Replies to post #35333 on Ethema Health Corp (GRST)

[Bubae]

Before we get too crazy about the revenue projections traders should take another look at the FAQ page where the CEO tries to answer the simple question about the purported revenue expectations. Read the answer about the $1.8 million and I don't really see where he justified the number. Are we talking about a perfect scenario with full occupancy and full reimbursement for the billings? 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."

[pual]

'makes the market cap between $30M-60M'

If this can be then, even a scenario of issuing 1,000,000,000 new shares to pay back debts would mean a pps of $0,0075 to $0,01 or 4 to 5 times the current pps.

That's why the dilution topic right now doesn't bother me that much. What I care about are the following:

1- Are revenues growing?

2- What is the business plan and or strategy looking forward?

3- Can our leader show us some respect?

This being said, i hope, but do not really care, that the above mentionned O/S scenario doesn't materialize.

Presently however I only have one question: 'Why in the world does Leon stay hidden ?'