Ethema Health Corp (GRST)

[Bubae]

Tell you what is funny, the $259K paid to Shawn Leon in Q3 appears to have been turned back around and landed on the Q1 balance sheet as 'Proceeds from related party notes $259,228'. Playing games with the numbers to continue to show a slight increase in earnings each quarter. That is why they boast about their EBITDA, this number is easily manipulated. Don't forget the two line items that helped Q4 numbers that were also nonrecurring. Stick a stinking fork in this in my opinion. LOL This stuff is just what we have been able to find so far.



Q3 filing for period ended September 30th
https://sec.report/Document/0001721868-21-000835/

18. Related party transactions

Shawn E. Leon

"As of September 30, 2021 and December 31, 2020 the Company had a payable to Shawn Leon of $121,797 and $322,744, respectively. Mr. Leon is a director and CEO of the Company. The balances payable are non-interest bearing and has no fixed repayment terms."

"Management fees from prior periods due to Mr. Leon amounting to $259,175, related to Mr. Leon and reflected as a payable to Mr. Leon were reversed during the current period"



UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
https://sec.report/Document/0001903596-22-000301/

For the fiscal year ended: December 31, 2021
https://sec.report/Document/0001903596-22-000192/

Forgiveness of government relief loan

Forgiveness of government relief loan was $156,782 and $0 for the years ended December 31, 2021 and 2020, respectively, an increase of $156,782 or 100.0%. The company had met all requirements for forgiveness of one of its Covid-19 government relief loans and the loan forgiveness was recorded during the fourth quarter.

Taxation

Taxation credit was $280,903 and $0 for the years ended December 31, 2021 and 2020, respectively an increase of $280,903 or 100.0%. the tax credit arose due to the reversal of prior years’ accrual for $250,000 in penalty tax for non-disclosure of foreign entities in the US tax return, a deferred tax movement of $37,588 on the amortization of licenses which arose on the acquisition of ATHI and Evernia, and a small tax provision on profits realized on the ATHI and Evernia results.


For the fiscal year ended: December 31, 2020
https://sec.report/Document/0001721868-21-000220/
11. Taxes Payable

The taxes payable consist of:

> A payroll tax liability of $143,410 (CDN$182,589) in Greenestone Muskoka which has not been settled as yet.
> A GST/HST tax payable of $73,503 (CDN$93,585).
> The Company has assets and operates businesses in Canada and is required to disclose these operations to the US taxation authorities, the requisite disclosure has not been made. Management has reserved the maximum penalty due to the IRS in terms of non-disclosure. This noncompliance with US disclosure requirements is currently being addressed. An amount of $250,000 has been accrued for any potential exposure the Company may have.