NFC TIMES Exclusive Insight – USA Technologies, or USAT, which has been the largest enabler of card and contactless payments on vending machines in the U.S., saw half its market cap wiped yesterday, after its independent audit firm, RSM US, resigned, saying it could no longer rely on USAT’s representations in connection with the 2017 audit of the company.
Moreover, USAT’s board warned that investors could not rely quarterly or year-end financial reports for periods ending in June, September 2017 and December of 2017 and March 2018, or press releases for this period. U.S.-based USAT hasn’t released its annual report for the year ending last June or any quarterly report since May. It has gotten a reprieve from the Nasdaq Stock Market until March 12 to file the reports.
USAT had announced last month the results of an internal investigation by the board’s audit committee found that the company had prematurely reported some revenue and inappropriately recorded some expenses during the 2017 and 2018 fiscal years. At the same time, USAT announced a shakeup of the senior management team, including adding a COO and splitting the CEO and board chair position. CFO Priyanka Singh also stepped down last month.
