PLUG Power (PLUG) risk factors, FY2024 10-K

Other

1. 01We may be unable to successfully execute and operate our hydrogen production projects and such projects may cost more and take longer to complete than we expect
2. 02Our products and performance depend largely on the availability of hydrogen and recent insufficient supplies of hydrogen could negatively affect our sales and deployment of our products and services
3. 03Inflationary trends, economic uncertainty, market trends, political instability, and other conditions affecting the profitability and financial stability of us and our customers could negatively impact our sales growth and results of operations
4. 04Volatile commodity prices and shortages may adversely affect our gross margins and financial results
5. 05Our ability to source parts and raw materials from our suppliers could be disrupted or delayed in our supply chain which could adversely affect our results of operations
6. 06We face risks associated with our plans to market, distribute, and service our products internationally
7. 07Our investments in joint ventures may involve numerous risks that may affect the ability of such joint ventures to make distributions to us
8. 08Our products and services face intense competition
9. 09Our ability to achieve our business objectives and to continue to meet our obligations is dependent upon our ability to maintain a sufficient level of liquidity
10. 10and expenses and may have other consequences, such as attrition beyond our planned reduction in workforce or a negative effect on employee morale, productivity or ability to attract highly skilled employees
11. 11We have incurred losses and anticipate continuing to incur losses
12. 12We will have to raise additional capital through public or private equity or debt transactions and/or complete one or more strategic transactions to continue our business and such capital may not be available to us or, if received, may not be available to us on favorable terms
13. 13The DOE funding of the loan may be delayed, and we may not be able to satisfy all of the technical, legal, environmental or financial conditions acceptable to the DOE to receive the loan guarantee
14. 14Our estimated future revenue may not be indicative of actual future revenue or profitability
15. 15If we cannot obtain financing to support the sale of our products and service to our customers or our power purchase agreements with customers, such failure may adversely affect our liquidity and financial position
16. 16Our indebtedness could adversely affect our liquidity, financial condition and our ability to fulfill our obligations and operate our business
17. 17The accounting method for convertible debt securities that may be settled in cash, such as the 7.00% Convertible Senior Notes or the 3.75% Convertible Senior Notes, could have a material effect on our reported financial results
18. 18The convertible note hedges may affect the value of our common stock
19. 19We are subject to counterparty risk with respect to the convertible note hedge transactions
20. 20Unfavorable developments affecting the banking and financial services industry could adversely affect our business, liquidity and financial condition, and overall results of operations
21. 21We may not be able to expand our business or manage our future growth effectively
22. 22If we fail to maintain effective internal control over financial reporting, we may not be able to accurately report our financial results in a timely manner or prevent fraud and be subject to fines, penalties or judgments, which can harm our reputation or otherwise cause a decline in investor confidence
23. 23Delays in or not completing our product and project development goals or products experiencing technical defects may adversely affect our revenue and profitability
24. 24Our purchase orders may not ship, be commissioned or installed, or convert to revenue, which could have an adverse impact on revenue and cash flow
25. 25Our future plans could be harmed if we are unable to leverage, attract or retain key personnel
26. 26We are subject to legal proceedings and legal compliance risks that could harm our business
27. 27Certain component quality issues have resulted in adjustments to our warranty reserves and the accrual for loss contracts
28. 28The delays in the implementation of a new enterprise resource planning system could cause disruption to our operations
29. 29We may not be able to protect important intellectual property and we could incur substantial costs defending against claims that our products infringe on the proprietary rights of others
30. 30products, and could necessitate the expenditure of significant resources to develop or acquire non-infringing intellectual property
31. 31Our financial results may be adversely affected by changes in accounting principles generally accepted in the United States
32. 32If our estimates or judgments relating to our critical accounting policies are based on assumptions that change or prove to be incorrect, our operating results could fall below expectations of investors, resulting in a decline in our stock price
33. 33Our products use, or generate, flammable fuels that are inherently dangerous substances, which could subject our business to product safety, product liability, other claims, product recalls, negative publicity, or heightened regulatory scrutiny of our products
34. 34Our success depends on our ability to improve our financial and operational performance and execute our business strategy
35. 35The funding of the loan guarantee from the Department of Energy may be delayed, and we may not be able to satisfy all of the technical, legal, environmental or financial conditions acceptable to the Department of Energy to receive the loan guarantee
36. 36Changes in U.S. or foreign trade policies, treaties, tariffs and taxes as well as geopolitical conditions and other factors could have a material adverse effect on our business
37. 37We are subject to various federal, state, local and non-U.S. environmental and human health and safety laws and regulations that could impose significant costs and liabilities on us and impact our business practices, including climate change and environmental, social and governance (“ESG”) reporting requirements
38. 38Our business is subject to government regulation
39. 39Changes in tax laws or regulations or adverse outcomes resulting from examination of our income or other tax returns could adversely affect our operating results and financial condition
40. 40The changes in the carryforward/carryback periods as well as the new limitation on use of net operating losses (“NOLs”) may significantly impact our valuation allowance assessments for NOLs
41. 41We are exposed to fluctuations in currency exchange rates, which could negatively affect our operating results
42. 42We may be unable to establish or maintain relationships with third parties for certain aspects of continued product developments, manufacturing, distribution, sale, servicing, and supply components for our products
43. 43We may be unable to make attractive acquisitions or successfully integrate acquired businesses, assets or properties, and any inability to do so may disrupt our business and hinder our ability to grow, divert the attention of key personnel, disrupt our business, and impair our financial results
44. 44F. RISKS RELATED TO THE OWNERSHIP OF OUR COMMON STOCK
45. 45Sales of substantial amounts of our common stock in the public markets, or the perception that such sales might occur, could reduce the price that our common stock might otherwise attain and may dilute your voting power and your ownership interest in us
46. 46Provisions in our governing documents and Delaware law may discourage or delay an acquisition of the Company by a third party that stockholders may consider favorable and may limit a stockholder’s ability to bring a claim in a forum a stockholder finds favorable
47. 47In addition, as a Delaware corporation, we are subject to Section 203 of the Delaware General Corporation Law. These provisions may prohibit large stockholders, in particular those owning 15% or more of our outstanding voting stock, from merging or combining with us for a certain period of time
48. 48We do not anticipate paying any dividends on our common stock