Calgary, Alberta--(Newsfile Corp. - April 29, 2024) - Comprehensive Healthcare Systems Inc. (TSXV: CHS) (the "Company" or "CHS"), an industry leader in healthcare benefits administration software and services, announces that it will be delayed in the filing of its annual audited financial statements, associated MD&A and officer certifications (the "Annual Filings") for the fiscal year ended December 31, 2023, which are due on April 29, 2024.
As previously disclosed in its interim financial statements for the three- and nine-month periods ending September 30, 2023 and related management discussion & analysis, the Company experienced financial difficulties with heavy losses, changes in financial personnel (including the resignation of the CFO and the Controller) and other operational challenges. As a result, the Company made significant restructuring efforts to reduce increasing costs and improve operations. Although the Company has made significant progress, these difficulties led to the delay in the Annual Filings (and the directly resulting delay in the Interim Filings) and in the audit preparation process.
The Company has been diligently working to fix these issues. It has engaged an external consultant to act as the Controller for the Company and hired an interim CFO. The Company has streamlined its internal accounting and bookkeeping processes to simplify the preparation of financial statements. It is also seeking help from an outside financial advisory firm with the preparation of accounts for the audit.
The Company is also implementing additional audit procedures to further improve financial reporting, requiring more time for audit reviews and verifications. As a result, the Company and its auditors require additional time to complete the audit process.
In addition, the Company needs to raise additional funds to pay for overdue audit fees from its prior fiscal year and the audit fees for the current fiscal year's audit.
The Company expects the audit process to be completed and the Annual Filings to be filed on or before June 29, 2024.
The Company intends to satisfy the provisions of the alternative information guidelines set forth in sections 9 and 10 of National Policy 12-203 - Management Cease Trade Orders so long as it remains in default of the Annual Filings, and so long as it anticipates or is in default of the Interim Filings. The Company further advises that it is not subject to any insolvency proceedings, and that there is no other material information concerning the affairs of the Company at this time that has not been generally disclosed.
About Comprehensive Healthcare Systems Inc.
Comprehensive Healthcare Systems Inc. is a corporation incorporated under the laws of the Province of Alberta and is the parent company of Comprehensive Healthcare Systems Inc. (Delaware). The Company is a vertically integrated software as a services (SaaS) company focused on digitizing healthcare with Healthcare Benefits Administration solutions, providing reliable and high-volume transaction capable systems. The Company's state-of-the-art Novus 360 Healthcare Welfare and Benefits Administration (HWBA) SaaS platform is used by clients for all aspects of healthcare benefits administration (including self-funded employers, providers, and labor unions), providing healthcare administrative software and technology-enabled services.
FORWARD-LOOKING INFORMATION:
The press release contains "forward-looking statements" within the meaning of applicable securities laws. Forward-looking statements can be identified by words such as: "anticipate," "intend," "plan," "budget," "believe," "project," "estimate," "expect," "scheduled," "forecast," "strategy," "future," "likely," "may," "to be," "could," "would," "should," "will" and similar references to future periods or the negative or comparable terminology, as well as terms usually used in the future and conditional. These forward-looking statements are based on assumptions as of the date they are provided. However, there can be no assurance that such assumptions will reflect the actual outcome of such items or factors.
Additionally, there are known and unknown risk factors that could cause the Company's actual results and financial conditions to differ materially from those indicated in the forward-looking statements. Therefore, you should not rely on any of these forward-looking statements. Important risk factors that could cause actual results and financial conditions to differ materially from those indicated in the forward-looking statements, include among others: general economic, market and business conditions in Canada and globally; market volatility; unforeseen delays in timelines for any of the transactions or events described in this press release; and the risk of regulatory changes that may impact the business of the Company. All forward-looking information is qualified in its entirety by this cautionary statement, and the Company disclaims any obligation to revise or update any such forward-looking statement or to publicly announce the result of any revisions to any of the forward-looking information contained herein to reflect future results, events, or developments, except as required by law.
Neither the TSX Venture Exchange nor its Regulation Service Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
SOURCE Comprehensive Healthcare Systems Inc.
For further information:
COMPREHENSIVE HEALTHCARE SYSTEMS INC.
Chris Cosgrove, Chief Executive Officer
E-mail: chris.cosgrove@comphealthcare.com
Phone: 1-732-362-2010
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/207279
SOURCE: Comprehensive Healthcare Systems Inc.
