Ethema Health Corporation Reports $6.02 Million Revenue for Fiscal Year 2024, Faces Operating Loss

Ethema Health Corporation reported a revenue of $6.02 million for the fiscal year ending December 31, 2024, marking a 12.6% increase from $5.34 million in 2023. The growth in revenue was primarily driven by a 16.5% rise in patient treatment revenue, which reached $6.02 million compared to $5.16 million in the previous year. However, the company experienced a significant decline in rental income, which fell to zero from $180,522, following the disposal of its real property subsidiary, Cranberry Cove Holdings, in June 2023.

Operating expenses surged to $7.35 million, up 24.9% from $5.89 million in 2023. This increase was attributed to higher general and administrative costs, which rose by 48.9% to $1.55 million, largely due to increased advertising and marketing expenditures aimed at attracting new patients. Rent expenses also saw a substantial increase of 112.1%, reflecting the new lease agreement for the West Palm Beach facility acquired in August 2023. The company reported an operating loss of $1.33 million, compared to a loss of $541,920 in the prior year, indicating a worsening financial position.

In terms of strategic developments, Ethema completed the acquisition of the remaining 25% interest in American Treatment Holdings, Inc. (ATHI) for $1.1 million in May 2024, consolidating its ownership of the Evernia treatment facility. Additionally, the company entered into a lease agreement for a new treatment facility in Boca Raton, Florida, which is expected to begin generating revenue in January 2025. As of December 31, 2024, Ethema employed 70 full-time staff and 14 part-time contractors, reflecting an increase in headcount to support its expanding operations.

The company’s financial health remains precarious, with an accumulated deficit of $44.4 million and a working capital deficiency of $9.1 million as of year-end 2024. Ethema's total liabilities exceeded its total assets by $7.5 million, raising substantial doubt about its ability to continue as a going concern. Management indicated that the company would require approximately $3.8 million in funding over the next twelve months to meet its obligations and continue operations. The outlook remains uncertain, as the company will need to secure additional capital through equity or debt financing to support its business plan and operational needs.