REGIONAL HEALTH PROPERTIES, INC [RHE-PA] Filings

10-Q 1 rhe-20230930.htm 10-Q 10-Q

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 September 30, 2023

☐ 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 November 14, 2023 the registrant had 1,883,028 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 September 30, 2023 and December 31, 2022	3
	Consolidated Statements of Operations for the three and nine months ended September 30, 2023 and 2022	4
	Consolidated Statements of Stockholders' Equity for the three and nine months ended September 30, 2023 and 2022	5
	Consolidated Statements of Cash Flows for the nine months ended September 30, 2023 and 2022	6
	Notes to Unaudited Consolidated Financial Statements	8
Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	29
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	38
Item 4.	Controls and Procedures	38

Part II.	OTHER INFORMATION

Item 1.	Legal Proceedings	38
Item 1A.	Risk Factors	38
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	41
Item 3.	Defaults upon Senior Securities	41
Item 4.	Mine Safety Disclosures	41
Item 5.	Other Information	41
Item 6.	Exhibits	41

Signatures		44

Part I. Financial Information

Item 1. Financial Statements

REGIONAL HEALTH PROPERTIES, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(Amounts in 000's)


	September 30, 2023			December 31, 2022

	(Unaudited)
ASSETS
Property and equipment, net	$	45,806		$	46,611
Cash		1,427			843
Restricted cash		3,208			3,066
Accounts receivable, net of allowances of $1,579 and $1,298		2,035			6,289
Prepaid expenses and other		903			746
Notes receivable		1,060			1,099
Intangible assets - bed licenses		2,471			2,471
Intangible assets - lease rights, net		92			110
Right-of-use operating lease assets		2,588			2,848
Goodwill		1,585			1,585
Lease deposits and other deposits		4			—
Straight-line rent receivable		2,830			2,912
Total assets	$	64,009		$	68,580
LIABILITIES AND EQUITY
Senior debt, net	$	44,208		$	45,163
Bonds, net		5,989			6,120
Other debt, net		1,181			895
Accounts payable		2,783			3,293
Accrued expenses		4,806			5,036
Operating lease obligation		2,948			3,226
Other liabilities		1,707			1,131
Total liabilities		63,622			64,864

Stockholders' equity:
Common stock and additional paid-in capital, no par value; 55,000 shares authorized; 1,894 and 1,793 shares issued and 1,883 and 1,784 shares outstanding at September 30, 2023 and December 31, 2022, respectively		63,023			62,702
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 September 30, 2023, with a redemption amount $426 at September 30, 2023; 5,000 shares authorized, 2,812 shares issued and outstanding at December 31, 2022, with a redemption amount of $70,288		426			62,423
Preferred stock, Series B, no par value; 2,812 shares authorized; 2,252 shares issued and outstanding at September 30, 2023, with a redemption amount $18,602 at September 30, 2023; no shares authorized, issued and outstanding at December 31, 2022		18,602			—
Accumulated deficit		(81,664	)		(121,409	)
Total stockholders' equity		387			3,716
Total liabilities and stockholders' equity	$	64,009		$	68,580

See accompanying notes to unaudited consolidated financial statements.

REGIONAL HEALTH PROPERTIES, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(Amounts in 000's, except per share data)

(Unaudited)


	Three Months Ended September 30,						Nine Months Ended September 30,
	2023			2022			2023			2022
Revenues:
Patient care revenues	$	2,136		$	7,769		$	6,577		$	14,650
Rental revenues		1,739			3,000			5,170			10,326
Management fees		263			255			788			774
Other revenues		—			6			107			20
Total revenues		4,138			11,030			12,642			25,770
Expenses:
Patient care expense		2,313			7,476			7,010			14,040
Facility rent expense		149			1,451			446			4,725
Cost of management fees		156			140			442			459
Depreciation and amortization		526			600			1,738			1,819
General and administrative expense		972			1,378			3,190			3,432
Doubtful accounts expense		229			1,515			269			3,742
Other operating expenses		197			441			511			1,409
Total expenses		4,542			13,001			13,606			29,626
Loss from operations		(404	)		(1,971	)		(964	)		(3,856	)
Other (income) expense:
Interest expense, net		708			564			2,066			1,855
Other (income) expense, net		(139	)		(2,164	)		620			(1,088	)
Total other (income) expense, net		569			(1,600	)		2,686			767
Net loss	$	(973	)	$	(371	)	$	(3,650	)	$	(4,623	)
Preferred stock dividends - undeclared		—			(2,249	)		—			(6,748	)
Preferred stock dividends - gain on extinguishment		—			—			43,395			—
Net profit (loss) attributable to Regional Health Properties, Inc. common stockholders	$	(973	)	$	(2,620	)	$	39,745		$	(11,371	)
Net profit (loss) per share of common stock attributable to Regional Health Properties, Inc.
Basic:	$	(0.52	)	$	(1.48	)	$	21.18		$	(6.40	)
Diluted:	$	(0.52	)	$	(1.48	)	$	21.18		$	(6.40	)
Weighted average shares of common stock outstanding:
Basic:		1,883,028			1,768,720			1,876,138			1,775,637
Diluted:		1,883,028			1,768,720			1,876,138			1,775,637

See accompanying notes to unaudited consolidated financial statements.

REGIONAL HEALTH PROPERTIES, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY

(Amounts in 000's)

(Unaudited)


	Shares of Common Stock Outstanding		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, 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
Extinguishment of Series A Preferred Stock				(2,252	)		—		—			—		(61,997	)		—		—			(61,997	)
Exchange of Series A to Series B		—		—			2,252		—			—		—			18,602		43,395			61,997
Stock-based compensation		—		—			—		—			155		—			—		—			155
Forfeitures of stock-based awards				—			—		(2	)		—		—			—		—			—
Net loss		—		—			—		—			—		—			—		(685	)		(685	)
Balances, June 30, 2023		1,883		560			2,252		(11	)	$	62,938	$	426		$	18,602	$	(80,691	)	$	1,275
Stock-based compensation		—		—			—		—			85		—			—		—			85
Net loss		—		—			—		—			—		—			—		(973	)		(973	)
Balances, September 30, 2023		1,883		560			2,252		(11	)	$	63,023	$	426		$	18,602	$	(81,664	)	$	387


	Shares of Common Stock Outstanding			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, 2021		1,775			2,812		—		(1	)	$	62,515		$	62,423	$	—	$	(114,542	)	$	10,396
Restricted stock issuance		24			—		—		—			—			—		—		—			—
Stock-based compensation		—			—		—		—			111			—		—		—			111
Exercise of restricted share awards net settlement option		—			—		—		(8	)		(46	)		—		—		—			(46	)
Net loss		—			—		—		—			—			—		—		(2,927	)		(2,927	)
Balances, March 31, 2022		1,799			2,812		—		(9	)	$	62,580		$	62,423	$	—	$	(117,469	)	$	7,534
Forfeitures of stock-based awards		(30	)		—		—		—			4			—		—		—			4
Net loss		—			—		—		—			—			—		—		(1,325	)		(1,325	)
Balances, June 30, 2022		1,769			2,812		—		(9	)	$	62,584		$	62,423	$	—	$	(118,794	)	$	6,213
Stock-based compensation		—			—		—		—			58			—		—		—			58
Net loss		—

REGIONAL HEALTH PROPERTIES, INC [RHE-PA] Filings
REGIONAL HEALTH PROPERTIES, INC [RHE] Filings
REGIONAL HEALTH PROPERTIES, INC [RHEPB] Filings
10-Q	[2023-11-14]
10-Q	[2023-08-18]
10-Q	[2023-05-15]
10-K	[2023-04-14]
10-Q	[2022-11-22]
10-Q	[2022-08-23]
10-Q	[2022-05-31]
10-K	[2022-02-22]
10-Q	[2021-11-12]
10-Q	[2021-08-13]
10-Q	[2021-05-14]
10-K	[2021-03-29]
10-Q	[2020-11-13]
10-Q	[2020-08-11]
10-Q	[2020-06-11]
10-K	[2020-03-27]
10-Q	[2019-11-12]
10-Q	[2019-08-14]
10-Q	[2019-06-18]
10-K	[2019-05-17]
10-Q	[2018-11-14]
10-Q	[2018-08-14]
10-Q	[2018-05-21]
10-K	[2018-04-16]
10-Q	[2017-11-14]
10-Q	[2017-08-14]
10-Q	[2017-05-15]
10-K	[2017-04-17]
10-Q	[2016-11-14]
10-Q	[2016-08-15]
10-Q	[2016-05-16]
10-K	[2016-03-30]
10-Q	[2015-11-16]
10-Q	[2015-08-13]
10-Q	[2015-05-14]
10-K	[2015-03-31]
10-Q	[2014-11-13]
10-Q	[2014-08-11]
10-Q	[2014-05-08]
10-K	[2014-03-31]
S-1	[2013-12-31]
10-Q	[2013-11-14]
10-Q	[2013-08-14]
S-1	[2013-07-29]
10-Q	[2013-07-26]
10-K	[2013-07-08]
10-Q	[2012-11-13]
10-Q	[2012-08-07]
10-Q	[2012-05-10]
10-K	[2012-03-19]

REGIONAL HEALTH PROPERTIES, INC [RHE-PA] Filings

REGIONAL HEALTH PROPERTIES, INC [RHE] Filings

REGIONAL HEALTH PROPERTIES, INC [RHEPB] Filings