USA Technologies to bolster corporate governance after probe uncovers accounting issues

Payment technology provider USA Technologies Inc. laid out a series of measures it plans to take to strengthen its corporate governance, after an audit committee investigation uncovered accounting issues. The committee found that certain transactions conducted in fiscal 2017 and fiscal 2018 had prematurely recognized revenue. The committee does not expect the sums affected to exceed $5.5 million and said some revenue are expected to be recognized in future quarters. The investigation further found that certain items had been recorded as expenses, such as the payment of marketing or servicing fees, but should be treated as contra-revenue items in earlier fiscal quarters. "As set forth in the Form 8-K, neither the Company nor its independent auditor has completed its analysis of the specific adjustments to previously reported revenues identified by the investigation, and such analysis could result in further adjustments that could be materially different from those set forth above," the company said in a statement. USA Technologies is now planing to overhaul its senior management team by adding a chief operating officer, by creating a compliance committee and splitting the roles of CEO and chairperson. Shares fell 9.3% premarket and are down 43.1% in the last 12 months, while the S&P 500 has fallen 6.8%.

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