On August 4, 2022, after market hours, Hyzon Motors filed with the SEC a current report on Form 8-K which announced, in part, that: (1) “[t]he Audit Committee of the Board of Directors of the Company, based on the recommendation of management, determined that the Company’s Annual Report on Form 10-K for the year ended December 31, 2021 and Quarterly Report on Form 10-Q for the period ended March 31, 2022 (the ‘Non-Reliance Periods’) should no longer be relied upon[;]”; (2) “[t]he Company has determined to withdraw all financial and operational guidance it has previously issued for all periods, including for the year ended December 31, 2022 and subsequent years[;]” (3) “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[;]” and (4) “[t]he Company has identified operational inefficiencies at Hyzon Motors Europe B.V., … which will have a material adverse effect on the Company’s ability to produce and sell vehicles. As a result, the Company has determined to restructure its European operations.”
On this news, Hyzon Motor’s stock price fell $1.71 per share, or 38%, to close at $2.78 per share on August 5, 2022, the next trading day, on unusually heavy trading volume.
