PLUG POWER INC [PLUG] Filings

10-Q 1 plug-20240630x10q.htm 10-Q UNITED STATES

Table of Contents

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

☒

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

FOR THE QUARTERLY PERIOD ENDED JUNE 30, 2024

☐

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

FOR THE TRANSITION PERIOD FROM TO

Commission File Number: 1-34392

PLUG POWER INC.

(Exact name of registrant as specified in its charter)



Delaware		22-3672377
(State or Other Jurisdiction of		(I.R.S. Employer
Incorporation or Organization)		Identification Number)

125 VISTA BOULEVARD, SLINGERLANDS, NEW YORK 12159

(Address of Principal Executive Offices, including Zip Code)

(518) 782-7700

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:




Title of Each Class	Trading Symbol(s)	Name of Each Exchange on Which Registered
Common Stock, par value $.01 per share	PLUG	The NASDAQ Capital Market

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non- accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.


Large accelerated filer ☒	Accelerated filer ☐	Non-accelerated filer ☐	Smaller reporting company ☐	Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

The number of shares of common stock, par value of $.01 per share, outstanding as of August 3, 2024 was 879,636,025 shares.

Table of Contents

INDEX to FORM 10-Q

	Page

PART I. FINANCIAL INFORMATION

Item 1 – Interim Condensed Consolidated Financial Statements (Unaudited)	3

Condensed Consolidated Balance Sheets	3

Condensed Consolidated Statements of Operations	4

Condensed Consolidated Statements of Comprehensive Loss	5

Condensed Consolidated Statements of Stockholders’ Equity	6

Condensed Consolidated Statements of Cash Flows	7

Notes to Interim Condensed Consolidated Financial Statements	8

Item 2 – Management’s Discussion and Analysis of Financial Condition and Results of Operations	37

Item 3 – Quantitative and Qualitative Disclosures About Market Risk	60

Item 4 – Controls and Procedures	60

PART II. OTHER INFORMATION

Item 1 – Legal Proceedings	61

Item 1A – Risk Factors	61

Item 2 – Unregistered Sales of Equity Securities and Use of Proceeds	62

Item 3 – Defaults Upon Senior Securities	62

Item 4 – Mine Safety Disclosures	62

Item 5 – Other Information	62

Item 6 – Exhibits	64

Signatures	66

Table of Contents

PART 1. FINANCIAL INFORMATION

Item 1 — Interim Financial Statements (Unaudited)

Plug Power Inc. and Subsidiaries

Condensed Consolidated Balance Sheets

(In thousands, except share and per share amounts)

(Unaudited)


	June 30,		December 31,
	2024		2023
Assets
Current assets:
Cash and cash equivalents	$	62,359	$	135,033
Restricted cash		222,847		216,552
Accounts receivable, net of allowance of $7,485 at June 30, 2024 and $8,798 at December 31, 2023		189,863		243,811
Inventory, net		939,534		961,253
Contract assets		132,900		126,248
Prepaid expenses and other current assets		124,919		104,068
Total current assets		1,672,422		1,786,965

Restricted cash		733,700		817,559
Property, plant, and equipment, net		1,509,693		1,436,177
Right of use assets related to finance leases, net		54,735		57,281
Right of use assets related to operating leases, net		376,106		399,969
Equipment related to power purchase agreements and fuel delivered to customers, net		117,335		111,261
Contract assets		29,531		29,741
Intangible assets, net		178,338		188,886
Investments in non-consolidated entities and non-marketable equity securities		96,814		63,783
Other assets		11,179		11,116
Total assets	$	4,779,853	$	4,902,738

Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable	$	253,715	$	257,828
Accrued expenses		112,612		200,544
Deferred revenue and other contract liabilities		174,828		204,139
Operating lease liabilities		66,405		63,691
Finance lease liabilities		10,159		9,441
Finance obligations		85,642		84,031
Current portion of long-term debt		3,030		2,716
Contingent consideration, loss accrual for service contracts, and other current liabilities		103,223		142,410
Total current liabilities		809,614		964,800

Deferred revenue and other contract liabilities		71,018		84,163
Operating lease liabilities		264,251		292,002
Finance lease liabilities		30,573		36,133
Finance obligations		245,011		284,363
Convertible senior notes, net		208,576		195,264
Long-term debt		2,400		1,209
Contingent consideration, loss accrual for service contracts, and other liabilities		159,830		146,679
Total liabilities		1,791,273		2,004,613

Stockholders’ equity:
Common stock, $.01 par value per share; 1,500,000,000 shares authorized; Issued (including shares in treasury): 806,993,410 at June 30, 2024 and 625,305,025 at December 31, 2023		8,070		6,254
Additional paid-in capital		8,137,182		7,494,685
Accumulated other comprehensive loss		(1,949)		(6,802)
Accumulated deficit		(5,047,853)		(4,489,744)
Less common stock in treasury: 19,360,457 at June 30, 2024 and 19,169,366 at December 31, 2023		(106,870)		(106,268)
Total stockholders’ equity		2,988,580		2,898,125
Total liabilities and stockholders’ equity	$	4,779,853	$	4,902,738

The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements.

Table of Contents

Plug Power Inc. and Subsidiaries

Condensed Consolidated Statements of Operations

(In thousands, except share and per share amounts)

(Unaudited)


	Three months ended				Six months ended
	June 30,				June 30,
	2024		2023		2024		2023
Net revenue:
Sales of equipment, related infrastructure and other	$	76,788	$	216,286	$	145,083	$	398,380
Services performed on fuel cell systems and related infrastructure		13,034		8,701		26,057		17,798
Power purchase agreements		19,674		16,130		37,978		24,067
Fuel delivered to customers and related equipment		29,887		17,878		48,173		28,020
Other		3,967		1,187		6,323		2,203
Net revenue		143,350		260,182		263,614		470,468
Cost of revenue:
Sales of equipment, related infrastructure and other		129,911		187,408		265,036		345,728
Services performed on fuel cell systems and related infrastructure		13,730		23,449		26,687		35,670
Provision for loss contracts related to service		16,484		7,331		32,229		14,220
Power purchase agreements		54,312		53,976		109,540		100,792
Fuel delivered to customers and related equipment		58,317		64,450		116,890		118,951
Other		1,851		1,711		3,562		2,646
Total cost of revenue		274,605		338,325		553,944		618,007

Gross loss		(131,255)		(78,143)		(290,330)		(147,539)

Operating expenses:
Research and development		18,940		29,251		44,220		55,786
Selling, general and administrative		85,144		101,154		163,103		205,170
Restructuring		1,629		—		7,640		—
Impairment		3,937		9,986		4,221		11,069
Change in fair value of contingent consideration		3,768		15,308		(5,432)		24,077
Total operating expenses		113,418		155,699		213,752		296,102

Operating loss		(244,673)		(233,842)		(504,082)		(443,641)

Interest income		7,795		16,391		17,072		34,023
Interest expense		(9,511)		(11,265)		(20,836)		(21,915)
Other expense, net		(9,080)		(5,082)		(16,076)		(9,853)
Realized gain on investments, net		—		264		—		263
Change in fair value of equity securities		—		3,842		—		8,917
Loss on equity method investments		(7,240)		(7,623)		(20,353)		(12,940)
Loss on extinguishment of convertible senior notes		—		—		(14,047)		—

Loss before income taxes	$	(262,709)	$	(237,315)	$	(558,322)	$	(445,146)

Income tax benefit		376		917		213		2,187

Net loss	$	(262,333)	$	(236,398)	$	(558,109)	$	(442,959)

Net loss per share:
Basic and diluted	$	(0.36)	$	(0.40)	$	(0.81)	$	(0.75)

Weighted average number of common stock outstanding		736,848,684		598,053,390		688,900,904		593,653,720

The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements.

Table of Contents

Plug Power Inc. and Subsidiaries

Condensed Consolidated Statements of Comprehensive Loss

(In thousands)

(Unaudited)


	Three months ended				Six months ended
	June 30,				June 30,
	2024		2023		2024		2023

Net loss	$	(262,333)	$	(236,398)	$	(558,109)	$	(442,959)
Other comprehensive income:
Foreign currency translation gain		7,129		3,073		4,853		4,732
Change in net unrealized gain on available-for-sale securities		—		2,197		—		7,508
Comprehensive loss, net of tax	$	(255,204)	$	(231,128)	$	(553,256)	$	(430,719)

The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements.

Table of Contents

Plug Power Inc. and Subsidiaries

Condensed Consolidated Statements of Stockholders’ Equity

(In thousands, except share amounts)

(Unaudited)


						Accumulated
				Additional		Other							Total
	Common Stock			Paid-in		Comprehensive		Treasury Stock			Accumulated		Stockholders’
	Shares	Amount		Capital		Gain/(Loss)		Shares	Amount		Deficit		Equity
December 31, 2023	625,305,025	$	6,254	$	7,494,685	$	(6,802)	19,169,366	$	(106,268)	$	(4,489,744)	$	2,898,125
Net loss	—		—		—		—	—		—		(295,776)		(295,776)
Other comprehensive loss	—		—		—		(2,231)	—		—		—		(2,231)
Stock-based compensation	923,027		9		13,695		—	—		—		—		13,704
Public offerings, common stock, net of issuance costs	79,553,175		796		304,550		—	—		—		—		305,346
Stock option exercises and issuance of common stock upon grant/vesting of restricted stock and restricted stock unit awards	(176,678)		(2)		43		—	—		—		—		41
Treasury stock acquired from employees upon exercise of stock options and vesting of restricted stock and restricted stock unit awards	—		—		—		—	72,849		(278)		—		(278)
Provision for common stock warrants	—		—		10,236		—	—		—		—		10,236
March 31, 2024	705,604,549	$	7,057	$	7,823,209	$	(9,033)	19,242,215	$	(106,546)	$	(4,785,520)	$	2,929,167
Net loss	—		—		—		—	—		—		(262,333)		(262,333)
Other comprehensive income	—		—		—		7,084	—		—		—		7,084
Stock-based compensation	1,252,258		13		26,296		—	—		—		—		26,309
Public offerings, common stock, net of issuance costs	96,812,695		968		265,806		—	—		—		—		266,774
Stock option exercises and issuance of common stock upon grant/vesting of restricted stock and restricted stock unit awards	698,280		6		20		—	—		—		—		26
Treasury stock acquired from employees upon exercise of stock options and vesting of restricted stock and restricted stock unit awards	—		—		—		—	118,242		(324)		—		(324)
Earnouts from acquisitions paid in stock	2,625,628		26		18,215		—	—		—		—		18,241
Provision for common stock warrants	—		—		3,636		—	—		—		—		3,636
June 30, 2024	806,993,410	$	8,070	$	8,137,182	$	(1,949)	19,360,457	$	(106,870)	$	(5,047,853)	$	2,988,580

December 31, 2022	608,421,785	$	6,084	$	7,297,306	$	(26,004)	18,076,127	$	(96,261)	$	(3,120,911)	$	4,060,214
Net loss	—		—		—		—	—		—		(206,561)		(206,561)
Other comprehensive income	—		—		—		6,970	—		—		—		6,970
Stock-based compensation	228,954		2		43,300		—	—		—		—		43,302
Stock option exercises and issuance of common stock upon grant/vesting of restricted stock and restricted stock unit awards	620,250		6		668		—	—		—		—		674
Treasury stock acquired from employees upon exercise of stock options and vesting of restricted stock and restricted stock unit awards	—		—		—		—	169,787		(2,590)		—		(2,590)
Exercise of warrants	2,680,637		28		(28)		—	—		—		—		—
Provision for common stock warrants	—		—		19,641		—	—		—		—		19,641
March 31, 2023	611,951,626	$	6,120	$	7,360,887	$	(19,034)	18,245,914	$	(98,851)	$	(3,327,472)	$	3,921,650
Net loss	—		—		—		—	—		—		(236,398)		(236,398)
Other comprehensive income	—		—		—		5,270	—		—		—		5,270
Stock-based compensation	338,328		3		39,915		—	—		—		—		39,918
Stock option exercises and issuance of common stock upon grant/vesting of restricted stock and restricted stock unit awards	246,717		3		55		—	—		—		—		58
Treasury stock acquired from employees upon exercise of stock options and vesting of restricted stock and restricted stock unit awards	—		—		—		—	39,349		(364)		—		(364)
Exercise of warrants	6,623,794		66		(66)		—	—		—		—		—
Provision for common stock warrants	—		—		951		—	—		—		—		951
Earnouts from acquisitions paid in stock	927,042		9		7,991		—	—		—		—		8,000
June 30, 2023	620,087,507	$	6,201	$	7,409,733	$	(13,764)	18,285,263	$	(99,215)	$	(3,563,870)	$	3,739,085

The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements.

Table of Contents

Plug Power Inc. and Subsidiaries

Condensed Consolidated Statements of Cash Flows

(In thousands)

(Unaudited)


	Six months ended June 30,
	2024		2023
Operating activities
Net loss	$	(558,109)	$	(442,959)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation of long-lived assets		34,603		21,266
Amortization of intangible assets		9,434		9,755
Lower of cost or net realizable value inventory adjustment and provision for excess and obsolete inventory		53,359		11,760
Stock-based compensation		40,013		83,220
Loss on extinguishment of convertible senior notes		14,047		—
(Recoveries)/provision for losses on accounts receivable		(1,313)

PLUG POWER INC [PLUG] Filings
10-Q	[2024-08-08]
10-Q	[2024-05-09]
10-K	[2024-02-29]
10-Q	[2023-11-09]
10-Q	[2023-08-09]
10-Q	[2023-05-09]
10-K	[2023-03-01]
10-Q	[2022-11-08]
10-Q	[2022-08-09]
10-Q	[2022-05-09]
10-K	[2022-03-01]
10-Q	[2021-11-09]
10-Q	[2021-08-05]
10-Q	[2021-06-22]
10-K	[2021-05-14]
10-Q	[2020-11-09]
10-Q	[2020-08-10]
10-Q	[2020-05-08]
10-K	[2020-03-10]
10-Q	[2019-11-08]
10-Q	[2019-08-09]
10-Q	[2019-05-08]
10-K	[2019-03-13]
10-Q	[2018-11-09]
10-Q	[2018-08-09]
10-Q	[2018-05-10]
10-K	[2018-03-12]
10-Q	[2017-11-08]
10-Q	[2017-08-08]
10-Q	[2017-05-09]
10-K	[2017-03-10]
10-Q	[2016-11-08]
10-Q	[2016-08-09]
10-Q	[2016-05-10]
10-K	[2016-03-15]
10-Q	[2015-11-09]
10-Q	[2015-08-06]
10-Q	[2015-05-11]
10-K	[2015-03-17]
10-Q	[2014-11-14]
10-Q	[2014-08-14]
10-Q	[2014-05-15]
10-K	[2014-03-31]
10-Q	[2013-11-14]
10-Q	[2013-08-14]
10-Q	[2013-05-15]
10-K	[2013-04-01]
S-1	[2013-01-15]
10-Q	[2012-11-14]
10-Q	[2012-08-14]
10-Q	[2012-05-15]
10-K	[2012-03-30]