Hydrogen vehicle manufacturer Hyzon has been notified of a potential delisting from the Nasdaq on 14 February, as it has still not filed its report for the second quarter of last year. Hyzon says  it will appeal against the delisting and request a hearing, which the company claims will automatically stay the delisting process for 15 days from the date of the request.

However, the company’s stock has still plummeted by c.28pc over the past five days as investors sell ahead of the delisting deadline.

Hyzon has been accused of improper business practices by multiple lawsuits and a short-seller report by investment firm Blue Orca. A non-binding deal with Chinese firm Shanghai Hongyun for 500 hydrogen-powered trucks has been under particular scrutiny given the customer was allegedly established only three days before the deal was announced.

13 February – Missed deadline for Hyzon to file its Q2 2022 results

In August 2022, the vehicle manufacturer disclosed it would be unable to file its Q2 results that year as it was investigating “revenue recognition timing issues in China”, prompting an initial notification of delisting from the Nasdaq unless a plan to regain compliance was submitted and approved. However, at the end of January, Hyzon notified the exchange that it was still unable to file these results for the extended deadline of 13 February.

Hyzon’s audit committee has also this month concluded that the report for Q2 2021 “should no longer be relied upon” owing to revenue recognition issues related to the company’s European joint ventures. The firm intends to restate and reissue these financial statements but admits that “the primary impact of the restatement will be to eliminate substantially all of the revenue, inventory, and contract liabilities” and reduce costs associated with customer sales contracts assumed from Dutch firm Holthausen Clean Technology recorded in that quarter.

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Author: Polly Martin