Plug Power(PLUG)2025-03-03 21:48Financial Performance - For the year ended December 31, 2024, the company reported a net loss of approximately $2.1 billion, compared to $1.4 billion in 2023 and $724 million in 2022, with an accumulated deficit of $6.6 billion as of December 31, 2024[261]. - The company recorded an impairment charge of $949.3 million for the year ended December 31, 2024, compared to $269.5 million in 2023, due to unmet sales and margin projections[307]. - Interest income decreased by $25.1 million, or 45.0%, for the year ended December 31, 2024, primarily due to the sale of higher-yielding U.S. treasury securities[310]. - The Company had a loss on extinguishment of convertible senior notes and debt of $16.3 million for the year ended December 31, 2024, driven by the exchange of $138.8 million in convertible senior notes[316]. - The Company recognized an income tax benefit of $2.7 million for 2024, down from $7.4 million in 2023, primarily due to changes in valuation allowances[319]. Cash Flow and Financing Activities - The net cash used in operating activities decreased to $728.6 million in 2024 from $1.1 billion in 2023, primarily due to cash inflows related to accounts receivables and inventory[256]. - The company experienced a net cash outflow of $402.4 million from investing activities in 2024, a significant change from a cash inflow of $728.1 million in 2023, mainly due to a decrease in proceeds from sales and maturities of available-for-sale securities[257]. - Financing activities provided net cash of $983.2 million in 2024, a substantial increase from $6.1 million in 2023, driven by proceeds from the At Market Issuance Sales Agreement and convertible debentures[259]. - The company has an "at-the-market" equity offering program allowing for gross sales of up to $1.0 billion, with 219,835,221 shares issued at a weighted-average price of $3.08 per share for net proceeds of $666.9 million in 2024[263]. - The Company sold 219,835,221 shares of common stock at a weighted-average price of $3.08 per share, generating gross proceeds of $677.2 million during 2024[323]. Revenue and Sales Performance - Revenue from sales of equipment, related infrastructure and other decreased by $321.1 million, or 45.1%, to $390.3 million for the year ended December 31, 2024, compared to $711.4 million for the year ended December 31, 2023[285]. - Revenue from services performed on fuel cell systems and related infrastructure increased by $13.1 million, or 33.5%, to $52.2 million for the year ended December 31, 2024, compared to $39.1 million for the year ended December 31, 2023[286]. - Revenue from power purchase agreements increased by $14.1 million, or 22.1%, to $77.8 million for the year ended December 31, 2024, compared to $63.7 million for the year ended December 31, 2023[287]. - Revenue associated with fuel delivered to customers increased by $31.7 million, or 47.9%, to $97.9 million for the year ended December 31, 2024, compared to $66.2 million for the year ended December 31, 2023[289]. - The number of GenDrive units sold decreased to 3,119 units for the year ended December 31, 2024, down from 6,392 units sold during the year ended December 31, 2023[285]. Cost Management - Cost of revenue from sales of equipment, related infrastructure and other decreased by $69.5 million, or 9.1%, to $696.1 million for the year ended December 31, 2024, compared to $765.6 million for the year ended December 31, 2023[290]. - The cost of revenue related to sales of hydrogen infrastructure decreased by $82.3 million, with 15 hydrogen site installations during the year ended December 31, 2024, compared to 52 installations in the previous year[291]. - Cost of revenue related to cryogenic storage equipment and liquefiers decreased by $83.1 million, primarily due to product mix and fewer projects[292]. - The cost of revenue from sales of fuel cell systems decreased by $15.5 million, with 3,119 units sold during the year ended December 31, 2024, compared to 6,392 units sold in 2023[293]. - Selling, general and administrative expenses decreased by $46.4 million, or 11.0%, to $376.1 million for the year ended December 31, 2024, mainly due to stock compensation expense reductions[304]. Research and Development - Research and development expenses decreased by $36.5 million, or 32.1%, to $77.2 million for the year ended December 31, 2024, primarily due to headcount reductions[303]. Strategic Initiatives and Future Plans - The company is targeting expansion in Asia, Australia, Europe, the Middle East, and North America, with a focus on becoming a leader in the European hydrogen economy[254]. - The company has received a conditional commitment for a loan guarantee of up to $1.66 billion from the U.S. Department of Energy to finance development and construction projects[272]. - The 2025 Restructuring Plan is expected to yield significant annual savings, beginning in the second half of 2025, through workforce reduction and operational realignment[267]. - The company continues to diversify its supply chain to mitigate risks related to material availability and labor shortages[275]. Revenue Recognition and Accounting Policies - Revenue from sales of fuel cell systems, related infrastructure, and equipment includes GenDrive units and hydrogen fueling infrastructure, with significant contributions from these segments[417]. - The company recognizes revenue on electrolyzer systems and solutions at the point of control transfer, typically upon shipment or delivery, with revenue recognized over time in certain cases[420][421]. - Payments received from customers are recorded as deferred revenue until control is transferred, impacting the timing of revenue recognition[422][427]. - Revenue from services performed on fuel cell systems is recognized over time on a straight-line basis, reflecting the simultaneous consumption of benefits by customers[428]. - Revenue from power purchase agreements (PPAs) is recognized on a straight-line basis over the life of the agreements, aligning with customer consumption of services[430][431].