Risk Factors Update Summary

• The company completed a 2024 Private Placement, selling 5,026,318 shares at $9.50 per share.
• The company entered into an investor agreement with stockholders, allowing designations for directors.
• Long-lived asset valuation changed from $615 million to $588 million. This change might indicate a change in asset valuation.
• The Company did not declare dividends on Series A Preferred Stock, adding $5.0 million to the liquidation preference.
• Obtained additional debt proceeds through existing finance facility with Ally Bank for remaining purchase price. This change might result in increased financial flexibility and liquidity.
• Weighted average shares outstanding increased from 6,359 to 6,786.
• The Company increased its federal deferred tax provision from $253 to $583.
• The company amended loan agreements with Protective Life, transferring ownership of two properties for $40.2 million.
• Accrued and unpaid dividends increased from $2.3 million to $5.0 million over two years.
• Added Sonida Senior Living, Inc. Compensation Recovery Policy. This change might impact executive compensation practices.
• Recognized a non-cash impairment charge of $1.6 million related to one owned community. This change might result in decreased asset value.
• Net loss decreased from $54.4 million to $21.1 million. This change might indicate an improvement in financial performance.
• The Company recognized $4.3 million in stock-based compensation expense for fiscal year 2022.
• Diluted net income per share decreased from $3.85 to $3.85.
• Managed community reimbursement revenue decreased by $13.6 million, or 33.2%. This change might result in reduced revenue streams.
• Non-labor operating expenses decreased by approximately $0.8 million, or 6.8%, compared to the prior year.
• Reporting date changed from 2023 to 2024 in various sections. This change is significant for the accuracy of the financial statements.
• The company recognized a gain of $36.3 million on debt extinguishments for the year ended December 31, 2023.
• Number of senior housing communities decreased from 72 to 71. This change might indicate a change in the company's operational footprint.
• The Company's federal net operating loss carryforwards increased from $355 million to $389 million.
• The Company recognized a non-cash impairment charge of $6.0 million for one owned community.
• Impairment charge increased from $6.0 million to $6.5 million. This change might reflect a significant impairment in assets.
• Operating expenses decreased by $91.4 million, or 33.8%. This change might result in improved cost management.
• The company deferred $1.6 million in rent payments pursuant to the Healthpeak Forbearance, included in notes payable.
• Total cash, cash equivalents, and restricted cash decreased from $30.7 million to $17.7 million. This change might impact liquidity and financial flexibility.
• Financing activities resulted in a decrease of $5.6 million. This change might result in altered capital structure.
• The Company recorded a non-cash impairment charge of $6.0 million for property and equipment in 2023.
• Property and equipment, net decreased from $615,754 to $588,179.
• The Company entered into a new SOFR-based interest rate cap transaction for $88.1 million.
• Net cash provided by operating activities increased by $13.8 million. This change might result in improved cash flow.
• The Company raised approximately $154.8 million through the issuance of Series A Preferred Stock.
• The Company's total deferred tax assets increased from $99 million to $100.9 million.
• Net cash used in investing activities decreased by $26.5 million. This change might result in reduced capital expenditures.
• The Company recognized a gain on debt extinguishment of $36.3 million for the year ended December 31, 2023.
• The Company made equity draws of $6.0 million in July 2023 and $4.0 million in November 2023.