Debt and Debt - Related Parties (Tables)

12 Months Ended

Dec. 31, 2020

Debt Disclosure [Abstract]

Schedule of Debt Instruments

The following is a summary of the Company’s debt and debt – related parties outstanding as of December 31, 2020 and 2019:

	2020			2019
Senior Secured Promissory Notes	$	1,695,000		$	1,485,000
Senior Unsecured Promissory Notes		-			300,000
Senior Secured Promissory Notes - Related Parties		975,000			875,000
Fixed-Rate Mortgage Loans		30,370,220			22,427,949
Variable-Rate Mortgage Loans		5,650,578			4,618,006
Line of Credit, Senior Secured		-			7,230,582
Other Debt, Subordinated Secured		741,000			1,386,000
Other Debt, Subordinated Secured – Related Parties		150,000			150,000
Other Debt, Subordinated Secured – Seller Financing		125,394
		39,707,192			38,472,537
Premium, Unamortized Discount and Debt Issuance Costs		(455,827	)		(493,353	)
	$	39,251,366		$	37,979,184
As presented in the Consolidated Balance Sheets:
Debt, Net	$	38,129,600		$	36,954,184
Debt - Related Parties, Net	$	1,121,766		$	1,025,000
	$	39,251,366		$	37,979,184

Schedule of Weighted Average Assumptions

The value of the warrants issued to the note holders during the year ended December 31, 2020 was calculated using the Black-Scholes pricing model using the following significant assumptions:

Volatility		115.2% - 119.4	%
Risk-free Interest Rate		0.13% - 1.45	%
Exercise Price	$	0.50
Fair Value of Common Stock	$	0.20 - $0.24
Expected Life		1.0 – 1.8 years

Schedule of Mortgage Loan Debt

Mortgage loans for the periods presented consisted of the following:

					Total Principle Outstanding as of
State	Number of Properties		Total Face Amount		12/31/2020		12/31/2019
Arkansas(1)		1	$	5,000,000	$	4,618,006	$	4,618,006
Georgia(2)		5	$	17,765,992	$	17,029,094	$	17,483,791
Ohio		1	$	3,000,000	$	2,798,000	$	2,869,200
Oklahoma(3)		6	$	12,378,599	$	11,575,699	$	9,305,540
		13	$	38,144,591	$	36,020,799	$	34,276,537

(1)	The mortgage loan collateralized by this property is 80% guaranteed by the USDA and requires an annual renewal fee payable in the amount of 0.25% of the USDA guaranteed portion of the outstanding principal balance as of December 31 of each year. Guarantors under the mortgage loan include Christopher Brogdon. With our consent, Mr. Brogdon has assumed operations of the facility and is making payment of interest on the loan.
(2)	In 2021, the Company has two mortgages maturing totaling $6,326,598. Management is actively working with our lenders to either, refinance for better terms or extend these notes.
(3)	In 2021, the Company has three  mortgages maturing totaling $2,609,331. As with our Georgia facilities, management is actively working with our lenders to either refinance for better terms or extend the current note.

Schedule of Other Debt

Other debt due at December 31, 2020 and 2019 includes unsecured notes payable issued to entities controlled by the Company used to facilitate the acquisition of the nursing home properties.

			Principal Outstanding at
Property	Face Amount		December 31, 2020		December 31, 2019		Stated Interest Rate	Maturity Date
Goodwill Nursing Home (1)	$	2,030,000	$	741,000	$	1,386,000	13% (1) Fixed	December 31, 2019
Goodwill Nursing Home (1)	$	150,000	$	150,000		150,000	13% (1) Fixed	December 31, 2019
Higher Call Nursing Center (2)		150,000		125,394		-	8% Fixed	April 1, 2024
			$	1,016,394	$	1,536,000

(1)

On June 30, 2020, the Company purchased notes from four former investors in GWH Investors, LLC in favor of Goodwill Hunting, LLC in the aggregate amount of $482,400 for $402,000 cash and recognized a gain of $80,400. On October 30, 2020, the Company purchased from two more investors an aggregate amount of $108,000 for $90,000 of cash and recognized a gain of $18,000. On November 20, 2020, the Company purchased from two additional investors an aggregate amount of $54,600 for $45,500 cash and recognized a gain of $9,100.

(2)

In connection with the acquisition of Higher Call, the Company executed a promissory note in favor of the Seller, Higher Call Nursing Center, Inc., in the principal amount of $150,000 which accrues interest at the rate of 8% per annum and is payable in equal monthly installments, principal and interest. This note is secured by a corporate guaranty of Global.

Schedule of Unsecured Notes and Notes Secured by All Assets

Our corporate debt at December 31, 2020 and December 31, 2019 includes unsecured notes and notes secured by all assets of the Company not serving as collateral for other notes.

			Principal Outstanding at
Series	Face Amount		December 31, 2020		December 31, 2019		Stated Interest Rate	Maturity Date
10% Senior Secured Promissory Note	$	25,000	$	25,000	$	25,000	10.0% Fixed	December 31, 2018
10% Senior Unsecured Promissory Notes		300,000		-		300,000	10.0% Fixed	October 31, 2020
11% Senior Secured Promissory Notes		1,670,000		1,670,000		1,460,000	11.0% Fixed	October 31, 2021
11% Senior Secured Promissory Notes – Related Party		975,000		975,000		875,000	11.0% Fixed	October 31, 2021
			$	2,670,000	$	2,660,000

Schedule of Future Maturities of Notes Payable

Future maturities and principal payments of all notes and bonds payable listed above for the next five years and thereafter are as follows:

Years
2021	$	20,425,870	(1)
2022		547,052
2023		7,214,322
2024		381,508
2025		4,483,421
2026 and after		6,655,020
	$	39,707,193

(1) Any note or bond that is not in compliance with all financial and non-financial covenants is considered to have an immediate maturity, including those that require compliance with covenants on any and all other notes. The notes secured by Meadowview, Abbeville, and GL Nursing have covenants which were in technical non-compliance at December 31, 2020, but the Company believes that its relationships with these lenders are good.