Ethema Health Corp (GRST)

[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.