Company: EHSI
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0001437749-25-034794
Chunk: 31

Company: Elite Health Systems Inc.
Filing Date: 2025-11-13
Form: 10-Q
Item: Part I, Item 2
Chunk 31
---
 costs for Elite Health Plan.

During the nine months ended September 30, 2025, recognized incurred no impact from its investment in unconsolidated entities compared to $101,000 gain from its investment in unconsolidated entities during the comparable period in 2024.

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

For the nine months ended September 30, 2025, the Company reported a net loss of $2,026,000 as compared to $1,034,000 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 nine months ended September 30, 2025, was $1,448,000 as compared to $988,000 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 nine months ended September 30, 2025, the Company received no distributed earnings from unconsolidated entities as opposed to $268,000 of distributed earnings during 2024.

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 September 30, 2025, there were outstanding 21,939,924 shares of the Company’s Common Stock.

17

Table of Contents

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. A total of $1,890,000 was received at September 30, 2025 and has raised in excess of $3,000,000 at the date of this filing.

For this sale of securities