Title: “Streamlining Pacific Green’s Accounting Policy for Enhanced Financial Management” Pacific Green is committed to maintaining accurate and transparent financial records in accordance with industry standards and regulations. As part of our continuous improvement efforts, we have revised our accounting policy to streamline processes and improve efficiency. Our accounting policy now follows a systematic approach, starting with the identification and recording of all financial transactions. This includes the use of reliable and up-to-date accounting software to ensure accuracy and consistency in our records. We have also implemented a strict review and approval process for all financial transactions, with clear guidelines and segregation of duties to prevent any potential errors or fraud. In addition, our accounting policy now includes regular reconciliations of accounts to identify and resolve any discrepancies in a timely manner. This not only ensures the accuracy of our financial statements but also provides valuable insights for decision-making. To further enhance our financial management, we have also incorporated a budgeting and forecasting process into our accounting policy. This allows us to plan and allocate resources effectively, while also monitoring our financial performance against set targets. At Pacific Green, we understand the importance of compliance and ethical practices in accounting. Therefore, our revised policy also includes strict adherence to all relevant laws and regulations, as well as regular training for our staff to stay updated on any changes. In conclusion, our updated accounting policy reflects our commitment to maintaining accurate and transparent financial records, while also improving efficiency and compliance. We believe these changes will not only benefit our company but also provide peace of mind to our stakeholders. 

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Pacific Green Technologies, Inc. (“Pacific Green”), (OTCQB: PGTK) has announced 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. The conclusion is 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 this change in revenue recognition policy, Pacific Green has also changed its accounting policy for capitalized project under development assets. These assets will now be recorded 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 revisions demonstrate Pacific Green’s commitment to financial transparency. The company has consulted with the Securities and Exchange Commission Office of the Chief Accountant (“OCA”) over its previous accounting policy, given the unprecedented nature of the transaction and the complex nature of its battery energy storage system developments. Following the determination by the OCA, 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.

Pacific Green is focused on addressing the world’s need for cleaner and more sustainable energy. It offers grid-scale battery energy storage systems, renewable and environmental technologies. This change in accounting policies reflects the company’s commitment to transparency and adherence to US GAAP standards. It also highlights the complexity of the company’s battery energy storage system developments and the need for careful consideration in accounting for these transactions.