WELL Health Technologies Faces Delay in Annual Financial Filing Due to Subsidiary's Billing Practice Inquiry
WELL Health Technologies Corp., based in Vancouver, has announced a delay in filing its annual audited financial statements for the fiscal year that ended on December 31, 2024. The company, which operates in the digital healthcare sector, has attributed this delay to accounting matters related to its subsidiary, Circle Medical Technologies, Inc., located in Delaware.
In its recent communication, WELL Health noted that the mandated filings, which include comprehensive financial documents and management discussions, will miss the deadline of March 31, 2025. The root of the issue is tied to an inquiry prompted by the Civil Division of the United States Attorney's Office for the Northern District of California, which is investigating the billing practices of Circle Medical. This inquiry began in September 2024 when the U.S. Attorney's Office requested the voluntary production of specific documents pertaining to these practices.
Circle Medical incurred a net loss of approximately $1.1 million during the previous fiscal year, which contributed to WELL's consolidated net income of $16.6 million. Despite this setback, Circle Medical accounted for a minor fraction of less than 2.7% of WELL's consolidated Adjusted EBITDA, highlighting its relatively limited financial impact on the larger organization.
The company is actively engaged in addressing the requests from the U.S. Attorney's Office and is working diligently to finalize Circle Medical's financial statements. Ultimately, this process will help to complete WELL Health's annual financial statements. However, it is anticipated that the information gathering and subsequent analyses may not be accomplished before the filing deadline.
Looking ahead, WELL Health expects to submit the required documents by April 15, 2025, contingent on completing the necessary assessments concerning Circle Medical's financial activities. Although this delay is concerning, the company reassured stakeholders that it does not foresee a substantial adverse effect on its overall cash position or resource availability because of this situation.
The firm is also exploring strategic alternatives for Circle Medical as part of its ongoing management strategy. They have requested a management cease trade order from the British Columbia Securities Commission. This order would prevent the company management from trading shares during the filing delay, yet it would not impede non-management stakeholders from trading their securities.
To keep investors and the public informed throughout this period, WELL Health plans to provide bi-weekly updates regarding the status of its filing obligations. The British Columbia Securities Commission retains the authority to impose a general cease trade order if the company fails to address its filing requirements punctually or does not submit the status reports.
As of now, WELL maintains compliance with its other filing obligations. The company continues to focus on its mission to enhance healthcare delivery through innovative technology, enabling healthcare practitioners to achieve better outcomes for their patients. WELL's established presence, which supports over 41,000 healthcare providers across North America, underlines its commitment to improving the efficiency of healthcare services.
Despite current challenges with Circle Medical, WELL Health Technologies Corp. remains dedicated to navigating the financial and operational landscape and is focused on strengthening its healthcare solutions in Canada and the United States. For more insights into WELL Health's ongoing developments, stakeholders are encouraged to monitor official updates from the company and the ongoing situation regarding Circle Medical.
In its recent communication, WELL Health noted that the mandated filings, which include comprehensive financial documents and management discussions, will miss the deadline of March 31, 2025. The root of the issue is tied to an inquiry prompted by the Civil Division of the United States Attorney's Office for the Northern District of California, which is investigating the billing practices of Circle Medical. This inquiry began in September 2024 when the U.S. Attorney's Office requested the voluntary production of specific documents pertaining to these practices.
Circle Medical incurred a net loss of approximately $1.1 million during the previous fiscal year, which contributed to WELL's consolidated net income of $16.6 million. Despite this setback, Circle Medical accounted for a minor fraction of less than 2.7% of WELL's consolidated Adjusted EBITDA, highlighting its relatively limited financial impact on the larger organization.
The company is actively engaged in addressing the requests from the U.S. Attorney's Office and is working diligently to finalize Circle Medical's financial statements. Ultimately, this process will help to complete WELL Health's annual financial statements. However, it is anticipated that the information gathering and subsequent analyses may not be accomplished before the filing deadline.
Looking ahead, WELL Health expects to submit the required documents by April 15, 2025, contingent on completing the necessary assessments concerning Circle Medical's financial activities. Although this delay is concerning, the company reassured stakeholders that it does not foresee a substantial adverse effect on its overall cash position or resource availability because of this situation.
The firm is also exploring strategic alternatives for Circle Medical as part of its ongoing management strategy. They have requested a management cease trade order from the British Columbia Securities Commission. This order would prevent the company management from trading shares during the filing delay, yet it would not impede non-management stakeholders from trading their securities.
To keep investors and the public informed throughout this period, WELL Health plans to provide bi-weekly updates regarding the status of its filing obligations. The British Columbia Securities Commission retains the authority to impose a general cease trade order if the company fails to address its filing requirements punctually or does not submit the status reports.
As of now, WELL maintains compliance with its other filing obligations. The company continues to focus on its mission to enhance healthcare delivery through innovative technology, enabling healthcare practitioners to achieve better outcomes for their patients. WELL's established presence, which supports over 41,000 healthcare providers across North America, underlines its commitment to improving the efficiency of healthcare services.
Despite current challenges with Circle Medical, WELL Health Technologies Corp. remains dedicated to navigating the financial and operational landscape and is focused on strengthening its healthcare solutions in Canada and the United States. For more insights into WELL Health's ongoing developments, stakeholders are encouraged to monitor official updates from the company and the ongoing situation regarding Circle Medical.
Topics Health）
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