Ethema Health Corporation reported its financial results for the third quarter and nine months ended September 30, 2024, highlighting significant changes in revenue, operating expenses, and overall financial health compared to the previous fiscal period.

For the third quarter of 2024, Ethema generated revenues of $1.76 million, a 30.0% increase from $1.35 million in the same period of 2023. This growth is attributed to a rise in patient numbers at its West Palm Beach facility, driven by enhanced marketing efforts. For the nine months ended September 30, 2024, total revenues reached $4.55 million, up 7.8% from $4.22 million in the prior year, primarily due to increased bed availability and in-network provider status.

Despite the revenue growth, the company faced a substantial increase in operating expenses, which totaled $2.48 million for Q3 2024, an 88.1% rise from $1.32 million in Q3 2023. The nine-month operating expenses also surged to $5.78 million, a 41.7% increase from $4.08 million in the previous year. Key contributors to this rise included significant increases in rent expenses due to new lease agreements, management fees, and salaries, reflecting the company's expansion efforts.

Ethema reported an operating loss of $723,708 for Q3 2024, compared to an operating income of $33,528 in Q3 2023. The nine-month operating loss was $1.23 million, a stark contrast to the operating income of $140,700 reported for the same period in 2023. The net loss for Q3 2024 was $1.00 million, compared to a net income of $2.11 million in Q3 2023, largely due to the previous year's gain on property disposal and increased operational costs.

Strategically, Ethema has made significant acquisitions, including the remaining 25% interest in ATHI for $1.1 million and the Boca Cove Detox Center for $240,000. These acquisitions are part of the company's broader strategy to expand its service offerings and operational capacity. Additionally, Ethema has been managing the Edgewater Recovery Center in Kentucky since July 2024, which is expected to contribute positively to revenue.

As of September 30, 2024, Ethema reported total assets of $12.32 million and total liabilities of $19.45 million, resulting in a working capital deficiency of approximately $7.1 million. The company has acknowledged high liquidity risk and plans to raise additional capital to support its operations and growth initiatives.