InPhonic shares slipped after they restated results for the second and third quarters of 2006 due to accounting errors. Inphonic is a third-party reseller of cell phone plans to US consumers. They offer great prices because of their huge rebates, but some have questioned whether their rebates are fraudulent.



The company, in a filing with the SEC saying it had mistakenly recorded “certain disputed carrier commissions” as revenue, but should have waited until the commissions were actually paid. InPhonic, which sells mobile phones online under the Wirefly brand, also identified a deficiency in how it records certain fees due from consumers when contracts are cancelled.

The restatements will add $5 million to $7 million to InPhonic’s 2006 net loss, which was initially reported as $3.5 million. Shares fell 9 percent, or 94 cents, to $9.42 following the news.

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