Orthofix participated in a NASDAQ Hearings Panel related to the company's delayed filing and reporting of quarterly financial reports.
The company delayed found inaccuracies in previous financial reports and delayed releasing second quarter financial reports for 2014 until they were able to adjust their calculations. Originally, the company hoped to have the financial statements revised and released by the end of September, but then found additional issues. The company advised not to rely on previous filings from 2011 through March 2014.
The change also impacts certain debt revenue, intercompany profit in inventory and continuing operations. Orthofix's outside auditors examined their updated amended filings drafts. But, there are still issues with certain inventory reserve amounts related to the spine fixation devices held as consignment inventory. The second quarter financial reports were delayed even further and third quarter financial results were also delayed. The initial waiver for their 2014 Second Quarter Form 10-Q went through Sept. 30, and the company sought a second waiver.
Orthofix requested the Hearings Panel grant the company through Jan. 15, 2015 to make filings, as well as the company's quarterly report on Form 10-Q for the third quarter of the fiscal year. The Hearings Panel granted Orthofix's request and the company's stock will continue to trade on the NASDAQ Stock Market as long as the company becomes current in its periodic filings with the SEC on or before Jan. 15, 2015.
The company received a second letter last week from NASDAQ noting the 2014 Third Quarter Form 10-Q wasn't filed on its due date, representing an additional basis for non-compliance with Listing Rule 5250(c)(1). Orthofix palns to continue working to complete the procedures needed to file its two delayed quarterly reports and the amended reports containing restatements for prior periods.