Ethema Health Corporation Updates Shareholders on Financial Filings and Expansion Efforts

Ethema Health Corporation (OTCPINK: GRST) has recently updated its shareholders regarding delays in its public filings and shared interim financial results. The company faced audit-related delays for its 2024 10-K filing, which subsequently postponed the submission of its first-quarter results. However, the first-quarter review is currently in progress and is anticipated to be filed by the end of the month, enabling the timely filing of the second-quarter results. Ethema's application for listing on the new OTC-ID market was approved in June, contingent upon the filing of its first-quarter financials on form 10-Q. The company's current listing on the Pink market is set to transition to the Expert Market on July 18, 2025, with a return to the OTC-ID market following the first-quarter 10-Q filing.

The company reported revenues of approximately $3.5 million for the first quarter ended March 31, 2025, with $2.1 million attributed to its newly acquired Kentucky operations. Second-quarter revenues are estimated at $4.4 million, pending audit review. Ethema projects third-quarter revenues to reach $5.5 million, with an optimal efficiency target of $6.3 million in quarterly revenues. The company is nearing maximum efficiency levels and is exploring further expansion through acquisitions and organic growth.

In Florida, Ethema achieved re-certification for another three years by the Joint Commission, underscoring its commitment to quality care and regulatory compliance. The Boca Raton facility has reached full capacity, with Florida operations at 93% occupancy in July. The company is enhancing its properties and staff to improve customer experience. In Kentucky, Ethema has made significant progress in certification and listing with Managed Care Organizations for Medicaid, completing processes with Humana and Aetna, and anticipates inclusion in the Passport Molina system shortly. The company has also been approved as a provider by the Kentucky Department of Corrections, allowing client referrals to its ARIA Kentucky facility. With 347 licensed beds, 275 of which are operational, and an additional 36 beds for outpatients, Ethema's Kentucky operations are poised for growth, currently serving approximately 230 customers.

Shawn Leon, CEO of Ethema, commended the seamless integration of Kentucky operations and the exceptional results of the Joint Commission audit in Florida. The company remains focused on optimizing its assets in both states and increasing patient numbers to enhance profitability. Ethema Health Corporation continues to advance in the behavioral healthcare sector, specializing in substance use disorder treatment, with a commitment to developing world-class programs and techniques for North America.