Ethema Health Corp (GRST)

[Bubae]

The property valuation and the 75% of ARIA ownership are a conjecture filled claims stated as fact. The facts from the filings is much less impressive. A significant portion of the 75% ownership is tied up in the options to note holders. Increased revenue is the big news for many but this is an expensive business model and insurers don't pay but a small percentage for the revenue "gross billing" claimed. Since the revenue number for this company is so dubious, is the net earnings that really matters. In this case the revenue is for ARIA, what net earnings may actually bubble up to Ethema (GRST) and the ARIA share owning note holders?

Lets face it, this Q3 has been hyped for months and the story of increased revenue is known and who cares. They bought into a company that they have had a relationship for years that of course is earning some revenue. getting traders to buy the stock with the expectation to flip into the Q3 revenue hype isn't that hard. What is the catalyst that will convince new traders to buy in the volume needed now to increase the price? That run off the last PR where traders chased this into the .003s didn't end well. If you find yourself chasing this stock off a PR you will lose in my opinion. The conversions in the pipeline will most likely ensure another very rough six months.

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


Pick through what they call "Gross Revenue" or "Gross Billings". Some excerpts from the FAQ page. I don't believe traders will be very happy with Q3 if expectations are raised to an unachievable level.
https://ethema.wpengine.com/?page_id=683

"...As a public company we must use an accrual accounting system which starts with stating the Gross Revenue or Billing number and applying an estimated factor of expected collection of those Gross Revenues which would reduce the Gross Revenue to the Revenue number..."

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.

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

"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."