Merge Healthcare of Milwaukee announced that it has not completed its financial statements for the 2005 fiscal year (end-December 31), has not filed the required Form 10-K with U.S. Securities and Exchange Commission, and does not believe it will be able to do so within 90 days after the end of its fiscal year.
The firm said the delay relates to revenue recognition and tax accounting matters relating to its merger with Cedara Software of Mississauga, Ontario, in June 2005 and the investigation of anonymous complaints.
In addition, the firm stated that it has not completed its assessment of internal control over financial reporting and that it anticipates that it will report material weaknesses in its internal control over financial reporting.
Also, Merge reported that it has suspended the exchange of its common stock for exchangeable shares of Merge/Cedara and that no shares may be issued for exchangeable shares until further notice.
The developer warned that a review by its audit committee concluded that previously issued financial statements for its fiscal 2005 second quarter (end-June 30) and third quarter (end-September 30) should no longer be relied upon.
Merge said that it has determined that approximately $3.8 million of additional tax liability needs to be recorded as of June 30 last year, and that it will need to make a downward adjustment of net sales of approximately $500,000 in the second quarter and an additional $500,000 in the third quarter of fiscal 2005.
The company stated that it has not yet completed its review, and there may be additional adjustments.
By AuntMinnie.com staff writers
March 17, 2006
Related Reading
Cedara to introduce OrthoWorks ProPlanner at AAOS, March 16, 2006
Cedara to showcase new applications at ECR, February 28, 2006
Merge delays Q4 earnings release, February 24, 2006
Cedara to showcase clinical connectivity at HIMSS, February 9, 2006
Cedara buys Axicare assets, February 1, 2006
Copyright © 2006 AuntMinnie.com
