On December 27, 2007, AMS Health Sciences, Inc. (the “Company”) filed a voluntary petition for relief under Chapter 11 of the United States Bankruptcy Code (the “Bankruptcy Code”) in the United States Bankruptcy Court for the Western District of Oklahoma (the “Bankruptcy Court”) (Case No. 07-14678) (the “Bankruptcy Case”). The Company has continued to manage its properties and operate its businesses as “debtor-in-possession” under the jurisdiction of the Bankruptcy Court and in accordance with the applicable provisions of the Bankruptcy Code.
Concurrent with the bankruptcy, the Company has been undertaking an orderly downsizing of its operations. As a result, the Company has reduced its operations and significantly reduced its workforce, management and administrative staff.
The process of filing the petition for relief and related activities coupled with the lack of personnel available to prepare the report have caused a delay in the Company’s preparation of its Annual Report on Form 10-K and release of its final results of operations for the year ended December 31, 2007. The delay has been exacerbated due to the ongoing demands placed on the remaining accounting and finance personnel following the resignation of the Company’s Chief Financial Officer (including, but not limited to, the maintenance of the Company’s remaining and ongoing operations, negotiations with its creditors, selling inventory and other assets, continuing to collect and pay post-petition revenues and expenses, responding to requests for information from creditors, pursuing the Company’s litigation claims, managing the pending litigation claims against the Company, and preparing monthly operating reports for the Bankruptcy Court and U.S. Trustee’s Office). The Company will, when the pending re-organization plan is approved by the Bankruptcy Court, no longer be a public company and intends to file a Form 15 suspending its periodic reporting as a public company concurrently with the Bankruptcy Court’s confirmation.