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Proc-Type: 2001,MIC-CLEAR
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<SEC-DOCUMENT>0001144204-08-018480.txt : 20080328
<SEC-HEADER>0001144204-08-018480.hdr.sgml : 20080328
<ACCEPTANCE-DATETIME>20080328173033
ACCESSION NUMBER:		0001144204-08-018480
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		1
CONFORMED PERIOD OF REPORT:	20080327
ITEM INFORMATION:		Non-Reliance on Previously Issued Financial Statements or a Related Audit Report or Completed Interim Review
FILED AS OF DATE:		20080328
DATE AS OF CHANGE:		20080328

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			AE Biofuels, Inc.
		CENTRAL INDEX KEY:			0000738214
		STANDARD INDUSTRIAL CLASSIFICATION:	INDUSTRIAL ORGANIC CHEMICALS [2860]
		IRS NUMBER:				840925128
		STATE OF INCORPORATION:			CO
		FISCAL YEAR END:			0131

	FILING VALUES:
		FORM TYPE:		8-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-51354
		FILM NUMBER:		08720806

	BUSINESS ADDRESS:	
		STREET 1:		20400 STEVENS CREEK BLVD
		STREET 2:		SUITE 700
		CITY:			CUPERTINO
		STATE:			CA
		ZIP:			95014
		BUSINESS PHONE:		561-798-2907

	MAIL ADDRESS:	
		STREET 1:		20400 STEVENS CREEK BLVD
		STREET 2:		SUITE 700
		CITY:			CUPERTINO
		STATE:			CA
		ZIP:			95014

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	MARWICH II LTD
		DATE OF NAME CHANGE:	19840123
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      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Item
        4.02.</strong></font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Non-Reliance
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      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">On
        March
        27, 2008, the Audit Committee of AE Biofuels, Inc. determined that it was
        necessary to restate our unaudited condensed consolidated financial statements
        for the nine months ended September 30, 2007 included in the Company's Current
        Report on Form 8-K which was filed with the Securities and Exchange Commission
        on December 13, 2007. The restatement relates to the following correction
        of
        errors:</font></div>
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        Company will correct its accounting treatment of warrants issued to the
        Company&#8217;s placement agent for the nine months ended September 30, 2007 in
        connection with the Series B private placement of the Company&#8217;s preferred stock.
        This adjustment was necessary because the Company originally recorded the
        fair
        value of the placement agent warrants as an expense in its income statement.
        The
        correct accounting treatment is to record the fair value of these warrants
        as a
        charge to equity estimated at the time the warrants were granted. </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">This
        will
        result in a reduction of general and administrative expenses and net loss
        for
        the period ended September 30, 2007 of $812,362. At the same time, the Company
        will update and amend the condensed consolidated financial statements for
        the
        nine months ended September 30, 2007 in order to present them as development
        stage company financial statements, and accordingly include cumulative inception
        to date financial data in the statements of operations, cash flows and
        stockholders equity. Additionally, the company will adjust the carry value
        of an
        acquired customer list from $600,000 to $300,000 to properly reflect that
        a
        portion of the purchase price was determined to be compensation expense that
        will be recorded over a two-year vesting period specified in the purchase
        agreements. Finally the Company will be making certain corrections to the
        statements of cash flows to properly reflect its foreign currency cash flows,
        the effects of which management is still in the process of evaluating. The
        Company will also make other changes, principally in disclosure and
        presentation, to bring the interim statements into alignment with the December
        31, 2007 financial presentation.</font></div>
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        a
        result, the Company&#8217;s previously issued unaudited condensed consolidated
        financial statements at and for the nine months ended September 30, 2007
        should
        no longer be relied upon. We will include the restated financial information
        at
        and for the period being restated in an amendment to the Current Report on
        Form
        8-K filed with the Securities and Exchange Commission on December 13, 2007,
        which we expect to file within a few days of this Report. </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        Company&#8217;s Audit Committee has discussed with BDO Seidman, LLP, the Company&#8217;s
        independent accountant, the matters disclosed in this Current Report.
</font></div>
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        to the requirement 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.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    </div>
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      March 28, 2008</font></div>
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