InPhonic, Inc. (NDAQ:INPC) shares fell over 75% today after the company announced that its third quarter results would be "significantly below previously announced guidance". The wireless products company also unveiled that it was facing a liquidity crisis and required immediate funding in order to continue operations and achieve profitability. No specifics were given on any front, but many shareholders are assuming the worst.

InPhonics announced that its board has selected Lazard Middle Market to conduct, in conjunction with management, a full review of the copany's financing and strategic alternatives to increase cash liquidity and maximize shareholder value. These alernatives could reportedly include a re-financing of existing credit lines, merger, sale, strategic alliance or other transactions.

InPhonics has faced problems ever since it dismissed its old CEO after a INPC audit committee found misapplication of GAAP, improperly recognized revenue and improperly deferred expenses, inadequate controls, and insufficient processes, procedures and experties in its review of the firm's financial operations.

Some investors are now hoping that the company will be able to sell itself after a durastic 75% reduction in its market cap. InPhonics current has a market capitalization of just $18 million, which could make it a target of a larger company that could reduce costs and improve revenues through economies of scale. Combined, these factors make INPC a stock worth watching!

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