Ethema Files Q1 2025 Quarterly Results

October 17, 2025 at 15:00 PM EDT

WEST PALM BEACH, FL - October 17, 2025 (NEWMEDIAWIRE) - Ethema Health Corporation (OTC: GRST) (“Ethema” or the “Company”), released its Q1 2025 results today after experiencing significant audit review related delays and expects to get Q2 2025 and Q3 2025 reviewed within the next 30 to 45 days. Once these reviews are completed and filed, we will restore our trading status on the OTC-ID market.

2025 Q1 Results

Our Q1 2025 results included our recently acquired Aria Kentucky operations from January 9, 2025.

Overall revenue grew from $1.300 million to $3,518 million, including $2.802 million from Aria Kentucky and existing revenue from our Florida operations grew by 10.5% to $1.437 million. Existing revenue included revenue from our Boca Raton facility, which was acquired in May 2024, for the first time, after licensing delays.

Our operating expenses have increased significantly from $1.529 million to $4.165 million. The most significant component of this cost is our personnel cost which has increased from $0.727 million to $2,063 million, of which $1.178 million relates to Aria Kentucky. The remaining increase of $0.885 million relates to our Florida operations which includes a full complement of staff at our Boca Raton facility, with revenue ramping up in this facility.

Rental expense has also increased significantly from $0.265 million to $0.740 million, primarily due to rental expense of $0.353 million incurred on our Kentucky facilities, the remaining increase of $0.122 million is primarily related to our Boca Raton facility. The Aria Kentucky and the Boca Raton facility have significant bed capacity, which gives us the opportunity to increase our customer count, improving our revenues and operating efficiency.

We have also seen an increase in patient related expenses, such as food and utility expenses in our facilities. As we increase our patient count and understand the operating costs of our newly acquired Kentucky operations and our Boca Raton facility we expect operational efficiencies to improve dramatically.

We also saw an increase in professional fees, primarily once off and deal related which impacted our operational expenses for Q1 2025.

The increased operating expenses offset our increased revenues resulting in an operating loss increasing from $0.229 million to $0.647 million, however we are confident that our increased revenues and improved operating efficiencies will result in a turnaround to operating income in the near term.

Although we saw an increase in operating losses, our cash flow utilized in operations decreased from $0.106 million to $0.073 million, which is verry encouraging in light of the significant acquisition and the launch of the Boca Raton facility.

Our interest expense and debt discount expense increased from a combined $0.156 million to $0.428 million. The increase is primarily due to the interest bearing assumed liabilities and debt funding used to acquire the assets in Aria Kentucky, however we anticipate replacing some expensive debt in both our Aria Kentucky operations and our Florida operations with a combination of equity and cheaper banking relationship funding.

We will show very significant revenue increases in Q2 and Q3 when those quarters are filed in the near future. The revenue increase from Q1 to Q2 will be approximately 40% and the revenue increase from Q2 to Q3 will be another approximately 10%.

SEC Filings and Operational Updates

We believe that we have addressed with our auditors the significant delays experienced in our 2024 year-end and subsequent Q1 2025 process and expect our Q2 2025 and Q3 2025 to be completed in the very near term. The Q2 financials are complete and will be reviewed immediately after the filing of our Q1 report. The company will restore its trading status on the OTC-ID market as soon as its filings are up to date.

Mr. Shawn Leon, our CEO, reported that “the Florida facilities operated at near capacity in July and the Kentucky facilities continue to increase its patient census and reached maximum capacity in its currently online residential facilities in August. An additional facility in Paducah, Kentucky was brough online in August and the Company expects to bring another dormant residential facility in Morehead, Kentucky online in November. This would leave only one dormant residential facility to bring online in Morehead before bringing its last residential facility, which has been temporarily used as the Kentucky head office, back on-line. Construction is underway on the ARIA Kentucky new head office in Morehead and is expected to be completed in December 2025”.

Mr. Leon added that “we are delighted to be integrating the significant Kentucky operations, which has gone very smoothly, and is attributable to our very dedicated teams in Florida and Kentucky. The Joint Commission audit in Florida was one of our best ever results for an accrediting audit and I am very proud of the Florida team for that accomplishment. The new Kentucky entity will be going through its first CARF accreditation audit at the end of October. We will continue to optimize the Florida and Kentucky assets and increase our patient count in our facilities, which will improve our profitability prospects.”

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

View the original release on www.newmediawire.com

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