The staff of the Nasdaq Stock Market has notified Life Partners Holdings Inc. that the company has 60 days to explain how it will regain compliance with Nasdaq listing rules, and the U.S. Securities and Exchange Commission has sent the company an amended Wells notice.
Life Partners, Waco, Texas (Nasdaq:LPHI), helps clients invest in life settlements.
The company notified the U.S. Securities and Exchange Commission (SEC) May 16 that it would need at least two extra weeks to file the Form 10-K annual report for the fiscal year ending Feb. 28, 2011, because managers had not yet completed the determination of the timing and amount of some non-cash impairment charges relating to life settlements held for investment.
The company then notified the SEC May 31 that it would need additional time to file the 2011 Form 10-K.
The impair determinations are taking longer than originally expected, and Life Partners also has encountered unanticipated delays resulting from a reexamination of revenue-recognition policies, the company says.
"We believe our revenue recognition policies are appropriate and do not anticipate retroactive changes at this time," the company says in an SEC filing. "We will file our 2011 annual report as soon as we complete our impairment determinations and the external audit is finished. At this time, no definitive date has been discussed for the annual filing."
The Nasdaq staff says that, because of the filing delay, Life Partners does not follow Nasdaq filing timeliness requirements.
Life Partners has until Aug. 1, 2011, to describe a plan for regaining compliance, the company says.
If the company submits a plan, Nasdaq can give a company 180 additional days to regain compliance, Life Partners says.
