The shares of Plug Power Inc. (NASDAQ:PLUG) dropped 11.79% lower in the after-hours session Tuesday at $37.65, following an 8% drop in the regular trading session.
What Happened: The plunge followed the hydrogen fuel-cell company reporting errors in accounting, particularly related to several non-cash items.
Plug Power said there were issues with the classification of certain costs that resulted in downsized research and development expenses and a corresponding increase in the cost of revenue.
Accounting errors are also observed in the “reported book value of right of use assets and related finance obligations,” “loss accruals for certain service contracts” and “the impairment of certain long-lived assets,” Plug Power noted.
What’s Next: The Latham, New York-based company said, as a result, it would restate previously issued financial statements for fiscal years 2018 and 2019 and quarterly filings for 2019 and 2020.
Plug Power said the accounting errors didn’t relate to any override of controls or misconduct. The company’s CEO Andy Marsh said “there is no expected impact to our cash position, business operations or economics of commercial arrangements.”
The hydrogen fuel-cell company still expects to meet its gross billings targets of reaching $475 million by 2021 and $1.7 billion in 2024.