Fuel cell company Plug Power Inc. (Nasdaq: PLUG), which has been struggling with an increasing deficit and lack of liquidity, says it has new bookings that should provide an increased recurring revenue stream.

Plug Power, headquartered in Latham, N.Y., provides fuel cells, devices that take hydrogen and convert it to electricity, for the material handling equipment market.

"Over the last six to nine months, we've really expanded our business model," says Plug Power CEO Andrew Marsh. The expansion was a result of customers voicing their desire for Plug Power to not only provide the fuel cell, but also the fueling station and a long-term service contract, according to Marsh. "We are also looking at auxiliary markets to help drive our expansion as well as our product offering," says Marsh.

In 2013, between Oct. 8 and Dec. 4, the company received an additional $17.8 million in bookings, which should provide a recurring revenue stream from product service and contracts, according to a filing with the U.S. Securities and Exchange Commission.

Additionally, the company has regained compliance with Nasdaq's minimum bid price listing requirement of $1. Plug Power's shares opened, for the first time in 2013, at $1.04 on Dec. 4. On Dec. 31, shares opened at $1.64. Marsh attributes the stock price increase to the increase in business.

Plug Power landed on Mergers & Acquisitions Distressed Company Watch List after accounting firm KPMG LLC raised substantial doubt about the company's ability to continue as a going concern, according to an April 1 filing with SEC. At that time, the company was also facing delisting problems with the Nasdaq exchange after its shares were consistently priced at less than $1.

To raise money, the company completed a public equity offering in February, raising $2.3 million. Plug Power was also able to raise $2.8 million from the exercise of stock warrants, $2.6 million from a sale-leaseback transaction of its facilities in Latham, a $6.5 million strategic investment from Air Liquide, and a $10.6 million public offering in September.

Those fundraising activities should allow the company to operate into the second quarter of 2014, Plug Power says. Plug Power is also working to establish a line of credit for working capital. "We've been working with a number of banks and have a number of banks competing for our business," says Marsh.

In order to meet its Ebitda's break even goal, the company must ship 3,000 units in 2014-a realistic goal, Marsh says.

As of Sept. 30, the company listed nearly $11 million in assets, up from $9.4 million at the end of 2012. The company's operating loss also shrank to about $8 million for the three months ended Sept. 30, from $11.8 million for the three months ended Sept. 30, 2012.

The company had an accumulated deficit of $820.5 million as of Sept. 30, which was incurred from operating costs, research and development and administrative costs. At the end of 2012, the company was carrying a $786.1 million deficit.

Plug Power has continued to experience negative cash flows from operations and expects those losses to continue for the foreseeable future.

Subscribe Now

Complete access to real-time information and analysis of news and trends in the industry.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.