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

Company: Elite Health Systems Inc.
Filing Date: 2025-11-13
Form: 10-Q
Item: Part I, Item 1
Chunk 11
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 Topic 842, Leases. However, the Company is not currently generating revenue.

In accordance with ASC 350-40, Internal Use Software, the Company capitalizes certain internal use software development costs associated with creating and enhancing internally developed software related to its platforms. Software development activities generally consist of three stages (i) the research and planning stage, (ii) the application and development stage, and (iii) the post-implementation stage. Costs incurred in the planning and post-implementation stages of software development, or other maintenance and development expenses that do not meet the qualification for capitalization are expensed as incurred. Costs incurred in the application and infrastructure development stage, including significant enhancements and upgrades, are capitalized. These costs relate to services provided by a vendor that are directly associated with the software projects. These software development and acquired technology costs will be amortized on a straight-line basis over the initial term of the license agreement with the vendor through December 31, 2030.

Basic loss per share has been computed using the weighted-average number of shares of common stock outstanding during the period. The numerator for the calculation of basic and diluted earnings per share is net loss and the denominator is the weighted-average number of common shares outstanding during the period.

10

The tables below present financial information associated with our leases.

			Classification

			September 30,

			Assets

			2025

			2024

			Long-term

			Operating lease assets

			Operating lease right-of-use asset

			$
			46,000

			$
			66,000

			Total leased assets

			$
			46,000

			$
			66,000

			Liabilities

			Current

			-

			Operating lease liabilities

			Operating lease right-of-use liability - current portion

			$
			37,000

			$
			28,000

			Long-term

			Operating lease liabilities

			Operating lease right-of-use liability - net of current portion

			$
			10,000

			$
			39,000

			Total lease liabilities

			$
			47,000

			$
			67,000

			Lease Cost

			Operating lease cost

			Selling, general and administrative

			$
			26,000

			$
			36,000

			Net lease expense