The shares of Plug Power Inc. they fell more than 10% in Tuesday’s extended session after the fuel cell company said it will have to re-declare its 2018 and 2019 financial statements, as well as some recent quarterly filings.
Power plug,
said it detected accounting errors related primarily to non-cash items, including how to classify some costs, which resulted in less research and development costs and a corresponding increase in the cost of revenue; the reported carrying amount of rights of use assets; accruals of losses for certain service contracts; and impairment of some long-term assets.
He did not detect misconduct, he said.
“The reformulation-related accounting is complex and technical and involves significant judgments on how to apply U.S. GAAP, given the innovative nature of the company’s business and its leadership position in a new and rapidly developing industry,” he said. Plug Power in a statement.
The company will also reaffirm quarterly applications for 2019 and 2020. As a result of the corrections, Plug Power will not file the 10K form on Tuesday as planned, he said. He said he will do so “as soon as possible.”
“Revised accounting will change the way the company takes into account certain transactions and items, but is not expected to affect the company’s cash position, business operations or the economy of business agreements,” Plug Power said. .
The company said it continues to expect to meet some of its previously set targets, including gross revenues of $ 475 million in 2021, $ 750 million in 2022 and $ 1.7 billion in 2024.
Plug Power also said that at that time it published the results for the fourth quarter and the full year of 2020 and, prior to the audit, no material issues were raised. However, following the February results and in the course of the audit preparation, both the company and the KPMG auditor identified the problems, which “did not result from any cancellation of controls or misconduct”.
Plug Power shares have gained about 1,450% in the last twelve months, compared to gains of about 66% on the S&P 500 SPX index,
in the same period.