midwest_8k.htm
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC  20549
 
FORM 8-K
 
CURRENT REPORT
Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934
 
Date of Report (Date of earliest event reported) March 21, 2012
 
MIDWEST ENERGY EMISSIONS CORP.
(Exact name of registrant as specified in its charter)

Commission file number 000-33067
 
Delaware
  
87-0398271
(State or other jurisdiction of incorporation)
  
(I.R.S. Employer Identification No.)
     
500 West Wilson Bridge Road, Suite 140
Worthington, Ohio
  
 
43085
(Address of principal executive offices)
  
(Zip Code)
 
Registrant’s telephone number, including area code:    (614) 505-6115

___________________________________________________
(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
      
o
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
 
o
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
 
 
 
 
 
Item 4.02    Non-Reliance on Previously Issued Financial Statements or a Related Audit Report or Completed Interim Review.

On March 21, 2012, as the result of errors described below, the management of Midwest Energy Emissions Corp (the “Company”) recommended to the Board of Directors that the Company correct (i) the unaudited financial statements for the period ended June 30, 201 and for the period from inception (December 17, 2008) to June 30, 2011, contained in the Company's Quarterly Report on Form 10-Q for the quarter ended June 30, 2011, which was filed with the Commission on August 22, 2011, as amended on Form 10-Q/A filed on December 23, 2011 and (ii) the unaudited financial statements for the period ended September 30, 2011 and for the period from inception (December 17, 2008) to September 30, 2011, contained in the Company’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2011, which was filed with the Commission on November 21, 2011.  The Board of Directors agreed with management’s recommendation, and it was concluded that the financial statements as of and for the aforementioned periods should no longer be relied upon, and noted that the errors were not related to the reporting of continuing operations.  The Board of Directors has discussed this matter with Schneider Downs, the Company’s independent registered public accounting firm.

The identified errors related to accounting for of the Agreement and Plan of Merger (the “Merger Agreement”) with Midwest Energy Emissions Corp., a North Dakota corporation on June 21, 2011.  The erorrs were related to which entity survived the transaction in the recording of the merger, which was treated as a reverse merger for accounting purposes.  As a result of these errors, we determined that the financial statements contained in the Company’s Form 10-Q’s for the quarters ended June 30, 2011 and September 30, 2011 should be restated on Forms 10-Q/A. 
 
The Company anticipate that the Forms 10-Q/A with the noted restatements will be filed in the coming days.  The following is a summary of the effects of the identified errors on the Company’s financial statements:
 
   
As previously reported
    
Adjustments
    
As restated
  
Balance Sheet as of June 30, 2011
                  
Cash
     9,391       (726 )     8,665  
Current assets of discontinued operations
     1,149       (1,149 )     -  
Total current assets
     11,119       (1,875 )     9,244  
Property and equipment, net
     1,037,199       (4,731 )     1,032,468  
Other assets of discontinued operations
     2,000       (2,000 )     -  
Total assets
     1,135,613       (8,606 )     1,127,007  
Account payable and accrued expenses
     777,250       (19,000 )     758,250  
Current liabilities of discontinued operations
     379,743       71,283       451,026  
Advances payable - related party of discontinued operations
     153,804       180       153,984  
Total current liabilities
     2,650,929       52,463       2,703,392  
Beneficial conversion feature of discontinued operations
     (110,269 )     110,269       -  
Total liabilities
     2,590,660       162,732       2,753,392  
Additional paid in capital
     (284,828 )     3,077,581       2,792,753  
Accumulated other comprehensive income of discontinued operations
     (738 )     738       -  
Accumulated deficit
     (1,504,218 )     (3,249,657 )     (4,753,875 )
Total stockholders deficit
     (1,455,047 )     (171,338 )     (1,626,385 )
Total liabilities and stockholders' deficit
     1,135,613       (8,606 )     1,127,007  
                         
Statement of Operations for the six months ended June 30, 2011
                        
Selling, general and administrative expenses
     530,779       (19,000 )     511,779  
Impairment of goodwill
     -       3,403,286       3,403,286  
Total operating expenses
     809,992       3,384,286       4,194,278  
Operating loss
     (809,992 )     (3,384,286 )     (4,194,278 )
Net loss from continuing operations
     (846,424 )     (3,384,286 )     (4,230,710 )
Net loss form discontinued operations
     (155,479 )     134,629       (20,850 )
Net loss
     (1,001,903 )     (3,249,657 )     (4,251,560 )
Foreign currency translation adjustment
     (738 )     738       -  
 
 
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As previously reported
    
Adjustments
    
As restated
  
Statement of Cash Flows for the six months ended June 30, 2011
                  
Net loss from continuing operations
     (846,424 )     846,424       -  
Net loss form discontinued operations
     (155,479 )     155,479       -  
Net loss
     -       (4,251,560 )     (4,251,560 )
Stock based compensation
     209,331       (146,831 )     62,500  
Amortization of beneficial conversion feature of discontinued operations
     5,803       (5,803 )     -  
Depreciation expense
     2,170       (1,950 )     220  
Impairment of goodwill
     -       3,403,286       3,403,286  
Decrease in other assets attributable to discontinued operations
     727       8,855       9,582  
Increase in accounts payable and accrued expenses
     717,244       (10,230 )     707,014  
Increase in accounts payable attributable to discontinued operations
     109       (109 )     -  
Net cash used in operating activities
     (64,157 )     (2,439 )     (66,596 )
Purchase of equipment
     (1,031,917 )     975       (1,030,942 )
Effect of exchange rate
     (738 )     738       -  
Net increase in cash and cash equivalents
     2,081       (726 )     1,355  
Cash and cash equivalents - end of period
     9,391       (726 )     8,665  
                         
Balance Sheet as of September 30, 2011
                        
Cash
     10,396       (2,938 )     7,458  
Current assets of discontinued operations
     1,163       (1,163 )     -  
Total current assets
     395,871       (4,101 )     391,770  
Property and equipment, net
     1,288,695       (3,758 )     1,284,937  
Other assets of discontinued operations
     2,000       (2,000 )     -  
Total assets
     1,815,844       (9,859 )     1,805,985  
Account payable and accrued expenses
     975,187       (58,823 )     916,364  
Current liabilities of discontinued operations
     384,942       48,406       433,348  
Advances payable - related party of discontinued operations
     153,894       16,090       169,984  
Total current liabilities
     3,486,429       5,673       3,492,102  
Beneficial conversion feature of discontinued operations
     (104,466 )     104,466       -  
Total liabilities
     3,581,963       110,139       3,692,102  
Additional paid in capital
     321,036       2,930,839       3,251,875  
Accumulated other comprehensive income of discontinued operations
     (1,589 )     1,589       -  
Accumulated deficit
     (2,427,317 )     (3,052,426 )     (5,479,743 )
Total stockholders deficit
     (1,766,119 )     (119,998 )     (1,886,117 )
Total liabilities and stockholders' deficit
     1,815,844       (9,859 )     1,805,985  
 
 
3
 
 
   
As previously reported
    
Adjustments
    
As restated
  
Statement of Operations for the nine months ended September 30, 2011
                  
Selling, general and administrative expenses
     630,548       (5,361 )     625,187  
Professional fees
     458,243       (53,462 )     404,781  
Impairment of goodwill
     -       3,403,286       3,403,286  
Total operating expenses
     1,470,504       3,344,463       4,814,967  
Operating loss
     (1,522,774 )     (3,344,463 )     (4,867,237 )
Net loss from continuing operations
     (1,609,694 )     (3,344,463 )     (4,954,157 )
Net loss form discontinued operations
     (315,306 )     292,037       (23,269 )
Net Loss
     (1,925,000 )     (3,052,426 )     (4,977,426 )
Foreign currency translation adjustment
     (1,589 )     1,589       -  
                         
Statement of Cash Flows for the nine months ended September 30, 2011
                        
Net loss from continuing operations
     (1,609,694 )     1,609,694       -  
Net loss form discontinued operations
     (315,306 )     315,306       -  
Net loss
     -       (4,977,426 )     (4,977,426 )
Stock based compensation
     496,044       (293,664 )     202,380  
Amortization of beneficial conversion feature of discontinued operations
     11,606       (11,606 )     -  
Depreciation expense
     2,302       (1,948 )     354  
Impairment of goodwill
     -       3,403,286       3,403,286  
Decrease in other assets attributable to discontinued operations
     713       8,869       9,582  
Increase in accounts payable and accrued expenses
     850,186       (58,823 )     791,363  
Increase in accounts payable attributable to discontinued operations
     5,307       1,785       7,092  
Net cash used in operating activities
     (952,946 )     (4,527 )     (957,473 )
Effect of exchange rate
     (1,589 )     1,589       -  
Net increase in cash and cash equivalents
     3,086       (2,938 )     148  
Cash and cash equivalents - end of period
     10,396       (2,938 )     7,458  
 
 
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SIGNATURES
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 
 
MIDWEST ENERGY EMISSIONS CORP
  
       
Dated: March 27, 2011
By:
/s/ Richard Gross
  
 
Name: 
Richard H. Gross
  
 
Title:
Chief Financial Officer
  
       

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