Company: EHSI
Filing Date: 2025-09-29
Form Type: DEF 14A
Source: 0001437749-25-030001
Chunk: 17

Company: Elite Health Systems Inc.
Filing Date: 2025-09-29
Form: DEF 14A
Chunk 17
---
 the Company of matters of this nature could contribute to negative market perceptions about the Company or its securities and may make future financing and business opportunities difficult to obtain on favorable terms or at all.

Some executive officers and directors have interests in the Acquisition that are different from your interests and such differing interests of such officers and directors may influence them to support or approve the Acquisition without regard to your interests.

When considering the recommendation by the Board that the Company’s stockholders vote “for” each of the proposals being submitted to the Company’s stockholders, the Company’s stockholders should be aware that certain of the directors and executive officers of the Company have arrangements that provide them with interests in the Acquisition that are different from, or in addition to, those of the stockholders of the Company. For instance, the Chief Executive Officer the Company has a conflict of interest in the Acquisition as a result of his ownership of PSS and immediate family relationship with other stockholder and executive of PSS. These interests may have influenced the directors and executive officers of the Company to support or recommend the proposals presented to the Company’s stockholders. See the section of this proxy statement entitled “RELATED PARTY TRANSACTION”.

The concentration of capital stock ownership with Dr. Jeereddi and his affiliates and related person after the Acquisition may limit the ability of other stockholders of the Company to influence corporate matters.

Immediately following the Acquisition, Dr. Jeereddi and his related person and affiliated entities will in the aggregate beneficially own approximately 14.3% of the Company’s outstanding common stock. As a result, Dr. Jeereddi and his related person and affiliated entities collectively have a significant vote in matters that require approval by the Company’s stockholders, including the election of directors and approval of significant corporate transactions. Corporate actions might be taken even if the Company’s other stockholders oppose them. The dilution of the other stockholders of the Company might also have the effect of delaying or preventing a corporate transaction that other stockholders may view as beneficial.

The health care industry is heavily regulated. The Company’s and/or PSS’failure to comply with regulatory requirements could create liability for it, result in adverse publicity and otherwise negatively affect its business.

The health care industry is heavily regulated and is constantly evolving due to the changing political, legislative, and regulatory landscape and other factors. Many health care laws are complex, and their application to specific services and relationships may not be clear. Further, some health care laws differ from state to state, and it is difficult to ensure PSS’s business complies