MedAvant Healthcare Solutions has been issued a going concern qualification from UHY, the company's independent registered public accounting firm, as part of UHY's audit opinion on the company's 2007 consolidated financial statements and was based on its declining revenues, recurring losses from operations and limitations on its access to capital.
The announcement is being made in compliance with Nasdaq Marketplace Rule 4350(b)(1)(B), which requires separate disclosure of receipt of an audit opinion that contains a going concern qualification.
MedAvant, a company that facilitates healthcare information exchange, said it is monitoring its liquidity, capital resources and financial position on an ongoing basis, and has undertaken a variety of initiatives in an effort to improve its liquidity position.
During the second quarter of 2007, the company said it reduced its headcount and during the second half of 2007, experienced attrition in its workforce as not all vacated positions have been re-filled. MedAvant said the result was reduced labor and payroll expenses; however, it believes the reduction in workforce size has not had a material adverse effect on our service levels.
Simultaneous with its expense management efforts, the company has been continually evaluating and pursuing strategic transactions, such as the sale of its pharmacy transaction business that occurred on April 30, 2007. More recently, on Feb. 1, MedAvant closed on a previously announced NPPN transaction.