| Restatement of Previously Issued Condensed Consolidated Financial Statements | Restatement of Previously Issued Condensed Consolidated Financial Statements We have restated herein our condensed consolidated financial statements as of and for the three and six months ended June 30, 2019. We have also restated related amounts within the accompanying footnotes to the condensed consolidated financial statements. Restatement Background As previously disclosed in our Annual Report on Form 10-K as filed on March 31, 2020, on February 11, 2020, our management, in consultation with the Audit Committee of our Board of Directors, determined that our previously issued consolidated financial statements as of and for the year ended December 31, 2018, as well as financial statements as of and for the three month period ended March 31, 2019, the three and six month periods ended June 30, 2019 and 2018 and the three and nine month periods ended September 30, 2019 and 2018 should no longer be relied upon due to misstatements related to our Managed Services Agreements and similar arrangements and we would restate such financial statements to make the necessary accounting corrections. The revenue for the Managed Services Agreements and similar transactions will now be recognized over the duration of the contract instead of upfront. The restatement also includes corrections for additional identified immaterial misstatements in certain of the impacted periods. The misstatements impacting as of and for the three and six months ended June 30, 2019 are described in greater detail below. Description of Misstatements Under our Managed Services program, we sell our equipment to a bank financing party under a sale-leaseback transaction, which pays us for the Energy Server and takes title to the Energy Server. We then enter into a service contract with an end customer, who pays the bank a fixed, monthly fee for its use of the Energy Server and pays us for our maintenance and operation of the Energy Server. The majority of these Managed Services Agreements and similar transactions were originally recorded as sales, subject to an operating lease, in which revenues and associated costs were recognized at the time of installation and acceptance of the Energy Server at the customer site. In December 2019, in the course of reviewing a Managed Services transaction that closed on November 27, 2019, an issue was identified related to the accounting for our Managed Services transactions. The issue primarily related to whether the terms of our Managed Services Agreements and similar arrangements, including the events of default provisions, satisfied the requirements for sales under the revenue accounting standards. Subsequently, it was determined that the previous accounting for the Managed Services Agreements and similar transactions was misstated, as the Managed Services Agreements and similar transactions should have been accounted for as financing transactions under lease accounting standards. The impact of the correction of the misstatement is to recognize amounts received from the bank financing party as a financing obligation, and the Energy Server is recorded within property, plant and equipment, net, on our consolidated balance sheets. We recognize revenue for the electricity generated by the systems, based on payments received by the bank from the customer, and the corresponding financing obligations to the bank is also amortized as these payments are received by the bank from the customer, with interest thereon being calculated on an effective interest rate basis. Depreciation expense is also recognized over the estimated useful life of the Energy Server. In addition, it was determined that stock-based compensation costs relating to manufacturing employees that were previously expensed as incurred incorrectly, should have been capitalized as a component of Energy Server manufacturing costs to inventory, deferred cost of revenues, construction-in-progress and property, plant and equipment in accordance with SEC Staff Accounting Bulletin Topic 14. These costs will now be expensed on consumption of the related inventory and over the economic useful life of the property, plant and equipment, as applicable. Also, as part of a review of historical revenue agreements as a result of the above errors, it was noted that we failed to identify embedded derivatives in certain revenue agreements for an escalator price protection (“EPP”) feature given to our customers. As a result, we have recorded a derivative liability, with an offset to product revenue, to account for the fair value of this feature at inception and will record the liability at its then fair value at each period end with any changes in fair value recognized in gain (loss) on revaluation of embedded derivatives. In addition to the impact of the restatement described above, in preparation of the condensed consolidated financial statements for the three months ended March 31, 2020, errors in our condensed consolidated statements of comprehensive loss were discovered. For the three and six month periods ended June 30, 2019, the presentation of this statement and other errors identified in this statement have been corrected, which resulted in an additional $5.0 million and $8.8 million increase to comprehensive loss, and an increase of $5.0 million and $8.8 million in comprehensive loss attributable to noncontrolling interest and redeemable noncontrolling interests, respectively. The condensed consolidated statements of comprehensive loss for the three and nine months ended September 30, 2019 will also be corrected when those periods are next reported. In the consolidated statements of comprehensive loss for the years ended December 31, 2019 and 2018, comprehensive loss as previously reported is understated by $5.8 million and overstated by $1.8 million, respectively. In addition, the reconciliation of comprehensive loss to comprehensive loss attributable to Class A and Class B stockholders was erroneously omitted. As it relates to the impact of the errors to the consolidated statements of comprehensive loss for the years ended December 31, 2019 and 2018, management evaluated the impact of the errors to the previously issued financial statements and concluded the impacts were not material. Accordingly, these items are and will be corrected when those periods are next reported. Finally, there were certain other immaterial misstatements identified or which had been previously identified that are also being corrected in connection with the restatement of previously issued financial statements. Description of Restatement Reconciliation Tables In the following tables, we have presented a reconciliation of our condensed consolidated balance sheet and statements of operations and cash flows from our prior periods as previously reported to the restated amounts as of and for the three and six months ended June 30, 2019. In addition to the errors to the condensed consolidated statement of comprehensive loss discussed above, that Statement has been restated for the restatement impact to net loss. The condensed consolidated statement of redeemable noncontrolling interest, total stockholders' deficit and noncontrolling interest for the three and six months ended June 30, 2019 has also been restated for the restatement impact to net loss. See the condensed consolidated statements of operations reconciliation table below for additional information on the restatement impact to net loss. Bloom Energy Corporation Condensed Consolidated Balance Sheet (in thousands) June 30, 2019 As Previously Reported Restatement Impacts Restatement Reference ASC 606 Adoption Impacts As Restated And Recast Assets Current assets: Cash and cash equivalents $ 308,009 $ — $ — $ 308,009 Restricted cash 23,706 — — 23,706 Accounts receivable 38,296 4,172 1 (2,430) 40,038 Inventories 104,934 1,955 2 — 106,889 Deferred cost of revenue 86,434 (6,127) 3 — 80,307 Customer financing receivable 5,817 — — 5,817 Prepaid expenses and other current assets 25,088 1,252 4 143 26,483 Total current assets 592,284 1,252 (2,287) 591,249 Property, plant and equipment, net 406,610 234,649 5 — 641,259 Customer financing receivable, non-current 64,146 — — 64,146 Restricted cash, non-current 39,351 — — 39,351 Deferred cost of revenue, non-current 59,213 (55,367) 3 — 3,846 Other long-term assets 60,975 9,118 6 2,743 72,836 Total assets $ 1,222,579 $ 189,652 $ 456 $ 1,412,687 Liabilities, Redeemable Noncontrolling Interest, Stockholders’ Deficit and Noncontrolling Interests Current liabilities: Accounts payable $ 61,427 $ — $ — $ 61,427 Accrued warranty 12,393 (1,154) 7 (999) 10,240 Accrued expenses and other current liabilities 109,722 (4,329) 8 — 105,393 Financing obligations — 10,027 9 — 10,027 Deferred revenue and customer deposits 129,321 (13,847) 10 3,264 118,738 Current portion of recourse debt 15,681 — — 15,681 Current portion of non-recourse debt 7,654 — — 7,654 Current portion of non-recourse debt from related parties 2,889 — — 2,889 Total current liabilities 339,087 (9,303) 2,265 332,049 Derivative liabilities 13,079 5,096 11 — 18,175 Deferred revenue and customer deposits, net of current portion 181,221 (95,840) 10 25,369 110,750 Financing obligations, non-current — 400,078 9 — 400,078 Long-term portion of recourse debt 362,424 — — 362,424 Long-term portion of non-recourse debt 219,182 — — 219,182 Long-term portion of recourse debt from related parties 27,734 — — 27,734 Long-term portion of non-recourse debt from related parties 32,643 — — 32,643 Other long-term liabilities 58,417 (28,438) 8 — 29,979 Total liabilities 1,233,787 271,593 27,634 1,533,014 Redeemable noncontrolling interest 505 — — 505 Stockholders’ deficit: Preferred stock — — — — Common stock 11 — — 11 Additional paid-in capital 2,603,279 755 12 — 2,604,034 Accumulated other comprehensive loss (148) — — (148) Accumulated deficit (2,718,927) (82,696) (27,178) (2,828,801) Total stockholders’ deficit (115,785) (81,941) (27,178) (224,904) Noncontrolling interest 104,072 — — 104,072 Total liabilities, redeemable noncontrolling interest, stockholders' deficit and noncontrolling interest $ 1,222,579 $ 189,652 $ 456 $ 1,412,687 1 Accounts receivable — The correction of these misstatements resulted from the change of accounting for Managed Services Agreements, for which the amount recorded to accounts receivable represents amounts invoiced for capacity billings to end customers which have not yet been collected by the financing entity as of the period end. 2 Inventories — The correction of these misstatements resulted from the change of accounting for inventory, including net capitalization of stock-based compensation cost of $2.0 million. 3 Deferred cost of revenue, current and non-current — The correction of these misstatements resulted from reclassifying deferred cost of revenue to property, plant and equipment, net, for the leased Energy Servers under the Managed Services Agreements and similar sale-leaseback arrangements of $7.4 million (short-term) and $55.4 million (long-term), net capitalization of stock-based compensation costs of $3.7 million into current deferred cost of revenue, and the correction of certain other immaterial misstatements identified to relieve installation deferred cost of revenue of $2.5 million. 4 Prepaid expenses and other current assets — The correction of these misstatements resulted from the change of accounting for Managed Services Agreements and similar arrangements, whereby prepaid property tax and insurance payments are now classified within prepaid expenses, rather than offset against deferred revenue. 5 Property, plant and equipment, net — The correction of these misstatements resulted from the change of accounting for Managed Services transactions and similar arrangements, whereby product and install cost of revenue are now recorded as property, plant and equipment, net in the cases where the risks of ownership have not completely transferred to the financing party of $230.9 million. This includes a net capitalization of stock-based compensation cost for these assets of $3.7 million. 6 Other long-term assets — The correction of these misstatements resulted from the change of accounting for Managed Services Agreements and similar arrangements, whereby the timing difference of capacity billings to end customers and the payments received from the financing entity is recorded within long term receivables and prepaid property tax and insurance payments are now classified within other long-term assets, rather than offset against long-term deferred revenue. 7 Accrued warranty — The correction of these misstatements resulted from the change of accounting for accrued warranty, which is now recorded on an as-incurred basis for our Managed Services Agreements and similar arrangements, reducing accrued warranty by $0.2 million and the change of accounting for the grid pricing escalation guarantees we provided in some of our sales arrangements, which are now recorded as derivative liabilities, reducing accrued warranty by $0.9 million. 8 Accrued expense and other current liabilities and other long-term liabilities — The correction of these misstatements resulted from the change of accounting for Managed Services Agreements, for which historical accrued liabilities recorded at inception of the agreements, as well as subsequent reductions of those liabilities, were reversed. 9 Financing obligations, current and non-current — The correction of these misstatements resulted from the change of accounting for Managed Services Agreements and similar arrangements, whereby instead of recognizing the upfront proceeds received from the bank as revenue, the proceeds received are classified as financing obligations. 10 Deferred revenue and customer deposits, current and non-current — The correction of these misstatements resulted from the change of accounting for the recognition of product and installation revenue from upfront or ratable recognition to recognition of the capacity payments received from the end customer as power is generated by the Energy Servers as electricity revenue. 11 Derivative liabilities — The correction of these misstatements resulted from the change of accounting for embedded derivatives related to grid pricing escalation guarantees we provided in some of our sales arrangements. These are now recorded as derivative liabilities and were previously treated as an accrued liability. 12 Additional paid-in capital — Relates to the correction of an unadjusted misstatement in the valuation of our 6% Notes derivative, resulting in a credit to additional paid-in capital and additional expense of $0.8 million recorded within other expense, net. . Bloom Energy Corporation Condensed Consolidated Statement of Operations (in thousands) Three Months Ended As Previously Reported Restatement Impacts Restatement Reference ASC 606 Adoption Impacts As Restated And Recast Revenue: Product $ 179,899 $ (22,757) a $ (13,061) $ 144,081 Installation 17,285 (5,900) a 1,691 13,076 Service 23,659 (586) a (47) 23,026 Electricity 12,939 7,204 a — 20,143 Total revenue 233,782 (22,039) (11,417) 200,326 Cost of revenue: Product 131,952 (19,005) c, d 281 113,228 Installation 22,116 (4,431) c — 17,685 Service 19,599 920 b, d (1,756) 18,763 Electricity 18,442 3,858 c — 22,300 Total cost of revenue 192,109 (18,658) (1,475) 171,976 Gross profit 41,673 (3,381) (9,942) 28,350 Operating expenses: Research and development 29,772 — — 29,772 Sales and marketing 18,359 17 e (182) 18,194 General and administrative 43,662 — — 43,662 Total operating expenses 91,793 17 (182) 91,628 Loss from operations (50,120) (3,398) (9,760) (63,278) Interest income 1,700 — — 1,700 Interest expense (16,725) (5,997) f — (22,722) Interest expense to related parties (1,606) — — (1,606) Other expense, net (222) — — (222) Loss on revaluation of warrant liabilities and embedded derivatives — (540) g — (540) Loss before income taxes (66,973) (9,935) (9,760) (86,668) Income tax provision 258 — — 258 Net loss (67,231) (9,935) (9,760) (86,926) Less: net loss attributable to noncontrolling interests and redeemable noncontrolling interests (5,015) — — (5,015) Net loss attributable to Class A and Class B common stockholders $ (62,216) $ (9,935) $ (9,760) $ (81,911) a Revenue impacted by Managed Services restatements — The correction of these misstatements resulted from the change from upfront recognition of product and installation revenue to recognition of the capacity payments received from the end customer as power is generated by the Energy Servers as electricity revenue over the term of our Managed Services Agreements and similar sale-leaseback arrangements, which also impacted our service revenue allocation. b Service cost of revenue impacted by grid pricing escalation guarantees — The correction of these misstatements resulted in a change in the accounting for our grid escalation guarantees that resulted in a decrease in service cost of revenue of $0.1 million. c Cost of revenue impacted by Managed Services restatements — The correction of these misstatements resulted from the change from upfront recognition of product and installation cost of revenue to recognition of the depreciation expense on the capitalized Energy Servers over their useful life of 21 years for our Managed Services Agreements and similar sale-leaseback transactions, resulting in a decrease in product cost of revenue of $18.1 million and installation cost of revenue of $5.2 million, offset by an increase in electricity cost of revenue of $3.8 million, together with the correction of certain other immaterial misstatements identified to record installation cost of revenue of $0.8 million. d Cost of revenue impacted by stock-based compensation allocation — The correction of these misstatements resulted from the capitalization of stock-based compensation costs, with a net benefit to product cost of revenue of $0.9 million, and an increase in service cost of revenue of $1.0 million due to the expensing of stock-based compensation related to field replacement units. e Sales and marketing and general and administrative expenses — The correction of these misstatements primarily resulted from the change of accounting for sales commission expense on an as earned basis, to accounting for the expense over the term of our Managed Services Agreements and similar sale-leaseback arrangements. f Interest expense — The correction of these misstatements resulted from the change of accounting for sales that should have been accounted for as financing transactions, in which the upfront consideration received from the financing party is accounted for as a financing obligation and interest expense is recognized over the term of the Managed Services Agreement using the effective interest method. g Gain (loss) on revaluation of warrant liabilities and embedded derivatives — The correction of these misstatements resulted from the change of accounting for the grid pricing escalation guarantees we provided in some of our sales arrangements which is now recorded as a derivative liability that needs to be fair valued each period end. The fair value increased in the period, resulting in a loss of $0.5 million. Bloom Energy Corporation Condensed Consolidated Statement of Operations (in thousands) Six Months Ended As Previously Reported Restatement Impacts Restatement Reference ASC 606 Adoption Impacts As Restated And Recast Revenue: Product $ 321,633 $ (70,928) a $ (15,698) $ 235,007 Installation 39,543 (17,095) a 2,847 25,295 Service 46,949 (1,160) a 704 46,493 Electricity 26,364 14,168 a — 40,532 Total revenue 434,489 (75,015) (12,147) 347,327 Cost of revenue: Product 255,952 (53,985) c, d 33 202,000 Installation 46,282 (12,837) c — 33,445 Service 47,156 2,251 b, d (2,723) 46,684 Electricity 27,671 7,613 c — 35,284 Total cost of revenue 377,061 (56,958) (2,690) 317,413 Gross profit 57,428 (18,057) (9,457) 29,914 Operating expenses: Research and development 58,631 — — 58,631 Sales and marketing 38,822 19 e (274) 38,567 General and administrative 82,736 — — 82,736 Total operating expenses 180,189 19 (274) 179,934 Loss from operations (122,761) (18,076) (9,183) (150,020) Interest income 3,585 — — 3,585 Interest expense (32,687) (11,835) f — (44,522) Interest expense to related parties (3,218) — — (3,218) Other expense, net 43 — — 43 Loss on revaluation of warrant liabilities and embedded derivatives — (1,080) g — (1,080) Loss before income taxes (155,038) (30,991) (9,183) (195,212) Income tax provision 466 — — 466 Net loss (155,504) (30,991) (9,183) (195,678) Less: net loss attributable to noncontrolling interests and redeemable noncontrolling interests (8,847) — — (8,847) Net loss attributable to Class A and Class B common stockholders $ (146,657) $ (30,991) $ (9,183) $ (186,831) a Revenue impacted by Managed Services restatements — The correction of these misstatements resulted from the change from upfront recognition of product and installation revenue to recognition of the capacity payments received from the end customer as power is generated by the Energy Servers as electricity revenue over the term of our Managed Services Agreements and similar sale-leaseback arrangements, which also impacted our service revenue allocation. b Service cost of revenue impacted by grid pricing escalation guarantees — The correction of these misstatements resulted in a change in the accounting for our grid escalation guarantees that resulted in a decrease in service cost of revenue of 0.2 million. c Cost of revenue impacted by Managed Services restatements — The correction of these misstatements resulted from the change from upfront recognition of product and installation cost of revenue to recognition of the depreciation expense on the capitalized Energy Servers over their useful life of 21 years for our Managed Services Agreements and similar sale-leaseback transactions, resulting in a decrease in product cost of revenue of $55.6 million and installation cost of revenue of $14.4 million, offset by an increase in electricity cost of revenue of $7.5 million, together with the correction of certain other immaterial misstatements identified to record installation cost of revenue of $1.6 million. d Cost of revenue impacted by stock-based compensation allocation — The correction of these misstatements resulted from the capitalization of stock-based compensation costs, with a net benefit to product cost of revenue of $1.6 million, and an increase in service cost of revenue of $2.4 million due to the expensing of stock-based compensation related to field replacement units. e Sales and marketing and general and administrative expenses — The correction of these misstatements primarily resulted from the change of accounting for sales commission expense on an as earned basis, to accounting for the expense over the term of our Managed Services Agreements and similar sale-leaseback arrangements. f Interest expense — The correction of these misstatements resulted from the change of accounting for sales that should have been accounted for as financing transactions, in which the upfront consideration received from the financing party is accounted for as a financing obligation and interest expense is recognized over the term of the Managed Services Agreement using the effective interest method. g Gain (loss) on revaluation of warrant liabilities and embedded derivatives — The correction of these misstatements resulted from the change of accounting for the grid pricing escalation guarantees we provided in some of our sales arrangements which is now recorded as a derivative liability that needs to be fair valued each period end. The fair value increased in the period, resulting in a loss of $1.1 million. Bloom Energy Corporation Condensed Consolidated Statements of Cash Flows (in thousands) Six Months Ended As Previously Reported Restatement Impacts Restatement Reference ASC 606 Adoption Impacts As Restated And Recast Cash flows from operating activities: Net loss $ (155,504) $ (30,991) $ (9,183) $ (195,678) Adjustments to reconcile net loss to net cash provided by operating activities: Depreciation and amortization 31,023 6,011 A — 37,034 Write-off of property, plant and equipment, net 2,704 — — 2,704 Write-off of PPA II decommissioned costs 25,613 — — 25,613 Debt make-whole payment 5,934 — — 5,934 Revaluation of derivative contracts 555 1,081 B — 1,636 Stock-based compensation 115,100 4,086 C — 119,186 Loss on long-term REC purchase contract 60 — — 60 Amortization of debt issuance cost 11,255 — — 11,255 Changes in operating assets and liabilities: Accounts receivable 46,591 (274) D 3,424 49,741 Inventories 27,542 (5,345) E — 22,197 Deferred cost of revenue 19,198 (57,991) F — (38,793) Customer financing receivable and other 2,713 — — 2,713 Prepaid expenses and other current assets 8,477 1,752 G (2) 10,227 Other long-term assets 1,028 (1,029) H (271) (272) Accounts payable (5,461) — — (5,461) Accrued warranty (6,843) 114 I 33 (6,696) Accrued expense and other current liabilities 7,213 (1,632) J — 5,581 Deferred revenue and customer deposits (25,411) 71,325 K 5,999 51,913 Other long-term liabilities 3,419 1,303 L — 4,722 Net cash provided by operating activities 115,206 (11,590) — 103,616 Cash flows from investing activities: Purchase of property, plant and equipment (18,882) (4,737) M — (23,619) Payments for acquisition of intangible assets (970) — — (970) Proceeds from maturity of marketable securities 104,500 — — 104,500 Net cash provided by investing activities 84,648 (4,737) — 79,911 Cash flows from financing activities: Repayment of debt (83,997) — — (83,997) Repayment of debt to related parties (1,220) — — (1,220) Debt make-whole payment (5,934) — — (5,934) Proceeds from financing obligations — 20,333 N — 20,333 Repayment of financing obligations — (4,006) N — (4,006) Payments to noncontrolling and redeemable noncontrolling interests (18,690) — — (18,690) Distributions to noncontrolling and redeemable noncontrolling interests (7,753) — — (7,753) Proceeds from issuance of common stock 8,321 — — 8,321 Net cash used in financing activities (109,273) 16,327 — (92,946) Net increase in cash, cash equivalents, and restricted cash 90,581 — — 90,581 Cash, cash equivalents, and restricted cash: Beginning of period 280,485 — — 280,485 End of period $ 371,066 $ — $ — $ 371,066 — — Supplemental disclosure of cash flow information: Cash paid during the period for interest $ 23,867 $ 11,835 N $ — $ 35,702 Cash paid during the period for taxes 497 — — 497 A Depreciation and amortization — The correction of these misstatements resulted from the change of accounting for Energy Servers under our Managed Services Program and similar arrangements that were previously expensed as product and install cost of revenue, but are now recorded as property, plant and equipment, net and depreciated over their useful lives of 21 years. B Revaluation of derivative contracts — The correction of these misstatements resulted from the change of accounting for the grid pricing escalation guarantees we provided in some of our sales arrangements. These commitments were previously treated as an accrued liability. We now consider the commitments a derivative liability, with the initial value of recorded as a reduction in product revenue and then any changes in the value adjusted through other expense, net, each period thereafter. C Stock-based compensation — The correction of these misstatements resulted from the change of accounting for stock-based compensation, including net capitalization of stock-based compensation cost into inventory of $4.7 million. The correction of this misstatement also resulted in the capitalization of $0.6 million of stock-based compensation costs related to assets under the Managed Services Programs now recorded as construction in progress within property, plant and equipment, net. D Accounts receivable — The correction of these misstatements resulted from the change of accounting for Managed Services Agreements, for which the amount recorded to accounts receivable represents amounts invoiced for capacity billings to end customers which have not yet been collected by the financing entity as of the period end. E Inventories — The correction of these misstatements resulted from the change of accounting for inventories held for shipments planned to customers under our Managed Services Program and similar arrangements now being accounted for as construction in progress within property, plant and equipment, net. F Deferred cost of revenue, current and non-current — The correction of these misstatements resulted from the change of accounting for Managed Services Agreements and similar arrangements, whereby leased Energy Servers of $56.5 million previously classified as deferred cost of revenue is now recorded as construction in progress within property, plant and equipment, net, and the net release of stock-based compensation expenses of $1.5 million. G Prepaid expenses and other current assets — The correction of these misstatements resulted from the change of accounting for Managed Services Agreements and similar arrangements, whereby prepaid property tax and insurance payments are now classified within prepaid expenses. H Other long-term assets — The correction of these misstatements resulted from the change of accounting for Managed Services Agreements and similar arrangements, whereby the timing difference of capacity billings to end customers and the payments received from the financing entity is recorded within long term receivables and prepaid property tax and insurance payments are now classified within other long-term assets, rather than offset against long-term deferred revenue. I Accrued warranty — The correction of these misstatements resulted from the change of accounting for accrued warranty which is now recorded on an as-incurred basis for our Managed Services Agreements and similar arrangements. The correction of these misstatements resulted from the change of accounting for the grid pricing escalation guarantees we've provided in some of our sales arrangements. These commitments were previously treated as a contingent liability that was considered remote. We now maintain a $0.3 million accrual, with the initial value treated as a reduction in product revenue and then any changes in the value adjusted through other expense, net each period thereafter. J Accrued expense and other current liabilities and other long-term liabilities — The correction of these misstatements resulted from the change of accounting for Managed Services Agreements and similar arrangements whereby instead of recognizing the bank financing as revenue, the bank financing loan proceeds received and due are classified as a financing liability. K Deferred revenue and customer deposits, current and non-current — The correction of these misstatements resulted from the change of accounting for the recognition of product and installation revenue from upfront or ratable recognition to the recognition of the capacity payments received from the end customer as power is generated by the Energy Servers as electricity revenue. L Other long-term liabilities — The correction of these misstatements resulted from the change of accounting for Managed Services Agreements and similar arrangements whereby instead of recognizing the bank financing as revenue, the bank financing loan proceeds received and due beyond the next 12 months are classified as a financing obligation. M Purchase of property, plant and equipment — The correction of these misstatements resulted from the change of accounting for Managed Services Agreements and similar arrangements, whereby costs previously recognized as product and installation cost of revenue are now recorded as property, plant and equipment, net, in the cases where the risks of ownership have not completely transferred to the financing party. N Proceeds and repayments from financing obligations — The correction of these misstatements resulted from the change of accounting for Managed Services Agreements and similar arrangements, whereby instead of recognizing the upfront proceeds received from the bank as revenue, the proceeds received and due are classified as proceeds from financing obligations and the capacity payments received from the end customer are classified as repayment of financing obligations and interest paid. |
