Company: EHSI
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0001437749-25-034794
Chunk: 14

Company: Elite Health Systems Inc.
Filing Date: 2025-11-13
Form: 10-Q
Item: Part I, Item 1
Chunk 14
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 cash. The remaining capital contributions are not expected to be met and, accordingly, the Company’s equity interest in CBOP increased to 30.23% in June 2020.

During the year ended December 31, 2024, the Company did not lend any additional funds to CBOP. During the year ended December 31, 2023, the Company advanced $535,000, less $21,000 which was repaid by CBOP for a net receivable of $519,000. In addition, CBOP made a $200,000 capital call to its members resulting in an equity contribution from the Company of $57,000. This equity investment was fully impaired due to Equity Method accounting. These allowances and write-offs were recorded as losses from investments in unconsolidated entities. For the years ended December 31, 2024 and 2023, the Company’s equity in loss of CBOP was 278,000 and $444,000, respectively, but was not recorded due to prior losses.

12

Due to loans made to CBOP, CBOP is considered to be a variable interest entity of the Company. However, as the Company is not deemed to be the primary beneficiary of CBOP, since it does not have the power to direct the operating activities that most significantly affect CBOP’s economic performance, the entity is not consolidated, but certain disclosures are provided herein.

The Company was approached by one of the investors in CBOP where the investor would payoff the outstanding loan, releasing the Company of its guarantee in exchange for the Company’s ownership interest in CBOP. The Company agreed to the proposal and in return wrote off the remaining value of amounts due the Company from CBOP of $525,000, however the Company has not be notified of the loan pay off and has not transferred its ownership as of September 30, 2025. The Company does not expect any further liability.

The following table presents the summarized financial information of CBOP:

CBOP Condensed Income Statement Information

			Nine Months Ended

			September 30,

			2025

			2024

			Patient revenue

			$
			1,056,000

			$
			947,000

			Net (loss) income

			$
			(620,000
			)
			 
			$
			(976,000
			)

			EHSHI's equity in (loss) income of