Financial Analysis

11. COMMITMENTS AND CONTINGENCIES General and Professional Liability Insurance and Lawsuits The senior care industry has experienced significant increases in both the number of personal injury/wrongful death claims and in the severity of awards based upon alleged negligence by skilled nursing facilities and their employees in providing care to residents. The Company has been, and continues to be, subject to claims and legal actions that arise in the ordinary course of business, including potential claims related to patient care and treatment. The defense of these lawsuits may result in significant legal costs, regardless of the outcome, and can result in large settlement amounts or damage awards. The Company purchases insurance through third party providers that provides coverage for these claims. There is certain additional litigation incidental to our business, none of which, based upon information available to date, would be material to our financial position, results of operations, or cash flows. In addition, the longterm care industry is continuously subject to scrutiny by governmental regulators, which could result in litigation or claims related to regulatory compliance matters. Governmental Regulations Laws and regulations governing the Medicare, Medicaid and other federal healthcare programs are complex and subject to interpretation. Management believes that it is following all applicable laws and regulations in all material respects. However, compliance with such la …

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3. DEBT AND DEBT RELATED PARTIES The following is a summary of the Companys debt and debt related parties outstanding as of December 31, 2025 and 2024: SCHEDULE OF DEBT OUTSTANDING December 31, 2025 December 31, 2024 Senior Secured Promissory Notes $ 1,591,238 $ 1,025,000 Senior Secured Promissory Notes - Related Parties 775,000 750,000 Fixed-Rate Mortgage Loans 24,258,870 25,152,756 Variable-Rate Mortgage Loans 4,485,462 4,675,991 Line of Credit 325,192 799,752 Other Debt, Subordinated Secured - 173,500 Other Debt, Subordinated Secured - Seller Financing - 7,957 Total 31,435,762 32,584,956 Unamortized Discount and Debt Issuance Costs (435,200 ) (451,936 ) Total debt, net of discount $ 31,000,562 $ 32,133,020 As presented in the Consolidated Balance Sheets: Current Maturities of Long-Term Debt, Net $ 10,938,102 $ 11,450,406 Current Maturities of Long-Term Debt, Net classified within liabilities held for sale (1) 5,554,463 - Short Term Debt Related Parties, Net 775,000 750,000 Line of Credit - Current 325,192 799,752 Long-Term Debt 13,407,805 19,132,862 (1) $ 5,554,463 is classified within Liabilities held for sale within the consolidated balance sheet which is the short-term classified debt attributable to our two Georgia facilities (See Notes 9 and 12). The weighted average interest rate and term of our fixed rate debt are 6.21 % and 13.76 years, respectively, as of December 31, 2025. The weighted average interest rate and term of our variable rate debt are 8.35 % and 12.12 …

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7. INCOME TAXES The following is the breakdown of the Companys income tax expenses for the years ended: SCHEDULE OF INCOME TAX EXPENSES Income Tax Expense: December 31, 2025 December 31, 2024 Current Federal $ - $ - Current State 800 - Current Income Tax Expenses 800 - Deferred Federal - - Deferred State - - Deferred Income Tax Expense - - Total Income Tax Expense $ 800 $ - The Company and its subsidiaries are subject to income taxes on income arising in, or derived from, the tax jurisdictions in which they operate. The Company files federal, Alabama, Arkansas, Colorado, Georgia, Ohio and Oklahoma income tax returns. The Company is current with all its federal and state tax filings. The 2020 through 2023 tax years generally remain subject to examination by the IRS and various state taxing authorities, although the Company is not currently under examination in any jurisdiction. The following is a reconciliation of the federal statutory tax rate and the effective tax rate as a percentage and dollars for the years ended December 31, 2025 and 2024: SCHEDULE OF EFFECTIVE INCOME TAX RATE RECONCILIATION 2025(%) 2024(%) Statutory Federal Income Tax Rate (21.00 )% (21.00 )% Prior Year True-ups (6.69 )% (1.31 )% Permanent Difference 2.20 % 0.24 % State Taxes 0.06 % (2.98 )% Other - % 4.34 % Change in Valuation Allowance 25.51 % 20.71 % Effective tax rate 0.08 % - % 2025 ($) 2024 ($) Statutory Federal Income Tax Rate (213,140 ) (509,032 ) Prior Year True-ups (67,850 ) (31,641 ) Permanen …

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10. LEGAL PROCEEDINGS The Company and/or its affiliated subsidiaries provide patient care at or through their facilities. As such, the Company and its affiliated subsidiaries are subject from time to time to claims of negligence resulting in injury or death to residents. The Company maintains comprehensive general liability insurance and professional liability insurance in sufficient amounts to cover most material exposure resulting from these claims. The cost of defense is generally covered by these liability policies subject to reasonable reserves and deductibles. Nevertheless the Company does have exposure to these claims which in some cases can be material. There can be no assurance that the Companys portfolio of insurance products will be adequate to cover all potential exposure or prevent material adverse financial losses. The following represent some of the matters pending as of the date of this Report: Hines v. Global Abbeville LLC, d/b/a Glen Eagle, et al, Superior Court of Warren County, State of Georgia, Civil Action No.2023-CV-094 This is a personal injury lawsuit filed on September 11, 2023 against various defendants arising from injuries several months after being admitted to the Glen Eagle facility. The complaint alleges that the facility was negligent in the care administered to the plaintiff which resulted in the injuries, which the Company denies. The Company has referred the litigation to its insurance company for management and believes that its exposure i …

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6. FACILITY LEASES The following table summarizes our leasing arrangements related to the Companys healthcare facilities at December 31, 2024: SCHEDULE OF FACILITY LEASE Monthly Lease Facility Lease Income (1) Expiration Renewal Option if Any Goodwill Hunting LLC (1) $ 52,976 February 1, 2027 Term may be extended for one additional five-year term (1) As a result of the sale of Goodwill Hunting LLC on June 18, 2024 the Company had no more operating leases recorded on its consolidated balance sheet. Lessees were responsible for payment of insurance, taxes, and other charges while under the lease. Should the lessees not pay all such charges as required under the leases, or if there is no tenant, the Company may become liable for such operating expenses. We have been required to cover those expenses at Glen Eagle as well as the Southern Hills SNF, ALF and ILF, Meadowview, Higher Call, Edwards, Fairland, Sparta, and Warrenton properties. …

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Recently Adopted Accounting Pronouncements In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvement to Income Tax Disclosures, amending income tax disclosure requirements for the effective tax rate reconciliation and income taxes paid. The amendments in ASU 2023-09 are effective for fiscal years beginning after December 15, 2024 and are applied prospectively. Early adoption and retrospective application of the amendments are permitted. The Company adopted ASU 2023-09 on January 1, 2025 on a prospective basis. The adoption of this standard did not have a material impact on the Companys consolidated financial statements. …

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4. STOCKHOLDERS EQUITY Preferred Stock The Company has authorized 10,000,000 shares of preferred stock. These shares may be issued in series with such rights and preferences as may be determined by the board of directors. Series A Convertible Redeemable Preferred Stock The Companys Board of Directors has authorized 2,000,000 shares of $ 2.00 stated value, Series A Preferred Stock. The preferred stock has a senior liquidation preference value of $ 2.00 per share and does not bear dividends. As of December 31, 2025 and 2024, the Company has 200,500 shares of Series A Preferred Stock outstanding. Series D Convertible Preferred Stock The Company has established a class of preferred stock designated Series D Convertible Preferred Stock (Series D preferred stock) and authorized an aggregate of 1,000,000 non-voting shares with a stated value of $ 1.00 per share. Holders of the Series D preferred stock are entitled to receive dividends at the annual rate of 8 % based on the stated value per share computed on the basis of a 360-day year and twelve 30-day months. Dividends are cumulative, shall be declared quarterly, and are calculated from the date of issue and payable on the 15th day of April, July, October, and January. The dividends may be paid, at the option of the holder either in cash or by the issuance of shares of the Companys common stock valued at the market price on the dividend record date. Shares of the Series D preferred stock are redeemable at the Companys option. At th …

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12. SUBSEQUENT EVENTS January 2026 Purchase and Sale Agreement On January 15, 2026, the Companys subsidiaries ATL/WARR, LLC and PROVIDENCE HR, LLC, each a Georgia limited liability company (the Sellers), consummated the January 2026 PSA with the Purchaser Pursuant to the January 2026 PSA, each Seller agreed to sell substantially all of the real and personal property owned by each ( the Disposition), namely the skilled nursing facilities located at (i) 60 Providence Street, Sparta, Georgia, 31087, upon which is located that certain 71-bed skilled nursing facility commonly known as Providence of Sparta Health and Rehabilitation (the Sparta Facility), and (ii) 813 Atlanta Highway, Warrenton, Georgia, 30828, upon which is located that certain 110-bed skilled nursing facility commonly known as Warrenton Health and Rehabilitation (the Warrenton Facility and together with the Sparta Facility, the Facilities). The purchase price paid by Purchaser for the two (2) Facilities under the PSA was an aggregate of $ 13.2 million, subject to certain prorations, holdbacks and adjustments customary in transactions of this nature. The Purchaser had a balance of $ 1.3 million of escrow established at closing, which may be released to Sellers in the future unless Purchaser asserts claims for indemnity under the PSA. The Sellers retained the right to pursue and collect amounts from tenants relating to pre-closing periods (including amounts relating to pre-closing periods that have been deferred and …

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