Plug Power dives as the company says it will restate financial reports

Plug Power
A forklift system. Plug Power
  • Plug Power dropped by 15% Wednesday after the company said it will file financial restatements.
  • The restatements will cover fiscal years 2018 and 2019 and quarterly filings for 2019 and 2020.
  • The hydrogen-fuel cell company said there were accounting errors related to non-cash items.
  • See more stories on Insider’s business page.

Plug Power shares sharply dropped Wednesday after the hydrogen fuel-cell company said it will restate some of its financial reports because of accounting errors.

The company said the restatements will cover the fiscal years 2018 and 2019 and quarterly filings for 2019 and 2020. The errors related to several non-cash items including the reported book value of right-of-use assets.

Plug Power shares closed down by 7.9% at $US39.33 ($51) after earlier sliding by as much as 20%. The stock in 2021 has bulked up by 16% and has advanced from about $US3.30 ($4) over the past 12 months.

The company said it doesn’t expect the revisions to impact its cash position or business operations but will change how it accounts for certain transactions and items.

“The accounting related to the restatement is complex and technical and involves significant judgments in how to apply U.S. [Generally Accepted Accounting Principles], given the innovative nature of the company’s business,” in a “new and rapidly developing industry,” Plug Power said in a press release.

The company said it had discussed its fourth-quarter 2020 and preliminary year-end results with its audit committee and its auditor KMPG before their release “and at that time, no material issues were raised.” But after the release, it said that it and KPMG identified the need for restatements.

Plug Power said it will file its Form 10-K for 2020 as soon as possible as it was unable to make the March 16 deadline.

It also expects to reach its previously stated gross billings targets of $US475 ($615) million in 2021, $US750 ($972) million in 2022 and $US1.7 ($2) billion in 2024.