Mon, Aug 19, 8:53 PM (148 days ago)
Ethema Health Corporation's Q2 2024 results reflect significant financial challenges, characterized by a revenue decline of 4.8% to $1,490,100, primarily due to the cessation of rental income following the sale of its subsidiary, Cranberry Cove Holdings. Operating expenses surged by 15.2% to $1,767,610 driven by increased administrative costs and rent, following new lease agreements. The company reported an operating loss of $277,510 compared to a profit of $32,146 in Q2 2023. For the six months ending June 30, 2024, total revenues fell 2.6% to $2,790,200, while operating expenses rose 19.5% to $3,296,785, leading to a net loss of $839,478, up from $407,872 year-on-year. The company faces a working capital deficiency of $8.2 million, raising substantial doubt about its ability to continue as a going concern. Future financing is crucial, as management anticipates needing approximately $3.5 million in capital over the next year. Cash flow from operations turned negative at $(269,920), contrasting with positive cash flow in the prior year, indicating deteriorating liquidity.