Compliance Energy Corp CPYCF

Auditor's Report of CEC: significant doubt due to

[mokita]

here is an excerpt of Compliance Energy Audit that cannot be ignored:

 

In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of Compliance Energy Corporation as at December 31, 2012 and 2011, and its financial performance and its cash flows for the years then ended in accordance with International Financial Reporting Standards. 

Emphasis of Matter 

Without qualifying our opinion, we draw attention to Note 1 in the consolidated financial statements which indicates that the Company has incurred losses from inception and does not currently have any revenue generating operations. Moreover, the Company has an accumulated deficit of $6,929,000 as at December 31, 2012 and incurred an operating loss of $1,255,000 for the year ended December 31, 2012. These conditions, along with other matters as set forth in Note 1 indicate the existence of a material uncertainty that may cast significant doubt about Compliance Energy Corporation’s ability to continue as a going concern. 

(signed) “Deloitte LLP” 

Chartered Accountants 

April 25, 2013 

Vancouver, British Columbia

[bocaman]

Good catch, mokita! The facts of the deficit and the operating loss are not new - these appear every year in Note 1 to the statements. (For 2011 they were trivial as CEC had just issued shares in a financing. For 2010 the deficit was $12.1 million and the loss was $1.7 million). What's notable this year is that the auditors believed it necessary to emphasize the matter. Auditors don't use