Plug Power Inc. shares fell more than 10% in Tuesday’s extended session after the fuel cell company said it will have to restate its financial statements for the 2018 and 2019 fiscal years, as well as some quarterly records recent news.
Connect the power plug,
said it detected errors in accounting mainly related to non-monetary items, including how it classified some costs, which resulted in less research and development expenses and a corresponding increase in the cost of revenue; the reported book value of right-of-use assets; increased losses for certain service contracts; and impairment of some long-term assets.
He did not detect any misconduct, he said.
“Accounting related to restatement is complex and technical and involves significant judgments about how to apply US GAAP, given the innovative nature of the company’s business and its leadership position in a new and rapidly developing industry,” said Plug Power in a statement. .
The company will also resubmit quarterly deposits for 2019 and 2020. As a result of the corrections, Plug Power will not present its 10K form on Tuesday, as planned, he said. He said he will do it “as soon as possible”.
“The accounting review will change the way the company accounts for certain transactions and items, but it is not expected to affect the company’s cash position, business operations or the economics of trade agreements,” said Plug Power.
The company said it continues to hope to meet some of its previously stated goals, including gross revenues of $ 475 million in 2021, $ 750 million in 2022 and $ 1.7 billion in 2024.
Plug Power also said that, at the time, it released its fourth quarter and full year 2020 results, and before the audit, no material issues were raised. After the February results and during the preparation of the audit, however, both the company and the KPMG auditor identified the problems, which did not “result from any breach of controls or misconduct”
Plug Power shares have gained almost 1,450% in the last 12 months, compared to gains of around 66% for the S&P 500 SPX index,
in the same period.