MDRX Veradigm Inc (CE)

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 12b-25

NOTIFICATION OF LATE FILING

SEC FILE NUMBER 000-32085

CUSIP NUMBER 01988P108

If the notification relates to a portion of the filing checked above, identify the Item(s) to which the notification relates: Not Applicable

PART I — REGISTRANT INFORMATION

VERADIGM INC.

Full Name of Registrant

Not Applicable

Former Name if Applicable

222 Merchandise Mart

Address of Principal Executive Office (Street and Number)

Chicago, Illinois 60654

City, State and Zip Code

PART II — RULES 12b-25(b) AND (c)

If the subject report could not be filed without unreasonable effort or expense and the registrant seeks relief pursuant to Rule 12b-25(b), the following should be completed. (Check box if appropriate)

PART III — NARRATIVE

State below in reasonable detail why Forms 10-K, 20-F, 11-K, 10-Q, 10-D, N-CEN, N-CSR, or the transition report or portion thereof, could not be filed within the prescribed time period.

(Attach extra Sheets if Needed)

Veradigm Inc. (the “Company”) is filing this Notification of Late Filing on Form 12b-25 with respect to its Annual Report on Form 10-K for the fiscal year ended December 31, 2024 (the “2024 Form 10-K”). The Company has determined that it is unable to file the 2024 Form 10-K within the prescribed time period provided by the applicable rules of the U.S. Securities and Exchange Commission (the “SEC”) without unreasonable effort and expense.

On March 22, 2023, the Company’s Board of Directors (the “Board”), after discussion with management, reached a determination that the Company’s consolidated financial statements and related disclosures as of and for the year ended December 31, 2021 included in its Annual Report on Form 10-K for the fiscal year ended December 31, 2021, as of and for the interim periods ended March 31, 2021, June 30, 2021 and September 30, 2021 included in its Quarterly Reports on Form 10-Q for the fiscal quarters ended March 31, 2021, June 30, 2021 and September 30, 2021, respectively, and as of and for the interim periods ended March 31, 2022, June 30, 2022 and September 30, 2022 included in its Quarterly Reports on Form 10-Q for the fiscal quarters ended March 31, 2022, June 30, 2022 and September 30, 2022, respectively, should no longer be relied upon because of misstatements to the Company’s previously reported revenue resulting from certain internal control failures. The internal control failures identified at that time primarily stemmed from ineffective manual accounting processes and a software tool implemented by the Company in order to comply with the requirements of Accounting Standards Codification Topic 606, “Revenue from Contracts with Customers” issued by the Financial Accounting Standards Board. The Company therefore commenced a review into certain accounting and internal control matters (the “Restatement Review”). Separately, the Audit Committee of the Board began independently investigating (the “Audit Committee Investigation”) other matters relating to the Company’s financial reporting, internal control over financial reporting and disclosure controls. In addition, to re-evaluate certain accounting transactions and accounting practices identified as part of the Audit Committee Investigation as well as to conduct additional review, as appropriate, independent from the Restatement Review, the Company conducted an internal review (the “Company’s Internal Review”), engaging counsel as well as forensic and technical accountants. As of the date of this report, the Audit Committee Investigation and the Company’s Internal Review are complete, and the Restatement Review will be complete at the time the Company files the 2022 Form 10-K (as defined below), although remediation work will continue with respect to all identified material weaknesses.

Because of the internal control failures, including those described above, and the time taken to conduct the Restatement Review, the Audit Committee Investigation and the Company’s Internal Review, the Company has been unable to file its Annual Report on Form 10-K for the fiscal year ended December 31, 2022 (the “2022 Form 10-K”), its Quarterly Report on Form 10-Q for the fiscal quarter ended March 31, 2023 (the “Q1 2023 Form 10-Q”), its Quarterly Report on Form 10-Q for the fiscal quarter ended June 30, 2023 (the “Q2 2023 Form 10-Q”), its Quarterly Report on Form 10-Q for the fiscal quarter ended September 30, 2023 (the “Q3 2023 Form 10-Q” and, together with the Q1 2023 Form 10-Q and the Q2 2023 Form 10-Q, the “2023 Form 10-Qs”), its Annual Report on Form 10-K for the fiscal year ended December 31, 2023 (the “2023 Form 10-K”), its Quarterly Report on Form 10-Q for the fiscal quarter ended March 31, 2024 (the “Q1 2024 Form 10-Q”), its Quarterly Report on Form 10-Q for the fiscal quarter ended June 30, 2024 (the “Q2 2024 Form 10-Q”) or its Quarterly Report on Form 10-Q for the fiscal quarter ended September 30, 2024 (the “Q3 2024 Form 10-Q” and, together with the 2022 Form 10-K, the 2023 Form 10-Qs, the 2023 Form 10-K, the Q1 2024 Form 10-Q and the Q2 2024 Form 10-Q, the “Historical Late Filings”). Accordingly, the Company has also not yet filed the 2024 Form 10-K.

On February 27, 2024, the Company received a notice from The Nasdaq Stock Market LLC (“Nasdaq”) indicating that the Nasdaq Hearings Panel determined to delist the common stock of the Company from Nasdaq due to the Company remaining noncompliant with Nasdaq Listing Rule 5250(c)(1), which requires listed companies to timely file all required periodic financial reports with the SEC, and Nasdaq Listing Rule 5620(a), which requires companies listing common stock to hold an annual meeting of stockholders no later than one year after the end of the company’s fiscal year. On April 25, 2024, Nasdaq filed a Form 25 with the SEC to delist the common stock of the Company from Nasdaq.

The Company is working diligently to file the Historical Late Filings and the 2024 Form 10-K; however, no assurance can be given as to the definitive date on which such periodic reports will be filed or whether the Company will ultimately return to being listed on The Nasdaq Global Select Market in the future.

PART IV — OTHER INFORMATION

As of the date of this report, the Company anticipates that the adjustments to the Company’s revenue from continuing operations will be less than an aggregate $10 million reduction for 2020 and 2021 and less than an aggregate $15 million reduction for the nine months ended September 30, 2022. The Company has determined that the impact for 2021 and 2022 will require a restatement of the Company’s financial statements as of and for the year ended December 31, 2021; as of and for the interim periods ended March 31, 2021, June 30, 2021 and September 30, 2021; and as of and for the interim periods ended March 31, 2022, June 30, 2022 and September 30, 2022. As disclosed in the Company’s Current Report on Form 8-K filed on March 4, 2025, the Board, after discussion with management, reached a determination on February 27, 2025 that the Company’s consolidated financial statements and related disclosures as of and for the year ended December 31, 2020 included in its Annual Report on Form 10-K for the fiscal year ended December 31, 2020 (the “2020 Financial Statements”) should also no longer be relied upon because of misstatements to the Company’s consolidated balance sheet and income statement identified in connection with the procedures conducted by the Company in connection with the audit of the Company’s financial statements as of and for the year ended December 31, 2022. All of these restated amounts will accompany the 2022 Form 10-K filing, and the Company does not anticipate that the determination to restate the 2020 Financial Statements will affect the timing of the filing of the 2022 Form 10-K. The Company also expects that there will be an impact on the Company’s revenue from discontinued operations for the corresponding periods.

In addition, the anticipated adjustments to the Company’s previously issued financial statements prepared in accordance with U.S. generally accepted accounting principles that were identified as a result of the Audit Committee Investigation and the Company’s Internal Review did not affect cash.

The internal control failures described above relate to fiscal year 2022 and prior periods, and the anticipated adjustments identified in the Audit Committee Investigation and the Company’s Internal Review relate to fiscal year 2023 and prior periods.

The Company is not aware of any other significant change in results of operations from the fiscal year ended December 31, 2023 that will be reflected by the earnings statements to be included in the 2024 Form 10-K, except that there will be an impact to revenue from the Company’s customers’ inability to use network connections affected by the Change Healthcare cybersecurity incident. The approximate impact to the Company’s revenue in 2024 associated with the Change Healthcare cybersecurity incident is currently estimated to be less than $5 million.

DISCLOSURE REGARDING FORWARD-LOOKING INFORMATION

This Form 12b-25 contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, but are not limited to, statements regarding the anticipated timing of the filing of the 2022 Form 10-K, the Company’s beliefs and expectations relating to the anticipated financial and other impacts of the Company’s internal control failures and the items subject to the Restatement Review, the Audit Committee Investigation and the Company’s Internal Review, including the impacts of the material weaknesses identified and the Company’s remediation efforts and efforts to prepare financial statements. These forward-looking statements are based on the current beliefs and expectations of the Company’s management with respect to future events, only speak as of the date that they are made and are subject to significant risks and uncertainties. Such statements can be identified by the use of words such as “future,” “anticipates,” “believes,” “estimates,” “expects,” “intends,” “plans,” “predicts,” “will,” “would,” “could,” “continue,” “can,” “may,” “look forward,” “aims,” “hopes” and “seeks” and similar terms, although not all forward-looking statements contain such words or expressions. Actual results could differ significantly from those set forth in the forward-looking statements.

Important factors that may cause actual results to differ materially from those in the forward-looking statements include, but are not limited to, risks relating to the Company’s common stock not trading on a national securities exchange and deregistration from Section 12(b) of the Securities Exchange Act of 1934, as amended; a further material delay in the Company’s financial reporting or ability to hold an annual meeting of stockholders; an inability to timely prepare restated financial statements; unanticipated factors or factors that the Company currently believes will not cause delay; the impacts of the Restatement Review, the Audit Committee Investigation and the Company’s Internal Review, including on the Company’s remediation efforts and preparation of financial statements or other factors that could cause additional delay or adjustments; the possibility that any additional reviews may identify additional errors and material weaknesses or other deficiencies in the Company’s accounting practices; the likelihood that the control deficiencies identified or that may be identified in the future will result in additional material weaknesses in the Company’s internal control over financial reporting; risks relating to the Company’s voluntary disclosure to the SEC of information concerning the Audit Committee Investigation and the additional information the Company has continued to provide based on discussions with the SEC; risks relating to the putative securities class action lawsuit filed against the Company, the putative stockholder derivative action filed against the Company, commercial litigation relating to the Company’s representations regarding its financial statements and any other future litigation or investigation relating to the Company’s internal control failures, the Restatement Review, the Audit Committee Investigation or the Company’s Internal Review or related matters; changes in the financial condition of the markets that the Company serves; risks associated with ScienceIO’s product and service offerings; the challenges, risks and costs involved with integrating the operations of Science IO with the Company’s operations, including the diversion of management’s attention from the Company’s ongoing business operations; the Company’s ability to realize the anticipated benefits of the ScienceIO acquisition; and other factors contained in the “Risk Factors” section and elsewhere in the Company’s filings with the SEC from time to time. The Company does not undertake to update any forward-looking statements to reflect changed assumptions, the impact of circumstances or events that may arise after the date of the forward-looking statements, or other changes over time, except as required by law.

Veradigm Inc.

(Name of Registrant as Specified in Charter)

has caused this notification to be signed on its behalf by the undersigned hereunto duly authorized.