ADA-ES, Inc. Announces Restatement Of Balance Sheets And Statements Of Changes In Stockholders’ Equity And Cash Flows To Reflect Reclassification Of Non-Controlling Interest

ADA-ES, Inc. (NASDAQ:ADES) (“ADA” or “Company”) today announced that on June 20, 2012, management, in consultation with the Company’s Board of Directors and Audit Committee, concluded that it will restate the presentation of its consolidated balance sheets, consolidated statements of changes in stockholders’ equity and consolidated statements of cash flows for the year ended December 31, 2011 and for the quarterly periods ended June 30, 2011, September 30, 2011 and March 31, 2012. This determination was made following an assessment of the accounting treatment of the equity in our joint venture, Clean Coal Solutions, LLC (“CCS”), that has been held by an affiliate of The Goldman Sachs Group, Inc. (“GS”) since May 2011.

The Company classified GS’s interest in CCS as “non-controlling interest” in stockholders’ equity as of the end of the above-mentioned periods. After completion of a recent review and evaluation of the applicable agreement and authoritative accounting literature, management determined that GS’s interest is more appropriately classified as “temporary equity” because of a provision in the agreement that permits GS to require redemption of its interest under certain limited circumstances.

The anticipated restatement will not impact ADA’s statements of operations for the above-referenced periods, including historical revenues, net (loss) income, and earnings (loss) per share, nor will it affect items such as cash and cash equivalents, or liquidity. Moreover, these adjustments will have no effect on ADA’s operations or its previously disclosed projections of revenues and pre-tax income.

After ADA completes its analysis and the Company’s independent auditor completes its review procedures and audit work with respect to the financial statements, ADA will file amendments to its annual report on Form 10-K and quarterly reports on Form 10-Q for the above-mentioned periods.

In addition, ADA is having discussions with the staff of the Securities and Exchange Commission (“SEC”) regarding the reporting of deferred tax assets (“DTAs”) that are included on the Company’s balance sheets. The Company has received comments from the SEC staff questioning whether, due to the Company’s losses in 2008, 2009, and 2010, the Company should have recognized valuation allowances against its DTAs as of December 31, 2010 and subsequent periods. The Company’s management believed as of December 31, 2010, and continues to believe, that it was and is more likely than not that the DTAs will be fully realized in future periods and we therefore have not recognized allowances to date.

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