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ADA-ES, Inc. Files Form 8-K Associated With Previously Disclosed Restatement Matters

ADA-ES, Inc. (NASDAQ:ADES) (“ADA” or “Company”) announced that on August 17, 2012 it filed a Form 8-K with the Securities and Exchange Commission (“SEC”) associated with the Company’s previous disclosures concerning its historical treatment of: i) net deferred tax assets (“DTA”); and ii) classification of the interest held by an affiliate of The Goldman Sachs Group, Inc. in ADA’s joint venture, Clean Coal Solutions, LLC (“Clean Coal”).

DTA Valuation

As previously disclosed, ADA has been engaged in discussions with the SEC regarding the reporting of DTA that are included on the Company’s balance sheets. Questions arose as to whether ADA should have recognized valuation allowances against its net DTA for the fiscal years ended December 31, 2010 and 2011, and for all of the quarters within 2011 and the first and second quarters of 2012 (collectively, the “Restatement Period”). After extensive discussions with the SEC, outside tax experts, its independent registered public accounting firm, and the Company’s Audit Committee and full Board of Directors, management concluded that the Company needed to recognize valuation allowances at the end of each Restatement Period with respect to the entire balance of its DTA. ADA expects that recording valuation allowances will resolve the previously disclosed comments made by the SEC regarding the DTA. ADA will file amendments to the applicable reports covered by the Restatement Period.

As a result of recognizing valuation allowances with respect to the DTA, the net loss for the fiscal year ended December 31, 2010 will increase from $15.5 million to $31.1 million with a corresponding decrease in assets of $15.6 million, and the net loss for the fiscal year ended December 31, 2011 will increase from $19.9 million to $22.9 million, with a corresponding decrease in assets of $3 million.

The restatements will not impact reported cash and cash equivalents, nor will it impact the availability of the cumulative net operating losses and tax credits for offsetting future taxes applicable to net income in profitable years. If in a subsequent fiscal period ADA were to reduce such allowances, the Company’s net loss would decrease, or net income would increase, for such periods to the extent of such reduction.

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