NATURE OF BUSINESS

Corporate Organization and Business

BioScrip, Inc. and subsidiaries (the “Company” or “BioScrip”) is a national provider of infusion service that partners with physicians, hospital systems, skilled nursing facilities and healthcare payors to provide patients access to post-acute care services. The Company operates with a commitment to bring customer-focused infusion therapy services into the home or alternate-site setting. By collaborating with the full spectrum of healthcare professionals and the patient, the Company aims to provide cost-effective care that is driven by clinical excellence, customer service and values that promote positive outcomes and an enhanced quality of life for those whom it serves.

The Company’s platform provides nationwide service capabilities and the ability to deliver clinical management services that offer patients a high-touch, community-based and home-based care environment. The Company’s core services are provided in coordination with, and under the direction of, the patient’s physician. The Company's multidisciplinary team of clinicians, including pharmacists, nurses, dietitians and respiratory therapists, work with the physician to develop a plan of care suited to the patient’s specific needs. Whether in the home, physician office, ambulatory infusion center, skilled nursing facility or other alternate sites of care, the Company provides products, services and condition-specific clinical management programs tailored to improve the care of individuals with complex health conditions such as gastrointestinal abnormalities, infectious diseases, cancer, multiple sclerosis, organ and blood cell transplants, bleeding disorders, immune deficiencies and heart failure.

On August 27, 2015, the Company completed the sale of substantially all of the Company’s Pharmacy Benefit Management Services segment (the “PBM Business”) to ProCare Pharmacy Benefit Manager Inc. (see Note 6 - Discontinued Operations). As a result of the sale of the PBM Business, the Company no longer has multiple operating segments. The change reflects how the Company's chief operating decision maker reviews the Company’s results in terms of allocating resources and assessing performance.

Basis of Presentation

The Company’s Consolidated Financial Statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”).

Reclassifications

Certain prior period financial statement amounts have been reclassified to conform to current period presentation.

Immaterial Error Correction

During the fourth quarter of 2017, the Company determined that certain prior period balances contained errors, predominantly due to a failure to appropriately account for and resolve transactions specific to suspense and clearing accounts. Management evaluated the materiality of the errors quantitatively and qualitatively, and concluded that they were not material to the financial statements of any period presented, but has elected to correct them in the accompanying prior period consolidated financial statements.

The following tables set forth the effect these corrections had on the Company’s December 31, 2016 and 2015 statements of operations:



	Year Ended December 31, 2016									Year Ended December 31, 2015
	Previously Reported			Corrections			As Revised			Previously Reported			Corrections			As Revised
Net revenue	$	935,589		$	—		$	935,589		$	982,223		$	—		$	982,223
Gross profit	265,631			(3,549		)	262,082			260,915			(963		)	259,952
Total Operating Expenses	263,702			(1,081		)	262,621			548,562			803			549,365
Interest expense	38,235			(663		)	37,572			37,313			(375		)	36,938
Loss from continuing operations, net of income taxes	(34,367		)	(1,805		)	(36,172		)	(303,428		)	(1,391		)	(304,819		)
Loss from discontinued operations, net of income taxes	(7,139		)	546			(6,593		)	3,721			970			4,691
Net loss	$	(41,506	)	$	(1,259	)	$	(42,765	)	$	(299,707	)	$	(421	)	$	(300,128	)

The following tables set forth the effect these corrections had on the Company’s December 31, 2016 balance sheet.



	Year Ended December 31, 2016
	Previously Reported			Corrections			As Revised
Total assets	$	607,740		$	(2,755	)	$	604,985
Total liabilities	567,301			(697		)	566,604
Additional paid-in capital	611,844			(162		)	611,682
Accumulated deficit	(643,419		)	(1,896		)	(645,315		)
Total stockholders' equity	(31,563		)	(2,058		)	(33,621		)
Total liabilities and stockholders' equity	$	607,740		$	(2,755	)	$	604,985

The accumulated deficit correction above includes a $0.4 million adjustment as of January 1, 2015 related to prior periods.

Certain amounts disclosed in the accompanying notes to the financial statements have been revised to reflect the corrections.