![]() ![]() Yet in its last reported quarter, it stated that it had a $4.17 million gains from the extinguishment of its debt. For at least the last decade, Plug Power would sell shares regularly to raise cash, and it would lose money every quarter. Investors probably should have anticipated that the company had financial irregularities sooner. The bad news is that PLUG stock did not fall enough to reflect the company’s serious setback. Plug Power’s statement also undermines investors confidence in KPMG, its auditor. It tells investors how much effort companies exerted to develop novel solutions and products. R&D spending is a critical component of clean-energy firms’ financial results. The company stated that it would need to revise a few metrics from those periods.įor example, it will need to restate its loss accruals for various service contracts, and it also has to reclassify certain expenses related to research and development. Plug Power said in an SEC filing that investors should not rely on its financial statements for both fiscal year 20, plus all of those years’ quarterly results. The minute a company admits to accounting errors, investors must sell its shares. Plug Power cannot blame its stock’s underperformance on the change in investors’ sentiment, since the company admitted to a serious financial accounting error on March 16. That short-lived buying momentum, however, is not enough to justify the name’s current market capitalization of nearly $20 billion. Sure, the stock appears to have bottomed at around $30 and bounced back to $35.
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