Diligent shares fell to their lowest level in 22 months on Wednesday after the company said it can't produce its accounts for the last three financial years, as previously promised, by 12 December.
The board papers software company says it can't product any information about its financial position this year either by 12 December.
Diligent says it is now aiming to produce all this information by 28 February next year.
Somewhat surprisingly, the stock exchange operator has said it won't suspend trading in Diligent's shares, as long as it files the accounts by 28 February.
In June, the same month Diligent first said there was a problem with its accounts, the NZX publicly censured the company and fined it nearly $19,000 failing to properly notify the appointment of new directors and giving some of its top executives too many shares.
Milford Asset Management sold its more than 6% stake in Diligent between May and July this year for prices between just over $6 and $8.18.
Diligent shares peaked at $8.20 on 31 May.
On Wednesday, Diligent shares fell as low as $2.76, their lowest level since February 2012, before recovering somewhat to close at $3.35, down 50 cents.
Milford analyst Mark Warminger says his company is not tempted to start buying Diligent shares again, despite the share price dropping so much.
He says when there was full knowledge of the company's financial state in May through to the middle of July Milford believed selling at from $6 to $8 was a good exit price.
But Mr Warminger says since the accounting issues there have not been any complete financials for nearly six months and there will not be any full financials until after the revenue recognition process has run its course.
He says that makes it difficult to know how the underlying business has been performing.
"So from our point of view it's really just like throwing money at the stock to try and support the share price when you've got no idea what the underlying business is doing and you have no idea what value is there."
Mr Warminger says checking the accounts for the last three years is obviously a complex process but he assumed a company the size of Diligent would have had enough staff to get it done in a timely fashion.
He says it's unusual and disappointing that the company has had to ask the NZX for another extension until February, when it was supposed to have produced the financial information by December.
Diligent says it will provide selected operating highlights for the December quarter in mid-January.
