Company: EHSI
Filing Date: 2025-08-13
Form Type: 10-Q
Source: 0001437749-25-026553
Chunk: 41

Company: Elite Health Systems Inc.
Filing Date: 2025-08-13
Form: 10-Q
Item: Part I, Item 2
Chunk 41
---
 managed care organization that will operate as a Medicare Advantage plan for seniors.

The Company presently intends to use the net proceeds from the private placement principally to execute the plan of Elite Health to establish a managed care organization that will operate as a Medicare Advantage plan for seniors.

In fiscal year 2024, the Company incurred a net loss of $2,055,000 compared to $816,000 in fiscal year 2023. The Company has received conditional state and Federal approval to operate as a Medicare Advantage plan and is in the development stage of preparing to operate. As a result, it has no revenue and significant expenses. The Company has funded operations through the sale of common stock. The Company recorded a losses of $865,000 and $747,000 during the six months ended June 30, 2025 and 2024, respectively, had an accumulated deficit in stockholders’ equity of $5,310,000 and $4,445,000  at June 30, 2025 and December 31, 2024, respectively; cash and cash equivalents of $3,121,000 and $4,034,000 at June 30, 2025 and December 31, 2024, respectively; and working capital of $2,995,000 and $4,155,000 at June 30, 2025 and December 31,2024, respectively. In addition, the Company currently does not have access to capital through a line of credit nor other readily available sources of capital. Together, these factors raised substantial doubt regarding the Company’s ability to continue as a going concern at June 30, 2025. The Company raised an additional $5,825,000 through the private sale of 11,650,000 shares of common stock and in addition to 475,000 shares issued as compensation to certain officers and directors, bringing the total outstanding to 21,409,924 shares as of June 30, 2025 and 19,984,924 at December 31, 2024. In July 2025, The Company announced plans to commence a private placement of shares of the Company’s common stock for expected proceeds of a minimum of $2,000,000 and up to a maximum of $5,000.000 at a price of $0.95 per share.

However, management has considered its plans to continue the Company as a going concern, concentrating on the establishment and operation of managed health