Accounting Standards

Plug Power to restate financial statements

The group has determined that it made a number of errors in accounting related to non-cash items

Plug Power, a provider of turnkey hydrogen solutions, will restate its previously issued financial statements for FY 2018 and 2019, as well as its quarterly filings for 2019 and 2020.

It comes as the group’s management and audit committee, in consultation with KPMG, has determined that a “number of errors” in accounting related to non-cash items have resulted in the need to restate the statements.

Breaking the failings down further in a SEC filing, Plug Power attributed the mistakes to the reported book value of right of use assets and related finance obligations, loss accruals for certain service contracts, the impairment of certain long-lived assets, and the classification of certain costs.

Andy Marsh, CEO at Plug Power, said: “There is no expected impact to our cash position, business operations or economics of commercial arrangements. 

“We continue to execute on our mission to provide customers with state-of-the-art fuel cell and green hydrogen solutions.”

He added: “We remain confident in our ability to leverage our strong business momentum and market leading technologies, independently and alongside our joint venture partners, to capture the significant business opportunities in this rapidly growing industry.” 

Despite the group’s claims that its financial performance goals will not be missed, CNBC reported that shares in Plug Power dropped as much as 20% on Wednesday (19 March) before settling on a 7.9% decline at the end of the day.

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