10-Q 1 plug-20240331x10q.htm 10-Q UNITED STATES
6412561345892051650001093691--12-312024Q1falseNY0.460.35P1DP3DP7YP1Y10001093691plug:AmazonTransactionAgreement2022Memberus-gaap:MeasurementInputSharePriceMemberplug:WarrantIssuedTrancheFourMember2024-03-310001093691plug:AmazonTransactionAgreement2022Memberus-gaap:MeasurementInputRiskFreeInterestRateMemberplug:WarrantIssuedTrancheFourMember2024-03-310001093691plug:AmazonTransactionAgreement2022Memberus-gaap:MeasurementInputPriceVolatilityMemberplug:WarrantIssuedTrancheFourMember2024-03-310001093691plug:AmazonTransactionAgreement2022Memberus-gaap:MeasurementInputExercisePriceMemberplug:WarrantIssuedTrancheFourMember2024-03-310001093691plug:WarrantIssuedWithWalmartStoresIncTransactionAgreementInJuly2017Memberus-gaap:MeasurementInputSharePriceMemberplug:WarrantIssuedTrancheThreeMember2023-10-300001093691plug:WarrantIssuedWithWalmartStoresIncTransactionAgreementInJuly2017Memberus-gaap:MeasurementInputRiskFreeInterestRateMemberplug:WarrantIssuedTrancheThreeMember2023-10-300001093691plug:WarrantIssuedWithWalmartStoresIncTransactionAgreementInJuly2017Memberus-gaap:MeasurementInputPriceVolatilityMemberplug:WarrantIssuedTrancheThreeMember2023-10-300001093691plug:WarrantIssuedWithWalmartStoresIncTransactionAgreementInJuly2017Memberus-gaap:MeasurementInputExercisePriceMemberplug:WarrantIssuedTrancheThreeMember2023-10-300001093691plug:AmazonTransactionAgreement2022Memberus-gaap:MeasurementInputSharePriceMemberplug:WarrantsTranchesOneThroughThreeMember2022-08-240001093691plug:AmazonTransactionAgreement2022Memberus-gaap:MeasurementInputRiskFreeInterestRateMemberplug:WarrantsTranchesOneThroughThreeMember2022-08-240001093691plug:AmazonTransactionAgreement2022Memberus-gaap:MeasurementInputPriceVolatilityMemberplug:WarrantsTranchesOneThroughThreeMember2022-08-240001093691plug:AmazonTransactionAgreement2022Memberus-gaap:MeasurementInputExercisePriceMemberplug:WarrantsTranchesOneThroughThreeMember2022-08-240001093691plug:WarrantIssuedWithWalmartStoresIncTransactionAgreementInJuly2017Memberus-gaap:MeasurementInputSharePriceMemberplug:WarrantsTranchesOneAndTwoMember2019-01-010001093691plug:WarrantIssuedWithWalmartStoresIncTransactionAgreementInJuly2017Memberus-gaap:MeasurementInputRiskFreeInterestRateMemberplug:WarrantsTranchesOneAndTwoMember2019-01-010001093691plug:WarrantIssuedWithWalmartStoresIncTransactionAgreementInJuly2017Memberus-gaap:MeasurementInputPriceVolatilityMemberplug:WarrantsTranchesOneAndTwoMember2019-01-010001093691plug:WarrantIssuedWithWalmartStoresIncTransactionAgreementInJuly2017Memberus-gaap:MeasurementInputExercisePriceMemberplug:WarrantsTranchesOneAndTwoMember2019-01-010001093691us-gaap:TreasuryStockCommonMember2024-01-012024-03-310001093691us-gaap:TreasuryStockCommonMember2023-01-012023-03-310001093691srt:MaximumMemberplug:AtMarketIssuanceSalesAgreementMember2024-01-172024-01-170001093691plug:FivePointFivePercentOfConvertibleSeniorNotesMemberus-gaap:ForwardContractsMember2018-03-012018-03-310001093691us-gaap:RetainedEarningsMember2024-03-310001093691us-gaap:AociIncludingPortionAttributableToNoncontrollingInterestMember2024-03-310001093691us-gaap:AdditionalPaidInCapitalMember2024-03-310001093691us-gaap:RetainedEarningsMember2023-12-310001093691us-gaap:AociIncludingPortionAttributableToNoncontrollingInterestMember2023-12-310001093691us-gaap:AdditionalPaidInCapitalMember2023-12-310001093691us-gaap:RetainedEarningsMember2023-03-310001093691us-gaap:AociIncludingPortionAttributableToNoncontrollingInterestMember2023-03-310001093691us-gaap:AdditionalPaidInCapitalMember2023-03-310001093691us-gaap:RetainedEarningsMember2022-12-310001093691us-gaap:AociIncludingPortionAttributableToNoncontrollingInterestMember2022-12-310001093691us-gaap:AdditionalPaidInCapitalMember2022-12-310001093691us-gaap:SubsequentEventMemberplug:AtMarketIssuanceSalesAgreementMember2024-05-100001093691plug:AtMarketIssuanceSalesAgreementMember2024-05-100001093691plug:AtMarketIssuanceSalesAgreementMember2024-03-310001093691plug:StockOptionsVestingBasedOnPerformanceMember2023-12-310001093691us-gaap:RestrictedStockMember2023-12-310001093691srt:NorthAmericaMember2024-01-012024-03-310001093691srt:EuropeMember2024-01-012024-03-310001093691srt:AsiaMember2024-01-012024-03-310001093691plug:SkPlugHyverseCoLtdMember2024-01-012024-03-310001093691plug:OtherCountriesExcludingNorthAmericaMember2024-01-012024-03-310001093691plug:HyviaMember2024-01-012024-03-310001093691srt:NorthAmericaMember2023-01-012023-03-310001093691srt:EuropeMember2023-01-012023-03-310001093691srt:AsiaMember2023-01-012023-03-310001093691plug:SkPlugHyverseCoLtdMember2023-01-012023-03-310001093691plug:OtherCountriesExcludingNorthAmericaMember2023-01-012023-03-310001093691plug:HyviaMember2023-01-012023-03-310001093691plug:ServicesPerformedOnFuelCellSystemsAndRelatedInfrastructureMembersrt:MinimumMember2024-03-310001093691plug:ServicesPerformedOnFuelCellSystemsAndRelatedInfrastructureMembersrt:MaximumMember2024-03-310001093691plug:SalesOfFuelCellSystemsMembersrt:MinimumMember2024-03-310001093691plug:SalesOfFuelCellSystemsMembersrt:MaximumMember2024-03-310001093691plug:ServicesPerformedOnFuelCellSystemsAndRelatedInfrastructureMember2024-03-310001093691plug:SaleOfOilAndGasEquipmentMember2024-03-310001093691plug:SaleOfHydrogenInstallationsAndOtherInfrastructureMember2024-03-310001093691plug:SaleOfElectrolyzersMember2024-03-310001093691plug:SaleOfCryogenicEquipmentMember2024-03-310001093691plug:PowerPurchaseAgreementsMember2024-03-310001093691plug:FuelDeliveredToCustomersAndRelatedEquipmentMember2024-03-310001093691plug:SaleOfHydrogenInfrastructureMember2024-01-012024-03-310001093691plug:SaleOfEngineeredEquipmentMember2024-01-012024-03-310001093691plug:SaleOfElectrolyzersMember2024-01-012024-03-310001093691plug:SaleOfCryogenicEquipmentMember2024-01-012024-03-310001093691plug:SalesOfFuelCellSystemsMember2023-01-012023-03-310001093691plug:SaleOfHydrogenInfrastructureMember2023-01-012023-03-310001093691plug:SaleOfEngineeredEquipmentMember2023-01-012023-03-310001093691plug:SaleOfElectrolyzersMember2023-01-012023-03-310001093691plug:SaleOfCryogenicEquipmentMember2023-01-012023-03-310001093691us-gaap:OtherRestructuringMember2024-03-310001093691us-gaap:EmployeeSeveranceMember2024-03-310001093691plug:OtherSpecifiedRestructuringMember2024-03-310001093691us-gaap:OtherRestructuringMember2024-01-012024-03-310001093691us-gaap:EmployeeSeveranceMember2024-01-012024-03-310001093691us-gaap:OneTimeTerminationBenefitsMember2024-03-310001093691plug:FramesHoldingB.v.Memberplug:CollateralRelatedToAcquisitionsMember2024-03-310001093691plug:FramesHoldingB.v.Memberplug:CollateralRelatedToAcquisitionsMember2023-12-310001093691us-gaap:LandMember2024-03-310001093691us-gaap:ConstructionInProgressMember2024-03-310001093691plug:SoftwareMachineryAndEquipmentMember2024-03-310001093691plug:HydrogenProductionPlantsMember2024-03-310001093691plug:BuildingsAndLeaseholdImprovementsMember2024-03-310001093691us-gaap:LandMember2023-12-310001093691us-gaap:ConstructionInProgressMember2023-12-310001093691plug:SoftwareMachineryAndEquipmentMember2023-12-310001093691plug:HydrogenProductionPlantsMember2023-12-310001093691plug:BuildingsAndLeaseholdImprovementsMember2023-12-310001093691plug:SkPlugHyverseCoLtdMember2024-01-012024-03-310001093691plug:HyviaMember2024-01-012024-03-310001093691plug:CleanH2InfraFundMember2024-01-012024-03-310001093691plug:AccionaPlugS.l.Member2024-01-012024-03-310001093691plug:SkPlugHyverseCoLtdMember2023-01-012023-03-310001093691plug:HyviaMember2023-01-012023-03-310001093691plug:CleanH2InfraFundMember2023-01-012023-03-310001093691plug:AccionaPlugS.l.Member2023-01-012023-03-310001093691us-gaap:SubsequentEventMemberplug:AtMarketIssuanceSalesAgreementMember2024-04-012024-05-100001093691plug:AtMarketIssuanceSalesAgreementMember2024-01-012024-05-100001093691plug:AtMarketIssuanceSalesAgreementMember2024-01-012024-03-310001093691us-gaap:AociIncludingPortionAttributableToNoncontrollingInterestMember2024-01-012024-03-310001093691us-gaap:AociIncludingPortionAttributableToNoncontrollingInterestMember2023-01-012023-03-310001093691us-gaap:AccumulatedTranslationAdjustmentMember2024-01-012024-03-310001093691us-gaap:AccumulatedTranslationAdjustmentMember2023-01-012023-03-310001093691srt:NorthAmericaMember2024-03-310001093691srt:EuropeMember2024-03-310001093691plug:OtherCountriesExcludingNorthAmericaMember2024-03-310001093691srt:NorthAmericaMember2023-12-310001093691srt:EuropeMember2023-12-310001093691plug:OtherCountriesExcludingNorthAmericaMember2023-12-310001093691us-gaap:RetainedEarningsMember2024-01-012024-03-310001093691us-gaap:RetainedEarningsMember2023-01-012023-03-310001093691plug:JouleProcessingLlcMemberplug:ContingentConsiderationMemberus-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:FairValueMeasurementsRecurringMember2024-03-310001093691us-gaap:FairValueInputsLevel3Memberplug:ContingentConsiderationMemberus-gaap:FairValueMeasurementsRecurringMember2024-03-310001093691plug:UnitedHydrogenGroupIncMemberplug:ContingentConsiderationMemberus-gaap:EstimateOfFairValueFairValueDisclosureMember2024-03-310001093691plug:JouleProcessingLlcMemberplug:ContingentConsiderationMemberus-gaap:EstimateOfFairValueFairValueDisclosureMember2024-03-310001093691plug:GinerElxIncMemberplug:ContingentConsiderationMemberus-gaap:EstimateOfFairValueFairValueDisclosureMember2024-03-310001093691plug:FramesHoldingB.v.Memberplug:ContingentConsiderationMemberus-gaap:EstimateOfFairValueFairValueDisclosureMember2024-03-310001093691plug:ContingentConsiderationMemberus-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:FairValueMeasurementsRecurringMember2024-03-310001093691plug:ContingentConsiderationMemberus-gaap:CarryingReportedAmountFairValueDisclosureMemberus-gaap:FairValueMeasurementsRecurringMember2024-03-310001093691plug:JouleProcessingLlcMemberplug:ContingentConsiderationMember2024-03-310001093691us-gaap:FairValueInputsLevel3Memberplug:ContingentConsiderationMemberus-gaap:FairValueMeasurementsRecurringMember2023-12-310001093691plug:UnitedHydrogenGroupIncMemberplug:ContingentConsiderationMemberus-gaap:EstimateOfFairValueFairValueDisclosureMember2023-12-310001093691plug:JouleProcessingLlcMemberplug:ContingentConsiderationMemberus-gaap:EstimateOfFairValueFairValueDisclosureMember2023-12-310001093691plug:GinerElxIncMemberplug:ContingentConsiderationMemberus-gaap:EstimateOfFairValueFairValueDisclosureMember2023-12-310001093691plug:FramesHoldingB.v.Memberplug:ContingentConsiderationMemberus-gaap:EstimateOfFairValueFairValueDisclosureMember2023-12-310001093691plug:ContingentConsiderationMemberus-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:FairValueMeasurementsRecurringMember2023-12-310001093691plug:ContingentConsiderationMemberus-gaap:CarryingReportedAmountFairValueDisclosureMemberus-gaap:FairValueMeasurementsRecurringMember2023-12-3100010936912023-05-300001093691us-gaap:TechnologyBasedIntangibleAssetsMember2024-03-310001093691plug:DryStackElectrolyzerTechnologyMember2024-03-310001093691plug:CustomerRelationshipsTradeNameOtherMember2024-03-310001093691us-gaap:TechnologyBasedIntangibleAssetsMember2023-12-310001093691plug:DryStackElectrolyzerTechnologyMember2023-12-310001093691plug:CustomerRelationshipsTradeNameOtherMember2023-12-310001093691plug:FinancingTransactionFinanceObligationMember2024-03-310001093691plug:FinancingTransactionFinanceObligationMember2023-03-310001093691plug:FinancingTransactionFinanceObligationMember2024-01-012024-03-310001093691plug:FinancingTransactionFinanceObligationMember2023-01-012023-03-310001093691plug:SaleAndLeaseBackTransactionSaleOfFutureRevenueDebtMember2024-01-012024-03-310001093691plug:SaleAndLeaseBackTransactionSaleOfFutureRevenueDebtMember2023-01-012023-03-310001093691plug:JouleProcessingLlcMemberplug:ContingentConsiderationMemberus-gaap:EstimateOfFairValueFairValueDisclosureMember2024-01-012024-03-310001093691plug:SkPlugHyverseCoLtdMember2024-03-310001093691plug:HyviaMember2024-03-310001093691plug:CleanH2InfraFundMember2024-03-310001093691plug:AccionaPlugS.l.Member2024-03-310001093691plug:SkPlugHyverseCoLtdMember2023-12-310001093691plug:HyviaMember2023-12-310001093691plug:CleanH2InfraFundMember2023-12-310001093691plug:AccionaPlugS.l.Member2023-12-310001093691plug:StockOptionsVestingBasedOnPerformanceMember2024-03-310001093691us-gaap:RestrictedStockMember2024-03-310001093691plug:RestrictedCommonUnitsBasedOnPerformanceMember2024-03-310001093691plug:SavingsAndRetirementPlan401KMember2024-01-012024-03-310001093691plug:SavingsAndRetirementPlan401KMember2023-01-012023-03-310001093691plug:SevenPercentConvertibleSeniorNotesMember2020-05-200001093691plug:HolderMayRequireRedemptionMemberplug:SevenPercentConvertibleSeniorNotesMember2024-03-202024-03-200001093691plug:FivePointFivePercentOfConvertibleSeniorNotesMember2024-03-310001093691plug:ThreePointSevenFivePercentOfConvertibleSeniorNotesMember2024-03-200001093691plug:ThreePointSevenFivePercentOfConvertibleSeniorNotesMember2024-03-120001093691srt:MinimumMember2024-03-310001093691srt:MaximumMember2024-03-310001093691plug:ThreePointSevenFivePercentOfConvertibleSeniorNotesMember2023-03-310001093691plug:LoanAndSecurityAgreementMemberus-gaap:SecuredDebtMember2024-03-310001093691plug:ThreePointSevenFivePercentOfConvertibleSeniorNotesMember2024-03-210001093691plug:SevenPercentConvertibleSeniorNotesMember2024-03-120001093691plug:ThreePointSevenFivePercentOfConvertibleSeniorNotesMember2020-05-310001093691plug:ThreePointSevenFivePercentOfConvertibleSeniorNotesMember2020-05-290001093691plug:ThreePointSevenFivePercentOfConvertibleSeniorNotesMember2020-05-180001093691plug:FivePointFivePercentOfConvertibleSeniorNotesMember2018-03-310001093691plug:EntityMayRedeemWithConsentOfHolderMemberplug:SevenPercentConvertibleSeniorNotesMember2024-03-202024-03-200001093691plug:SevenPercentConvertibleSeniorNotesMember2024-03-200001093691plug:ThreePointSevenFivePercentOfConvertibleSeniorNotesMember2024-03-202024-03-200001093691srt:MaximumMemberplug:UnderCertainCircumstancesResultingInIncreaseToConversionRateMemberplug:SevenPercentConvertibleSeniorNotesMember2024-03-202024-03-200001093691plug:ThreePointSevenFivePercentOfConvertibleSeniorNotesMember2024-03-122024-03-120001093691plug:ThreePointSevenFivePercentOfConvertibleSeniorNotesMember2024-03-012024-03-310001093691plug:SevenPercentConvertibleSeniorNotesMember2023-01-012023-03-310001093691plug:ServicesPerformedOnFuelCellSystemsAndRelatedInfrastructureMember2024-01-012024-03-310001093691plug:SalesOfEquipmentAndRelatedInfrastructureMember2024-01-012024-03-310001093691plug:PowerPurchaseAgreementsMember2024-01-012024-03-310001093691plug:OtherProductAndServicesMember2024-01-012024-03-310001093691plug:FuelDeliveredToCustomersAndRelatedEquipmentMember2024-01-012024-03-310001093691plug:ServicesPerformedOnFuelCellSystemsAndRelatedInfrastructureMember2023-01-012023-03-310001093691plug:SalesOfEquipmentAndRelatedInfrastructureMember2023-01-012023-03-310001093691plug:PowerPurchaseAgreementsMember2023-01-012023-03-310001093691plug:OtherProductAndServicesMember2023-01-012023-03-310001093691plug:FuelDeliveredToCustomersAndRelatedEquipmentMember2023-01-012023-03-310001093691plug:ThreePointSevenFivePercentOfConvertibleSeniorNotesMember2023-12-310001093691plug:ThreePointSevenFivePercentOfConvertibleSeniorNotesMember2024-03-310001093691plug:SevenPercentConvertibleSeniorNotesMember2024-03-310001093691plug:TwoCustomersMemberus-gaap:RevenueFromContractWithCustomerMemberus-gaap:CustomerConcentrationRiskMember2024-01-012024-03-310001093691plug:ThreeCustomersMemberus-gaap:AccountsReceivableMemberus-gaap:CustomerConcentrationRiskMember2024-01-012024-03-310001093691plug:OneCustomersMemberus-gaap:AccountsReceivableMemberus-gaap:CustomerConcentrationRiskMember2023-01-012023-12-310001093691plug:TwoCustomersMemberus-gaap:RevenueFromContractWithCustomerMemberus-gaap:CustomerConcentrationRiskMember2023-01-012023-03-310001093691us-gaap:TreasuryStockCommonMember2024-03-310001093691us-gaap:CommonStockMember2024-03-310001093691us-gaap:TreasuryStockCommonMember2023-12-310001093691us-gaap:CommonStockMember2023-12-310001093691us-gaap:TreasuryStockCommonMember2023-03-310001093691us-gaap:CommonStockMember2023-03-310001093691us-gaap:TreasuryStockCommonMember2022-12-310001093691us-gaap:CommonStockMember2022-12-310001093691srt:MaximumMemberplug:AmazonTransactionAgreement2022Member2022-08-240001093691plug:AmazonTransactionAgreement2022Member2022-08-240001093691srt:MaximumMemberplug:WarrantIssuedWithWalmartStoresIncTransactionAgreementInJuly2017Member2017-07-200001093691plug:WarrantIssuedWithWalmartStoresIncTransactionAgreementInJuly2017Member2017-07-200001093691srt:MaximumMemberplug:WarrantIssuedWithAmazon.comIncTransactionAgreementInApril2017Member2017-04-040001093691plug:WarrantIssuedWithAmazon.comIncTransactionAgreementInApril2017Member2017-04-040001093691plug:WarrantIssuedWithWalmartStoresIncTransactionAgreementInJuly2017Memberplug:WarrantsTranchesOneAndTwoMember2017-07-2000010936912022-12-310001093691srt:MaximumMemberplug:BusinessCombinationOneMemberus-gaap:FairValueInputsLevel3Memberplug:ContingentConsiderationMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:MeasurementInputDiscountRateMemberplug:ValuationTechniqueScenarioBasedMethodMember2024-03-310001093691srt:MinimumMemberplug:BusinessCombinationOneMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:MeasurementInputDiscountRateMemberplug:ValuationTechniqueScenarioBasedMethodMember2024-03-310001093691srt:MinimumMemberplug:BusinessCombinationOneMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:MeasurementInputCreditSpreadMemberplug:ValuationTechniqueScenarioBasedMethodMember2024-03-310001093691srt:MaximumMemberplug:BusinessCombinationOneMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:MeasurementInputCreditSpreadMemberplug:ValuationTechniqueScenarioBasedMethodMember2024-03-310001093691srt:MinimumMemberplug:ContingentConsiderationMemberus-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:MeasurementInputDiscountRateMember2023-12-310001093691srt:MaximumMemberplug:ContingentConsiderationMemberus-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:MeasurementInputDiscountRateMember2023-12-310001093691plug:ContingentConsiderationMemberus-gaap:MeasurementInputCreditSpreadMember2023-12-310001093691us-gaap:FairValueInputsLevel3Memberplug:ContingentConsiderationMemberus-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:FairValueMeasurementsRecurringMemberplug:ValuationTechniqueScenarioBasedMethodMember2024-03-310001093691us-gaap:FairValueInputsLevel3Memberus-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:FairValueMeasurementsRecurringMemberplug:ValuationTechniqueScenarioBasedMethodMember2024-03-310001093691us-gaap:EstimateOfFairValueFairValueDisclosureMemberplug:ValuationTechniqueScenarioBasedMethodMember2023-12-310001093691plug:JouleProcessingLlcMember2022-01-140001093691plug:FramesHoldingB.v.Memberplug:ContingentConsiderationMemberus-gaap:EstimateOfFairValueFairValueDisclosureMember2021-12-310001093691plug:UnitedHydrogenGroupIncMemberplug:ContingentConsiderationMemberus-gaap:EstimateOfFairValueFairValueDisclosureMember2020-12-310001093691plug:GinerElxIncMemberplug:ContingentConsiderationMemberus-gaap:EstimateOfFairValueFairValueDisclosureMember2020-12-310001093691plug:FramesHoldingB.v.Memberplug:ContingentConsiderationMemberus-gaap:EstimateOfFairValueFairValueDisclosureMember2024-01-012024-03-310001093691us-gaap:WarrantMember2024-01-012024-03-310001093691us-gaap:RestrictedStockMember2024-01-012024-03-310001093691us-gaap:EmployeeStockOptionMember2024-01-012024-03-310001093691us-gaap:ConvertibleNotesPayableMember2024-01-012024-03-310001093691us-gaap:WarrantMember2023-01-012023-03-310001093691us-gaap:RestrictedStockMember2023-01-012023-03-310001093691us-gaap:EmployeeStockOptionMember2023-01-012023-03-310001093691us-gaap:ConvertibleNotesPayableMember2023-01-012023-03-310001093691plug:SevenPercentConvertibleSeniorNotesMember2024-01-012024-03-310001093691us-gaap:SellingGeneralAndAdministrativeExpensesMember2024-01-012024-03-310001093691us-gaap:RestrictedStockMember2024-01-012024-03-310001093691us-gaap:ResearchAndDevelopmentExpenseMember2024-01-012024-03-310001093691us-gaap:CostOfSalesMember2024-01-012024-03-310001093691plug:StockIncentivePlan2011And2021Member2024-01-012024-03-310001093691plug:RestrictedCommonUnitsBasedOnPerformanceMember2024-01-012024-03-310001093691plug:NonEmployeeDirectorMember2024-01-012024-03-310001093691us-gaap:SellingGeneralAndAdministrativeExpensesMember2023-01-012023-03-310001093691us-gaap:RestrictedStockMember2023-01-012023-03-310001093691us-gaap:ResearchAndDevelopmentExpenseMember2023-01-012023-03-310001093691us-gaap:CostOfSalesMember2023-01-012023-03-310001093691plug:StockOptionsVestingBasedOnServiceMember2023-01-012023-03-310001093691plug:StockOptionsVestingBasedOnPerformanceMember2023-01-012023-03-310001093691plug:StockIncentivePlan2011And2021Member2023-01-012023-03-310001093691plug:NonEmployeeDirectorMember2023-01-012023-03-310001093691us-gaap:TechnologyBasedIntangibleAssetsMember2024-01-012024-03-310001093691plug:DryStackElectrolyzerTechnologyMember2024-01-012024-03-310001093691plug:CustomerRelationshipsTradeNameOtherMember2024-01-012024-03-310001093691us-gaap:TechnologyBasedIntangibleAssetsMember2023-01-012023-12-310001093691plug:DryStackElectrolyzerTechnologyMember2023-01-012023-12-310001093691plug:CustomerRelationshipsTradeNameOtherMember2023-01-012023-12-310001093691plug:SalesOfFuelCellSystemsMember2024-03-310001093691plug:SalesOfFuelCellSystemsMember2023-12-310001093691plug:TrancheOneOfWarrantIssuedWithAmazon.comIncTransactionAgreementInApril2017Memberplug:WarrantIssuedTrancheTwoMember2024-03-310001093691plug:TrancheOneOfWarrantIssuedWithAmazon.comIncTransactionAgreementInApril2017Memberplug:WarrantIssuedTrancheOneMember2024-03-310001093691plug:AmazonTransactionAgreement2022Memberplug:WarrantIssuedTrancheThreeMember2024-03-310001093691plug:AmazonTransactionAgreement2022Memberus-gaap:MeasurementInputExpectedTermMemberplug:WarrantIssuedTrancheFourMember2024-01-012024-03-310001093691plug:WarrantIssuedWithWalmartStoresIncTransactionAgreementInJuly2017Memberus-gaap:MeasurementInputExpectedTermMemberplug:WarrantIssuedTrancheThreeMember2023-10-302023-10-300001093691plug:AmazonTransactionAgreement2022Memberus-gaap:MeasurementInputExpectedTermMemberplug:WarrantsTranchesOneThroughThreeMember2022-08-242022-08-240001093691plug:WarrantIssuedWithWalmartStoresIncTransactionAgreementInJuly2017Memberus-gaap:MeasurementInputExpectedTermMemberplug:WarrantsTranchesOneAndTwoMember2019-01-012019-01-010001093691us-gaap:CommonStockMember2024-01-012024-03-310001093691us-gaap:CommonStockMember2023-01-012023-03-310001093691us-gaap:ForwardContractsMember2018-03-012018-03-310001093691plug:StockOptionsVestingBasedOnServiceMember2024-01-012024-03-310001093691plug:StockOptionsVestingBasedOnServiceMember2023-01-012023-12-310001093691plug:StockOptionsVestingBasedOnPerformanceMember2023-01-012023-12-310001093691plug:StockOptionsVestingBasedOnServiceMember2024-03-310001093691plug:StockOptionsVestingBasedOnServiceMember2023-12-310001093691plug:AmazonTransactionAgreement2022Member2024-01-012024-03-310001093691plug:ServicesPerformedOnFuelCellSystemsAndRelatedInfrastructureMembersrt:MinimumMember2024-01-012024-03-310001093691plug:ServicesPerformedOnFuelCellSystemsAndRelatedInfrastructureMembersrt:MaximumMember2024-01-012024-03-310001093691plug:SalesOfFuelCellSystemsMembersrt:MinimumMember2024-01-012024-03-310001093691plug:SaleOfElectrolyzersMembersrt:MinimumMember2024-01-012024-03-310001093691plug:SaleOfElectrolyzersMembersrt:MaximumMember2024-01-012024-03-310001093691plug:PowerPurchaseAgreementsMembersrt:MinimumMember2024-01-012024-03-310001093691plug:PowerPurchaseAgreementsMembersrt:MaximumMember2024-01-012024-03-310001093691plug:FuelDeliveredToCustomersAndRelatedEquipmentMembersrt:MinimumMember2024-01-012024-03-310001093691plug:TrancheOneOfWarrantIssuedWithAmazon.comIncTransactionAgreementInApril2017Memberplug:AmazonCustomerMember2024-01-012024-03-310001093691plug:WarrantIssuedWithAmazonMember2024-01-012024-03-310001093691plug:WarrantIssuedWithAmazon.comIncTransactionAgreementInApril2017Member2024-01-012024-03-310001093691plug:WarrantIssuedWithAmazon.comIncTransactionAgreementInApril2017Member2023-01-012023-03-310001093691plug:AmazonTransactionAgreement2022Member2023-01-012023-03-310001093691plug:StockOptionsVestingBasedOnPerformanceMember2024-01-012024-03-310001093691plug:SevenPercentConvertibleSeniorNotesMember2024-03-202024-03-200001093691plug:ThreePointSevenFivePercentOfConvertibleSeniorNotesMemberus-gaap:CallOptionMember2020-05-182020-05-180001093691us-gaap:ForwardContractsMember2024-01-012024-03-310001093691us-gaap:ForwardContractsMember2023-01-012023-03-310001093691plug:AmazonTransactionAgreement2022Member2022-08-242022-08-240001093691plug:AtMarketIssuanceSalesAgreementMember2024-02-230001093691plug:R.baileyMemberplug:IfMarketCapitalizationIsNotLessThan1.0BillionMemberus-gaap:SubsequentEventMemberplug:AtMarketIssuanceSalesAgreementMember2024-06-010001093691plug:R.baileyMemberplug:IfMarketCapitalizationIsLessThan1.0BillionMemberus-gaap:SubsequentEventMemberplug:AtMarketIssuanceSalesAgreementMember2024-06-010001093691plug:SkPlugHyverseCoLtdMember2024-03-310001093691plug:HyviaMember2024-03-310001093691plug:SkPlugHyverseCoLtdMember2023-12-310001093691plug:HyviaMember2023-12-310001093691plug:SaleAndLeaseBackTransactionSaleOfFutureRevenueDebtMember2023-12-310001093691plug:SaleAndLeaseBackFinancingMember2023-12-310001093691plug:SaleAndLeaseBackTransactionSaleOfFutureRevenueDebtMember2024-03-310001093691plug:SaleAndLeaseBackFinancingMember2024-03-310001093691plug:AmazonTransactionAgreement2022Memberplug:WarrantsTranchesOneThroughThreeMember2022-08-242022-08-240001093691us-gaap:AdditionalPaidInCapitalMember2024-01-012024-03-310001093691plug:WarrantIssuedWithWalmartStoresIncTransactionAgreementInJuly2017Member2024-01-012024-03-310001093691us-gaap:AdditionalPaidInCapitalMember2023-01-012023-03-310001093691plug:WarrantIssuedWithWalmartStoresIncTransactionAgreementInJuly2017Member2023-01-012023-03-3100010936912023-03-310001093691plug:ThreePointSevenFivePercentOfConvertibleSeniorNotesMemberus-gaap:CallOptionMember2020-05-180001093691srt:MinimumMemberplug:SevenPercentConvertibleSeniorNotesMember2024-03-202024-03-200001093691srt:MaximumMemberplug:SevenPercentConvertibleSeniorNotesMember2024-03-202024-03-200001093691plug:SalesOfFuelCellSystemsMember2024-01-012024-03-3100010936912023-01-012023-12-310001093691plug:SalesOfFuelCellSystemsMember2023-01-012023-12-310001093691plug:TwoCustomersMemberus-gaap:RevenueFromContractWithCustomerMemberus-gaap:CustomerConcentrationRiskMember2024-03-310001093691plug:ThreeCustomersMemberus-gaap:AccountsReceivableMemberus-gaap:CustomerConcentrationRiskMember2024-03-310001093691plug:OneCustomersMemberus-gaap:AccountsReceivableMemberus-gaap:CustomerConcentrationRiskMember2023-12-310001093691plug:TwoCustomersMemberus-gaap:RevenueFromContractWithCustomerMemberus-gaap:CustomerConcentrationRiskMember2023-03-310001093691plug:WarrantIssuedWithWalmartStoresIncTransactionAgreementInJuly2017Member2023-03-310001093691plug:AmazonTransactionAgreement2022Member2023-03-310001093691plug:WarrantIssuedWithWalmartStoresIncTransactionAgreementInJuly2017Member2024-03-310001093691plug:WarrantIssuedWithAmazon.comIncTransactionAgreementInApril2017Member2024-03-310001093691plug:AmazonTransactionAgreement2022Member2024-03-310001093691plug:WarrantIssuedWithWalmartStoresIncTransactionAgreementInJuly2017Member2023-12-310001093691plug:AmazonTransactionAgreement2022Member2023-12-310001093691plug:AmazonTransactionAgreement2022Memberplug:WarrantIssuedTrancheTwoMember2023-06-300001093691plug:WarrantIssuedWithAmazon.comIncTransactionAgreementInApril2017Member2023-03-310001093691plug:AmazonTransactionAgreement2022Memberus-gaap:ShareBasedCompensationAwardTrancheTwoMember2022-08-240001093691plug:AmazonTransactionAgreement2022Memberplug:WarrantsTranchesOneThroughThreeMember2022-08-240001093691plug:AmazonTransactionAgreement2022Memberplug:WarrantIssuedTrancheOneMember2022-08-240001093691plug:AmazonTransactionAgreement2022Memberplug:WarrantIssuedTrancheFourMember2022-08-240001093691plug:WarrantIssuedWithWalmartStoresIncTransactionAgreementInJuly2017Memberplug:WarrantIssuedTrancheThreeMember2017-07-200001093691plug:WarrantIssuedWithWalmartStoresIncTransactionAgreementInJuly2017Memberplug:WalmartCustomerMember2024-01-012024-03-310001093691plug:WarrantIssuedWithAmazon.comIncTransactionAgreementInApril2017Memberplug:AmazonCustomerMember2024-01-012024-03-310001093691plug:WarrantIssuedWithWalmartStoresIncTransactionAgreementInJuly2017Memberplug:WalmartCustomerMember2023-01-012023-12-310001093691plug:WarrantIssuedWithAmazon.comIncTransactionAgreementInApril2017Memberplug:AmazonCustomerMember2023-01-012023-03-310001093691plug:AmazonTransactionAgreement2022Memberplug:WarrantIssuedTrancheFourMember2022-08-242022-08-240001093691plug:WarrantIssuedWithAmazon.comIncTransactionAgreementInApril2017Memberplug:WarrantIssuedTrancheThreeMember2020-07-202020-07-200001093691plug:AmazonTransactionAgreement2022Memberus-gaap:ShareBasedCompensationAwardTrancheTwoMember2022-08-242022-08-240001093691plug:AmazonTransactionAgreement2022Memberplug:WarrantIssuedTrancheThreeMember2022-08-242022-08-240001093691plug:WarrantIssuedWithWalmartStoresIncTransactionAgreementInJuly2017Memberplug:WarrantsTranchesOneAndTwoMember2017-07-202017-07-200001093691plug:WarrantIssuedWithWalmartStoresIncTransactionAgreementInJuly2017Memberplug:WarrantIssuedTrancheThreeMember2017-07-202017-07-200001093691plug:JouleProcessingLlcMember2024-01-012024-03-310001093691plug:AlloyCustomProductsLlcAndWesmorCryogenicsLlcMember2024-01-012024-03-310001093691plug:AtMarketIssuanceSalesAgreementMember2024-02-232024-02-230001093691plug:ThreePointSevenFivePercentOfConvertibleSeniorNotesMember2024-01-012024-03-310001093691plug:ThreePointSevenFivePercentOfConvertibleSeniorNotesMember2023-01-012023-03-3100010936912023-01-012023-03-3100010936912024-03-3100010936912023-12-3100010936912024-05-0700010936912024-01-012024-03-31plug:segmentxbrli:sharesiso4217:USDplug:Dplug:customeriso4217:USDxbrli:sharesxbrli:pureplug:Plantplug:installmentiso4217:EUR

.

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 March 31, 2024

OR

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 $.01 per share, outstanding as of May 7, 2024 was 742,559,081 shares.

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

35

Item 3 – Quantitative and Qualitative Disclosures About Market Risk

54

Item 4 – Controls and Procedures

54

PART II. OTHER INFORMATION

Item 1 – Legal Proceedings

55

Item 1A – Risk Factors

55

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

56

Item 3 – Defaults Upon Senior Securities

56

Item 4 – Mine Safety Disclosures

56

Item 5 – Other Information

56

Item 6 – Exhibits

57

Signatures

58

2

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)

    

March 31,

    

December 31,

   

2024

   

2023

Assets

Current assets:

Cash and cash equivalents

$

172,873

$

135,033

Restricted cash

219,616

216,552

Accounts receivable, net of allowance of $7,351 at March 31, 2024 and $8,798 at December 31, 2023

 

148,822

 

243,811

Inventory, net

 

975,898

 

961,253

Contract assets

129,994

126,248

Prepaid expenses and other current assets

 

119,370

 

104,068

Total current assets

 

1,766,573

 

1,786,965

Restricted cash

 

775,595

 

817,559

Property, plant, and equipment, net

1,453,991

 

1,436,177

Right of use assets related to finance leases, net

56,131

57,281

Right of use assets related to operating leases, net

389,201

399,969

Equipment related to power purchase agreements and fuel delivered to customers, net

115,109

 

111,261

Contract assets

30,380

29,741

Intangible assets, net

 

183,325

 

188,886

Investments in non-consolidated entities and non-marketable equity securities

66,691

63,783

Other assets

 

10,310

 

11,116

Total assets

$

4,847,306

$

4,902,738

Liabilities and Stockholders’ Equity

Current liabilities:

Accounts payable

$

285,546

$

257,828

Accrued expenses

 

154,814

 

200,544

Deferred revenue and other contract liabilities

 

179,902

 

204,139

Operating lease liabilities

65,250

63,691

Finance lease liabilities

9,602

9,441

Finance obligations

85,175

84,031

Current portion of long-term debt

2,786

2,716

Contingent consideration, loss accrual for service contracts, and other current liabilities

 

128,369

 

142,410

Total current liabilities

 

911,444

 

964,800

Deferred revenue and other contract liabilities

 

75,900

 

84,163

Operating lease liabilities

278,220

292,002

Finance lease liabilities

33,673

36,133

Finance obligations

 

264,610

 

284,363

Convertible senior notes, net

209,802

195,264

Long-term debt

1,013

1,209

Contingent consideration, loss accrual for service contracts, and other liabilities

 

143,522

 

146,679

Total liabilities

 

1,918,184

 

2,004,613

Stockholders’ equity:

Common stock, $.01 par value per share; 1,500,000,000 shares authorized; Issued (including shares in treasury): 705,604,549 at March 31, 2024 and 625,305,025 at December 31, 2023

 

7,057

 

6,254

Additional paid-in capital

 

7,823,209

 

7,494,685

Accumulated other comprehensive loss

 

(9,078)

 

(6,802)

Accumulated deficit

 

(4,785,520)

 

(4,489,744)

Less common stock in treasury: 19,242,215 at March 31, 2024 and 19,169,366 at December 31, 2023

(106,546)

(106,268)

Total stockholders’ equity

 

2,929,122

 

2,898,125

Total liabilities and stockholders’ equity

$

4,847,306

$

4,902,738

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

3

Plug Power Inc. and Subsidiaries

Condensed Consolidated Statements of Operations

(In thousands, except share and per share amounts)

(Unaudited)

Three months ended

March 31

2024

   

2023

Net revenue:

Sales of equipment, related infrastructure and other

$

68,295

$

182,094

Services performed on fuel cell systems and related infrastructure

13,023

9,097

Power purchase agreements

18,304

 

7,937

Fuel delivered to customers and related equipment

18,286

 

10,142

Other

2,356

1,016

Net revenue

120,264

210,286

Cost of revenue:

Sales of equipment, related infrastructure and other

135,125

 

158,320

Services performed on fuel cell systems and related infrastructure

12,957

 

12,221

Provision for loss contracts related to service

15,745

6,889

Power purchase agreements

55,228

 

46,816

Fuel delivered to customers and related equipment

58,573

 

54,501

Other

1,711

 

935

Total cost of revenue

279,339

 

279,682

Gross loss

(159,075)

 

(69,396)

Operating expenses:

Research and development

25,280

26,535

Selling, general and administrative

77,959

104,016

Restructuring

6,011

Impairment

284

1,083

Change in fair value of contingent consideration

(9,200)

8,769

Total operating expenses

100,334

140,403

Operating loss

(259,409)

(209,799)

Interest income

9,277

 

17,632

Interest expense

(11,325)

(10,650)

Other expense, net

(6,996)

 

(4,771)

Realized loss on investments, net

(1)

Change in fair value of equity securities

5,075

Loss on equity method investments

(13,113)

(5,317)

Loss on extinguishment of convertible senior notes

(14,047)

Loss before income taxes

$

(295,613)

$

(207,831)

Income tax (expense)/benefit

(163)

 

1,270

Net loss

$

(295,776)

$

(206,561)

Net loss per share:

Basic and diluted

$

(0.46)

$

(0.35)

Weighted average number of common stock outstanding

641,256,134

 

589,205,165

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

4

Plug Power Inc. and Subsidiaries

Condensed Consolidated Statements of Comprehensive Loss

(In thousands)

(Unaudited)

Three months ended

March 31,

    

2024

    

2023

Net loss

$

(295,776)

$

(206,561)

Other comprehensive (loss)/income:

Foreign currency translation (loss)/gain

 

(2,276)

 

1,659

Change in net unrealized gain on available-for-sale securities

5,311

Comprehensive loss, net of tax

$

(298,052)

$

(199,591)

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

5

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

 

 

 

(2,276)

 

 

 

(2,276)

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

$

(9,078)

 

19,242,215

$

(106,546)

$

(4,785,520)

$

2,929,122

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

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

6

Plug Power Inc. and Subsidiaries

Condensed Consolidated Statements of Cash Flows

(In thousands)

(Unaudited)

Three months ended March 31,

   

2024

2023

Operating activities

Net loss

$

(295,776)

$

(206,561)

Adjustments to reconcile net loss to net cash used in operating activities:

Depreciation of long-lived assets

 

16,606

 

9,789

Amortization of intangible assets

 

4,725

 

4,959

Lower of cost or net realizable value inventory adjustment and provision for excess and obsolete inventory

39,675

2,009

Stock-based compensation

 

13,704

 

43,302

Loss on extinguishment of convertible senior notes

14,047

(Recoveries)/provision for losses on accounts receivable

(1,447)

237

Amortization of debt issuance costs and discount on convertible senior notes

330

621

Provision for common stock warrants

4,495

14,175

Deferred income tax expense/(benefit)

163

(947)

Impairment

284

1,083

Loss on service contracts

3,809

221

Fair value adjustment to contingent consideration

(9,200)

8,769

Net realized loss on investments

1

Accretion of premium on available-for-sale securities

(5,945)

Lease origination costs

(1,331)

(2,660)

Change in fair value for equity securities

(5,075)

Loss on equity method investments

13,113

5,317

Changes in operating assets and liabilities that provide (use) cash:

Accounts receivable

 

96,436

 

1,493

Inventory

 

(38,312)

 

(131,581)

Contract assets

1,356

(14,677)

Prepaid expenses and other assets

 

(14,496)

 

(5,522)

Accounts payable, accrued expenses, and other liabilities

 

25,755

 

13,821

Payments of contingent consideration

(9,164)

Deferred revenue and other contract liabilities

 

(32,500)

 

(9,748)

Net cash used in operating activities

 

(167,728)

 

(276,919)

Investing activities

Purchases of property, plant and equipment

 

(92,621)

 

(168,565)

Purchases of equipment related to power purchase agreements and equipment related to fuel delivered to customers

(6,072)

(11,389)

Proceeds from maturities of available-for-sale securities

315,827

Cash paid for non-consolidated entities and non-marketable equity securities

(21,891)

(40,077)

Net cash (used in)/provided by investing activities

 

(120,584)

 

95,796

Financing activities

Payments of contingent consideration

(836)

(2,000)

Proceeds from public and private offerings, net of transaction costs

305,346

Payments of tax withholding on behalf of employees for net stock settlement of stock-based compensation

(278)

(2,590)

Proceeds from exercise of stock options

 

41

 

674

Principal payments on long-term debt

(300)

(330)

Proceeds from finance obligations

27,927

Principal repayments of finance obligations and finance leases

(20,908)

(16,500)

Net cash provided by financing activities

 

283,065

 

7,181

Effect of exchange rate changes on cash

 

4,187

 

(2,096)

Increase/(decrease) in cash and cash equivalents

 

37,840

 

(215,769)

(Decrease)/increase in restricted cash

(38,900)

39,731

Cash, cash equivalents, and restricted cash beginning of period

 

1,169,144

 

1,549,344

Cash, cash equivalents, and restricted cash end of period

$

1,168,084

$

1,373,306

Supplemental disclosure of cash flow information

Cash paid for interest, net of capitalized interest of $2.1 million and $2.0 million

$

9,111

$

7,869

Summary of non-cash activity

Recognition of right of use asset - finance leases

$

$

4,018

Recognition of right of use asset - operating leases

2,913

22,470

Accrued debt extinguishment costs, cash to be paid in subsequent period

1,245

Net transfers between inventory and long-lived assets

16,008

441

Accrued purchase of fixed assets, cash to be paid in subsequent period

113,449

65,701

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

7

1. Nature of Operations

Plug Power Inc. (the “Company”, “Plug”, “we” or “our”) is facilitating the paradigm shift to an increasingly electrified world by innovating cutting-edge hydrogen and fuel cell solutions. While we continue to develop commercially viable hydrogen and fuel cell product solutions, we have expanded our offerings to support a variety of commercial operations that can be powered with clean hydrogen. We provide electrolyzers that allow customers — such as refineries, producers of chemicals, steel, fertilizer and commercial refueling stations — to generate hydrogen on-site. We are focusing our efforts on (a) industrial mobility applications, including electric forklifts and electric industrial vehicles, at multi shift high volume manufacturing and high throughput distribution sites where we believe our products and services provide a unique combination of productivity, flexibility, and environmental benefits; (b) production of hydrogen; and (c) stationary power systems that will support critical operations, such as data centers, microgrids, and generation facilities, in either a backup power or continuous power role, and replace batteries, diesel generators or the grid for telecommunication logistics, transportation, and utility customers. Plug expects to support these products and customers with an ecosystem of vertically integrated products that produce, transport, store and handle, dispense, and use hydrogen for mobility and power applications.

Liquidity and Capital Resources

The Company’s working capital was $855.1 million as of March 31, 2024, which included unrestricted cash and cash equivalents of $172.9 million and restricted cash of $1.0 billion. On January 17, 2024, the Company entered into the At Market Issuance Sales Agreement (the “Original ATM Agreement”) with B. Riley Securities, Inc. (“B. Riley”), pursuant to which the Company may, from time to time, offer and sell through or to B. Riley, as sales agent or principal, shares of the Company’s common stock, having an aggregate offering price of up to $1.0 billion. As of February 23, 2024, the Company had $697.9 million remaining authorized for issuance under the Original ATM Agreement. On February 23, 2024, the Company and B. Riley entered into Amendment No. 1 to the Original ATM Agreement (the “Amendment” and, together with the Original ATM Agreement, the “ATM Agreement”) to increase the aggregate offering price of shares of the Company’s common stock available for future issuance under the Original ATM Agreement to $1.0 billion. Under the ATM Agreement, for a period of 18 months, the Company has the right at its sole discretion to direct B. Riley to act on a principal basis and purchase directly from the Company up to $11.0 million of shares of its common stock on any trading day (the “Maximum Commitment Advance Purchase Amount”) and up to $55.0 million of shares in any calendar week (the “Maximum Commitment Advance Purchase Amount Cap”). On and after June 1, 2024, so long as the Company’s market capitalization is no less than $1.0 billion, the Maximum Commitment Advance Purchase Amount will remain $11.0 million and the Maximum Commitment Advance Purchase Amount Cap will remain $55.0 million. If the Company’s market capitalization is less than $1.0 billion on and after June 1, 2024, the Maximum Commitment Advance Purchase Amount will be decreased to $10.0 million and the Maximum Commitment Advance Purchase Amount Cap will be decreased to $30.0 million. Through the date of filing of the Quarterly Report on Form 10-Q, the Company sold 135,354,467 shares of common stock at a weighted-average sales price of $3.38 per share for gross proceeds of $457.1 million with related issuance costs of $6.5 million. The Company believes that its working capital and cash position, together with its right to direct B. Riley to purchase shares directly from the Company under the ATM Agreement, will be sufficient to fund its on-going operations for a period of at least 12 months subsequent to the issuance of the accompanying condensed consolidated financial statements.

2. Summary of Significant Accounting Policies

Principles of Consolidation

The unaudited interim condensed consolidated financial statements include the financial statements of the Company and its wholly-owned subsidiaries. Intercompany balances and transactions have been eliminated in consolidation. In addition, we include our share of the results of our joint ventures with Renault SAS (“Renault”) named HyVia SAS, a French société par actions simplifiée (“HyVia”), AccionaPlug S.L. (“AccionaPlug”), and SK Plug Hyverse Co., Ltd. (“SK Plug Hyverse”), and our investment in Clean H2 Infra Fund, using the equity method based on our economic ownership interest and our ability to exercise significant influence over the operating and financial decisions of HyVia, AccionaPlug, SK Plug Hyverse and Clean H2 Infra Fund.

8

Interim Financial Statements

The accompanying unaudited interim condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). In the opinion of management, all adjustments, which consist solely of normal recurring adjustments, necessary to present fairly, in accordance with U.S. generally accepted accounting principles (“GAAP”), the financial position, results of operations and cash flows for all periods presented, have been made. The results of operations for the interim periods presented are not necessarily indicative of the results that may be expected for the full year.

Certain information and footnote disclosures normally included in annual consolidated financial statements prepared in accordance with GAAP have been condensed or omitted. These unaudited interim condensed consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2023 (the “2023 Form 10-K”).

The information presented in the accompanying unaudited interim condensed consolidated balance sheets as of December 31, 2023 has been derived from the Company’s 2023 audited consolidated financial statements.

The unaudited interim condensed consolidated financial statements contained herein should be read in conjunction with our 2023 Form 10-K.

Reclassification

Certain prior year amounts in the unaudited interim condensed consolidated statements of cash flows have been reclassified to conform to the current year presentation. These reclassifications had no effect on the reported results of operations.

Recent Accounting Pronouncements

Recently Adopted Accounting Guidance

There have been no significant changes in our reported financial position or results of operations and cash flows resulting from the adoption of new accounting pronouncements.

Recent Accounting Guidance Not Yet Effective

All issued but not yet effective accounting and reporting standards as of March 31, 2024 are either not applicable to the Company or are not expected to have a material impact on the Company.

3. Extended Maintenance Contracts

On a quarterly basis, we evaluate any potential losses related to our extended maintenance contracts for sales of equipment, related infrastructure and other that have been sold. The following table shows the roll forward of balances in

9

the accrual for loss contracts, including changes due to the provision for loss accrual, releases to service cost of sales, increase to loss accrual related to warrants, and foreign currency translation adjustment (in thousands):

Three months ended

Year ended

March 31, 2024

  

December 31, 2023

Beginning balance

$

137,853

$

81,066

Provision for loss accrual

15,111

85,375

Releases to service cost of sales

(11,936)

(29,713)

Increase to loss accrual related to customer warrants

634

971

Foreign currency translation adjustment

(93)

154

Ending balance

$

141,569

$

137,853

The Company increased its loss accrual to $141.6 million for the three months ended March 31, 2024 primarily due to continued cost increases of GenDrive labor, parts and related overhead coupled with new GenDrive contracts entered into requiring provisions to be set up. As a result, the Company increased its estimated projected costs.

4. Earnings Per Share

Basic earnings per common stock are computed by dividing net loss by the weighted average number of common stock outstanding during the reporting period. Since the Company is in a net loss position, all common stock equivalents would be considered anti-dilutive and are therefore not included in the determination of diluted earnings per share. Accordingly, basic and diluted loss per share are the same.

The potentially dilutive securities are summarized as follows:

At March 31,

    

2024

    

2023

Stock options outstanding (1)

36,384,062

 

27,479,533

Restricted stock and restricted stock units outstanding (2)

5,914,856

 

5,888,013

Common stock warrants (3)

78,561,263

85,879,175

Convertible Senior Notes (4)

44,661,605

 

39,170,766

Number of dilutive potential shares of common stock

165,521,786

 

158,417,487

(1)During the three months ended March 31, 2024 and 2023, the Company granted options for 313,000 and 94,550 shares of common stock, respectively.

(2)During the three months ended March 31, 2024 and 2023, the Company granted 17,000 and 94,550 shares of restricted stock and restricted stock units, respectively.

(3)In August 2022, the Company issued a warrant to acquire up to 16,000,000 shares of the Company’s common stock as part of a transaction agreement with Amazon.com, Inc. (“Amazon”), subject to certain vesting events, as described in Note 11, “Warrant Transaction Agreements”. The warrant had not been exercised as of March 31, 2024 and 2023, respectively.

In April 2017, the Company issued a warrant to acquire up to 55,286,696 shares of the Company’s common stock as part of a transaction agreement with Amazon, subject to certain vesting events, as described in Note 11, “Warrant Transaction Agreements”. The warrant had been exercised with respect to 34,917,912 and 27,600,000 shares of the Company’s common stock as of March 31, 2024 and 2023, respectively.

In July 2017, the Company issued a warrant to acquire up to 55,286,696 shares of the Company’s common stock as part of a transaction agreement with Walmart, Inc. (“Walmart”), subject to certain vesting events, as described in Note 11, “Warrant Transaction Agreements”. The warrant had been exercised with respect to 13,094,217 shares of the Company’s common stock as of March 31, 2024 and 2023.

10

(4)In May 2020, the Company issued $212.5 million in aggregate principal amount of the 3.75% Convertible Senior Notes due 2025 (the “3.75% Convertible Senior Notes”) as described in Note 9, “Convertible Senior Notes”. There were no conversions of the 3.75% Convertible Senior Notes for the three months ended March 31, 2024 and 2023.

In March 2024, the Company exchanged $138.8 million in aggregate principal amount of the 3.75% Convertible Senior Notes for $140.4 million in aggregate principal amount of the 7.00% Convertible Senior Notes due 2026 (the “7.00% Convertible Senior Notes”) as described in Note 9, “Convertible Senior Notes”. There were no conversions of the 7.00% Convertible Senior Notes for the three months ended March 31, 2024 and 2023.

5. Inventory

Inventory as of March 31, 2024 and December 31, 2023 consisted of the following (in thousands):

    

March 31,

    

December 31,

2024

2023

Raw materials and supplies - production locations

$

543,196

$

564,818

Raw materials and supplies - customer locations

31,142

20,751

Work-in-process

 

156,146

 

149,574

Finished goods

 

245,414

 

226,110

Inventory

$

975,898

$

961,253

Inventory is primarily comprised of raw materials, work-in-process, and finished goods. The Company had inventory reserves made up of excess and obsolete items and related lower of cost or net realizable value adjustments of $117.7 million and $85.2 million as of March 31, 2024 and December 31, 2023, respectively.

6. Property, Plant and Equipment

Property, plant and equipment at March 31, 2024 and December 31, 2023 consisted of the following (in thousands):

March 31,

December 31,

2024

2023

Land

$

5,951

$

6,049

Construction in progress

852,555

1,109,896

Hydrogen production plants

351,390

77,107

Building and leasehold improvements

96,850

95,229

Software, machinery, and equipment

 

243,198

 

229,352

Property, plant and equipment

 

1,549,944

 

1,517,633

Less: accumulated depreciation

 

(95,953)

 

(81,456)

Property, plant and equipment, net

$

1,453,991

$

1,436,177

Construction in progress is primarily comprised of construction of three hydrogen production plants. Completed assets are transferred to their respective asset classes, and depreciation begins when an asset is ready for its intended use. Interest on outstanding debt is capitalized during periods of capital asset construction and amortized over the useful lives of the related assets. During the three months ended March 31, 2024 and 2023, the Company capitalized $2.1 million and $2.0 million of interest, respectively.

Depreciation expense related to property, plant and equipment was $11.6 million and $5.5 million for the three months ended March 31, 2024 and 2023, respectively.

11

7. Intangible Assets

The gross carrying amount and accumulated amortization of the Company’s acquired identifiable intangible assets as of March 31, 2024 were as follows (in thousands):

Weighted Average

Gross Carrying

Accumulated

Amortization Period

Amount

Amortization

Total

Acquired technology

 

14 years

 

$

102,880

$

(21,979)

$

80,901

Dry stack electrolyzer technology

10 years

29,000

(6,042)

22,958

Customer relationships, trade name and other

13 years

 

103,002

(23,536)

79,466

$

234,882

$

(51,557)

$

183,325

The gross carrying amount and accumulated amortization of the Company’s acquired identifiable intangible assets as of December 31, 2023 were as follows (in thousands):

Weighted Average

Gross Carrying

Accumulated

Amortization Period

Amount

Amortization

Total

Acquired technology

 

14 years

$

103,060

$

(20,204)

$

82,856

Dry stack electrolyzer technology

10 years

29,000

(5,317)

23,683

Customer relationships, trade name and other

 

13 years

 

103,981

(21,634)

 

82,347

$

236,041

$

(47,155)

$

188,886

The change in the gross carrying amount of the acquired technology and customer relationships, trade name and other from December 31, 2023 to March 31, 2024 was due to changes in foreign currency translation.

Amortization expense for acquired identifiable intangible assets for the three months ended March 31, 2024 and 2023 was $4.4 million and $5.0 million, respectively.

The estimated amortization expense for subsequent years is as follows (in thousands):