Explanatory Note
This Annual Report on Form 10-K for the year ended December 31, 2014 filed by Advanced Emissions Solutions, Inc. together with its consolidated subsidiaries (collectively, “ADES” or the “Company,” or “we,” “us” or “our” unless the context indicates otherwise) includes the restatement of certain of our previously filed consolidated financial statements and data as explained herein. It also amends previously filed disclosures, including those for management’s discussion and analysis of financial condition and results of operations, as well as other disclosures, for certain periods presented in this Annual Report on Form 10-K. Accordingly, this filing includes more information than would routinely be included in an Annual Report on Form 10-K, in order to provide stockholders a composite presentation of information for prior periods during which we were not making periodic filings with the Securities and Exchange Commission ("SEC"). In addition, because of the changes we have made in our business since the end of 2014, the information relating to our business and related matters include certain information for periods after December 31, 2014.
Restatement of Financial Statements
Background
In early 2014, during the course of the audit of our financial results for the year ended December 31, 2013, we and our then engaged auditors, identified potential errors related to revenue recognition. In the process of reviewing revenue recognition, we also identified various other accounting errors. As a result, the Company did not file an Annual Report on Form 10-K for the fiscal year ended December 31, 2013. In April 2014, we determined that quarterly information previously filed within the year ended December 31, 2013 should not be relied upon, and that the years of 2011 and 2012 would need to be re-audited. After further analysis of accounting matters, in August 2014, we determined that certain material errors were included in our previously reported financial statements, and that financial statements as of and for the years ended December 31, 2011 and 2012 should not be relied upon.
Restatement Adjustments
Based upon our internal reviews of various accounting transactions and matters, and the associated re-audits of prior year financial statements, the following contains a summary of the errors that have been corrected and identifies certain accounts and transactions that have been restated. All information included in this section is qualified in its entirety by reference to the Consolidated Financial Statements and related footnotes included in this Annual Report on Form 10-K filing.
deferred tax benefit of $10.4 million. In addition, these errors resulted in an increase to the previously reported December 31, 2012 net loss of $1.4 million, included within Note 2 of our Consolidated Financial Statements in Item 8 of this Annual Report on Form 10-K.