Company: EHSI
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0001437749-25-034794
Chunk: 17

Company: Elite Health Systems Inc.
Filing Date: 2025-11-13
Form: 10-Q
Item: Part I, Item 1
Chunk 17
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 75,000 for our Executive Director and 375,000 for CEO and Board Chair, Dr. Jeereddi. These shares were issued in August 2025. For the year ended December 31, 2024, the Company recorded compensation with directors and officers of the Company consisting of stock grants valued at $0.50 per share of 75,000 for each of directors St. Lawrence and Leimkuhler; 75,000 for our Executive Director and 250,000 for CEO and Board Chair, Dr. Jeereddi. Such shares were issued in January 2025. Additionally, the Company compensates Physician Support Services, Inc (“PSS”) for services of Executive Director and others as well as the sharing of rental space and other services. Prior to our acquisition of PSS, Dr. Jeereddi was the majority owner of PSS and our Executive Director was an employee and investor.

The Company sought approval from its stockholders for the acquisition of all the outstanding stock of PSS by issuing 3,158,000 shares of its common stock. The proposal was approved by stockholders at a special meeting on October 31, 2025 and the transaction closed on November 1, 2025.

Note I – Line of Credit

On April 25, 2025 the Company’s subsidiary, Elite Health Plan, Inc. (“Plan”) entered into a Note and Line of Credit with Rao R. Yalamanchili (“Lender”) for $2,500,000, the (“LOC”). The LOC is available to be drawn in the future, in whole or in part, to aid Plan in meeting the tangible net equity requirements of the State of California, Department of Managed Health Care for licensure as a health care service plan. Simultaneously with execution of the note, Plan entered into a Subordination Agreement that subordinates the rights of Lender to all present and future creditors of Plan. There is no outstanding balance under the LOC.

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Note J – Subsequent Events

On October 31, 2025, the Company held a special meeting of stockholders to consider several proposals, each of which were approved. Such proposals were as follows:

			1.

			To elect as directors to the board of directors the five nominees named in the proxy.

			2.

			To approve an amendment to the Company’s Certificate of Incorporation to increase the aggregate number of shares of common stock which the Company shall have the authority to issue from 25,