From Plug to me- Thank you for your email, interest, and in being a Plug Power Shareholder. I do want to reiterate what the current situation, of our delayed 10-K, will not effect:
These changes will not affect:
Revenue
Cash position
Business operations
Our commercial arrangements
Our guidance that we laid out in the Jan 26th update.
KPMG has been our independent accountants for close to 25 years, and while they have determined our prior Financial Statements need to be restated, they are related to several non-cash items, relating to lease accounting as rule 842 came into effect in 2019 such as:
• book value of right of use assets and write down of financial obligations
• Loss accruals for certain service contracts
• impairment of certain long-lived assets
• classification of certain costs, resulting in a decrease in R&D search and expense and a corresponding increase in cost of revenue.
Our core material handling clients do business with Plug Power through either Direct Purchase, or with Sale-Leaseback agreements which hence involve operating leases.
Our accounting as a result can be complex and technical due to the nature of our business. These changes aren’t being made due to override of controls or misconduct, and KPMG had informed the Audit Committee that these issues are not related to an override of controls or misconduct.
Plug Power, at the highest levels, is focused on the tremendous opportunities and business propositions at hand. At the highest levels, Plug Power is also sensitive to the situation and the dynamics as a result and is working with KPMG around the clock to rectify and complete this process in order to release our 10-K as quickly as possible.
I hope this is helpful, we thank you for your support, and wish you and your family stay safe – Roberto
Roberto Friedlander
Director Investor Relations
