PACS PACS Group, Inc.

“As a result, we restated the Prior Financial Statements and included the restated financial statements in Part II, Item 8, of the Annual Report on Form 10-K for the year ended December 31, 2024.”

“We did not design controls to timely assess operational trends that could materially impact variable consideration estimates related to revenue recognition.”

“We did not design and maintain effective controls within the revenue process to address the completeness and accuracy of underlying data used to determine routine revenue.”

“In addition, we did not design and maintain adequate controls within the revenue process to appropriately recognize revenue for new services in accordance with ASC 606.”

“We did not design and maintain an effective control environment commensurate with the financial reporting requirements of a public company. Specifically, we did not design and maintain sufficient processes to identify, assess, and communicate relevant risks to appropriate levels of the organization, including potential compliance issues received through the hotline process.”

“Based on that evaluation, our Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures were not effective at the reasonable assurance level as of September 30, 2026, due to the material weaknesses described below.”