Ethema Health Q1 2025 Quarterly Results FAQ

What are the key highlights from Ethema’s Q1 2025 results?

Revenue grew from $1.300 million to $3.518 million, primarily due to the Aria Kentucky acquisition, while operating expenses increased from $1.529 million to $4.165 million, resulting in an operating loss of $0.647 million compared to $0.229 million in the previous period.

Why was there a delay in filing the Q1 2025 results?

The company experienced significant audit review related delays, but has addressed these issues with auditors and expects to file Q2 and Q3 2025 results within the next 30 to 45 days.

How did the Aria Kentucky acquisition impact Ethema’s financials?

Aria Kentucky contributed $2.802 million in revenue and $1.178 million in personnel costs, while also adding $0.353 million in rental expenses for the Kentucky facilities.

What caused the increase in operating expenses during Q1 2025?

The main increases were in personnel costs (from $0.727 million to $2.063 million), rental expenses (from $0.265 million to $0.740 million), patient-related expenses, and professional fees, primarily due to the Aria Kentucky acquisition and Boca Raton facility operations.

When does Ethema expect to restore its trading status on OTC markets?

The company expects to restore trading status once the Q2 2025 and Q3 2025 reviews are completed and filed within the next 30 to 45 days.

What are the company’s revenue projections for upcoming quarters?

Ethema projects approximately 40% revenue growth from Q1 to Q2 2025, and another approximately 10% growth from Q2 to Q3 2025.

How did the Boca Raton facility contribute to the Q1 results?

The Boca Raton facility contributed to Florida operations revenue growth of 10.5% to $1.437 million and added rental expenses of $0.122 million, with revenue ramping up after licensing delays were resolved.

What is the company’s outlook for operational efficiency and profitability?

Ethema is confident that increased revenues and improved operating efficiencies from understanding the costs of newly acquired operations will result in a turnaround to operating income in the near term.

How did cash flow from operations change in Q1 2025?

Cash flow utilized in operations decreased from $0.106 million to $0.073 million, which is encouraging given the significant acquisition and Boca Raton facility launch.

What caused the increase in interest and debt discount expenses?

Interest expense increased from $0.156 million to $0.428 million primarily due to interest-bearing assumed liabilities and debt funding used to acquire Aria Kentucky assets, but the company plans to replace expensive debt with equity and cheaper banking funding.