Plug Power Inc (PLUG)

[iHub Time Traveler]

Our purchase orders may not ship, be commissioned or installed, or convert to revenue, and our pending orders may not convert to
purchase orders, which may have a material adverse effect on our revenue and cash flow.

Some of the orders we accept from customers require certain conditions or contingencies to be satisfied, or may be cancelled,
prior to shipment or prior to commissioning or installation, some of which are outside of our control. Historically, shipments made
against these orders have generally occurred between ninety days and twenty-four months from the date of acceptance of the order.
Orders for the Company’s products and services in 2016 approximated $280.0 million compared to total orders in 2015 of
$205.3 million. The Company’s backlog for products and services as of December 31, 2016 was approximately $382.5 million,
compared to the Company’s backlog as of December 31, 2015 of approximately $235.6 million. The time periods from receipt of an
order to shipment date and installation vary widely and are determined by a number of factors, including the terms of the customer
contract and the customer’s deployment plan. There may also be product redesign or modification requirements that must be satisfied
prior to shipment of units under certain of our agreements. If the redesigns or modifications are not completed, some or all of our
orders may not ship or convert to revenue. We also have publicly discussed anticipated, pending orders with prospective customers;
however, those prospective customers may require certain conditions or contingencies to be satisfied prior to issuing a purchase order
to us, some of which are outside of our control. Such conditions or contingencies that may be required to be satisfied before we receive
a purchase order may include, but are not limited to, successful product demonstrations or field trials. Converting orders into revenue
is also dependent upon our customers’ ability to obtain financing. Some conditions or contingencies that are out of our control may
include, but are not limited to, government tax policy, government funding programs, and government incentive programs.
Additionally, some conditions and contingencies may extend for several years. We may have to compensate customers, by either
reimbursement, forfeiting portions of associated revenue, or other methods depending on the terms of the customer contract, based on
the failure on any of these conditions or contingencies. While not probable, this could have an adverse impact on our revenue and cash
flow.