Plug Power stock dives 23% as the company says it will restate financial reports

Plug Power

  • Plug Power shares dropped as much as 23% early Wednesday as the company outlined plans for financial restatements.
  • The hydrogen-fuel cell company will restate fiscal years 2018 and 2019 and quarterly filings for 2019 and 2020.
  • The restatements stem from accounting errors related to several non-cash items.
  • See more stories on Insider's business page.

Plug Power shares tumbled early 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 lost 23% when they hit $32.85 ahead of the opening bell, then pared the decline to 19%. The stock in 2021 has bulked up by 26% and has advanced from about $3.30 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 $475 million in 2021, $750 million in 2022 and $1.7 billion in 2024.

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