Zymergen shares fell as much as 77% on Wednesday after the business announced "problems" with its product.

The latest IPO, which Cathie Wood's Ark Invest purchased, stated that revenue is no longer expected this year or next.

Josh Hoffman, CEO of Zymergen, has resigned from the company.

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Zymergen, a synthetic biology startup that completed its initial public offering in April, fell as high as 77 percent on Wednesday after the company claimed that product "problems" likely result in little income for the foreseeable future.

In a statement issued on Tuesday, the business stated that it became aware of difficulties with its commercial product pipeline that will impact Zymergen's delivery timeline and revenue predictions. Zymergen is working on Hyaline, a flexible display application for displays and gadgets.

"Several important target customers found technical obstacles in adopting Hyaline into their manufacturing processes," Zymergen said, adding that while it has done work in fixing the issues, the company's commercial ramp will be delayed.

Furthermore, Zymergen stated that the total addressable market for foldable display applications is increasing slower than expected, resulting in decreased sales projections for the company.

Zymergen no longer anticipates generating product income in 2021, and any money generated in 2022 will be "insignificant."

On Wednesday, Cathie Wood's Ark Invest is feeling the pinch. As of Wednesday, the Ark Genomic Revolution ETF had just over 1 million shares of Zymergen, resulting in a loss of more than $26 million. According to its daily trade updates, Ark had increased its position between late April and early May.

Despite Zymergen's loss, the Ark Genomic Revolution ETF was up around 0.50 percent in Wednesday trading.