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For more than 30 years, Cabling Installation & Maintenance has provided useful, practical information to professionals responsible for the specification, design, installation and management of structured cabling systems serving enterprise, data center and other environments. These professionals are challenged to stay informed of constantly evolving standards, system-design and installation approaches, product and system capabilities, technologies, as well as applications that rely on high-performance structured cabling systems. Our editors synthesize these complex issues into multiple information products. This portfolio of information products provides concrete detail that improves the efficiency of day-to-day operations, and equips cabling professionals with the perspective that enables strategic planning for networks’ optimum long-term performance.

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Ethema Files First Quarter Financials

WEST PALM BEACH, FL - (NewMediaWire) - May 31, 2024 - Ethema Health Corporation (OTCPINK: GRST) (“Ethema” “GRST” or the “Company”), filed its first quarter 10-Q today. The Company changed auditors in late 2023 and filing the 2023 10-K and 2024 first quarter were a challenge for the new auditors. Both of these filings were filed beyond their due dates resulting in a yield sign being placed on the Company’s stock symbol.   This symbol will be removed as the filings are now up to date.  The Company does not anticipate any further late filings in future quarters.   

Revenue from our core in-patient services increased by 7.4% from $1.2 million in Q1 2023 to $1.3 million in Q1 2024. The increase is in line with expectations, with a slight impact of current market conditions being felt by the business. 

We disposed of our property-owning subsidiary in June 2023 which generated revenue of $0.1 million in Q1 2023.  

Operating expenses increased by 24.2% from $1.2 million in Q1 2023 to $1.5 million in Q1 2024. The increase was primarily due to increases in (i) salary expenses as we increased head count to operate at maximum capacity; (ii) general and administrative expenses due to inflationary pressures and (iii) rental expense due to a property acquisition and sale transaction which was executed to inject cash flow into the business. 

This resulted in an operating loss of $0.3 million for Q1 2024 compared to an operating income of $0.1 million for Q1 2023. We do not expect this trend to continue as we streamline our business and grow through our strategy of acquiring new patients, improving our revenue collection process and acquiring new facilities with minimal increase in operating costs.

Mr. Shawn Leon, Company CEO, reported, “We are disappointed with the late filing of both the 2023 10-K, and the 2024 first quarter 10-Q due to the change in auditors but that is behind us now and we do not expect any further late filings.  The first quarter revenues are generally lower than the rest of the year and our first quarter results were impacted by increases in operating expenses.  The operating expenses are up due to increase in rents as a result of our sale/leaseback transaction completed last summer and increased salaries with the addition of an executive director and a management team that are necessary to manage the expected growth in the periods ahead.  We expect to show substantially better profitability in the remaining quarters of 2024.”   

About Ethema Health Corporation

Ethema Health Corporation (OTCPINK: GRST) operates in the behavioral healthcare space specifically in the treatment of substance use disorders. Ethema developed a unique style of treatment over the last decade and has had much success with in-patient treatment for adults. Ethema will continue to develop world class programs and techniques for North America.  For more information you can visit our website at www.ethemahealth.com.  

Notice Regarding Forward-Looking Statements

The information contained herein includes forward-looking statements.  These statements relate to future events or to our future financial performance, and involve known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance, or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements. You should not place undue reliance on forward-looking statements since they involve known and unknown risks, uncertainties and other factors which are, in some cases, beyond our control and which could, and likely will, materially affect actual results, levels of activity, performance or achievements.  Any forward-looking statement reflects our current views with respect to future events and is subject to these and other risks, uncertainties and assumptions relating to our operations, results of operations, growth strategy and liquidity.  We assume no obligation to publicly update or revise these forward-looking statements for any reason, or to update the reasons actual results could differ materially from those anticipated in these forward-looking statements, even if new information becomes available in the future.

For information please contact:

Ethema Health Corporation

shawn@ethemahealth.com       

Text to 416-500-0020

Twitter @healthethema

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