Shares of Inphonic (INPC) are off 75% and trading as low as $.44 against a 52-week high of $14.49.
The wireless products company announced its board has selected Lazard Middle Market to conduct, in conjunction with management, a full review of the company’s financing and strategic alternatives to increase cash liquidity and to maximize shareholder value. These alternatives could include a re-financing of existing credit arrangements, merger, sale, strategic alliance or other transaction.
The company recently replaced its CEO. The INPC audit committee also disclosed that it had found misapplication of GAAP; improperly recognized revenue and improperly deferred expenses; inadequate controls; and insufficient processes, procedures and expertise in its review of the firm’s financial operations.
Douglas A. McIntyre