Veradigm, an EHR vendor formerly known as Allscripts, received its third notice of noncompliance from Nasdaq after failing to file three financial reports with the SEC on time.
The company has not filed its annual report on Form 10-K from Dec. 31, 2022, and quarterly reports on Form 10-Q from March 31, 2023, and June 30, 2023, making it noncompliant under Nasdaq Listing Rule 5250(c)(1), according to an Aug. 18 news release from Veradigm.
The company attributes its inability to file the reports to "internal control failures that primarily stem from account processes and a software tool implemented by the Company in order to comply with the requirements of [the Financial Accounting Standards Board's] rule ASC 606," according to the release
Following the first two notices, Veradigm submitted a compliance plan to Nasdaq and received approval. The company has stated plans to submit an update to the compliance form by Aug. 31 to file the Q2 Form 10-Q and has until Sept. 18 to file all three forms.
Veradigm said the company "hopes" to file the forms on time, but "there can be no assurance that the Company will be able to meet that deadline and regain compliance," according to the report.