Ethema Health Corp (GRST)

[Bubae]

Not knowing all the facts is why you conduct due diligence.. Assuming the worse about information found about an OTC ticker is the best defense when it comes to capital preservation.

Too many questions means that you look elsewhere for a trade in my opinion. Traders looking elsewhere means that the regulation "A" offering for desperately needed funds is not viable. Will anybody subscribe to the offering unless they believe that they will able to find retail traders to unload those shares in the very short term.

GRST - Not Knowing all the Facts....As Usual you Assume the worse!...

[janetcanada]

GRST - Not Knowing all the Facts....As Usual you Assume the worse!........It occur to you that you might not know all there is to know???.....But....

****You are the Best Judge!

***You are the Best Lawyer!

****You are the Best Financial Adviser!

***In your View as a Conclusion...........All Mr. Shawn Leon does it is Plain Wrong!!!

[Bubae]

The consequences of the lawsuit go beyond the question of culpability. The fact that the situation has been going on so long and hasn't been disclosed raises a lot or questions. The huge increase in professional fees in Q4 2022 and Q1 2023 with the deterioration of their cash during the same periods may indicate a material impact on the balance sheet that surely should have been disclosed.

The June Leonite note is secured by all assets of the company. How does the litigation impact their ability to negotiate this debt obligation. How will this impact the viability of the regulation "A" offering. How is it affecting their ability to secure new loans? They ended Q1 with only $28K in cash with no indication through subsequent events to the filing date that new funding has been secured.



For the quarterly period ended September 30, 2022
https://www.otcmarkets.com/filing/html?id=16200583&guid=2UT-kn10eYd-B3h
Q3 2022 cash Balance $561,083
Professional fees for Q3 $19,131

For the fiscal year ended: December 31, 2022
https://www.otcmarkets.com/filing/html?id=16535244&guid=tnu-kFMehiFUdth
Cash Balance end of 2022 $140,757
Total Professional fees 2022 $463,678

Q4 2022 professional fees $282,811

For the quarterly period ended March 31, 2023
https://www.otcmarkets.com/filing/html?id=16673787&guid=tnu-kFMehiFUdth
Cash Balance end of Q1 2023 $27,580
Professional fees $111,204 for Q1



For the quarterly period ended June 30, 2022
https://www.otcmarkets.com/filing/html?id=16018411&guid=5zm-kqGiKufgcVh

Leonite Fund I, LP

Effective June 1, 2022, The Company entered into a Note Exchange Agreement whereby

..., were exchanged for a new Senior Secured Convertible Promissory note in the principal amount of $745,375,... .

...The Note matures on March 1, 2023, and bears interest at the minimum of 10% per annum or the Wall Street Journal quoted prime rate plus 5.75%.

The convertible note is secured by all of the assets of Ethema Health Corporation and Addiction Recovery Institute of America, LLC.

June Leonite Note 8K
https://www.otcmarkets.com/filing/html?id=15961451&guid=5zm-kqGiKufgcVh

...The obligations of the Borrower under this Note are secured pursuant to the terms of the security and pledge agreement (The "Security and Pledge Agreement" and collectively the Purchase Agreement, the "Related Documents"...

[janetcanada]

GRST - In all Fairness.......There is a Presumption of Innocence Until Proven Guilty!.....

*** The presumption of innocence entails two essential elements, namely (1) that an accused must be proven guilty beyond a reasonable doubt, and (2) that the Crown bears the burden of establishing such guilt

***From The Filing: ***On The Legal Proceeding The Company Is Saying:

***We are currently not involved in any litigation that we believe could have a material adverse effect on our financial condition or results of operations. There is no action, suit, proceeding, inquiry or investigation before or by any court, public board, government agency, self-regulatory organization or body pending or, to the knowledge of the executive officers of our company or any of our subsidiaries, threatened against or affecting our company, our common stock, any of our subsidiaries or of our companies or our subsidiaries’ officers or directors in their capacities as such, in which an adverse decision could have a material adverse effect.

http://archive.fast-edgar.com/20230522/A72SN22C7222A9Z2222R2ZYYFAAJZ222B252/

==============================================================

***Company Assessment From Accredited Analyst***

- *** There is No Concerning Event Detected, *** -*** No Mention about a Law Suit by them either***!....

***The Company For the Nine Months, Sales was USD 3.59 million compared to USD 1.05 million a year ago.

***Pass
Have shareholders been diluted over the past year?

***Shareholders Have Not Been "Meaningfully" Diluted in the past year or recently listed

***Trading at 98.5% below our estimate of its fair value

***Became Profitable this year***

***SimplyWallStreet***

https://simplywall.st/stocks/us/healthcare/otc-grst/ethema-health - ***From Post #46312***

---------------------------------------------------------------------------------------------------

***Financial Times***

***https://markets.ft.com/data/equities/tearsheet/profile?s=GRST:PKC

***Income statement (USD)

Year on year Ethema Health Corp grew revenues 148.16% from 1.94m to 4.82m while net income improved from a loss of 1.54m to a gain of 247.88k.

***COMMITMENT***
It is fundamental to our integrity and success that we uphold the highest possible standards of ethical and professional journalism, and that we are seen to do so. The benchmark for the FT’s journalistic practices is set by our FT Editorial Code. Compliance with the code is an obligation for all FT editorial staff.

-------------------------------------------------------------------------------------------------

[

[Bubae]

Forgot to add the image of the page for the three attorneys. Click on image to enlarge.

[janetcanada]

GRST - INNOCENT UNTIL PROVEN GUILTY!!!

***Company Assessment From Accredited Analyst***

*** There is No Concerning Event Detected, *** -

***The Company For the Nine Months, Sales was USD 3.59 million compared to USD 1.05 million a year ago.

***Pass
Have shareholders been diluted over the past year?

***Shareholders Have Not Been "Meaningfully" Diluted in the past year or recently listed

***Trading at 98.5% below our estimate of its fair value

***Became Profitable this year

***SimplyWallStreet***
https://simplywall.st/stocks/us/healthcare/otc-grst/ethema-health - ***From Post #46312***

---------------------------------------------------------------------------------------------------

***Financial Times***
***https://markets.ft.com/data/equities/tearsheet/profile?s=GRST:PKC

***Income statement (USD)
Year on year Ethema Health Corp grew revenues 148.16% from 1.94m to 4.82m while net income improved from a loss of 1.54m to a gain of 247.88k.

***COMMITMENT***
It is fundamental to our integrity and success that we uphold the highest possible standards of ethical and professional journalism, and that we are seen to do so. The benchmark for the FT’s journalistic practices is set by our FT Editorial Code. Compliance with the code is an obligation for all FT editorial staff.

[Bubae]

I seriously doubt that he will comment on this subject in an email reply. I would also have to believe that they have been monitoring online conversations for a very long time by now. I have been posting for months that it makes no sense that they haven't moved sooner to make the regulation "A" offering viable. The legal revelations concerning the treatment center clears this mystery up for me.

I would think that there would be legal ramifications for not disclosing this information while raising funds through equity sales. I see three attorneys listed in the case filing representing the treatment center Evernia Health. Is Ethema Health ($GRST) paying for the legal fees for their subsidiary? Reference my earlier post added below.

Professional Fees post
https://investorshub.advfn.com/boards/read_msg.aspx?message_id=171995760
Friday, May 26, 2023 6:11:00 AM
Post# 47033 of 47038

Year ended December 31, 2022
https://www.otcmarkets.com/filing/html?id=16535244&guid=lKu-kF1BswL2zch

Professional fees 2022 $463,678

Q4 2022 professional fees $282,811


Three months ended March 31, 2023
https://www.otcmarkets.com/filing/html?id=16673787&guid=Mqu-kFsYtmI-B3h

Professional fees $111,204

[janetcanada]

GRST - I did forwarded Bubae Message # 47037 to Mr. Shawn Leon.....He deserve to know about what is being Post it on the Forum.......

***From The Filing: ***On The Legal Proceeding The Company Is Saying:

***We are currently not involved in any litigation that we believe could have a material adverse effect on our financial condition or results of operations. There is no action, suit, proceeding, inquiry or investigation before or by any court, public board, government agency, self-regulatory organization or body pending or, to the knowledge of the executive officers of our company or any of our subsidiaries, threatened against or affecting our company, our common stock, any of our subsidiaries or of our companies or our subsidiaries’ officers or directors in their capacities as such, in which an adverse decision could have a material adverse effect.

http://archive.fast-edgar.com/20230522/A72SN22C7222A9Z2222R2ZYYFAAJZ222B252/

Wishing a Good Long Weekend to all

janet

[Bubae]

A new filing requesting to amend the original wrongful death complaint against ATHI the holding company for the Evenia treatment center was filed on Tuesday May 23rd. The amended filing claims what they "learned through discovery and investigation" alleging that the company has violated the Florida Patient Brokering Act and categorized it as felony conduct. It would seem to me that the CEO of Evernia Health should address this information about the treatment center. Click on image to enlarge.



Post detailing wrongful death lawsuit finding
Sunday, May 21, 2023 3:28:49 PM
Post# 46991 of 47036
https://investorshub.advfn.com/boards/read_msg.aspx?message_id=171958415


Search as a guest using the case number - look under "Dockets and Documents" go to page 8 of the documents

Welcome to eCaseView, the Clerk of the Circuit Court & Comptroller’s free court records search.
https://appsgp.mypalmbeachclerk.com/eCaseView/landingpage.aspx
Wrongful Death Lawsuit - status: Open
Case Number : 50-2021-CA-002289-XXXX-MB or CASE NO.: 502021CA002289 AN
02/19/2021 - STRICKLIN, MARK V BEHAVIORAL HEALTH HOLDINGS INC


05/23/2023 MOTION PLAINTIFF'S MOTION FOR LEAVE TO AMEND COMPLAINT


2. Undersigned counsel has learned through discovery and investigation that Defendant
TRANSFORMATIONS may have violated multiple Florida criminal statutes and 2
new counts need to be added against that Defendant related to the alleged criminal
conduct.

45. Florida's Patient Brokering Act broadly prohibits offering or paying any
"commission, benefit, bonus, rebate, kickback, or bribe, directly or indirectly, in cash or in kind" or
engaging "in any split-fee arrangement, in any form whatsoever, to induce the referral of a patient
or patronage to or from a health care provider or health care facility." Fla. Stat. § 817.505(l)(a)

46. The statute also prohibits soliciting or receiving any such commission, as well as
aiding or otherwise participating in conduct prohibited by the statute. See id. § 817.505(l)(b)—(d)

49. By paying for transportation to their facility, Defendant TRANSFORMATIONS was
in violation of § 817.505, Florida Statutes, also referred to as the Florida Patient Brokering Act for
this felony conduct.


Closer look at Florida’s sober homes: Inside their fatal attraction with Wisconsin’s addicts

https://www.channel3000.com/news/local-news/closer-look-at-florida-s-sober-homes-inside-their-fatal-attraction-with-wisconsin-s-addicts/article_50d8ade9-5953-562b-91ac-77cf5cdd7714.html

...Seth Stricklin, of Janesville, overdosed just days ago at Evernia Station sober living home in West Palm Beach. His parents, Mark and Joyce, said they’ve been kept in the dark about the moments surrounding his death....



For former addicts who have made it through recovery, the scam known as the Florida shuffle is nothing new.

“There are a number of clients I have worked with that have shared with me their experiences about patient brokering when they were sent to treatment out of state,” said Skye Boughman, who works in drug poisoning prevention.

Boughman said prior to the passing of the Affordable Care Act, insurance companies would regularly cap coverage levels for those struggling with addiction.

“It put families in horrible positions where many of them took out second mortgages on their homes in order to have a chance to save their child’s lives,” she said.

After the ACA passed, however, she said sober homes began to appear in states like Florida, California and Arizona. Boughman said these homes exist not to heal people of their addictions, but to make money.

“Some of the places that popped up were very unscrupulous and really took advantage of people and that’s when we start to see patient brokering,” she said.


Dozens arrested in patient-brokering scheme connected to Lake Park lab
https://www.palmbeachpost.com/story/news/local/2019/04/02/dozens-arrested-in-patient-brokering-scheme-connected-to-lake-park-lab/5472744007/

[wavridr]

i wonder when the next 100mil dump will be. and only 12mil on the ask at 4 lol i'm sure there's at least another 100mil waiting to go up there. is shawn still on vacation?

[Bubae]

Not sure of Ill will, but none sense for sure.

GRST - This Board is Full of Ill Will and Nonsense!.....

https://investorshub.advfn.com/boards/read_msg.aspx?message_id=170130346

Post# 44287 of 47034
ONCE, $GRST starts paying off remaining notes and buying back STOCKS - 1+ Billion Naked Shorts here in $GRST will know they have made a mistake naked shorting $GRST and starts to cover their naked short position.

[janetcanada]

GRST - This Board is Full of Ill Will and Nonsense!.....

[Bubae]

An interesting number in the recent reports is the professional fees line item. The total for 2022 was $463,678 compared to $132,275 for 2021. Q2 2022 professional fees were $112,149, likely because of the debt exchange agreement resulting in the Leonite June note and the regulation "A" offering work. Very little spent in Q3 2022 but Q4 activity resulted in a $282,811 charge. Q1 2023 professional fees was $111,204 which is close to the fees for the entire year of 2021 when they were working on the acquisition and start-up of the treatment center..


Three months ended March 31, 2022
https://www.otcmarkets.com/filing/html?id=15821144&guid=lKu-kF1BswL2zch
Professional fees 49,587

Three months ended June 30, 2022
https://www.otcmarkets.com/filing/html?id=16018411&guid=lKu-kF1BswL2zch
Professional fees $112,149


Three months ended September 30, 2022
https://www.otcmarkets.com/filing/html?id=16200583&guid=lKu-kF1BswL2zch
Professional fees $19,131


Year ended December 31, 2022
https://www.otcmarkets.com/filing/html?id=16535244&guid=lKu-kF1BswL2zch

Professional fees 2022 $463,678

Q4 2022 professional fees $282,811


Three months ended March 31, 2023
https://www.otcmarkets.com/filing/html?id=16673787&guid=Mqu-kFsYtmI-B3h

Professional fees $111,204

[Bubae]

Pretty quiet today. The quarterly wasn't pretty but they normally drop a press release none the less. Maybe the next press release is about much more. The type of news that is dropped late or after hours on a Friday. Especially a long weekend Friday. I'm expecting expecting a new filing soon.

[Mohammad111]

We're gonna have to wait and see what happens. I will hold on to my shares and forget about it for a few months. A lot of progress have been made and a lot needed done.

[Bubae]

So many here are in denial when it comes to the regulation "A" offering. This is what will settle the balance of the debt that is being renegotiated in my opinion. That is if they ever get their ducks in a row and finally make it a viable option. A lot of dilution on the way and it makes no sense without a reverse split.

Yup, that would be the only way to pay the debt...

Ethema Posts Strong 3rd Quarter Results and SEC Qualifies the Regulation A Form 1A Filing
November 29, 2022 08:00 ET
| Source: Ethema Health Corporation

https://www.globenewswire.com/en/news-release/2022/11/29/2563968/0/en/Ethema-Posts-Strong-3rd-Quarter-Results-and-SEC-Qualifies-the-Regulation-A-Form-1A-Filing.html


Mr. Shawn Leon, Company CEO, reported,...

...We have repeatedly indicated throughout the year that our dual goals were to grow the company and to manage and repay the debt we accumulated in previous years. In the next few months, we expect to make substantial progress on these goals with the new equity raise outlined in the filed form 1A...

[Mohammad111]

Yup, that would be the only way to pay the debt or sell some of the properties. It will take a while but it may happen.

[Bubae]

If I were Leonite I believe that I would let the three 2022 notes ride for a while at the 24% and fees for a while and forget about the assets exchange. Maybe see if I could make even more converting it through the regulation "A" offering. Looks like the new forbearance date on the June note is now June 8th. Google "fundamental transaction clause."


Ethema Extends Dates for Debt Repayment and Real Estate Closing
March 01, 2023 08:00 ET
| Source: Ethema Health Corporation
https://www.globenewswire.com/en/news-release/2023/03/01/2618141/0/en/Ethema-Extends-Dates-for-Debt-Repayment-and-Real-Estate-Closing.html


Ethema Health Corporation (OTCPINK: GRST) (“Ethema”, “GRST” or the “Company”), has signed an extension and forbearance agreement with Leonite Capital Inc. extending the due date for its note due March 1, 2023. The Company will continue to pay interest on the note and it will be due May 8, 2023.

For the quarterly period ended March 31, 2023
https://www.otcmarkets.com/filing/html?id=16673787&guid=CFu-kFXCNXKfJth


Leonite Fund I, LP

Effective June 1, 2022, The Company entered into a Note Exchange Agreement whereby the convertible promissory notes entered into with Labrys Fund LP on May 7, 2021, with. A principal outstanding of $341,000, and on June 2, 2021 with a principal outstanding of $230,000 and accrued interest thereon of $25,300, were exchanged for a new Senior Secured Convertible Promissory note in the principal amount of $745,375, including an OID of $149,075. The Note matured on March 1, 2023, and bore interest at the minimum of 10% per annum or the Wall Street Journal quoted prime rate plus 5.75%. The note is currently in default, although no default has been declared and management is negotiating with Leonite on a resolution.

Interest is payable monthly and the note may be prepaid with a prepayment penalty of 10%. The note is convertible into common stock at a fixed conversion price of $0.01 per share, subject to anti-dilution adjustments and a fundamental transaction clause allowing the note holder to receive the same consideration as common stockholders would receive.

The convertible note is secured by all of the assets of Ethema Health Corporation and Addiction Recovery Institute of America, LLC.

On March 1, 2023, the Company entered into a forbearance agreement with Leonite whereby the parties agreed to extend the maturity date of the note to June 8, 2023, the Company will continue to pay interest on the note, until repaid. The note has not been repaid as yet and the Company in continuing to negotiate the resolution of the note.




8. Short-term Notes

Leonite Capital, LLC

Secured Promissory Notes

On March 1, 2022, the Company entered into a secured Promissory Note in the aggregate principal amount of $124,000 for net proceeds of $100,000 after an original issue discount of $24,000. Due to the failure to repay the note by due date, a penalty of $37,200 was added to the principal outstanding and the Company incurs a monthly monitoring fee of $2,000 per month. In addition the note earns interest at a default rate of 24% per annum on the total balance outstanding, including the monthly monitoring fee and accrued interest.

The Note had a maturity date of April 1, 2022. This note has not been repaid at the date of this report. We are in negotiations with Leonite to settle the balance outstanding and no default has been declared.


The balance outstanding on the note, including default penalty, interest accrued and monthly monitoring fees is $231,481 as of March 31, 2023.


On May 3, 2022, the Company, entered into a secured Promissory Note in the aggregate principal amount of $76,250 for net proceeds of $61,000 after an original issue discount of $15,250. Due to the failure to repay the note by due date, a penalty of $22,875 was added to the principal outstanding and the Company incurs a monthly monitoring fee of $2,000 per month. In addition the note earns interest at a default rate of 24% per annum on the total balance outstanding, including the monthly monitoring fee and accrued interest.

The Note had a maturity date of June 17, 2022. This note has not been repaid at the date of this report. We are in negotiations with Leonite to settle the balance outstanding and no default has been declared.

The balance outstanding on the note, including default penalty, interest accrued and monthly monitoring fees is $143,634 as of March 31, 2023.

[declaes]

"That easy?"

[Think1st]

Any news on real estate deal ,either selling a property to get some cash, to reduce debt , or in buying the land near college

[Bubae]

I believe the numbers are meaningless at this point. The debt is owned by Ethema Health (GRST). The treatment center and the Canadian property will be given up for secured debt to the real investors who are secured by direct shares of the subsidiaries. The statement "non-real property debt" not only leaves the $2.6 million owed to the Leons, the more than $4 million owed to the series "N" note holders, but also the convertible debt not secured by assets. If they do not get a nice return from the regulation "A" offering they will cease to be a going concern in my opinion. Bottom line is that retail traders will need step up with their donations because debt holders and the business doesn't pay the bills at the end of the day.


Ethema Extends Dates for Debt Repayment and Real Estate Closing
March 01, 2023 08:00 ET
| Source: Ethema Health Corporation
https://www.globenewswire.com/en/news-release/2023/03/01/2618141/0/en/Ethema-Extends-Dates-for-Debt-Repayment-and-Real-Estate-Closing.html

Mr. Shawn Leon, Company CEO, reported, ...

...This will help clean up the balance sheet and together with our current efforts we expect that only the Series N convertible notes and the shareholder advances to my family will remain as the only non-real property debt by the end of the second quarter this year.”

[Bubae]

Aside from the assets for secured debt it also looks like the series "B" preferred shares will be part of the current debt negotiations. The current Q1 filing has reclassified these shares "settle the total liabilities owing to them". This is going to be a heavy lift for the regulation "A" offering that isn't viable at this point. Again, I do not believe many here will be happy with the next press release.


14. Stockholder’s deficit

c) Series B Preferred shares

Authorized and outstanding

The Company has authorized 400,000 Series B preferred shares with a par value of $1.00 per share. The company has issued and outstanding 400,000 Series B Preferred shares at March 31, 2023 and December 31, 2022.

The Series B preferred shares are senior secured and were mandatorily redeemable by the Company on July 1, 2021, and were originally classified as mezzanine debt. These Series B preferred shares have been reclassified as current liabilities for the three months ended March 31, 2023 as they meet the definition of liabilities in terms of ASC 480- debt and are no longer contingently convertible, due to the fact that the redemption date has passed and the Company is currently negotiating with the preferred note holders to settle the total liabilities owing to them, including certain convertible notes. The Company continues to accrue dividends at the rate of 6% per annum.


December 2020 debt restructuring 8K Filing
https://www.otcmarkets.com/filing/html?id=14554778&guid=OHu-kqU6x0i-B3h

Leonite Capital LLC

On July 12, 2020, the company entered into a debt extinguishment agreement with Leonite whereby the following occurred:

8. $400,000 of the note was converted into series B Preferred stock in the Company for a 12-month period, mandatorily redeemable by the Company accruing dividends at 6% per annum payable in cash or stock, subject to certain conditions.

[N-13]

Yeah ok, the debt is still present, if the debt was that easy to eliminate, it would be gone already. So instead, the interest on the debt is choking the company.

[loanshark007]

Must be reading a different filing than the one that just came out for the first quarter of 23?

It shows a net loss of $186,248 from in patient services.
Same quarter from 22 shows a net loss of $150,107.

Net from in patient service before taxes and debt was $15,727. Hardly "huge profit". My nephew makes more than that with his lawn care business ROFL!

[declaes]

The debt is from past mistakes. GRST now proved they can make a huge profit with their business model. The debt is holding the profit down. The debt from the past can only be resolved by growing the business, growing revenues, and growing profit. The bigger the company, the smaller the % of debt will be, and the faster they can pay it back.

[Mohammad111]

I see progress and improvement quarter after quarter. As you said, the problem is the debt. I am not sure how they're gonna tackle that.

[Bubae]

It is about to get real in my opinion. Despite new receivables funding for the quarter of $190K they ended the quarter with $27.6K. No new receivables funding indicated in the subsequent events so how do they continue to make the payments on the receivables funding payments let alone the rest? That is $18.5K in payments per WEEK!! I'm thinking that the can kicking is bouncing aganst the wall at the end of the road by now. LOL Something has happened in Q2 and we will see soon I suspect. Stayed tuned!!


For the quarterly period ended March 31, 2023
https://www.otcmarkets.com/filing/html?id=16673787&guid=DCu-kaTrf7_TB3h

11. Receivables funding

September 26, 2022 Funding

On September 26, 2022, the Company, through its 75% held subsidiary, Evernia Health Center, LLC, entered into a Receivables Sale Agreement with Itria Ventures LLC (“Itria”), whereby $310,000 of the Receivables of Evernia were sold to Itria, for gross proceeds of $250,000. The Company also incurred fees of $5,500, resulting in net proceeds of $244,500. The Company is obliged to pay 7.41% of the receivables until the amount of $310,000 is paid in full, with periodic repayments of $6,458 per week. The guarantor of the funding is a minority shareholder in ATHI.

The Company made weekly cash payments of $6,458 totaling $167,917 on the September 26, 2022 funding. The balance outstanding at March 31, 2023 was $147,083, less unamortized discount of $30,949.


December 13, 2022 Funding

On December 13, 2022, the Company, through its 75% held subsidiary, Evernia Health Center, LLC entered into a Receivables Sale Agreement with Itria Ventures LLC (“Itria”), whereby $305,000 of the Receivables of Evernia were sold to Itria, for gross proceeds of $250,000. The Company also incurred fees of $2,500, resulting in net proceeds of $247,500. The Company is obliged to pay 6.08% of the receivables until the amount of $305,000 is paid in full, with periodic repayments of $6,354 per week. The guarantor of the funding is a minority shareholder in ATHI.


The Company made weekly cash payments of $6,354 totaling $88,958 on the December 13, 2022 funding. The balance outstanding at March 31, 2023 was $211,042, less unamortized discount of $40,228.


January 19, 2023 Funding

On January 19, 2023, the Company received funding from an agreement entered into on December 14, 2022 through its 75% held subsidiary, Evernia Health Center, LLC entered into a Receivables Sale Agreement with Bizfund.com (“Bizfund)”), whereby $132,000 of the Receivables of Evernia were sold to Bizfund, for gross proceeds of $100,000. The Company is obliged to pay 15.0% of the receivables until the amount of $132,000 is paid in full, with periodic repayments of $2,750 per week. The guarantor of the funding is a minority shareholder in ATHI.

The Company made weekly cash payments of $2,750 totaling $24,750 on the January 19, 2023 funding. The balance outstanding at March 31, 2023 was $107,250, less unamortized discount of $26,536.


February 14, 2023 Funding

On February 14, 2023, the Company, through its 75% held subsidiary, Evernia Health Center, LLC entered into a Receivables Sale Agreement with Fox Business Funding (“Fox”), whereby $118,800 of the Receivables of Evernia were sold to Fox, for gross proceeds of $90,000. The Company is obliged to pay 8.0% of the receivables until the amount of $118,800 is paid in full, with periodic repayments of $2,970 per week. The guarantor of the funding is a minority shareholder in ATHI.

The Company made weekly cash payments of $2,970 totaling $17,820 on the February 14, 2023 funding. The balance outstanding at March 31, 2023 was $100,980, less unamortized discount of $25,183.

[janetcanada]

GRST - No Dooms and Glooms Either!....

[Bubae]

There isn't much to brag about in a press release for this quarter. Q3 2022 cash balance was $561K, started Q1 2023 with $140.7 K in cash, ended the first quarter with $27.6K. The receivables for Q3 2022 were $287K, $337K end of year, 543K end of Q1 2023. Another troubling trend that suggests they are having difficulty with collections. Accounts payable $351K for Q3 2022, started Q1 2023 with $170.0K ended the quarter with $372.8K. Likely no coincidence that the increasing receivables number and low cash has resulted in an increasing payables number. The balances for receivables funding, short term notes, convertible notes are all up mostly due to accrued interest that has nearly doubled year over year. I doubt anyone will like the next press release because they need to set the stage for the regulation offering which will not sell without dramatic changes here.


For the quarterly period ended March 31, 2023
https://www.otcmarkets.com/filing/html?id=16673787&guid=DCu-kaTrf7_TB3h

March 31,2023 December 31, 2022
Cash $27,580 $140,757

Accounts receivable, net $543,119 $337,074

Accounts payable and accrued liabilities $372,830 $170,934

Receivables funding $443,459 $416,731

Short-term notes $496,923 $460,53

Convertible notes, net of discounts $5,351,270 $5,269,250


Interest expense

Interest expense was $157,096 and $80,768 for the three months ended March 31, 2023 and 2022, respectively, an increase of $76,328 or 94.5%, primarily due to penalty interest rates incurred on convertible notes and short term notes which had matured during previous periods.

Net loss

Net loss was $175,717 and $164,985 for the three months ended March 31, 2023 and 2022, respectively, an increase of $10,732 or 6.5%. The increase is primarily due to the increase in interest expense of $76,328, the reduction in the derivative liability movement of $197,476, the reduction in the foreign exchange movement of $92,601, offset by the reduction in amortization of debt discount of $175,911, which is fully discussed above.

[janetcanada]

GRST - <<The current filing doesn't mention it either>>

*** Company Assessment From Accredited Analyst*** - *** No Mention by them Either!***

*** There is No Concerning Event Detected, *** - The Company For the Nine Months, Sales was USD 3.59 million compared to USD 1.05 million a year ago.

***Pass
Have shareholders been diluted over the past year?

***Shareholders Have Not Been "Meaningfully" Diluted in the past year or recently listed

***Trading at 98.5% below our estimate of its fair value

***Became Profitable this year

***SimplyWallStreet***
https://simplywall.st/stocks/us/healthcare/otc-grst/ethema-health - ***From Post #46312***

***Financial Times***
***https://markets.ft.com/data/equities/tearsheet/profile?s=GRST:PKC

***Income statement (USD)
Year on year Ethema Health Corp grew revenues 148.16% from 1.94m to 4.82m while net income improved from a loss of 1.54m to a gain of 247.88k.

***COMMITMENT***
It is fundamental to our integrity and success that we uphold the highest possible standards of ethical and professional journalism, and that we are seen to do so. The benchmark for the FT’s journalistic practices is set by our FT Editorial Code. Compliance with the code is an obligation for all FT editorial staff.

==============================================================

[Bubae]

The current filing doesn't mention it either. The fact is there are two open cases. One against ARIA and one against the treatment center Evernia Health.


Search the case number as guest.
Welcome to eCaseView, the Clerk of the Circuit Court & Comptroller’s free court records search.
https://appsgp.mypalmbeachclerk.com/eCaseView/landingpage.aspx

Slip and Fall Case
Case Number : 50-2021-CA-002289-XXXX-MB
02/19/2021 - STRICKLIN, MARK V BEHAVIORAL HEALTH HOLDINGS INC

Wrongful Death Case
Case Number: 50-2023-CA-008318-XXXX-MB
03/23/2023 - FRANKLIN, ANTHONY V ADDICTION RECOVERY INSTITUTE OF AMERICA

[janetcanada]

GRST - <<Yeah current financial report states that there are no legal proceedings going on against Ethema>>

As a Matter Of FACT.......On The Legal Proceeding The Company Is Saying:

***We are currently not involved in any litigation that we believe could have a material adverse effect on our financial condition or results of operations. There is no action, suit, proceeding, inquiry or investigation before or by any court, public board, government agency, self-regulatory organization or body pending or, to the knowledge of the executive officers of our company or any of our subsidiaries, threatened against or affecting our company, our common stock, any of our subsidiaries or of our companies or our subsidiaries’ officers or directors in their capacities as such, in which an adverse decision could have a material adverse effect.

http://archive.fast-edgar.com/20230522/A72SN22C7222A9Z2222R2ZYYFAAJZ222B252/

[MrGeeves79]

One final post… I checked the L2 a couple of days ago and the top bid was 75 million shares and I think the next bid was 35 million so there is interest at this price so hopefully that can put things into perspective for the longs on this ticker.

$GRST

[MrGeeves79]

Yeah current financial report states that there are no legal proceedings going on against Ethema.

See you next quarter

GLTA

[MrGeeves79]

Ethema continues to tread water with 1.3 million in revenue for 3 months. 500k+ in receivables up from 300+k in December not included in the revenue figure.

The receivables are the income drop in the bucket scenario that I saw as a potential here. This revenue potential could out earn its debt issues if the company continues to tread water and kick the can down the road debt wise.

The receivables will continue to grow and in the financials they state that this figure is a realistic number that could be received in the future.

The debt is a issue, I’m not sure how they will expand to a new location but the demand is probably there.

My two cents… take it for what it’s worth and read the financials yourself to come to a conclusion.

Holding or bust

GLTA

[MrGeeves79]

Past financials stated that no litigation was going on against Ethema.

[Bubae]

The quarterly was released this afternoon. This should be a interesting read or not.


For the quarterly period ended March 31, 2023
http://archive.fast-edgar.com/20230522/A72SN22C7222A9Z2222R2ZYYFAAJZ222B252/

[sylvia07]

Thats so true...I always liked that company!

[janetcanada]

GRST - More Reliable than anything that Ill-Will and Naysayers are saying!.....

[Bubae]

It will be some time before we find out. The latest document was filed with the court on May 16th, last week. It is an "ORDER SETTING JURY TRIAL" filing but the court date isn't until March 2024. Ethema Health (GRST) claims to own 75% of this treatment center, largely held by investors to secure debt. How is this not material enough to show up in a filing? Is Ethema Health exposed to this liability? Why would a note holder accept this asset for secured debt under these conditions. As always why do shareholders never get explanations for material events? Click on images to enlarge

GRST - INNOCENT UNTIL PROVEN GUILTY!!!!

Search as a guest using the case number - look under "Dockets and Documents" go to page 7 of the documents

Welcome to eCaseView, the Clerk of the Circuit Court & Comptroller’s free court records search.
https://appsgp.mypalmbeachclerk.com/eCaseView/landingpage.aspx
Wrongful Death Lawsuit - status: Open
Case Number : 50-2021-CA-002289-XXXX-MB
02/19/2021 - STRICKLIN, MARK V BEHAVIORAL HEALTH HOLDINGS INC

[sylvia07]

Great find and info!

[janetcanada]

GRST - INNOCENT UNTIL PROVEN GUILTY!!!!

[Bubae]

The wrongful death lawsuit is against the holding company for the treatment center and it is an open case. Evernia Health Center is named as the "doing business as" entity. I would have to believe that this is a problem for the secured debt holders. Click on image to enlarge.


Link to post for lawsuit
https://investorshub.advfn.com/boards/read_msg.aspx?message_id=171958415

[janetcanada]

GRST - Company Assessment From Accredited Analyst Contradict ILL WILL

*** There is No Concerning Event Detected, *** - The Company For the Nine Months, Sales was USD 3.59 million compared to USD 1.05 million a year ago.

***Pass
Have shareholders been diluted over the past year?

***Shareholders Have Not Been "Meaningfully" Diluted in the past year or recently listed

***Trading at 98.5% below our estimate of its fair value

***Became Profitable this year

***SimplyWallStreet***
https://simplywall.st/stocks/us/healthcare/otc-grst/ethema-health - ***From Post #46312***

***Financial Times***
***https://markets.ft.com/data/equities/tearsheet/profile?s=GRST:PKC

***Income statement (USD)
Year on year Ethema Health Corp grew revenues 148.16% from 1.94m to 4.82m while net income improved from a loss of 1.54m to a gain of 247.88k.

***COMMITMENT
It is fundamental to our integrity and success that we uphold the highest possible standards of ethical and professional journalism, and that we are seen to do so. The benchmark for the FT’s journalistic practices is set by our FT Editorial Code. Compliance with the code is an obligation for all FT editorial staff.

==============================================================

[Bubae]

The real numbers. This is why they aren't paying on their notes, why they have debt in default, and why they must borrow every quarter at a very high cost. The assets aren't worth the secured debt against it in my opinion. Seven months since they first filed the regulation "A" offering which suggests to me that things are very difficult behind the scenes. Click on image to enlarge.

[janetcanada]

GRST - <<The crushing facts from the public documents speak for themselves>>

***There has Been No Conviction! Therefore whatever the case....That Case Must have Been Dismiss!!!.....

*** Company Assessment From Accredited Analyst***

*** There is No Concerning Event Detected, *** - The Company For the Nine Months, Sales was USD 3.59 million compared to USD 1.05 million a year ago.

***Pass
Have shareholders been diluted over the past year?

***Shareholders Have Not Been "Meaningfully" Diluted in the past year or recently listed

***Trading at 98.5% below our estimate of its fair value

***Became Profitable this year

***SimplyWallStreet***
https://simplywall.st/stocks/us/healthcare/otc-grst/ethema-health - ***From Post #46312***

***Financial Times***
***https://markets.ft.com/data/equities/tearsheet/profile?s=GRST:PKC

***Income statement (USD)
Year on year Ethema Health Corp grew revenues 148.16% from 1.94m to 4.82m while net income improved from a loss of 1.54m to a gain of 247.88k.

***COMMITMENT
It is fundamental to our integrity and success that we uphold the highest possible standards of ethical and professional journalism, and that we are seen to do so. The benchmark for the FT’s journalistic practices is set by our FT Editorial Code. Compliance with the code is an obligation for all FT editorial staff.

==============================================================

[sylvia07]

Thanks for receipe, happy to hear your husband love it, can't wait to try it.

[Bubae]

The crushing facts from the public documents speak for themselves. I don't make this stuff up. LOL

[janetcanada]

GRST - Nothing about what you say is to be Taken Serious!....Just in case you though that I was Complimenting you........I hope that you Understood that in my Previous Post I was Facetious!.........What I Really Meant was to point out that you Cannot Compete with the Financial Post Accredited Analysts!!!.....

[janetcanada]

GRST - Your Overwhelming Extraordinary Knowledge is Wasted Here!!!.....

You should Apply to the Financial Time!.....

***Financial Times***
***https://markets.ft.com/data/equities/tearsheet/profile?s=GRST:PKC

***Income statement (USD)
Year on year Ethema Health Corp grew revenues 148.16% from 1.94m to 4.82m while net income improved from a loss of 1.54m to a gain of 247.88k.

***COMMITMENT
It is fundamental to our integrity and success that we uphold the highest possible standards of ethical and professional journalism, and that we are seen to do so.