28,774	$	28,979
Senior debt - guaranteed by USDA (3)
Mountain Trace	Community B&T	12/24/2036	Prime + 1.75%	10.25	%		3,505		3,539
Southland	Cadence Bank, NA	07/27/2036	Prime + 1.50%	10.00	%		3,681		3,720
Total						$	7,186	$	7,259
Senior debt - guaranteed by SBA
Southland(4)	Cadence Bank, NA	07/27/2036	Prime + 2.25%	10.75	%		552		557
Total						$	552	$	557

(1)

(2)

(3)

(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)

        March 31, 2024

        December 31, 2023

        Senior debt - bonds

Eaglewood Bonds Series A

City of Springfield, Ohio

05/01/2042

Fixed

7.65

6,117

6,117

(1)

Represents cash interest rates as of March 31, 2024. The rates exclude amortization of deferred financing of approximately 0.10% per annum.


(Amounts in 000’s)
Facility	Lender	Maturity	Interest Rate (1)			March 31, 2024		December 31, 2023
Senior debt - other mortgage indebtedness
Meadowood (2)	Exchange Bank of Alabama	10/01/2026	Fixed	4.50	%	$	3,196	$	3,237
Coosa (3)	Exchange Bank of Alabama	10/10/2026	Fixed	3.95	%		4,717		4,764
Total						$	7,913	$	8,001

(1)

Represents cash interest rates as of March 31, 2024 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.

(3)


(Amounts in 000’s)
Lender	Maturity	Interest Rate			March 31, 2024		December 31, 2023
Other debt
First Insurance Funding (1)	3/1/2024	Fixed	3.19	%	$	—	$	369
Key Bank (2)	08/25/2025	Fixed	0.00	%		495		495
Marlin Capital Solutions	06/1/2027	Fixed	5.00	%		21		25
Total					$	516	$	889

(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, 2023 to August 25, 2025.

Summary of the Scheduled Maturities

The schedule below summarizes the scheduled gross maturities as of March 31, 2024 for each of the next five years and thereafter.


For the Twelve Months Ended December 31,	(Amounts in 000’s)
2024 (9 months remaining)	$	1,297
2025		2,265
2026		8,741
2027		1,560
2028		1,657
Thereafter		35,538
Subtotal	$	51,058
Less: unamortized discounts		(112	)
Less: deferred financing costs, net		(937	)
Total notes and other debt	$	50,009

Stock Based Compensation (Tables)

3 Months Ended

Mar. 31, 2024

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Summary of Recognized Stock Based Compensation

For the three months ended March 31, 2024 and 2023, the Company recognized stock-based compensation expense as follows:


	Three Months Ended March 31,
(Amounts in 000’s)	2024		2023
Employee compensation:
Stock compensation expense	$	43	$	81
Total employee stock-based compensation expense	$	43	$	81

Summary of Company's Restricted Stock Activity

The following table summarizes the Company's restricted stock activity for the three months ended March 31, 2024:


	Number of Shares (000's)			Weighted Avg. Grant Date (per Share) Fair Value
Unvested, December 31, 2023		80		$	5.27
Vested		(43	)	$	6.67
Unvested, March 31, 2024		37		$	3.61

Summary of Company's Stock Option Activity

The following summarizes the Company's employee and non-employee stock option activity for the three months ended March 31, 2024:


	Number of Shares (000's)		Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (in years)		Aggregate Intrinsic Value (000's)
Outstanding, December 31, 2023		33	$	14.84		6.9	$	—
Granted		24	$	2.03
Outstanding, March 31, 2024		57	$	9.41		8.0	$	10.1
Outstanding and Vested, March 31, 2024		44	$	11.55		7.4	$	4.7

Schedule of Exercise Price Range

The following summary information reflects stock options outstanding, vested, and related details as of March 31, 2024:


	Stock Options Outstanding						Stock Options Exercisable
Exercise Price	Number of Shares (000's)		Weighted Average Remaining Contractual Term (in years)		Weighted Average Exercise Price		Number of Shares (000's)		Weighted Average Exercise Price
$2.03-$3.32		48		9.3	$	2.68		35	$	2.91
$46.80		9		0.7	$	46.80		9	$	46.80
Total		57		8.0	$	9.41		44	$	11.55

Warrant [Member]

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Schedule of Warrant Activity

The following summarizes the Company's warrant activity for the three months ended March 31, 2024:


	Number of Warrants (000's)		Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (in years)		Aggregate Intrinsic Value (in 000's)
Outstanding, December 31, 2023		32	$	52.50		1.0	$	—
Granted		—	$	—
Expired		—	$	—
Outstanding, March 31, 2024		32	$	52.50		0.7	$	—

Segments Results (Tables)

3 Months Ended

Mar. 31, 2024

Segment Reporting [Abstract]

Summary of Results of Operations for Reporting Segments

The table below presents the results of operations for our reporting segments for the periods presented.


	Three Months Ended March 31,									Three Months Ended March 31,
	2024			2024			2024			2023			2023			2023
(Amounts in 000’s)	Real Estate Services			Healthcare Services			Total			Real Estate Services			Healthcare Services			Total
Revenues:
Patient care revenues	$	—		$	2,309		$	2,309		$	—		$	1,916		$	1,916
Rental revenues		1,818			—			1,818			1,708			—			1,708
Management fees		—			—			—			278			—			278
Other revenues		—			—			—			4			—			4
Total revenues		1,818			2,309			4,127			1,990			1,916			3,906
Expenses:
Patient care expense		—			2,101			2,101			—			2,321			2,321
Facility rent expense		149			-			149			149			-			149
Cost of management fees		—			—			—			141			—			141
Depreciation and amortization		386			125			511			387			123			510
General and administrative expense		1,266			366			1,632			1,181			350			1,531
Doubtful accounts expense		—			28			28			—			16			16
Total expenses		1,801			2,620			4,421			1,858			2,810			4,668
Income (loss) from operations		17			(311	)		(294	)		132			(894	)		(762	)
Other expense:
Interest expense, net		570			104			674			571			109			680
Other (income) expense, net		(22	)		16			(6	)		332			218			550
Total other expense, net		548			120			668			903			327			1,230
Net loss	$	(531	)	$	(431	)	$	(962	)	$	(771	)	$	(1,221	)	$	(1,992	)

Organization and Significant Accounting Policies - Additional Information (Details)		3 Months Ended
	Aug. 03, 2023	Mar. 31, 2024 USD ($) Segment	Dec. 31, 2023 USD ($)
Finite-Lived Intangible Assets [Line Items]
Number of reportable segments \| Segment		2
Percentage of revenue recognized from government sources		90.00%
Percentage of reserve for patient care receivables		1.50%
Receivables, estimated allowance for uncollectible accounts		$ 2,056,000	$ 2,040,000
Accounts receivable, net of allowance		1,464,000	1,403,000
Other liabilities		1,797,000	1,791,000
Prepaid expenses and other		400,000	600,000
Intrinsic Value		0
Accrued Expenses
Finite-Lived Intangible Assets [Line Items]
Escheatment liabilities		$ 300,000	$ 300,000
Employee Stock Option
Finite-Lived Intangible Assets [Line Items]
Weighted average contractual terms		6 years 7 months 6 days
Warrant
Finite-Lived Intangible Assets [Line Items]
Weighted average contractual terms		9 months 18 days
Directors and Officers
Finite-Lived Intangible Assets [Line Items]
Decrease in Prepaid expenses and other		$ 200,000
Series B Cumulative Redeemable Preferred Shares
Finite-Lived Intangible Assets [Line Items]
Preferred stock, fixed interest rate (percentage)	12.50%

Organization and Significant Accounting Policies - Company's Accounts Receivable, Net of Allowance (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Accounts Notes And Loans Receivable [Line Items]
Gross receivables	$ 3,520	$ 3,443
Allowance	(2,056)	(2,040)
Accounts receivable, net of allowance	1,464	1,403
Real Estate Services
Accounts Notes And Loans Receivable [Line Items]
Gross receivables	656	693
Allowance	0	0
Healthcare Services
Accounts Notes And Loans Receivable [Line Items]
Gross receivables	2,864	2,750
Allowance	$ (2,056)	$ (2,040)

Organization and Significant Accounting Policies - Company's Accounts Payable (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Accounts Payable [Line Items]
Accounts payable	$ 3,106	$ 2,493
Real Estate Services
Accounts Payable [Line Items]
Accounts payable	1,410	751
Healthcare Services
Accounts Payable [Line Items]
Accounts payable	$ 1,696	$ 1,742

Organization and Significant Accounting Policies - Anti-dilutive Securities (Details) - shares shares in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Anti-dilutive securities outstanding that were excluded from the computation
Antidilutive securities	65	48
Employee Stock Option
Anti-dilutive securities outstanding that were excluded from the computation
Antidilutive securities	33	13
Warrants - employee
Anti-dilutive securities outstanding that were excluded from the computation
Antidilutive securities	32	34
Warrants - non employee
Anti-dilutive securities outstanding that were excluded from the computation
Antidilutive securities		1

Liquidity - Additional Information (Details) - USD ($)			3 Months Ended
Liquidity - Additional Information (Details) - USD ($)	Jun. 30, 2023	Oct. 01, 2018	Mar. 31, 2024	Mar. 31, 2023	Dec. 31, 2023
Management's plan for increasing liquidity
Unrestricted cash			$ 800,000
Cash flow from operations			597,000	$ 2,597,000
Net accounts receivable			1,034,000		$ 1,044,000
Accumulated and unpaid dividends on series A preferred stock			50,400,000
Rent collected or anticipates collecting			2,859,000		2,901,000
Total indebtedness			50,009,000
Net of deferred financing and unamortized discounts, in indebtedness			1,000,000
Net of deferred financing costs and unamortized discounts, in indebtedness			937,000
Debt repayments of principal in next 12 months, amortization			1,700,000
Debt instrument, outstanding amount			51,058,000		51,802,000
Accounts receivable, net of allowance			1,464,000		$ 1,403,000
Deferred financing fees			937,000
Patient Account Receivables And Rent Receivables
Management's plan for increasing liquidity
Net accounts receivable			1,500,000
Routine debt
Management's plan for increasing liquidity
Debt repayments of principal in next 12 months, amortization			1,500,000
Bond Debt
Management's plan for increasing liquidity
Debt repayments of principal in next 12 months, amortization			100,000
10.875% Series A Cumulative Redeemable Preferred Stock
Management's plan for increasing liquidity
Preferred stock, fixed interest rate (percentage)	10.875%
Increase of preferred stock dividend rate		12.875%
Dividends payable, preferred stock		$ 3.2
Retire Or Refinance Of Series A Preferred Stock [Member]
Management's plan for increasing liquidity
Cost associated with retire or refinance of outstanding shares			$ 0	$ 600,000

Cash and Restricted Cash - Schedule of Cash and Restricted Cash (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023	Mar. 31, 2023	Dec. 31, 2022
Restricted Cash And Investments [Line Items]
Cash	$ 752	$ 953
Restricted cash:
Cash collateral	159	159
HUD and other replacement reserves	2,126	2,125
Escrow deposits	621	630
Restricted investments for debt obligations	317	317
Total restricted cash	3,223	3,231
Total cash and restricted cash	$ 3,975	$ 4,184	$ 5,819	$ 3,909

Property and Equipment - Schedule of Property and Equipment (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Property Plant and Equipment [Line Items]
Property and equipment	$ 68,335	$ 68,408
Less: accumulated depreciation and amortization	(23,450)	(23,071)
Property and equipment, net	44,885	45,337
Buildings and Improvements
Property Plant and Equipment [Line Items]
Property and equipment	$ 64,466	64,447
Buildings and Improvements \| Minimum
Property Plant and Equipment [Line Items]
Useful lives	5 years
Buildings and Improvements \| Maximum
Property Plant and Equipment [Line Items]
Useful lives	40 years
Equipment and Computer Related
Property Plant and Equipment [Line Items]
Property and equipment	$ 1,095	1,187
Equipment and Computer Related \| Minimum
Property Plant and Equipment [Line Items]
Useful lives	2 years
Equipment and Computer Related \| Maximum
Property Plant and Equipment [Line Items]
Useful lives	10 years
Land
Property Plant and Equipment [Line Items]
Property and equipment	$ 2,774	$ 2,774

Property and Equipment - Schedule of Property and Equipment (Parenthetical) (Details) $ in Millions	Mar. 31, 2024 USD ($)
Property Plant and Equipment [Line Items]
Land improvements	$ 0.1
Land Improvements
Property Plant and Equipment [Line Items]
Useful lives	6 years 1 month 6 days

Property and Equipment - Schedule of Total Depreciation and Amortization Expense of Property and Equipment (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Property Plant And Equipment [Abstract]
Depreciation	$ 403	$ 400
Amortization	108	110
Total depreciation and amortization expense	$ 511	$ 510

Intangible Assets and Goodwill - Schedule of Intangible Assets and Goodwill (Details) - USD ($)
$ in Thousands

Mar. 31, 2024

Dec. 31, 2023

Intangible assets net excluding goodwill

Finite and indefinite lived intangible assets, gross

$ 16,923

Finite and indefinite lived intangible assets, accumulated amortization

(5,194)

(5,086)

Intangible assets, net carrying amount

11,729

11,837

Goodwill Roll Forward

Goodwill, Gross

1,585

Goodwill

1,585

Bed Licenses Separable

Intangible assets net excluding goodwill

Finite and indefinite lived intangible assets, gross

^[1]

2,471

Intangible assets, net carrying amount

^[1]

2,471

Bed Licenses Included In Property And Equipment

Intangible assets net excluding goodwill

Finite and indefinite lived intangible assets, gross

^[2]

14,276

Finite and indefinite lived intangible assets, accumulated amortization

^[2]

(5,101)

(4,997)

Intangible assets, net carrying amount

^[2]

9,175

9,279

Lease Rights

Intangible assets net excluding goodwill

Finite and indefinite lived intangible assets, gross

176

Finite and indefinite lived intangible assets, accumulated amortization

(93)

(89)

Intangible assets, net carrying amount

$ 83

$ 87

[1]	The Company does not amortize indefinite-lived intangibles, which consist of separable bed licenses and goodwill
[2]	Non-separable bed licenses are included in property and equipment as is the related accumulated amortization expense (see Note 4 – Property and Equipment).

Intangible Assets and Goodwill - Schedule of Total Amortization Expense (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Finite-Lived Intangible Assets [Line Items]
Amortization	$ 108	$ 110
Bed Licenses Included In Property And Equipment
Finite-Lived Intangible Assets [Line Items]
Amortization	104	104
Lease Rights
Finite-Lived Intangible Assets [Line Items]
Amortization	$ 4	$ 6

Intangible Assets and Goodwill - Schedule of Estimated Amortization Expense for All Definite Lived Intangibles (Details) $ in Thousands	Mar. 31, 2024 USD ($)
Bed Licenses Included In Property And Equipment
Finite Lived Intangible Assets [Line Items]
2024	$ 311
2025	414
2026	414
2027	414
2028	414
Thereafter	7,208
Total expected amortization expense	9,175
Lease Rights
Finite Lived Intangible Assets [Line Items]
2024	14
2025	18
2026	18
2027	18
2028	15
Total expected amortization expense	$ 83

Leases - Operating Leases - Additional Information (Details)	Mar. 31, 2024 ft²
GEORGIA
Operating Leased Assets [Line Items]
Office space subleased	2,000
Covington, Ohio
Operating Leased Assets [Line Items]
Weighted average remaining lease term	4 years 8 months 12 days

Leases - Schedule of Future Minimum Lease Payments (Details)
$ in Thousands

Mar. 31, 2024

USD ($)

Future Rental Payments [Abstract]

$ 510

672

658

671

685

230

3,426

Accretion of Lease Liability [Abstract]

2024

(16)

^[1]

2025

(66)

^[1]

2026

(109)

^[1]

2027

(155)

^[1]

2028

(198)

^[1]

Thereafter

(75)

^[1]

Total

(619)

^[1]

Operating Lease Obligation [Abstract]

494

606

549

516

487

155

$ 2,807

[1]	Weighted average discount rate 7.98%.

Leases - Schedule of Future Minimum Lease Payments (Parenthetical) (Details)	Mar. 31, 2024
Leases [Abstract]
Weighted average discount rate	7.98%

Leases - Facilities Lessor - Additional Information (Details)	3 Months Ended
	Mar. 31, 2024 Facility
Leases [Abstract]
Number of owned facilities	11
Number of owned facilities, Lessor	9
Number of owned facilities, Sub lessor	1
Weighted average remaining lease term, Facilities lessor	5 years 3 months 18 days
Number of sublease agreements executed, owned by company	10

Leases - Schedule of Future Minimum Lease Receivables from Company's Facilities Leased and Subleased to Third Party Tenants (Details) $ in Thousands	Mar. 31, 2024 USD ($)
Operating Leases Future Minimum Payments Receivable [Abstract]
2024	$ 4,948
2025	6,696
2026	6,801
2027	6,909
2028	6,758
Thereafter	8,227
Total	$ 40,339

Accrued Expenses - Schedule of Accrued Expenses (Details) - USD ($)
$ in Thousands

Mar. 31, 2024

Dec. 31, 2023

Payables And Accruals [Abstract]

Accrued employee benefits and payroll-related

$ 365

$ 255

Real estate and other taxes

^[1]

3,055

3,077

Self-insured reserve

Accrued interest

223

225

Insurance escrow

116

Other accrued expenses

^[2]

481

344

Total accrued expenses

$ 4,240

$ 4,060

[1]

[2]

As of March 31, 2024 and December 31, 2023, the remaining escheatment liabilities for discontinued operations are $0.3 million and are included in other accrued expenses.

Accrued Expenses - Schedule of Accrued Expenses (Parenthetical) (Details) - USD ($) $ in Millions	Mar. 31, 2024	Dec. 31, 2023
Accrued Expenses
Payables And Accruals [Line Items]
Escheatment liabilities	$ 0.3	$ 0.3
Healthcare Services Segment
Payables And Accruals [Line Items]
Bed taxes	2.0	1.9
Real Estate Services
Payables And Accruals [Line Items]
Accrued property tax	0.4	0.5
Wellington Transition \| Healthcare Services Segment
Payables And Accruals [Line Items]
Bed taxes	$ 0.7	$ 0.7

Notes Payable and Other Debt - Summary of Debt (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Debt Instrument [Line Items]
Debt instrument, outstanding amount	$ 51,058	$ 51,802
Deferred financing costs	(937)	(954)
Unamortized discount on bonds	(112)	(113)
Notes payable and other debt	50,009	50,735
Senior debt - guaranteed by HUD
Debt Instrument [Line Items]
Debt instrument, outstanding amount	28,774	28,979
Senior debt - guaranteed by USDA
Debt Instrument [Line Items]
Debt instrument, outstanding amount	7,186	7,259
Senior debt - guaranteed by SBA
Debt Instrument [Line Items]
Debt instrument, outstanding amount	552	557
Senior debt Bonds, net of discount
Debt Instrument [Line Items]
Debt instrument, outstanding amount	6,117	6,117
Senior debt - other mortgage indebtedness
Debt Instrument [Line Items]
Debt instrument, outstanding amount	7,913	8,001
Other Debt
Debt Instrument [Line Items]
Debt instrument, outstanding amount	$ 516	$ 889

Notes Payable and Other Debt - Details of Long-term Debt (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Dec. 31, 2023
Debt Instrument [Line Items]
Debt instrument, outstanding amount	$ 51,058	$ 51,802
Senior debt - guaranteed by HUD
Debt Instrument [Line Items]
Debt instrument, outstanding amount	28,774	28,979
Senior debt - guaranteed by USDA
Debt Instrument [Line Items]
Debt instrument, outstanding amount	7,186	7,259
Senior debt - guaranteed by SBA
Debt Instrument [Line Items]
Debt instrument, outstanding amount	552	557
Senior Debt Other Mortgage Indebtedness
Debt Instrument [Line Items]
Debt instrument, outstanding amount	7,913	8,001
Senior Debt Obligations \| Senior debt - guaranteed by HUD
Debt Instrument [Line Items]
Debt instrument, outstanding amount	28,774	28,979
Senior Debt Obligations \| Senior debt - guaranteed by USDA
Debt Instrument [Line Items]
Debt instrument, outstanding amount	7,186	7,259
Senior Debt Obligations \| Senior debt - guaranteed by SBA
Debt Instrument [Line Items]
Debt instrument, outstanding amount	552	557
Other Debt
Debt Instrument [Line Items]
Debt instrument, outstanding amount	$ 516	889
Newpoint Capital \| The Pavilion Care Center \| Senior Debt Obligations \| Senior debt - guaranteed by HUD
Debt Instrument [Line Items]
Maturity date	Dec. 01, 2039
Interest rate	3.97%
Debt instrument, outstanding amount	$ 792	801
Newpoint Capital \| Hearth And Care Of Greenfield \| Senior Debt Obligations \| Senior debt - guaranteed by HUD
Debt Instrument [Line Items]
Maturity date	Aug. 01, 2050
Interest rate	3.97%
Debt instrument, outstanding amount	$ 1,899	1,909
Newpoint Capital \| Woodland Manor \| Senior Debt Obligations \| Senior debt - guaranteed by HUD
Debt Instrument [Line Items]
Maturity date	Nov. 01, 2052
Interest rate	3.97%
Debt instrument, outstanding amount	$ 4,868	4,891
Newpoint Capital \| Glenvue H&R \| Senior Debt Obligations \| Senior debt - guaranteed by HUD
Debt Instrument [Line Items]
Maturity date	Oct. 01, 2044
Interest rate	3.75%
Debt instrument, outstanding amount	$ 7,021	7,077
Newpoint Capital \| Georgetown Health \| Senior Debt Obligations \| Senior debt - guaranteed by HUD
Debt Instrument [Line Items]
Maturity date	Oct. 01, 2046
Interest rate	2.98%
Debt instrument, outstanding amount	$ 3,096	3,120
KeyBank \| Other Debt
Debt Instrument [Line Items]
Maturity date	Aug. 25, 2025
Interest rate	0.00%
Debt instrument, outstanding amount	$ 495	495
KeyBank \| Autumn Breeze \| Senior Debt Obligations \| Senior debt - guaranteed by HUD
Debt Instrument [Line Items]
Maturity date	Jan. 01, 2045
Interest rate	3.65%
Debt instrument, outstanding amount	$ 6,106	6,154
KeyBank \| Sumter Valley \| Senior Debt Obligations \| Senior debt - guaranteed by HUD
Debt Instrument [Line Items]
Maturity date	Jan. 01, 2047
Interest rate	3.70%
Debt instrument, outstanding amount	$ 4,992	5,027
Marlin Capital Solutions \| Other Debt
Debt Instrument [Line Items]
Maturity date	Jun. 01, 2027
Interest rate	5.00%
Debt instrument, outstanding amount	$ 21	25
Community Bank \| Mountain Trace Rehab \| Senior Debt Obligations \| Senior debt - guaranteed by USDA
Debt Instrument [Line Items]
Maturity date	Dec. 24, 2036
Effective interest rate (as a percent)	10.25%
Debt instrument, outstanding amount	$ 3,505	3,539
Community Bank \| Mountain Trace Rehab \| Senior Debt Obligations \| Senior debt - guaranteed by USDA \| Prime Rate
Debt Instrument [Line Items]
Basis spread	1.75%
Cadence Bank N A \| Southland Healthcare \| Senior Debt Obligations \| Senior debt - guaranteed by USDA
Debt Instrument [Line Items]
Maturity date	Jul. 27, 2036
Effective interest rate (as a percent)	10.00%
Debt instrument, outstanding amount	$ 3,681	3,720
Cadence Bank N A \| Southland Healthcare \| Senior Debt Obligations \| Senior debt - guaranteed by USDA \| Prime Rate
Debt Instrument [Line Items]
Basis spread	1.50%
Cadence Bank N A \| Southland Healthcare \| Senior Debt Obligations \| Senior debt - guaranteed by SBA
Debt Instrument [Line Items]
Maturity date	Jul. 27, 2036
Effective interest rate (as a percent)	10.75%
Debt instrument, outstanding amount	$ 552	557
Cadence Bank N A \| Southland Healthcare \| Senior Debt Obligations \| Senior debt - guaranteed by SBA \| Prime Rate
Debt Instrument [Line Items]
Basis spread	2.25%
City of Springfield \| Eaglewood Care Center \| Bonds \| Bonds Series A
Debt Instrument [Line Items]
Maturity date	May 01, 2042
Interest rate	7.65%
Debt instrument, outstanding amount	$ 6,117	6,117
Exchange Bank Of Alabama \| Meadowood Facility
Debt Instrument [Line Items]
Maturity date	Oct. 01, 2026
Effective interest rate (as a percent)	4.50%
Exchange Bank Of Alabama \| Meadowood Facility \| Senior Debt Other Mortgage Indebtedness
Debt Instrument [Line Items]
Debt instrument, outstanding amount	$ 3,196	3,237
Exchange Bank Of Alabama \| Coosa Valley Health Care
Debt Instrument [Line Items]
Maturity date	Oct. 10, 2026
Effective interest rate (as a percent)	3.95%
Exchange Bank Of Alabama \| Coosa Valley Health Care \| Senior Debt Other Mortgage Indebtedness
Debt Instrument [Line Items]
Debt instrument, outstanding amount	$ 4,717	4,764
First Insurance Funding \| Other Debt
Debt Instrument [Line Items]
Maturity date	Mar. 01, 2024
Interest rate	3.19%
Debt instrument, outstanding amount		$ 369

Notes Payable and Other Debt - Details of Long-term Debt (Parenthetical) (Details) - Facility		3 Months Ended
	Dec. 30, 2022	Mar. 31, 2024
Coosa Valley Health Care
Debt Instrument [Line Items]
Prepayment penalties capped percentage		5.00%
Prepayment penalties percentage capped thereafter		1.00%
Default interest rate		5.00%
Prepayment penalties capped percentage in second year		4.00%
KeyBank
Debt Instrument [Line Items]
Debt instrument maturity date start range	Aug. 25, 2023
Debt instrument maturity date end range	Aug. 25, 2025
Senior debt - guaranteed by HUD
Debt Instrument [Line Items]
Number of skilled nursing facilities		7
Percentage of debt insured		100.00%
Senior debt - guaranteed by USDA
Debt Instrument [Line Items]
Number of skilled nursing facilities		2
Annual renewal fee for the USDA guarantee (as a percent)		0.25%
Debt Instrument Prepayment Penalties Percentage		1.00%
Prepayment penalties capped percentage		1.00%
Prepayment penalties percentage capped, period		10 years
Prepayment penalties percentage capped thereafter		0.00%
Senior debt - guaranteed by SBA
Debt Instrument [Line Items]
Number of skilled nursing facilities		1
Percentage of debt insured		75.00%
Senior debt Bonds, net of discount
Debt Instrument [Line Items]
Amortization of deferred financing costs (in percentage)		0.10%
Senior debt - other mortgage indebtedness
Debt Instrument [Line Items]
Amortization of deferred financing costs (in percentage)		0.34%
Minimum \| Senior debt - guaranteed by USDA
Debt Instrument [Line Items]
Percentage of debt insured		70.00%
Maximum
Debt Instrument [Line Items]
Amortization of deferred financing costs (in percentage)		0.16%
Maximum \| Senior debt - guaranteed by USDA
Debt Instrument [Line Items]
Percentage of debt insured		80.00%

Notes Payable and Other Debt - Additional Information (Details)	Mar. 31, 2024 Credit_instrument
Debt Disclosure [Abstract]
Number of credit related instruments	16

Notes Payable and Other Debt - Summary of the Scheduled Maturities (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Debt Disclosure [Abstract]
2024 (9 months remaining)	$ 1,297
2025	2,265
2026	8,741
2027	1,560
2028	1,657
Thereafter	35,538
Subtotal	51,058	$ 51,802
Less: unamortized discounts	(112)	$ (113)
Less: deferred financing costs, net	(937)
Total notes and other debt	$ 50,009

Common and Preferred Stock - Additional Information (Details) - USD ($)	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Dec. 31, 2023
Class of Stock [Line Items]
Common stock, shares authorized	55,000,000		55,000,000
Common stock, shares issued	1,850,000		1,850,000
Common stock, shares outstanding	1,839,000		1,839,000
Series A Preferred Stock
Class of Stock [Line Items]
Preferred stock, shares outstanding	560,000		560,000
Preferred stock, shares issued	560,000		560,000
Preferred stock, shares authorized	560,000		560,000
Dividends paid, preferred stock	$ 0	$ 0
Series B Preferred Stock
Class of Stock [Line Items]
Preferred stock, shares outstanding	2,252,000		2,252,000
Preferred stock, shares issued	2,252,000		2,252,000
Preferred stock, shares authorized	2,812,000		2,812,000
Dividends paid, preferred stock	$ 0
Common Stock
Class of Stock [Line Items]
Common stock, shares authorized	55,000,000
Common stock, shares issued	1,849,908
Common stock, shares outstanding	1,839,028
Dividends paid, common stock	$ 0	$ 0
Preferred Stock
Class of Stock [Line Items]
Preferred stock, shares outstanding	2,811,535
Preferred stock, shares issued	2,811,535
Preferred stock, shares authorized	5,000,000

Stock Based Compensation - Additional Information (Details)	3 Months Ended
	Mar. 31, 2024 USD ($) $ / shares shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Fair value of the option granted \| $ / shares	$ 1.76
Expected term	5 years 3 months 7 days
Risk free interest rate	3.81%
Dividend yield	0.00%
Expected volatility	127.14%
Warrant
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Warrants granted	0
Employee \| Warrant
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation expense \| $	$ 0
Warrants granted	0
Restricted stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation expense \| $	$ 119,000
Period of recognition of compensation expense	1 year 9 months 18 days
Restricted stock awards granted	0
Employee Stock Option
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation expense \| $	$ 17,000
Period of recognition of compensation expense	9 months 18 days
Options, granted during the period	24,000
Exercise price \| $ / shares	$ 2.03
2020 Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Additional award granted	0
Options, granted during the period	24,000
Exercise price \| $ / shares	$ 2.03
2023 Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of securities remaining available for future issuance	201,000

Stock Based Compensation - Summary of Recognized Stock Based Compensation (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation expense	$ 43	$ 81
Employee \| Stock compensation expense
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation expense	$ 43	$ 81

Stock Based Compensation - Summary of Company's Restricted Stock Activity (Details) - Restricted Stock shares in Thousands	3 Months Ended
	Mar. 31, 2024 $ / shares shares
Number of Shares (000's)
Unvested at the beginning of the period (in shares) \| shares	80
Vested (in shares) \| shares	(43)
Unvested at the end of the period (in shares) \| shares	37
Weighted Average Grant Date Fair Value
Unvested at the beginning of the period (in dollars per share) \| $ / shares	$ 5.27
Vested (in dollars per share) \| $ / shares	6.67
Unvested at the ending of the period (in dollars per share) \| $ / shares	$ 3.61

Stock Based Compensation - Summary of Company's Stock Option Activity (Details) - Employee Stock Option [Member] - USD ($) $ / shares in Units, shares in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2024	Dec. 31, 2023
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]
Beginning balance (shares)	33
Granted, number of shares	24
Ending balance (shares)	57	33
Outstanding and Vested,ending balance (shares)	44
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract]
Beginning balance (USD per share)	$ 14.84
Exercise price	2.03
Ending balance (USD per share)	9.41	$ 14.84
Outstanding and Vested, ending balance (USD per share)	$ 11.55
Additional disclosures
Outstanding - weighted average remaining contractual term	8 years	6 years 10 months 24 days
Outstanding and vested - weighted average remaining contractual term	7 years 4 months 24 days
Outstanding, aggregate intrinsic value	$ 10,100	$ 0
Outstanding and vested, aggregate intrinsic value	$ 4,700

Stock Based Compensation - Schedule of Exercise Price Range (Details) shares in Thousands	3 Months Ended
	Mar. 31, 2024 $ / shares shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock options outstanding, number (shares) \| shares	57
Stock options outstanding, weighted average remaining contractual term (in years)	8 years
Stock options outstanding, weighted average exercise price (USD per share)	$ 9.41
Stock options exercisable, vested and exercisable (shares) \| shares	44
Stock options exercisable, weighted average exercise price (USD per share)	$ 11.55
$2.03-$3.32
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock options outstanding, number (shares) \| shares	48
Stock options outstanding, weighted average remaining contractual term (in years)	9 years 3 months 18 days
Stock options outstanding, weighted average exercise price (USD per share)	$ 2.68
Stock options exercisable, vested and exercisable (shares) \| shares	35
Stock options exercisable, weighted average exercise price (USD per share)	$ 2.91
Exercise price, minimum (USD per share)	2.03
Exercise price, maximum (USD per share)	$ 3.32
$46.80
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock options outstanding, number (shares) \| shares	9
Stock options outstanding, weighted average remaining contractual term (in years)	8 months 12 days
Stock options outstanding, weighted average exercise price (USD per share)	$ 46.80
Stock options exercisable, vested and exercisable (shares) \| shares	9
Stock options exercisable, weighted average exercise price (USD per share)	$ 46.80
Exercise price, (USD per share)	$ 46.8

Stock Based Compensation - Warrant Activity (Details) - Warrant [Member] - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2024	Dec. 31, 2023
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Outstanding and vested at the begining of the period (in shares)	32
Granted (in shares)	0
Expired (in shares)	0
Outstanding and vested at the ending of the period (in shares)	32	32
Outstanding and vested at the ending of the period (in dollars per share)	$ 52.5	$ 52.5
Granted (in dollars per share)	0
Expired (in dollars per share)	$ 0
Weighted average remaining contractual term (in years)	8 months 12 days	1 year
Aggregate intrinsic value (in dollars)	$ 0	$ 0

Segment Results - Additional Information (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2024 USD ($) Segment	Dec. 31, 2023 USD ($)
Segment Reporting Information [Line Items]
Number of primary reporting segments \| Segment	2
Description of primary reporting segments	(i) Real Estate Services, which consists of the leasing and subleasing of long-term care and senior living facilities to third-party tenants, including the Company's management of three facilities on behalf of third-party owners which ended on December 31, 2023; and (ii) Healthcare Services, which consists of the operation of the Meadowood and Glenvue facilities.
Assets	$ 61,225	$ 62,181
Real Estate Services
Segment Reporting Information [Line Items]
Assets	48,000	48,500
Healthcare Services Segment
Segment Reporting Information [Line Items]
Assets	$ 13,200	$ 13,700

Segment Results - Summary of Results of Operations for Reporting Segments (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Revenues:
Total revenues	$ 4,127	$ 3,906
Rental revenues	1,818	1,708
Expenses:
Patient care expense	2,101	2,321
Facility rent expense	149	149
Cost of management fees	0	141
Depreciation and amortization	511	510
General and administrative expense	1,632	1,531
Doubtful accounts expense	28	16
Total expenses	4,421	4,668
Loss from operations	(294)	(762)
Other expense:
Interest expense, net	674	680
Other (income) expense, net	(6)	550
Total other expense, net	668	1,230
Net loss	(962)	(1,992)
Patient Care Revenues
Revenues:
Total revenues	2,309	1,916
Management Fees
Revenues:
Total revenues		278
Other Revenues
Revenues:
Total revenues		4
Real Estate Services
Revenues:
Total revenues	1,818	1,990
Rental revenues	1,818	1,708
Expenses:
Facility rent expense	149	149
Cost of management fees		141
Depreciation and amortization	386	387
General and administrative expense	1,266	1,181
Total expenses	1,801	1,858
Loss from operations	17	132
Other expense:
Interest expense, net	570	571
Other (income) expense, net	(22)	332
Total other expense, net	548	903
Net loss	(531)	(771)
Real Estate Services \| Management Fees
Revenues:
Total revenues		278
Real Estate Services \| Other Revenues
Revenues:
Total revenues		4
Healthcare Services Segment
Revenues:
Total revenues	2,309	1,916
Expenses:
Patient care expense	2,101	2,321
Depreciation and amortization	125	123
General and administrative expense	366	350
Doubtful accounts expense	28	16
Total expenses	2,620	2,810
Loss from operations	(311)	(894)
Other expense:
Interest expense, net	104	109
Other (income) expense, net	16	218
Total other expense, net	120	327
Net loss	(431)	(1,221)
Healthcare Services Segment \| Patient Care Revenues
Revenues:
Total revenues	$ 2,309	$ 1,916

Regional Health Properties (AMEX:RHE)
Historical Stock Chart
From May 2024 to Jun 2024

Click Here for more Regional Health Properties Charts.

Regional Health Properties (AMEX:RHE)
Historical Stock Chart
From Jun 2023 to Jun 2024

Market Data

News

Trading Tools

Markets

Discover

Hot Features

Follow Feed

Options Flow

Monitor

RHE Regional Health Properties Inc

Latest RHE Messages

Loading Messages....

Regional Health Properties Inc News

Loading Messages....

Your Recent History

Company

Business

Popular

Get The App

Trending Now

Toplists

Market Data

News

Trading Tools

Markets

Discover

Hot Features

Follow Feed

Options Flow

Monitor

RHE Regional Health Properties Inc

Latest RHE Messages

Loading Messages....

Regional Health Properties Inc News

Loading Messages....

Your Recent History

Company

Business

Popular

Get The App