The company disclosed this “significant issue” in its financial report in its 10-Q statement for the third quarter of 2021 submitted last Friday. This is the deadline for Faraday future to submit documents to the securities and Exchange Commission (SEC), otherwise the company may be delisted from NASDAQ.

The Los Angeles based company said in the document that its senior managers “failed to strengthen the compliance of certain corporate governance, accounting and financial policies and procedures, as well as the need for internal control awareness”. These mistakes lead to “inaccurate and incomplete disclosure of certain relationships, arrangements and transactions”.

Faraday’s future did not explain what transactions it meant, nor did it respond to follow-up questions. A person familiar with the matter told the media that this has something to do with the way founder Jia Yueting has transferred funds into and out of the company for many years. Jia Yueting did not immediately reply to an email seeking comment.

After completing an investigation into fraud allegations, the start-up restricted the power of its founder Jia Yueting in April; At that time, another future vice president of Faraday announced his resignation, and the company also fired some other non-executive employees. Its chairman resigned in February this year and assumed a lower power role in the board of directors.

Jia Yueting established a technology empire in China before going to the United States in 2017. According to the documents submitted to the SEC and his personal bankruptcy and other reports, he often makes loans to Faraday future from other companies controlled by him in China, the United States and offshore jurisdictions.

After a short research company claimed that Faraday falsely reported the number of advance orders for SUVs after its future merger with a special purpose acquisition company (SPAC), the company launched an internal investigation at the end of 2021.

The company’s investigation concluded that some employees concealed “their relationship with certain related parties and related entities in business merger and after, and did not fully disclose relevant information, including but not limited to related parties and corporate governance related to PwC, the company’s independent certified public accounting firm.” In addition, the company also said in the report: “some people have failed to cooperate with this investigation and have concealed potential information related to the investigation of the special committee.”

Faraday’s future share price has lost about 90% of its market value since it closed at a 52 week high of $16.54 at the end of June.