Change to Accounting Policy

DOVER, DE / December 13, 2024 / Pacific Green announces that it has amended some material accounting policies following extensive engagement with its auditors. These updates will be reflected retrospectively in the filings from December 2023. These adjustments have no impact on Pacific Green’s reported net income, cash balance or net assets. 

The updates reflect a change in recognition of the consideration for the sale of Sheaf Energy Limited in December 2023, a grid-scale battery energy storage systems of total project value of $258 million, to Sosteneo Energy Transition Fund, managed by Generali, with the conclusion that the $76 million consideration received from the sale, less costs of sale, is recognized as a gain on disposal, rather than revenue.

Consistent with a change in revenue recognition policy, Pacific Green has also changed its accounting policy for capitalized project under development assets, from being recorded as inventory in current assets, to being classified as long-life assets in non-current assets, and only recognized as current assets when it is anticipated that the project sale will occur within 12 months.

These corrections underscore Pacific Green’s commitment to financial transparency. The revisions follow consultations with the Securities and Exchange Commission Office of the Chief Accountant (“OCA”) over the previous accounting policy, given the unprecedented nature of the transaction and considering the complex nature of Pacific Green’s battery energy storage system developments. 

Following the determination by the OCA about the previous policy, Pacific Green has determined that the revised policy is more appropriate under US GAAP. This policy change has been discussed and agreed with the Company’s independent auditors, Grant Thornton UK LLP, and will be reflected in future 10-K and 10-Q filings.