Skip to main content

COLONY — About a year after revealing it had made unintentional errors in its financial reporting to federal regulators over a period of years, fuel cell maker Plug Power has fired its accounting firm KPMG.

Plug Power’s audit committee, a subgroup of its board, voted on March 16 to fire KPMG in light of accounting issues that, when announced, sent Plug shares plummeting. Power. Shareholders also sued the company over it.

Plug Power, which seeks to become a leader in hydrogen fuel cells for vehicles, as well as to produce hydrogen by non-carbon methods, had told investors that problems with its financial accounting were due to a lack of “trained and knowledgeable” people. understand the complex renewable energy market in which the company is involved. It was unclear whether this meant his own employees or those of his accounting firm, or both.

Plug Power was forced to restate its multi-year financial results, a major black eye for any publicly traded company (PLUG: Nasdaq) whose shares are traded on an exchange, which operate under the theory that equity investors receive reliable information. about the companies they are dealing with.

The issues were entirely on paper, Plug Power said, and led the company to slightly underreport its earnings. The issues had more to do with how the company’s finances were presented to investors, including inventory, operating expenses and how it calculated fuel bills.

Plug Power makes hydrogen fuel cells that are used in forklifts that move inventory through the warehouses of companies like Amazon and Walmart, though it has set its sights on trucks and even planes for this technology.

Plug Power has since resolved the accounting issues and reported no additional issues.

The company has since hired Deloitte & Touche as its new accounting firm after reviewing a number of companies for the position.