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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.
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) April 11, 2005
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Consolidated Energy, Inc.
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(Exact name of registrant as specified in its charter)
Wyoming 0-25951 86-0852222
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(State or other jurisdiction (Commission (IRS Employer
of incorporation) File Number) Identification No.)
12508 West Atlantic Blvd., Coral Springs, Florida 33071
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (954) 575-1471
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Item 4.02 Non-reliance on Previously Issued Financial Statements or a Related
Audit Report or Completed Interim Review
On April 5, 2005, Consolidated Energy, Inc. (the "Company") announced a change
of auditor effective April 1, 2005. On April 11, 2005, the new auditor
provided the Company with draft financial statements that included substantial
restatements to financial information previously issued in audited financial
statements included in the Company's annual report on Form 10KSB for the year
ended December 31, 2003, and included in interim reports on Form 10QSB for the
quarters ended March 31, 2004, June 30, 2004, and September 30, 2004. At this
time, the Company's board of directors and management have concluded that the
financial statements included in the above reports cannot be relied upon to
the extent that the adjustments included with the restatements impact such
financial statements.
The new auditors have applied significant adjustments to the previously issued
financial statements and restated the financial statements for the period
ended December 31, 2003. The effects of the restatement include: substantial
reductions to fixed assets due to a reduction in the value applied to shares
issued in connection with the acquisition of a mining subsidiary; and
reductions in other assets due to reclassification of Deferred Royalty and
Prepaid Royalty items. These reductions have resulted in a reduction in total
assets from the reported $6,036,626 to $1,590,647. These substantial
reductions in assets are partially offset by reductions in Current and Long-
Term liabilities for the same period, resulting in a decrease in total
liabilities from the reported $3,862,355 to $2,426,121. Reported revenues also
decreased and cost of revenue and expenses increased, resulting in an increase
in net loss from the previously reported $(1,057,706) to $(1,401,722). Details
of the accounting adjustments are included in footnote 3 to the financial
statements included in the Company's annual report on Form 10KSB for the year
ended December 31, 2004, filed today with the Commission.
Authorized officers of the Company have discussed the matters disclosed in
this filing with the registrant's new auditor. Management expects to have
more discussions with the board of directors and the auditor to address the
issues raised by the restatements.
SIGNATURES
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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.
Dated: April 15, 2005
Consolidated Energy, Inc.
By: /S/ David Guthrie
David Guthrie, President