Company: EHSI
Filing Date: 2025-08-13
Form Type: 10-Q
Source: 0001437749-25-026553
Chunk: 21

Company: Elite Health Systems Inc.
Filing Date: 2025-08-13
Form: 10-Q
Item: Part I, Item 1
Chunk 21
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, respectively.

During the six months ended June 30, 2025 and 2024, the Company recorded no income tax benefit or provision.

For the six months ended June 30, 2025, the Company reported a net loss of $865,000 as compared to $747,000 for the same period a year earlier. The net loss was primarily due to investment in Elite prior to generation of any revenue.

Liquidity and Capital Resources 

The Company’s primary sources of liquidity are from equity transactions discussed below.

Net cash used in operating activities for the six months ended June 30, 2025, was $691,000 as compared to $916,000 for the same period a year earlier. This change is primarily due to the Company using cash to invest in the Elite business. During the six months ended June 30, 2025 and 2024, the Company received $0 of distributed earnings from unconsolidated entities

On January 16, 2024, the Company held an initial closing of a private placement of shares of the Company’s common stock to raise gross proceeds of not less than $1,000,000, and up to $2,000,000, at a price of $0.50 per share. Since the initial closing, the Company amended the terms of the private placement to raise up to $5,500,000 and raised total proceeds of an aggregate of $5.8 million. As a result of these issuances, as of June 30, 2025, there were outstanding 21,409,924 shares of the Company’s common stock.

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. 

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For this sale of securities in connection with private placement, no general solicitation was used, no commissions were paid, all participants in the private placement were accredited investors, and the Company relied on the exemption from registration available under Section 4(a)(2) and/or Rule 506(b) of Regulation D promulgated under the Securities Act with respect to transactions by an issuer not involving any public offering.

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