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Acquisitions | 12 Months Ended
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Dec. 31, 2023
Acquisitions |
Acquisitions | 3. Acquisitions ​ Alloy Custom Products, LLC and WesMor Cryogenics, LLC ​ On December 5, 2022, the Company acquired two subsidiaries of Cryogenic Industrial Solutions, LLC, Alloy Custom Products, LLC, and WesMor Cryogenics, LLC (collectively, “CIS”). The CIS acquisition will allow the Company to increase its production capabilities for stainless steel and aluminum cryogenic transport truck-mounted cryogenic pressure vessels, cryogenic transport trailers, and other mobile storage containers. ​ The fair value of consideration paid by the Company in connection with the CIS acquisition was as follows (in thousands): ​
​ | ​ | ​ | ​
Cash |  | $ | 30,700
Due to Cryogenic Industrial Solutions, LLC | ​ | ​ | 500
Plug Power Inc. Common Stock | ​ | ​ | 6,107
Total consideration | ​ | $ | 37,307
​ The following table summarizes the final allocation of the purchase price to the fair value of the net assets acquired, excluding goodwill (in thousands): ​
​ | ​ | ​ | ​
Cash |  | $ | 267
Accounts receivable | ​ | ​ | 5,038
Inventory | ​ |  | 11,120
Prepaid expenses and other assets | ​ | ​ | 464
Property, plant and equipment | ​ | ​ | 3,887
Right of use asset | ​ | ​ | 1,538
Identifiable intangible assets | ​ | ​ | 13,430
Lease liability | ​ | ​ | (1,562)
Accounts payable, accrued expenses and other liabilities | ​ | ​ | (3,826)
Deferred revenue | ​ | ​ | (6,193)
Total net assets acquired, excluding goodwill | ​ | $ | 24,163
​ For the year ended December 31, 2023, the Company did not record any measurement period adjustments. ​ The fair value of the tradename totaling $6.2 million was calculated using the relief from royalty approach which is a variant of the income approach, and was assigned a useful life of 15 years. The fair value of the customer relationships totaling $7.1 million was calculated using the multi-period excess earnings method (“MPEEM”) approach which is a variant of the income approach, and was assigned a useful life of 15 years. The basic principle of the MPEEM approach is that a single asset, in isolation, is not capable of generating cash flow for an enterprise. Several assets are brought together and exploited to generate cash flow. The fair value of the non-compete agreements was $0.2 million with a useful life of five years. ​ The goodwill was primarily attributed to the value of synergies created with the Company’s current and future offerings and the value of the assembled workforce. Goodwill and intangible assets are deductible for income tax purposes. Goodwill associated with the CIS acquisition was calculated as follows (in thousands): ​
​ | ​ | ​ | ​
Consideration paid |  | $ | 37,307
Less: net assets acquired | ​ | ​ | (24,163)
Total goodwill recognized | ​ | $ | 13,144
​ The acquisition of CIS contributed $47.7 million and $3.7 million to total consolidated revenue for the years ended December 31, 2023 and 2022, respectively. The Company determined that the net income from the CIS acquisition for the years ended December 31, 2023 and 2022 was immaterial. ​ The CIS acquisition was not considered material to our consolidated results of operations or financial position and, therefore, pro forma financial information is not presented. ​ Joule Processing LLC ​ On January 14, 2022, the Company acquired Joule Processing LLC (“Joule”), an engineered modular equipment, process design and procurement company founded in 2009. ​ The fair value of consideration paid by the Company in connection with the Joule acquisition was as follows (in thousands): ​
​ | ​ | ​ | ​
Cash |  | $ | 28,140
Contingent consideration | ​ | ​ | 41,732
Total consideration | ​ | $ | 69,872
​ The contingent consideration represents the estimated fair value associated with earn-out payments of up to $130.0 million that the sellers are eligible to receive in cash or shares of the Company’s common stock (at the Company’s election). Of the total earnout consideration, $90.0 million is related to the achievement of certain financial performance and $40.0 million is related to the achievement of certain operational milestones. ​ The following table summarizes the final allocation of the purchase price to the fair value of the net assets acquired, excluding goodwill (in thousands): ​
​ | ​ | ​ | ​
Current assets |  | $ | 2,672
Property, plant and equipment | ​ | ​ | 493
Right of use asset | ​ | ​ | 182
Identifiable intangible assets | ​ | ​ | 60,522
Lease liability | ​ | ​ | (374)
Current liabilities | ​ | ​ | (2,612)
Contract liability | ​ | ​ | (3,818)
Total net assets acquired, excluding goodwill | ​ | $ | 57,065
​ For the year ended December 31, 2023, the Company did not record any measurement period adjustments. ​ The fair value of the developed technology totaling $59.2 million included in the identifiable intangible assets was calculated using the MPEEM approach. Therefore, to determine cash flow from the developed technology over its useful life of 15 years, one must deduct the related expenses incurred for the exploitation of other assets used for the generation of overall cash flow. The fair value of the tradename totaling $0.8 million was calculated using the relief from royalty approach, which is a variant of the income approach, and was assigned a useful life of four years. The fair value of the non-compete agreements was $0.5 million with a useful life of six years. ​ In addition to identifiable intangible assets, the fair value of acquired work in process and finished goods inventory, included in inventory, was estimated based on the estimated selling price less costs to be incurred and a market participant profit rate. ​ In connection with the acquisition, the Company recorded on its consolidated balance sheet a liability of $41.7 million representing the fair value of contingent consideration payable and is recorded in the consolidated balance sheet in the loss accrual for service contracts and other liabilities. The fair value of this contingent consideration was $75.5 million and $53.2 million as of December 31, 2023 and December 31, 2022, respectively, and as a result, an increase of $22.3 million was recorded in the consolidated statement of operations for the year ended December 31, 2023. ​ Included in the purchase price consideration are contingent earn-out payments as described above. Due to the nature of the earn-outs, a scenario based analysis using the probability of achieving the milestone expectations was used to determine the fair value of the contingent consideration. These fair value measurements were based on unobservable inputs and are considered to be Level 3 financial instruments. ​ The goodwill was primarily attributed to the value of synergies created with the Company’s current and future offerings and the value of the assembled workforce. Goodwill and intangible assets are deductible for income tax purposes. Goodwill associated with the Joule acquisition was calculated as follows (in thousands): ​
​ | ​ | ​ | ​
Consideration paid |  | $ | 28,140
Contingent consideration | ​ | ​ | 41,732
Less: net assets acquired | ​ | ​ | (57,065)
Total goodwill recognized | ​ | $ | 12,807
​ The acquisition of Joule would have contributed $36.8 million and $3.6 million to total consolidated revenue and net income for the year ended December 31, 2022, respectively, had the acquisition occurred on January 1, 2021. In addition, the acquisition of Joule would have contributed $10.8 million and $43 thousand to total consolidated revenue and net loss for the year ended December 31, 2021, respectively, had the acquisition occurred on January 1, 2021. The following table reflects the unaudited consolidated pro forma results of operations for the years ended December 31, 2022 and 2021 assuming that the Joule acquisition had occurred on January 1, 2021 (in thousands): ​
​ | ​ | ​ | ​ | ​ | ​
​ | For the year ended |  | For the year ended
​ | December 31, 2022 | ​ | December 31, 2021
​ | (unaudited) | ​ | (unaudited)
Revenue | $ | 701,742 | ​ | $ | 513,174
Net loss | $ | (723,934) | ​ | $ | (460,008)
​

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- Definition The entire disclosure for business combinations, including leverage buyout transactions (as applicable), and divestitures. This may include a description of a business combination or divestiture (or series of individually immaterial business combinations or divestitures) completed during the period, including background, timing, and assets and liabilities recognized and reclassified or sold. This element does not include fixed asset sales and plant closings. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 805 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//805/tableOfContent Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 205 -SubTopic 20 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//205-20/tableOfContent + Details
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