The shares of Plug Power Inc. (NASDAQ: PLUG) fell 11.79% to $ 37.65 in the after-hours session on Tuesday, after falling 8% in the regular trading session.
What happened: The dive followed the fact that the hydrogen fuel cell company reported the errors in the accounting, especially with respect to several non-cash items.
Plug Power said there were problems with the classification of certain costs that led to reduced spending on research and development and a corresponding increase in the cost of revenue.
Accounting errors are also observed in the “reported book value of usufruct assets and related financing obligations”, “loss accruals for certain service contracts” and “the impairment of certain long-term assets,” Plug Power noted.
See also: JPMorgan builds power, predicts ‘significant part of future hydrogen economy’
What’s next: The company, based in Latham, New York, will therefore review the previously issued financial statements for the 2018 and 2019 financial years and quarterly submissions for 2019 and 2020.
Plug Power said the accounting errors were not related to the negative control or misconduct. Andy Marsh, CEO of the company, said: “there is no expected impact on our cash position, business operations or economy of commercial arrangements.”
The hydrogen fuel cell business still expects to reach its gross billing targets of $ 475 million by 2021 and $ 1.7 billion by 2024.
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