NEW YORK (TheStreet) -- Shares of Marrone Bio Innovations (MBII) 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.
The audit committee is also using independent legal advisers to help with the investigation.
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