Company: EHSI
Filing Date: 2025-08-13
Form Type: 10-Q
Source: 0001437749-25-026553
Chunk: 16

Company: Elite Health Systems Inc.
Filing Date: 2025-08-13
Form: 10-Q
Item: Part I, Item 1
Chunk 16
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 advanced $535,000, less $21,000 which was repaid by CBOP for a net receivable of $519,000. In addition, CBOP made a $200,000 capital call to its members resulting in an equity contribution from the Company of $57,000. This equity investment was fully impaired due to Equity Method accounting. These allowances and write-offs were recorded as losses from investments in unconsolidated entities. For the years ended December 31, 2024 and 2023, the Company’s equity in loss of CBOP was $278,000 and $444,000, respectively, but was not recorded due to prior losses.

Due to loans made to CBOP, CBOP is considered to be a variable interest entity of the Company. However, as the Company is not deemed to be the primary beneficiary of CBOP, since it does not have the power to direct the operating activities that most significantly affect CBOP’s economic performance, the entity is not consolidated, but certain disclosures are provided herein.

In June, 2025 the Company agreed to relinquish its ownership interest in CBOP to Dr. Jaime Lozano upon receipt of evidence that Dr. Lozano retired certain debt of CBOP for which the Company is contingently liable. The agreement is null and void if Dr. Lozano fails to pay off the loan within 120 days of the acceptance of the agreement. The Company does not expect any further returns from, or liability exposure relating to, CBOP.

13

The following table presents the summarized financial information of CBOP:

CBOP Condensed Income Statement Information

			Six Months Ended

			June 30, 

			2025

			2024

			Patient revenue

			$
			696,000

			$
			584,000

			Net (loss) income

			$
			(456,000
			)
			 
			$
			(761,000
			)

			EHSHI's equity in (loss) income of CBOP

			$
			(109,000
			)
			 
			$
			(230,000
			)

CBOP Condensed Balance Sheet Information

			June 30,

			December 31,

			2025

			2024

			Current assets

			$
			202,000

			$
			347,000

			Non