Harvest Shares Collapse on Filing Delay, Likely “Going Concern” Opinion

In its filing Harvest provided a laundry list of problems related to its financial reporting:

• “[C]ertain errors related to our incorrect capitalization of certain lease maintenance costs”
• “[C]ertain internal selling, general and administrative costs”
• “[A]n error in the presentation of certain cash flow items”
• A determination “that certain long-lived assets have been impaired”
• “[C]ertain errors … that will require the company to revise and possibly restate its financial statements for certain periods in 2010, 2011, and 2012.

Harvest also said it expects to post a net loss of $9.6 million ($0.26 per share) for the 2012 fiscal year. Worst of all, the company’s auditors have said that the audit report “will include a going concern qualification.”

Shares are 34% at $3.61 in a previous range of $4.93 to $10.83.