­­­Shares of electrical automobile startup Fisker sank in morning buying and selling Tuesday after a disappointing earnings report and a regulatory submitting that raised issues concerning the firm’s earlier monetary statements.

The corporate’s shares had been down greater than 20% from their earlier shut of $4.11 apiece.

Fisker reported its third-quarter outcomes on Monday afternoon, they usually weren’t what Wall Road had hoped to see. Income of $71.8 million and a internet lack of $91 million, or 27 cents per share, that fell in need of the Road’s expectations.

However there was extra. In a Monday night time regulatory submitting after its earnings report, Fisker mentioned that following the abrupt departure of its chief accounting officer in October, it “decided that it has materials weaknesses within the Firm’s inside management over monetary reporting.”  

These weaknesses will delay its quarterly 10-Q submitting, it mentioned.

Fisker had initially deliberate to report its third-quarter outcomes earlier than the U.S. markets opened on Nov. 8. However it abruptly postponed its report early that morning, saying that the departure of its chief accounting officer on Oct. 27 and the appointment of a brand new one on Nov. 6 had “delayed the completion of the monetary statements and associated disclosures.”  

The corporate hasn’t but defined why its former chief accounting officer left or why its earnings report was delayed, although CFO Geeta Gupta-Fisker mentioned throughout Monday’s earnings name that the third quarter was “extremely complicated” due to the corporate’s world ramp-up.

Monday’s submitting raises the likelihood that the corporate could possibly be compelled to restate a few of its previous monetary reviews.

Fisker famous the “materials weaknesses” will likely be mentioned intimately in its upcoming 10-Q report, and Gupta-Fisker mentioned the corporate is actively hiring extra monetary specialists. It did not say when traders can count on the 10-Q to be filed.

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