Company: EHSI
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0001437749-25-034794
Chunk: 18

Company: Elite Health Systems Inc.
Filing Date: 2025-11-13
Form: 10-Q
Item: Part I, Item 1
Chunk 18
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000,000 to 50,000,000.

			3.

			To approve the Company’s 2025 Equity Incentive Plan with 4,500,000 maximum aggregate number of shares of common stock subject to the plan.

			4.

			To approve the acquisition of PSS through the issuance of 3,158,000 shares of common stock pursuant to the share exchange agreement between the Company and the stockholders of PSS. Dr. Prasad Jeereddi, the Company’s Chief Executive Officer, owns 46% of PSS and Dr. Praveena Jeereddi (Dr. Prasad Jeereddi’s daughter) owns 44% of PSS and 10% is owned by the Executive Director of Elite Health Plan. The transaction was closed on November xx, 2025.

			Item 2.

			Management Discussion and Analysis of Financial Condition and Results of Operations.

Critical Accounting Policies

The Condensed Consolidated Financial Statements of Elite Health Systems Inc. and subsidiaries (the “Company”) have been prepared in accordance with accounting principles generally accepted in the United States of America. As such, some accounting policies have a significant impact on amounts reported in the Condensed Consolidated Financial Statements. A summary of those significant accounting policies can be found in Note B to the Consolidated Financial Statements, in our 2024 Annual Report on Form 10-K. In particular, judgment is used in areas such as determining and assessing possible asset impairments, including investments in, and advances, to unconsolidated entities.

The following discussion and analysis provides information which the Company’s management believes is relevant to an assessment and understanding of the Company’s results of operations and financial condition. This discussion should be read in conjunction with the Condensed Consolidated Financial Statements and notes thereto appearing elsewhere herein.

Recent events

None

Results of Operations

Three months ended September 30, 2025, Compared to Three Months Ended September 30, 2024

Selling, general, and administrative expenses of $1,165,000 for the third quarter of 2025 were 201% higher than the $387,000 incurred during the comparable period in 2024, due mostly to the start-up costs for Elite Health Plan and non-cash compensation cost of officers and directors.

16

During the three months ended September 30, 2025, the Company recognized no change from its investment in unconsolidated entities compared to a gain of $97,000 during the same period