Veradigm (MDRX) - 2022 Q4 - Annual Report

Financial Restatement Impact - The restatement of previously issued financial statements decreased revenue from continuing operations for the year ended December 31, 2020 by $10.4 million and increased revenue for the year ended December 31, 2021 by $3.4 million[26] - Revenue from discontinued operations was also impacted by the restatement adjustments for the affected periods[26] Net Earnings Changes - The company's net earnings for the year ended December 31, 2020 decreased by $5.2 million or $0.03 per share, while for the year ended December 31, 2021, net earnings increased by $5.1 million or $0.04 per share[26] - Net earnings and diluted earnings per share for the year ended December 31, 2020 decreased by $5.2 million or $0.03 per share, while for the year ended December 31, 2021, it increased by $5.1 million or $0.04 per share[26] Internal Control Issues - The Audit Committee Investigation identified deficiencies in accounting policies related to revenue recognition and impairment accounting, leading to the resignation of the CEO and CFO[20] - The internal control failures primarily stemmed from ineffective manual accounting processes and issues with a software tool related to revenue recognition[17] - The Audit Committee Investigation revealed issues with internal controls and insufficient resources in the accounting function, impacting financial reporting accuracy[20] - The company is implementing a remediation plan to address identified material weaknesses in internal control over financial reporting[28] - The company conducted a Restatement Review that identified ineffective manual accounting processes and deficiencies in internal controls[17] - The company's disclosure controls and procedures were deemed ineffective as of December 31, 2022, necessitating ongoing improvements[28] Audit Committee Investigation - The Audit Committee retained independent counsel and forensic accountants to assist in the investigation of financial reporting and internal controls[18] - The company has voluntarily disclosed information regarding the Audit Committee Investigation to the SEC, which has initiated its own investigation[25] - The company conducted a comprehensive review of its accounting practices, resulting in adjustments to revenue recognition for various transactions[22] - The company’s internal review evaluated transactions for compliance with GAAP, leading to further adjustments in financial statements[21]