The year over year numbers for Q1 stink after the crazy property purchase, sale, leaseback deal that rolled $2.3 million in mostly defaulted debt into a new $9 million operating lease liability is now eating at monthly cash flow with teh rent expense. The new borrowing up to the end of Q1 is in post #50341 linked below. So time is running short for Shawn Leon to execute the rest of the plan to get to converting with the offering. He needs to consolidate the stock like he said, amend the regulation "A" offering and raise some funds before some of these nasty short term notes matures. But history tells us that Shawn Leon has no compunction when it comes to running debt well past its due date and paying absurd penalties. Like I have always said, Shawn Leon moves at a glacial pace.
Revenues Revenues were $1,300,100 and $1,300,046 for the three months ended March 31, 2024 and 2023, respectively, an increase of $54 or 0%.
Operating Expenses Operating expenses were $1,529,175 and $1,225,020 for the three months ended March 31, 2024 and 2023, respectively, an increase of $304,155 or 24.2%. The increase is primarily due to the following:
Abbreviated list
Rent expense was $265,132 and $114,564 for the three months ended March 31, 2024 and 2023, respectively, an increase of $150,568 or 131.4%.
The increase is primarily due to an increase in rental which arose on the acquisition of the building from our landlord and the immediate disposal of the building to a third party on August 4, 2023,...
Salaries and wages were $727,741 and $592,036 for the three months ended March 31, 2024 and 2023, respectively, an increase of $135,678 or 22.9%. The increase is due the increase in staff headcount during the current year.
Operating loss (income) The operating loss was $(229,074) and operating income was $75,026 for the three months ended March 31, 2024 and 2023, respectively, an increase in loss of $304,100 or 405.3%.
Net loss Net loss was $374,203 and $175,717 for the three months ended March 31, 2024 and 2023, respectively, an increase of $198,486 or 113.0%
I wouldn't get too excited about the operations that Ethema Health is taking over. First the Boca operation was handed over for assumption of the lease and buying the hard assets for which Leon just borrowed another $250K. Those hard assets were the contents of the treatment center like furnishing, equipment etc. The sales deal in the 8K lists everything, looks like a garage sale listing. 😆 The second operation that they are taking over sounds like a real winner. The Kentucky operation just wanted someone to take it over and manage it and they even financed the deal. Now Ethema Health can do what these private operators could not. That is sell stock to finance a losing operation. Go to 11:20 in the July 18th podcast and hear Shawn Leon detail the intended use of the offering. $500K for Boca and another $1 million to help this new Kentucky situation. Now understand the offering doesn't come until they split the living crap out of this this thing to get the share structure right so they can once again dilute the living crap out of it again. Next post I will tell you what I really think. 🤣
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