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Subsequent Events
12 Months Ended
Dec. 31, 2020
Subsequent Events [Abstract]  
Subsequent Events

14. SUBSEQUENT EVENTS

 

Effective January 1, 2021, Christopher “Randy” Barker has been appointed as President and COO of the Company and will also serve as a member of its Board of Directors. Mr. Barker will replace Lance Baller who had been acting as the Company’s Interim President. In consideration of services rendered as President and COO of the Company, Mr. Barker shall be paid an annual salary of $125,000.

 

Effective January 1, 2021, Lance Baller resigned as Interim President of the Company but will remain as CEO and has also been appointed to serve as the Company’s Chairman of the Board. In consideration of services rendered as CEO of the Company, Mr. Baller shall be paid an annual salary of $125,000.

 

The Company has been a party to two operating leases covering its skilled nursing homes located in Warrenton, Georgia and Sparta, Georgia. The tenant entities under these two leases are affiliates of the same individual professional operator. Effective January 27, 2021, the Company served a Notice of Termination  under both of the foregoing leases. The Notice of Termination was based upon numerous events of default under both leases, including the tenant’s failure to pay required taxes which have been accruing. The Company expects both tenants to dispute the existence of events of default and object to the termination of the leases. There can be no assurance how these matters will be resolved. See Legal Proceedings above.

 

On January 28, 2021, the Company received the second round of PPP through the CARES Act. The Company was issued $675,598 for the Southern Hills IL facility. As with previous rounds, the Company intends to use the funds for payroll and plans to apply for forgiveness once the funds are exhausted in the second quarter of 2021.