NEW YORK (TheStreet) -- Shares of Marrone Bio Innovations (MBII - Get Report) plummeted more than 40% to a 52-week low of $3.21 on Wednesday after the company announced its audit committee had begun an internal investigation after questions about the company's revenue recognition.
The investigation started after management became aware of documents that questioned the recognition of revenue in the fourth quarter of 2013 for an $870,000 transaction.
The audit committee has determined Marrone's financial statements for the fiscal year ended Dec. 31, 2013, the unaudited interim financial statements for the three-month period ended March 31, 2014 and the three-month and six-month periods ended June 30, 2014 are all unreliable with regard to compliance with commonly accepted accounting principles.
Must Read: 50 Stocks Hedge Funds LoveSTOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more. The audit committee is also using independent legal advisers to help with the investigation. MBII data by YCharts EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he and Stephanie Link think could be potentially HUGE winners. Click here to see the holdings for FREE.
Check Out Our Best Services for Investors
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts