Startup Electrical Final Mile Options Inc.’s troubles are persevering with after its unbiased registered public accounting agency resigned amid an argument that despatched the corporate’s inventory worth plummeting this month.

Chicago-based BDO LLP resigned from the audit of the Troy-based electrical car maker’s funds, which drew public scrutiny this month when a probe discovered senior executives improperly bought discounted fairness within the firm proper earlier than it went public.

“BDO has concluded that the corporate has not taken well timed and acceptable remedial motion with respect to the potential unlawful act(s),” the accounting agency stated in a letter final week to ELMS.

BDO’s withdrawl as lead auditor was disclosed in an 8-Okay type filed with the Securities and Trade Fee, dated Feb. 8 and posted on the ELMS web site earlier this week.

Electrical Final Mile denied the declare that it did not take well timed and acceptable remedial motion, and it additionally questioned BDO’s independence all through the audit, as required by regulators.

“The Particular Committee recognized that BDO’s Tax Advisory Group had helped to create and construction the transactions that finally resulted within the resignations of ELMI’s co-founder, Jason Luo … and Jim Taylor, our former Chief Govt Officer,” ELMS stated within the submitting, referring to the committee it set as much as examine the fairness purchases in query.

On account of the investigation, the corporate stated it was restating consolidated monetary statements protecting the interval from its August 2020 inception by means of Dec. 31, 2020, the six months ended June 30, and the 9 months ended Sept. 30. For the third quarter of 2021, the corporate reported income of $136,000 and a internet lack of $17.8 million.

The corporate, which produces electrical light-duty automobiles for supply, contractors and different industrial fleets,  has not reported restated monetary figures.

The corporate’s shares proceed to wrestle. They peaked at $11.56 per share proper after it went public on June 28. Since then, the inventory has slid 83 p.c, closing at $2.00 on Friday in Nasdaq buying and selling, giving it a market cap of $248 million.

Electrical Final Mile spokespeople didn’t return requests for remark and an replace on manufacturing and operations.

BDO didn’t instantly reply to a request for remark.

Following the resignations of Luo and Taylor, the corporate appointed Shauna McIntyre as interim president and CEO. In a video posted to the corporate’s web site earlier this month, McIntyre stated ELMS has a “vibrant future.”

“I perceive that management transitions include some uncertainty, and I need to guarantee you in no unsure phrases of our continued focus and dedication to the corporate’s ongoing enterprise,” she stated.