Ethema Health Corp (GRST)

[Bubae]

Good luck trying to nail down how much they will report for earnings. According to the FAQ page the bar is $1.8 million. So what does that mean? Look at the two questions below from the FAQ page. On the first question the 600K is for two months and is the "gross billing number" of which a small percentage is typically paid out. The second question about the $1.8 million for the second half of 2021 is the same $300K per month and is referred to as the "net amount" expected to be collected. Which is correct, because they can both be in my opinion unless the $1.8 million is actually net to the bottom line. So that is what is being promoted here and if it isn't delivered in Q3 look out below. I suspect that the first scenario is correct and with $19 million in current liabilities and $2 million in quarterly losses that really stinks even for an OTC ticker since where to they go from here? Any further growth of improvement in their revenue will require more capital. This is a very expensive business model and what is really being paid for now are the past costly mistakes moving this entity around.

https://sec.report/Document/0001721868-21-000524/
Total liabilities $19,105,744 June 31, 2021 18,448,565 Dec 30, 2020
Total assets $4,193,033
Revenues were $96,158 three months ended June 30, 2021
Net loss was $(2,626,438) for the three months ended June 30, 2021



https://ethema.wpengine.com/?page_id=683

In November and December the Company reported that the ARIA treatment center had Gross billing numbers of $602,000.00. What did that mean?

"This was the Gross Billing number billed and at the time it was not possible to predict what the collection rate would be on the billing number. The first payment from the November December billings was received by ARIA in early January 2021. We have a lot more experience since then and we know more about what our collection rate is typically going to be and have a better prediction on what to use as the collection factor. The various Gross Billing amount for a single day of treatment in Detox is $4,500.00, Residential $3,950.00, PHP $3,200.00, IOP $2800.00 and OP$2,200.00. In-network contracts would pay anywhere from 5% to 15% of those rates. Out-of-Network claims could pay around 25% to 35% of amount claimed. In addition there are deductibles, co-pays, and co-insurance that affect the actual net on the claims."

In July the Company reported that it expects to produce $1.8 million in Revenue in the Second half of 2021. What does this mean?

"The Revenue number is the net amount expected to be collected from the provision of services. ARIA has 10 beds for the detox level of care, 12 for the residential level of care and 20 beds available to partial hospitalization care. The beds are also further split into male and female beds. Even though we have 40 beds it is almost impossible to match each client with an available bed at the proper level of care and the gender of that bed availability. For example, when we agree to move a client form Residential care to Partial hospitalization care and plan that for Friday, we need to keep an open bed for a few days just to accommodate the move. For all these reasons, it is considered a “full house” when we reach 35 or 36 occupants in total for any given night."