Company: EHSI
Filing Date: 2025-08-13
Form Type: 10-Q
Source: 0001437749-25-026553
Chunk: 39

Company: Elite Health Systems Inc.
Filing Date: 2025-08-13
Form: 10-Q
Item: Part I, Item 2
Chunk 39
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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 June 30, 2025, Compared to Three Months Ended June 30, 2024

Selling, general, and administrative expenses of $444,000 for the second quarter of 2025 were 2% higher than the $437,000 incurred during the comparable period in 2024, due mostly to the start-up costs for Elite Health Plan.

During the three months ended June 30, 2025, the Company recognized no gain or loss from its investment in unconsolidated entities compared to $2,000 gain during the same period in 2024.

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

For the three months ended June 30, 2025, the Company reported a net loss of $441,000 as compared to $435,000 for the same period a year earlier. The net loss was primarily due to investment in Elite prior to generation of any revenue.

Six months ended June 30, 2025, Compared to Six Months Ended June 30, 2024

Selling, general, and administrative expenses of $872,000 for the first six months of 2025 were 4% lower than the $913,000 incurred during the comparable period in 2024, due mostly to the start-up costs for Elite Health Plan.

During the six months ended June 30, 2025 and 2024, the Company recognized $0 and $4,000 gain from its