Additionally, the Board reviewed the interim results of the ongoing internal audit led by
The Company has substantial reason to believe that certain clients and referrers have misrepresented qualifications necessary to enter into the staffing arrangement with NuAxess, with the intent to exploit certain privileges that come with joining the NuAxess staffing company. Specific and truthful representations are required to be made by prospective clients before entering into a staffing arrangement with NuAxess. This allows NuAxess to set proper reserves, give accurate quotes of services, and determine which companies can be accepted as clients. The internal audit demonstrated that certain clients failed to respond accurately and truthfully to Special Risk Questionnaires (“SRQ”) and failed to pay fees on time or at all. The Company also found that certain clients and referrers misrepresented medical history of some clients to wrongfully obtain NuAxess services. Had proper disclosures been made, NuAxess would have declined to allow such clients to join the staffing company. Due to such misrepresentations, NuAxess has taken action to limit its financial damages and terminate the underlying staffing agreements.
The Company has engaged counsel to pursue legal remedies against those clients and/or referrers who have misrepresented material facts to NuAxess and thereby caused damages to NuAxess business and its other clients. NuAxess has also instructed its counsel to begin collecting previously uncollected staffing and late fees for 2020-2022 and to pursue all other associated costs NuAxess has incurred.
NuAxess will endeavor to pay all valid, documented costs presented by clients who have truthfully responded to SRQs, applied with all valid information and otherwise acted in good faith. In order to protect the Company and its shareholders NuAxess will not commit funds to cover any liabilities where misrepresentations were made to obtain the services of NuAxess.
The Company is resuming its self-funded plan for 2023 through a new third-party administrator to provide continued services for its clients and employees. With the completion of our onboarding technology, better authentication and compliance, the Company is focused on growing its staffing business at a more sustainable growth rate. In addition, the Company has identified and intends on making several strategic acquisitions over the coming months to realize additional revenue. This includes acquisitions of complementary services specifically targeted at providing security and verification methods in order to better insulate the Company going forward.
About
We strive to provide those employers and individuals the right tools to be able to manage and control all the facets in their healthcare experience and their eventual health outcomes. Prevention, wellness, and cures have become part of our corporate mission to individuals who want to manage and control their short and long-term healthcare needs.
Our self-insured programs are consumer-driven and technology-leveraged and, by itself, self-insurance is affordable, transparent and responsive to the healthcare and retirement needs of employees who are looking for higher quality benefits, integrated health information and better medical provider access and outcomes. For additional information, please visit: NuAxess.com.
Investor relations number 877-367-9199
Forward-Looking Statements:
The statements contained herein that are not historical facts are forward-looking statements within the meaning of the federal securities laws (Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934). You can identify such forward-looking statements by the words "expects," "intends," "plans," "projects," "believes," "estimates," "likely," "possibly," "probably," "goal," "opportunity," "objective," "target," "assume," "outlook," "guidance," "predicts," "appears," "indicator" and similar expressions. Forward-looking statements involve a number of risks and uncertainties. In the normal course of business,
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