Elite Health Systems Inc. Reports No Revenue and Increased Losses in Q2 2025

Elite Health Systems Inc. reported its financial results for the second quarter and first half of 2025, revealing a continued lack of revenue and ongoing operational losses. For the three months ended June 30, 2025, the company recorded no revenue, consistent with the same period in 2024. Selling, general, and administrative expenses increased slightly to $445,000 from $437,000 year-over-year, leading to a net loss of $441,000, compared to a loss of $435,000 in the prior year. For the six months ended June 30, 2025, total expenses decreased to $872,000 from $913,000, but the net loss widened to $865,000 from $747,000 in 2024.

The company’s balance sheet as of June 30, 2025, showed total assets of $3,984,000, down from $4,321,000 at the end of 2024. Cash and cash equivalents decreased to $3,121,000 from $4,034,000, while total liabilities rose to $197,000 from $143,000. The accumulated deficit increased to $5,310,000 from $4,445,000, reflecting the ongoing financial challenges faced by the company as it invests in its future operations.

Strategically, Elite Health Systems is focusing on establishing a managed care organization to develop and operate Medicare Advantage plans, particularly in California and Nevada. The company received conditional approval from the Centers for Medicare and Medicaid Services (CMS) for its Medicare Advantage application in June 2025 and is in the process of forming a network of providers. The company has also expanded its share count significantly, with 21,409,924 shares outstanding as of June 30, 2025, following a series of stock issuances to raise capital.

Operationally, the company has not yet generated revenue and is heavily reliant on equity financing to fund its activities. It raised approximately $5.8 million through the private sale of common stock in early 2025 and plans to initiate another private placement in July 2025, targeting proceeds of $2 million to $5 million. Despite these efforts, the company faces substantial doubt regarding its ability to continue as a going concern, as it lacks access to traditional capital sources and must secure necessary approvals to operate its planned Medicare Advantage services.

Looking ahead, management remains optimistic about the potential for future growth, contingent on successfully establishing its Medicare Advantage plans and expanding its operations. However, the company acknowledges the inherent risks and uncertainties associated with its business model, including the need for timely regulatory approvals and the ability to attract and retain subscribers in a competitive market.