Internal Control Deficiencies & Material Weakness Identified- BioScrip May Delay Form 10-K Filing
On March 8, 2018, BioScrip, Inc. (NASDAQ: BIOS), “the largest independent national provider of infusion home care management solutions,” announced its “Fourth Quarter and Full Year 2017 Financial Results.” In relevant part, BioScrip’s announcement revealed that
[a]s a result of the detailed review of [BioScrip’s] financial statements performed by the [BioScrip’s] CFO and interim-CAO during the preparation of [BioScrip’s] financial statements for the full year 2017, [BIOS] identified internal control deficiencies in connection with account reconciliations for certain asset and liability accounts. The potential financial statement errors discovered to date resulting from these internal control deficiencies do not appear to be material, but the review is ongoing. [BIOS], along with its external auditors, continues to review the possible errors and, if required, will reflect any necessary revisions and may report one or more internal control material weaknesses in its upcoming Form 10-K filing. Depending on the timing of the completion of this review, [BioScrip] may need to delay the filing of the Form 10-K.
Separately, [BioScrip] has identified and will report a material weakness related to certain spreadsheets used to calculate periodic adjustments to accounts that do not impact Adjusted EBITDA, including amortization of intangible assets, equity-linked liabilities and the amortization of discounts and deferred issuance costs of debt. The material weakness did not have any effect on the Company’s 2017 financial statements.
On this news, shares of BioScrip dropped during intraday trading on March 8, 2018 to close at $2.60, down 15.47% from the previous day’s closing price.
BioScrip, Inc. Shareholders & Investors
Kehoe Law Firm, P.C. is investigating claims on behalf of investors of BioScrip, Inc. to determine whether BioScrip, Inc. and certain of its officers or directors engaged in securities fraud or other unlawful business practices. If you purchased, or otherwise acquired, BIOS shares and have questions or concerns about the securities investigation or your potential legal rights, please contact John Kehoe, Esq., (215) 792-6676, Ext. 801, [email protected], complete the form above on the right or e-mail [email protected].