First Choice Healthcare Solutions Reports $1.4 Million Net Loss and 41% Revenue Decline for Q1 2025

First Choice Healthcare Solutions, Inc. reported a net loss of $1.4 million for the three months ending March 31, 2025, marking a 16% increase from the $1.2 million loss recorded in the same period of the previous year. The company's revenue for the quarter was $4,033, a significant decline of 41% from $6,851 in the prior year, primarily due to the elimination of certain service offerings and a decrease in patient visits. Operating expenses rose to $588,489, up from $503,677, driven by increased rent charges and interest expenses associated with new leases.

The company's total assets decreased to $4.4 million as of March 31, 2025, down from $4.5 million at the end of 2024. Current assets also fell, with cash and cash equivalents increasing to $29,645 from $19,915, while other current assets dropped significantly from $72,270 to $40,287. Total liabilities increased to $38.3 million, compared to $37.0 million at the end of the previous fiscal year, reflecting a rise in accounts payable and accrued expenses.

Operationally, First Choice Healthcare Solutions has been focusing on restructuring its business model, which includes a defined growth strategy aimed at building a network of integrated healthcare services. The company has been actively working to repair relationships with employees and referral sources, which were negatively impacted by past management issues. As part of its strategy, the company has reduced its workforce in previous years to cut costs while aiming to enhance its service offerings.

The company’s cash flow from operating activities showed a net outflow of $292,031 for the first quarter of 2025, compared to a smaller outflow of $78,943 in the same quarter of 2024. This increase in cash used was attributed to higher accounts payable. In terms of financing, First Choice secured $336,761 from the issuance of convertible notes during the quarter, compared to $75,000 in the prior year, indicating a reliance on external funding to support operations.

Looking ahead, First Choice Healthcare Solutions acknowledges the need for additional capital to execute its business development plan effectively. The company is exploring various funding options, including public or private equity offerings and debt financing. However, it also recognizes that failure to secure necessary capital could hinder its growth initiatives and operational sustainability, raising concerns about its ability to continue as a going concern.