Replies to post #37946 on Ethema Health Corp (GRST)

[Bubae]

Any basis for that revenue number and what is a revenue number or "gross billing" mean to Ethema? How much in net earnings will actually hit the Ethema (GRST) balance sheet? How much was ARIA making with the 174 beds at the last West Palm Beach location? Ethema has 2 employees and is a financial holding company. How much of the net earnings from ARIA will go to note holders with ownership options and how many have been exercise? It is as if ARIA, operating in a leased facility, doesn't have expenses and that insurers reimburse 100%. Will it be enough to offset the $2 million in quarterly losses? If not, where do they go from there because their percentage interest in ARIA and around $100K from property leases per quarter is all they have. What is your time frame for the .01? LABRYS fund alone needs $1.5 million in share conversions to cover the May and June financing deals. at the current price level over the next 6 months. When the outstanding share count crosses 4 billion shares what business are they operating that would justify support for a $40 million market cap? Ignoring the $19 million in current liabilities.



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


Are we talking about a perfect scenario with full occupancy and full reimbursement for the billings? Pick through what they call "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."

[ibmoney]

Way undervalued here!!!
GRST

[pual]

If you mean going from $98k in Q2 to $900k in Q3, I think you are somewhat optimistic (but hope you are right?)

Personally, I would be happy with a $750K revenue in Q3, our first quarter of operation.

As Q4, just by having additional revenues from at least 30% more beds (40 to 52) we would have for Q4 a revenue of $1000K (justifying a yearly revenue of $4,000,000 in 2022 (assuming a multiple of 5 and even 4B O/S, that could easily justify a market cap of $35M or a pps of $0,008 or $0,009)

This being said, I certainly do not believe that Leon will just sit on his hands for a full year 2022 looking at his successful creation of a base for growth.

I assume he has some plans for 2022 aimed at growing the operation.

Would be nice if sooner than later he would outline somewhat his intend issuing some kind of corporate update discussing progres up to now and expectations looking ahead.