Documentation issue holds up Inogen’s earnings
GOLETA, Calif. – Inogen has delayed the filing of its annual report for a second time, saying an investigation into its accounting is still not complete, the company announced in an April 14 press release. In the release, Inogen also shed some light on the source of the investigation. “In February 2015, management identified a documentation issue where certain direct-to-consumer sales representatives appeared to have submitted modified documentation in violation of Inogen policies,” the company stated. Inogen announced March 12 that it would not meet the March 31 deadline for filing its Form 10-K with the Securities and Exchange Commission. The company then announced on April 1 that it had filed a Form 12b-25 with the SEC, giving it an extra 15 days to file the form. In connection with the investigation, Inogen says it has also evaluated its internal controls and determined that it has a “material weakness related to internal control over sales documentation.” “While this material weakness does not appear likely to result in a material misstatement of the company's historical financial statements, the company is in the process of implementing a remediation plan to supplement internal control over financial reporting to address this material weakness,” it stated. Despite the investigation, Inogen anticipates meeting or exceeding its 2014 guidance and is reaffirming its 2015 guidance for revenue, adjusted EBITDA and net income. “Inogen will announce its fourth quarter and fiscal year 2014 financial results as soon as practicable following the completion of the Audit Committee investigation,” the company stated.