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 quarter ended March 31, 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 Statement of Redeemable Noncontrolling Interest, Stockholders' Deficit and Noncontrolling Interest for the quarter ended March 31, 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, except share and per share data)



	March 31, 2019
	As Previously Reported			Restatement Impacts			Restatement Reference	ASC 606 Adoption Impacts			As Restated And Recast

Assets
Current assets:
Cash and cash equivalents	$	320,414		$	—			$	—		$	320,414
Restricted cash	18,419			—				—			18,419
Accounts receivable	84,070			3,995			1	(2,418		)	85,647
Inventories	116,544			3,327			2	—			119,871
Deferred cost of revenue	66,316			(13,405		)	3	—			52,911
Customer financing receivable	5,717			—				—			5,717
Prepaid expenses and other current assets	28,362			1,582			4	129			30,073
Total current assets	639,842			(4,501		)		(2,289		)	633,052
Property, plant and equipment, net	475,385			236,246			5	—			711,631
Customer financing receivable, non-current	65,620			—				—			65,620
Restricted cash, non-current	31,101			—				—			31,101
Deferred cost of revenue, non-current	72,516			(70,583		)	3	—			1,933
Other long-term assets	34,386			8,486			6	2,575			45,447
Total assets	$	1,318,850		$	169,648			$	286		$	1,488,784
Liabilities, Redeemable Noncontrolling Interest, Stockholders’ Deficit and Noncontrolling Interests
Current liabilities:
Accounts payable	$	64,425		$	—			—			64,425
Accrued warranty	16,736			(1,219		)	7	(1,280		)	14,237
Accrued expenses and other current liabilities	67,966			(3,893		)	8	—			64,073
Financing obligations	—			8,819			9	—			8,819
Deferred revenue and customer deposits	89,557			(16,153		)	10	1,665			75,069
Current portion of recourse debt	15,683			—				—			15,683
Current portion of non-recourse debt	19,486			—				—			19,486
Current portion of non-recourse debt from related parties	2,341			—				—			2,341
Total current liabilities	276,194			(12,446		)		385			264,133
Derivative liabilities	11,166			4,556			11	—			15,722
Deferred revenue and customer deposits, net of current portion	201,863			(115,432		)	10	17,320			103,751
Financing obligations, non-current	—			394,037			9	—			394,037
Long-term portion of recourse debt	357,876			—				—			357,876
Long-term portion of non-recourse debt	284,541			—				—			284,541
Long-term portion of recourse debt from related parties	27,734			—				—			27,734
Long-term portion of non-recourse debt from related parties	33,417			—				—			33,417
Other long-term liabilities	58,032			(29,062		)	8	—			28,970
Total liabilities	1,250,823			241,653				17,705			1,510,181

Redeemable noncontrolling interest	58,802			—				—			58,802
Total stockholders’ deficit	(105,439		)	(72,005		)	12	(17,419		)	(194,863		)
Noncontrolling interest	114,664			—				—			114,664
Total liabilities, redeemable noncontrolling interest, stockholders' deficit and noncontrolling interest	$	1,318,850		$	169,648			$	286		$	1,488,784

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 $3.8 million and reclassification of inventories of $0.5 million held for shipments to customers under the Managed Services Program and similar arrangements to construction in progress within property, plant and equipment, net.

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 $13.9 million (short-term) and $70.6 million (long-term), net capitalization of stock-based compensation costs of $2.1 million into current deferred cost of revenue, and the correction of certain other immaterial misstatements identified to relieve installation deferred cost of revenue of $1.7 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 costs of goods sold of $232.6 million 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. This includes a net capitalization of stock-based compensation cost for these assets of $3.6 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 $0.4 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 $0.8 million.

⁸Accrued 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.

¹⁰Deferred 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 Total stockholders' deficit — 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, together with the cumulative increase to accumulated deficit from the restatement of $72.8 million.

Bloom Energy Corporation

Condensed Consolidated Statement of Operations

(in thousands, except per share data)



	_{Three Months Ended March 31, 2019}
	_{As Previously Reported}			_{Restatement Impacts}			_{Restatement Reference}	ASC 606 Adoption Impacts			As Restated And Recast

Revenue:
Product	$	141,734		$	(48,171	)	a	$	(2,637	)	$	90,926
Installation	22,258			(11,195		)	a	1,156			12,219
Service	23,290			(574		)	a	751			23,467
Electricity	13,425			6,964			a	—			20,389
Total revenue	200,707			(52,976		)		(730		)	147,001
Cost of revenue:
Product	124,000			(34,980		)	c, d	(248		)	88,772
Installation	24,166			(8,406		)	c	—			15,760
Service	27,557			1,331			b, d	(967		)	27,921
Electricity	9,229			3,755			c	—			12,984
Total cost of revenue	184,952			(38,300		)		(1,215		)	145,437
Gross profit	15,755			(14,676		)		485			1,564
Operating expenses:
Research and development	28,859			—				—			28,859
Sales and marketing	20,463			2			e	(92		)	20,373
General and administrative	39,074			—				—			39,074
Total operating expenses	88,396			2				(92		)	88,306
Loss from operations	(72,641		)	(14,678		)		577			(86,742		)
Interest income	1,885			—				—			1,885
Interest expense	(15,962		)	(5,838		)	f	—			(21,800		)
Interest expense to related parties	(1,612		)	—				—			(1,612		)
Other expense, net	265			—				—			265
Loss on revaluation of warrant liabilities and embedded derivatives	—			(540		)	g	—			(540		)
Loss before income taxes	(88,065		)	(21,056		)		577			(108,544		)
Income tax provision	208			—				—			208
Net loss	(88,273		)	(21,056		)		577			(108,752		)
Less: net loss attributable to noncontrolling interests and redeemable noncontrolling interests	(3,832		)	—				—			(3,832		)
Net loss attributable to Class A and Class B common stockholders	$	(84,441	)	$	(21,056	)		$	577		$	(104,920	)

^aRevenue 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.

^bService 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 $37.5 million and installation cost of revenue of $9.2 million, offset by an increase in electricity cost of revenue of $3.7 million, together with the correction of certain other immaterial misstatements identified to record installation cost of revenue of $0.8 million.

^dCost 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 increase to product cost of revenue of $2.5 million, and an increase in service cost of revenue of $1.4 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.

^fInterest 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 Statements of Cash Flows

(in thousands)



	Three Months Ended March 31, 2019
	As Previously Reported			Restatement Impacts			Restatement Reference	ASC 606 Adoption Impacts			As Restated And Recast

Cash flows from operating activities:
Net loss	$	(88,273	)	$	(21,056	)		$	577		$	(108,752	)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	11,271			2,954			^A	—			14,225
Write-off of property, plant and equipment, net	1			—				—			1
Revaluation of derivative contracts	(453		)	540			^B	—			87
Stock-based compensation	63,882			3,940			^C	—			67,822
Loss on long-term REC purchase contract	59			—				—			59
Amortization of debt issuance cost	5,152			—				—			5,152
Changes in operating assets and liabilities:
Accounts receivable	816			(98		)	^D	3,413			4,131
Inventories	15,932			(4,845		)	^E	—			11,087
Deferred cost of revenue	26,014			(37,098		)	^F	—			(11,084		)
Customer financing receivable and other	1,339			—				—			1,339
Prepaid expenses and other current assets	5,194			1,423			^G	11			6,628
Other long-term assets	83			(396		)	^H	(103		)	(416		)
Accounts payable	(2,464		)	—				—			(2,464		)
Accrued warranty	(2,500		)	50			^I	(247		)	(2,697		)
Accrued expense and other current liabilities	823			(1,196		)	^J	—			(373		)
Deferred revenue and customer deposits	(44,533		)	49,428			^K	(3,651		)	1,244
Other long-term liabilities	3,487			679			^L	—			4,166
Net cash used in operating activities	(4,170		)	(5,675		)		—			(9,845		)
Cash flows from investing activities:
Purchase of property, plant and equipment	(8,543		)	(3,403		)	^M	—			(11,946		)
Payments for acquisition of intangible assets	(848		)	—				—			(848		)
Proceeds from maturity of marketable securities	104,500			—				—			104,500
Net cash used in investing activities	95,109			(3,403		)		—			91,706
Cash flows from financing activities:
Repayment of debt	(5,016		)	—				—			(5,016		)
Repayment of debt to related parties	(778		)	—				—			(778		)
Proceeds from financing obligations	—			10,961			^N	—			10,961
Repayment of financing obligations	—			(1,883		)	^N	—			(1,883		)
Distributions to noncontrolling and redeemable noncontrolling interests	(3,189		)	—				—			(3,189		)
Proceeds from issuance of common stock	7,493			—				—			7,493
Net cash (used in) provided by financing activities	(1,490		)	9,078				—			7,588
Net increase in cash, cash equivalents, and restricted cash	89,449			—				—			89,449
Cash, cash equivalents, and restricted cash:
Beginning of period	280,485			—				—			280,485
End of period	$	369,934		$	—			$	—		$	369,934

Supplemental disclosure of cash flow information:
Cash paid during the period for interest	$	14,545		$	5,838		^N	$	—		$	20,383
Cash paid during the period for taxes	222			—				—			222

^A Depreciation and amortization — The correction of these misstatements resulted from the change of accounting for Energy Servers under the 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.

^BRevaluation 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.

^CStock-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 $4.4 million. The correction of this misstatement also resulted in the capitalization of $0.5 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.

^DAccounts 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.

^EInventories — The correction of these misstatements resulted from the change of accounting for inventories held for shipments planned to customers under the 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 $37.2 million previously classified as deferred cost of revenue is now recorded as construction in progress within property, plant and equipment, net, and the net capitalization of stock-based compensation expenses of $0.1 million.

^GPrepaid 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.

^IAccrued warranty — The correction of these misstatements resulted from the change of accounting for accrued warranty which is now recorded on an as-incurred basis on our Managed Services Agreements and similar arrangements.

^JAccrued 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.

^KDeferred 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 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 recorded as a reduction in product revenue and then any changes in the value adjusted through gain (loss) on revaluation of embedded derivatives, net each period thereafter.

^MPurchase 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.

^NProceeds 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.