Revolution Lighting Technologies, Inc. (RVLT) Accused of Improperly Recognizing Revenue

According to the complaint against the company for alleged violations of the Securities and Exchange Act of 1934 between March 14, 2014 and November 14, 2018, Revolution Lighting Technologies, Inc. (RVLT) consistently asserted in SEC filings that its disclosures were accurate, but nevertheless failed to disclose to the investing public that it was improperly recognizing revenue for certain transactions and that it lacked adequate internal controls over financial reporting. The truth began to emerge on September 22, 17, 2017, when Revolution began to report dismal financial results, citing a "slippage of a number of our Energy Source division projects." The company continued to reveal financial troubles in subsequent SEC filings. Then, on October 19, 2018, Revolution disclosed that the SEC was investigating the company's "revenue recognition practices, including bill and hold transactions that occurred between 2014 through the second quarter of 2018." Revolution filed a Notice of Late Filing on Form 12b-25 with the SEC on November 13, 2018, indicating that it was unable to file its quarterly report for the period ended September 30, 2018, because the company's Audit Committee was reviewing the accuracy of the company's previously filed financial statements. Because it did not timely file its quarterly and annual reports, Revolution is at risk of being delisted by the Nasdaq Stock Market. Revolution has until May 8, 2019, to regain compliance with the reporting rule. News of Revolution's troubles has decimated the stock, which closed at just $0.23 per share on March 27, 2019.