Thinly traded nano cap InfuSystem Holdings (NYSEMKT:INFU) cratered 38% today on more than a 16x surge in volume, albeit on turnover of only ~552K shares, in response to its disclosure that its recent financial statements (2015 10-K, 10-Qs for Q1 and Q2 2016) should no longer be relied upon due to an error.
In an 8-K filed today, the company said the error pertained to an overstatement of estimated accounts receivable which led to an overstatement of revenues and pre-tax income by a corresponding amount. The company says the total amount in question for the six-quarter time frame is ~$3.3M.
Management adds that its Audit Committee and independent auditor are working to determine the full impact of the adjustments as well as reviewing its internal control over financial reporting. It will file its financial statements as soon as possible but it will seek to extend the filing deadline for its Q3 report.