Replies to post #52507 on Ethema Health Corp (GRST)

[Bubae]

I finally took some time look the annual over. No real surprises because we know the treatment center business doesn't make any money. The Mirage $600K note with some nasty default language that had a maturity date of November 15, 2024 has now been extended twice out to May, 15, 2025 and you can bet that it hasn't been paid. They continue cannibalize what earnings they do have with the expensive receivables funding. The outstanding balance on re receivables funding as of December 31, 2024 was $516,247 and in January and February they entered into new agreements worth $573,500. Of course the series "N" and "R" notes continue to fester and had a balance just shy of $5 million as of the end of 2024. The company's net loss increased 315% year over year. Q1 should show the additional burden of the Kentucky treatment centers that primarily service Medicaid patients. Q2 should really show the baked in numbers. Post# 51480 linked below with the Shawn Leon podcast included the use of proceeds and the need to fund the new acquisitions with the regulation A offering. Despite the expensive strategy he couldn't get it done. This company is in an ever tightening debt spiral which is a borrowing Ponzi scheme in my opinion. Shawn Leon is clearly running out of options which is likely why he is being unusually tight lipped.

For the fiscal year ended: December 31, 2024
https://www.sec.gov/ix?doc=/Archives/edgar/data/792935/000190359625000296/grst_10k.htm#fact-identifier-831

Page 6
Revenue
Revenue was $6,017,204 and $5,344,976 for the years ended December 31, 2024 and 2023, respectively, an increase of $672,228 or 12.6%.

Operating Expenses
Operating expenses was $7,350,333 and $5,886,896 for the years ended December 31, 2024 and 2023, respectively, an increase of $1,463,437 or 24.9%.

Operating loss
The operating loss was $1,333,129 and $541,920 for the years ended December 31, 2024 and 2023, respectively, an increase in loss of $791,209 or 146.0%.

Net (loss) income
Net (loss) income was $(2,165,937) and $1,006,415 for the years ended December 31, 2024 and 2023, respectively, an increase of $3,172,352 or 315.2%.


Page F-20
The Revolving credit line in the chart shows a balance of $421,165 including the accrued interest of $139,165. The interest was 60% and is now listed as 120%per annum.

Mirage Realty, LLC

On October 29, 2024, the maturity date of the note was extended to January 2025 with interest accruing thereon at 18% per annum. On February 13, 2025, we received a further extension on this note to May 15, 2025 with interest thereon remaining at 18% per annum.


Page F-22
Receivables funding outstanding as of December 31 was $516,247

New receivables funding for January and February $573,500 net proceeds to the company of $445,625


Bubae
Member Level
Thursday, November 21, 2024 11:18:38 AM
Post# 51480 of 52247
https://investorshub.advfn.com/boards/read_msg.aspx?message_id=175420557

Go to 11:20 into the July podcast where Shawn Leon starts talking about the use of proceeds from the regulation "A" offering whos shares would be exempt from registration and immediately free trading. We see $500K to support the operations at Boca and another $1 million to support the operations in Kentucky. He goes on to talk about the new convertible preferred shares that he claims he will be selling to investors. I do not see any real investors buying preferred shares of this scheme and they never have before. What I see is that new bucket of preferred shares is to convert the balance of the millions of so called "friendly" debt Shawn Leon talked about back in the January podcast. June 15th video at about 25:40 into the podcast be begins to talk about the NYSE and a $3 price, consolidation, and related party stock conversions. The January podcast talks specifically to the $4 million additional debt to be converted at about 24:10 into the segment. That friendly debt to the so called advisers is now close to $5 million.