CHARLOTTE, N.C., Nov. 21, 2016 /PRNewswire/ -- Blue Sphere Corporation (OTCQB: BLSP) (the "Company", "Blue Sphere", "we", "our" or "us"), an international Independent Power Producer (IPP) that is globally active in the clean energy production and waste to energy markets, released today a shareholder letter from the Company's Chief Executive Officer which details certain changes to the accounting presentation of the Company's financial statements and reviews certain developments at the Company. All amounts expressed below are stated in U.S. Dollars. Dear Fellow Shareholders, As many of you have had the opportunity to review the Company's latest 10-Q, some may have questions relating to changes made to the accounting presentation, specifically the need to restate past consolidated financial statements included in the Company's Quarterly Reports for the quarterly periods December 31, 2015, March 31, 2016 and June 30, 2016. In order to help answer any questions you may have, please note the following. Accounting Presentation During the preparation of the Company's financial statements for the quarter ended September 30, 2016, the Company re-evaluated its accounting relating to (1) the application of the equity method of accounting for the investments in Agricerere S.r.l., Agrielektra S.r.l., Agrisorse S.r.l. and Gefa S.r.l. (the "SPVs") because the Framework EBITDA Guarantee Agreement between the SPVs and Austep, whereby Austep operates, maintains and supervises each biogas plant, prevents the Company from exercising a controlling influence over operating policies of the plants, (2) to reflect the interest expense on the unpaid balance of the purchase price due pursuant to the acquisition of the SPVs, (3) to reclassify the proceeds from an offering which had been previously recorded as current liability as proceeds on account of shares in Shareholders Deficiency, (4) to reflect the effects of accounting and reporting errors in the calculation of issuances of shares, issuances of shares for services and other expenses, and (5) to consider restating its previously issued reviewed, unaudited condensed consolidated financial statements (the "Financial Statements") included in the Company's Quarterly Reports on Form 10-Q for the quarterly periods ended December 31, 2015, March 31, 2016 and June 30, 2016 (the "Quarterly Reports"). The Company believes that, while the Financial Statements reflect substantial modifications, the revenues and expenses previously reported are now reflected in a line item for the Company's non-consolidated wholly-owned subsidiaries and the modifications result in no impact to the Company's operational results. Therefore, the modifications are substantially a matter of presentation. To put this into terms that may be easier to understand, Blue Sphere continues to own 100% of all four of the Italian facilities. In addition, we continue to have an effective power purchase agreement with the state-owned electrical authority, Gestore del Servizi Energetici (GSE), we continue to have an effective operations and management agreement with our operating partner Austep, S.p.A, and Austep continues to deliver under the Framework EBITDA Guarantee Agreement, guaranteeing approximately $4 million in EBITDA on an annualized basis. The details of such agreement have been previously reported in our filings with the U.S. Securities and Exchange Commission. However, it is the Framework EBITDA Guarantee Agreement that caused us to re-state our unaudited condensed consolidated financial statements in the Quarterly Reports. In other words, the financial results of the Italian facilities reported in Quarterly Reports have not changed, they are simply presented differently.