Rennova Health, Inc. (NASDAQ:RNVA) Files An 8-K Other Events
Item 8.01
Quarterly Report on Form 10-Q
Rennova Health, Inc. (the “Company”) is providing the following update on the filing of our Quarterly Report on Form 10-Q for the quarter ended March 31, 2020 (the “Report”). The Company has determined to rely on the Securities and Exchange Commission’s Order under Section 36 of the Securities Exchange Act of 1934 Modifying Exemptions from the Reporting and Proxy Delivery Requirements for Public Companies dated March 25, 2020 (Release No. 34-88465) to delay the filing of the Report due to circumstances related to the coronavirus (“COVID-19”). The COVID-19 pandemic and the steps taken by governments to seek to reduce the spread of the virus continue to have a severe impact on the economy and the health care industry in particular. Our hospitals and the rest of our business continue to experience disruptions due to the pandemic for the reasons described in our Current Report on Form 8-K filed with the Securities and Exchange Commission on March 30, 2020. These disruptions are causing the Report, which is due on May 15, 2020, to be delayed. Consequently, the Company is unable to file the Report timely. The Company anticipates that it will file the Report no later than June 29, 2020, which is 45 days after the original due date of the Report.
In light of the current COVID-19 pandemic, the Company will be including the following Risk Factor in its Annual Report on Form 10-K for the year ended December 31, 2019, as it may be updated to reflect subsequent events affecting the Company:
The current and potential effects of the coronavirus pandemic may materially adversely impact our business, results of operations and financial condition.
The coronavirus pandemic and the steps taken by governments to seek to reduce its spread have severely impacted the economy and the health care industry in particular. Hospitals have especially been affected. Small rural hospitals, such as ours, may be overwhelmed by patients if conditions worsen in their local areas. Staffing costs, and concerns due to the potential exposure to infections, may increase, as may the costs of needed medical supplies necessary to keep the hospitals open. Doctors and patients may defer elective procedures and other health care services. Travel bans, social distancing and quarantines may limit access to our facilities. Business closings and layoffs in our local areas may result in the loss of insurance and adversely affect demand for our services, as well as the ability of patients and other payers to pay for services as rendered.
CARES Act
The Company is providing the following update on receipt of Provider Relief Funds from the United States Department of Health and Human Services (“HHS”) provided to eligible healthcare providers out of the $100 billion Public Health and Social Services Emergency Fund provided for in the Coronavirus Aid, Relief, and Economic Security Act. The funds are allocated to eligible healthcare providers for expenses and lost revenue attributable to the COVID-19 pandemic. The funds are being released in tranches, and HHS partnered with UnitedHealth Group to distribute the initial $30 billion in funds by direct deposit to providers. To date, Company-owned facilities have received approximately $7,400,000 in relief funds. It is not known if or when Company-owned facilities will receive any additional funding, although rural providers are named as a segment of specific providers that will receive additional relief from funds which have not been distributed to date. The fund payments are grants, not loans, and HHS will not require repayment, but providers are restricted and the funds must be used only for grant approved purposes.
Forward-Looking Statements
This report includes “forward-looking statements” within the meaning of the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995. Actual results may differ from expectations and, consequently, you should not rely on these forward-looking statements as predictions of future events. Words such as “expect,” “estimate,” “project,” “budget,” “forecast,” “anticipate,” “intend,” “plan,” “may,” “will,” “could,” “should,” “believes,” “predicts,” “potential,” “continue,” and similar expressions are intended to identify such forward-looking statements. These forward-looking statements involve significant risks and uncertainties that could cause the actual results to differ materially from the expected results. Additional information concerning these and other risk factors are contained in the Company’s most recent filings with the Securities and Exchange Commission. The Company cautions readers not to place undue reliance upon any forward-looking statements, which speak only as of the date made. The Company does not undertake or accept any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements to reflect any change in their expectations or any change in events, conditions or circumstances on which any such statement is based, except as required by law.
About Rennova Health, Inc. (NASDAQ:RNVA)
Rennova Health, Inc. (Rennova), formerly CollabRx, Inc., is a provider of diagnostics and supportive software solutions to healthcare providers. The Company operates in three segments: clinical laboratory operations, supportive software solutions, and decision support and informatics operations. The Company is a healthcare enterprise that delivers products and services, including laboratory diagnostics, healthcare technology solutions, and revenue cycle management and intends to provide financial services, to medical providers. Rennova’s principal line of business is clinical laboratory blood and urine testing services. It is also engaged in the provision of urine drug toxicology testing to physicians, clinics and rehabilitation facilities in the United States. Its clinical laboratories include Biohealth Medical Laboratory, Inc.; Alethea Laboratories, Inc.; International Technologies, LLC; EPIC Reference Labs, Inc., and Epinex Diagnostics Laboratories, Inc.
