Lime Energy Falls 50% on Internal Review Results
Shares of Lime Energy (NASDAQ: LIME) were seeing increased weakness during Tuesday's trading session after the company announced results of its internal review.
Lime Energy's Board of Directors determined that the company's consolidated financial statements on Form 10-K for the periods ended December 31, 2010 and December 31, 2011 and quarterly report on Form 10-Q for the period ended March 31, 2012 may no longer be relied upon.
Based on the results of that partial internal review, Lime Energy's management and the Audit Committee believe that some portion of the company's revenue was improperly recorded. In some cases, it appears that non-existent revenue may have been recorded. In other cases, it appears that revenue may have been recorded earlier than it should have been. The review did not turn up any indication of improper customer billing.
Lime Energy stated it cannot make a reliable estimate of the magnitude of the misreported revenue or the effects on the affected financial statements at this time; however, the company currently believes that the cumulative adjustment to revenue for the affected financial statements will not exceed $15 million.
Lime Energy does expect that the misreporting may potentially require restatement of all of the affected financial statements.
Tuesday, shares of Lime Energy were trading down over 44 percent, at about $1.12 per share.
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