The share of Plug Power Inc. fell more than 10% in the extended session on Tuesday after the fuel cell company said it needed to review financial statements for the 2018 and 2019 financial years, as well as some recent quarterly submissions.
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said it spotted accounting errors mostly related to non-cash items, including how it classifies some costs, which led to less spending on research and development and a corresponding increase in revenue costs; the reported book value of usufruct assets; loss accruals for certain employment contracts; and impairment of some long-term assets.
It did not detect misconduct.
“The accounting related to the adaptation is complex and technical and involves significant judgment in the application of US GAAP, given the innovative nature of the business and its leading position in a new and rapidly evolving industry,” said Plug Power in ‘ a statement said.
The company will also review the quarterly submission for 2019 and 2020. As a result of the corrections, Plug Power will not submit its plan 10K on Tuesday as planned, he said. It is said that it will do so as soon as possible.
“The revised accounting will change the way the company takes into account certain transactions and items, but it is not expected to affect the company’s cash position, business operations or the economics of commercial arrangements,” said Plug Power.
The company said it continues to expect to reach a number of its targets, including gross invoices of $ 475 million in 2021, $ 750 million in 2022 and $ 1.7 billion in 2024.
Plug Power also said that no significant issues were raised during the fourth quarter and full year 2020 results and before the audit. However, following the February results and during the preparation of the audit, the company and the auditor KPMG identified the issues, which were not the result of a predominance of control or misconduct.
Shares of Plug Power have risen nearly 1,450% over the past twelve months, compared to 66% for the S&P 500 index SPX,
in the same period.