10-K - Elite Health Systems Inc. (0001089815) (Filer)

Wed, Apr 2, 8:01 PM (18 days ago)

**Elite Health Systems Inc. (EHS) (OTC Pink: EHSI)** **Financial Performance (2024 vs. 2023):** - **Revenue:** $0 for both years. - **Net Loss:** $2,055,000 (2024) vs. $816,000 (2023). - **Operating Expenses:** $1,793,000 (2024) vs. $765,000 (2023). - **Earnings per Share:** -$0.13 (2024) vs. -$0.09 (2023). **Strategic Overview:** - **Business Focus:** Developing Medicare Advantage plans and related services, initially in California and Nevada. - **Key Subsidiaries:** Elite Health Plan, Inc. (California) and Elite Health Plan of Nevada, Inc. - **Licensing:** Seeking Knox-Keene license in California and CMS approval. **Future Outlook:** - **Market Opportunity:** Growing Medicare Advantage enrollment and an aging population. - **Risks:** Dependence on regulatory approvals, competition, and ability to attract providers and subscribers. - **Funding:** Raised $5.8 million through private placement in 2024, with plans to raise additional capital. **Risk Factors:** - **Regulatory:** Dependence on obtaining necessary licenses and approvals. - **Operational:** Ability to establish a provider network and enroll subscribers. - **Financial:** Need for additional capital and potential dilution of shares. - **Market:** Competition from established health insurers and new entrants. **Financial Condition:** - **Liquidity:** $4,034,000 in cash and cash equivalents (2024) vs. $466,000 (2023). - **Working Capital:** $3,917,000 (2024) vs. -$80,000 (2023). - **Going Concern:** Substantial doubt about the ability to continue as a going concern, but management plans to address this through fundraising and operational strategies. **Market Position Changes:** - **Stock Performance:** Volatile, with significant fluctuations in share price. - **Shareholder Base:** Approximately 122 holders of record as of March 24, 2025. **Management and Governance:** - **Leadership:** Dr. Prasad Jeereddi (CEO and Chairman), Alan Gold (Director), William F. Leimkuhler (Director), and William St. Lawrence (Director). - **Board Composition:** Small board with no separate committees, but an Audit Committee established in 2024. **Cybersecurity:** - **Program:** Based on NIST Cybersecurity Framework and other standards. - **Governance:** Overseen by the Board of Directors and a designated Chief Information Security Officer (CISO). **Legal and Regulatory:** - **Legal Proceedings:** No material litigation currently. - **Compliance:** Subject to various healthcare regulations and fraud and abuse laws.