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Regional Health (RHEP-12.61%) has submitted its 10-K filing for the fiscal year ended December 31, 2024.
The filing reveals that Regional Health is facing challenges including the suspension of its common stock and Series A Preferred Stock from trading on the NYSE American due to not meeting certain listing requirements. The securities are now traded on the OTC Market.
Regional Health reported a net loss of $3.2 million for the year ended December 31, 2024, compared to a net loss of $3.9 million in the previous year. The loss was attributed to increased patient care expenses and other operational costs.
Patient care revenues increased by 27.6% to $11.3 million, while rental revenues slightly decreased to $7.0 million. Management fees were not reported as the contract ended in 2023.
Regional Health's liquidity is supported by cash on hand, accounts receivable, and potential debt refinancing. As of December 31, 2024, the company had $0.6 million in cash and $3.4 million in net accounts receivable.
The company has entered into a merger agreement with SunLink Health Systems, Inc., where SunLink will merge with and into Regional Health. The merger is subject to shareholder and regulatory approvals.
Regional Health's debt stood at $49.7 million as of December 31, 2024, with anticipated principal repayments of approximately $7.0 million in the next twelve months.
Regional Health is pursuing measures to grow its operations, streamline costs, and increase liquidity, including refinancing debt and increasing lease revenue through acquisitions.
The company is a defendant in various legal actions, including professional and general liability claims related to its former operations. The company maintains insurance for these claims.
Regional Health's management believes it is probable that the company will be able to meet its obligations arising within one year of the issuance of its financial statements.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Regional Health annual 10-K report dated March 31, 2025. To report an error, please email earnings@qz.com.