Replies to post #49233 on Ethema Health Corp (GRST)

[Bubae]

Claims billed mentioned in the press release and revenue are the same thing for this business model so quarterly revenue is easily manipulated. Receivables have grown since the beginning of the year from $337K to $681K at the end of Q3. If you look at the statement of cash flows for Q3 you will see a reduction of $289,697 for receivables and still have a $681K outstanding as of the end of Q3. They do not have a balance sheet provision for "doubtful accounts" , they simply deduct it from revenue in subsequent filings.

Ethema Executes Two Real Estate Transactions and Major Debt Repayment
July 17, 2023 09:34 ET
https://www.globenewswire.com/en/news-release/2023/07/17/2705721/0/en/Ethema-Executes-Two-Real-Estate-Transactions-and-Major-Debt-Repayment.html

The great results continued in October and claims billed set another record monthly high for ARIA. We have delivered on our commitment to grow revenue and cut debt and expect to continue to deliver on these two fronts.”


For the quarterly period ended September 30, 2023
https://www.otcmarkets.com/filing/html?id=17070521&guid=aPJ-kWiGKgSidth

2. Summary of significant accounting policies (continued)
l) Revenue recognition

The Company’s provision for doubtful accounts are recorded as a direct reduction to revenue instead of being presented as a separate line item on the consolidated statements of operations and comprehensive loss.

The Company derives a significant portion of its revenue from other payors that receive discounts from established billing rates. The various managed care contracts under which these discounts must be calculated are complex, subject to interpretation and adjustment,...

Settlements with third-party payors are estimated and recorded in the period in which the related services are rendered and are adjusted in future periods as final settlements are determined. In the opinion of management, adequate provision has been made for any adjustments and final settlements. However, there can be no assurance that any such adjustments and final settlements will not have a material effect on the Company’s financial condition or results of operations. The Company’s receivables were $681,072, $337,074 and $176,011 at September 30, 2023, December 31, 2022 and December 31, 2021, respectively. Management believes that these receivables are properly stated and are not likely to be settled for a significantly different amount.