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Ormat to restate certain financial statements on errors in income tax provision

Ormat Technologies Inc. said May 16 that it will restate certain financial statements from 2017 following its identification of "material weakness" over financial reporting related to accounting for income taxes.

The affected financial statements are for the second, third and fourth quarters and for full-year 2017, the company said a news release.

"As a result of the restatement, investors should no longer rely upon the company's previously issued financial statements for the periods set forth above, earnings releases for these periods, and other communications relating to these financial statements," Ormat said.

The restatement is based on Ormat's conclusion that there were issues in the income tax provisions primarily relating to its valuation allowance, which was based on its ability to utilize foreign tax credits in the U.S. prior to their expiration.

Ormat said it netted certain deferred income tax assets and deferred income tax liabilities across different tax jurisdictions that are not permitted under U.S. generally accepted accounting principles.

The restatement is expected to impact the "income tax (provision) benefit" line item on its statement of operations, with associated impacts to net income, earnings per share and "deferred income taxes" line items on its balance sheet. Ormat said it will also make revisions to the same line items in certain 2016 quarterly financial statements and full-year 2016 and 2015 financial statements.

The company said the impact of the restatement is preliminary and is still subject to change.

Ormat said it does not currently have an estimate on when it will complete the restatement and refile the affected financial statements. In addition, the company said it will further delay filing its Form 10-Q for the first quarter of 2018 with the SEC.