PLUG POWER INC [PLUG] Filings

10-Q 1 plug-20230930x10q.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 September 30, 2023

☐

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)

968 ALBANY SHAKER ROAD, LATHAM, NEW YORK 12110

(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 $0.01 per share, outstanding as of November 3, 2023 was 605,502,333 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	41

Item 3 – Quantitative and Qualitative Disclosures About Market Risk	61

Item 4 – Controls and Procedures	62

PART II. OTHER INFORMATION

Item 1 – Legal Proceedings	63

Item 1A – Risk Factors	63

Item 2 – Unregistered Sales of Equity Securities and Use of Proceeds	65

Item 3 – Defaults Upon Senior Securities	65

Item 4 – Mine Safety Disclosures	65

Item 5 – Other Information	65

Item 6 – Exhibits	66

Signatures	67

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)


	September 30,		December 31,
	2023		2022
Assets
Current assets:
Cash and cash equivalents	$	110,809	$	690,630
Restricted cash		225,818		158,958
Available-for-sale securities, at fair value (amortized cost of $388,768 and allowance for credit losses of $0 at September 30, 2023 and amortized cost of $1,355,614 and allowance for credit losses of $0 at December 31, 2022)		388,768		1,332,943
Equity securities		67,823		134,836
Accounts receivable, net of allowance of $1,339 at September 30, 2023 and $391 at December 31, 2022		163,187		129,450
Inventory, net		1,024,209		645,636
Contract assets		112,385		62,456
Prepaid expenses and other current assets		146,905		150,389
Total current assets		2,239,904		3,305,298

Restricted cash		825,863		699,756
Property, plant, and equipment, net		1,252,483		719,793
Right of use assets related to finance leases, net		54,819		53,742
Right of use assets related to operating leases, net		404,595		360,287
Equipment related to power purchase agreements and fuel delivered to customers, net		108,717		89,293
Contract assets		29,068		41,831
Goodwill		248,023		248,607
Intangible assets, net		193,177		207,725
Investments in non-consolidated entities and non-marketable equity securities		78,871		31,250
Other assets		16,601		6,694
Total assets	$	5,452,121	$	5,764,276

Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable	$	292,925	$	191,895
Accrued expenses		153,635		156,430
Deferred revenue and other contract liabilities		176,614		131,813
Operating lease liabilities		62,110		48,861
Finance lease liabilities		9,094		8,149
Finance obligations		85,372		58,925
Current portion of long-term debt		2,648		5,142
Contingent consideration, loss accrual for service contracts, and other current liabilities		148,187		34,060
Total current liabilities		930,585		635,275

Deferred revenue and other contract liabilities		76,983		98,085
Operating lease liabilities		295,232		271,504
Finance lease liabilities		35,120		37,988
Finance obligations		287,039		270,315
Convertible senior notes, net		194,922		193,919
Long-term debt		1,405		3,925
Contingent consideration, loss accrual for service contracts, and other liabilities		121,549		193,051
Total liabilities		1,942,835		1,704,062

Stockholders’ equity:
Common stock, $0.01 par value per share; 1,500,000,000 shares authorized; Issued (including shares in treasury): 624,267,053 at September 30, 2023 and 608,421,785 at December 31, 2022		6,243		6,084
Additional paid-in capital		7,456,196		7,297,306
Accumulated other comprehensive loss		(1,621)		(26,004)
Accumulated deficit		(3,847,349)		(3,120,911)
Less common stock in treasury: 18,879,367 at September 30, 2023 and 18,076,127 at December 31, 2022		(104,183)		(96,261)
Total stockholders’ equity		3,509,286		4,060,214
Total liabilities and stockholders’ equity	$	5,452,121	$	5,764,276

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				Nine Months Ended
	September 30,				September 30,
	2023		2022		2023		2022
Net revenue:
Sales of equipment, related infrastructure and other	$	145,130	$	157,985	$	543,510	$	383,065
Services performed on fuel cell systems and related infrastructure		9,290		8,406		27,088		25,468
Power purchase agreements		20,068		9,524		44,135		30,730
Fuel delivered to customers and related equipment		19,371		12,389		47,391		40,289
Other		4,852		324		7,055		1,146
Net revenue		198,711		188,628		669,179		480,698
Cost of revenue:
Sales of equipment, related infrastructure and other		158,989		127,381		504,717		310,362
Services performed on fuel cell systems and related infrastructure		17,916		12,619		53,586		38,106
Provision for loss contracts related to service		41,581		5,727		55,801		8,843
Power purchase agreements		56,981		35,549		157,773		102,194
Fuel delivered to customers and related equipment		59,012		53,129		177,963		134,008
Other		2,197		286		4,843		1,063
Total cost of revenue		336,676		234,691		954,683		594,576

Gross loss		(137,965)		(46,063)		(285,504)		(113,878)

Operating expenses:
Research and development		27,651		28,105		83,437		72,123
Selling, general and administrative		105,451		85,578		310,621		262,420
Impairment		665		—		11,734		—
Change in fair value of contingent consideration		2,239		—		26,316		(2,605)
Total operating expenses		136,006		113,683		432,108		331,938

Operating loss		(273,971)		(159,746)		(717,612)		(445,816)

Interest income		10,369		13,429		44,392		19,321
Interest expense		(11,802)		(9,020)		(33,717)		(28,871)
Other income/(expense), net		4,987		(5,399)		(4,866)		(9,164)
Realized gain/(loss) on investments, net		—		—		263		(1,315)
Other-than-temporary impairment of available-for-sale securities		(10,831)		—		(10,831)		—
Change in fair value of equity securities		70		(4,221)		8,987		(22,864)
Loss on equity method investments		(7,030)		(4,280)		(19,970)		(10,304)

Loss before income taxes	$	(288,208)	$	(169,237)	$	(733,354)	$	(499,013)

Income tax (benefit)/expense		(4,729)		1,521		(6,916)		1,530

Net loss	$	(283,479)	$	(170,758)		(726,438)	$	(500,543)

Net loss per share:
Basic and diluted	$	(0.47)	$	(0.30)		(1.22)	$	(0.87)

Weighted average number of common stock outstanding		599,465,146		578,043,278		593,417,595		578,217,636

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				Nine Months Ended
	September 30,				September 30,
	2023		2022		2023		2022

Net loss	$	(283,479)	$	(170,758)	$	(726,438)	$	(500,543)
Other comprehensive income/(loss):
Foreign currency translation gain/(loss)		(3,021)		(1,044)		1,711		(10,092)
Change in net unrealized gain/(loss) on available-for-sale securities		4,333		(4,992)		11,841		(23,401)
Amounts reclassified from accumulated other comprehensive income/(loss):
Other-than-temporary impairment of available-for-sale securities		10,831		—		10,831		—
Comprehensive loss attributable to the Company, net of tax	$	(271,336)	$	(176,794)	$	(702,055)	$	(534,036)

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		Income (Loss)		Shares	Amount		Deficit		Equity
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 common stock 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 common stock 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
Net loss	—		—		—		—	—		—		(283,479)		(283,479)
Other comprehensive income	—		—		—		12,143	—		—		—		12,143
Stock-based compensation	361,162		4		45,850		—	—		—		—		45,854
Stock option exercises and issuance of common stock upon grant/vesting of restricted stock and restricted stock unit awards	3,818,384		38		543		—	—		—		—		581
Treasury stock acquired from employees upon exercise of stock options and vesting of restricted stock and restricted stock unit awards	—		—		—		—	594,104		(4,968)		—		(4,968)
Provision for common stock warrants	—		—		70		—	—		—		—		70
September 30, 2023	624,267,053	$	6,243	$	7,456,196	$	(1,621)	18,879,367	$	(104,183)	$	(3,847,349)	$	3,509,286

December 31, 2021	594,729,610	$	5,947	$	7,070,710	$	(1,532)	17,074,710	$	(72,526)	$	(2,396,903)	$	4,605,696
Net loss	—		—		—		—	—		—		(156,489)		(156,489)
Other comprehensive loss	—		—		—		(16,930)	—		—		—		(16,930)
Stock-based compensation	226,221		2		43,384		—	—		—		—		43,386
Stock option exercises and issuance of common stock upon grant/vesting of restricted stock and restricted stock unit awards	253,525		3		288		—	—		—		—		291
Treasury stock acquired from employees upon exercise of stock options and vesting of restricted stock and restricted stock unit awards	—

PLUG POWER INC [PLUG] Filings
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]