World Energy To Adjust Financial Statements
Worcester-based World Energy Solutions announced that it will restate previously issued financial statements for 2011 and 2012.
The company is advising investors that they should no longer rely on financial statements previously released for those periods.
The news comes as World Energy has delayed reporting its 2012 financial results due to questions about when certain commission payments received as a result of the company's acquisition of GSE Consulting in 2011 should be applied to the company's revenue. World Energy said it concluded that the timing of recognizing the revenue was recorded incorrectly.
The company said it had been recording the revenue from up-front commission payments as cash was received from the energy supplier, beginning with the quarter that ended Dec. 31, 2011, but determined that it should have recorded the revenue upon contract completion.
World Energy said the adjustments will not affect previously reported cash and equivalents or cash flow from operations. It's expected to decrease revenue for 2011 by about $600,000 and about $3.1 million for the first nine months of 2012 with those amounts being recognized in subsequent periods.
Because of the adjustments, the company requested a 15-day filing extension from the Securities and Exchange Commission to file its 2012 annual report. It intends to file it by April 16.
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