[1]

Monthly lease income reflects rent income on a straight-line basis over, where applicable, the term of each lease.

[2]

On October 18, 2019, the Company terminated the lease at its Eastman property. A Receivership was appointed to assume the operations of the facility. The receivership was discharged on July 1, 2020 and the Company is currently operating the building independently.

[3]

The lease became effective on February 1, 2017, and the facility began generating rental revenue thereafter.

[4]

Cadence, our former lease operator, informed the Company that it intended to close the Edwards Redeemer facility due to unprofitable operations. In violation of the operating lease, Cadence began moving patients from the facility and, as of October 18, 2019, all patients had been removed. In response to our Petition, on October 17, 2019, the District Court of Oklahoma County, State of Oklahoma issued a Temporary Order Appointing Receiver (the "Order") pursuant to a Motion to Appoint Receiver filed by Edwards Redeemer Property Holdings, LLC ("Edwards Property"), a wholly-owned subsidiary of the Company, with respect as a skilled nursing facility. The Order was issued due to the violations by Cadence of the business-preservation obligations contained in the lease between Edwards Property and the Operator. The facility opened on March 26, 2021 to be operated by our newly formed wholly-owned subsidiary. During the year ended December 31, 2020 the Company recognized $150,000 in acquisition related expenses from the receivership.

[5]

On August 7, 2020, the facility was served with a Notice of Immediate Imposition of Remedies from the Centers for Medicare and Medicaid Services ("CMS"), as well as a Notice of Imposition of Remedies by the Ohio Department of Health ("ODH") ordering the facility to relocate all residents no later than August 9, 2020. The actions of the CMS and ODH were the result of ongoing operating deficiencies which the operator failed to cure. All residents of the Meadowview facility were relocated by the August 9, 2020 deadline, and as a result the facility has been closed. A newly created wholly-owned subsidiary has applied with the ODH for a new nursing home license which is pending. In September 2020, the ODH served notice to the former operator that it intended to commence proceedings to revoke the nursing license on the facility.

[6]

Effective January 1, 2016, the GL Nursing facility was leased to another operator for a period of ten years at a monthly base rent of $30,000 which was subject to increases based on census levels. Under the terms of the lease, the Company agreed to fund certain capital expenditures, which it was unable to fulfill. In July 2016, the new tenant served notice that it was terminating the lease effective August 31, 2016. The Company entered into a Lease Termination Agreement under which it paid the tenant $145,000 and is obligated to make future payments. Effective August 30, 2016, the Company entered into a new lease agreement with another nursing home operator. The lease term was to commence at the end of a straddle period. During the straddle period, the Company made working capital advances to enable the operator to cover cash flow deficits resulting from initial operations of the facility. Prior to the end of the straddle period, the lease operator informed the Company that it would vacate the facility. An entity affiliated with Mr. Brogdon, who is a guarantor of the mortgage, assumed operations of the facility in March 2018 under an OTA. Currently, this facility is not generating any income for the Company, all payments are being applied to debt services, we are unsure if the facility will generate any future revenue for the Company.

[7]

The Company entered into a management agreement to operate Glen Eagle after expending approximately $1.0 million in capital improvements. The facility passed its licensure survey and began admitting patients in June 2018. Effective October 12, 2018, the facility gained its certification and started collecting revenues from Medicare and Medicaid in April 2019. On October 17, 2019, the Company terminated its management agreement with the former operator and a wholly-owned subsidiary is currently operating the building independently.

[8]

In May 2019, the lease expired, and in July 2019 the facility was leased to Southern Hills Rehab Center LLC, a wholly owned subsidiary of the Company, to conduct operations. The approval of the transfer of the Certificates of Need and appropriate licenses to operate the facility was granted on December 1, 2019. The Company is currently operating the building independently.

[9]

The Company plans to operate the Southern Hills ALF independently once COVID-19 is brought under control.

[10]

The Company has been operating the Southern Hills Independent Living Facility (ILF) directly since September 2019. The facility does not provide healthcare services. It consists of private one- and two-bedroom units leased separately to individual tenants. The rollout of the ILF has been slowed due to COVID-19.

[11]

On March 1, 2020, the Company, through a wholly-owned subsidiary, completed its purchase transaction of the Higher Call property, and commenced healthcare and related operations.

[12]

On December 31, 2020 the Company, through a wholly-owned subsidiary, completed its purchase transaction of the Fairland property, and commenced healthcare and related operations.