Plug Power to Settle SEC Probe Over Accounting, Financial

By Mark Maurer

Hydrogen fuel-cell company Plug Power agreed to pay $1.25 million to settle charges that it violated rules on financial reporting, accounting and controls failures that had led the company to restate results for several prior years.

The U.S. Securities and Exchange Commission on Wednesday said that between 2018 and third quarter of 2020, Plug Power failed to adequately account for its right-of-use assets and lease liabilities for certain sale-leaseback transactions. The SEC also said the company didn't properly classify or present certain costs tied to research and development activities as cost of revenue.

Plug Power in 2021 said it would restate prior annual reports for 2018 and 2019 and prior quarterly reports for 2019 and 2020.

The company on Wednesday also agreed to fully fix its material weaknesses in financial-reporting controls and other disclosure controls, while not admitting to or denying the charges. If it doesn't make the fixes, the company would have to pay an additional $5 million, known as a "springing penalty," the SEC said.

Plug Power's chief executive, Andy Marsh, said: "Plug has diligently and fully cooperated with the SEC throughout the process and took prompt corrective measures and extensive remedial actions and steps to improve and enhance our policies, procedures, and internal controls over financial reporting."

Write to Mark Maurer at [email protected]

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