Hyzon Motors announced Thursday that its Q2 2022 financial results will not be issued by the August 15, the due date for filing not anticipating filing date at this time. The company added that will file a Notification of Late Filing on Form 12b-25 on or before August 16, 2022. As of 6:40 pm eastern time, Hyzon shares are plunging 30% to $3.15 per share.
Hyzon’s management has become aware of revenue recognition timing issues in China. A board-appointed special committee, working with external advisors, is conducting an independent investigation to address these and other governance and compliance issues.
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“In connection with the preparation of the Company’s financial results for the period ended June 30, 2022, the Company’s Board of Directors appointed a committee of independent board members to investigate, with the assistance of independent outside counsel and other advisors, certain issues regarding revenue recognition timing and internal controls and procedures, primarily pertaining to its China operations, that were brought to the attention of the Board by Company management,” Hyzon said.
Separately, the company has identified operational inefficiencies at Hyzon Motors Europe B.V., the company’s European joint venture with Holthausen. The Board of Directors has retained a third-party consulting firm to assist the board and management with reassessing Hyzon’s global strategy and operations.
We acknowledge the serious nature of this development and are working diligently with the assistance of outside legal and financial advisors to resolve this matter as quickly as possible. Due to these findings, financial statements and guidance previously issued by the company can no longer be relied upon.
Hyzon remains dedicated to our mission of delivering zero emission hydrogen-powered commercial vehicles and accelerating clean transport across the globe. We affirm our unwavering commitment to our customers, employees, partners, shareholders and suppliers – and are determined to resolve these issues as soon as possible,” the company concluded.