BASIS OF PRESENTATION

These Unaudited Consolidated Financial Statements should be read in conjunction with the Audited Consolidated Financial Statements, including the notes thereto, and other information included in the Annual Report on Form 10-K of BioScrip, Inc. and its wholly-owned subsidiaries (the “Company”) for the year ended December 31, 2017 (the “Annual Report”) filed with the U.S. Securities and Exchange Commission (“SEC”). These Unaudited Consolidated Financial Statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information, and the instructions to Form 10-Q and Article 10 of Regulation S-X promulgated under the Securities Exchange Act of 1934, as amended (the “Exchange Act”). Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements.

The information furnished in these Unaudited Consolidated Financial Statements reflects all adjustments, including normal recurring adjustments, which are, in the opinion of management, necessary for a fair presentation of the results for the interim periods presented. Operating results for the three months and six months ended June 30, 2018 require management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes and are not necessarily indicative of the results that may be expected for the full year ending December 31, 2018.

The Unaudited Consolidated Financial Statements include the accounts of the Company and its wholly-owned subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation.

Reclassifications

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 unaudited consolidated statement of operations for the three months and six months ended June 30, 2018:



	Three Months Ended June 30, 2017									Six Months Ended June 30, 2017
	Previously Reported			Corrections			Revised			Previously Reported			Corrections			Revised
Net revenue	$	218,106		$	—		$	218,106		$	435,916		$	—		$	435,916
Gross profit	68,310			(699		)	67,611			133,894			(1,408		)	132,486
Total Operating Expenses	83,572			(158		)	83,414			154,784			(354		)	154,430
Interest expense	12,715			(85		)	12,630			25,459			(169		)	25,290
Loss from continuing operations, net of income taxes	(28,695		)	(456		)	(29,151		)	(47,686		)	(885		)	(48,571		)
Loss from discontinued operations, net of income taxes	(503		)	130			(373		)	(940		)	268			(672		)
Net loss	$	(29,198	)	$	(326	)	$	(29,524	)	$	(48,626	)	$	(617	)	$	(49,243	)

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