Elite Health Systems Inc. Reports Q1 2025 Financial Results with Increased Net Loss

Elite Health Systems Inc. reported its financial results for the first quarter of 2025, revealing a net loss of $424,000, an increase from a loss of $312,000 in the same period last year. The company continues to operate without generating revenue, as it is in the development stage of establishing a managed care organization focused on Medicare Advantage plans. Total expenses for the quarter were $427,000, down from $476,000 in the prior year, primarily due to reduced start-up costs associated with its Elite Health Plan initiative.

The company's balance sheet as of March 31, 2025, showed total assets of $4.319 million, slightly down from $4.321 million at the end of 2024. Cash and cash equivalents decreased to $3.696 million from $4.034 million, while total liabilities fell significantly to $91,000 from $143,000. The reduction in liabilities was attributed to lower accounts payable and accrued expenses. The company’s accumulated deficit increased to $4.869 million from $4.445 million, reflecting ongoing operational losses.

In terms of strategic developments, Elite Health Systems has been actively pursuing the necessary licenses to operate its Medicare Advantage plans in California and Nevada. The company has submitted documentation for a Knox-Keene license in California and is in the process of establishing a network of healthcare providers. As part of its growth strategy, the company raised approximately $5.8 million through the private sale of common stock, increasing its total outstanding shares to 21,409,924 as of March 31, 2025.

Operationally, the company has not yet reported any customer counts or user statistics, as it is still in the pre-revenue phase. However, it is focusing on building a provider network and enrolling subscribers, which are critical for its future revenue generation. The company has also formed a subsidiary, Elite Health Plan of Nevada, Inc., to facilitate its expansion into Nevada once it secures the necessary approvals in California.

Looking ahead, management expressed optimism about the company's ability to continue as a going concern, citing plans to manage expenses and the potential for additional capital raises. However, there remains uncertainty regarding the timely acquisition of necessary licenses and the establishment of a sufficient subscriber base. The company’s future success will depend on its ability to navigate these challenges and effectively implement its strategic initiatives in the competitive healthcare market.