On August 4 (2022), Hyzon released a statement confirming it will not issue its Second Financial Filings by the August 15, 2022 deadline, stating its management had been made aware of ‘revenue recognition timing issues in China’ and that it had launched an independent investigation by a board-appointed special committee, working in conjunction with external advisors, to address these and other ‘governance and compliance issues’.

By August 11, 2022, Hyzon’s Class A Common Stock had plummeted on Nasdaq’s Global Select Market (Nasdaq:HYZN).

Additionally, the same statement revealed the company has identified ‘operational inefficiencies’ at its European joint venture with Holthausen, Hyzon Motos Europe. Subsequently, the Board of Directors retained a third-party consulting firm to assist in the reassessing of Hyzon’s global strategy and operations.

In the statement, Hyzon said, “We acknowledge the serious nature of this development and are working diligently with the assistance of outside legal and financial advisors to resolve this matter as quickly as possible. Due to these findings, financial statements and guidance previously issued by the company can no longer be relied upon.

“Hyzon remains dedicated to our mission of delivering zero-emission hydrogen-powered commercial vehicles and accelerating clean transport across the globe. We affirm our unwavering commitment to our customers, employees, partners, shareholders and suppliers – and are determined to resolve these issues as soon as possible.”

Nasdaq notice and senior management reshuffle

Subsequently, Hyzon on August 17, 2022, revealed it had received notice from The Nasdaq Stock Market that its failure to file its second quarter report (Form 10-Q) meant the company was no longer complying with its listing rule, requiring companies to timely file all required period reports with the Securities and Exchange Commission (SEC).

Despite the notice offering no immediate effect on the listing or trading of Hyzon’s common stock on the Nasdaq Global Select Market, Nasdaq confirmed that the company must submit a plan within 60 calendar days from August 16, 2022, no later than October 14, 2022, addressing how it intends to regain compliance.

If accepted by Nasdaq, it may grant Hyzon an extension of up to 180 days from the original August 15, 2022, Form 10-Q deadline to regain compliance.

 The same day as the Nasdaq notice, Hyzon announced a ‘leadership transition’ which would see its one of its founders, Craig Knight depart from his role as a director of the company. Parker Meeks now takes up the reins as Interim President and CEO of Hyzon, effective immediately.

Read more: Parker Meeks appointed interim President and Chief Executive of Hyzon Motors