R1 RCM has received a noncompliance notice from Nasdaq's Listing Qualifications Department resulting from R1's delay in filing its quarterly report on Form 10-Q for the third quarter of 2023.
Nasdaq's notice comes after R1 filed a late filing notification Nov. 13, according to a Nov. 17 R1 news release. R1's notice was filed after it announced it would restate some of its previously issued financial statements.
R1 said Nov. 13 that immediately prior to the scheduled filing of its Form 10-Q for the third quarter of 2023, it identified "errors related to the accounting for certain acquiree compensation costs (e.g., transaction bonuses and accelerated equity award vesting) incurred as a result of historical acquisitions." Those expenses should have been recorded as "other expenses" within the consolidated statements of operations and comprehensive income, but instead were included in the purchase price allocations and ultimately recorded as goodwill in the consolidated balance sheets.
Nasdaq's notice has no immediate effect on the listing of R1's common stock, according to the release. R1 is required to submit a plan to regain compliance with Nasdaq's requirements of continued listing within 60 calendar days of the notice. Nasdaq can grant an extension of up to 180 days from the Form 10-Q's filing due date for the company to regain compliance with the requirements.
R1 said it intends to file the Form 10-Q "as soon as practicable."