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New words:
accredited, Additionally, advance, basic, calculation, ceased, certification, closing, collectively, computed, concentrate, concentrating, consumer, context, credit, critical, debt, deficit, denominator, diversify, doubt, enrolling, enrollment, exemption, favorable, fully, hand, Heath, impaired, impairment, implement, improve, indefinite, involving, issuer, jurisdiction, line, liquidity, long, maximum, Nevada, Neveda, numerator, offer, offering, opportunity, pending, placement, portfolio, price, promulgated, publicly, pursue, readily, referred, registration, Regulation, relied, represent, revise, Rule, sale, Section, solicitation, submit, subsidiary, successfully, tested, twelve, wound, written
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accomplished, applying, Bernadino, contract, decrease, development, effectively, effort, eligible, facility, finalized, funded, funding, growing, history, investing, Keene, Knox, launch, led, limited, lower, minimal, NP, NYU, objective, Orange, organizing, overseeing, percentage, proceed, project, receive, request, requested, require, Riverside, seeking, structured, substantially, trading
Financial report summary
?Risks
- The principal business activity of the Company going forward will be the development of Medical Advantage plans under its Elite Health subsidiaries. This is a new business area for the Company and there can be no assurance that the Company will be successful in advancing its Elite Health business.
- Although we raised capital in early 2024, we will require additional capital, which might not be available on acceptable terms, if at all. If capital is not available to us, our business and financial condition may be impaired, and we may not be able to continue as a going concern.
- If we are unable to secure a Medicare Advantage license in Nevada in a timely manner, acquire managed health consumers in Nevada, expand consumer enrollment beyond this initial state, or diversify and expand our portfolio of products and services, our business and results of operations will be significantly impaired.
- We are subject to risks associated with outsourcing services and functions to third parties. If we are unsuccessful in securing reliable third parties, or if we experience negative outcomes through these parties, our business may be substantially impacted.
- If we or one of our significant vendors sustain a cyber-attack or suffer data privacy or security breaches that disrupt our information systems or operations, or result in the dissemination of sensitive personal or confidential information, we could suffer increased costs, exposure to significant liability, reputational harm, loss of business, and other serious negative consequences.
- Failure to appropriately set premiums or effectively manage our costs could negatively affect our profitability, results of operations and cash flows.
- The costs associated with the launch and development of Medical Advantage plans by our Elite Health subsidiaries or failure to attain profitability in any newly launched or acquired health plans could negatively affect our results of operations.
- We will primarily depend on reimbursement by third-party payors, as well as payments by individuals, which could lead to delays, uncertainties and disagreements regarding the timing and process of reimbursement, including any changes or reductions in Medicare reimbursement rates or rules.
- Our health plans are subject to risk associated with various contractual provisions and regulations establishing medical cost expenditure floors, profit ceilings, risk corridors, and quality withholds.
- If we fail to accurately predict and effectively manage our medical care costs, our operating results could be materially and adversely affected.
- If we are unable to deliver quality care, and maintain good relations with the physicians, hospitals, and other providers with whom we contract, or if we are unable to enter into cost-effective contracts with such providers, our profitability could be adversely affected.
- Our business will depend on our information and medical management systems, and our inability to effectively integrate, manage, update, and keep secure our information and medical management systems could disrupt our operations.
- The use of artificial intelligence (“AI”), data analytics, and other technologies are expected in the future to become a key component in the administration and management of health plans and health care delivery. If we are not successful in utilizing AI initiatives and other advancements in technology in our business, we will not be able to compete effectively and business, reputation, or financial results could be adversely affected.
- Our health plans will operate with very low profit margins, and small changes in operating performance or slight changes to our accounting estimates could have a disproportionate impact on our potential net income.
- Our use and disclosure of personally identifiable information and other non-public information, including protected health information, will be subject to federal and state privacy and security regulations, and our failure or the failure of our vendors to comply with those regulations or to adequately secure the information we hold could result in significant liability or reputational harm.
- Large-scale medical emergencies in one or more states in which we plan to operate our health plans could significantly increase utilization rates and medical costs.
- We will face various risks inherent in the government contracting process that could materially and adversely affect our business and profitability, including periodic routine and non-routine reviews, audits, and investigations by government agencies.
- Any changes to the laws and regulations governing our business, or the interpretation and enforcement of those laws or regulations, could require us to modify our operations and could negatively impact our operating results.
- We will be subject to extensive fraud and abuse laws that may give rise to lawsuits and claims against us, the outcome of which may have a material adverse effect on our potential business, financial condition, cash flows, or results of operations.
- Medical liability claims made against us in the future could cause us to incur significant expenses and pay significant damages if not covered by insurance.
- Stock Price Volatility; Illiquid Trading Market
- Our stock price has experienced significant volatility and may change significantly in the future, as a result you may not be able to resell shares of our common stock at or above the price investors paid or at all, and investors could lose all or part of their investment as a result.
- Our quarterly operating results fluctuate and may fall short of prior periods, our projections or the expectations of investors or securities analysts, which could materially adversely affect our stock price.
- We are dependent on the leadership of the chief executive officer and other key employees of our operating subsidiaries. Moreover, if we are unable to attract and retain additional executives in the near term, our business could be negatively impacted.
- Failure to maintain effective internal controls over financial reporting could have a material adverse effect on our business, operating results, and stock price, and could subject us to sanctions by regulatory authorities.
- The expense and administrative burdens as a public company could have an adverse effect on the Company and its business, financial condition and results of operations.
Management Discussion
- There was no patient revenue or expenses in 2023 or 2022.
- SG&A decreased by $622,000 or 45% from $1,386,000 in 2022 to $764,000 in 2023, due in part to a reduction in salaries, audit fees, and the impairment of goodwill during 2022. Loss from investments in unconsolidated entities decreased from $163,000 in 2022 to $46,000 in 2023. Gain from investments in unconsolidated entities increased $39,000 to $55,000 in 2023. The Company reported a net loss of $757,000 in 2023, as compared to $1,572,000 in 2022. The Company incurred an income tax charge of $0 in 2023 as compared to $39,000 in 2022.