Shares of USA Technologies (NASDAQ:USAT), a networking and cashless transaction company, plummeted on Thursday, falling as much as 53.6%. As of 3:50 p.m. EST, the stock was down 50.9%.
The stock's sharp decline follows a filing with the Securities and Exchange Commission revealing that the company's auditor, RSM, is resigning from its role as an independent registered public accounting firm for USA Technologies.
In conjunction with RSM's resignation, the company's board of directors stated that some financial statements and related press releases concerning the fiscal year ended June 30, 2017, are not reliable. The board's determination about these 2017 financial statements was made "upon the recommendation of the Audit Committee and following discussions with management."
This news comes after the company began an internal probe into its accounting and reporting procedures last year.
The company plans to restate its fiscal 2017 results and other 2017 financial statements "as soon as practicable." In addition, management said the company "is also working diligently to complete and file the Annual Report on Form 10-K for the fiscal year ended June 30, 2018 and the Quarterly Report on Form 10-Q for the fiscal quarter ended September 30, 2018 as soon as practicable."
To better understand the implications of this SEC filing, investors may want to read the entire 8-K on the company's investor relations page.