WELL Health Announces Delay in Filing of Annual Audited Financial Statements Due to Matter Related to US Subsidiary Circle Medical
WELL Health Technologies (TSX: WELL, OTCQX: WHTCF) has announced a delay in filing its 2024 audited annual financial statements beyond the March 31, 2025 deadline. The delay stems from accounting implications related to its subsidiary Circle Medical Technologies, which is under investigation by the U.S. Attorney's Office regarding certain billing practices.
Circle Medical, which contributed a net loss of $1.1 million to WELL's consolidated net income of $16.6 million in 2023 and less than 2.7% to consolidated Adjusted EBITDA, received a request for voluntary production of documents in September 2024. WELL expects to file the required documents by April 15, 2025, and has applied for a management cease trade order during this period.
The company states that the resolution is not expected to materially affect its cash position and confirms it continues to seek strategic alternatives for Circle Medical.
WELL Health Technologies (TSX: WELL, OTCQX: WHTCF) ha annunciato un ritardo nella presentazione dei suoi bilanci annuali auditati per il 2024, oltre la scadenza del 31 marzo 2025. Il ritardo è dovuto a implicazioni contabili relative alla sua controllata Circle Medical Technologies, attualmente sotto inchiesta da parte dell'Ufficio del Procuratore degli Stati Uniti riguardo a determinate pratiche di fatturazione.
Circle Medical, che ha contribuito con una perdita netta di $1,1 milioni al reddito netto consolidato di WELL di $16,6 milioni nel 2023 e meno del 2,7% all'EBITDA consolidato rettificato, ha ricevuto una richiesta di produzione volontaria di documenti nel settembre 2024. WELL prevede di presentare i documenti richiesti entro il 15 aprile 2025 e ha richiesto un'ordinanza di cessazione del commercio durante questo periodo.
La società afferma che la risoluzione non dovrebbe influenzare materialmente la sua posizione di cassa e conferma di continuare a cercare alternative strategiche per Circle Medical.
WELL Health Technologies (TSX: WELL, OTCQX: WHTCF) ha anunciado un retraso en la presentación de sus estados financieros anuales auditados para 2024, más allá de la fecha límite del 31 de marzo de 2025. El retraso se debe a implicaciones contables relacionadas con su filial Circle Medical Technologies, que está siendo investigada por la Oficina del Fiscal de EE. UU. en relación con ciertas prácticas de facturación.
Circle Medical, que contribuyó con una pérdida neta de $1.1 millones al ingreso neto consolidado de WELL de $16.6 millones en 2023 y menos del 2.7% al EBITDA consolidado ajustado, recibió una solicitud de producción voluntaria de documentos en septiembre de 2024. WELL espera presentar los documentos requeridos antes del 15 de abril de 2025 y ha solicitado una orden de cese de operaciones durante este periodo.
La empresa afirma que la resolución no se espera que afecte materialmente su posición de efectivo y confirma que continúa buscando alternativas estratégicas para Circle Medical.
WELL Health Technologies (TSX: WELL, OTCQX: WHTCF)는 2024년 감사된 연간 재무제표 제출이 2025년 3월 31일 마감일을 넘어 지연될 것이라고 발표했습니다. 이 지연은 자회사 Circle Medical Technologies와 관련된 회계 문제에서 비롯되며, 해당 자회사는 특정 청구 관행에 대해 미국 검찰청의 조사를 받고 있습니다.
Circle Medical은 2023년 WELL의 총 순이익 1,660만 달러 중 110만 달러의 순손실을 기여했으며, 조정된 총 EBITDA의 2.7% 미만을 차지했습니다. Circle Medical은 2024년 9월에 문서 자발적 제출 요청을 받았습니다. WELL은 필요한 문서를 2025년 4월 15일 이전에 제출할 것으로 예상하며, 이 기간 동안 경영 중단 명령을 신청했습니다.
회사는 이 문제의 해결이 현금 위치에 실질적으로 영향을 미치지 않을 것으로 예상하며, Circle Medical에 대한 전략적 대안을 계속 모색하고 있다고 확인했습니다.
WELL Health Technologies (TSX: WELL, OTCQX: WHTCF) a annoncé un retard dans le dépôt de ses états financiers annuels audités pour 2024, au-delà de la date limite du 31 mars 2025. Ce retard est dû à des implications comptables liées à sa filiale Circle Medical Technologies, qui fait l'objet d'une enquête du bureau du procureur américain concernant certaines pratiques de facturation.
Circle Medical, qui a contribué à une perte nette de 1,1 million de dollars au revenu net consolidé de WELL de 16,6 millions de dollars en 2023 et moins de 2,7 % à l'EBITDA consolidé ajusté, a reçu une demande de production volontaire de documents en septembre 2024. WELL s'attend à déposer les documents requis d'ici le 15 avril 2025 et a demandé une ordonnance de cessation des échanges pendant cette période.
L'entreprise indique que la résolution ne devrait pas avoir d'impact matériel sur sa position de trésorerie et confirme qu'elle continue à rechercher des alternatives stratégiques pour Circle Medical.
WELL Health Technologies (TSX: WELL, OTCQX: WHTCF) hat eine Verzögerung bei der Einreichung seiner geprüften Jahresfinanzberichte für 2024 über die Frist vom 31. März 2025 hinaus angekündigt. Die Verzögerung ist auf buchhalterische Implikationen im Zusammenhang mit seiner Tochtergesellschaft Circle Medical Technologies zurückzuführen, die von der US-Staatsanwaltschaft wegen bestimmter Abrechnungspraktiken untersucht wird.
Circle Medical, das im Jahr 2023 einen Nettoverlust von 1,1 Millionen Dollar zum konsolidierten Nettoeinkommen von WELL in Höhe von 16,6 Millionen Dollar beigetragen hat und weniger als 2,7% zum konsolidierten bereinigten EBITDA, erhielt im September 2024 eine Anfrage zur freiwilligen Vorlage von Dokumenten. WELL erwartet, die erforderlichen Dokumente bis zum 15. April 2025 einzureichen, und hat während dieses Zeitraums einen Handelsstopp beantragt.
Das Unternehmen erklärt, dass die Lösung voraussichtlich keine wesentlichen Auswirkungen auf seine Liquidität haben wird und bestätigt, dass es weiterhin strategische Alternativen für Circle Medical sucht.
- Investigation's resolution not expected to materially impact company's cash position
- Circle Medical represents minimal exposure, contributing less than 2.7% to consolidated Adjusted EBITDA
- Delay in filing annual audited financial statements beyond deadline
- Circle Medical under U.S. Attorney's Office investigation for billing practices
- Circle Medical contributed net loss of $1.1 million in 2023
- Potential risk of general cease trade order if filing requirements not met
- Management cease trade order pending approval
The delay is resulting from the accounting implications related to the Company's non-wholly owned
In September 2024, Circle Medical received a request for the voluntary production of documents and information ("RFI") from the Civil Division of
The Company does not expect the resolution of the matter to have a material effect on the Company's cash position or available resources. The Company and Circle Medical are currently working diligently to finalise the Company's annual consolidated financial statements at the earliest possible date. The Company currently expects to be in a position to file the Required Filings on or before April 15, 2025 (the "Filing Interval").
Notwithstanding the foregoing, the Company confirms that it continues to seek strategic alternatives for Circle Medical and is committed to carrying out this process in due course.
The Company has applied to the British Columbia Securities Commission, as principal regulator for the Company, for the imposition of a management cease trade order under National Policy 12-203 – Management Cease Trade Orders ("NP 12-203") throughout the duration of the Filing Interval. However, there can be no assurance that a management cease trade order will be granted. The management cease trade order, if approved, will not affect the ability of persons who are not or have not been management of the Company to trade in its securities.
WELL confirms that it will satisfy the provisions of the alternative information guidelines under NP 12-203 by issuing bi-weekly default status reports, if necessary, in the form of news releases for so long as it remains in default of the above-noted filing requirements. The British Columbia Securities Commission may issue a general cease trade order against WELL for failure to file the Required Filings within the prescribed time period or sooner if WELL fails to file the prescribed status reports.
Other than as disclosed herein, WELL is up to date in its filing obligations.
Footnote: | |
1. | Non-GAAP Financial Measures – Adjusted EBITDA |
In addition to results reported in accordance with IFRS, the Company uses Adjusted EBITDA as a supplemental indicator of its financial and operating performance. The Company believes this non-GAAP financial measure reflects the Company's ongoing business in a manner that allows for meaningful period-to-period comparisons and analysis of trends in its business. The Company defines Adjusted EBITDA as net income (loss) before interest, taxes, depreciation and amortization less (i) net rent expense on premise leases considered to be finance leases under IFRS and before (ii) transaction, restructuring, and integration costs, time-based earn-out expense, change in fair value of investments, share of income (loss) of associates, foreign exchange gain/loss, and stock-based compensation expense, and (iii) gains/losses that are not reflective of ongoing operating performance. The Company considers Adjusted EBITDA to be a financial metric that measures cash flow that can be used to fund working capital requirements, service future interest and principal debt repayments, and fund future growth initiatives. Adjusted EBITDA should not be considered an alternative to net income (loss), cash flow from operating activities, or other measures of financial performance defined under IFRS. A reconciliation of Adjusted EBITDA to the most directly comparable IFRS measure can be found in the Company's Fiscal 2023 Annual MD&A. |
WELL HEALTH TECHNOLOGIES CORP.
Per: "Hamed Shahbazi"
Hamed Shahbazi
Chief Executive Officer, Chairman and Director
About WELL Health Technologies Corp.
WELL's mission is to tech-enable healthcare providers. We do this by developing the best technologies, services, and support available, which ensures healthcare providers are empowered to positively impact patient outcomes. WELL's comprehensive healthcare and digital platform includes extensive front and back-office management software applications that help physicians run and secure their practices. WELL's solutions enable more than 41,000 healthcare providers between the US and
Forward-Looking Information
This news release contains "Forward-Looking Information" within the meaning of applicable Canadian securities laws, including, without limitation: statements regarding the grant of a management cease trade order, expected timing of the Required Filings, the impact of the resolution of the USAO RFI on WELL, and the ability to consummate strategic alternatives for Circle Medical. Forward-Looking Information is based on a number of estimates and assumptions are inherently subject to significant business, economic and competitive uncertainties and contingencies, many of which are beyond WELL's control, which could cause actual results and events to differ materially from those disclosed in this news release. Forward-Looking Information generally can be identified by the use of forward-looking words such as "may", "should", "will", "could", "intend", "estimate", "plan", "anticipate", "expect", "believe", "goal" or "continue", or the negative thereof or similar variations. Forward-Looking Information involves known and unknown risks, uncertainties and other factors that may cause future results, performance, or achievements to be materially different from the estimated future results, performance or achievements expressed or implied by the Forward-Looking Information and the Forward-Looking Information is not a guarantee of future results or performance. WELL's comments expressed or implied by such Forward-Looking Information are subject to a number of risks, uncertainties, and conditions, many of which are outside of WELL's control, and undue reliance should not be placed on such information. Forward-Looking Information are qualified in their entirety by inherent risks and uncertainties, including the risk factors identified in documents filed by WELL under its profile at www.sedar.com, including its most recent Annual Information Form and its most recent Management's Discussion and Analysis. Except as required by securities law, WELL does not assume any obligation to update or revise any forward-looking information, whether as a result of new information, events or otherwise.
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SOURCE WELL Health Technologies Corp.
FAQ
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