Ethema Health Corporation (OTC: GRST) released its Q1 2025 quarterly results on October 17, 2025, after significant audit-related delays. The company reported a substantial increase in revenue, growing from $1.3 million in the prior year to $3.518 million, driven primarily by its recently acquired Aria Kentucky operations, which contributed $2.802 million since January 9, 2025. Existing Florida operations also grew 10.5% to $1.437 million, including revenue from the Boca Raton facility acquired in May 2024, following licensing delays.
Operating expenses rose significantly from $1.529 million to $4.165 million, with personnel costs increasing from $0.727 million to $2.063 million. Of this, $1.178 million relates to Aria Kentucky, while the remaining $0.885 million increase is tied to Florida operations, including a full staff complement at the Boca Raton facility as revenue ramps up. Rental expense increased from $0.265 million to $0.740 million, primarily from Kentucky facilities ($0.353 million) and the Boca Raton facility ($0.122 million). The company noted that both Aria Kentucky and Boca Raton have significant bed capacity, providing opportunities to increase patient count and improve operational efficiency.
Patient-related expenses, such as food and utilities, also increased as patient counts grew. Professional fees rose due to one-time deal-related costs. The higher operating expenses resulted in an operating loss of $0.647 million, up from $0.229 million, but management expressed confidence that increased revenues and improved efficiencies will lead to operating income in the near term. Cash flow used in operations improved from $0.106 million to $0.073 million, a positive sign given the acquisition and facility launch.
Interest expense and debt discount expense combined rose from $0.156 million to $0.428 million, largely due to interest-bearing assumed liabilities and debt funding for the Aria Kentucky acquisition. The company anticipates replacing expensive debt in both Kentucky and Florida operations with equity and cheaper bank funding.
Management expects significant revenue increases in Q2 and Q3 2025, with Q2 revenue projected to rise approximately 40% from Q1, and Q3 revenue another 10% from Q2. The company expects to complete Q2 and Q3 reviews within 30 to 45 days after filing Q1 results, which will restore its trading status on the OTC-ID market.
CEO Shawn Leon reported that Florida facilities operated near capacity in July, and Kentucky facilities reached maximum capacity in their online residential facilities in August. An additional facility in Paducah, Kentucky came online in August, and another dormant residential facility in Morehead, Kentucky is expected to open in November. Construction on the ARIA Kentucky new head office in Morehead is underway, with completion expected in December 2025. Leon noted that the integration of Kentucky operations has gone smoothly, and the Joint Commission audit in Florida yielded excellent results. The new Kentucky entity will undergo its first CARF accreditation audit at the end of October. The company remains focused on optimizing assets and increasing patient counts to improve profitability.
For more information, visit www.ethemahealth.com.
