First Choice Healthcare Solutions, Inc. (FCHS) reported significant financial developments in its 10-Q filing for the period ending September 30, 2024. The company experienced a notable increase in total assets, which rose to $4.7 million from $3.1 million at the end of 2023. Current assets also improved, reaching $559,257 compared to $311,682 previously. However, current liabilities increased to $9.3 million, up from $8.4 million, and the current portion of notes payable rose to $22.7 million from $19.2 million.

FCHS reported a revenue decline, with total revenue for the nine months ending September 30, 2024, at $(19,801), a decrease of 47% from $(13,450) in the same period of 2023. The company attributed this decline to reduced service offerings and increased bad debt reserves. For the three months ended September 30, 2024, revenue was $(29,955), compared to $12,556 in the prior year.

Operating expenses decreased significantly, totaling $1.4 million for the nine months ended September 30, 2024, down from $2.4 million in 2023. This reduction was primarily due to a strategic pivot initiative, which led to a 43% decrease in general and administrative expenses. The operating loss for the nine months was $(1.4 million), an improvement from $(2.4 million) in the previous year.

The net loss before income taxes for the three months ended September 30, 2024, was $(817,207), a substantial reduction from $(3 million) in the same quarter of 2023. The net loss attributable to common shareholders for the nine months was $(3.9 million), down from $(7.8 million) in the prior year, reflecting a 49% improvement.

Cash flow from operations showed a positive shift, with net cash provided amounting to $685,385 for the nine months ended September 30, 2024, compared to a net cash outflow of $(5.1 million) in the same period of 2023. However, net cash used in investing activities was $(1.6 million), contrasting with net cash provided of $142,903 in the previous year.

Strategically, FCHS has focused on building a network of integrated healthcare services, including nurse practitioner-driven primary care clinics. The company has also engaged in lease agreements for clinic facilities and proposed an exchange of outstanding convertible notes and preferred stock for new Series C preferred stock. As of September 30, 2024, the company had a working capital deficit of $31.9 million and an accumulated deficit of $67.8 million.